HomeMy WebLinkAboutAgenda Report - February 15, 2006 E-08AGENDA ITEM Coo: ` 1k
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt resolution authorizing the City Managerto allocate two Public Benefit
Program rebates to the following commerciallindustrial customers for
demand-side management projects: Ross Stores, Incorporated ($'6,184.80)
and Scientific Specialties, Incorporated ($25,000) (EUD)
MEETING DATE: February 15,2006
PREPARED B Y Electric Utility Director
RECOMMENDED ACTION: That the Lodi City Council adopt a resolution authorizing the City
Managerto allocate two Public Benefit Program rebates to Ross
Stores, Incorporated ($15,184.80). and to Scientific Specialties,
Incorporated ($25,000)for demand-side management projects.
BACKGROUND INFORMATION: During each quarter of a fiscal year, three (3) large
commerciallindustrial customer rebates are eligible for funding via
the City of Lodi Public Benefits Program. The recommended
rebatesto Ross Stores, Incorporatedand Scientific Specialties, Incorporatedare the second and third
large rebates of this third quarter of the 2005-2006 fiscal year.
The rebatesfor large commercial/industrial customers are provided on a first-come, first-served basis.
The current formula providesfor a 15 percent rebate (the 15 percent rebate is for the total purchased and
installed cost of the approved energy efficiency measure or measures) of a total demand-side
management or energy conservation project, capped at $25,000. The following is a description of the
two qualifying projects:
Ross Stores. Incorporated -this large commercial enterprise is eligiblefor a rebate in the
amount of $15,184.80 for the installation of a "cool or white" roof. The new, white roof
coating applied at the Ross Store here in Lodi (340W. Kettleman Lane) is a qualifying
component of the City of Lodi Public Benefits Program, and is a recognized energy
efficiency improvement by EnergyStar®, the California Energy Commission, and electric
utility/service providers around the country. A cool or white roof typically reduces "heat
gain" (from the sun) through a roof and attic space by approximately 20 degrees,
creating a cooler environment inside the structure. A cooler interior structure reduces
the need for operating a central air conditioning system, thus reduced electric energy
consumption. Just over 35.000 square feet of roof space has been covered with a sun -
reflective, white roofing material. The projected annual energy savings are 5,636
kilowatt hours (kWh) of energy, and 4.7 kilowatts (kW/demand) for the facility.
Scientific Specialties, Incomorated-this industrial customer is eligiblefor a rebate in the
amount of $25,000 (maximum allowed underthe current program guidelines) for
pursuing the next phase of a facility -wide energy conservation plan. In late 2004, facility
APPROVED.
Blair Ki , City Manager
Adopt resolution authorizing the City Managerto allocatetwo Public Benefii Program rebatesto the following
commercialrindustrial customers for demand-side management projects: Ross Stores, Incorporated($15,184.80)and
Scientific Specialties, Incorporated ($25,000)(EUD)
February 15.2006
Page 2 of 2
engineers at Scientific Specialties began the process of replacing inefficient and aging
plastic injection molding machines. in the past few months, the company has purchased
three (3) additional high efficiency molding machines, and removed three older pieces of
equipment. The machines purchased- Arburg Allrounder 420 A plastic injection molding
machines- are all electric machines. The three new units are equipped with multiple
speeds, and an "idle" mode, which allows operators to vary the speed or shut the
machine down during non -production time. This variable speed capability, coupled with
equipment engineering improvements, lead to operator flexibility and reduced energy
consumption (the three replaced units were all hydraulic units, and were designed to
operate at full capacity, virtually non-stop during production hours). Based upon a data -
logger utilizedto compare energy consumption between a new injection molding
machine and one of the old, replaced units at Scientific Specialties, the average daily
energy savings will be 125 kWh and 5 kW per machine. For an average twenty day
work month, the energy savings will be in excess of 7,500 kWh per month.
ElectricUtility staff respectfully recommends approval of these Public Benefits Program rebates as
qualifying components of the C i of Lodi Public Benefits Program, in the category of demand-side
management or energy conservation.
