HomeMy WebLinkAboutAgenda Report - March 4, 1998 (44)CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Professional Services Agreement for Public Benefits Charge Program Development
MEETING DATE: March 4, 1998
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution authorizing the City Manager to enter
into a professional services agreement with The Energy Solutions Company for Public
Benefits Cost (PBC) Program Services March 1998 - June 1999.
BACKGROUND: AB1890 (Electric Industry Restructuring) requires all California electric utilities, including
municipally -owned utilities such as Lodi, to expend PBC funds in four general categories:
(1) Cost-effective Demand-side Management;
(2) Renewable Energy Resources and Technologies;
(3) Research, Development and Demonstration Programs; and
(4) Services for Low Income Electric Customers (including Rate Subsidies)
Unlike Investor Owned Utilities, Lodi's City Council retains authority for allotment of its PBC funds to each of the above
categories.
The funding requested will be used to:
• Insure efficient and effective use of PBC funds.
• Identify current and past Lodi and NCPA projects and programs eligible for PBC credit.
• Identify opportunities to leverage PBC expenditures by obtaining matching funds and other grants.
• Identify potential program candidates for consideration by the City Council.
• Provide assistance in establishing appropriate PBC program record keeping and accounting.
Mr. Nelson of The Energy Services Company (TESC) is uniquely qualified to provide the above services. Prior to co-founding
TESC, he had over ten years of experience at the Western Area Power Administration (Western) in the areas of electric
energy efficiency planning, projects and grants as well as integrated resource planning. While at Western, Mr. Nelson worked
with all Northern California Power Agency member utilities which were customers of Western.
FUNDING: Electric Utility Reserves
Estimated Cost: $15,000
Expenditures are eligible for PBC credit
Prepared by: Jack Stone, Manager, Business Planning & Marketing
Funding Approval:
Vicky McAthie, Finance Director Alan N. Vallow
Electric Utility Director
ANV/JS/lst
c: City Attorney
Approved
Dn .n Fly
i City Manager
The Energy Solutions Company
11230 Gold Express Dr., #310-341 . Gold River, CA. 95670
Professional Services Scope of Work
for
The City of Lodi
Background
California's comprehensive electric restructuring legislation, AB 1890, became effective in September
1996. The law requires utilities such as the City of Lodi to establish a Public Benefit Charge (PBC).
The money collected from applying the PBC is to be used for public benefit programs identified in
one or more of four categories: (1) Demand-side Management, (2) Renewables, (3) Research,
Development and Demonstration, and (4) Low Income Programs.
Services to be provided
TESC will provide the services of Guy Nelson, Vice President to the City on a retainer basis. For
the retainer, Mr. Nelson will assist the City in establishing the PBC and identifying programs for
funding by the money collected from the charge that meets the intent of the Law.
Mr. Nelson will also be available for up to 4 hours per month for telephone consultation related to
the PBC and public benefit programs. Mr. Nelson will also provide reports (with draft reviews) to
the City on a public benefit program analysis. The report will contain an executive summary,
introduction, discussion of options, discussion of flexibility, the impact on the City's IRP to Western,
and appropriate appendices.
Based on the report, Mr. Nelson will assist the City in developing a plan to establish and implement
a Public Benefit Program which meets the community's needs and brings significant good will to the
City. Mr. Nelson will also be available, on an on-call basis, to assist the City in implementing the
Program. The program could include, but is not limited to,
• Low Income Rate Relief
• Pubic Education (a)
• Geyser Effluent Project
Bill Inserts (a)
Customer Distribution Upgrades
Customer/Employee Newsletters (a)
31E Science Bowl Sponsorship
Ground Source Heat Pump Demos
Energy Audits
* Electric Vehicle Demo
* Web Page (a)
* Reinjection Project
* Customer Surveys (a)
* PV and other Distributed Generation
* Western Workshops
* Utility Forum Sponsorship
* Energy Efficient Building Programs
* High Bill Complaint Programs (a)
(a) The costs of these activities can be prorated between public benefit and other programs.
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Billing and Terms
TESC agrees to provide the above services at the retainer rate of $500.00 per month, Additional services,
requested and preapproved by the City, other than those provided above will be billed at $75.00 per hour.
TESC will submit monthly bills to the City. The Department will pay the bills within 45 days of receipt. TESC
services to the City begin on March 16, 1998, and continue through June 30, 1999 subject to cancellation by
either party with a one month notice. Total costs of services under this contract will not exceed $15,000.00
unless agreed upon by the two parties.
Milestones
FY 1997
March - TESC submits a draft report to the Department on the Public Benefit Program Options
April - TESC submits a revised draft to the Department on the Program Options
May - TESC submits a Final Report to the Department on the Program Options
May - TESC presents specific Public Benefit Program activities that show the most promise to the City
June - TESC presents a draft action plan to develop and implement the Lodi Public Benefit Program
June - TESC presents a final action plan and assists the City in implementing the plan
FY 1998
July 1998 - June 1999 Plan progress review, evaluation and updating.
Both parties agree to the terms, conditions, and descriptions of this contract by their signatures below.
By: By:
Guy R. Nelson H. Dixon Flynn
The Energy Solutions Company City Manager
Date: Date:
APPROVED AS TO FORM:
14VI2Z e.
R A. Hays
City Attorney
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ATTEST:
Alice M. Reimche
City Clerk
RESOLUTION NO, 98-38
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ENTER A PROFESSIONAL SERVICES
AGREEMENT WITH THE ENERGY SOLUTIONS COMPANY FOR
PUBLIC BENEFITS COST (PBC) PROGRAM SERVICES
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WHEREAS, the State has mandated through AB1890 (Electric Industry
Restructuring) effective January 1, 1998, that all California electric utilities, including
municipally -owned utilities such as Lodi, be required to expend PBC funds in four
general categories:
(1) Cost-effective Demand-side Management;
(2) Renewable Energy Resources and Technologies;
(3) Research, Development and Demonstration Programs; and
(4) Services for Low Income Electric Customers (including Rate Subsidies); and
WHEREAS, unlike Investor Owned Utilities, the City of Lodi retains authority for
allotment of its PBC funds to each of the above categories; and
WHEREAS, the funding requested will be used to:
(1) Insure efficient and effective use of PBC funds; and
(2) Identify current and past Lodi and NCPA projects and programs eligible
for PBC credit; and
(3) Identify opportunities to leverage PBC expenditures by obtaining
matching funds and other grants; and
(4) Identify potential program candidates for consideration by the City
Council; and
(5) Provide assistance in establishing appropriate PBC program record
keeping and accounting.
BE IT RESOLVED, that the
Manager to execute a Professional
Company for Public Benefits Cost
through June, 1999.
Dated: March 4, 1998
--------------------
Lodi City Council hereby authorizes the City
Services Agreement with The Energy Solutions
(PBC) Program Services effective March, 1998
I hereby certify that Resolution No. 98-38 was passed and adopted by the Lodi
City Council in a regular meeting held March 4, 1998 by the following vote:
AYES: Council Members - Johnson, Land, Mann, Pennino
and Sieglock (Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
ABSTAIN: Council Members - None
lk
ALICE M. R. IMCHE
City Clerk
98-38