HomeMy WebLinkAbout6/6/2001 - STAFF REPORTS (26) a
DATE: June 6, 2001
TO: City Council
FROM: Director of Economic Development
FUNDING REQUEST TO COMPLETE PALM SPRINGS ELECTRIC LOAD/COST
REDUCTION PROGRAM
RECOMMENDATION:
That City Council approve an expenditure in an amount not to exceed $12,000 to
implement the Palm Springs Electric Load/Cost Reduction Program. The
expenditure will be paid from the Economic Development Department 2000-01
budget, account number 1400-43200.
SUMMARY:
The objective of the Program is to provide complimentary energy audits to 200
businesses in the City of Palm Springs, to determine load reduction, retrofit and
behavioral changes, to reduce their energy usage and therefore their electric bills.
Target businesses include hospitality (restaurant), small industrial/commercial and
retail trade businesses.
BACKGROUND:
This program began as part of CVAG's effort to identify strategies for the Coachella
Valley to deal with the energy crisis. This program is part of a targeted load reduction
strategy adopted by CVAG.
The City of Palm Desert funded the pilot program which was administered by the
Coachella Valley Economic Partnership (CVEP ) and the Palm Desert Chamber of
Commerce targeting 100 businesses in Palm Desert. The results of the pilot (report
attached)were so encouraging that the City of Palm Desert immediately appropriated
funds for another 300 businesses. The City of Desert Hot Springs and the County
of Riverside have also recently joined the effort and added funding for another 300
businesses. Total funding for the program currently stands at $42,000 for 700
targeted businesses.
Since other communities have found the energy audit program to be an important
business retention tool, Palm Springs should develop a Business Energy
Audit/Conservation/Efficiency Program. In this valley wide effort, we propose that
the City of Palm Springs partners with the Coachella Valley Association of
Governments, the Coachella Valley Economic Partnership, the Palm Springs
Economic Development Corporation, and Southern California Edison, to develop the
program in Palm Springs. (Note: This energy audit program fits with our Business
Retention and Expansion Program.)
Representatives from Southern California Edison will provide energy audit training
to temporary employees of the Palm Springs EDC. CVEP Officials will work with the
City of Palm Springs Economic Development Department to identify target
al
businesses from the Palm Springs Business Retention and Expansion Program and
other sources.
PSEDC will make mail and phone contact with the identified group to schedule
individual times for audits. PSEDC will provide office space. Upon arrival at the
business, PSEDC will be provided a copy of the business' last two energy bills to
provide base line numbers. PSEDC will then complete the audit, providing specific
recommendations regarding retrofits, load conversion and behavioral changes.
PSEDC will provide businesses audited with immediate feedback at the conclusion
of the site visit. Feedback will be in the form of specific recommendations (in writing)
including referrals to persons(companies)that can complete retrofits that are outside
the ability of most business operators. Where possible, written recommendations
shall include estimates of proposed energy savings, both in cost ($) and usage
(kWh), for each suggestion provided.
PSEDC will provide follow-up via phone to businesses within 30 days after
completion of the audit to help determine which recommendations have been
completed. A final report or tally for each business will be provided back to the
project coordinator(CVEP)for each business audited to monitor overall effectiveness
of the program.
From acceptance of this proposal, training can occur within 10-15 days. Contact with
companies and field audits can be completed within 30 days thereafter with follow up
and final reporting within 75 days. With Palm Springs Council acceptance June 6,
auditors could be on the street as soon as June 15, audits complete by mid July and
final report in August 2001.
The proposed budget is $12,000 to be provided by the City of Palm Springs through
the overall program coordinator, the Coachella Valley Economic Partnership. Total
funding will be passed-through to the PSEDC which will administer the outreach to
businesses. PSEDC will be paid $60 for each audit/follow-up completed. Any
unused funds will be refunded to the City in total.
Dire for onomic vefbpment
APPROVED `
City Manager
Attachments:
1) Minute Order
2) Energy Audit Pilot Program
REVIEWED BY DEPT.OF FINANCE
F f
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P 73-710 Fred Waring Drive, Suite 114
41
a Palm Desert,California 92260
CI iAMRER in COMMERCE Phone (760) 346-6111 •Fax (760) 346-3263
www.pdcc.org•e-mail: info@pdcc.org
ENERGY AUDIT PILOT PROGRAM
REPORT
April 24, 2001
OVERVIEW This was a cooperative pilot electrical energy load/cost reduction
program undertaken by the Coachella Valley Association of
Governments, Coachella Valley Economic Partnership, the City of
Palm Desert, Southern California Edison and the Palm Desert
Chamber of Commerce. The goal was to provide complimentary
energy audits to 100 businesses in Palm Desert in an effort to help
them reduce their usage and energy costs.
