2000 AGN JAN 18 I13 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council Meeting of January 18, 2000 TO: Honorable Mayor and City Council APPROVAL: Henry T. Garcia, City Manager 6V j FROM: Thomas K. Clarke, Utility Directo' SUBJECT: APPROVAL OF INDUSTRIAL PUBLIC BENEFIT PROGRAM CONTRACT WITH ENERGY MASTERS INTERNATIONAL DATE: Thursday, January 6, 2000 BACKGROUND In response to greater competition, the Colton Electric Utility has been conducting an active dialogue with many of our largest electricity customers. This program, called the Colton Utility Services Partnership, deals with the full spectrum of electric service: reliability, power quality, efficiency, customer service, safety, and rates. The program includes the return of a portion of the public benefit charges paid by each of these customers back to them in the form of an incentive to improve their energy efficiency. Thus, the program improves the profitability of key industries in the City of Colton, which in turn provides them an incentive to expand their operations here. The program has also been successful in improving relations between customers and the City. DISCUSSION/ANALYSIS Energy Masters International (EMI) is ready to proceed with an efficiency program with a Colton Electric Utility customer. The specific program conforms to the requirements of AB 1890, and will be carried out under a contract between the customer and EMI. EMI is now requesting the appropriate portion of the customer's public benefit charges from the City to facilitate the project. A copy of the agreement is attached for your review. ALTERNATIVES Specify a greater or lesser amount of incentive or decline the project. Greater amounts should not exceed the customer's projected Public Benefit Charge payments of $20,000. FINANCIAL IMPACT Funds ($25,000) for the project are available from Account Number 520-8000-8038-3890-0107, Public Benefits — Industrial. The FY 1999-2000 budget for this account is $325,000. ENVIRONMENTAL IMPACT None. RECOMMENDATION Staff recommends that the City Council approves the attached agreement between the City and Energy Masters International. Page 1 of 1 (w/attachment) Item #13