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Home My WebLink AboutStaff Report 2215City of Palo Alto (ID # 2215) Finance Committee Staff Report Report Type:Meeting Date: 11/1/2011 November 01, 2011 Page 1 of 6 (ID # 2215) Council Priority: Environmental Sustainability Summary Title: Amendments to Contracts OPOWER & Ecology Action Title: Staff Recommendation that Finance Commitee Recommend Council: 1) Approve Amendment No. 1 to Contract No. C11140925 with Ecology Action for up to $300,000 in Additional Funds for Additional Business Energy Efficiency Rebates for a Total Not to Exceed Amount of $1,817,397 through FY 2014; 2) Approve Amendment No. 1 to Contract No. C10134341 with OPOWER, Inc. for up to $250,000 in Additional Funds for Additional Home Energy Reports For a Total Not to Exceed Amount of $843,083 through FY 2013; and 3) Adopt an Ordinance Amending the Budget for FY 2012 to Provide an Additional Appropriation of $425,000 Within the Electric Fund for Two Demand-Side Management Programs From:City Manager Lead Department: Utilities Recommendation Staff recommends that the Finance Committee recommend that Council approve and authorize the City Manager or his designee to 1) execute the attached amendment to the contract with Ecology Action to provide for an additional $300,000 for additional business energy efficiency rebates in FY 2012, 2) approve the attached amendment to the contract with OPOWER, Inc. for an additional $250,000 to provide six additional Home Energy Reports, and 3) approve the attached Budget Amendment Ordinance (BAO) to transfer money from the Electric Public Benefit Reserve to Electric Public Benefit Operating funds. Executive Summary In order to meet efficiency goals approved by City Council, many new programs have been enhanced or added to the Utilities’ department Demand Side Management (DSM) section. Staff and third party program administrators have enhanced marketing and customer education about these programs. Two in particular, the commercial lighting, Right Lights+, and residential Home Energy Reports have been quite successful. Staff is requesting additional funds for these to continue to improve energy efficiency and meet customer expectations through these successful programs. 2 Packet Pg. 6 November 01, 2011 Page 2 of 6 (ID # 2215) The Home Energy Reports have been in place since November 2011 and are currently scheduled to end in May 2012 without additional funding for more reports. These programs have already shown over 2% savings for all residential customers in electric and natural gas reductions, which makes it, by far, the most successful residential efficiency program. The Right Lights+ program has achieved the most cost-effective small business efficiency savings, and the contractor has a number of additional businesses lined up for further retrofits, should the Council add funding to the contract through the recommended amendment. A BAO to transfer $425,000 from the Public Benefits Reserve to the electric DSM operating budget is also included in this request. There are sufficient funds available in the natural gas DSM budget to pay for this portion of the expenditure ($125,000), so a BAO for the entire amount is not requested. Background In June 2011 Council approved a new three-year contract with Ecology Action to provide lighting and other upgrades for businesses (Staff Report #1538) at a rate of $500,000 per year. In addition, in April 2010 Council approved the contract with OPOWER, Inc. to deliver Home Energy Reports to residential customers (CMR 191:10). The contract amendments were brought to Council at its October 17th meeting (Staff Report 2040) with a recommendation to approve the additional funding for both programs. Council Members Holman, Scharff and Schmid requested that these two contract amendments be referred to the Finance Committee for review. The Council Members requested additional information for the Home Energy Reports about the analysis methods used to develop neighborhood comparison groups and about the program’s results in its first 11 months. Discussion A full discussion of the Contract amendments is in Staff Report 2040, which is Attachment A to this report. Slight clerical adjustments have been made to Attachment D of Staff Report 2040 since the October 17 meeting. Additional information requested by the Council Members at the October 17 meeting is discussed below. OPOWER Results to date: The OPOWER Home Energy Report model is still fairly new and is being tested for results at every utility where it has been implemented (60 to date). The City of Palo Alto received funding from federal government stimulus funds for this innovative program, and originally contracted to deliver 20 comparative reports because of the ability of this type of behavioral program to achieve substantial energy efficiency savings among residential customers. This is an especially exciting opportunity, as most residential electric and natural gas efficiency programs are not cost-effective for the utility or the customers, as they tend to result in low levels of participation and savings and take a long time to pay back from the energy savings perspective. The Home Energy Reports, by contrast, have resulted in savings of about two percent of residential