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Home My WebLink About0112.094January D. 1994 THE HONORABLE CITY COUNCIL Palo Alto, Cruifomia "/' .7 Consultant :>em« Agree ment Related to Demand-Side ~lD§nt Evaluation Plannj "i Comrac' .\ctjyiries Members of the Council, In September 1993. the Finance Committee authorized staff to negotiate a oonLraC! with XENERGY Inc. (CMR:497:93). This repon requests that Councrl authorize the Mayor to e><erute the attached agreement with XENERGY Inc .• in the amount of S40,OOO. for the development of a plan to evaluate demand-side management (DSM) programs and related consulting services. In additio~ staff recommend.<i thai CoUilC11 authorize the City Manager 01' her designee to execute one or more contract amendrnents with XENERGY. in an a.mount that shall DOl exceed $6,000 for additional DSM evaluation matters. Funds for tlJese services are iDcluded in tl:Je FY 1993-1994 Utilities Consultant Services BudgeL Background and Discussion of CoustJhanl ServiCE:- In September. the Finance Committee approved staff's selection of XENERGY Inc. for demand side management colL,ulting services (CMR:497:93). In accordance with this approval, the Finance Committee also authorized staff lo commence rontract negotiations with XENERGY. A£. resul~ staff proposes that the City enter into the attached c<>ntract included with this staff reporL Under this contract, Resource Planning and Resource Conservation staff will guide XENERGY in devc;.:oping a. fleXible pian for evaluating the Citts DSM programs. Demand side management i5 an activity pursued jointly by the Department of Utilities and its CMR:l12,:94 1 f o (UStomers with the goal of reducin& or othel'Wise altering. customer demand for electricity, gas. and/or water resources 10 the mutual benefit of both panies. XENERGY, a recognized leader in DSM program evaluation, will help staff develop the expert;"" nec"&Sa!)' to evaluate the success of the Cily's DSM programs. DSM evaluation will enable staff to cost effectively plan for r..:ture denland-side and suppl)'-side resources based upon the success of the City's DSM programs. Th~ purpose of the evaluation plan to be developed under this contract is to establish methodologies fer mea..:;;uri ng the impacts of existing and proposed electrk. gas and water DSM programs. The emphasis will be placed on balancing the costs of measuring DSM impacts \\1th the benefits to be derived from increasi..l'l8 the accura.cy of information. PLans for evaluating several commercial and industria] (c&I) and resident[al DSM programs wIll be de\·eJopcd. More emphasis will be placed on the C&I programs,. however, because C&:I impacts are expected to be much grealer than residentia1 ones. (This sterns from the fact that the C&I customer group uses it great deal more resources than !be residential customer group.) For each residential program. XENERGY will recommend a single evaluation option; for eaclJ <:&1 program, XENERGY will pr"'ide three evaluation optioas, one of which will be the recommended option. XENERGY's recommendations. for both residential and C&I prog:ra.ms. \loill be la1lored to the City's current Utilities resource planning environment. By providing t'oNo alternative e .... -aJuation options for each C&I prograrr-.. tbe C&I plan will be more fl.lUble than the residential plan. This will allow staff to tallor Lie <:&1 DSM evaluation to the Utility Departmem's planning environment at the time the e .... -aluation is to