HomeMy WebLinkAboutAgenda Report - December 15, 2004 E-12AGENDA ITEM E711
Aghk CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt a resolution authorizing the City Manager to execute an electric utility
rate contract between the City of Lodi and the Robert Mondavi Corporation
for a new electric forklift charging station pilot project (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 execute an electric utility rate contract between the City
of Lodi and the Robert Mondavi Corporation for a new electric forklift
charging station pilot project.
BACKGROUND INFORMATION: The Robert Mondavi Corporation is in the process of replacing
twenty-five (25) propanelgas fired fork lifts at their Lodi Global
Logistics & Distribution Center (the 450,000 square foot facility is
located at 770 N. Guild Avenue, Lodi). In place of these propane/gas fork lifts, Mondavi is purchasing 25
rechargeable, battery-operated fork lifts. Thus far, Mondavi representatives have purchasedfreplaced
thirteen of the old propane -fired fork lifts at the Guild Avenue site.
In an effort to promote and encourage the purchase of the clean -burning, highly efficient battery-operated
fork lifts, the City of Lodi Electric Utility has developed a pilot electric utility rate. The proposed utility rate
offers a rate break or incentive to the Robert Mondavi Corporation for charging the electric, battery-
operated fork lifts after normal business hours. The actual rate that would be charged 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 would
apply (when you total the winter and summer peak, partial peak and off-peak energy charges, the
"average" or melded G-4 electric utility rate is $0.0820 per kilowatt hour, not including any demand
charges).
The proposed rate contract would be in effect for three years, commencing January 1, 2005.
In addition to the environmental benefits associated with the operation of the battery-operated fork lifts,
the Electric Utility also has a derived benefit. By recharging the fork lifts after hours (between 9:30pm
and 8:30am), the utility reduces system wide peak energy usage, which historically occurs during the late
morning, afternoon and early evening hours. By reducing peak energy use/demand, the utility is able to
reduce the amount of the more costly energy purchased at peak times.
Electric Utility staff is confident that this pilot project will also serve as a demonstration site for other major
customers interested in utilizing electric, rechargeable fork lifts at their facilities. The City of Lodi Electric
Utility respectfully recommends approval of this pilot electric utility rate, specifically designed for the
APPROVED:
Janet . Keeler, Interim City Manager
Adopt a resolution authorizing the City Mlenager to execute
an electric utility rate contract between the City of Lodi and
the Robert Mondevi Corpmition for a naw elecfiis fortdift
charging $talion pilot project. (EUD)
December 15, 2004
Page 2 of 2
Robert Mondavi Corporation to recharge electric, battery-operated fork lifts at their Lodi Global Logistics
& Distribution Center.
FUNDING: Not applicable.
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Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lochner, Mgr. of Customer Service & Programs
ANVlRL lmdw
RESOLUTION NO. 2004-279
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY
MANAGER TO EXECUTE ELECTRIC UTILITY RATE CONTRACT BETWEEN
THE CITY OF LODI AND THE ROBERT MONDAVI CORPORATION FOR A
NEW ELECTRIC FORKLIFT CHARGING STATION PILOT PROJECT
WHEREAS, the Robert Mondavi Corporation is in the process of replacing twenty-five (25)
propane/gas fired forklifts at its Lodi Global Logistics & Distribution Center located at 770 N. Guild Avenue
in Lodi, California; and
WHEREAS, in place of these propane/gas forklifts, Mondavi is purchasing 25 rechargeable,
battery-operated forklifts, and to date Mondavi representatives have purchased/replaced thirteen (13) of
the old propane -fired forklifts at the Guild Avenue site; and
WHEREAS, in an effort to promote and encourage the purchase of the clean -burning, highly
efficient battery-operated forklifts, the City of Lodi Electric Utility has developed a pilot electric utility rate
that offers a rate break or incentive to the Robert Mondavi Corporation for charging the electric, battery-
operated forklifts atter normal business hours; and
WHEREAS, the actual rate that would be charged 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, with the Rate Contract in effect for three years commencing January 1, 2005; and
WHEREAS, for all other time periods, the published G-4 electric utility rate would apply (when
totaling the winter and summer peak, partial peak, and off-peak energy charges, the "average" or melded
G-4 electric utility rate is $0.0820 per kilowatt hour, not including any demand charges); and
WHEREAS, in addition to the environmental benefits associated with the operation of the battery-
operated forklifts, the Electric Utility also derives benefit by reducing system wide peak energy usage,
which historically occurs during the late morning, afternoon, and early evening hours. By reducing peak
energy use/demand, the utility is able to reduce the amount of the more costly energy purchased at peak
times; and
WHEREAS, the City of Lodi Electric Utility respectfully recommends approval of this pilot electric
utility rate, specifically designed for the Robert Mondavi Corporation to recharge electric, battery-operated
forklifts at its Lodi Global Logistics & Distribution Center.
NOW, THERFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the City
Manager to execute an Electric Utility Rate Contract between the City of Lodi and the Robert Mondavi
Corporation for a new electric forklift charging station pilot project.
Dated: December 15, 2004
I hereby certify that Resolution No. 2004-279 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. BLACKS N
City Clerk
2004-279