electric load at all utilities where the program has been implemented. This program is a part of the City Council and Utilities Advisory Commission’s direction to staff to develop 2 Packet Pg. 7 November 01, 2011 Page 3 of 6 (ID # 2215) innovative energy efficiency programs. In various studies, from a 30 month study by Navigant of the results at Sacramento Municipal Utility District (SMUD) to an analysis by the Environmental Defense Fund (EDF) of the results at 11 different utilities, there have been statistically significant reductions in residential load at all utilities who implemented Home Energy Reports throughout the country. It should be noted that the long-term reliability of this primarily behavioral-focused program on utility customers is under review, but no analysis has yet been completed for a longer term than the 30 month study at SMUD. At SMUD, electric savings continue to increase over the lifetime of the program. In the 11 months that the program has been in place in Palo Alto, we have seen the same phenomena, with results increasing to 2.5% of residential electric load and over 2% of natural gas use. Graph 1 below shows electric results from the origin of the program. This shows that among those receiving the report (about 20,000 accounts), savings have increased to about 2.5% of electric load when compared to the control group of 1,000 residents who did not receive the report Graph 1—Electric Load Reductions in Palo Alto among all Residential Customers as a Comparison of Home Energy Report Recipients with the Control Group Since we are involved in an innovative approach to efficiency through behavior modification, staff has taken a conservative approach to estimating savings. We originally estimated savings at the lower end of the results found by the analyses. Our original program estimate was that less than 1% of all residential usage would be saved as a result of this program for a period of 12 months. Note that the average savings over all customers was expected to be 1%. Some customers save nothing and others save much more. This is a typical pattern where the program has been studied. This overall level of savings is what is included in the Demand Side Management implementation plan. Actual results were much higher, improving the performance of residential programs in achieving efficiency. Efficiency savings for natural gas have been similar to electricity, which is surprising, because there are fewer ways to save natural gas. There are many more electric end uses in a typical 2 Packet Pg. 8 November 01, 2011 Page 4 of 6 (ID # 2215) home, and these end uses often have several options to reduce consumption. For instance, there are many ways to reduce plug load: a person can plug items into a smart plug to ensure that equipment is actually "off" when not needed, as opposed to being in standby mode, a person can purchase more efficient electronic items and/or a person could completely unplug and recycle some items that are no longer useful for the family. Natural gas, on the other hand, is typically used for items that are comfort related-space and water heating. The primary ways to reduce their use are to install insulation or to make the home space or water cooler, which is typically not something the average resident is willing to press too far as the home becomes less comfortable with wider temperature swings. It should be noted that the first year results are now being finalized by OPOWER and City of Palo Alto Utilities department staff members. These results will then be further analyzed by the third party consultant Navigant. The results of the first-year analysis will be sent to Council early in 2012, while the third party review will be completed by mid-year 2012. Analysis Techniques: The Home Energy Reports develop comparative groups of 100 similarly sized homes based on square footage in the same general neighborhood with similar heating fuels and presence or absence of a pool or hot tub. Homes that are vacant or have extremely low levels of consumption are removed from the analysis. These variables for heating fuel, absence of pool or hot tube and size of home are used in the analysis, because they are, by far, the most significant non-behavioral indicators of energy use in a home. Numbers of people who live in the home and hours of habitation are not significant indicators of electric usage. A comparative example is given below: One home has one person living in it, and that person is home most of the day, either because of an at-home business or retirement status. This individual has a 25-year old (and thus extremely inefficient) side-by-side refrigerator with ice in the door capability, making it an extremely high energy-using appliance. The individual also does not have any electronic equipment or chargers on smart power strips, so the television and other items continue to use power at nearly the same levels 24-hours per day, whether or not the equipment is “on” or “off.” The other home has six occupants, but the refrigerator is less than five years old, with top freezer and no ice-maker and is ENERGY STAR certified. All computers, electronics and chargers are on smart power plugs, so they do not use electricity when not in use. The second home will, in all likelihood, use significantly less electricity than the first home. Natural gas use is, in comparison, nearly all consumed for space and water heating.Its use is influenced by the temperature level of the thermostatic setting on these appliances and the amount of insulation in the home. Those who keep the thermostats set higher will use more natural gas than those with a lower setting, whether or not they are home. If the thermostat for the furnace is set at 68 degrees, the furnace will continue to operate whether the family is at home or on the other side of the world. 