HomeMy WebLinkAboutAgenda Report - August 18, 2004 E-09AGENDA ITEM Eel
cyry OF LODI
COUNCIL COMMUNICATION
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AdENDATITLE: Adopt resolution authorizing the City Manager to allocate Public Benefit
Program funds for the Lodi Residential Refrigerator/Freezer Recycling
Program; and authorizing the City Manager to execute a contract with JACO
Environmental, Incorporated to provide removal and recycling services for
Oft program ($40,000) (EUD)
MEETING DATE: August 18, 2004
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City Manager to
allocate $40,000 in Public Benefit Program funds for the Lodi Residential
Refrigerator/Freezer Recycling Program; and authorize the City Manager to
execute a contract with JACO Environmental, Incorporated to provide the
necessary appliance removal and recycling services for this program.
BACKGROUND INFORMATION: The City of Lodi Electric Utility has offered this program on two
previous occasions to the residents of Lodi. Due to the extremely
positive response to both of these efforts, Electric Utility staff is
recommending a third project be implemented that involves the
recycling of aging and inefficient refrigerators and freezers.
The Lodi Residential Refrigerator/Freezer Recycling Program is designed as follows:
> the project will begin September 1, 2004, and be offered for 30 days, or until funds are depleted;
> efigible residential customers must receive their electric utirdy service from the City of Lodi, and be
current on all utility charges;
> customers will receive a rebate in the amount of $25 for one (1) working refrigerator or freezer; the
0Y YdH ampt ngn-mKing mftjoMtore or fteezers (up to two M customer service address);
however, no rebate will be provided to the customer; and
> the City of Lodi Electric Utility will contract with JACO Environmental, Incorporated for all customer
contact, refriger-atorfireezer pick-up, and appropdate disposal.
Note: The City of Lodi Electric Utility utilized JACO Environmental, Incorporated during the previous
refrigeratorMteezer recycling projects. For this aforementioned reason, the City of Lodi Electric Utility
respectfully requests that the Lodi City Council dispense with going out to bid pursuant to Lodi Municipal
Code 3.20.70. By way of this Council action this evening, Council is also authorizing the City Manager
to execute a contract with JACO Environmental, Incorporated to provide the necessary and required
refrigeratorfireezer pick-up, disposal and recycling services.
APPROVED:
JANEYS. KEETEF;� Interim' City Manager
Adopt resolution authorizing the City Manager to allocate Public Benefit Program funds for the Lodi Residential
Refrigerator/Freezer Recycling Program; and authorizing the City Manager to execute a contract with JACO
Environmental, Incorporated to provide removal and recycling services for this program ($40,000)
August 18, 2004
Page 2
JACO Environmental will utilize one company-owned and -*perated truck for the pick-up of refrigerators
and/or freezers for the Lodi project. All used appliances will be taken to a JACO warehouse outside the
Lodi area, where the appropriate dismantling of the appliance for recycling purposes is achieved.
During the previous two projects, over 750 used, energy inefficient refrigeratomffreezers were recycled.
These older appliances* consume, on average, approximately 15 percent more energy during the
course of one year, than the 2004 EnergyStarO-approved refrigerators or manual defrost freezers. In
addition, refrigerators/freezers in excess often years of age cost roughly $15 to $18 per month to
operate -
The total requested budget for this program is $40,000. Of that amount, $6,000 is earmarked for
advertising and promotional purposes, while the remaining $35,000 is designated for customer rebates
and JACO Environmental's fee for services. With this proposed budget, it is anticipated that 250 used
refrigeratorstkeezers can be disposed of and recycled.
The City of Lodi Electric Utility respectfully recommends approval of the Lodi Residential
Refrigerator/Freezer Recycling Program as an approved element of the City of Lodi Public Benefits
Program.
(*An older appliance is defined as one that has been in service for ten years or more.)
