HomeMy WebLinkAboutAgenda Report - October 6, 2004 E-14AGENDA ITEM E• 14
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt rssokition authorizing the City Manager to ailiocate a Public Benefit
Program grant to Quashnick Tool Corporation for a demand-side
management project ($13,225.06) (EUD)
MEETING DATE: October f, 2004
PREPARED BY: Electric UdUty Director
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City
Manager to allocate a Public Benefits Program grant in the amount
of $13,225.06 to Quashnick Tool Corporation for a demand-side
management project.
BACKGROUND INFORMATION: In recent years, Quashnick Tool Corporation, located at 401 S. Main
Street, has embarked upon a facility wide demand-side
management improvement process. This effort involves the
replacement of various pieces of heavy manufacturing equipment (primarily plastic injection molding
machines), as well as investing in energy efficient computer equipment, and potentially replacing the
facilities aging, inefficient fighting system. (Note: Quashnick Tool Corporation representatives are
considering utilizing the Public Benefits Program grant to continue their effort of modemizing the plant,
increasing productivity and reducing energy consumption).
This particular Public Benefits Program grant of $13,225.06 reflects the standard fifteen (15) percent
rebate or grant provided to large commercial or industrial customers that install high efficiency
equipment. Representatives of Quashnick Tool Corporation have replaced two 20 -year -ofd plastic
injection -molding machines (a 75 -ton unit and a 200 -ton unit), that were hydraulic, reciprocating
machines, and have purchased and installed a new, electric injection -molding machine (the Nissei
NEX2000, 125 -ton unit).
This new unit consumes approximately seventy-five (75) percent Ion electricity than the two previous
injection molding machines (the old, inefficient hydraulic units were designed to operate at full capacity,
virtually non-stop during production hours; the new, electric Nissei NEX2000 has a three -speed
capability, along with an sidle" mode, allowing Quashnick Tool operators to vary the speed or simply shut
the machine down during non -production time. The variable speed capability, along with the "idle" mode
function, lead to reduced energy consumption, while increasing the operator's flexibility during
manufacturing hours).
Electric Utility staff respectfully recommends approval of this Public Benefits grant as a qualifying
component of the City of Lodi Public Benefits Program, in the category of demand-side management or
energy conservation.
FUNDING: 164605 — Public Benefiits Prog (Category: Demand-side Management)
FundhV Approval;
J* R. Krueger, Mance Director
Vallow
Electric Utility Director
PWARED BY; Rob Lechner, Manager of Customer Service & Programs
ANWRLAM
cc: Cly Attamey
RESOLUTION NO. 2004-202
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO PROVIDE A PUBLIC BENEFITS PROGRAM
GRANT - DEMAND-SIDE MANAGEMENT PROJECT TO
QUASHNICK TOOL CORPORATION
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 requirement; 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 City of Lodi's Public Benefits Program is comprised of four segments
or customer groups: commercial/industrial, residential, community/non-profit, and municipal;
and
WHEREAS, the Electric Utility Department recommends that the City provide a
Public Benefits grant in the amount of $13,225.06, which reflects the standard 15% rebate or
grant, for the replacement of two 20 -year-old plastic injection -molding machines (a 75 -ton
unit and a 200 -ton unit) that were hydraulic, reciprocating machines with an electric injection -
molding machine (the Nissei NEX2000, 125 -tan unit); and
WHEREAS, the new unit consumes approximately 75% less electricity than the two
previous injection molding machines. The old, inefficient hydraulic units were designed to
operate at full capacity, virtually non-stop during production hours; the new, electric Nissei
NEX2000 has a three -speed capability, along with an "idle" mode, allowing Quashnick Tool
operators to vary the speed or simply shut the machine down during non -production time.
The variable speed capability, along with the "idle" mode function, lead to reduced energy
consumption, while increasing the operator's flexibility during manufacturing hours.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes
the City Manager to provide a Public Benefits Program Grant in the amount of $13,225.06 to
Quashnick Tool Corporation to fund a demand-side management project as set out above.
Dated: October 6, 2004
- I hereby certify that Resolution No. 2004-202 was passed and adopted by the Lodi
City Council in a regular meeting held October 6, 2004, by the following vote:
AYES: COUNCIL MEMBERS - Beckman, Hitchcock, and Howard
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - Land and Mayor Hansen
ABSTAIN: COUNCIL MEMBERS - None
SUSAN J. BLACKSTON
City Clerk
2004-202