HomeMy WebLinkAboutResolutions - No. 2012-108RESOLUTION NO. 2012-108
A RESOLUTION OF THE LODI CITY COUNCILAUTHORIZING
THE CITY MANAGERTO ENTER INTOA REIMBURSEMENT
.AGREEMENT BETWEENTHE CITY OF LODI AND HOLZ RUBBER
COMPANY FOR UTILITY SERVICE AND TRANSFORMER
UPGRADE PROJECT
WHEREAS, Holz Rubber Company (HR) will be expanding its business; as a result, HR will
be installing nine pieces of manufacturing equipment; and
WHEREAS, in order to provide sufficient electric power to this equipment, HR needs to
upgrade a portion of its electric infrastructure at its plant located in the 1100 and 1200 blocks of
South Sacramento Street; and
WHEREAS, as part of its utility service upgrade, HR must also purchase and install a new
1,500 kVA transformer; and
WHEREAS, to facilitate this project, HR has requested that the City of Lodi Electric Utility
Department (EUD) purchase and install all required utility -related materials, including said
transformer; and
WHEREAS, as outlined in the Reimbursement Agreement, HR will pay $20,000 prior to the
start of this project and then reimburse the utility over the next 24 months (in equal monthly payment
installments) until the full amount is repaid with actual costs being trued -up in accordance with the
EUD Rules and Regulations; and
WHEREAS, additional revenue resultingfrom increased sales is unknown at this time; and
WHEREAS, funding is available in FY2012/13 EUD Budget Account Number 160650, the
loan to be repaid to this account.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize
the City Manager to enter into a Reimbursement Agreement between the City of Lodi and Holz
Rubber Company for a utility service and transformer upgrade project at an estimated cost of
$98,100, which will be true -up to actual costs at the completion of the project.
Dated: July 10, 2012
I hereby certify that Resolution No. 2012-108 was passed and adopted by the City Council of
the City of Lodi in a special meeting held July 10, 2012, by the following vote:
AYES: COUNCIL MEMBERS— Hansen, Johnson, Katzakian, Nakanishi, and
Mayor Mounce
NOES: COUNCIL MEMBERS —None
ABSENT: COUNCIL MEMBERS—None
ABSTAIN: COUNCIL MEMBERS— None
R L
City Clerk
2012-108