2 Packet Pg. 9 November 01, 2011 Page 5 of 6 (ID # 2215) Because so many of the influences on energy use are behaviorally-related, the Home Energy Reports are quite successful at reducing residential use. Customers learn from the tips on the reports and the website how to reduce their usage without negatively impacting their lifestyles. The tips are not specific to each individual customer, but they are developed to target different groups of customers during different times of year, in different points in life and with different lifestyles. The categories are split into three categories: quick fixes, smart purchases and great investments. Customers get different tips in each category based on their overall usage patterns in relationship to other customers in the utility. Customer Response Customer response in Palo Alto has been by-and-large, extremely positive. Reductions here are at the high end nationwide for OPOWER, particularly for natural gas. In fact, OPOWER representatives report that the results in Palo Alto for natural gas are the highest that they have ever seen. The specific monthly results are now being analyzed, but the current hypothesis for these results are that Palo Altans are very concerned, as a rule, about their carbon footprints and are very interested in how they compare in usage with others in the community. In addition, due to the extremely cool summer, many in Palo Alto continued to use their furnaces. The participants in the study who have contacted Utilities Department staff have indicated that they have engaged Acterra’s Green@Home program for recommendations, including reducing thermostatic settings lower than they would have otherwise done and installing insulation in their homes. Thus, when comparing participants with the control group, participants’ natural gas usage has dropped fairly substantially. Of the almost 20,000 program participants only 107 have asked to be removed from the program. Most of this group requested removal because they did not believe the results of the comparative analysis or they were not interested in the program. On the other hand, many more customers have called program staff representatives to request more information on efficiency, audits and other programs that could be taken advantage of to improve the resident’s comparative standing with the group of 100 homes in their particular analysis. Both staff and OPOWER representatives have found the high level of interest and communication with residents in this program and the very low level of negative response to be remarkable. Timeline of Report Deliveries Reports are delivered to residents on a bi-monthly basis beginning November 2010. As six reports have been sent, only four more are scheduled under the original financing in the contract. Due to the high level of the efficiency results in this program and the generally positive feedback from residents, staff is recommending an additional six reports be delivered over the remaining lifetime of the three year contract. Resource Impact Staff is requesting a BAO of $425,000 from the electric Public Benefit Reserves to the electric operating budget for Demand Side Management. The natural gas operating budget portion of $125,000 will come from existing funds previously budgeted for Demand Side Management in Fiscal Year 2012. 2 Packet Pg. 10 November 01, 2011 Page 6 of 6 (ID # 2215) Policy Implications The proposed contracts support the Council-approved Gas Utility Long-Term Plan, the Ten-year Energy Efficiency Portfolio Plan, the Ten-Year Gas Efficiency goals, the Long-term Electric Acquisition Plan, and Comprehensive Plan Goal N-9. Implementation of efficiency programs support greenhouse gas reduction goals identified in the Palo Alto Climate Protection Plan and in the California Global Warming Solutions Act of 2006 (AB 32) and the independent energy efficiency evaluation required by Assembly Bill 2021 (AB 2021) in September 2006. Environmental Review The approval of this Contract Amendment does not meet the definition of a “project” under Public Resources Code Section 21065 of the California Environmental Quality Act (CEQA); thus, no environmental review is necessary. Attachments: ·-a:Attachment A: Final Staff Report ID 2040_Amendments to Contracts with OPOWER and Ecology Action (PDF) Prepared By:Joyce Kinnear, Manager Department Head:Valerie Fong, Director City Manager Approval: ____________________________________ James Keene, City Manager 2 Packet Pg. 11 City of Palo Alto (ID # 2040) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/17/2011 October 17, 2011 Page 1 of 4 (ID # 2040) Council Priority: Environmental Sustainability Summary Title: Amendments to Contracts OPOWER and Ecology Action