AGENDA TITLE:
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Public Hearing to Consider Waiving the First Reading and Introducing Ordinance Revising Lodi Municipal Code, Section 13.20.240 Schedule G1-General Service-Group 1 Commercial/Industrial and Section 13.20.250 Schedule G2-General Service-Group 2 Commercial/Industrial (Community Benefits Incentive Discount) (EU)
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MEETING DATE:
February 18, 2026
PREPARED BY:
Melissa Price, Assistant Electric Utility Director
recommendation
RECOMMENDED ACTION:
Public hearing to consider waiving first reading and introducing ordinance revising Lodi Municipal Code, Section 13.20.240 Schedule G1-General Service-Group 1 Commercial/Industrial and Section 13.20.250 Schedule G2-General Service-Group 2 Commercial/Industrial.
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BACKGROUND INFORMATION:
On October 15, 2025, City Council received a presentation from Lodi Electric Utility (LEU) staff regarding the Community Benefits Incentive Discount (CBID), a 30 percent discount applied to eligible non-profit entity’s monthly electric charges under LEU’s G1 and G2 rate schedules for small commercial entities.
City Council provided direction to LEU to revise applicable sections of the Lodi Municipal Code (LMC) as it relates to both the funding source and eligibility criteria associated with the CBID. This update was necessary as the CBID had not been reviewed since originally approved by the City Council in 1996.
In general, City Council requested that eligibility criteria be both clarified and broadened. Staff are proposing the following revised eligibility criteria be included in the proposed ordinance changes:
1. Removal of the requirement that eligible non-profits must have received Community Development Block Grant Funds within the past two years.
2. Proof of Internal Revenue Service recognized 501 (c)(3) status.
3. Certification that eligible non-profit entity serves low-income populations - defined as at or below 60 percent of median income - or populations residing in a Disadvantaged Community as defined by CalEnviroScreen or similar criteria determined by LEU.
4. Certification that eligible non-profit entity and its principals are not debarred, suspended, or otherwise excluded from participation in federal assistance programs, as verified through SAM.gov.
5. Proof that eligible non-profit entity is in good standing with the California Secretary of State.
Customers receiving the discount will also be subject to an annual eligibility review, consistent with other discount programs.
In addition, LEU will no longer fund the discount from operations but rather Public Benefits Funding designated for low-income assistance programs.
On October 27, 2025, LEU sent a letter to all customers currently receiving the CBID informing them of the proposed changes and providing them information on how they might provide comment as part of the public hearing process. None of these customers have contacted LEU as of the date of preparation of this agenda item.
FISCAL IMPACT:
The total annual CBID is less than $30,000 for 14 customer accounts. Expansion of the benefit will depend on the number of eligible non-profit entities who qualify under the new criteria.
FUNDING AVAILABLE:
LEU maintains sufficient fund balance in its Public Benefits Fund 504 to support low-income programs.