FUNDING: 164605- Public Benefits P ram (Category: Demand-iside Management)
Funding Approval: I - —1-11-71-2V2
ames R. Krueg4r, Finance Director
A// d4 -
Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lechner, Manager of Customer Service and Programs
ANV/RLftt
cc: Gfty Afforney
RESOLUTION NO. 2004-163
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ALLOCATE PUBLIC BENEFITS
PROGRAM FUNDS FOR'THE LODI RESIDENTIAL
REFRIGERATOR/FREEZER RECYCLING PROGRAM
AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE
A CONTRACT WITH JACO ENVIRONMENTAL INC., TO PROVIDE
REMOVAL AND RECYCLING SERVICES FOR THIS PROGRAM
WHEREAS, the state has mandated that beginning January 1, 1998, the City of Lodi is
obligated to fund various programs through a Public Benefits Charge (PBC) based on an
historical electric revenue requiremerit; and
WHEREAS, the requirement amounts to approximately $1 million per year that must be
dedicated to qualifying programs such as energy efficiency. A further stipulation is that these
efforts must be done on the customer's side of the meter in order to qualify; and
WHEREAS, the Electric Utility Department respectfully requests that the City Manager
be authorized to allocate Public Benefit Program funds in the amount of $40,000 to fund the -
Lodi Residential Refrigerator/Freezer Recycling Program. The Program is designed as follows:
> the project will begin September 1, 2004, and be offered for 30 days, or until funds
are depleted;
> eligible residenfial customers must receive their electric utility service from the City
of Lodi and be current on all utility charg es;
> customers will receive a rebate in the amount of $25 for one (1) working refrigerator
or freezer; the City will accept non -working refrigerators or freezem (up to two per
customer service address);. however, no rebate will be provided to the customer;
and
> the City of Lodi Electric Utility will contract with JACO Environmental, Incorporated
for all customer contaM refrigerator/freezer pick-up, and appropriate disposal.
WHEREAS, JACO Environmental will utilize one company-owned and -operated
truck for the pick-up of refrigerators and/or freezers for the Lodi project. All used
appliances will be taken to a JAGO warehouse outside the Lodi area, where the
appropriate dismantling of the appliance for recycling purpom i§ achiewd, and
WHEREAS, Lodi Municipal Code §3.20.070 authorizes dispensing with bids for
purchases of supplies, services, or equipment when it is in the best interest of the City to
do so; and
WHEREAS, the City of Lodi Electric Utility utilized JACO Environmental, Inc.
during the previous refrigerator/freezer recycling projects. For this aforementioned
reason, the City of Lodi Electric Utility respectfully requests that the Lodi City Council
dispense with going out to bid pursuant to Lodi Municipal Code 3.20.70; and
WHEREAS, the City of Lodi Electric Utility recommends. approval of funding for the Lodi
Refrigerator/Freezer Environmental Recycling Project as an approved element of the City of
Lodi Public Benefits Program in an amount not to exceed $40,000.00; and
WHEREAS, staff recommends that the City Council authorize the City Manager to
execute a contract with JACO Environmental, Inc. to provide the necessary arid required
ref figerator/f reezer pick -u p, d isposal, and recycling services.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes
the City Manager to allocate Public Benefits Program funds in the amount not to exceed
$40,000 to fund the Lodi Refrigerator/Freezer Environmental Recycling Project; and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute a
contract with JACO Environmental Incorporated to provide removal and recycling services for.
the program; and
BE IT FURTHER RESOLVED that this prNram will begin on September 1, 2004 for a
period of thirty days, or until the funds are exhausted.
Dated: August 18, 2004
= — ------ ---- — --
I hereby certify that Resolution No. 2004-163 was passed and adopted by the Lodi City
Cou nei( in an adjourned regular meeting held August 18, 2004 by the following vote:
AYES: COUNCIL MEMBERS – Beckman, Hitchcock, Howard, Land, and
Mayor Hansen
NOES: COUNCIL MEMBERS – None
ABSENT: COUNCIL MEMBERS – None
ABSTAIN: COUNCIL MEMBERS – None
SUSAN J. BLACKSTON
City Clerk
2004-163