Title: Approval of Two Amendments to City of Palo Alto Utilities Energy Efficiency Program Agreements and Adoption of One Budget Amendment Ordinance: 1) Amendment No. 1 to Contract No. C11140925 with Ecology Action for up to $300,000 in Additional Funds for Additional Business Energy Efficiency Rebates for a Total Not to Exceed Amount of $1,817,397 through FY 2014; 2) Amendment No. 1 to Contract No. C10134341 with OPOWER, Inc. for up to $250,000 in Additional Funds for Additional Home Energy Reports For a Total Not to Exceed Amount of $843,083 through FY 2013; and 3) Ordinance Amending the Budget for FY 2012 to Provide an Additional Appropriation of $425,000 Within the Electric Fund for Two Demand-Side Management Programs From:City Manager Lead Department: Utilities Recommendation Staff recommends that Council approve and authorize the City Manager or designee to execute the attached amendment to the contract with Ecology Action to provide for an additional $300,000 for additional business energy efficiency rebates in FY 2012, approve the attached amendment to the contract with OPOWER, Inc. for an additional $250,000 to provide six additional Home Energy Reports and approve the attached Budget Amendment Ordinance (BAO). Executive Summary In order to meet efficiency goals approved by City Council, many new programs have been enhanced or added to the Utilities’ department Demand Side Management (DSM) section. Staff and third party program administrators have enhanced marketing and customer education about these programs. Two in particular, the commercial lighting, Right Lights Plus, and residential Home Energy Reports have been quite successful. Staff is requesting additional funds for these to continue to improve energy efficiency and meet customer expectations through these successful programs. A BAO to transfer $425,000 from the Public Benefits Reserve to the electric DSM operating budget is also included in this request. There are sufficient funds available in the natural gas DSM budget to pay for this portion of the 2.a Packet Pg. 12 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s October 17, 2011 Page 2 of 4 (ID # 2040) expenditure, so a BAO for the entire amount is not requested. Explanation of why the BAO amount is not $550,000 is needed. Background Council approved electric energy efficiency goals double those set in 2007 during May 2010 (CMR 218:10). In order to help meet these new goals, the Utilities Department has added and expanded efficiency programs for all customer groups. Two of these programs have been extremely successful, and staff is requesting approval to add funding to these projects for the next year. To help meet the various efficiency goals set at the City and State levels,the Utilities Department has continued to review and enhance its portfolio for customers to provide the widest range of cost effective programs. Council approved a new three-year contract with Ecology Action to provide lighting and other upgrades for businesses (#Staff Report 1538) at a rate of $500,000 per year. In addition, Council approved the contract with OPOWER, Inc. to deliver Home Energy Reports to residential customers in April 2010 (CMR 191:10). This program compares residents’ electric and natural gas usage with 100 similar homes and presents this information to customers every two months. OPOWER, Inc. has signed and follows a specifically-constructed Non-disclosure Agreement to ensure that all customer data remains confidential. A comment about confidentiality of this data here would be helpful. Discussion Marketing to nonresidential customers was significantly ramped up both by staff and by third party program administrators after Council approved enhanced efficiency goals. The Ecology Action program, in particular, has been very successful in getting businesses signed up to make lighting and other efficiency upgrades. So many customers have requested to be in the program that if the already completed and very likely to finish projects are implemented, an additional $300,000 in Amendment No. 1 for this fiscal year will be necessary. Funds are requested to be transferred from the Public Benefit (PBC) Reserves. The remaining balance of the Public Benefit Reserves after deducting $425,000 is $2,195,000. These reserves were established in previous years when programs did not use all the funding raised through legally-mandated PBC charges AB 1890) on electric bills. It has taken several years of continued marketing to gain customer involvement in programs. This continues to increase, thus helping CPAU expend all funds collected for efficiency and achieve higher goals set by Council for these programs. The Home Energy Reports, delivered by OPOWER, Inc., have also been very successful. Of the nearly 19,000 customers who began receiving the reports in November 2010, over 99% have continued to ask to remain in the program less than 1% have asked to be removed from the program.Preliminary results show electric savings for participants compared to the control group to be more than 2% annually. OPOWER, Inc. and staff wish to modify the report formats 2.a Packet Pg. 13 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s October 17, 2011 Page 3 of 4 (ID # 2040) in early 2012 to allow comparisons between