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HomeMy WebLinkAboutAgenda Report - April 4, 2018 G-02 PHTM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM G-2 AGENDA TITLE: Public Hearing to Consider Introducing an Ordinance Amending Lodi Municipal Code Chapter 13.20 — Electrical Service — by Repealing and Re -Enacting Section 13.20.315, "Schedule EDR - Economic Development Rate" to Reenact the Utility Rate Discount from July 1, 2018 to June 30, 2023 MEETING DATE: April 4, 2018 PREPARED BY: Business Development Manager RECOMMENDED ACTION: Conduct a public hearing to consider introducing an ordinance amending Lodi Municipal Code Chapter 13.20 — Electrical Service — by repealing and re-enacting Section 13.20.315, "Schedule EDR - Economic Development Rate" to reenact the utility rate discount from July 1, 2018 to June 30, 2023. BACKGROUND INFORMATION: Since July 2013, the City of Lodi has offered businesses a pair of temporary electric rate discounts: New Business and New Jobs. To date, 47 business customers have applied to receive one of the two rate discounts. In calendar year 2017, this resulted in a total savings of approximately $414,000 for the participating businesses. Both of these rate discounts are set to expire on June 30, 2018. Staff recommends both rate discounts, which serve as excellent economic development incentive tools for the City of Lodi, be reenacted for a five-year period, from July 1, 2018 to June 30, 2023. If reenacted, the program would continue to operate in accordance with the following ordinance requirements: New Business Rate Discount: Provided for 12 consecutive months; new businesses assigned to the G2, G3, G4, G5, or I1 electric rate will receive a 5 percent discount per month; new businesses assigned to the 01 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 net 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 Employees Percentage Discount 1-3 2% 4-6 4% 7-9 6% 10+ 1 8% FISCAL IMPACT: The fiscal impact for the proposed five-year discount reenactment will be dependent upon the total number of program participants. FUNDING AVAILABLE: Not applicable. APPROVED: Adam Brucker Business Development Manager Step en Schwaba• ity Manager ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE TITLE 13 "PUBLIC SERVICES", CHAPTER 13.20 —"ELECTRICAL SERVICE", ARTICLE 111 "RATES" —BY REPEALING AND REENACTING SECTION 13.20.315 —"-SCHEDULE EDR — ECONOMIC DEVELOPMENT RATES" IN ITS ENTIRETY, AND DEVELOPMENT RATES IN ITS ENTIRETY BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Title 13 "Public Services", Chapter 13.20 —"Electrical Service Article III "Rates" is hereby amended by repealing and reenacting Section 13.20.315 —"Schedule EDR - Economic Development Rates" in its entirety_, and recnacting Scction 13.20.315 Schcdulc EDR Economic Development Rates in its entirety, and Section 13.20.3154 shall read as follows: SECTION 13.20.315 SCHEDULE EDR — ECONOMIC DEVELOPMENT RATES Applicability: A. New Business Rate (NBR) Discount. NBR discount, applicable to any new commercial or industrial customer that locates their operations/business in the city of Lodi andthat 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, including but not limited to the NJR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, 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 (NJR) 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 discount for four to six new positions; six percent discount for seven to nine positions; and eight percent discount 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, including but not limited to the NBR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, 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 July 1, 2018 and said utility rate discounts shall expire on June 30, 2023. 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. Effective Date and Publication. This Ordinance shall take effect on July 1, 2018. In lieu of publication of the full text of the ordinance within fifteen (15) days after its passage, a summary of the ordinance may be published at least five (5) days prior to and fifteen (15) days after adoption by the City Council, and a certified copy shall be posted in the office of the City Clerk pursuant to Government Code section 36933(c)(1). Approved this day of , 2018 ATTEST: ALAN NAKANISHI Mayor 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 March 7, 2018, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2018, 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 as to Form: JENNIFER M. FERRAIOLO JANICE D. MAGDICH City Attorney 2 City Clerk ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE TITLE 13 "PUBLIC SERVICES", CHAPTER 13.20 "ELECTRICAL SERVICE", ARTICLE III "RATES" BY REPEALING AND REENACTING SECTION 13.20.315 "SCHEDULE EDR — ECONOMIC DEVELOPMENT RATES" IN ITS ENTIRETY BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Title 13 "Public Services", Chapter 13.20 "Electrical Service", Article III "Rates" is hereby amended by repealing and reenacting Section 13.20.315 "Schedule EDR - Economic Development Rates" in its entirety. Section 13.20.3154 shall read as follows: SECTION 13.20.315 SCHEDULE EDR — ECONOMIC DEVELOPMENT RATES Applicability: A New Business Rate (NBR) Discount. NBR discount, applicable to any new commercial or industrial customer that locates their operations/business in the city of Lodi and 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, including but not limited to the NJR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, 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 (NJR) 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 discount for four to six new positions; six percent discount for seven to nine positions; and eight percent discount 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, including but not limited to the NBR discount, and shall only apply to the base rate. Surcharges including, but not limited to, the California Energy Commission fee, 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 July 1, 2018 and said utility rate discounts shall expire on June 30, 2023. 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. Effective Date and Publication. This Ordinance shall take effect on July 1, 2018. In lieu of publication of the full text of the ordinance within fifteen (15) days after its passage, a summary of the ordinance may be published at least five (5) days prior to and fifteen (15) days after adoption by the City Council, and a certified copy shall be posted in the office of the City Clerk pursuant to Government Code section 36933(c)(1). Approved this day of , 2018 ATTEST: ALAN NAKANISHI Mayor 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 April 4, 2018, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2018, 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 as to Form: JENNIFER M. FERRAIOLO JANICE D. MAGDICH City Attorney 2 City Clerk SUBJECT: Please immediately confirm receipt of'this .fax by calling 333-6702 CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS PUBLIC HEARING TO CONSIDER INTRODUCING AN ORDINANCE AMENDING LODI MUNICIPAL CODE TITLE 13, "PUBLIC SERVICES," CHAPTER 13.20, "ELECTRICAL SERVICE," ARTICLE 111, "RATES," BY REPEALING AND REENACTING SECTION 13.20.315, "SCHEDULE EDR - ECONOMIC DEVELOPMENT RATES," IN ITS ENTIRETY PUBLISH DATE: SATURDAY, MARCH 10, 2018 LEGAL AD TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: LNS ACCT. #0510052 DATED: THURSDAY, MARCH 8, 2018 JENNIFER M. FERRAIOLO, CITY CLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK 42,Yrze.,,e2 -7 / J, PAMELA M. FARRIS DEPUTY CITY CLERK ELIZABETH BURGOS ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File LNS Emailed to the Sentinel at classifiedl@lodinews.com at ' me) on`3/ /L (date) (pages) Phoned to confirm receipt of all pages at (time) E6 PMF (initials) forms\advins.doc DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER INTRODUCING AN ORDINANCE AMENDING LODI MUNICIPAL CODE TITLE 13, "PUBLIC SERVICES," CHAPTER 13.20, "ELECTRICAL SERVICE," ARTICLE III, "RATES," BY REPEALING AND REENACTING SECTION 13.20.315, "SCHEDULE EDR — ECONOMIC DEVELOPMENT RATES," IN ITS ENTIRETY On Thursday, March 8, 2018, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider introducing an amending Lodi Municipal Code Title 13, "Public Services," Chapter 13.20, "Electrical Service," Article III, "Rates," by repealing and reenacting Section 13.20.315, "Schedule EDR — Economic Development Rates," in its entirety (attached and marked as Exhibit A) was posted at the following locations: Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum WorkNet Office I declare under penalty of perjury that the foregoing is true and correct. Executed on March 8, 2018, at Lodi, California. ORDERED BY: JENNIFER M. FERRAIOLO CITY CLERK PAMELA M. FARRIS ELIZABETH BURGOS DEPUTYCITY CLERK ADMINISTRATIVE CLERK N:Administration\CLERK\Public Hearings\AFFADAVITS\DECPOSTEUD.DOC CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi NOTICE OF PUBLIC HEARING Date: April 4, 2018 Time: 7:00 p.m. For information regarding this notice please contact: Jennifer M. Ferraiolo City Clerk Telephone: (209) 333-6702 F SI-rid{il, A NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, April 4, 2018, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following matter: a) Introducing an ordinance amending Lodi Municipal Code Title 13, "Public Services," Chapter 13.20, "Electrical Service," Article III, "Rates," by repealing and reenacting Section 13.20.315, "Schedule EDR — Economic Development Rates," in its entirety. Information regarding this item may be obtained in the Electric Utility Department, 1331 South Ham Lane, Lodi, (209) 333-6762. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. By Order of the Lodi City Council: Li, 1 nifer City Clerk J erraiolo Dated: March 7, 2018 Approved as to form: Janice D. Magdich City Attorney AVISO: Para obtener ayuda interpretativa con esta noticia, por favor Ilame a la oficina de la Secretaria Municipal, a las (209) 333-6702. CLERK\PUBHEAR\NOTICES\Noleud.doc 3/1/18