The URL can be used to link to this page

Home My WebLink AboutMinutes - September 28, 2021 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, SEPTEMBER 28, 2021 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, September 28, 2021, commencing at 7:05 a.m. Due to the COVID-19 pandemic and pursuant to Executive Order N-29-20, all Council Members participated in the meeting via teleconference and the meeting was available for viewing by the public via livestream at https://www.facebook.com/CityofLodi/ and https://zoom.us/j/93455719476?pwd=NDdhc1E4OEZyYWV3d2pDY1U5SjVZZz09; the opportunity for public comment was available through councilcomments@lodi.gov and https://zoom.us/j/93455719476?pwd=NDdhc1E4OEZyYWV3d2pDY1U5SjVZZz09. Present: Council Member Hothi, Council Member Khan, Council Member Kuehne, Mayor Pro Tempore Chandler, and Mayor Nakanishi Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Cusmir Business Development Manager Astrida Trupovnieks provided a PowerPoint presentation regarding the Economic Development Rate Discount Program. Specific topics of discussion included the Economic Development Program in Lodi; expanding tax base, attracting new capital, and generating revenue; sustaining Lodi Electric Utility (LEU) by creating new electric load; creating conditions for existing business to expand; LEU Economic Development Program Con- Duit All; current Economic Development rate discount; new Economic Development rate discount; new Economic Development Rate (EDR) Program; estimated cost of new EDR program; eligibility criteria; and job cuts during discount agreement. Council Member Khan voiced his support for the program. Mayor Pro Tempore Chandler voiced his support for the program and stated there are companies who could take advantage of the program. Council Member Kuehne voiced his support for the program and said he would like to hear public comment. Pat Patrick, President and CEO of the Lodi Chamber of Commerce, provided public comment in support of the program. Mr. Patrick noted many local companies are planning on expanding. City Manager Schwabauer stated staff will bring the program forward for a Public Hearing and an ordinance change. Mayor Nakanishi voiced his support for the program. A.Roll Call by City Clerk B. Topic(s) B-1 Receive Presentation and Accept Comments Regarding Economic Development Rate Discount Program (EU) 1 None. No action was taken by the City Council. The meeting was adjourned at 7:22 a.m. C. Comments by Public on Non-Agenda Items D.Adjournment ATTEST: Jennifer Cusmir City Clerk 2 Lodi Electric Utility Best electrical solutions for the best customers. Shirtsleeve Session with City Council on September 28, 2021 Economic Development Program in Lodi I.Expand Tax Base, Attract Capital, Generate Revenue II.Sustain Lodi Electric Utility by Creating New Electric Load III. Create Conditions for Existing Business to Expand I. Expand Tax Base, Attract New Capital, Generate Revenue •Facilitate new job creation •Induce maintaining existing jobs •Provide the means for increases in economic growth II. Sustain LEU by Creating New Electric Load •Ongoing communication with key accounts speeds up local investment •Responding to key account needs •Provide energy efficiency solutions to increase bottom line •Incentivize jobs •Lower costs for greater profit margin •Actively manage key accounts III. Create Conditions for Existing Business to Expand •Work the problem •Modify programs to meet needs of existing business •Business retention visits •Advocate to find lowest rates and fees possible LEU Economic Development Program Con-Duit All •Economic Development Discount Rate •New Business Monthly Discount •Zero Percent Loan Financing •Customized Energy Efficiency Rebates •EV Charger Rebates •Energy Efficiency Engineering Consultation (upon request) •Keep Your Cool program for small business Economic Development Rate Discount •Established in 2011; Rate re-established 2015 and 2018 •Based on # new jobs; not replacements •12 month period and annual renewal required •Subject to validation •$350,000 per year •2%-one to 3 new jobs •4%-4 to 6 new jobs •6%-7 to 9 new jobs •8%-10 or more new jobs New Economic Development Rate Discount •Available to businesses creating more than 20 jobs •Maximum discount of 8% •Spread benefits (amortize) out over more than one year •Maximum benefit 5 years •Discount becomes function of # new jobs and 5-year amortization period •Subject to validation New Economic Development Rate Program # New Jobs Year 1 Year 2 Year 3 Year 4 Year 5 10-20 8% 21-30 8%8% 31-40 8%8%8% 41-50 8%8%8%8%. >50 8%8%8%8%8% Estimated Cost of New EDR Program # new jobs Year 1 8% Year 2 8% Year 3 8% Year 4 8% Year 5 8% Total 1-10 $46,000 $46,000 11-20 $46,000 $46,000 21-30 $46,000 $46,000 $92,000 31-40 $46,000 $46,000 $46,000 $138,000 41-50 $46,000 $46,000 $46,000 $46,000 $184,000 >50 $46,000 $46,000 $46,000 $46,000 $46,000 $230,000 Depends on kWh, rate class, and demand Eligibility Criteria •Any commercial or industrial customer adding more than 20 new full-time positions •Maintain same number over the amortization period •Sign an affidavit stating the EDR is an influencing factor to locate or remain within LEU service territory •Submit a report including the number, date of hire of new jobs What happens when jobs are cut during a 5 year discount agreement? Each year of a 5 year discounted agreement represents 20 percent of the program. 20 percent loss in positions = lose one year of multi-year program Jobs cut from 2, 3 or 4 year agreements? # new jobs Year 1 8% Year 2 8% Year 3 8% Year 4 8% Year 5 8% Total 1-10 $XX,XXX 11-20 $XX,XXX 21-30 $XX,XXX $XX,XXX 31-40 $XX,XXX $XX,XXX $XX,XXX 41-50 $XX,XXX $XX,XXX $XX,XXX $XX,XXX Questions?