City-defined neighborhoods and then analyze results after customers receive these modified reports for a one year-period. The increase will be in an amount of $250,000 for an additional year of reports (six reports), for a new contract total of $824,083. Of this total, $250,000 was funded through federal stimulus funds, issued in October 2009. For Amendment No. 1 to the OPOWER, Inc. contract, electric costs are requested to come from the electric PBC Reserves, while the natural gas portion will come from funds already budgeted for DSM programs in the gas utility. Resource Impact Staff is requesting a BAO of $425,000 from the electric Public Benefit Reserves to the electric operating budget for Demand Side Management. The natural gas operating budget portion of $125,000 will come from existing funds previously budgeted for Demand Side Management in Fiscal Year 2012. Policy Implications The proposed contracts support the Council-approved Gas Utility Long-Term Plan, the Ten-year Energy Efficiency Portfolio Plan, the Ten-Year Gas Efficiency goals, the Long-term Electric Acquisition Plan, and Comprehensive Plan Goal N-9. Implementation of efficiency programs support greenhouse gas reduction goals identified in the Palo Alto Climate Protection Plan and in the California Global Warming Solutions Act of 2006 (AB 32) and the independent EE evaluation required by Assembly Bill 2021 (AB 2021) in September 2006. Environmental Review The approval of this Contract Amendment does not meet the definition of a “project” under Public Resources Code Section 21065 of the California Environmental Quality Act (CEQA); thus, no environmental review is necessary. Attachments: ·Attachment A:Ecology Action First Amendment No 1 to Contract 10-11 (PDF) ·Attachment B: ECOLOGY Action (PDF) ·Attachment C: Ecology Action Amendment No 1 Budget 2011 v3 (PDF) ·Attachment D: OPOWER First Amendment (PDF) ·Attachment E: OPOWER Agreement 5-2010 (PDF) ·Attachment F: Budget Amendment Ordinance -Electric Fund Demand Side Mgmt Programs Ecology Action and OPOWER (PDF) Prepared By:Joyce Kinnear, Manager Department Head:Valerie Fong, Director 2.a Packet Pg. 14 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s October 17, 2011 Page 4 of 4 (ID # 2040) City Manager Approval: James Keene, City Manager 2.a Packet Pg. 15 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s FIRST AMENDMENT TO CONTRACT #C11140925 BETWEEN THE CITY OF PALO ALTO AND ECOLOGY ACTION FOR PROFESSIONAL SERVICES DELIVERING BUSINESS ENERGY EFFICIENCY PROGRAMS This First Amendment to Contract No. C11140925 between the City of Palo Alto, a charter city and a municipal corporation of the State of California (“City”) and Ecology Action, a California corporation located at 877 Cedar Street, Suite 240, Santa Cruz, CA 95060 (“Consultant”) originally entered into effective on July 1, 2011, is executed this day of , 2011. RECITALS WHEREAS, on July 1, 2011, City and Ecology Action entered into an agreement entitled “Agreement Between the City of Palo Alto and Ecology Action for Professional Services” (“Contract”) in which Ecology Action was to provide third party delivered energy efficiency programs (“Right Lights Plus”) to Palo Alto businesses for up to three years; and WHEREAS, the number of business customers requesting assisting with lighting and other similar upgrades has nearly reached the first year’s contract amount in the first two months of the program, and there are about $300,000 in backlogged requests for assistance with lighting upgrades that will not be funded without this amendment; and WHEREAS, it is a policy of the City of Palo Alto to invest in cost-effective energy efficiency as a primary resource for electric supplies; and WHEREAS, City Council doubled the electric utility’s efficiency goals of 3.5% over ten years to 7.2% over ten years on May 3, 2010 (CMR 218:10); and WHEREAS, the City and Ecology Action desire to amend the Contract in order to meet these goals; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. NOT TO EXCEED COMPENSATION. Exhibit “C1, Compensation for Additional Business Energy Efficiency Programs”, is hereby incorporated into this Agreement. All of the terms and conditions of the original Agreement, including term of the Agreement and Scope of Work, not modified by this First Amendment shall remain in full force and effect. IN WITNESS THE EXECUTION HEREOF the parties have caused the First Amendment to be executed as of the day and year set forth above. CITY OF PALO ALTO ECOLOGY ACTION BY: BY: CITY MANAGER NAME: ________________________________ APPROVED AS TO FORM: BY: _____________________________ TITLE: ________________________________ SR. DEPUTY CITY ATTORNEY 2.a Packet Pg. 16 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s EXHIBIT “C1” COMPENSATION FOR ADDITIONAL BUSINESS ENERGY EFFICIENCY PROGRAMS The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Amended Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as in the budget schedule below and up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Amended Agreement for all services that are described described in Exhibit “A” (“Basic Services”) shall not exceed $800,000 per year one and $508,699 for year two and three for a total not-to-exceed amount of $1,817,397 for all three years. CONSULTANT