HomeMy WebLinkAboutAgenda Report - November 7, 2007 E-15AGENDA ITEM -15
&IM CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Approve Various Actions Needed to Participate in the San Joaquin County
Enterprise Zone
MEETING DATE: November7,2007
PREPARED BY: City Manager
RECOMMENDED ACTION: Adopt Resolution: 1) Approving cost reimbursement contract
with the Economic Development Association to develop an
application for Enterprise Zone designation, and authorize the City
Manager to execute the contract. which will not exceed $8,972; 2) Approving Letter of Commitment to
economic development staffing at 35% of time in support of San Joaquin County Enterprise Zone; and 3)
Approving Memorandum of Understanding for Multi -Agency Cooperation in the Implementation,
Management and Marketing of the San Joaquin County Enterprise Zone.
All three actions are required for the City to participate in the Enterprise Zone
BACKGROUND INFORMATION: On October 17, 2007, the City Council approved participation in the
San Joaquin Enterprise Zone application. The recommendation actions specifically relate to
implementation of the application process.
The State of California designated the Stockton/San Joaquin County Enterprise Zone in June of 1993.
The designation was for 15 years and expires June 2008. The Zone is approximately 29 square miles in
central and south Stockton including unincorporated areas of the County.
On June 19, 2007, the State released the application for Enterprise Zone designation. The application is
due November 16, 2007. It will be a very competitive process with more than 30 applications for just
eight available Zones. Over the last 14 years, the State has made many changes to the Enterprise Zone
Program. These changes allow for what some have called "super enterprise zones." The City has
been asked to participate in the San Joaquin County Enterprise Zone, which would include the cities of
Lodi, Tracy, Lathrop, Manteca and Stockton, as well as unincorporated areas of San Joaquin County that
are eligible.
Because of the short application period and wanting to secure the best available consultant to assist in
the application, the County's Economic Development Association (EDA) Board of Directors authorized
staff to enter into an agreement with Jack FaucettAssociates (J FA). Jack Faucett Associates developed
the Fresno County "Super Zone" application, which was the highest-rated application during the previous
round of designations. The EDA Board granted its approval with the understanding that after a
determination of which municipalities would be included in the application they would reimburse the EDA
for the application costs on a pro -rated basis.
APPROVED:
Ing, City Manager
Based on JFA recommendation, the County and cities identified a preliminary Zone application area that
is 638 square miles and includes the cities of Lodi, Stockton, Tracy, Manteca, Lathrop, and San Joaquin
County. The following preliminary budget shows how the Enterprise Zone application cost is being
allocated between the cities and San Joaquin County. Calculations were determined by dividing the
commercial and industrial area within each municipality's portion of the Enterprise Zone divided by the
total commercial and industrial area in the entire Enterprise Zone expressed as a percentage. The chart
below representsthe industrial and commercial acreage in each municipality and their related percentage
of the application costs.
Part of the application process requires the City Council to commit staffing to the San Joaquin County
Enterprise Zone. Accordingly, the City must provide a letter of commitment, signed by the Mayor, to the
California Department of Housing and Community Development, which selects the Zones. The City
Council also must approve a Memorandum of Understanding with the other cities and county, in which
Lodi commits to provide staffing to the Enterprise Zone.
Lodi currently does not have the staff needed to carry out the marketing and business attraction functions
required to participate in the San Joaquin County Enterprise Zone. The City, however, is making the
commitment to hire an Economic Development Coordinator if the application is successful, and devote 35
percent of that person's time to the Zone.
Attached is the Resolution, the Memorandum of Understanding and the commitment letter for the
Mayor's signature.
FISCAL IMPACT: The cost of preparing the application is $8,972. The costs of implementation of the
Enterprise Zone are not fully estimated but will include $23,024 per year for Enterprise Zone
administration paid to the County and approximately $30,000 for Lodi Economic Development staff
support. The cost of local incentives are not known.
FUNDING AVAILABLE: Economic Development budget.
Blair King
City Manager
Attachments
. .
