HomeMy WebLinkAboutAgenda Report - August 18, 1999 E-19CITY OF LORI COUNCIL COMMUNICATION
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AGENDA TITLE: Public Benefits Program Grant - Demand-side Management Project - Fairmont Sign
Company (38,110)
MEETING DATE: August 18, 1999
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve a Public Benefits Program grant in the
amount of $38,110. The funds will be utilized for the purchase of
energy efficient warehouse lighting, highly efficient HVAC (heating,
ventilation, and air conditioning) equipment and energy management
system controls.
BACKGROUND INFORMATION: To date, numerous Public Benefits Program grants have been
approved by the City Council. A number of the grants have been
allocated for large commercial and industrial energy efficiency retrofit
applications. This particular funding request is for a new construction effort- Fairmont Sign Company
located on Guild Avenue between Industrial Way and Vine Street.
The Fairmont Sign construction team and representatives from the City of Lodi Electric Utility energy
assessment group met on several occasions to review and discuss various energy efficiency upgrades
and applications. Based upon the recommendations made by the City of Lodi's energy assessment team,
the Fairmont Sign Company has agreed to purchase and install over 140 JK SUPER -640-13, 40 -watt biax
fluorescent light fixtures, of which the Public Benefits Program fund will reimburse the company 25 percent
of the purchased cost of the fixtures. Other energy efficient lighting upgrades include: motion sensors,
photo -cells and load or light -shedding devices to assist in reducing energy consumption generated from
the warehouse and manufacturing areas of the new facility.
In addition, a portion of the requested Public Benefits Program grant will be utilized for the installation of
new, highly efficient HVAC units and controls (such as digital, programmable thermostats) for the Fairmont
Sign Company's office and customer lobby area. Again, the Public Benefits Program fund will reimburse
Fairmont Sign Company 25 percent of the purchased cost of these energy efficient units and related
materials & controls.
Fairmont Sign Company, headquartered in Detroit, Michigan, broke ground on their new Lodi site in the
late spring of this year. Representatives of the sign manufacturer are targeting to be fully operational by
November 1, 1999. The company, which produces signage for numerous global corporations, will
eventually employ over 100 people.
The City of Lodi Public Benefits Program is comprised of four (4) customer groups: commercial/industrial,
residential, community/non-profit, and municipal. In addition, the program is divided into four (4) main
APPROVED:
H. Dixon Flinn -City Ma ager
CITY OF LODI COUNCIL COMMUNICATION
categories, as mandated by state law: demand-side management, assistance for low-income customers,
energy research & development, and renewable energy sources. This funding request is categorized as
commercial/industrial, and is considered a demand-side management project because it is designed to
assist the company in reducing energy costs, while also reducing operations and maintenance
expenditures inside the plant.
The City of Lodi Electric Utility respectfully recommends approval of this funding request as a qualifying
component under the City of Lodi's Public Benefits Program.
FUNDING: 164604 — Public Benefits Program Fund (Category - Demand-side Management)
Funding Approval: -a . "�
Vicky thie, Finance Director
Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lochner, Manager of Customer Programs
ANVIRUIst
c: City Attomey
APPROVED:
H. Dixon Flynn — City Manager
RESOLUTION NO. 99-125
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO PROVIDE A PUBLIC BENEFITS PROGRAM
GRANT — DEMAND-SIDE MANAGEMENT PROJECT TO FAIRMONT
SIGN COMPANY
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 customers side of the meter in order to qualify; and
WHEREAS, the Electric Utility Department recommends that the City provide a Public
Benefits grant of up to $38,110.00 to fund a Demand -Side Management Project for Fairmont Sign
Company, 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 up to $38,110.00 to Fairmont Sign
Company to fund a Demand -Side Management Project as follows:
The Fairmont Sign Company has agreed to purchase and install over 140 JK SUPER -
640 -P, 40 -watt biax fluorescent light fixtures, of which the Public Benefits Program fund
will reimburse the company 25 percent of the purchased cost of the fixtures. Other
energy efficient lighting upgrades include: motion sensors, photo -cells and load or light-
shedding
ightshedding devices to assist in reducing energy consumption generated from the
warehouse and manufacturing areas of the new facility.
In addition, a portion of the requested Public Benefits Program grant will be utilized for
the installation of new, highly efficient HVAC units and controls (such as digital,
programmable thermostats) for the Fairmont Sign Company's office and customer lobby
area. Again, the Public Benefits Program fund will reimburse Fairmont Sign Company 25
percent of the purchased cost of these energy efficient units and related materials and
controls.
Dated: August 18, 1999
I hereby certify that Resolution No. 99-125 was passed and adopted by the Lodi City
Council in a regular meeting held August 18, 1999 by the following vote:
AYES:
COUNCIL MEMBERS — Hitchcock, Mann, Nakanishi and Land (Mayor)
NOES:
COUNCIL MEMBERS — None
ABSENT:
COUNCIL MEMBERS— None
ABSTAIN:
COUNCIL MEMBERS — Pennino
ALICE M. REI CHI=
City Clerk
99-125