HomeMy WebLinkAboutAgenda Report - June 17, 2009 K-02AGENDA ITEM V%402ft
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizi ng the City Managerto Allocate $169,800 in Public
Benefit Program Funds for Five Programs and to Execute Contracts with Five
Entities to Assist in Managing Programs (EUD)
MEETING DATE: June 17,2009
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Managerto allocate
$169,800 from the Lodi Public Benefits Program fund for five
programs, and to execute contracts with five entities to assist in
managing these various programs.
BACKGROUND INFORMATION: Under California law, all electric service providers in the state must
maintain a Public Benefits Program, incorporating four major
elements: 1) assistancefor low-income customers, 2) renewable
energy resources and technologies, 3) demand-side management/energy efficiency, and 4) energy
research.
For Fiscal Year 2009/10, Electric Utility staff recommends the City Council approve the following five
Public Benefits programs and projects to meet the state requirements:
1) Resource Action Programs of Modesto to assist in implementing the Lodi LivingWise
Program ($20,000).
2) The Rahus Institute of Martinezto assist in implementing the Lodi Solar Schoolhouse Project
($10,000).
3) APOGEE Interactiveto provide on-line services for the Lodi EnergyAudit Program ($19,800).
4) The Lodi Salvation Army to assist in administering Lodi CARE Package Program ($50,000,
including $7,000 administrative expense).
5) San Joaquin CountyHuman ServicesAgency to administer the Lodi Low -Income Refrigerator
Trade -In Program $70,000).
Lodi LivingWise Program ($20,000): Some 2,900 Lodi students and their families have participated in
this program since 2003. The program provides students and educators at Lodi area schools with a
useful tool that demonstrates energy and water conservation. Students receive energy efficiency kits and
ResourceAction Programs produces a school -by -school report of efficiency savings.
For the 2009-2010 school year, Lodi Electric Utility staff is once again proposing to provide 417 energy
and water conservation kits to sixth -grade students throughout Lodi. Each kit contains a compact
fluorescent lamp, an Electro luminescent (energy efficient) Night Light, a low-flowshowerhead, faucet
aerators, a water leak test for toilets, tips on energy/water conservation, specific ways to
weatherize/insulate the home, and more. Once the kits are delivered to the classroom, and the teacher
APPROVED:
Blair King, City M nager
Adopt Resolution Authorizing the City Managerto Allocate a Combined $169,800 in Public Benefit Program Fundsfor Five (5)
Programs and to Execute Contractswith Five (5) Different Entitiesto Assist in Managing Programs (EUD)
June 17,2009
Page 2 of 3
has received their training packet, students are instructed on how/why to implement the contents of the
kit at their home. After the students have installed the contents of their kit at home, an assessment is
produced by Resource Action Programs staff to determine projected energy and water savings
associated with the installation of the various energy/water conservation measures.
Lodi Solar Schoolhouse Project ($10,000); Since 2002, more than 1,500 Lodi students have been
involved in one aspect or another of this project. The Lodi Solar Schoolhouse Project is aimed at
educating students in grades 3 through 12 regardingthe importance of renewable energy resources, like
the sun and wind, and the critical role these energy resources will most likely have on their future.
The Lodi Solar Schoolhouse Project will have several key elements, including: 2nd Annual Solar
Schoolhouse Discovery Day, the Solar Schoolhouse Summer Institute (provides funding for two Lodi
educators to attend a week-long renewable energy resource training camp), presentations on clean
energy at the Lodi Energy Smart Workshop events, and delivery of the DVD/book entitled 'Teaching
Solar to area educators. In addition, The Rahus Institute staff will provide in -classroom presentations
where requested, as well as ongoing consulting services to Lodi Electric Utility staff regarding solar and
wind energy issues.