agrees to complete all Basic Services within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services. Three-Year Savings Delivered: 6,442,827 Annual kWh (gross) 15,215 Annual Therms (gross) Rebate/Incentives: $802,021 Performance Payment: $1,015,376 TOTAL THREE-YEAR PROGRAM COST = $1,817,397 Savings are delivered at a total program cost of $0.275 per annual kWh and $2.88 per annual Therm (gross). Ecology Action will bill CPAU $0.155/kWh and $1.10/Therm as the unit-based performance payment rates. If fewer Therm savings are billed, Ecology Action will utilize the budget for kWh savings and will bill at the kWh performance rate. This assumption ensures that the entire performance budget can be utilized in order to achieve energy efficiency savings in the event that less than anticipated Therms saving opportunities are found in the field. The total performance payment billed for Therm savings shall not exceed 20% of the total performance budget. Rebate payments are distinct from the performance payment. Rebates will be billed based on actual rebate expenditures paid to installation contractors as reported by Ecology Action. Rebate rates are variable as described in the Work Plan and Proposal. All payments to Ecology Action for services delivered in the contract will be tied to unit-based performance payment. Ecology Action does not anticipate any portion of this contract being billed on a “Time and Materials” basis. 2.a Packet Pg. 17 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 18 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 19 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 20 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 21 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 22 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 23 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 24 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 25 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 26 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 27 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 28 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 29 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 30 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 31 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 32 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 33 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 34 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 35 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 36 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 37 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 38 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 39 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 40 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 41 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 42 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 43 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 44 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 45 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 46 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 47 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s Ecology Action Amendment No 1 Budget 2011 PROJECT ALREADY COMPLETE IN FY 2012 Work Order Name Deemed kW Savings Deemed kWh Savings Therm Savings Rebate Perf Billing Total Invoice Amt. Lighting 3.38 18,818 - 2,038$ 2,917$ 4,955$ Lighting 7.68 85,583 - 8,884$ 13,265$ 22,149$ Phase 2 lighting 7.49 41,061 - 4,106$ 6,364$ 10,470$ Lighting 3.74 17,478 2,097$ 2,709$ 4,807$ Interior Lighting 7.77 26,823 - 2,682$ 4,158$ 6,840$ Lighting 4.45 34,816 - 4,178$ 5,397$ 9,574$ 34.51 224,579 - 23,985$ 34,810$ 58,795$ PROJECT COMMITTED TO FOR COMPLETION Work Order Name Deemed kW Savings Deemed kWh Savings Therm Savings Rebate Perf Billing Total Invoice Amt. Lighting 19.21 259,955 - 15,259$ 40,293$ 55,552$ Lighting 112.76 739,928 - 73,993$ 114,689$ 188,682$ Vending - 1,086 - 190$ 168$ 359$ Lighting 48.43 315,769 - 34,546$ 48,944$ 83,490$ Parking lot lighting 2.64 15,712 1,885$ 2,435$ 4,321$ Lighting 1.81 10,502 1,495$ 1,628$ 3,122$ Lighting 4.94 27,212 3,122$ 4,218$ 7,340$ Lighting 2.35 12,646 1,303$ 1,960$ 3,263$ Interior & exterior lighting 2.80 24,820 3,107$ 3,847$ 6,954$ Lighting 1.51 9,325 1,796$ 1,445$ 3,241$ Lighting 3.91 24,853 3,976$ 3,852$ 7,828$ Lighting 1.56 8,636 1,761$ 1,339$ 3,100$ 201.92 1,450,444 - 142,432$ 224,819$ 367,251$ TOTAL COMPLETE AND COMMITTED 8/24/11 236.43 1,675,023 - 166,417$ 259,629$ 426,046$ ANNNUAL GOAL/CONTRACT 268.00 1,784,342 5,072 223,647$ 293,750$ 517,397$ REMAINING ON CURRENT FISCAL YEAR 31.57 109,319 5,072 57,230$ 34,121$ 91,351$ HIGH PROBABILITY TO COMPLETE (More than 50% Chance of Commitment) KW KWh Therms Total Rebate Per- formance Billling Total Billing Lighting 1.04 5,961 752$ 924$ 1,676$ Lighting 1.03 4,726 1,476$ 733$ 2,208$ Lighting 1.59 6,535 1,354$ 1,013$ 2,367$ Lighting 2.64 14,961 2,101$ 2,319$ 4,420$ Lighting 43.00 186,607 22,393$ 28,924$ 51,317$ Lighting and vending 16.93 85,867 10,304$ 13,309$ 23,613$ Page 1 of 2 2. a Pa c k e t P g . 