Stockton
9223
40.93%
$61,395
Lodi
1347
5.98%
$8,972
Manteca
830
3.68%
$5,525
Tra2y
1704
7.57%
$11,347
Lathrop
3969
17.62%
$26,426
Unincorporated
5458
24.22%
$36,335
Total 22531
140%
$150,000
Part of the application process requires the City Council to commit staffing to the San Joaquin County
Enterprise Zone. Accordingly, the City must provide a letter of commitment, signed by the Mayor, to the
California Department of Housing and Community Development, which selects the Zones. The City
Council also must approve a Memorandum of Understanding with the other cities and county, in which
Lodi commits to provide staffing to the Enterprise Zone.
Lodi currently does not have the staff needed to carry out the marketing and business attraction functions
required to participate in the San Joaquin County Enterprise Zone. The City, however, is making the
commitment to hire an Economic Development Coordinator if the application is successful, and devote 35
percent of that person's time to the Zone.
Attached is the Resolution, the Memorandum of Understanding and the commitment letter for the
Mayor's signature.
FISCAL IMPACT: The cost of preparing the application is $8,972. The costs of implementation of the
Enterprise Zone are not fully estimated but will include $23,024 per year for Enterprise Zone
administration paid to the County and approximately $30,000 for Lodi Economic Development staff
support. The cost of local incentives are not known.
FUNDING AVAILABLE: Economic Development budget.
Blair King
City Manager
Attachments
CITY COUNCIL
BOB JOHNSON, Mayor CITY OF L O D I
JOANNE MOUNCE,
Mayor Pro Tempore CITY HALL, 221 WEST PINE STREET
LARRY D. HANSEN P.O. BOX 3006
SUSAN HITCHCOCK LODI, CALIFORNIA 95241-1910
PHILKATZAKIAN (209)333-6702 / FAX (209) 333-6807
www.lodi..gov citvclerk(d�iodi.gov
November 8.2007
Mr. Frank Luera, Interim Manager
EnterpriseZone Program
California Department of Housing and Community Development
1800Third Street, Suite 390
Sacramento, CA 95814
BLAIR KING, City Manager
RANDI JOHL, City Clerk
D. STEPHEN SCHWABAUER
City Attorney
RE: LETTER OF COMMITMENT TO SAN JOAQUIN COUNTY ENTERPRISE ZONE
The City of Lodi (hereinafter "City") is a general law city incorporated under California law. The City
has jurisdiction over a portion of the proposed San Joaquin Valley EnterpriseZone (hereinafter
"Zone") and has heretofore resolved to be an applicantfor the Zone. The City is separately
entering into a Memorandum of Understandingthat definesthe respective roles of the participating
cities, the County of San Joaquin, and other Zone program participants. This Letterof
Commitment contains specific commitments that the City will make solely to the designation,
implementation, and operation of the proposed Zone.
Commitments of Staff Time
The City commits two staff members to the EnterpriseZone project.
If the Zone's application is successful, the City will hire a new Economic Development Coordinator
and will dedicate 35% of his or her time to the project at an annual value of approximately$37,000,
including $28,000 in salary and $9,000 in benefits. He or she shall be the Zone manager for the
City of Lodi. His or her tasks to be completed in support of the Zone will be to conduct marketing
for the Zone and to undertake business expansion, attraction, and retention activities for the Zone.
This will be a new position. The City Manager will have the discretion to designate a staff liaison to
fast-track economic development projects within the Zone.
Second, Rob Lechner, Manager of Customer Services and Programs with Lodi Eiectric Utility, will
dedicate 20% of his time to the project at an annual value of $26,000, including $19,000 in salary
and $7,000 in benefits. His tasks to be completed in support of the Zone will be the Lodi Electric
Utility's key account representativeassigned to businesses located within the EnterpriseZone.
If, Commitments of Other Services and Supplies
The City also commits the following to the Zone program:
San Joaauin County Enterprise Zone: The City commits $23,024 per year to the San Joaquin
County EnterpriseZone for zone administration, job development, and marketing.
