REPORT TO COUNCIL
SUBJECT
Title
Action on a Services Agreement with CLEAResult Consulting, Inc. to Provide a Comprehensive Commercial Energy Efficient HVAC Program
Report
BACKGROUND
Silicon Valley Power (SVP) provides energy efficiency programs and customer services in accordance with California Public Utilities Code (PUC) Section 385 covering Public Benefits Charge, and with the City’s Public Benefits Program Policy Statement adopted by Council on May 12, 1998. State law requires that the utility charge a non-bypassable usage charge in order to fund cost-effective energy efficiency services and other activities. Staff has developed a wide range of cost-effective energy efficiency and renewable energy programs for customers.
In order to meet the needs of customers, SVP periodically issues Request for Proposals (RFP) for Third Party Energy Efficiency Programs including for commercial energy efficient heating, ventilation, and air conditioning (HVAC).
DISCUSSION
In April 2018, SVP issued a RFP for Third Party Energy Efficiency Programs. Program providers were asked to design programs that would serve SVP’s customer demographics and supplement SVP’s existing energy efficiency programs. SVP received three specific proposals for HVAC programs and is recommending an award to CLEAResult Consulting, Inc. (CLEAResult). The proposed Comprehensive Commercial Energy Efficient HVAC Program would target schools, retail, light industrial, and office buildings with single-zone packaged HVAC units to help reduce the energy consumption of their HVAC systems by up to 15% through tune-ups and controls upgrades. These customers require a targeted solution due to their relatively small size and the typical, “out-of-sight, out-of-mind” treatment of their HVAC systems. CLEAResult has a proven track record of achieving energy savings through this program in other utility service territories in California. CLEAResult will develop the marketing and outreach program, screen customers, train and screen trade allies that perform the tune-up and control upgrades, verify implementation, and collect and report on post-installation performance data. The Agreement also includes a pay-for-performance budget based on verified kWh energy savings. The program anticipates delivering 233 HVAC unit tune-ups and 155 control upgrades to reach the first year energy savings goal of 1,066,533 kWh.
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(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The total cost of the Agreement with CLEAResult will not exceed $344,934. Funding for this contract was included in the Electric Department’s FY 2018/19 Operating Grant 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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Approve the Services Agreement with CLEAResult Consulting, Inc. to provide a Comprehensive Commercial Energy Efficient HVAC Program in an amount not to exceed $344,934.
Staff
Reviewed by: John C. Roukema, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Agreement for the Performance of Services with CLEAResult Consulting, Inc.