Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO TEMPORARILY EXTEND THE TERM OF THE PREVIOUSLY AUTHORIZED AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH THE ALLSTATE INSURANCE COMPANY.
Brief Description: In 2019 City Council approved the third amendment to the 2012 development agreement with the Allstate Insurance Company located on Executive Parkway in Hudson Ohio. The third amendment provided for a two (2) year economic development electric rate extension that commenced on June 30, 2019 and is set to terminate on July 1, 2021. Staff recommends a temporary extension of the termination date of the third amendment until September 1, 2021 to give City Council ample time to review and discuss the 2021 HPP Rate and Cost of Service Study.
Body
Legislative History
Resolution No. 12-104 authorizing a development agreement with Allstate Insurance Company for 2012-2015.
Resolution No. 15-74 authorizing the extension of development agreement and establishing the current “E” rate for the Allstate Insurance Company for 2015-2017 (1st amendment).
Resolution No. 17-48 authorizing the second extension of the development agreement and establishing the current “E” rate for the Allstate Insurance Company for 2017-2019 (2nd Amendment).
Resolution No. 19-66 authorizing the third extension of the development agreement and establishing the current “E” rate for the Allstate Insurance Company for 2019-2021 (3rd Amendment).
Purpose & Explanation
The current “E” electric rate agreement with the Allstate Insurance Company is a flat rate of $0.075 per kWh. The term of the current rate agreement extension will expire on July 1, 2021. Typically, at the closing of each “E” rate extension period, staff reviews the terms and conditions of the current agreement with Allstate representatives to determine if the terms and conditions continue to be met. Staff subsequently reports back to City Council with a review summary and recommendation.
Hudson Public Power is currently conducting the 5-year Rate and Cost of Service Study. Staff and the Consultant are scheduled to return to City Council at the July 13, 2021 Council meeting to review the findings and recommendations of the study.
As the current Allstate “E” rate agreement expires before Council will review the Rate and Cost of Service Study, staff recommends the rate be extended until September 1, 2021 to give Council sufficient time to review and discuss the study results to make a fully informed decision regarding the future rate(s).
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
Other - Economic Development Agreement
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes [if so, explain why]
X No
Recommendation
Suggested Action
Staff recommends that City Council approve the resolution authorizing the City Manager to extend the current development electric rate agreement (schedule “E” rate) with the Allstate Insurance Company, an Illinois Company, (“Allstate”) with its principal place of business located at 2775 Sanders Road Northbrook, Il. 60062, until September 1st 2021.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Asst. City Manager-Operations