HomeMy WebLinkAboutAgenda Report - December 19, 2012 C-18AGENDA ITEM C,/ 91 T
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Submit an Application to
Participate in the Energy Conservation Assistance Act, a Low -Interest Loan
Program Sponsored by the California Energy Commission
MEETING DATE: December 19,2012
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Managerto submit an
application to participate in the Energy Conservation Assistance Act,
a low-interest loan program sponsored by the California Energy
Commission.
BACKGROUND INFORMATION: The California Energy Commission (CEC) is offering one percent
interest loans to finance designated energy efficiency and energy
generation projects. Loans of up to $3 million are available to cities,
counties and other municipal entities around the state and available on a first-come, first-served basis.
City staff is recommending that the City Manager apply for up to $3 million in loan funds for the Lodi
Streetlight Retrofit Project, an eligible energy efficiency measure underthe terms of this loan program.
Perthe application process, the CEC requires that the local governing board adopt a resolution in
support of the loan application. This resolution must be attached to the submitted application.
The Lodi Streetlight Retrofit Project entails replacementof all existing, inefficient streetlight lamps in the
community with high efficiency streetlight technology. The energy consumption for these streetlights will
be reduced by 40 percent, a savings of approximately $300,000. This energy efficiency project will have
a direct and positive impact for all residences and businesses in Lodi, as the City then reduces operating
expenses in terms of energy to powerthe streetlights, as well as maintenance expenses.
FISCAL IMPACT: It is anticipated that this project will cost less than $3 million. Depending upon the
amount of funding secured through the CEC loan process, additional funds may be
expended up front from the Lodi Public Benefits Fund. However, the total secured
loan will be repaid using Public Benefit Program funds. The energy savings
derived from this projectwill result in a payback of less than nine years, resulting in
a positive cash-flow after nine years of approximately $300,000.
FUNDING: Not applicable.
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Ea'1beth A. Kirkley
Electric Utility Director
PREPARED BY: Rob Lechner, Customer Service & Programs Manager
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APPROVED:
Konradt Bartlam, City Manager
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A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY
MANAGERTO SUBMIT AN APPLICATION TO PARTICIPATE IN THE
ENERGY CONSERVATION ASSISTANCE ACT, A LOW-INTEREST LOAN
PROGRAM SPONSORED BY THE CALIFORNIA ENERGY COMMISSION
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WHEREAS, the California Energy Commission (CEC) is offering one percent interest
loans to finance designated energy efficiency and energy generation projects; and
WHEREAS, loans of up to $3 million are available to cities, counties, and other
municipal entities around the state and available on a first-come, first-served basis; and
WHEREAS, City staff is recommending that the City Manager apply for up to $3 million
in loan funds for the Lodi Streetlight Retrofit Project, an eligible energy efficiency measure
under the terms of this loan program; and
WHEREAS, per the application process, the CEC requires that the local governing
board adopt a resolution in support of the loan application, which must be attached to the
submitted application; and
WHEREAS, the Lodi Streetlight Retrofit Project entails replacement of all existing,
inefficient streetlight lamps in the communitywith high -efficiency streetlight technology; and
WHEREAS, the energy consumption for these streetlights will be reduced by 40
percent, and this energy efficiency project will have a direct and positive impact for all
residences and businesses in Lodi, as the City then reduces operating expenses in terms of
energy to power the streetlights, as well as maintenance expenses; and
WHEREAS, the loan will be repaid using Public Benefit Program funds, and the energy
savings derived from this project will result in a payback of less than nine years, resulting in a
positive cash-flow after nine years of approximately $300,000.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to submit an application to participate in the Energy Conservation
Assistance Act, a low-interest loan program sponsored by the California Energy Commission for
the Lodi Streetlight Retrofit Project in the amount of $3 million.
Dated: December 19, 2012
hereby certify that Resolution No. 2012-208 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held December 19, 2012, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, Mounce, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
f;wl JOHL
City Clerk
2012-208