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HomeMy WebLinkAboutAgenda Report - December 19, 2012 C-199 AGENDA ITEM C&A &12�, CITY OF LODI W COUNCIL COMMUNICATION Im 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