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HomeMy WebLinkAboutAgenda Report - June 6, 2001 E-21CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Adopt resolution authorizing the City Manager to provide a Public Benefits Program Grant in the amount of $90,731.00 to fund the Mondavi Distribution Center Demand- side Management Project (EUD) MEETING DATE: June 6, 2001 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council adopt resolution authorizing the City Manager to provide a Public Benefits Program Grant in the amount of $90,731.00 to fund the Mondavi Distribution Center Demand-side Management Project. BACKGROUND INFORMATION: Currently, the Robert Mondavi company is constructing a 600,000 (approximate) square foot product distribution center at the very northern end of Guild Avenue in Lodi. In consultation with the City of Lodi Electric Utility and Planergy International (the City of Lodi's chosen energy services provider), Robert Mondavi has opted to upgrade the lighting and mechanical components of their new facility incorporating high efficiency equipment and technology. The Public Benefits Program grant in the amount of $90,731 reflects a 25 percent contribution towards the total cost of the installed energy efficient equipment (total cost of the energy efficient improvements: $362,924). In their new facility, Robert Mondavi will be installing the following designated energy efficient equipment/technology: • water-cooled chiller (this is the main cooling system for the distribution center, which is designed to maintain a year-round indoor temperature of 65 degrees); • heat pumps for the office space (Seasonal Energy Efficiency Rating of 12.0); • high efficiency pump motors for warehouse and office HVAC (heating & cooling) systems; • 350 -watt pulse start metal halide warehouse lighting; • lighting motion sensors for office space; and • skylights for warehouse (otherwise referred to as "free lighting"). The original equipment designed for the Mondavi Distribution Center, which was not deemed as energy efficient or high efficiency, included: an air-cooled chiller, heat pumps with an efficiency rating of 10.0, mid- range efficiency pump motors for the HVAC systems, and 400 -watt metal halide lighting. It should be noted that the Robert Mondavi team was extremely receptive to any and all energy efficient improvements proposed by the City of Lodi. Based upon the high efficiency equipment to be installed versus the original equipment list (see above), Robert Mondavi will reduce their monthly energy consumption by nearly 17 percent. The City of Lodi Electric Utility will utilize this facility as a show -piece APPROVED: H. Dixon lynn - Citypager 4 CITY OF LODI COUNCIL COMMUNICATION p' for future new construction projects (large commercial and industrial), and is now considered a cornerstone in the demand-side management project category. After numerous site visits, meetings and scope -of -work revisions, the City of Lodi Electric Utility respectfully recommends approval of this grant request as a qualifying component of the City of Lodi Public Benefits Program. Funding: 164605 — Public Benefits Program Fund (Category — Demand-side Management) Funding Approval: Tom' Vicky McAthie, Finance Director Alan N. Vallow Electric Utility Director PREPARED BY: Rob Lechner, Manager, Customer Programs ANV/RUIst C: City Attorney APPROVED: H. Dixon Flynn - City Manager RESOLUTION NO. 2001-136 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO PROVIDE A PUBLIC BENEFITS PROGRAM GRANT TO THE MONDAVI DISTRIBUTION CENTER ------------------------------------------------------------------ ------------------------------------------------------------------ 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 amounts to approximately $1 M 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, the Robert Mondavi Company is constructing a 600,000 square foot product distribution center at the northern end of Guild Avenue in Lodi; and WHEREAS, in consultation with the City of Lodi Electric Utility and Planergy International, Mondavi has opted to upgrade the lighting and mechanical components of their new facility incorporating high efficiency equipment and technology; and WHEREAS, the proposed Public Benefits Program grant in the amount of $90,731.00 reflects a 25 percent contribution towards the total cost of the installed energy efficient equipment; and WHEREAS, Robert Mondavi will be installing the following designated energy efficient equipment/technology: • water-cooled chiller (this is the main cooling system for the distribution center, which is designed to maintain a year-round indoor temperature of 65 degrees); • heat pumps for the office space (Seasonal Energy Efficiency Rating of 12.0); • high efficiency pump motors for warehouse and office HVAC (heating & cooling) systems; • 350 -watt pulse start metal halide warehouse lighting; • lighting motion sensors for office space; and • skylights for warehouse (otherwise referred to as "free lighting"). WHEREAS, as a result of the energy analysis, site visits, meetings and scope -of - work revisions, the City of Lodi Electric Utility recommends approval of this grant request as a qualifying component of the City of Lodi Public Benefits Program. NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager to provide a Public Benefits Grant in the amount of $90,731.00 to fund the Mondavi Distribution Center Demand-side Management Project. Dated: June 6, 2001 ------------------------------------------------------------------- ------------------------------------------------------------------- I hereby certify that Resolution No. 2001-136 was passed and adopted by the Lodi City Council in a regular meeting held June 6, 2001 by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Pennino and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk 2001-136