HomeMy WebLinkAboutAgenda Report - May 15, 2019 C-07AGENDA ITEM C-1
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AGENDA TITLE
MEETING DATE:
PREPARED BY:
Adopt Resolution Authorizing City Manager to Execute Professional Services
Agreement with Efficiency Services Group (ESG), LLC, of Hillsboro, Oregon, for
Energy Efficiency Services, New Program Design and Administration ($458,600)
May 15,2019
Business Development Manager
REGOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Professional
Services Agreement with Efficiency Services Group (ESG), LLC, of
Hillsboro, Oregon, for Energy Efficiency Services and
Administration, in the amount not to exceed $458,600.
BACKGROUND INFORMATION: Since 2014, the Efficiency Services Group (ESG), LLC has provided
turnkey energy efficiency services designed to achieve kilowatt hour
savings for residential and commercial utility rate payers via: 1)
residential snapshot energy audits and direct installation of energy efficiency measures in the field, 2)
review and approval of rebate applications for Energy Star-rated appliances and systems for residential
and commercial customers, 3) commercial customers'energy savings analysis and consultation, and 4)
implementation of the right customer service culture to maximize customer satisfaction. ln addition to
these customer-oriented activities, ESG staff monitors and reports state and federal energy-related
regulatory changes, represents Lodi Electric Utility at NCPA demand management meetings on a regular
basis, and conducts annual compliance reporting, as required by State law.
Since commencement of the original contract, the energy efficiency services program has delivered $2.8
million in rebates to 1 ,1 08 residential customers and 134 businesses in Lodi. ln addition, the Direct
lnstall Program has provided energy-savings measures into 956 Lodi households. The program has
provided over 14 million kilowatt hours of energy savings which translates to enough power for over 2000
homes in California for a year.
ln addition to the same services described above, the attached Scope of Services requires ESG to
develop, implement and administer a new Electric Vehicle (EV) Program that will be funded by the
State's Low Carbon Fuel Standard (LCFS) program and greenhouse gas funding. An identification of the
services and a breakdown of costs are as follows:
Yr. 1 Yr.2 Total
New Electric Vehicle Program Design, lmplementation and Administration $ 5,000 $0 $ 5,000
Residential and Commercial Program Administration, Reporting, and All Field
Services
$ 90,300 $ e0,300 $180,600
Residential SnapshotAudit and Direct lnstall Measures $125,000 $120,000 $245.000
Marketing Su pport $5,000 $5,000 $10,000
ïravel ( professional staff and field technicians)$9,000 $9,000 $18,000
Total $234,300 $224.300 $458,600
APPROVED
Stephen , City Manager
Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Efficiency Services Group (ESG),
LLC, of Hillsboro, Oregon, for Energy Efficiency Services, New Program Design and Administration (9458,600)
May 15,2019
Page 2 oÍ 2
Staff recommends ESG continue as EU's energy services administrator. The company provides many of
the same serv¡ces to NCPA members, and as a result, members, including Lodi Electric benefits from
economies of scale where costs are shared. Equally important, is the efficiency provided by ESG in
mandatory reporting in compliance with State law for all member agencies. The company has
consistently demonstrated its superior efficiency and effectiveness in the field, its ability to keep secure
confidential customer data, its expertise in the energy industry, and its responsiveness to the needs of
Lodi Electric Utility.
For City Council's information, staff provides the following essential points about the new contract with
ESG:
1. The total not to exceed cost for the new contract is 9458,600 as compared to the existing contract
which expires June 30,2019 ($430,000). This represents a 6.65 percent increase.
2. The change is attributable to:. New Electric Vehicle Program Design ($S,000). lncreased Field Services Administration, Customer Service, Analysis and Reporting ($t2,600)¡ lncreased Snapshot ResidentialAudit and Direct lnstall Measures ($7,000). Marketing Support for New and Existing Programs ($10,000)¡ Decreased Travel Budget ($6,000)
FISCAL IMPACT:The increased costs of the new contract as compared to the previous two
year contract term is based upon: 1) new EV program design, 2) an
anticipated increase in field services support, administration, customer
service, and reporting associated with the new program, 3) expanded
snapshot audit and direct install activity, and 4) a 3 percent inflationary
increase in the monthly administrative expense. These services have
historically been funded from the Public Benefits Fund.
FUNDING AVAILABLE:Contingent on Fiscal Year 2019/20 Budget approval, Fund/Account
#50465001 -72450 (Public Benefits Administration) and Fund/Account
#50465100/7 (Public Benefit Demand Management) will be available.
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Andrew Keys
Deputy City Manager/lnternal Services Director
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Astrida Trupovnieks
Business Development Manager