IMPLEMENTATION The Palm Desert Chamber of Commerce implemented the pilot
program with the assistance of Southern California Edison who
provided 2-days of intense training to six (6) auditors.
PRELIMINARY RESULTS
CONTACTS 205 businesses were randomly selected. Of those,
109 energy audits were completed (53%)
59 businesses declined to be audited
32 no response (no returned calls after repeated attempts)
5 miscellaneous (out of business,no shows,misc.)
TARGETED There were 14 items targeted for evaluation by the auditors. Of
RECOMMENDATIONS the 109 businesses audited, the percentage of businesses that
were recommended to address the specific targeted items are as
follows:
95% Replace fluorescents with Tas&electronic ballasts
85% Clean cooling coils & condenser coils
81% Maintain AC filters, belts & bearings
72% Reduce wattage or install energy efficient lamps
63% Clean lamps, fixtures &diffusers
61% Install window covering (including window film)
56% Turn off unused lights
56% Set thermostats to 78 or higher
31% Cool only occupied rooms
30% Install motion switches for conference rooms,banquet rooms
25% Install higher rated AC unit
22% Replace/change location of thermostat
21% Install AC tlmeclock for shutdown for non-business hours
7% Install pre-coolers on AC unit
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OTHER The other top recommendations to the 109 businesses audited,
RECOMMENDATIONS and the percentage with that recommendation, include:
22% Retrofit exit signs with LED kit or replace with new LED
21% Install motion sensors or timers for restroom lights &fans
18% Remove burned out lamps & ballasts (they still consume energy)
15% Close doors
10% Clean intake & outflow AC registers
6% Paint walls and/or ceiling lighter color
Other recommendations include:
Install programmable thermostat
Replace gaskets on refrigerators and/or coolers
Use fans and/or pre-cool building with early morning air
Use T10s lamps instead of T12s
Use reflective roof coating
Move heat producing equipment from under thermostat(i.e.
coffee pot,photocopier,etc.)
REBATES Of the 109 businesses that were audited, 17 have already applied
for Southern California Edison rebates.
ESTIMATED LOAD According to Southern California Edison, those businesses
REDUCTION audited used 11,217,558 kwh of energy during the last 12
months.
Edison estimates that if the businesses follow through with the
recommendations of the auditors, a 15% reduction in energy
consumption will be realized.
This calculates to a total reduction of 1,682,633 kwh for the
109 audited businesses.
ESTIMATED COST Based upon the current blended rate of$.11 kwh, the
REDUCTION recommendations will result in the following dollar savings:
100% follow through results in $185,089 savings
90%follow through results in $166,581 savings
75%follow through results in $138,817 savings
50%follow through results in $ 92,545 savings
25%follow through results in $ 46,272 savings
Based upon the upcoming blended rate of$.15 kwh, the
recommendations will result in the following dollar savings:
100% follow through results in $252,395 savings
90%follow through results in $227,156 savings
75% follow through results in $189,296 savings
50%follow through results in $126,198 savings
25%follow through results in $ 63,099 savings
All participating businesses will be contacted by phone within 30-45 days in order to ascertain
the recommendation follow through rate and to provide additional assistance and/or referrals as
necessary.
MINUTE ORDER NO. 6858
APPROVING THE FUNDING TO THE
PALM SPRINGS ECONOMIC
DEVELOPMENT CORPORATION, IN AN
AMOUNT NOT TO EXCEED $12,000, TO
IMPLEMENT AND COMPLETE A SMALL
BUSINESS ELECTRIC LOAD/COST
REDUCTION PROGRAM FOR
BUSINESSES LOCATED IN THE CITY
OF PALM SPRINGS.
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I HEREBY CERTIFY that this Minute Order, approving the funding to the Palm
Springs Development Corporation, in an amount not to exceed $12,000, to
implement and complete a small business electric load/cost reduction program
for businesses located in the City of Palm Springs, was adopted by the City
Council of the City of Palm Springs, California, in a meeting thereof held on the
6th day of June, 2001.
PATRICIA A. SANDERS
City Clerk