FISCAL IMPACT: As a result of the Ross Stores, Incorporated project, the fiscal impactwill be
approximately $750 per year; the fiscal impact of the Scientific Specialties, Incorporated project will be
approximately $10,100 per year (both of these savings numbers are conservative).
FUNDING AVAILABLE: PublicBenefrts-164605(C gory: Demand-side Management)
�2.
Ruby Pa' , Interim Finance Director
'a.
A -
i
dea rge F. Morrow
Electric Utility Director
Prepared By: Rob Lochner. Manager Customer Service and Programs
G FM/R LAst
c: City Attorney
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ALLOCATE PUBLIC BENEFIT PROGRAM
REBATESTO COMM ERCIAL/tNDUSTRIAL CUSTOMERS, ROSS
STORES, INC. AND SCIENTIFIC SPECIALTIES, INC. FOR
DEMAND-SIDE MANAGEMENT PROJECTS
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, during each quarter of a fiscal year, three large
commercial/industrial customer rebates are eligible for funding via the City of Lodi Public
Benefits Program; and
WHEREAS, the recommended rebates to Ross Stores, Inc. and Scientific
Specialties, Inc, are the second and third large rebates of this third quarter of the
2005-06 fiscal year. The current formula provides for a 15 percent rebate of a total
demand-side management or energy conservation project, capped at $25,000. The
following is a description of the two qualifying projects:
➢ Ross Stores, Inc. This large commercial enterprise is eligible for a rebate
in the amount of $15,184.80 for the installation of a "cool or white" roof.
The new white roof coating applied at the Ross Store in Lodi (340 W.
Kettleman Lane) is a qualifying component of the City of Lodi Public
Benefits Program and is a recognized energy efficiency improvement by
EnergyStarO, the California Energy Commission, and electric utility/service
providers around the country. A cool or white roof typically reduces "heat
gain" (from the sun) through a roof and attic space by approximately 20
degrees, creating a cooler environment inside the structure. A cooler
interior structure reduces the need for operating a central air-conditioning
system, thus reduced electric energy consumption. Just over 35,000
square feet of roof space has been covered with a sun -reflective, white
roofing material. The projected annual energy savings are 5,636 kilowatt
hours (kWh) of energy, and 4.7 kilowatts (kW/demand) for the facility.
➢ Scientific Specialties, Inc. This industrial customer is eligible for a rebate in
the amount of $25,000 (maximum allowed under the current program
guidelines) for pursuing the next phase of a facility -wide energy
conservation plan. In late 2004, facility engineers at Scientific Specialties
began the process of replacing inefficient and aging plastic injection
molding machines. In the past few months, the company has purchased
three additional high -efficiency molding machines and removed three older
pieces of equipment. The machines purchased (Arburg Allrounder 420 A
plastic injection molding machines) are all electric machines. The three
new units are equipped with multiple speeds and an "idle" mode, which
allows operators to vary the speed or shut the machine down during non-
production time. This variable speed capability, coupled with equipment
engineering improvements, lead to operator flexibility and reduced energy
consumption (the three replaced units were all hydraulic units and were
designed to operate at full capacity, virtually non-stop during production
hours). Based upon a data -logger utilized to compare energy consumption
between a new injection molding machine and one of the old, replaced
units at Scientific Specialties, the average daily energy savings will be 125
kWh and 5 kW per machine. For an average twenty day work month, the
energy savings will be in excess of 7,500 kWh per month.
WHEREAS, staff respectfully recommends approval of these Public Benefits
Program rebates as qualifying components of the City of Lodi Public Benefits Program,
in the category of demand-side management or energy conservation.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
authorizes the City Manager to allocate Public Benefit Program Rebates to
commercial/industrial customers, Ross Stores, Incorporated in the amount of
$15,184.80, and Scientific Specialties, Incorporated in the amount of $25,000 for
demand-side management projects.
Dated: February 15,2006
hereby certify that Resolution No. 2006-28 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 15, 2006, by the following
vote:
AYES: COUNCIL MEMBERS—Beckman, Hansen, Johnson, Mounce,
and Mayor Hitchcock
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS— None
SUSAN J. BLACKSTON
City Clerk
2006-28