HomeMy WebLinkAboutAgenda Report - January 19, 2005 E-10AGENDA ITEM Ev W
CITY OF LODI
COUNCIL COMMUNICATION
FM
AGENDA TITLE: Adopt a resolution authorizing the City Manager to allocate a Public
Benefits Program grant in the amount of $24,180 to Scientific
Speciaillies, Incorporated for a demand-side management project
(EUD)
MEETING DATE: January 19, 2005
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City
Manager to allocate a Public Benefits Program grant in the amount
of $24,180. to Scientific Specialties, Incorporated for a demand-
side management project.
BACKGROUND INFORMATION: Scientific Specialties, Incorporated (SSI), located at 1310 Thurman
Street, manufactures specialized plastic products. These products
are predominately used in the medical and research fields, and are
provided to organizations throughout the world.
In late 2004, facility engineers and maintenance operators at SSI began the process of replacing
inefficient and aging plastic injection molding machines inside the plant. By way of this Council item, SSI
is seeking a utility rebate in the amount of $24,180. (which reflects the maximum 15 percent rebate
available to large commercialfiindustrial customers who pursue significant demand-side
management/energy conservation projects). SSI has purchased and installed two new plastic injection
molding machines (at a total cost of $161,200) — a Toshiba EC65N, all electric machine, and an Arburg
Allrounder 420 A all electric machine. Both units are electric -fired, and have replaced two larger,
hydraulic, reciprocating injection molding machines. The new Toshiba and Arburg models, combined,
utilize fifty (50) percent less electricity than the two older machines. The two old units were hydraulic,
and were designed to operate at full capacity, virtually non-stop during production hours; the two new
models are equipped with multiple speeds, and an "idle" mode, which will allow SSI operators to vary the
speed or shut the machine down during non -production time. This variable speed capability, along with
engineered equipment improvements, lead to reduced energy consumption and increased operator
flexibility during manufacturing hours.
SSI staff will continue to replace aging, inefficient plastic injection molding machines throughout the
facility in 2005. Staff is also considering utilizing the Public Benefits Program grant (if approved) towards
the purchase of additional, high efficiency equipment. The City of Lodi encourages large commercial and
industrial customers to reinvest these grant dollars in their local operations, particularly in the area of
additional energy efficiency improvements.
Adopt a resolution authorizing the City Manager to allocate
A Public &WwFts program grant in the amount of $24,180
to Sc kwtift Spealities Incorporated for a dernand-side
management project. (EUD)
January 19, 2005
Page 2
Electric Utility staff respectfully recommends approval of this Public Benefits Program grant as a
qualifyirig component of the City of Lodi Public Benefits Program, in the category of demand-side
management or energy conservation.
FUNDING: 164605 — Public Benefits Program (Category: Demand-side management)
Funding AWaval:
Krueger, Finance Director
A //� dA
Alan N. Vallow
Electric Utility Director
PREPARED BY: Rob Lochner, Mgr. Cust. Service & Programs
ANV/RUrndw
Attachments
CC:
RESOLUTION NO. 2005-14
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO PROVIDE A PUBLIC BENEFITS
PROGRAM GRANT — DEMAND-SIDE MANAGEMENT PROJECT
TO SCIENTIFIC SPECIALTIES, 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 an historical electric revenue requirement; and
WHEREAS, the requirement amounts 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, the City of Lodi's Public Benefits Program is comprised of four
segments or customer groups: commercial/industrial, residential, community/non-profit,
and municipal; and
WHEREAS, Scientific Specialties, Inc. (SSI), located at 1510 Thurman Street,
manufactures specialized plastic products that are predominately used in the medical
and research fields and are provided to organizations throughout the world; and
WHEREAS, in late 2004, facility engineers and maintenance operators at SSI
began the process of replacing inefficient and aging plastic injection molding machines
inside the plant; and
WHEREAS, SSI is seeking a utility rebate in the amount of $24,180, which
reflects the maximum 15 percent rebate available to large commercial/industrial
customers who pursue significant demand-side management/energy conservation
projects; and
WHEREAS, SSI has purchased and installed two new plastic injection molding
machines at a total cost of $161,200: 1) a Toshiba EC65N all electric machine and
2) Arburg Allrounder 420 A all electric machine. Both units are electric -fired and have
replaced two larger, hydraulic, reciprocating injection molding machines; and
WHEREAS, the new Toshiba and Arburg models combined utilize 50 percent
less electricity than the two older machines. The two old units were hydraulic and were
designed to operate at full capacity, virtually non-stop during production hours; the two
new models are equipped with multiple speeds and an "idle" mode, which will allow SSI
operators to vary the speed or shut the machine down during non -production time. This
variable speed capability, along with engineered equipment improvements, lead to
reduced energy consumption and increased operator flexibility during manufacturing
hours; and
WHEREAS, Electric Utility staff respectfully recommends approval of this Public
Benefits Program grant as a qualifying component of the City of Lodi Public Benefits
Program in the category of demand-side management or energy conservation.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
authorizes the City Manager to provide a Public Benefits Program Grant -- demand-side
management project to Scientific Specialties, Inc., in the amount $24,180.
Dated: January 19, 2005
I hereby certify that Resolution No. 2005-14 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 19, 2005, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce,
and Mayor Beckman
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2005-14