HomeMy WebLinkAboutAgenda Report - December 16, 1998 (59)� 4 �
CITY OF LODI COUNCIL COMMUNICATION
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AGENDA TITLE: Public Benefits Program Grant - Wallace Computer Services, Inc., Phase II Energy Audit
MEETING DATE: December 16, 1998
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION:
BACKGROUND INFORMATION:
That the City Council approve a Public Benefits Program grant to Wallace
Computer Services, Inc., for a Phase II Energy Audit for a maximum of
$5,000.
During a November 17, 1998 Shirtsleeve Session, the Electric Utility
Department presented an overview of the Public Benefits Program (PBP) and
suggested expenditure of PBP funds over the ensuing 4 years.
As indicated in the Council Communication for the above presentation, several specific qualifying proposals would be
presented prior to year's end for PBP funding consideration. One such proposal recommended for funding is a Phase
II Energy Audit/Survey for Wallace Computer Services, Inc. (1831 S. Stockton Street), to be performed by Energy
Masters, International (EMI).
EMI has partnered with the City of Lodi Electric Utility, as well as other NCPA cities, to effectively utilize Public Benefit
Program funds. Energy audits/surveys are one such use of the Public Benefit Program funds. EMI has over 20 years
of expertise in the energy management industry, and is recognized as a national leader in the electric industry.
Wallace Computer Services is one of Lodi's largest individual electric consumers, with over 75 employees working
three shifts around the clock, Monday through Friday. Wallace Computer Services is planning to remove the two
existing 60 -ton air conditioning units serving the facility, and replace them with high efficient units during the first
quarter of 1999. This equipment upgrade, coupled with several other potential energy conservation measures, quality
as excellent candidates for Public Benefit Program funding.
Several weeks ago, the City of Lodi Electric Utility Department and representatives from EMI, conducted a Phase I
Energy Audit/Survey of the Wallace, Inc. facility. A Phase I energy audit provides a general overview of an
organization's energy use. A Phase I study also assists in determining whether or not there is a need to conduct a
Phase II energy assessment, which is a more comprehensive analysis of energy usage, as well as recommendations
for installation of energy conservation equipment and materials.
Based upon the Phase I energy survey of Wallace, Inc., it has been determined that a Phase II energy assessment is
required to outline specific energy-saving measures for this customer's benefit. The funding request for this particular
Phase II energy audit and recommendation proposal is $5,000.00
The Electric Utility Department has reviewed the materials provided by EMI in their Phase I energy study of the
Wallace Computer Services, Inc. facility, and recommends approval of this funding request as a qualifying component
under the proposed PBP.
APPROVED:
T
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Dix -on Flynn - City Manager
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FUNDING:
CITY OF LODI COUNCIL COMMUNICATION
FUNDING APPROVAL:
16064 — Public Benefits Program Fund (Category: Demand Side management)
U .. Z R1. ` COOtiv..a_
Vicky McAthie, France Director
Alan N. allow
Electric Utility Director
PREPARED BY: Rob Lechner, Manager of Customer Programs
ANV/RUIst
C: City Attorney
APPROVED:
H. Dixon Flynn -- City Manager
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ENERGY MASTERS
1 N T c R N A T I O N A L
SECTION 1- EXECUTIVE SUMMARY
The City of Lodi Electric Department and Energy Masters International, Inc. (EMI)
sincerely appreciates the opportunity to present this preliminary "energy efficiency"
proposal to Wallace Computer Services, Inc. for the feasibility and evaluation of an
energy and operational cost savings program at the Lodi facility.
This preliminary energy efficiency analysis provides Wallace with the opportunity to
address aging and inefficient heating, ventilating and air conditioning (HVAC), lighting,
environmental control systems, process mechanical equipment and operational
conditions and describes cost saving recommendations associated with system
improvements.
in this proposal document we describe what we can accomplish and present a
preliminary cost -to -savings ratio analysis.
If the recommendations we have made and cost/savings ratio is attractive, we propose
that Wallace commit to a comprehensive in-depth analysis that will include precise
measurements of existing conditions, computer modeling of energy efficiency measures,
engineered specifications and complete detailed cost -to -savings financial information.
An Intelligent Approach to Energy Planning
As the deregulation of the electric industry unfolds, a majority of large energy users are
striving to get their arms around their energy supply and demand side management
plans. Media and industry attention on the electricity commodity market has caused
many firms to scrutinize the operating efficiency of their energy consuming equipment.
Further, because utilities such as Lodi Electric are striving to provide their customers
with additional value-added services many energy users are experiencing the positive
effects of the changing role of the traditional utility provider. The result of all of this is
that Wallace Computers Services, Inc. has been selected to participate in this "energy
efficiency" partnership program developed by Lodi Electric. With the "demand side"
measures we are proposing, Wallace is poised to take a major step toward getting the
best value for its energy dollar.
Maximizinv Available Utility Incentives
Concurrent with the installation of the proposed energy efficiency program, Lodi Electric
will dedicate rebate money directly to Wallace Computer to completely fund the cost of
the comprehensive in-depth engineering analysis and help buy down the cost of the
project. The Lodi Electric rebate program is developed and budgeted on an annual basis
to assist it's customers in becoming as technically and operationally efficient and
productive as possible.
