AGENDA TITLE:
title
Adopt a Resolution Authorizing City Manager to Execute No Cost Amendment No. 2 to Professional Services Agreement with Efficiency Services Group, LLC of Hillsboro, OR for DIY Commercial Lighting Pilot Program (EU)
end
MEETING DATE:
April 2, 2025
PREPARED BY:
Astrida Trupovnieks, Key Accounts and Customer Programs Specialist
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute a no cost Amendment No. 2 to the Professional Services Agreement with Efficiency Services Group LLC, of Hillsboro, OR for a DIY commercial lighting pilot program.
body
BACKGROUND INFORMATION:
Efficiency Services Group, LLC (ESG) has been Lodi Electric Utility’s (LEU) energy advisor and third-party administrator of a variety of rebate, direct install, and low-income assistance programs since 2014. The current Professional Services Agreement (Agreement) with ESG was executed on July 7, 2022 for a three-year term ending on June 30, 2025 in the amount of $1,063,758. It included an additional one-year extension option which was approved on February 10, 2025 with no additional funds added.
Early last fiscal year, ESG reported a high saturation rate associated with the residential direct install program reflected by a trending decrease in residential demand. Based upon the success of DIY commercial lighting programs in other jurisdictions, ESG recommended the implementation of a similar program in Lodi. ESG proposes to use existing program funds originally targeted to fund the residential direct install program to fund the proposed DIY commercial lighting program. The remaining residential direct install budget of approximately $300,000 will provide funding for the proposed pilot program and fund any residential projects requests that may be made.
Based on City Council priorities, it is recommended to implement an initial pilot for businesses on Central Avenue between Lodi Avenue and Tokay Street, and between Cherry Street and Watson Street to upgrade both interior and exterior lighting. ESG is available to begin marketing and outreach immediately upon approval.
ESG will assess existing lighting, identify specific lighting retrofit fixtures, as well as deliver and inspect the installations. In general, business owners are able to install the improvements themselves, or hire a contractor for a more extensive replacement. Since project costs can vary widely, a funding cap per business has not yet been established. To date, ESG manages project funds early during the field assessment phase on a case-by-case basis. This program provides businesses with an additional resource to enhance the efficiency, safety and aesthetics of their establishment, while advancing the Council goals by expanding economic opportunities in the Central Avenue commercial corridor. Funds will be available on a first come, first served basis.
This proposed program will enhance the existing LEU portfolio of energy efficiency rebates and financial assistance programs available to commercial and industrial customers. If deemed successful, the program could expand to other locations throughout the City.
Staff recommends approval of a no cost Amendment No. 2 to ESG’s Agreement to implement a DIY commercial lighting pilot program on Central Avenue between Lodi Avenue and Tokay Street, and between Cherry Street and Watson Street.
STRATEGIC VISION:
2B. Economic Development: Expand and diversify economic opportunities.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Funds included in ESG’s existing authorized contract.
_______________________________________
Jeff Berkheimer
Electric Utility Director
_______________________________________
Scott R. Carney
City Manager