10-18-2013 BPU RPT 07 - Laserfiche WebLink

Home

BOARD OF PUBLIC UTILITIES DATE: October 18, 2013 ITEM NO: 7 SUBJECT: THE NON - RESIDENTIAL LIGHTING INCENTIVE REBATE FOR THE RIVERSIDE NEW CAR DEALERS ASSOCIATION ISSUE: The item for Board of Public Utilities consideration is approval of an incentive payment in the amount of $83,961.45 for the installation of a new energy efficient, Light Emitting Diode (LED) freeway sign at the Riverside Auto Center. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve a rebate in the amount of $83,961.45 to the Riverside New Car Dealers Association for the installation of a new energy efficient, Light Emitting Diode freeway sign at the Riverside Auto Center. BACKGROUND: The Riverside Auto Center and its associated new car dealerships are collectively one of Riverside Public Utilities' (RPU) largest groups of customers. The Auto Center is comprised of 13 independent auto dealerships and has been an important part of the local Riverside business community for almost 50 years. In addition to being one of RPU's largest customers, the Auto Center is a significant employer with a combined workforce of over 1500 employees. The dealers also provide a significant contribution to the City's local tax base through both property and sales tax revenue. Vehicle sales are one of the City's largest sources for sales tax generation. In 2010, the Riverside Auto Center Association began the process of planning for a new state -of- the -art, LED sign to replace the existing obsolete and inefficient incandescent State Route 91 sign at a cost of approximately $1,000,000. The new sign, located adjacent to the freeway, is a substantial enhancement to the Riverside Auto Center's previous advertising capabilities. Since the Association was proposing an upgrade to a much larger sign with full color display, the project required additional land use approvals and incurred costs associated with these approvals. Additionally in 2011, the Association was required to form a Business Improvement District (BID) for the ownership, operation, and maintenance of the new freeway sign. As planning for the sign progressed, the Association approached RPU for consideration of a rebate on a new energy efficient freeway sign that would utilize current state -of- the -art, energy efficient, LED technology. RPU will be able to claim over 1,000,000 kWh savings associated with this project toward its annual kWh savings goals. The Association also requested that RPU waive its normal rebate program cap of $25,000 per customer, per year. Under the implementation guidelines for Public Benefits Programs, the Public Utilities General Manager has the authority to modify or waive certain program requirements. The Association is an umbrella organization for all 13 independent auto dealerships at the Auto Center that are RPU customers. Since all 13 dealerships contributed separately to the cost of the sign project, it was determined that there was sufficient justification to approve a one -time waiver of the standard program cap.