REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement for Services with CRMOrbit, Inc. dba energyOrbit for a Rebate Processing System for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Department, Silicon Valley Power (SVP), primarily relies on manual processes for rebate management, while most electric utilities in California are using a rebate processing tool to increase capacity. This lack of a rebate processing tool limits SVP’s expansion and enhancement of its customer offerings.
California law mandates SVP to track and report on its use of public benefits funds for energy efficiency and low-income programs, as well as spending of funds received from the State of California for electric vehicles and chargers. SVP has largely used a combination of manual processes and third-party tools for tracking, and those methods do not scale easily with increased offerings or increased participation.
The Climate Action Plan states that the City’s main strategies for achieving carbon reduction in buildings and energy is to “shift to electric fuels in new and existing buildings to achieve net-zero carbon buildings” and “improve energy efficiency.” Customer programs can impact a customer’s decision to improve energy efficiency and reduce carbon. Using a tool that is capable of appropriately scaling to meet customer offerings and participation is an important step to improving participation.
Staff identified a rebate processing tool as a critical necessity to align with the goals of SVP, City Council, and our customers. This tool will streamline processing, enable paperless transactions, and ensure timely payment of customer rebates. It will also allow SVP to fulfill state reporting obligations more efficiently.
DISCUSSION
In August 2021, Turlock Irrigation District (TID) published a Request for Proposals (RFP) for a rebate management system. Through the RFP process, energyOrbit was selected for award and TID subsequently executed an agreement with energyOrbit on December 14, 2021. The term of TID’s agreement is five years through December 14, 2026.
Staff is recommending entering into an agreement with CRMOrbit, Inc. dba energyOrbit (energyOrbit) for a three-year term beginning on or around June 1, 2024. This recommendation is pursuant to City Code Section 2.105.270(d) which states that the City may, without observing formal bidding requirements, contract directly with a vendor at a price and on terms obtained through a competitive bidding process of another public agency, when such agreement resulted from a competitive bid process that meets or exceeds the City’s competitive bid process. The Purchasing Division Manager has determined that the above-mentioned competitive process meets or exceeds the City’s process; therefore, it is appropriate for the City to rely on TID’s competitive process and contract with energyOrbit.
To meet goals for enhanced programs around electrification and solar, SVP needs to significantly increase customer rebate processing capacity by the end of 2024. The energyOrbit rebate system is tailored for electric utility rebate tracking, payment, and reporting, and is currently used by several other utilities, including Roseville Electric. This software-as-a-service enables efficient, paperless processing and ensures timely payment of customer rebates. Additionally, it serves as a repository for various customer program information.
The proposed agreement with energyOrbit includes a one-time implementation fee and fixed subscription pricing for each year. The implementation payment schedule is tied to successful completion of key project milestones, with the remaining 10%, or $23,869.50, payable after the system goes live. The total implementation cost of the software is $238,695, of which a substantial portion is associated with initial setup. Initial setup involves creating process maps, cleaning up data, creating approval processes, and transferring historical data, among other things. Should SVP adopt another rebate processing system in the future, the implementation cost is expected to be greatly reduced because those initial setup activities will transfer over to the new system and those costs will not be incurred again.
Compensation in the agreement is outlined in Table 1 below.
|
Cost Element |
Cost |
|
One-Time Implementation Fee |
$238,695.00 |
|
Year 1 Software Subscription Fee |
$ 30,245.00 |
|
Year 2 Software Subscription Fee |
$ 31,152.35 |
|
Year 3 Software Subscription Fee |
$ 32,086.92 |
|
Subtotal |
$332,179.27 |
|
Contingency |
$ 17,820.73 |
|
Not-to-Exceed Maximum Compensation |
$350,000.00 |
TID’s agreement with energyOrbit ends on December 31, 2026. Typically, when leveraging another public agency’s agreement, it is the practice of the Purchasing Division to align the terms with the other agency’s agreement. In this case, SVP staff with the concurrence of the Purchasing Manager, is requesting approval for a term through April 30, 2027, as the software subscription with energyOrbit requires a full three years. Additionally, staff is requesting authority to further extend the term of the agreement in the event that TID extends their term.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 of the California Code of Regulations as the implementation of the rebate processing tool is an administrative activity which does not involve a commitment to any specific project which may result in a potentially significant physical impact on the environment.
FISCAL IMPACT
The compensation under the proposed contract with crmOrbit, Inc. is not to exceed $350,000 to provide licensing and implement a utility rebate processing, payment, and reporting solution.
Sufficient funds are available in the SVP Public Benefits Fund in the Electric Operating Grant Trust Fund.
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 <mailto:clerk@santaclaraca.gov> or at public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute the proposed Agreement for Services (Agreement) with CRMOrbit, Inc. dba energyOrbit for a Rebate Processing System for a three-year term beginning on or around June 1, 2024, with a maximum compensation not to exceed $350,000, subject to the annual appropriation of funds funded by Silicon Valley Power’s Public Benefit’s Program in the Electric Operating Grant Trust Fund; and
2. Authorize the City Manager to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) increase the maximum compensation by up to an additional $100,000 for a total maximum compensation not to exceed $450,000 in the event that SVP requires additional training, licenses, or features, and (b) exercise options to extend the term to align with the term of the Agreement with the lead agency, Turlock Irrigation District, subject to the appropriation of funds and review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Proposed Agreement with CRMOrbit, Inc. dba energyOrbit