AGENDA TITLE:
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Set Public Hearing for December 17, 2025 to Consider Introduction of Ordinance Repealing and Reenacting Lodi Municipal Code, Section 13.20.020 - Energy Theft Diversion/Field Services Fee Recovery (EU)
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MEETING DATE:
November 19, 2025
PREPARED BY:
Melissa Price, Assistant Electric Utility Director
recommendation
RECOMMENDED ACTION:
Set Public Hearing for December 17, 2025 to Consider Introduction of an Ordinance Repealing and Reenacting Lodi Municipal Code Section 13.20.020 - Energy Theft Diversion/Field Services Fee Recovery.
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BACKGROUND INFORMATION:
On December 21, 2011, City Council adopted Ordinance 1855 establishing clear guidelines for the processing and recovery of revenues associated with costs incurred by Lodi Electric Utility (LEU) as a result of utility theft.
Shortly thereafter, City Council adopted Resolution 2012-04 establishing a comprehensive fee recovery schedule specific to the fees established by Ordinance 1855. Electricity services obtained without payment, including but not limited to, shutoff costs, meter tampering, damage to or removal of meter locking devices, energy diversion and/or theft of electric service, results in costs to LEU and its ratepayers which necessitate recovery of those costs from customers carrying out said vandalism and theft.
LEU has reviewed the fees originally included as part of Ordinance 1855 and determined several updates are needed including:
1) Providing clarification to circumstances where fees could apply;
2) Allowing for the assessment of after-hours fees when staff are required to respond to address emergency or safety concerns outside of normal work hours;
3) Establishing dispatch fees should additional assistance be needed by either Metering or Troubleshooting staff to disconnect and/or reconnect electrical service;
4) Adding a fee to recover costs associated with Troubleshooters disconnecting and reconnecting service associated with an increased number of electrical panel upgrade requests due to an uptick over the years in solar installations, construction of Accessory Dwelling Units (ADUs) as well as building and transportation electrification efforts;
5) Labor and material cost increases;
6) Changes to meter types; and
7) Ability to bill customer for unauthorized energy used.
Proposed changes to Ordinance 1855 also include a proposed automatic annual update July 1 of each year by LEU based on actual labor and material costs. A separate resolution with specific fee amounts will be presented to City Council for consideration and approval following adoption of the revised ordinance.
Therefore, staff recommends that Council set a public hearing for December 17, 2025 to consider introduction of an ordinance repealing and reenacting Lodi Municipal Code Section 13.20.020 - Energy Theft Diversion/Field Services Fee Recovery.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Regularly updating fees is crucial for ensuring cost recovery by adjusting for factors like inflation and labor contract adjustments.
FUNDING AVAILABLE:
Not applicable.