San Joaauin Partnership Dues: The City commits $35,000 per year to the San Joaquin Partnership
for Zone marketing and business attraction.
Professional Consultant Services: The City is currently committing $250,000 for professional
consultant services toward the creation of a Redevelopment Project Area that will include the
EnterpriseZone.
Other Advertising & Marketing: The City commits an annual value of $125,000 to fund a broad
range of business and marketing organizations including the Downtown Lodi Business Partnership,
the Lodi Conference and Visitors Bureau, and the Lodi Chamber of Commerce that promote the
region, includingthe EnterpriseZone.
Office Equipment & Maintenance: The City commits an annual value of $1,500 to office equipment
and maintenance. Such value represents the portion of City computer systems, telephones, and
fax and copy machines devoted to Zone affairs.
Office Supplies: The City commits an annual value of $20,000 to office supplies. Such value
represents the cost of paper, stationery, envelopes, and other supplies consumed for Zone affairs.
Telecommunications: The City commits an annual value of $1,500 to cover telephone and internet
expenses related to Zone affairs.
E_ligb lits for Solar Rebates: The City has committed $6 million over ten years in rebatesfor solar
energy projects. Businesses within the EnterpriseZone will be eligible for rebates.
Reduced Eiectricitv Rates: The Lodi Electric Utility's rates for industrial users is, on average, 30%
less than the adjacent investor-owned utility and is available to businesses locating within the
EnterpriseZone.
III. Total Contributions
The total direct annual value ofthe contributions of the City of Lodi to the Zone shall be $144,024.
Additionally, the City of Lodi is currently Committing $375,000 for consultant services and marketing
for regional benefitthat includes the EnterpriseZone. The City of Lodi acknowledges that its direct
commitment is an annual commitment for the life of the Zone.
The City Council of the City of Lodi has approved this Letter of Commitment as an attachment to a
Resolution. The City Manager is directed to transmit this Letter of Commitment with the
EnterpriseZone application.
Sincerely
Bo hnson
r, City of Lodi
BJffh
N:\Administration\CLERK\Council\CQRRESP\LEMRSUenterprisezone.doc
RESOLUTION NO. 2007-215
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
APPLICATION TO STATE OF CALIFORNIA FOR SAN JOAQUIN
COUNTY ENTERPRISEZONE, APPROVING ENTERPRISEZONE
LETTER OF COMMITMENT; AND APPROVE MEMORANDUM OF
UNDERSTANDING FOR MULTI -AGENCY COOPERATION
WHEREAS, the City of Lodi and other public entities are submitting a joint application for a
California Enterprise Zone, to be known as the San Joaquin County Enterprise Zone, to the California
Department of Housing and Community Development (the Department) on or before November 16,2007;
and
WHEREAS, the City of Lodi finds that the application area within the City of Lodi is a depressed
area and that designation of the area as an Enterprise Zone is necessary in order to attract private sector
investment to the application area: and
WHEREAS, the City of Lodi authorizes an application for EnterpriseZone designation; and
WHEREAS, the City of Lodi authorizes and supports job development, job creation, and
economic development: and
WHEREAS, the City of Lodi authorizes that staffing shall be made available to maintain record-
keeping, monthly updates on zone activities, and to discuss these activities with program auditors; and
WHEREAS, the City of Lodi shall develop a self-evaluation process to measure its progress in
meeting its goals and objectives, and this process shall be submitted to the Department for review,
approval, and inclusion in the Memorandum of Understanding (MOU) priorto Final Designation; and
WHEREAS, the City of Lodi agrees to complete all actions stated within the application that apply
to itsjurisdiction should the proposed Enterprise Zone be awarded designation: and
WHEREAS, the Lodi City Manager is authorized to sign the application, the MOU, and other
documents necessaryfor the implementation of the Enterprise Zone.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi that the City is
committed to the designation, implementation, and operation of the San Joaquin County Enterprise Zone,
and further authorizingthe City Managerto take actions requiredto providefor a successful application.