Lodi On -Line Energy Audit Program ($19,800): Lodi Electric Utility offers both onsite and online
energy audits for residential customers (onsite audits are also provided for small and medium-sized
commercial customers). The online service, known as the HomeEnergySuite, is provided by the firm
APOGEE Interactive. The online tool — available at www.lodielecbic.com — provides customers access to
lighting and appliance calculators to help them understand where their energy dollars are going, an
educational 'Kids Komer' and an energy conservation reference library. About 50 to 75 customers per
month utilize this free service. New for FY 2009/10 is a small business online energy audit program.
Lodi CARE Package Program ($50,000): Since late 2004, the City of Lodi has provided 939 grants to
help Lodi families pay their monthly utility bills. Only those customerswho earn 20 percent less than the
maximum Lodi SHARE (low-incomediscountprogram) guidelines are eligible. The Lodi CARE Package
Program will provide a relief payment of up to $125 every six months for eligible customers.
Overall, Lodi Electric Utilitywill provide $43,000 in relief payments for the electricity portion of qualifying
customers' bills in FY 2009/10. This program is managed by the Lodi Salvation Army, which charges $20
per customer assessment, with an annual maximum of $7,000. Exhibits A and B provide guidelines and
benefits. In addition, Waste Management is providing $5,000 in relief paymentsto eligible customersfor
the solid waste portion of their bills. Maximum payment is $25 per customer every six months.
Lodi Low -Income RefrigeratorTrade-In Program ($70,000): This is a new program for FY 2009/10.
The Public Benefit Program funds are earmarked for the purchase and installation of high -efficiency
(EnergyStar) refrigeratorsfor low-income residential families in Lodi. Trained staff from the San Joaquin
County Human Services Agency will provide various in-home energy conservation weatherization
services, and determine if the family qualifies for a new, energy-efficient refrigerator. Approximately 85
energy-efficient refrigerators will be available for those families identified through this program during FY
2009/10. The weatherization services provided by the San Joaquin County HSA include the installation of
attic insulation, door sweeps, weather-stripping, and other materials as needed to ensure the
conservation of energy year-round. These services are provided at no cost to the customer.
Four of these entities have provided excellent service to the City of Lodi, while the fifth (San Joaquin
County Human Services Agency) has performed low-income weatherization services for numerous
years. As a result, the Electric Utility Department requeststhe Lodi City Council authorize the City
Manager to execute professional service contracts with these entities for FY 2009/10.
Adopt ResolutionAuthorizing the City Managerto Allocate a Combined $169,800 in Public Benefit Program Fundsfor Five (5)
Programs and to Execute Contracts with Five (5) Different Entities to Assist in Managing Programs (EUD)
June 17,2009
Page 3 of 3
FUNDING: 164605— Public Benefits (Demand-side Management)- $39,800
164606— Public Benefits (Low-income Customer Assistance) - $70,000
164608 — Public Benefits (Renewable Energy Resources) - $10,000
164609 — Public Benefits (Lodi CARE Package Program) - $50,000
Jordan Ayersff
Deputy City Manager/internallervices Director
Georg F. M rrow
Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Service and Programs
RESOLUTION NO. 2009-90
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING PUBLIC BENEFIT PROGRAMS AND
FURTHER AUTHORIZING THE CITY MANAGER TO
EXECUTE NECESSARY PROFESSIONAL SERVICES
AGREEMENTS
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the following Public Benefit Programs as shown on the project descriptions
marked ExhibitA attached hereto:
1 ) Lodi LivingWise Program - $20,000
2) Lodi Solar Schoolhouse Project - $10,000
3) Lodi On -Line EnergyAudit Program- $19,800
4) Lodi CARE Package Program- $50,000
5) Lodi Low -Income Refrigerator Trade -In Program - $70,000
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and
directed to execute professional services agreements required for each Public Benefit
Program as outlined in ExhibitA attached.
