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Home My WebLink AboutAgenda Report - June 17, 2015 I-04 SMAGENDA [TEM M004 CITY OF LODI (D COUNCIL COMMUNICATION TM AGENDA TITLE: Introduce an Ordinance Amending Lodi Municipal Code Chapter 13.20 — Electrical Service — by Repealing and Re -Enacting Section 13.20.315(C), "Schedule EDR - Economic Development Rate" to Re -Enact the Utility Rate Discount from September 1, 2015 to June 30, 2018 MEETING DATE: June 17, 2015 PREPARED BY: Business Development Manager RECOMMENDED ACTION: Introduce an ordinance amending Lodi Municipal Code Chapter 13.20 — Electrical Service — by repealing and re-enacting Section 13.20.315(C), "Schedule EDR - Economic Development Rate" to re-enact the utility rate discount from September 1, 2015 to June 30, 2018. BACKGROUND INFORMATION: Since July 2013, the City of Lodi has offered a pair of electric rate discounts: New Business and New Jobs. To date, 29 customers have signed up to receive one of the two rate discounts. As of June 1, 2015, this has resulted in a total savings of approximately $695,551 for the participating businesses. Both of these rate discounts are set to expire on June 30, 2015. Staff recommends both rate discounts, which serve as excellent economic development tools for the City of Lodi, be re-enacted from September 1, 2015 to June 30, 2018. If reenacted, the program would continue to operate in accordance with the following ordinance requirements: New Business Rate Discount: Provided for 12 consecutive months; all new businesses assigned to the G2, G3, G4, G5, or 11 electric rate will receive a 5 percent discount per month; all new businesses assigned to the G1 electric rate will receive a "flat monthly credit" of $25 per month. New Jobs Rate Discount: Provided for 12 consecutive months; all new hires must be new, full-time positions; there is a maximum 8 percent rate discount available; and the discount is provided in "bands" as shown below: Number of New. Full -Time E 1-3 4-6 7-9 10+ Percentage Discount 2% 4% 6% 8% FISCAL IMPACT: From July 1, 2013 to June 1, 2015, the discounts have totaled $695,551. It is anticipated that the total discount will not exceed $730,000 by June 30, 2015. The fiscal impact for the proposed discount reenactment will be dependent upon the total number of program participants. FUNDING AVAILABLE: Not applicable. Adam Brucker Business Development Manager 7 APPROVED: `5t he c wabauer ity Manager ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 – ELECTRICAL SERVICE – BY REPEALING AND REENACTING SECTION 13.20.315, "SCHEDULE EDR – ECONOMIC DEVELOPMENT RATE," IN ITS ENTIRETY BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Section 13.20.315, "Schedule EDR – Economic Development Rate," is hereby repealed and reenacted in its entirety to read as follows: 13.20.315 - Schedule EDR—Economic development rates. Applicability: A. New Business Rate Discount. NBR discount, applicable to any new commercial or industrial customer that locates their operations/business that receives electric utility service from the city of Lodi, with the following stipulations: a customer assigned to the G1 electric utility rate shall receive a discount for twelve consecutive months of twenty-five dollars per month; and, customers assigned to the G2, G3, G4, G5, or 11 electric utility rate shall receive a discount for twelve consecutive months of five percent; and this rate discount may not be combined with any other electric discount or rate and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, solar surcharge, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. B. New Jobs Rate Discount. NJR discount, applicable to any commercial or industrial customer that adds a minimum of one full-time position, and retains that position for at least twelve consecutive months, with the following stipulation: a two percent discount for one to three new positions; four percent for four to six new positions; six percent for seven to nine positions; and eight percent for ten or more new positions. The maximum discount available is eight percent; all discounts are available for twelve consecutive months; and this rate discount may not be combined with any other electric discount or rate and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, solar surcharge, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. C. The rate schedules referenced above shall be effective on applicable electric utility billings prepared by the City of Lodi on or after duly 1, 2013 September 1, 2015 and said utility rate discounts shall expire on June 30, 20158. SECTION 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 5. This ordinance shall be published pursuant to law and shall become effective 30 days from the date of passage and adoption. Approved this day of , 2015 BOBJOHNSON MAYOR ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held June 17, 2015, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2015, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH Z City Attorney (16 F) JENNIFER M. FERRAIOLO City Clerk I-4 Pamela Farris From: Mike Lusk <mclusk@softcom.net> Sent: Wednesday, June 17, 2015 11:00 AM To: City Council Subject: NO VOTE ITEM I-04 JUNE 17, 2015 LODI CITY COUNCIL June 17, 2015 I would like a NO vote on agenda item 1-04 Introduce Electrical Service ordinance (EDR). I feel the rate payers of LEU should not subsidize