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HomeMy WebLinkAboutMinutes - February 14, 2017 SMLODI CITY COUNCIL SPECIAL CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, FEBRUARY 14, 2017 A. Call to Order / Roll Call The Special City Council meeting of February 14, 2017, was called to order by Mayor Pro Tempore Nakanishi at 7:01 a.m., at the Lodi Public Library, 201 West Locust Street, Lodi. Present: Council Member Chandler, Council Member Johnson, Council Member Mounce, and Mayor Pro Tempore Nakanishi Absent: Mayor Kuehne Also Present: City Manager Schwabauer, and City Clerk Ferraiolo NOTE: Council Member Chandler arrived at 7:03 a.m. B. Regular Calendar B-1 Provide Direction Regarding Residential Lottery Outcome for Annual Lodi Electric Utility Solar Rebate Program (EU) Business Development Manager Adam Brucker provided a presentation regarding the residential lottery outcome for the annual Lodi Electric Utility Solar Rebate Program. He reported that 52 residential and four commercial applications were received during the application period of January 3-31 and staff received previous direction from Council on how to allocate the $280,000 by applying $185,000 to residential applications and $95,000 split between three commercial projects. Mr. Brucker stated that the City received more applications than available funds, and staff proceeded with the lottery on February 8. He stated there were six to seven people, mostly contractors, in attendance and there were no glitches with the lottery for commercial applications. Roughly three quarters of the way through the residential lottery, it was discovered that some of the tickets fell out of the lottery drum, which brought the integrity of the process into question. The lottery was redone, and 11 of the projects selected initially were not selected in the second lottery. To complicate matters, some of those in attendance who were selected in the first lottery left the meeting once they were selected, and staff had no idea who the representatives were to notify them of the re-do on the lottery. Staff is seeking Council direction on the two options -- either stand with the second lottery draw or use public benefits funds that are available in the energy efficiencies budget to cover all of the rebates. In response to City Manager Schwabauer and Council Member Mounce, Mr. Brucker confirmed that there were 52 applications, the allocated funding amount would only provide 37 rebates from the solar surcharge dollars, 15 applications would not be funded, and 11 applications were selected in the first draw but not the second. Mr. Schwabauer explained that the staff recommendation is to fund all of the applications, which would not burden the overall project and would maintain customer goodwill. He stated the excess amount of $75,000 would be funded through the public benefits. Mr. Brucker confirmed there are enough funds in the public benefits fund to absorb this cost. In response to Council Member Chandler, Mr. Brucker stated that typically a waiting list is established, all applicants move up one on the list when another applicant drops out, projects are funded according to the waiting list order as funds become available, and the commercial list was carried over from last year and those applicants received priority. Mr. Brucker reported this is the last year of the solar surcharge program dollars; therefore, any remaining applicants will not carry forward to another year. He further confirmed that the public benefits fund, from which the excess amount will come, is typically used for energy efficiency projects, such as lighting and air 1 conditioning rebates for both commercial and residential projects. He stated that staff does not anticipate spending all of the funds on this line item and does not believe that this transfer will prevent other projects from happening. Council Member Mounce stated she believes the fairest option is to fund all of the projects. Council Member Johnson stated he believes that mistakes happen and a specific amount was allocated for the solar project. He suggested two other alternatives to address the quandary -- 1) stick with the second drawing and move on, or 2) take the allocated pot of money and divide it among all of the applications so that all of the applicants receive a rebate. Council Member Mounce stated she prefers staff's recommendation, which would provide the full rebate of $5,000 for each of the applicants. Mayor Pro Tempore Nakanishi stated that it is good public relations to give each of the applicants the full rebate. C. Adjournment There being no further business to come before the City Council, the meeting was adjourned at 7:12 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 2