Dated: November 7,2007
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hereby certify that Resolution 2007-215 was passed and adopted by the Lodi City Council in a
regular meeting held on November 7, 2007, by the following vote:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Katzakian, Mounce, and
MayorJohnson
NOES: COUNCIL MEMBERS—None
ABSENT COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
NIFER PERRIN
eputy Cit lerk
2007-215
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MEMORANDUM OF UNDERSTANDING FOR MULTIAGENCY COOPERATION IN
THE IMPLEMENTATION, MANAGEMENTAND MARKETING OF
THE SAN JOAQUIN COUNTY ENTERPRISEZONE
This MEMORANDUM OF UNDERSTANDING (hereinafter "MOU") is made and
?xecuted this 81h day of November, 2007 (the "Effective date") by and between the citie
)f Stockton, Lodi, Manteca, Lathrop and Tracy, municipal corporationsof the State of
,alifornia (hereinafter referred to as "CITIES"), the COUNTY OF SAN JOAQUIN, a
)olitical subdivision of the State of California (hereinafter referred to as "COUNTY"), an
he San Joaquin Partnership, a non-profit economic development corporation.
WITNESSED
WHEREAS, the existing Stockton/San Joaquin County Enterprise Zone has
:ontributed substantially to the economic development and social advancement of
iortions of the City of Stockton and the COUNTY since 1993, but is expiring in 2008;
WHEREAS, the CITIES and COUNTY are applying for an Enterprise Zone
lesignation by the State of California in the 2007/2008 application round in order to
iring Enterprise Zone benefits to four more cities (Lathrop, Lodi, Manteca and Tracy)
end a wider area of San Joaquin County (French Camp, Linden and Thornton).
WHEREAS, the implementation, managementand marketing of an Enterprise
:one upon designation is a long-term (15 -year) partnership between local government:
Business organizations and businesses;
WHEREAS, the successful implementation of an Enterprise Zone Program
?quiresa strong commitment and cooperation by the all of the program participants in
upport of job development, job creation and economic development;
WHEREAS, the purpose of the California State EnterpriseZone Program is to
timulate business and industrial growth in depressed areas of the state, help attract
usiness to the state, help retain and expand business and industry, and create
icreased job opportunities for all Californians;
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WHEREAS, the parties of this MOU acknowledge they need the Enterprise Zone
'rogram to improve economic conditions and overall quality of life within the territory of
ie five participating cities and in the unincorporated area of San Joaquin County;
NOW, THEREFORE, CITIES, COUNTY, and San Joaquin Partnership agree as
II )Ilows:
ARTICLE I
DEFINITIONS
►. "Comprehensive Marketing Strategy" is a component of the Marketing Strategy
nd Plan section of the Economic Development Plan.
"Department" is the California Department of Housing and Community
)evelopment.
"Economic Development Plan" is a part of the Enterprise Zone application
onsisting of eight sections, including the "Marketing Strategy and Plan" and the "Job
)evelopment, Vouchering Plan and Vouchering Fee Remittance Plan."
). "Employment and Economic Development Department" or "EEDD" is a COUNTY
epartment under the jurisdiction of the San Joaquin County Board of Supervisors, and
the administrative entity for the Workforce Investment Board dbaWorkNet, the
:conomic Development Association, and Revolving Loan Fund.
:. "Enterprise Zone Advisory Committee" or "Committee" is a body comprised of the
:one Manager, and designees from the COUNTY, the five participating CITIES, EEDD,
,an Joaquin Partnershipand other stakeholders as needed. The Committee reviews
ngoing Zone program activities, including regular self-evaluation, and makes policy
)commendations to the Zone Manager and to all Zone jurisdictions and economic
evelopment partners.
"Job Development Plan" is the component of the Economic Development Plan
iat details how the zone will target employee screening, training, and job -linkage
ervices.
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"Vouchering Fee Remittance Plan" is the component of the Economic
Development Plan that details how the Zone will process, manage and report voucher
application fees.
I H.
