HomeMy WebLinkAbout- - Energy Leadership Partnership Report - 1/5/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: JANUARY 5, 2010 ITEM NUMBER:
SUBJECT: ENERGY LEADERSHIP PARTNERSHIP BETWEEN SOUTHERN
CALIFORNIA EDISON AND THE CITY OF COSTA MESA FOR
2010-2012
DATE: DECEMBER 15, 2009
FROM: CITY MANAGER'S DEPARTMENT/ADMINISTRATION
PRESENTATION THOMAS R. HATCH, ASSISTANT CITY MANAGER
BY: DANIEL K. BAKER, MANAGEMENT ANALYST
FOR FURTHER INFORMATION DAN BAKER — (714) 754-5156
CONTACT:
RECOMMENDATION:
Staff recommends that the Mayor and City Council:
1. Adopt Resolution No. entitled, "A Resolution of the City Council of the
City of Costa Mesa, Declaring Support for an Energy Partnership between
Southern California Edison and the City of Costa Mesa."
2. Authorize the City Manager to execute an Energy Partnership Agreement
between the City of Costa Mesa and Southern California Edison for 2010-2012.
BACKGROUND:
In April of 2009, the City of Costa Mesa signed a Partnership Agreement with Southern
California Edison (SCE). This agreement allowed the use of Public Utilities Commission
(PUC) funds with the goal to support energy efficiency initiatives and to improve the
energy efficiency of City equipment and buildings. While this program was delayed,
SCE offered an interim program to partner with the City of Costa Mesa and the three
other cities in our partnership to implement the Orange County Cities Energy Efficiency
Partnership. This partnership framework provides enhanced incentives for energy
savings projects of City facilities and funding for outreach, education and marketing of
"green" construction in the City in the interim for 2009.
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The funds utilized for these activities are Public Goods Charge funds that SCE is
required to collect by the PUC. SCE administers these funds with PUC oversight for
projects that reduce energy needed to provide services. This new agreement will
provide additional funds to the City when investing in energy savings projects for City
facilities. Additionally, it will extend the effectiveness of existing and planned Capital
Improvement Plan (CIP) funding that makes City facilities and infrastructure more
energy efficient.
In September of 2009, the PUC announced the release of $3.1 billion in support of
energy efficiency programs for 2010-2012 with a minimum of $4 million available to our
four -city partnership. In order to gain access to these funds, the City of Costa Mesa is
required to re-enter into a joint agreement with SCE for the funding period between
2010-2012 (see Attachment 1).
This agreement requires that the City Council adopt a resolution (see Attachment 2)
supporting the City's participation in the program, including authorization to enter into
the Agreement for the 2010-2012 period.
ANALYSIS:
The agreement will assist the City by providing better information about how to prioritize
energy efficiency upgrades, reduce annual maintenance costs, increase cost savings,
conserve resources and reduce green house gas emissions. Additionally, it allows the
City to gain access to approximately $3.1 billion in funding provided by the California
Energy Commission.
The overall program strategy is to partner with SCE to provide energy information, and
to identify and implement sustainable energy efficiency activities. The City and SCE will
leverage the strengths of each of the partners to cost effectively deliver energy and
demand savings. If approved, this agreement will allow the City to be reimbursed for
Kilowatt hours saved for municipal retrofit projects and a host of other related energy
efficiency activities.
ALTERNATIVES CONSIDERED:
To enter into the Energy Partnership with SCE
FISCAL REVIEW:
An initial amount of $4,000,000 has been allocated to the Orange County Energy
Partnership of the cities of Costa Mesa, Fountain Valley, Huntington Beach and
Westminster. By entering into this agreement the City of Costa Mesa will directly
benefit from hundreds of thousands of dollars or more in funding to supplement our
energy efficiency goals
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LEGAL REVIEW:
Legal has reviewed the documents and approved them as to form.
THOMAS R. HATCH DANIEL BAKER
Assistant City Manager Management Analyst
ATTACHMENTS: 1 Southern California Edison Partnership Agreement
2 Energy Partnership Resolution
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