Dated: June 17, 2009
hereby certify that Resolution No. 2009-90 was passed and adopted by the City
Council cf the City of Lodi in a regular meeting held June 17, 2009, by the following
Vote:
AYES: COUNCIL MEMBERS—Johnson, Mounce, and Mayor Hansen
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— Hitchcock and Katzakian
ABSTAIN: COUNCIL MEMBERS— None
Q1I1I'IsI11
EXHIBIT A
1. Lodi LivinmWise Program: Some 2,900 Lodi students and their families have
participated in this program since 2003. The program provides students and educators at
Lodi area schools with a useful tool that demonstrates energy and water Conservation.
The budget for the 2009-2010 school year (Lodi fiscal year) is $20,000. The funds
allocated are paid to Resource Action Programs of Modesto, California. This firm
provides the energy efficiency kits (please see next paragraph) to the classrooms,
schedules delivery of said kits to meet the individual teacher timeframes and produces a
school-by-schoolreport of efficiency savings once the program year is complete.
For the 2009-2010 school year, Lodi Electric Utility staff is once again proposing to
provide 417 energy and water conservation kits to 6th grade students throughout Lodi.
Each kit contains a compact fluorescent lamp, an Electro luminescent (energy efficient)
Night Light, a low -flow showerhead, faucet aerators, a water leak test for toilets, tips on
energy/water conservation, specific ways to weatherize/insulate the home, and more.
Once the kits are delivered to the classroom, and the teacher has received their training
packet, students are instructed on how/why to implement the contents of the kit at their
home. There are pre -installation and post -installation course discussions that are provided
to the instructors to ensure that the students are fully engaged in the project. After the
students have installed the contents of their kit at home, an assessment is produced by
Resource Action Programs staff to determine projected energy and water savings
associated with the installation of the various energy/water conservation measures. To
"kick-off' the project, an Electric Utility staff member will attempt to visit each
classroom to reinforce the significance of the project and discuss the importance of
energy/water conservation.
While the project educates students on the importance of energy/water conservation, it
also complements the energy education curriculum mandated by the State of California
for all 4t through 6th grade students. Teacher feedback continues to indicate that our
program is an excellent "fit" for portions of their math, science and or energy education
curriculum. The Lodi Living Wise Program was implemented in fifteen (15) sixth -grade
classrooms throughout the community during the 2008-2009 school year. The budget
and contract with Resource Action Programs is $20,000.
2. Lodi Solar Schoolhouse Project: Since 2002, over 1,500 Lodi students have been
involved in one aspect or another of thisproject. The Lodi Solar Schoolhouse Project is
aimed at educating students in grades 3`d through 12th regarding the importance of
renewable energy resources, like the sun and wind, and the critical role these energy
resources will most likely have on their future.
To assist in implementing this program, Electric Utility staff will again utilize the
professional services of The Rahus Institute, a not-for-profit organization based in
Martinez, California. For the 2009-2010 school year (and Lodi fiscal year), the Lodi
Solar Schoolhouse Project will have several key elements, including: 2nd Annual Solar
Schoolhouse Discovery Day, the Solar Schoolhouse Summer Institute (provides funding
PA
for two Lodi educators to attend a week-long renewable energy resource training camp),
presentations on clean energy at the Lodi Energy Smart Workshop events, and delivery of
the DVD/book entitled `Teaching Solar' to area educators. In addition, The Rahus
Institute staff will provide in -classroom presentations where requested, as well as
ongoing consulting services to Lodi Electric Utility staff regarding solar and wind energy
issues. The budget and contract with The Rahus Institute for this program is $10,000.
As is the case with the Lodi Living Wise Program, the Lodi Solar Schoolhouse Project
complements the energy education curriculum mandated by the State of California,
allowing numerous Lodi educators to fulfill this educational requirement.