4 8 -: Attachment A: Final Staff Report ID 2040_Amendments to Contracts with OPOWER and Ecology Action (2215 : Amendments to Contracts Ecology Action Amendment No 1 Budget 2011 Lighting 1 6,082 408$ 943$ 1,351$ Lighting 24 119,512 14,341$ 18,524$ 32,865$ Lighting 3.72 24,101 2,892$ 3,736$ 6,628$ Lighting 23.07 62,140 7,457$ 9,632$ 17,088$ Lighting 9.27 28,996 3,479$ 4,494$ 7,974$ Lighting 6.14 23,800 2,388$ 3,689$ 6,077$ Lighting 10 33,468 4,016$ 5,188$ 9,204$ Lighting and vending 17.99 125,902 13,197$ 19,515$ 32,712$ Lighting 7.20 48,869 5,864$ 7,575$ 13,439$ Lighting 9.47 28,496 3,419$ 4,417$ 7,836$ Lighting 9.70 47,035 5,644$ 7,290$ 12,934$ LIKELY; NOT YET PRESENTED TO CUSTOMER Vent Hood 6.70 21,151 339 7,742$ 3,651$ 11,393$ Vent Hood 7.23 42,223 10,134$ 6,545$ 16,679$ Vent Hood 4.34 28,514 1,354 11,334$ 5,909$ 17,243$ Vent Hood 9.40 41,645 404 14,980$ 6,899$ 21,879$ Lighting 2.44 11,915 1,406$ 1,847$ 3,253$ Lighting NA 85,000 8,500$ 13,175$ 21,675$ Garage and pool NA 50,000 5,000$ 7,750$ 12,750$ Lighting NA 30,000 3,600$ 4,650$ 8,250$ Lighting NA 50,000 5,000$ 7,750$ 12,750$ Lighting 4.12 17,899 1,846$ 2,774$ 4,620$ Lighting 23.42 107,362 10,736$ 16,641$ 27,377$ LIKELY COMPLETIONS THIS FISCAL YEAR 246 1,338,766 2,097 181,764$ 209,815$ 391,579$ SUMMARY KW KWh Therms Total Rebate Performance Billling Total Billing COMPLETE AND COMMITTED 236 1,675,023 0 166,417$ 259,629$ 426,046$ HIGH PROBABILITY 246 1,338,766 2,097 181,764$ 209,815$ 391,579$ LIKELY 32 109,319 5,072 57,230$ 34,121$ 91,351$ ADDITIONAL FUNDING NEEDED 300,228$ Page 2 of 2 2. a Pa c k e t P g . 4 9 -: Attachment A: Final Staff Report ID 2040_Amendments to Contracts with OPOWER and Ecology Action (2215 : Amendments to Contracts ATTACHMENT D FIRST AMENDMENT TO CONTRACT #C10134341 BETWEEN THE CITY OF PALO ALTO AND OPOWER, INC. FOR PROFESSIONAL SERVICES DELIVERING HOME ENERGY REPORTS This First Amendment (the “First Amendment”) to Contract No. C10134341 between the City of Palo Alto, a charter city and a municipal corporation of the State of California (“City”) and OPOWER, Inc., a Delaware corporation, located at 1515 North Courthouse Road, Suite 610, Arlington, VA 22201, (“Consultant”) originally entered into effective on May 3, 2010, is executed this day of , 2011. RECITALS WHEREAS, on May 3, 2010, City and OPOWER, Inc. entered into an agreement entitled “City of Palo Alto Contract No. C10134341, Agreement Between the City of Palo Alto and OPOWER, Inc. for Professional Services Home Energy Reports” (“Contract”) in which OPOWER, Inc. was to provide 20 Home Energy Reports to residents of the City; and WHEREAS, these reports have been delivered to slightly under 19,000 residential customers on a bi-monthly basis since November 2010; and WHEREAS, customer response to the program has been primarily positive, with less than 1% requesting to be opted out of the program and preliminary results showing annualized electric savings of 2.4%; and WHEREAS, OPOWER, Inc. and the City wish to modify the report formats in early 2012 to allow comparison between City neighborhoods and compare those results; and WHEREAS, this process will need an additional year of implementation in order to review results; and WHEREAS, City Council more than doubled the electric utility’s efficiency goals for the current three year period on May 3, 2010 (CMR 218:10); and WHEREAS, the City and OPOWER, Inc. desire to amend the Contract to meet these goals. The Contract as amended by this First Amendment is referred to herein as the “Amended Agreement.” NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. SCOPE OF SERVICES. Task 9, “Implement Home Energy Reports Program”, of Exhibit A, “Scope of Services”, is hereby amended to read as follows: OPOWER shall deliver the Home Energy Reports to CPAU Designated Customers through an opt-out program. OPOWER shall make the OPOWER Customer Portal available to CPAU Designated Customers. In addition to the type of information that has been set forth on Home Energy Reports sent during the term of the Contract prior to the date hereof, on Home Energy Reports sent after the date of the First Amendment to the Contract, Opower may also include information comparing energy usage between City neighborhoods. Opower will not charge the City for any inclusion of this additional information in Home Energy Reports. 2.a Packet Pg. 50 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s Task 9 Details:  Designated Customers will receive offline Home Energy Reports 10 reports, on average, for an initial period of 20 months, with 12-month extensions subject to mutual signed agreement by Utility and OPOWER.  Accompanying the first months’ mailing will be an introductory insert explaining the nature of the program, its duration, and the options for learning more or opting out.  Home Energy Reports shall be delivered at an average frequency of no fewer than six reports per Designated Customer per year.  