HomeMy WebLinkAboutAgenda Report - December 1, 2004 E-07AGENDA ITEM fta?
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt resolution authorizing the City Manager to amend the existing Lodi
House -As -A -System Inspection Program, by increasing the rebate amount
for air duct replacement from $600 to $1000 (EUD)
MEETING DATE: December 1, 2004
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City
Manager to amend the existing Lodi House -As -A -System Inspection
Program, by increasing the rebate amount for air duct replacement
from $600 to $1000.
BACKGROUND INFORMATION: The Lodi House -AS -A -System Inspection Program was started in
September of 2003. To date, over five hundred (500) residential
customers have participated in this program, which provides a
computer diagnostics test of the customer's heating and air conditioning duct system. The test,
performed by the Electric Utility, measures room -by -room air flow and air return. This testing procedure
(which is only being conducted by one other electric utility in the nation) is the critical first step in
addressing whether the home's central heating and cooling system is designed correctly, and functioning
properly.
Once the computer diagnostics testing is complete, the residential customer is provided with the results
of the test, along with recommendations for improving the system (if identified). The Electric Utility
Department, through the City of Lodi Public Benefits Program, then provides rebates to residential
customers who repair or entirely replace dud work within their home.
The current rebate for duct repair is $300, and for duct system replacement, the rebate is $600. By way
of this Council action, Electric Utility staff is requesting that the rebate amount for duct replacement be
increased to $1000. By increasing the duct replacement rebate, utility staff believes that additional
customers will replace failing or poorly designed duct work in their home. (Note: of the 500 plus tests
performed since September of 2003, less than 20 customers have pursued duct repair or replacement
work, to replace a home's entire dud system, which in many cases is the most appropriate corrective
action, the cost can exceed $4,000 to $5,000. It should also be noted that in excess of 70 percent of the
homes tested in this program so far, have failed. When a home fails the inspection testing, the only
corrective action should be dud replacement, or significant duct repairs.)
Electric Utility staff respectfully recommends approval of this item as a qualifying component of the City of
Lodi Public Benefits Program.
APPROVED:
-;d/--
Jan9f S. Keeter, Interim City Manager
Adopt resolution authorizing the City Manager to amend the existing Lodi House As -A -System Inspection
Program, by increasing the rebate amount for air duct replacement from $600 to $1000 (EUD)
December 1, 2004
Page 2of2
FUNDING: Not applicable (funding is currently available, and budgeted, for customers who
participate in this program)
Funding Approval:
a es R. Krueger, Finan Director
Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lechner, Manager, Customer Service & Programs
ANWRL/Ist
Attachmertts
cc: City Attomey
RESOLUTION NO. 2004-265
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO AMEND THE EXISTING LODI
HOUSE -AS -A -SYSTEM INSPECTION PROGRAM BY
INCREASING THE REBATE AMOUNT FOR AIR DUCT
REPLACEMENT
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 Lodi House -As -A -System Inspection Program was started in
September 2003, providing a computer diagnostics test of the customer's heating and air
conditioning duct system; and
WHEREAS, the test, performed by the Electric Utility, measures room -by -room air flow
and air return and is the critical first step in addressing whether the home's central heating and
cooling system is designed correctly and functioning property; and
WHEREAS, once the computer diagnostics testing is complete, the residential
customer is provided with the results along with recommendations for improving the system if
problems are identified; and
WHEREAS, the Electric Utility Department, through the City of Lodi Public Benefits
Program, then provides rebates to residential customers who repair or entirely replace duct
work within their home; and
WHEREAS, staff recommends amending the Lodi House -As -A -System Inspection
Program by increasing the rebate amount for air duct replacement from $600 to $1,000.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve amending the Lodi House -As -A -System Inspection Program by increasing the rebate
amount for air duct replacement from $600 to $1,000.
Dated: December 1, 2004
I hereby certify that Resolution No. 2004-265 was passed and adopted by the Lodi City
Council in a regular meeting held December 1, 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. BL.ACKSTON
City Clerk
2004-265