"Vouchering Plan" is the component of the Economic Development Plan that
identifiesthe processfor verifying and determiningthe validity of claims, storage of
documents and tracking of categories of eligibility for vouchers.
I. "Zone" means the San Joaquin County Enterprise Zone.
J. "Zone Manager" is an employee of the COUNTY Employment and Economic
Development Departmentwho is the overall leader and administrator of the Zone.
ARTICLE II
ROLES OF PARTICIPATING AGENCIES
A. COUNTY OF SAN JOAQUIN
1. The COUNTY has prepared a Letter of Commitment (Exhibit 1 to this
Memorandum) delineating the resources made available by the County of San Joaquin
for the implementation of the Zone Program.
2. The Zone Manager shall be an employee of the COUNTY Employment and
Economic Development Department. The Zone Manager shall be in charge of the
overall coordination of all programs and activities of the Enterprise Zone. The Zone
Manager shall work with the Zone Coordinators of the COUNTY and of each
participating CITY, the president & chief executive of the San Joaquin Partnership, and
other economic development partners to ensure the successful implementation of all of
the components of the Enterprise Zone Economic Development Plan, periodically
review the achievement of the goals of the Enterprise Zone, and verify compliance with
the reporting requirements to the State and all the members of the Enterprise Zone.
3. The COUNTY Administrator shall appoint an Enterprise Zone Coordinator who
shall be the primary local marketing agent for the Zone in the unincorporated area of
San Joaquin County, including the communities of Thornton, Linden and French Camp.
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he COUNTY Zone Coordinator shall be the main source of all relevant information
elating to the Zone in the unincorporated area requested by the business community,
he public and residents wishing to participate in the Zone Program.
The COUNTY may develop its own local marketing programs designed to
)romote economic development and job creation opportunities, focusing particularly on
he unincorporated area of the County.
i. The COUNTY and the participating CITIES agree that the lead agency for the
nternal marketing programs of the Zone shall be the COUNTY Economic Developmen!
#ssociation (hereinafter "EDA"). Subject to oversight by the Enterprise Zone Advisory
committee, the EDA shall lead implementation of the business retention and expansior
;lements of the Marketing Strategy and Plan, with supporting implementation by the
COUNTY, all participating CITIES and economic development partners. To the greater
,,xtent practicable, the EDA shall coordinate its Zone internal marketing activities with
he San Joaquin Partnership, which shall handle the Zone's overall external marketing
activities.
i. The COUNTY and CITIES agree that EEDD shall implement the Job
)evelopment Plan, Vouchering Plan and the Voucher Fee Remittance Plan. The
;OUNTY and CITIES agree that the EEDD shall be the Vouchering Agent in charge of
nanaging the issuance of vouchers to Zone program participants. EEDD shall also be
esponsible for retention of voucher -related records for the life of the Zone plus ten
ears.
F. The Zone Manager, or his/her agent within the EEDD, shall process and remit
Iirectly to the Department by the 25`" day on the State's Monthly Form all of the $10.00
,oucher application fees collected on behalf of the Department during the preceding
nonth. The Zone Manager, or his/her agent within the EEDD, shall provide copies of
;aid completed monthly remittance forms to the Enterprise Zone Advisory Committee.
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1 3. The COUNTY Zone Coordinator and the EEDD Administrator shall each
;ontribute a monthly progress report of Zone -related activities to the Zone Manager for
nclusion with the required monthly reports to the Department.
�. The COUNTY Zone Coordinator and EEDD Administrator shall each submit to
he Zone Manager self-evaluation of performance of its Zone activities at least once
)er year for inclusion with the Zone annual report.
3. PARTICIPATING CITIES IN THE COUNTY Q' SAN JOAQUIN
1. Each participating CITY has prepared a Letter of Commitment (Exhibits 2
hrough 6 to this Memorandum) delineating the resources being contributed to the
mplementation of the Zone program.
