HomeMy WebLinkAboutMinutes - November 27, 2012 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, NOVEMBER 27, 2012
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, November 27, 2012, commencing at 7:05 a.m.
Present: Council Member Hansen, Council Member Johnson, and Mayor Pro Tempore
Nakanishi
Absent: Council Member Katzakian, and Mayor Mounce
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 Public Benefits and Solar Funds Update (EUD)
Electric Utility Director Elizabeth Kirkley and Customer Services and Programs Manager Rob
Lechner provided a PowerPoint presentation regarding the public benefits and solar funds
update. Specific topics of discussion included an overview of the Public Benefits program,
program budget, program fund, potential customer projects, potential City projects, energy
efficiency goals and targets, solar program and fund, solar systems installed, solar rebate
program funding, electric vehicles, and charging stations.
In response to Council Member Hansen, Mr. Lechner stated typically funds for customer rebates
are not fully spent due largely to the economy and saturation of programs such as the
refrigeration program.
In response to Mayor Pro Tempore Nakanishi, Mr. Bartlam confirmed the gross sales revenue is
2.85% and state law does not require the City to spend every dollar immediately, only that it is
spent fully at some time in the future.
In response to Council Member Hansen, Mr. Lechner stated the program outreach between the
utility and appliance dealers is good and the appliance program remains the best customer
program because it is most economical.
In response to Council Member Hansen, Mr. Lechner stated the City did partner with the County
on the weather stripping program as a part of the stimulus package and some Lodi residents did
utilize that program.
In response to Council Member Johnson, Mr. Lechner stated the vendor that used to conduct the
home energy audits recently retired and staff is in the process of looking for another vendor to
continue conducting that program.
In response to Council Member Johnson, Mr. Lechner stated the maximum amount that can be
borrowed for energy retrofitting at the current time is $50,000 and staff will be bringing forward
options to increase that amount to $150,000 to further entice the bigger customers to do large-
scale energy efficiency projects.
In response to Mayor Pro Tempore Nakanishi, Mr. Lechner stated the loan program is
approximately a year and a half old and currently there are 15 customers in the program.
Continued November 27, 2012
In response to Council Member Hansen, Mr. Bartlam stated the street light program through the
State will reduce operational costs thereby reducing costs for all residents. Mr. Lechner confirmed
that the new LED lights are more energy efficient and lighter in color and the cost has also come
down over the past few years. Mr. Lechner confirmed that staff can research changing the lighting
on Lodi Avenue through the new lighting program.
In response to Mayor Pro Tempore Nakanishi, Mr. Bartlam confirmed that there are some streets
in the City that do not have street lights because the residents do not want them.
In response to Council Member Hansen, Mr. Lechner stated there are funds for the Municipal
Service Center lighting retrofit, Hutchins Street Square heating, ventilation, and air conditioning
(HVAC), Civic Center HVAC, and City Hall Annex lighting retrofit projects.
In response to Council Member Johnson, Mr. Lechner stated the percentage split for public and
private projects currently is about 50-50.
In response to Council Member Hansen, Mr. Bartlam and Mr. Lechner confirmed that the street
lighting retrofit project would be contracted out and come back to the City Council for approval.
In response to Mayor Pro Tempore Nakanishi, Mr. Lechner provided a brief overview of the timing
for the four City projects in order to meet the State deadline. Mr. Lechner stated the State
requires reasonable targets for energy efficiency goals, which the City of Lodi has, and there is
no real penalty for non-compliance.
In response to Council Member Hansen, Mr. Lechner confirmed that technology has improved
greatly and therefore brought the costs of solar projects down.
In response to Council Member Johnson, Mr. Lechner provided a brief overview of how the solar
funds have been spent over the past few years on both the residential and commercial side.
In response to Mayor Pro Tempore Nakanishi, Mr. Lechner confirmed that the solar program
funds for residential and commercial are dispersed on a first come, first serve basis.
In response to Council Member Johnson, Mr. Lechner stated the seven charging heads for
electric vehicles from the State are free, there are some public funds used for the installation of
the stations, and some costs are recouped through a credit card swipe for use of the station.
Mr. Lechner stated he is aware of five electric vehicles in the City currently, three for the City and
two privately -owned.
In response to Council Member Hansen, Mr. Lechner stated the location of the charge stations is
based on State requirements and are intended to be centrally located.
In response to Council Member Johnson, Mr. Lechner stated the State requires that the charging
stations be publicly accessible on municipally -owned property as a condition of the grant
program.
In response to Mayor Pro Tempore Nakanishi, Mr. Lechner and Mr. Bartlam confirmed that
Sacramento, Galt, and a few cities in Southern California are pursuing similar programs although
there is a bit of a difference with a municipal utility versus privately -owned utilities such as PG&E.
In response to Myrna Wetzel, Mr. Lechner provided an overview of the costs and timing
associated with operating and charging an electric vehicle. Mr. Bartlam confirmed that only those
with a credit card or ATM card will be able to use the charge station with the swipe mechanism.