3. Lodi On -Line EnerRy Audit Promram: Lodi Electric Utility offers both on-site and
on-line energy audits for residential customers (on-site audits are also provided for small
and medium-sized commercial customers). The on-line service, known as the
HomeEnerRySuite, is provided by the firm APOGEE Interactive. The on-line tool
provides customers with the ability to determine how their monthly energy dollars are
expended. The tool also provides access to lighting and appliance calculators, an
educational `Kids Korner' and an energy conservation reference library. On average,
fifty to seventy-five customers per month utilize this free service. The contract with
APOGEE Interactive for the 2009-2010 fiscal year is in the amount of $19,800. In
addition to maintaining the database/on-line tool, APOGEE Interactive also provides
monthly updates on customer "hits" (how many customers are utilizing the service) and
continually updates the energy conservation reference library with new and emerging
energy technologies. New for the 2009-2010 fiscal year is the addition of a small
business on-line energy audit program, which will allow customers to identify energy use
patterns via the computer, similar to the aforementioned residential on-line audit
program.
4. Lodi CARE Package Program: Since late 2004, the City of Lodi has provided a
special grant program designed to assist Lodi families in paying their monthly utility bill.
To qualify for a grant, a customer must earn less than the published federal income
guidelines. Specifically, the Lodi CARE Package Program will provide a relief payment
of up to $125.00" for eligible families/customers. Other program specifics include:
➢ a customer in need will be interviewed by staff of the Lodi Salvation Army at the
Lockeford Street facility; the family/customer must meet eligibility requirements, as
listed on `AttachmentA/B;'
➢ if approved for a relief payment, the Salvation Army will notify the City of Lodi
Finance Department of eligible customer name, and the exact amount of the relief
payment;
➢ the Salvation Army will also notify the City of Lodi Electric Utility Department of
approved customers; these customers will automatically be enrolled in the Lodi
Energy Audit Program and receive a free in-home energy audit;
➢ customers are eligible to receive a maximum grant amount of $125.00 every six
months;
➢ a set of income guidelines has been developed for this program, and will be utilized
as part of the assessment process conducted by the Salvation Army (please see
`Attachment B');
➢ in order to receive the maximum relief payment of $125.00, a customer must have
no past due amounts owed to the City of Lodi, and must be able to pay the
remaining portion of their current City of Lodi utility statement (the water and
wastewater charges).
The following two entities are providing the funds available for the relief payments:
➢ City of Lodi Electric Utility - $50,000 total; of this amount, $43,000 is earmarked
for relief payments to the customers in need. The $43,000 is ONLY for payment of
the electric utility component of customer bills. $7,000 is earmarked as the
payment due to the Salvation Army for their assessment services.
➢ WM& Waste Management - $5,000 total; these funds will be designated solely for
the purpose of paying the refuse component of a customer's bill (maximum
payment is $25.00 per customer; one such payment every six months).
Since the program's inception, 939 Lodi customers have participated in the program and
received a grant payment. The intent of the Lodi CARE Package Program is to assist
those customers — currently living on wages 20 percent below the published federal
income guidelines — in paying their monthly City of Lodi utility bill, particularly when
the customer is facing a difficult period. The program is a "safety net" of sorts for
customers experiencing a particularly difficult or unexpected financial hardship.
In order to adequately qualify customers for a relief payment, Lodi Electric Utility will
again utilize the Lodi Salvation Army (S.A.) to serve as the day-to-day administrator of
the program. The S.A. will charge the City of Lodi a fee of $20.00 per customer
assessment (not to exceed $7,000.00 during the 2009-2010 fiscal year). The S.A. has
provided the same assessment services for this program since late 2004.
*This relief payment was derived by assessing the average bill of a utility customer currently receiving a
rate discount as part of the Lodi SHARE Program (the SHARE rate discount provides eligible customers
with a monthly 30% rate discount on their City of Lodi electric bill). Two months were used as part of the
assessment (July and November 2008). Of these two months, the average July utility bill for electric only
was $90.00, while the average November utility bill for electric only was $55.00. Based upon this
assessment, it was determined that the electric utility component of the relief payment be capped at
$100.00. Also during this aforementioned assessment process, it was determined that the average refuse
component of a City of Lodi utility statement is $22.00 (hence, a cap of $25.00 is recommended as the
refuse component of the relief payment). The two relief components, electric and refuse, then equal a
maximum grant of $125 per eligible customer.
