Agenda Report - August 17, 2005 E-12AGENDA ITEM Cowoll
4DCITY OF LQDI
COUNCIL COMMUNICATION
Im
AGENDA TITLE: Adopt resolution audmwizing the City Manager to amend the existing electric
utility tate contract bebmw the City of Lodi and Constellation wines
(formerly the Robert Mondavi Corporation) for the electric fork OR charging
station pilot project (EUD)
MEETING DATE: August 17, 2006
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to amend the
existing electric utility rate contract between the City of Lodi and
Constellation Wines (formerly the Robert Mondavi Corporation) for
the electric fork lift charging station pilot project.
BACKGROUND INFORMATION: In December of 2004, the Lodi City Council approved an electric
utility rate contract between the City of Lodi and the Robert Mondavi
Corporation. The utility rate contract provides this customer with an
incentive to charge their fleet of electric, battery-operated fork lifts after normal business hours. The
contract was developed to encourage major customers to purchase and utilize clean-buming, highly
efficient battery-operated forklifts in various Lodi plant operations.
Electric Utility staff is requesting to amend the original contract to reflect the following:
remove the customer name 'Robert Mondavi Corporation,' and replace with the name "Constellation
Wines;' the Robert Mondavi Corporation consolidated operations with Constellation Wines earlier
this year;
amend the original contract life of January 1, 2005 to December 31, 2007, to September 1, 2005 to
August 30, 2008- a three year contract; due to unforeseen circumstances, the required electric utility
mater for this special project was not delivered by the manufacturer to the City of Lodi Electric Utility
Department until late July of this year (the meter allows the utility to read electric usage data via
telephone line communications, and download the data into a computer program for billing
purposes)
The customer will still receive the benefits of the reduced electric utility energy charge for "charging"
their electric forklifts after normal business hours. In this particular case, the incentive electric utility rate
is $0.0685 per kilowatt-hour of energy consumed between the hours of 9:30pm and 8:30am, Monday
through Friday, weekends and holidays included. For all other time periods, the published G-4 electric
utility rate will apply.
Electric Utility respectfully requests approval of the aforementioned amendments to this electric utility
rate contract.
APPROVED: r
Blair Ki ity Manager
Adapt r.eoiudan aialha1ing the City Manager to amend the p vhctdc udNty raft contract between the City of
Lodi and Cw>•i Wftn VOnes (bnnedy the Robert Mondani Carpom*m j for the electric fork Lift charging ataon pkat
prat (IRJD)
August 17, 2066
Page 2 of 2
FISCAL IMPACT: The fiscal impact, or revenue loss, to the City of Lodi, is approximately
$500 per month. Electric Utility staff will have a more exact revenue impact
number after the new electric utility meter has collected energy usage data
over the ensuing sixty to ninety days.
FUMING AVAILABLE: Not applicable.
/Id," -
Alan N. Vallow
Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Servioe and Programs
ANWRLAst
C: City Attomey
RESOLUTION NO. 2005-169
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO AMEND THE EXISTING ELECTRIC UTILITY
RATE CONTRACT BETWEEN THE CITY OF LODI AND
CONSTELLATION WINES (FORMERLY THE ROBERT MONDAVI
CORPORATION) FOR THE ELECTRIC FORKLIFT CHARGING
STATION PILOT PROJECT
WHEREAS, in December of 2004, the Lodi City Council approved an electric utility rate
contract between the City of Lodi and the Robert Mondavi Corporation, and
WHEREAS, the utility rate contract provides this customer with an incentive to charge its
fleet of electric, battery-operated fork lifts after normal business hours. The contract was
developed to encourage major customers to purchase and utilize clean -burning, highly efficient,
battery-operated forklifts in various Lodi plant operations; and
WHEREAS, staff requests an amendment to the original contract to reflect the following:
1) remove the customer name "Robert Mondavi Corporation," and replace with the
name "Constellation Wines"; the Robert Mondavi Corporation consolidated operations with
Constellation Wines earlier this year; and
2) amend the original contract life of January 1, 2005 to December 31, 2007, to
September 1, 2005 to August 30, 2008, a three-year contract; due to unforeseen
circumstances, the required electric utility meter for this special project was not delivered by
the manufacturer to the City of Lodi Electric Utility Department until late July of this year (the
meter allows the utility to read electric usage data via telephone line communications and
download the data into a computer program for billing purposes).
NOW, THERFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the
City Manager to execute an Amendment to the Electric Utility Rate Contract between the City of
Lodi and Constellation Wines (formerly Robert Mondavi Corporation) for the electric forklift
charging station pilot project.
Dated: August 17, 2005
I hereby certify that Resolution No. 2005-169 was passed and adopted by the Lodi City
Council in a regular meeting held August 17, 2005, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and
Mayor Beckman
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLAC TON
City Clerk