?. Each participating CITY shall appoint an Enterprise Zone Coordinatorwho shall
)e the primary local marketing agent for the Zone in each CITY. The City Zone
Doordinator shall be the main source of all relevant information relating to the Zone in
hat CITY requested by the business community, the public and residents wishing to
participate in the Zone Program.
3. Each CITY may develop its own local marketing programs designed to promote
:conomic development and job creation opportunities in each CITY.
1. Each CITY Zone Coordinator shall contribute a monthly progress report of Zone -
,elated activities to the Zone Managerfor inclusion with the required monthly reports to
:he Department.
5. Each CITY Zone Coordinator shall submit to the Zone Manager a self-evaluation
)f performance of its Zone activities at least once per year for inclusion with the Zone
annual report.
:. SAN JOAQUIN PARTNERSHIP
1. The San Joaquin Partnership (hereinafter "PARTNERSHIP"), a non-profit
Dconomic development corporation, has prepared a Letter of Commitment (Exhibit 7 to
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this Memorandum) delineating the resources being contributed to the implementation 01
the Zone program, particularly the Marketing Strategy and Plan.
2. The COUNTY and the participating CITIES agree that the PARTNERSHIP shall
implement the external marketing and business attraction elements of the regional
marketing program of the Zone. Subject to oversight from the Enterprise Zone Advisor
Committee, the PARTNERSHIP shall lead implementation of the external marketing an
business attraction elements of the Marketing Strategy and Plan, with supporting
implementation by the COUNTY, all participating CITIES and other economic
development partners. To the greatest extent practicable, the PARTNERSHIP shall
,.00rdinate its Zone external marketing activities with the EDA, which shall handle the
Zone's overall internal marketing activities.
3. The PARTNERSHIP agrees to integrate the Zone program into existing and
future programs, including its Strategic Plans.
4. The PARTNERSHIP shall contribute a monthly progress report on its Zone
sctivities to the Zone Managerfor inclusion with the required monthly reports to the
Department.
5. The PARTNERSHIP shall submit to the Zone Manager a self-evaluation of
performance of its Zone activities at least once per year for inclusion with the Zone
annual report. The Economic Development Plan details how the PARTNERSHIP shall
self -evaluate its performance. Subject to oversight by the Enterprise Zone Advisory
,ommittee, the PARTNERSHIP shall revise the external marketing and business
attraction elements of the Comprehensive Marketing Strategy, Annual Marketing Plan
snd other marketing components of the Economic Development Plan in accordance
Nith the findings of the self-evaluation.
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ARTICLE 111
ENTERPRISEZONE PROGRAM FINANCING
The State of California, in granting the Enterprise Zone designation, does not
arovide funding for the implementation of the Enterprise Zone program. Funding of the
nterprise Zone program requires the commitment of all local participating jurisdictions
or the duration of the enterprise zone designation (15years). The governing body of
;ach participating agency has approved a letter of commitment (Exhibits 1 through 7 t
his Memorandum) detailing the resources being committed for the marketing and
)peration of the Enterprise Zone program.
3. Aside from the participating agencies' staff and financial resources being
;ommitted, the Zone shall generate additional revenue from a surcharge to the $10.00
ee already required by the State for the issuance of vouchers. EEDD currently issues
vouchers for the existing zone and proposesthe same initial fee of $75.00pervoucher
application. Of the $75.00voucher application fee, $10.00would go to the State and
;65.00 EEDD will use to mitigate the costs to issue vouchers, recordkeeping, fee
emittance, record storage and retrieval and other direct and indirect costs associated
vith issuing Vouchers. With the concurrence of the Zone Advisory Committee, EEDD
shall amend the voucher application fee as permitted by State Law and Enterprise Zon
3egulations.
ARTICLE IV
CITIES AND COUNTY OVERSIGHT
1. An Enterprise Zone Advisory Committee comprised of the Zone Manager, and
lesignees from the COUNTY, the five participating CITIES, EEDD, the San Joaquin
'artnership and other stakeholders, as needed, shall review ongoing program activities
end make policy recommendations. The Committee shall oversee self-evaluation of th
.one's Economic Development Plan, among other functions. The Committee shall hol+
A least one Zone self-evaluation meeting per year in order to assess progress in
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attaining performance benchmarks and other goals and, as necessary, revise Economic
Development Plan strategies.