**The S.A. was selected to serve as the screening agent for this program for two reasons: 1) their
experience and expertise in providing services of a similar nature for other entities (PG & E, San Joaquin
County); and 2) the S.A. has served successfully as the administrator of the "Lodi C.A.R.E. Package
Program" since 2005 — this is a utility grant payment program funded through Lodi's Public Benefits
Program.
9
5. Lodi Low Income ReLri erator Trade In Program: This is a new program for the
2009-2010 fiscal year, with a budget and contract for services of $70,000 with the San
Joaquin County Human Services Agency (HAS). Specifically, the Public Benefit
Program funds earmarked are for the purchase and installation of high efficiency
(EnergyStar®) refrigerators for low-income residential families in Lodi. While trained
staff from the San Joaquin County HAS provide various in-home energy conservation
weatherization services, they will also determine if the family is in need (qualifies) for a
new, energy efficient refrigerator. Approximately 85 energy efficient refrigerators will
be available for those families identified through this program during the 2009-2010
fiscal year. Note: the weatherization services provided by the San Joaquin County HSA
include the installation of attic insulation, door sweeps, weather -striping, and other
materials as needed to ensure the conservation of energy year-round. These services are
provided at no cost to the customer.
5
Lodi C.A.R.E. Package
EXHIBIT "A"
Eli ib�il�tyRegu rernents:
k must meet income guidelines as established in Exhibit "B;"
A customer has not received assistance through the Lodi CARE Package Program in
the past six (6)months;
➢ customer must present (in person) appropriate documentation of the following in
order to qualify for a relief payment-
- current City of Lodi utility statement;
ID/Social Security Cards for ALL members o fthe household, and driver's
license or California ID card of the person listed on the utility account;
proof of current income (i.e.: pay stub, grant letter, etc.)- handwrittennotes
are not acceptable;
copy o f rental agreement (if applicable);
proof of unexpmted expenses (within the last sixty days), resulting in the
inability to or hardship in paying City of Lodi utility account;
City of Lodi receipt for customer's co -payment, if applicable/necessary;
customer mast consent to a free, in-home energy audit, once their relief payment has
been approved;
> the available grant is for up to $125, which only pays for the electric utility
component and the ruse component of the customer's City of Lodi utility bill;
customer is required to demonstrate ability to pay for all other fixed charges (water,
wastewater, sewer) on their City of Lodi utility bill PRICRto grant payment being
authorized by the SalvationArmy;
contact the Lodi Salvation Army to determine eligibility; the number is 369-5896.
Lodi CARE Package
Benefit Levels:
➢ $125.00 per eligible customer service address/account; o f this amount,
up to $100 is for the electric utility component, and up to $25 is for
the refuse component of the utility statement;
one reliefpayrnent in a six-month period; no more than two (2) relief
payments in 12 months.
Lodi CARE Package Income Levels:
> 1-2 persons in household $179 600 (inaximum)
> 3 persons in household $209720 ( " " )
> 4 persons in household $24,880 ( )
> Each additional member $ 6,240
(NOTE the income guidelines listed above are 20%less than the income
guidelines utilized for the Lodi SHARE Discount Program.)
Lodi City Council
June 17, 2009
• What is the Public Benefits Program?
• 2008-2009 FY Program Review
• 2009-2010 FY Program Overview
• Reporting Requirements/Special Projects
• Public Benefits Program Budget: 09-10 FY
• Federal Stimulus Funds
• Questions?
1;T
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2
What is the Public Benefits Program?
