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HomeMy WebLinkAboutAgenda Report - November 16, 2011 C-13AGENDA ITEM C401 4% CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Amend the Energy Efficiency Financing Program MEETING DATE: November 16,2011 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Adopt a resolution authorizing the City Managerto amend the Energy Efficiency Financing Program. BACKGROUND INFORMATION: In October 2010, the City Council approved a pilot projectfor an energy efficiency financing program, also referred to as on -bill financing. This established a loan fund in the amount of $250,000 for G2 electric utility customers' energy efficiency/conservation projects. In May 2011, the City Council authorized an additional $150,000 as well as G3, G4, G5 and 11 utility rate customers. To date, eight (8) commercial/industrial customers have secured an interest-free, 24 -month loan for designated and approved energy efficiency measures. These businesses include: Delta Rehabilitation, Wine & Roses, M & R Packing, Pacific Coast Producers, Quashnick Tools, Heartland Steel, Kettleman Lane Chevron, and Specialty Commodities. Of the $400,000 available in this program, a total of $278,955.75 has been loaned to these eight aforementioned businesses. Another $69,101 is currently reserved, as the energy efficiency projects are pending installation/completion by years end. Staff recommends expanding the program to include non-residential customers assigned to the G-1 electric utility rate tariff. Also of note, all outstanding loans continue to be paid on time, each month. This continues the "cycle" of loan funds: as loan amounts are paid each month, the total available loan balance is replenished. This allows the City to offer additional loans to those customers who meet the set eligibility guidelines. FISCAL IMPACT: The electric utility will, overtime, continue to see decreased energy sales as a result of the customer -implemented energy efficiency/conservation measures. FUNDING: Included inFY2011/12 Budget Account No. 164.1420. Jor& ers Deputy City Manager/Inter al Se ice to Eliz e h . Kirlclev �' Electric Utility Director PREPARED BY: Rob Lechner, Manager, Customer Service & Programs APPROVED: r — nradt Bartlam, City Manager RESOLUTION NO. 2011-182 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO AMEND THE ENERGY EFFICIENCY FINANCING PROGRAM WHEREAS, in October 2010, the City Council approved a pilot project for an energy efficiency financing program, also referred to as on -bill financing, which established a loan fund in the amount of $250,000 for G2 electric utility customers' energy efficiency/conservation projects; and WHEREAS, in May 2011, the City Council authorized an additional $150,000 as well as G3, G4, G5, and 11 utility rate customers; and WHEREAS, to date, eight commercial industrial customers have secured an interest- free, 24 -month loan for designated and approved energy efficiency measures; and WHEREAS, to date a total of $278,955.75 has been loaned to eight businesses and $69,101 is currently reserved as the energy efficiency projects are pending installation/completion by years end; and WHEREAS, staff recommends expanding the program to include non-residential customers assigned to the G I electric utility rate tariff, thus incorporating all non-residential customers in this program. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to amend the Energy Efficiency Financing Program by including G I commercial/industrial customers. Dated: November 16, 2011 hereby certify that Resolution No. 2011-182 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 16, 2011, by the following vote: AYES: COUNCIL MEMBERS —Hansen, Katzakian, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mounce ABSTAI N: COUNCIL MEMBERS — None .(J7 HL City Clerk 2011-182