B. The CITIES, the PARTNERSHIP, the COUNTY Zone Coordinator and EEDD
shall assist the Zone Manager in the preparation of monthly, annual and other reports
required by the State of California by providing the Zone Managerwith monthly
accountings of Zone -related activities and performance. The Zone Manager shall
submit all reports to the Department. The Zone Manager shall provide copies of all
reports submitted to the Departmentto the City Zone Coordinators, the President and
CEO of the PARTNERSHIP, the COUNTY Zone Coordinator and the EEDD
Administrator.
C. Each participating CITY has the responsibility to ensure that all aspects of the
Enterprise Zone comply with State Law for transactions occurring in the respective
incorporatedjurisdictions of each participating CITY. The COUNTY has the
responsibility to ensure that all aspects of the Enterprise Zone comply with State Law
for transactions occurring in the unincorporated area of the COUNTY.
IN WITNESS WHEREOF, parties hereto have executed this MOU in San Joaquin
County, State of California, on the date set forth above.
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IDOUNTY OF SAN JOAQUIN, a Political
Subdivision of the State of California
("COUNTY)
By:
Chairman
Board of Supervisors
ATTEST:
Clerk to the Board of Supervisors
APPROVED AS TO LEGAL FORM:
County Counsel
CITY OF LODI, a Municipal
Corporation of the State of California
Mayor
CITY OF LODI
APPROVED AS TO LEGAL FORM:
City Attorney
CITY OF LODI
am
ATTEST:
Clerk to the City of LODI
r:�
E
CITY OF LATHROP, a Municipal
Corporation of the State of California
By:
Mayor
CITY OF LATHROP
APPROVED AS TO LEGAL FORM:
City Attorney
CITY OF LATHROP
By:
ATTEST:
Clerk to the City of LATHROP
By:
CITY OF MANTECA, a Municipal
Corporation of the State of California
By:
Mayor
CITY OF MANTECA
APPROVED AS TO LEGAL FORM:
City Attorney
CITY OF MANTECA
0
ATTEST:
Clerk to the City of MANTECA
By:
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CITY OF STOCKTON, a Municipal
Corporation of the State cf California
Bv:
Mayor
CITY OF STOCKTON
APPROVED AS TO LEGAL FORM
City Attorney
CITY OF STOCKTON
By:
ATTEST:
Clerk to the City of STOCKTON
By:
SAN JOAQUIN PARTNERSHIP
By:
Michael E. Locke,
President& CEO,
SAN JOAQUIN PARTNERSHIP
CITY OF TRACY, a Municipal
Corporation of the State of California
BY:
Mayor
CITY OF TRACY
APPROVED AS TO LEGAL FORM:
City Attorney
CITY OF TRACY
ATTEST:
Clerk to the City of TRACY
By:
On following pages: EXHIBITS 1 — 7
Letters of Commitment
TO BE ATTACHED AFTER APPROVAL BY EACH PUBLIC ENTITY/ORGANIZATION
Exhibit 1: Letter of Commitmentfrom County
Exhibits 2-6: Letters of Commitmentfrom Cities
Exhibit 7: Letter of Commitment from San Joaquin Partnership
10
CITY COUNCIL
BOB JOHNSON, Mayor CITY OF L O D I
JOANNE MOUNCE,
Mayor Pro Tempore CITY HALL, 221 WEST PINE STREET
LARRY D. HANSEN P.O. BOX 3006
SUSAN HITCHCOCK LODI, CALIFORNIA 95241-1910
PHIL KATZAKIAN (209)333-6702/ FAX (209) 333-6807
www.lodi.gov cityclerk@lodi.gov
November 8,2007
Mr. Frank Luera, Interim Manager
EnterpriseZone Program
California Department of Housing and Community Development
1800 Third Street, Suite 390
Sacramento. CA 95814
BLAIR KING, City Manager
RANDI JOHL, City Clerk
D. STEPHEN SCHWABAUER
City Attorney
RE: LETTER OF COMMITMENTTO SAN JOAQUIN COUNTY ENTERPRISEZONE
The City of Lodi (hereinafter"City") is a general law city incorporated under California law. The City
hasjurisdiction over a portion of the proposed San Joaquin Valley EnterpriseZone (hereinafter
"Zone") and has heretofore resolved to be an applicant for the Zone. The City is separately
entering into a Memorandum of Understandingthat defines the respective roles of the participating
cities, the County of San Joaquin, and other Zone program participants. This Letter of
Commitment contains specific commitments that the City will make solely to the designation,
implementation, and operation of the proposed Zone.
