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HomeMy WebLinkAboutMINUTES - 08131996 - D4 ;. Contra TO: BOARD OF SUPERVISORS _- -a Costa f . County FROM: Supervisor Tom Torlakson DATE: August 13, 1996 SUBJECT: REQUEST FOR STAFF ANALYSIS OF ALTERNATE SOURCE OF POWER FROM MODESTO IRRIGATION DISTRICT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)AND JUSTIFICATION RECOMMENDED ACTION: DIRECT County Administrator to assemble a team of individuals from GMEDA, County Counsel, General Services, and appropriate departments to determine the following: (1) Should Contra Costa County enter into agreement with Modesto Irrigation District for an alternate source of energy for County industrial, commercial, and residential users. (2) What form should the agreement take with Modesto Irrigation District and associated parties. (3) What procedural steps should be established, depending on degree of physical activity, to respond to varying approaches to power distribution. (4) Determine if outside technical assistance is needed to protect the County's interests. f (5) Invite input from other interested parties. (6) Report back to the Board of Supervisors at the meeting of September 10, 1996. FINANCIAL IMPACT: A purpose of this effort is to increase general fund revenue generated from increased fees and to enhance the county's economic climate by encouraging existing businesses to remain and to attract new businesses to our county. BACKGROUND/REASON FOR RECOMMENDATIONS: The Modesto Irrigation District has submitted a request for a permission agreement to provide electrical services within Contra Costa County. The intent is to take advantage of a deregulating environment in order to provide power at competitive rates beginning with industrial service, CONTINUED ON ATTACHMENT- X ES SIGNATURE: �/�Of (' ' ✓� RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON August 13, 1996 APPROVED AS RECOMMENDED: OTHER: X Please see attached ADDENDUM for a list of speakirs and Board Action. VOTE OF SUPERVISORS: X UNANIMOUS(ABSENT --"""' ) HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY AYES: NOES: OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. ABSENT: ABSTAIN- ATTESTED August 13, 1996 MEPUTY CLERK OF THE D F NIST- cc: County Administrator CO TY AD INIST County Counsel GMEDA Departments BY Modesto Irrigation District (via CAO) DESTEC (via CAO) PG&E (via CAO) Industrial Association (via CAD) Modesto Irrigation District Permission Agreement August 13, 1996 Page TWO The granting of a permission agreement to MID could provide the opportunity for MID to offer lower electrical rates to industrial, commercial and residential customers potentially in the range of 25% to 40%. In addition, it could provide Contra Costa County additional revenues from increased franchise fees and economic development opportunities within the County's industrial and commercial areas. MID has already entered discussions with the DuPont facility to provide electrical services once a permission agreement is granted. D.4 ADDENDUM Item D.4 August 13, 1996 Supervisor Torlakson introduced his request for staff analysis of consideration of the Modesto Irrigation District as an alternate power source. The following persons addressed the Board on this issue: Gary Green, PG&E, 1030 Detroit Avenue, Concord; Chris Meyer, Assistant General Manager, Modesto Irrigation District, P.O. Box 4060, Modesto; and John Wolfe, Executive Vice President, Contra Costa Taxpayers' Association, 820 Main Street, Martinez. All persons desiring to speak having been heard, and following Board discussion of the issues: IT IS BY THE BOARD ORDERED that the County Administrator is DIRECTED to assemble a team of individuals from the Growth Management and Economic Development Agency, County Counsel, General Services, and appropriate County departments to provide analysis of alternative sources of power from the Modesto Irrigation District and other possible power providers; IT IS FURTHER ORDERED that the County Administrator is DIRECTED to provide a status report on September 10, 1996, and a follow-up report within 90 days on issues including: analysis of Modesto Irrigation District's proposal and any proposals from other power sources, an analysis of the costs to the County and possible ways to recover any costs incurred, development of a policy for considering any future alternate power source proposals, analysis of the effect that an alternate power source would have on subsidized power programs for low income residential customers, and the provision of draft agreements to the Board for consideration and public review. cc: County Administrator County Counsel GMEDA Departments Modesto Irrigation District (via CAO) DESTEC (via CAO) PG&E (via CAO) Industrial Association (via CAO)