N
Continued November 27, 2012
None.
Comments by Public on Non -Agenda Items
Adjournment
No action was taken by the City Council. The meeting was adjourned at 8:05 a.m.
ATTEST:
Randi Johl
City Clerk
AGENDA ITEM 16A
CITY OF LODI
,. COUNCIL COMMUNICATION
TM
AGENDA TITLE: Public Benefits and Solar Funds Update
MEETING DATE: November 27, 2012
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Receive Public Benefits and Solar Funds Update.
BACKGROUND INFORMATION: Since 1998, the City of Lodi has maintained a Lodi Public Benefits
Program. California Assembly Bills 1890 and 995 provide the
framework for this State -mandated program, including guidance
for how such a program should be funded by each utility. In general, based on a formula contained in the
Code, publicly -owned utilities are required to fund the program through the use of a non -bypassable
surcharge of at least 2.85 percent of all electric utility retail sales.
While there is wide flexibility regarding the planning and implementation of each utility's programs,
expenditures must fall under one or more of four categories:
• Cost-effective demand-side management services to promote energy efficiency/conservation
• Services provided for low-income electricity customers
• New investments in renewable energy technologies
• Research, development, and demonstration
Also under state law per Senate Bill 1 and Assembly Bill 920, the City of Lodi is required to maintain a
solar rebate program, and has done so since January of 2008.
During the City Council's Shirtsleeve Session, staff will provide an update of the City's Public Benefits
and Solar Funds and their associated programs.
FISCAL IMPACT: Not applicable at this time.
FUNDING AVAILABLE: Included in FY 2012/13 Budget Account No. 164604 and 166601.
Elizabeth Kirkley
Electric Utility Director
PREPARED BY: Rob Lechner, Customer Service & Programs Manager
EAK/RSUIst
APPROVED:
Bartlam, City Manager
November 27, 2012
City Council Shirtsleeve Session
City of Lodi Electric Utility Department
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Public Benefits and Solar Funds
o Public Benefits Program
o Energy Efficiency Goals & Targets
o Solar Fund
o Electric Vehicles & Charging Stations
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Public Benefits Program
o State -mandate per AB 1890 & 995
0 2.85% of sales revenue
o Eligible Public Benefits Expenditures
• Demand-side Management
• Assistance for Low-income Customers
• Renewable Energy Resources
• Research, Development & Demonstration
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Public Benefits Program Budget
o $941,760 in FY 12-13 Budget
• Administrative costs = $125,260
• Customer rebates = $525,000
• Vendor contracts = $160,000
• Low-income program = $79,000
• RD & D = $50,000
• Renewable energy = $2,500
o $600k to $800k additional annually
• Qualifying renewable energy projects
• SHARE Discount
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Public Benefits Program Fund
o Current Surplus $3.6 million
o Per AB 1890, these funds must be
expended for eligible Public Benefits
programs/services
o Utility/City staff have identified a list of
potential expenditures
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Potential Customer Projects
o Low-income Residential Weatherization
o Comprehensive Residential Energy
Efficiency
o Non-residential Energy Efficiency
Financing
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Potential City Projects
o Streetlight Retrofit Project
o City Facilities Energy Efficiency Projects
• MSC lighting retrofit
• Hutchins Street Square HVAC
• Civic Center HVAC
• City Hall Annex lighting retrofit
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Energy Efficiency Goals & Targets
o State mandated per AB 2021
0 1 0 -year goals/targets for energy efficiency
o Updated every 3 years; changed to 4 years
o Performed in 2007 & 2010
o Next update Dec 1 9t" City Council Meeting
o Approximately 0.75% of total energy sales
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Solar Program and Fund
o State mandated per SB1 & AB920
o Ten-year program 1/1/08 - 12/31/17
o Lodi's requirement is $6.1 million
o $2,611,086 collected via Solar Surcharge
o $2,677,252 expended on rebates
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Solar Systems Installed
0 136 residential & non-residential systems
o Total capacity: 1.755 MW
o Enough energy to power over 350 homes
for a year
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Solar Rebate Program Funding
o CY 2013 Solar Rebate Program ($600k)
• $150,000 for residential customer rebates
• $300,000 for non-residential customer rebates
• $150,000 earmarked for two annual payments
• Rebate formula $1.94/watt
• Rebate caps
$7,000 residential
$40,000 non-residential
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Electric Vehicles (EVs)
o Seven EVs since 2000
o Currently three Toyota RAV -4's
• Lease expires June 2013
o Staff investigating replacement EVs,
including plug-in hybrid vehicles
o In October, EUD staff test drove Mitsubishi
MiEV fora 3 week period
Electric Vehicle Charging Stations
o Two publicly accessible at City Hall
• Recently retrofitted to universal style
o Five additional charging stations via a grant
from the CA Energy Commission
• Hutchins Street Square
• Animal Services
• Downtown Parking Structure
• Finance Department
• Library - .
o Credit card swipe for public stations
Public Benefits & Solar Funds Update
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