HomeMy WebLinkAboutAgenda Report - December 19, 2012 C-199 AGENDA ITEM C&A
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AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Allocate Additional Fundsto the Lodi
Energy Efficiency Financing Program ($500,000)
MEETING DATE: December 19,2012
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Managerto allocate an
additional $500,000 to the Lodi Energy Efficiency Financing
Program.
BACKGROUND INFORMATION: In January 2011, Lodi Electric Utility (LEU) launched the Lodi
Energy Efficiency Financing Program. This program is funded via
the Lodi Public Benefits Funds, and is designed for commercial and
industrial customers (assigned to the G2, G3, G4, G5, or 11 electric utility rate) as a tool to finance energy
efficiency projects. Underthe program, eligible customers may receive a two-year, interestfree loan of
up to $50,000. The loan payment is then included on the customer's monthly utility billing statement.
Staff is proposing to increase the loan amount from $50,000 up to $150,000 for only those qualifying
customers assigned to the G3, G4, G5, and 11 electric utility rate. In discussions with some of Lodi's
largest energy consumers, it has been determined that a greater loan amount would be of tremendous
value to them as they investigate and pursue energy efficiency projects at their facilities. Staff is also
recommending that the program be expanded to include utility customers assigned to the G I electric
utility rate (defined as "small businesses"). Staff is requesting an additional $500,000 be placed into the
loan program.
FISCAL IMPACT: $500,000 in Public Benefits funds will be allocated to the loan program account.
This is a loan program, thus funds provided to customers are ultimately returned in
full to the appropriate account. However, the utility will, overtime, see decreased
energy sales as a result of the energy efficiency measures installed by participating
customers.
FUNDING: Included in th Y 2012/13 BudgetAccount No 164604
J -6 -Fran Ayers
Deputy City Manager/Interrial Se ice r
abeth A. Kirklev
Electric Utility Director
PREPARED BY: Rob Lechner, Customer Service & Programs Manager
EAK/RSUIst
APPROVED:
onradt Bartlam. Citv Manaaer
RESOLUTION NO. 2012-209
A RESOLUTION OF THE LODI CITY COUNCIL
MODIFYINGTHE LODI ENERGY EFFICIENCY
FINANCING PROGRAM AND APPROPRIATING FUNDS
WHEREAS, in January 2011, Lodi Electric Utility (LEU) launched the Lodi Energy Efficiency
Financing Program; and
WHEREAS, this program is funded by the Lodi Public Benefits Funds, and is designed for
commercial and industrial customers (assigned to the G2, G3, G4, G5, or 11 electric utility rate) as a tool to
finance energy efficiency projects; and
WHEREAS, under the program, eligible customers may receive a two-year, interest free loan of
up to $50,000, the loan payment is then included on the customer's monthly utility billing statement; and
WHEREAS, staff is proposing to increase the loan amount from $50,000 up to $150,000 for only
those qualifying customers assigned to the G3, G4, G5, and 11 electric utility rate; and
WHEREAS, in discussions with some of Lodi's largest energy consumers, it has been determined
that a greater loan amount would be of tremendous value to them as they investigate and pursue energy
efficiency projects at their facilities; and
WHEREAS, staff is also recommending that the program be expanded to include utility customers
assigned to the G I electric utility rate (defined as "small businesses"); and
WHEREAS, staff is requesting an additional $500,000 be placed into the loan program; and
WHEREAS, $500,000 would be transferred from the Public Benefits Fund to the loan program
account with loan payments replenishing this account; and
WHEREAS, over time, the utility will have decreased energy sales as a result of the energy
efficiency measures installed by participating customers; and
WHEREAS, staff recommends an appropriation in the amount of $500,000 from the Electric Utility
Public Benefits Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby modify the Lodi Energy
Efficiency Financing Program as outlined above; and
BE IT FURTHER RESOLVED that the City Council approves the appropriation of $500,000 from
the Electric Utility Public Benefits Fund for this Program.
Dated: December 19,2012
1 hereby certify that Resolution No. 2012-209 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
HL
2012-209