business thru our Utility rates. Mike Lusk, Lodi {, Please immediately confirm receipt o 'this ax b calling333-6702 .f .f y CITY OF LODI P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: SUMMARY OF ORDINANCE NO. 1906 PUBLISH DATE: SATURDAY, JUNE 20, 2015 TEAR SHEETS WANTED: One 1 lease SEND AFFIDAVIT AND BILL TO: JENNIFER M. FERRAIOLO, CITY CLERK LNS ACCT. #0510052 City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, JUNE 18, 2015 ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK PAMELA M. FARRIS DEPUTY CITY CLERK ELENA STODDARD ADMINISTRATIVE CLERK SEND PROOF OFADYF.RTlSEMElff. TIJANK YOU! Emailed to the Sentinel at dianer@lodinews.com at (time) on (date) (pages) LNS Phoned to confirm receipt of all pages at (time) _ES (initials) NAAdm inistration\CLERK\OrdSummarieMdvins. doc CITY OF LODI ORDINANCE NO. 1906 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 — ELECTRICAL SERVICE — BY REPEALING AND RE-ENACTING SECTION 13.20.315(C), "SCHEDULE EDR — ECONOMIC DEVELOPMENT RATE," TO RE-ENACT THE UTILITY RATE DISCOUNT FROM SEPTEMBER 1, 2015 TO JUNE 30, 2018. The purpose of this ordinance is to continue to offer electric rate discounts to businesses participating in specific Economic Development programs. Introduced June 17, 2015. Adoption will be considered July 15, 2015., AYES: Chandler, Kuehne, Mounce, Nakanishi, and Mayor Johnson; NOES: None; ABSENT: None. Pamela M. Farris, Deputy City Clerk City of Lodi June 18, 2015 Certified copy of the full text of this ordinance is available in the office of the Lodi City Clerk. DECLARATION OF POSTING ORDINANCE NO. 1906 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 — ELECTRICAL SERVICE — BY REPEALING AND RE-ENACTING SECTION 13.20.315(C), "SCHEDULE EDR — ECONOMIC DEVELOPMENT RATE," TO RE-ENACT THE UTILITY RATE DISCOUNT FROM SEPTEMBER 1, 2015 TO JUNE 30, 2018 On Thursday, June 18, 2015, in the City of Lodi, San Joaquin County, California, a certified copy of Ordinance No. 1906 (attached hereto, marked Exhibit "A") was posted in the Lodi City Clerk's Office. I declare under penalty of perjury that the foregoing is true and correct. Executed on June 18, 2015, at Lodi, California. Pamela M. Farris Deputy City Clerk ordsummaries\aaDecPost. doe ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK Elena Stoddard Administrative Clerk ORDINANCE NO. 1906 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 – ELECTRICAL SERVICE – BY REPEALING AND REENACTING SECTION 13.20.315, "SCHEDULE EDR – ECONOMIC DEVELOPMENT RATE," IN ITS ENTIRETY BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Section 1320.315, "Schedule EDR – Economic Development Rate," is hereby repealed and reenacted in its entirety to read as follows: 13.20.315 - Schedule EDR—Economic development rates. Applicability: A. New Business Rate Discount. NBR discount, applicable to any new commercial or industrial customer that locates their operations/business that receives electric utility service from the city of Lodi, with the following stipulations: a customer assigned to the G1 electric utility rate shall receive a discount for twelve consecutive months of twenty-five dollars per month; and, customers assigned to the G2, G3, G4, G5, or 11 electric utility rate shall receive a discount for twelve consecutive months of five percent; and this rate discount may not be combined with any other electric discount or rate and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, solar surcharge, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. B. New Jobs Rate Discount. NJR discount, applicable to any commercial or industrial customer that adds a minimum of one full-time position, and retains that position for at least twelve consecutive months, with the following stipulation: a two percent discount for one to three new positions, four percent for four to six new positions; six percent for seven to nine positions; and eight percent for ten or more new positions. The maximum discount available is eight percent; all discounts are available for twelve consecutive months; and this rate discount may not be combined with any other electric discount or rate and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, solar surcharge, public benefits charge, state energy tax, and other assessments or charges after the date of this rate schedule shall not be subject to this discount. C. The rate schedules referenced above shall be effective on applicable electric utility billings prepared by the City of Lodi on or after September 1, 2015 and said utility rate discounts shall expire on June 30, 2018. SECTION 2. No MandatorV Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 3. Severabilit . If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 5. This ordinance shall be published pursuant to law and shall become effective 30 days from the date of passage and adoption. Approved this day of , 2015 BOBJOHNSON MAYOR ATTEST: JENNIFER M. FERRAIOLO City Clerk State of California County of San Joaquin, ss. I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1906 was introduced at a regular meeting of the City Council of the City of Lodi held June 17, 2015, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2015, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. 1906 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Approved to Form: JANICE D. MAGDICH City Attorney 2 JENNIFER M. FERRAIOLO City Clerk