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1995 OCT 05 CC MINMINUTES OF THE ADJOURNED REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL CITY COUNCIL CHAMBERS, CITY HALL OCTOBER 5, 1995 - 7:00 P.M. CALLED TO ORDER at 7:00 p.m. by Mayor Jacobson. PLEDGE OF ALLEGIANCE led by Councilman Robbins ROLL CALL Mayor Jacobson Mayor ProTem Weston Councilman Switz Councilman Robbins Councilwoman Friedkin - Present - Present - Present - Present - Present PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30 minute limit total - NONE A. SPECIAL ORDERS OF BUSINESS - Discussion/Workshop on the concepts of purchasing power at lower cost and the merits of joining the Southern California Cities Consortium to participate in cost reduction measures being proposed through their Joint Powers Agreement. Mayor ProTem Weston suggested 20 minute time limitations be placed on all speakers; Mayor Jacobson suggested a 30 minute; Council concurred with Mayor Pro Tern Weston. Robert Jensen, SCE, stated SCE's key future goals were to provide all customers with more choices; stranded cost recovery; a competitive market for all suppliers, and a fair opportunity to compete. He then asked the Council to receive and file the three handouts he submitted to be distributed to them, staff, and the public. Mayor Jacobson stated the items were received and filed. Bob Kendall, SCE, presented a viewgraph report on the restructuring of the electric utility industry, and Edison's vision of the future regarding proposed changes in their generation and delivery systems and customers. He stated the rate breakdown for the average 10.5 cent cost, Edison generation and additional costs of government- mandated power purchase contracts and other utility power purchases cost was 3.9 cents; transmission and distribution cost was 3.5 cents, and public policy programs cost was 3.1 cents. Further stating, Edison plans to replace regulation with the discipline of market forces; simplify regulation to provide greater cost reduction incentives for utilities, and to give customers expanded choices and lower prices through direct access. They anticipate to meet these goals by January 1, 1997. Mayor Albert Vera, City of Culver City, addressed the issue of the Joint Powers Agreement for electric power and other services of the Southern California Cities Consortium. The consortium was formed in March, 1995 to improve the quality and reauce the costs of providing municipal services, including electrical, gas and water services through combined bargaining and purchasing. Nancy Day, Executive Secretary to the Consortium and Representative for New Energy Ventures, Inc., explained the Public Utilities Commissions review of a proposal to bring competition to the electric utility industry, and addressed SCE's goals and what the consortium's goals and objectives were. She stated should the City join the consortium, they would have a voice at the Public Utility Commissions hearing process. Ron Hart, 919 Main Street, asked the Council to consider the City's past history with SCE, and recommended taking over distribution lines by eminent domain. Jim Snaufer. E45 Penn Street (Hughes Aircraft employee /speaking as a resident), encouraged the Council to join the consortium, and to try and get the same cost as Hughe's has been able to. City Council Minutes October 5, 1995 - 7:00 p.m. Discussion ensued regarding the restructuring of the electric industry, the Public Utilities Commission review of a proposal to bring competition to the electric utility industry, and competitive prices. RECESS at 8:40 p.m. RECONVENED at 9:02 p.m. with all City Councilmembers present. Discussion continued. Mayor ProTem Weston recommended that the City Attorney review the agreement and bring back his recommendations. Discussion followed. MOVED by Mayor ProTem Weston; SECONDED by Councilwoman Friedkin to direct staff to study the documents required for the City to join the JPA and make analysis; and give us back a recommendation on that. Question called by Councilman Switz stating he preferred to wait until the Public Utilities Commission makes their decision. Discussion followed. Mayor Jacobson called the question: MOTION PASSED THE FOLLOWING VOICE VOTE 411 - AYES: Mayor Jacobson, Mayor ProTem Weston, Councilman Robbins, and Councilwoman Friedkin. NOES: Councilman Switz. PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit) - NONE ADJOURNED at 10:06 p.m. to October 16, 1995 at 7:00 p.m. ora reeman, Deputy City Clerk 2 City Council Minutes October 5, 1995 - 7:00 p.m.