➢ Established by state law in 1998
➢ Requires utilities to fund and maintain a program
with some or all of these four components:
- demand-side management (conservation)
- assistance for low-income customers
- renewable energy resources
- energy research & demonstration projects
3
What is the Public Benefits Program? (cont.
➢State law requires a 2.85% expenditure (of
utility revenue) for said program
➢ Utilities have the discretion of how to
expend collected Public Benefits revenue
IH
2008-2009 FY Program Re vie w
➢ Budget: $725,000
➢ Expended: $530,000 (through 6/12/09)
➢ Total customers impacted: 2,830 (for all programs)
➢ Marketing of programs: Lodi Utility News newsletter, Lodi
Energy Smart Workshops, press releases, newspaper
advertisements, LEU web site, bill inserts
5
2008-2009 FY Program Review (cont.)
➢ Programs offered:
- Lodi Appliance Rebate
- Lodi Energy Efficient Home Improvement Rebate
- Lodi Commercial/Industrial Customer Rebate
- Lodi Energy Audit Program
- Lodi CARE Package Program
- Lodi SHARE Verification Project
- Lodi Energy Education programs (several)
M
2009-2010 FY Program Overview
➢ Residential Programs:
- Lodi Energy Efficient Home Improvement
Rebate
- Lodi Appliance Rebate
- Lodi CARE Package
- Lodi Low -Income Refrigerator Trade -In
Program
- Lodi Energy Audit Program
7
2009-2010 FY Program Overview (cont.
> Commercial/Industrial Programs:
- Lodi G-1 Customer Rebate
- Lodi G-2 Customer Rebate
- Lodi G-3 to I-1 Customer Rebate
- Lodi Keep Your Cool Rebate
- Lodi Energy Audit Program
2009-2010 FY Program Overview (cont.
➢ Energy Education & Outreach:
- Lodi Solar Schoolhouse Project
- Lodi LivingWise Project
- Youth Energy Summit
- Lodi Energy Smart Workshop
- Lodi Green Energy Program
- Lodi Hazard Hamlet Safety Presentation
- Lodi Hydro Power Model Demonstration
0
2009-2010 FY Program Overview (cont.
This evening, we have five program contracts for
City Council consideration:
- Lodi LivingWise Program ($20,000)
- Lodi Solar Schoolhouse Project ($10,000)
- Lodi On -Line Energy Audit Prog. ($19,800)
- Lodi CARE Package Program ($50,000)
- Lodi Low -Income Refrigerator Prog. ($70,000)
10
Reporting Requirements/Special Projects
➢ SIB 1037 Report — annual energy savings
goals/targets
➢ AB 2021 Report — annual energy savings
achieved
➢ Lodi Evaluation, Measurement & Verification
Project
I OF
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Public Benefits Program Budget: 09-10 FY
- Demand-side management: $505k
- Assist. to low-income customers: $120k
- Renewable energy resources: $1 0k
- Administration/marketing/outreach: $217k
12
Federal Stimulus Funds
➢Lodi could receive $586k from the Energy
Efficiency & Conservation Block Grant
Fund (U.S. Dept. of Energy)
)'e'- Lodi City Council approved the ten (10)
projects to be funded via these grant
dollars on June 3, 2009
13
Federal Stimulus Funds
cont.
➢ Projects included
were submitted by
three City of Lodi
departments:
Keep Your Cool Program
$25k
Lodging Energy Efficiency
$48k
Low -Income Refrigerator
$50k
Cool The Earth Program
$25k
Energy Efficient Homes
$50k
ISD Computer Server
$200k
Kofu Park Comm. Facility
$20k
Grape Bowl Light. Retrofit
$100k
Solar Trash Compaction
$53k
HSS Energy Management
System
$15k
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➢Citizens interested in receiving additional
information regarding the City's various
energy efficiency rebate programs, please
call 333-6815 or visit the LEU web site:
www.lodielectric.com
➢ Questions?
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