HomeMy WebLinkAboutAgenda Report - December 15, 2004 E-09AGENDA [TEM E"I
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt a resolution authorizing the City Manager to allocate Public Benefit
Program funds to create the Lodi Residbntial New Construction PNot "eat
($80,000) (EUD)
MEETING DATE: December 15, 2004
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City
Manager to allocate Public Benefit Program funds to create the Lodi
Residential New Construction Pilot Project ($80,000).
BACKGROUND INFORMATION: The Lodi Residential New Construction Pilot Project has the
potential to impact three hundred (300) new singe -family dwellings
in Lodi. These 300 homes are set to be built, and occupied, during
the calendar year 2005.
This new pilot project (if successful in 2005, Electric Utility staff would be desirous of making the program
a "permanent" element in the residential rebate programs sector) requires mandatory charge and air flow
of the new home's heating and air conditioning system. Participating home builders would require their
selected mechanical contractor complete system load design calculations, room -by -room air flow
designs, as well as the results of the air flow testing (once the mechanical system is installed and the
home is completed).
For the past fourteen months, the City of Lodi Electric Utility has maintained the Lodi House -As -A -System
Inspection Program. This Public Benefits -funded effort was created to assess the efficiency and
effectiveness of the mechanical systems inside existing single-family dwellings. The pilot project will
address only new homes here in Lodi. Approximately 70 percent of the homes tested under the Lodi
House -As -A -System Inspection Program have failed the charge and air flow testing. By incorporating
tighter design standards for new homes now, it is anticipated that in ten or fifteen years, the mechanical
systems will still be operating effectively and efficiently.
To promote the new program, the developers will receive a financial incentive for all homes developed in
their subdivision or project. For each new home that passes the mechanical system charge and air flow
test, the incentive/rebate will be $250 per home. The proposed budget for the Lodi Residential New
Construction Pilot Project is $80,000, funded through the Public Benefits Program. Of that amount,
$5,000 will be utilized for marketing and outreach of the program, and the remaining $75,000 will be
utilized for the developer incentive/rebate element (300 homes X $250.00 = $75,000).
APPROVED:
Janet S eeter, Int rim City Manager
Adopt a r rsolution authorizing the CRy Manager to abocate
Putriic Benefit Program funds to create the Lodi Residential
New Con ucWn Pilot Project_ ($80,000) (EUD)
Deasmber 15, 2004
Page 2 of 2
Electric Utility staff respectfully recommends approval of the Lodi Residential New Construction Pilot
Project as a qualifying component of the City of Lodi Public Benefits Program, under the category of
demand-side management (energy conservation).
FUNDING: 16460 bjic Benefits (Categ : Demand-side Management)
Funding Approval:
Ji Krueger, Finance +rector
Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lochner, Mgr. Customer Service & Programs
ANV/RV rndw
RESOLUTION NO. 2004-276
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ALLOCATE PUBLIC BENEFITS
PROGRAM FUNDS TO CREATE THE LODI RESIDENTIAL
NEW CONSTRUCTION PILOT PROJECT
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, this request for Public Benefits Program funds in the amount of $80,000 is
specifically designed to create a new residential program called the Lodi Residential New
Construction Pilot Project, requiring mandatory charge and air flow of a new home's heating
and air conditioning system. Participating home builders would require their selected
mechanical contractor complete system load design calculations, room -by -room air flow
designs, as well as the results of the air flow testing (once the mechanical system is installed
and the home is completed); and
WHEREAS, this pilot project will address only new homes in Lodi, and by incorporating
tighter design standards for new homes now, it is anticipated that in 10 or 15 years the
mechanical systems will still be operating effectively and efficiently; and
WHEREAS, to promote the new program, the developers will receive a financial
incentive for each new home that passes the mechanical system charge and air flow test; the
incentive/rebate will be $250 per home; and
WHEREAS, the proposed budget for the Lodi Residential New Construction Pilot
Project is $80,000, funded through the Public Benefits Program. Of that amount, $5,000 will be
utilized for marketing and outreach of the program, and the remaining $75,000 will be utilized
for the developer incentive/rebate element for approximately 300 homes in 2005.
WHEREAS, Electric Utility staff recommends approval of the Lodi Residential New
Construction Pilot Project as a qualifying component of the City of Lodi Public Benefits
Program, under the category of demand-side management (energy conservation).
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to provide a Public Benefits Program grant in the amount of
$80,000 to create and fund the Lodi Residential New Construction Pilot Project.
Dated: December 15, 2004
I hereby certfy that Resolution No. 2004-276 was passed and adopted by the Lodi City
Council in a regular meeting held December 15, 2004, 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. BLACKSTON
City Clerk
2004-276