Commitmentsof Staff Time
The City commits two staff members to the EnterpriseZone project.
If the Zone's application is successful, the Citywill hire a new Economic Development Coordinator
and will dedicate 35% of his or her time to the project at an annual value of approximately $37,000,
including $28,000 in salary and $9,000 in benefits. He or she shall be the Zone manager for the
City of Lodi. His or her tasks to be completed in support of the Zone will be to conduct marketing
for the Zone and to undertake business expansion, attraction, and retention activities for the Zone.
This will be a new position. The City Manager will have the discretion to designate a staff liaison to
fast-track economic development projects within the Zone.
Second, Rob Lechner, Manager of Customer Services and Programswith Lodi Electric Utility, will
dedicate 20% of his time to the project at an annual value of $26,000, including $19,000 in salary
and $7,000 in benefits. His tasks to be completed in support of the Zone will be the Lodi Electric
Utility's key account representative assigned to businesses located within the EnterpriseZone.
II. Commitments of Other Services and Supplies
The City also commits the following to the Zone program:
San Joaauin County Enterprise Zone: The City commits $23,024 per year to the San Joaquin
County EnterpriseZone for zone administration,job development, and marketing.
San Joaauin Partnership Dues: The City commits $35,000 per year to the San Joaquin Partnership
for Zone marketing and business attraction.
Professional Consultant Services: The City is currently committing $250,000 for professional
consultant services toward the creation of a Redevelopment Project Area that will include the
EnterpriseZone.
Other Advertising & Marketinq: The City commits an annual value of $125,000 to fund a broad
range of business and marketing organizations including the Downtown Lodi Business Partnership,
the Lodi Conference and Visitors Bureau, and the Lodi Chamber of Commerce that promote the
region, includingthe EnterpriseZone.
Office Eauioment & Maintenance: The City commits an annual value of $1,500 to office equipment
and maintenance. Such value represents the portion of City computer systems, telephones, and
fax and copy machines devoted to Zone affairs.
Office Supplies: The City commits an annual value of $20,000 to office supplies. Such value
represents the cost of paper, stationery, envelopes, and other supplies consumed for Zone affairs.
Telecommunications: The City commits an annual value of $1,500 to cover telephone and internet
expenses related to Zone affairs.
Eligibility for Solar Rebates: The City has committed $6 million over ten years in rebates for solar
energy projects. Businesseswithin the Enterprise Zone will be eligible for rebates.
Reduced Electricitv Rates: The Lodi Electric Utility's rates for industrial users is, on average, 30%
less than the adjacent investor-owned utility and is available to businesses locating within the
Enterprise Zone.
III. Total Contributions
The total direct annual value of the contributions of the City of Lodi to the Zone shall be $144,024.
Additionally, the City of Lodi is currently committing $375,000 for consultant services and marketing
for regional benefit that includes the EnterpriseZone. The City of Lodi acknowledges that its direct
commitment is an annual commitment for the life of the Zone.
The City Council of the City of Lodi has approved this Letter of Commitment as an attachment to a
Resolution. The City Manager is directed to transmit this Letter of Commitment with the
EnterpriseZone application.
Sincerely,
Bob Johnson
Mayor, City of Lodi
Bath
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