ENERGY MASTERS
i N T E R N A T 1 O N A L
Preliminary Recommendations
1. Upgrade/retrofit older inefficient lighting systems, replace high bay system, install
motion sensor controls
2. Upgrade/replace air conditioning units with high efficiency variable frequency
drives (VFDs) on specified motors and compressors, and / or new high efficiency
units
3. Install ground source heat pump system for production area
4. Installation of dedicated packaged or split system direct expansion cooling units
5. Improve the operating efficiency of the plant's air compressor system
6. Install insulation over north office
7 Integrate an energy management system (EMS) into the building's operations
systems
These measures represent an immediate means to reduce energy consumption and
will create an improved, more productive work environment for Wallace employees.
Savings and Payback
The preliminary "demand side" energy efficiency measures we are proposing will
reduce annual energy costs by $100,629, or about 41%. Annual maintenance and
operational savings are calculated to be $8,072. Total potential annual savings
$108,701. Estimated project payback 4.04 years. Further, the City of Lodi Electric
Department will offer incentive money directly to Wallace Computer Services, Inc. for
the installation of an energy efficiency project.
Background and Operations Overview
Wallace is acknowledged as a national leader in the field of information management
products, services and solutions, with several facilities located throughout the country.
Its product line includes commercial printing, business forms, labels, direct mail and
office products. Wallace, the nation's fifth largest printer in North America, through solid
system infrastructure, innovative management tools, high customer acceptance
standards, outstanding distribution system and wide product diversity is positioned for
continued success and growth.
ENERGY MASTERS
1 N T E A N A T I O N A L
Architecture
The Lodi facility was originally occupied in 1983 and expanded in 1986 when the
Production Area was completed. The current facilities now occupies approximately
140,000 total square feet comprised of the following:
Space
Administrative
I Production
Warehouse
Square
Footage
(approx.) Space Type
12,000 Heating & Cooling
30,000 Heating & Cooling
98,000 Heating Only
Hours of Occupation
7 AM to 8 PM, Mon. -Fri.
24 hours, Mon. -Fri., 2 Sat./mo.
7 AM to 6 PM or 11 PM, Mon. -
Fri.
The facility employs approximately 86 full-time employees and 10 to 12 temporary employees.
The building is constructed of metal panels on studs with gypsum wall board. The facility has
high ceilings (approximately 30 feet) with the exception of the Administrative Area that has a
drop T -bar ceiling.
Lighting
Space
Administrative/Office
Production
I Warehouse
Lighting Fixture Type
4 foot, 4 lamp fluorescent troffers *
8 foot, 2 lamp high output fluorescent strips
400 watt metal halide high bays
Approx. j
Quantity
195
242
241 !
* Note: 45 fixtures in the general administration areas in the front of the building
have had two lamps removed. Each fixture has two ballasts that are still drawing
power.
Heating, Ventilating and Air Conditioning
Administrative Area: Six (6) single zone packaged rooftop units with direct expansion
cooling and direct -fired natural gas heating provide space comfort to the Offices and
Pre -Press Areas. These units are controlled by programmable thermostats with
night setback capability and are operated Monday through Friday, 7 AM to 5 PM.
ENERGY MASTERS
I N Y c R N A T 1 p N A L
Production Area: Two (2) 60 Ton single zone packaged heating/cooling with direct
expansion cooling and direct -fired natural gas heating (disabled) provide space
comfort to the Production Area and offices located in Production Area. These units
are operated 24 hours a day, five days per week. Three (3) natural gas-fired unit
heaters are also present.
Warehouse Area: Eleven (11) natural gas-fired unit heater provide space heating.
Ten (10) wall mounted fans, most with reversing capability, can provide air
circulation by exhausting building air or brining in outside air.
Process Equipment
Two (2) 75 HP air compressors provide compressed air to process equipment in the
Production Area, although only one compressor runs at a time. Other printing
process equipment like conveyors, cutters, blowers and dryers comprise a large
portion of the electrical load.
RESOLUTION NO. 98-185
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO PROVIDE A PUBLIC BENEFITS CHARGE (PBC)
GRANT TO WALLACE COMPUTER SERVICES, INC.
WHEREAS, the State has mandated that beginning January 1, 1998, the City of Lodi is
obligated to fund various programs through a Public Benefits Charge (PBC) based on a historical
electric revenue requirement; and
WHEREAS, the requirement amount to approximately $1 Million per year that must be
dedicated to qualifying programs such as energy efficiency. A further stipulation is that these
efforts must be done on the customer's side of the meter in order to qualify; and
WHEREAS, Wallace Computer Services is planning to remove the two existing 60 -ton air
conditioning units serving the facility, and replace them with high efficient units during the first
quarter of 1999; and
WHEREAS, this equipment upgrade, coupled with several other potential energy
conservation measures, qualify as excellent candidates for Public Benefit Program funding; and
WHEREAS, the City of Lodi Electric Utility Department and representatives from Energy
Masters, International conducted a Phase 1 Energy Audit/Survey of the Wallace, Inc. facility; and
WHEREAS, following the Electric Utility Department's review of Wallace Computer
Services, Inc.'s, energy audit, it was determined that Phase II energy assessment is required to
outline specific energy-saving measures; and
WHEREAS, the Electric Utility Department recommends that the City provide a PBC
grant of $5,000.00 for the Phase II Energy Assessment, and include the cost of the grant as part
of the City's required PBC outlay.
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager to
provide a Public Benefits Charge (PBC) Grant in the amount of $5,000.00 to Wallace Computer
Services, Inc.,
Dated: December 16, 1998
I hereby certify that Resolution No. 98-185 was passed and adopted by the Lodi City
Council in a regular meeting held December 16, 1998 by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Mann, Nakanishi, Pennino and Land
(Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
ALICE M. REIIVICHE
City Clerk
98-185