AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute Three-Year Professional Services Agreement with Efficiency Services Group, LLC, of Hillsboro, Oregon to Administer Keep Your Cool Commercial Refrigeration Program ($300,000) (EU)
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MEETING DATE:
June 5, 2024
PREPARED BY:
Astrida Trupovnieks, Key Accounts and Customer Programs Specialist
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RECOMMENDED ACTION:
Adopt a Resolution Authorizing City Manager to Execute Three-Year Professional Services Agreement with Efficiency Services Group, LLC, of Hillsboro, Oregon to Administer Keep Your Cool Commercial Refrigeration Program ($300,000).
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BACKGROUND INFORMATION:
Lodi Electric Utility (“LEU”) seeks to expand its Keep Your Cool Commercial Refrigeration Program (“KYC Program”) to its commercial customers by implementing a turnkey direct install program of refrigeration equipment upgrades.
Since 2020, the KYC Program has been offered to Lodi businesses at no charge and is administered by ESG, the City’s trusted energy efficiency advisor, with actual work completed by ESG’s subcontractor Redwood Energy Services. LEU budgets approximately $50,000 each year to support this program. Since implementation of the program, approximately 60 businesses have been assisted, saving an estimated 520,000 kilowatt-hours of energy.
LEU is seeking to expand this program over a period of three years and increase the available funding offered to customers from $50,000 to $100,000 annually through ESG and Redwood Energy Services, who will continue to develop program materials, identify and schedule customers, purchase equipment upgrades, provide quality assurance and estimate energy savings for regulatory purposes. Two large Lodi grocers have contacted ESG, and are anticipated to be the program’s first customers in early Fiscal Year 2025. This program is one of many programs implemented by LEU to help meet energy efficiency targets established every 10 years in accordance with Assembly Bill 2021, which requires publicly owned utilities to identify all potentially achievable cost-effective energy efficiency savings, and to set targets for energy efficiency for the upcoming 10-year period.
By upgrading to energy-efficient refrigeration measures, Lodi businesses can significantly reduce their energy usage and costs while assisting the City in meeting the statewide commitment to achieving cost-effective and feasible energy efficiency goals and targets.
Per Lodi Municipal Code Section 3.20.070, bidding may be dispensed with when the City Council determines that the purchase would be in the best interest of the City. ESG continues to be LEU’s trusted energy advisor and third-party administrator of all energy efficiency and electrification rebate programs and is also tasked with tracking and reporting all data associated with these respective programs. LEU continues to maintain efficiencies for customers by having one single vendor to administer these programs as opposed to coordinating the services of multiple vendors. ESG also provides similar services to other Northern California Power Agency members resulting in economies of scale for all members.
STRATEGIC VISION:
2A. Economic Development: Develop long-term economic development strategy.
FISCAL IMPACT:
Approximately $100,000 annually for a total three-year not-to-exceed cost of $300,000 for the period July 1, 2024 - June 30, 2027.
FUNDING AVAILABLE:
Public Benefits Fund Account No. 50465100-72920 effective July 1, 2024. Funding is allocated each year as part of the annual budget planning process.
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Jeff Berkheimer
Electric Utility Director
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Melissa Munoz
Accounting Manager
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Andrew C. Keys
Interim City Manager