The OPOWER Customer Portal will be available to Designated Customers throughout the initial term of the program. CPAU customer service staff will be able to opt-out Designated Customers who call in and request to no longer receive the Home Energy Reports. Optional: Only upon CPAU’s review and approval, OPOWER may source and include 3rd party offers and coupons in the Home Energy Reports to increase their effectiveness and ability to be acted upon. Task 9 Deliverables:  Delivery of an average of fourteen (10) reports per year per Designated Customer for 20 months. Over the program duration, 250,000 paper reports will be delivered to CPAU Designated Customers. SECTION 2. TERM. Section 2 of the Contract shall be amended and restated to read as follows: “Exhibit “B1, Schedule of Performance for Additional Energy Efficiency Reports”, is hereby incorporated into this Agreement. The term of this Amended Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit “B1” unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. NOT TO EXCEED COMPENSATION. Exhibit “C1, Amended Compensation for Additional Energy Efficiency Reports”, is hereby incorporated into this Agreement and shall replace the existing Exhibit “C, Compensation”. SECTION 4. All of the terms and conditions of the original Agreement not modified by this First Amendment shall remain in full force and effect. 2.a Packet Pg. 51 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 52 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 53 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 54 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 55 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 56 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 57 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 58 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 59 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 60 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 61 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 62 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 63 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 64 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 65 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 66 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 67 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 68 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 69 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 70 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 71 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 72 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 73 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 74 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 75 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 76 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 77 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 78 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 79 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 80 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 81 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s 2.a Packet Pg. 82 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s Page 1 of 2 ORDINANCE NO. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2012 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $425,000 WITHIN THE ELECTRIC FUND FOR TWO CITY OF PALO ALTO UTILITIES DEMAND-SIDE MANAGEMENT PROGRAMS The City Council of the City of Palo Alto does ordain as follows: SECTION 1. The City Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 20, 2011 did adopt a budget for fiscal year 2012; and B. Council has adopted a number of policies to support increased levels of energy efficiency efforts; and C. On May 16, 2011, Council approved a three-year contract with Ecology Action, Corp. to provide rebates for lighting and other upgrades for businesses; and D. An additional $300,000 funded from the Electric Fund Public Benefit Program Reserve is needed for the Ecology Action program to meet the demand for lighting and efficiency upgrade rebates provided by this program; and E. On May 3, 2010, Council approved a contract with OPOWER, Inc. to administer and deliver Home Energy Reports to residential customers; and F. An additional $125,000 funded from the Electric Fund Public Benefit Program Reserve is needed to modify the Home Energy Reports and to provide six additional reports to residential customers; and G. City Council authorization is needed to amend the fiscal year 2012 budget to make an additional appropriation of $425,000 to demand-side management program expense for the Ecology Action program and for the Home Energy Reports program. SECTION 2. The sum of Four Hundred Twenty-Five Thousand Dollars ($425,000) is hereby appropriated to demand-side management program expense in the Electric Fund for the Ecology Action program and for the Home Energy Reports program. SECTION 3. The Electric Fund Public Benefit Program Reserve is hereby decreased by the sum of Four Hundred Twenty-Five Thousand Dollars ($425,000). As a result of this change, the 2.a Packet Pg. 83 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s Page 2 of 2 Electric Fund Public Benefit Program Reserve will decrease to $2,195,000. SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 6. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this Ordinance shall become effective upon adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Sr. Deputy City Attorney City Manager ____________________________ Director of Admin. Services 2.a Packet Pg. 84 -: A t t a c h m e n t A : F i n a l S t a f f R e p o r t I D 2 0 4 0 _ A m e n d m e n t s t o C o n t r a c t s w i t h O P O W E R a n d E c o l o g y A c t i o n ( 2 2 1 5 : A m e n d m e n t s t o C o n t r a c t s