HomeMy WebLinkAboutAgenda Report - August 17, 2005 E-13AGENDA ITEM v 13
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt resolution authorizing the City Manager to allocate $15,844,64 in
Public Benefit Program funds to Cottage Bakery for a demand-side
management project (EUD)
MEETING DATE: August 17, 2005
PREPARED BY: Electric Utility Director
RECONW LADED ACTION: Adopt a resolution authorizing the City Manager to allocate a Public
Benefits Program grant in the amount of $15,844.84 to Cottage
Bakery for a demand-side management project.
BACKGROUND INFORMATION: Cottage Bakery recently launched a facility -wide energy efficiency
enhancement project_ Phase One of the project entailed lighting
improvements throughout the plant. The management of Cottage
Bakery have invested $105,630.93 into their Phase One efforts, and, due to the nature of the
improvements, are eligible for a Public Benefits Program grant (rebate) in the amount of $15,844.64
($105,630.93Y 15% = $15,844.64; the current rebate is 15 percent of the total project cost, which
includes materials and labor costs associated with the project).
Phase One consisted of the following:
A removal of 211 existing 400 -watt low bay metal halide lighting fixtures, and Si existing 400 -watt 2 x
2 metal halide surface mount lighting fixtures;
A install 184, 54 -watt T-5 high efficiency high bay lighting fixtures; 50, 54 -weft T-5 high efficiency
freezer lighting fixtures; 14, 32 -watt T-8 wrap-around fluorescent lighting fixtures with white
reflectors; and, 13, 32 -watt T-8 fluorescent lighting fixtures with white reflectors and metal wire
guards.
The T-5 fluorescent lighting technology is the latest "generation" of fluorescent lighting technology,
designed to replace aging, energy inefficient metal halide and incandescent lighting technology. The T-5
technology has become the number one choice for lighting retrofit projects for large commercial and
industrial customers throughout the country, and is generally installed in warehouse and production
areas. The T-8 fluorescent lighting technology is also an extremely energy efficient technology, and is
commonly Used for lighting retrofit applications installed by retail customers. The projected annual
energy and maintenance savings for this lighting retrofit project to Cottage Bakery is $53,000.00; hence,
the project payback is just under two years (project cost, $105,000 divided by projected savings, $53,000
= 1.98 years). By energy efficiency standards, a demand-side management project with a payback of
four (4) years or less, is considered exee#ent.
Cottage Bakery officials are now developing the second phase of their energy efficiency improvement
project, which may include process line equipment improvements and mechanical system retrofits.
APPROVED: �—
Blair, City Manager
Adopt reeolullon aert KwWng the City Manager to allocate 515.94 64 In Public Benalk Pe ogram funds to Cottage Bakery
for a deniland4de manalliu►+ent project (EIJD)
Auqust It, 2996
Page Z of 2
Electric Utility staff respectfully recommends approval of this rebate as a qualifying component of the City
of Lodi Public Benefits Program, and is categorized as a demand-side management project.
FISCAL WPACT: Public Benefit rebates for large commercial and/or industrial customers have been
budgeted in the 2005-2006 fiscal year Public Benefits Program budget.
FUNDIM AVAILABLE: 164605 — Public Be Program (Category_ Demand-side Management)
R. Krueger, Finance Director
Prepared By:
ANV/RLftt
e: City Attomey
Alan N. Vallow
Electric Utility Director
Rob Lechner, Manager, Customer Service and Programs
RESOLUTION NO. 2005-170
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO PROVIDE A
PUBLIC BENEFITS PROGRAM GRANT — DEMAND-SIDE
MANAGEMENT PROJECT TO COTTAGE BAKERY
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, Cottage Bakery recently launched a facility -wide energy efficiency
enhancement project, and Phase One of the project entailed lighting improvements
throughout the plant; and
WHEREAS, the management of Cottage Bakery have invested $105,630.93 into
its Phase One efforts, and, due to the nature of the improvements, are eligible for a
Public Benefits Program grant (rebate) in the amount of $15,844.64 ($105,630.93 x 15%
= $15,844.64; the current rebate is 15 percent of the total project cost, which includes
materials and labor costs associated with the project); and
WHEREAS, Phase One consisted of the following:
1) removal of 211 existing 400 -watt low -bay metal halide lighting fixtures,
and 51 existing 400 -watt 2 x 2 metal halide surface mount lighting fixtures; and
2) install 184, 54 -watt T-5 high -efficiency high -bay lighting fixtures; 50, 54 -
watt T-5 high -efficiency freezer lighting fixtures; 14, 32 -watt T-8 wrap-around fluorescent
lighting fixtures with white reflectors; and, 13, 32 -watt T-8 fluorescent lighting fixtures with
white reflectors and metal wire guards.
WHEREAS, Electric Utility staff respectfully recommends approval of this rebate
as a qualifying component of the City of Lodi Public Benefits Program, which is
categorized as a demand-side management project.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
authorizes the,City Manager to provide a Public Benefits Program Grant — demand-side
management project to Cottage Bakery in the amount $15,844.64.
Dated: August 17, 2005
I hereby certify that Resolution No. 2005-170 was passed and adopted by the
city Council of the City of Lodi in a regular meeting held August 17, 2005, by the
following vote:
AYES: COUNCIL MEMBERS — Hansen, Hftchcock, Johnson, Mounce,
and Mayor Beckman
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2005-170