REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 1 to the Agreement for Services with E Source Companies, LLC, to Extend the Term, Expand the Scope, and Increase Maximum Compensation
Report
COUNCIL PILLAR
Promote Sustainability and Environmental Protection
BACKGROUND
The City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), provides electric utility services to approximately 58,000 residential, commercial, and industrial customers. In order to stay up to date on industry trends and best practices, SVP subscribes to a service provided by E Source Companies, LLC. (E Source). E Source is a research, consulting, and data science firm that provides electric and gas utilities with high quality reports in a variety of areas including: demand side management, key accounts programs, marketing and customer outreach, website best practices, emerging technologies, and renewable energy programs. E Source does primary and secondary research and creates reports which are made available to their subscriber base. E Source also provides an “Ask an Expert” hotline for utilities to ask questions about various topics or technologies. E Source will gather information on behalf of the requesting utility and once the question is answered, E Source makes the response available to all subscribers for future reference.
These technical support services support SVP’s Public Benefits program for funds to be used for education and program development and aligns with SVP’s Strategic Plan for Customer Engagement. The proposed recommendation allows the City Manager to execute additional amendments including contract extensions, increases to the scope of services, and increases to maximum compensation.
DISCUSSION
This recommendation is pursuant to Purchasing Code Section 2.105.100 (h) Idle Act “where formal bidding would not be useful or produce any advantage for the City”.
SVP is currently subscribed to the following services with E Source: Account Management Services, Business Marketing Services, Demand-side Management Services, and Technology Assessment Services. All of these subscription services include online access to a library of publications and events and Ask E Source for the content area. Additional service benefits are highlighted below:
• Account Management: Detailed industry overviews and energy efficiency strategies, access to benchmark results, and sector-specific analysis and reporting
• Business Marketing: Access to databases including print, audio, and video advertisements; access to survey results from utility marketing professionals, access to an online dashboard with information on the energy-management needs and attitudes of small, midsize, and large businesses across 17 sectors
• Demand-side Management: Database of more than 5,000 utility programs across North America and database of impact and process evaluations for programs
• Technology Assessment: Access to resource centers for smart thermostats, emerging tech, LED lighting, heat pump and electrification technologies, electric vehicles, market sector snapshots, and other technologies and access to results from Residential Utility Customer Survey, which reveals residential customers' preferences for technologies and technology
Included in the annual subscription services, E Source provides additional benchmarking services including;
• Benchmarking of SVP’s key business customers, which provides an insight on what these customers want from their utility, what is working well, and where they would like to see improvement.
• Benchmarking of SVP’s key customer program against that of other key accounts programs.
• Benchmarking of the utility’s website against other utility websites including providing a detailed report of the experience of actual website users, including what they liked, what they disliked, and where they ran into challenges. This information is available for consideration as the utility makes future website enhancements.
Although the annual value for these services is less than $150,000 and therefore does not require Council approval, staff anticipates using the service on an ongoing basis and therefore seeks Council approval for the aggregate spend amount inclusive of all renewals.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b)(2) in that the proposed actions are agreements for the purchase of products and services that are continuing maintenance and administrative activities.
FISCAL IMPACT
Funding for this agreement comes from restricted Public Benefit funds and Customer Engagement Operating Budget and does not impact customers’ rates or the General Fund. These technical support services meet the Public Benefits program mandated requirements for funds to be used for education and program development and aligns with SVP’s Strategic Plan for Customer Engagement.
The total cost of the Agreement will not exceed $183,061 in FY21/22. Funding for this contract is included in the Electric Department’s Electric Operating Grant Trust Fund Budget in the FY 2021/22 and FY 2022/23 Adopted Operating Budget.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Amendment No. 1 to the Agreement for Services with E Source Companies, LLC for a total cost not to exceed $183,061;
2. Authorize the City Manager to make minor changes to the attached Amendment subject to approval by the City Attorney as to form;
3. Authorize the City Manager to execute amendments to add additional subscription services subject to the appropriation of funds; and
4. Authorize the City Manager to execute up to nine (9) one-year options to extend this agreement including addition of additional subscription services subject to the appropriation of funds.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Original Agreement for Services
2. Proposed Amendment No. 1 to the Agreement for Services