be implemented. The resulting DSM impact evaluation ptan will produ(c a dear set of procedwes for evaluating the City's DSM prog.'lliI1S. Under this contract, staff will also deyelop an improved undentanding of tbe issues a'5Ociated with evaluating DSM programs. This will lead to more effective DSM programs,. more effective resource planning, and improved utilities services for the residents and bm::incsses of Palo Alto. CMR:1l2:94 2 ; p Rrmmmend.ai~ Stall'r=mends tr.a! CounCl1: 1. Authoriu: the May", "'e>.ccute an agreement with XENERGY Inc, in tile amount of S40,ooo. for the provision of consulting services for the development of a plan to evaluate demand--sid'e msnagement :?ro~; and 2. Authorize the City Manager or bet designee to negotiate and execute one or more amendments to the agreement with XENERGY Inc. to provide for additional work related to DSM "'aJuarion planning matiers, the "alue of "'hich shall not exceed $6,000. Respectfully Slibmitled, TOM AUZENNE Manater of Resoutel' Conservation ~~ BIl~NARD M. STROJNY Assistant 01)< Manager Al!aCWnent Short form Agreement -XENERG Y &hibit A -Scope of Work CMR:112:94 3 • AGREEMENT No. ~ ___ -' { OATe:"!O 8e ENTERED ev THiS AGREE~AENT WAOE Ar.,o ENTEMO )N10 Of< T,;E _ DAY OF ________ 1"_ sy err" PU"'CH..e.:;ING ~x AM08E'NrtU. ... M CITY OF PALO Al TO \+€RErw.ne~,"::FERRED TO AS, CITY AND ,'?<WI!E)(11 XWERGY __ . ..lm;. I a Hassachusett!. corp .milU~~o:-;:J;_E;_<lc _____ ;_q_~~ in California. -- j~~SSI 492 N:ip-th Suo!;C;t -Su,ite2..1-Qun_m_m [ON) ___ Oakland I c..... :Z:") g4~Ql-4048i ... HONEJ ~1.~-891-0_440 ,K:;Ae:IfU.FIE:~ ~EM!.C rc ~ CONT~.ACTOR) IN CONSIDERATION 0; THEIl; M1JTUA.l CD\o ErtAN' S, 'n~E F>} FHlES 01£1'1510 ilGAE!S AS ;:OL.i.O'WS • CONTRACTOR SHAl..t ~ M Fv>lN\S~ T~E FDt.lOWiN(; '5<>~C:f~OSEA'JICE5 mo-OR. M"TER\)\lSS"£CIi"IEO ~ ElCK!ll(l' __ A _____ _ ATTACHEC HEF\£TC ANO i.NCORPOR..t,T£!I H~AEIN BY n .. ns ~FEw.:~E .ex.~ib1t A -11Scope of flork" • TERMS n'!f SERVICES N'fOIOR MA'l"'Ef'1lA1.S ~ ... ~o UNOE~ TI-HS A"R.EEIJE,'I/l 5«ALl. C'{~ENc:E ON Jauuary 19. 1994 fWD SHAlJ,. BE ~D 8£FOf\E JunE: 30, 19.9..L_ • COMPENSATlON FOR'n-!E:~ i'~E 01' n4\3 AGI";::e\'\ENl ~ CITY sw.u.. P .... VCQt{Of\ACTOf'.; $40 j 000 • PAYMENT RECORD ,n£'PARn.lEN1' USF. ~EVE"st SIDEJ • CITY ACCOUNT NUMBER: ~!r KEY~~COOE~~~~~~~~~=-~···~· ===·l~~~========P~HAS£~~·=-NO~=j3[···~·[)(U4~~-11: ~ -------1 Lr-__ ---~ ___ -=--_.::...::...::...::...::..::..::..::..::..:::.:::.o=w':::CT::: ... ::_=tl ~::~::. ='=.::.====== .L1 __ $4_.G_ .. "'_O_!l_-Q_.-=.-=.-=.= _____ -J • GENERAL TERMS AND CONDITIONS AA£ INCLUD'O ON ecnt SIDES OF THIS OOCU .... "'. ThIS AGRffWOO SHALL BECONE !ff£Cm;'E Ufi'Or'4' ITS .APPRCIoJAl AliD E):ECUTIOi',j BY mY. rN WiTlrtES5 TH[REOF. THE. PARnES HAve EXECUTED TtlIS AGFIiSENT mE DAY, I«)tfftt, MD "UiI f~ST MIITE'-C ~ HQU RMIaDI. CONTRACTOR a~rers to iroemrlify, ~r.I iIDd I'C;d !larmfe$S CflY, I\:!. ~ers,~, ar;~ em~ ~ any aM a~~, ct&Jms Gr Iia~rrty 01 any narure, WldLlfII'oll Jlfongful tJutll, CiI~..td Irf Of a,istn~ cut Of (;OIiIAACTOR'S, it! r)fHc:e;-s', ~ents' 01 em~c;yeres' rIeOllg!1'I! am. ~rrc-rr.. or OO1iSi>l'Jfls. cr 1IrIi~1 rmt:Jf'ldld, or C"OI'"rduCt ftl, w!1idl tile law imposes stticll~rt) or: CDNlRAl;T0f1: III ttIt! pu1~ c! f;~u~!tl per1!lm1~:S avreemtJT! by cmITAACTOR fIII'T'W ASPI&MefT. Thiugrtemem ¥4 me!!mI$ aM gx!"j[tt~!lI1JI!1.ttK:..lMfK~ r!illr~ Il1e !r1Li"rt aIj~eemer";t bmftBrr tl1e pattieS wttI, res:ecl til It>e p,,~ .and s.!II III the ~JipmI!m. m.1"f"ffiaIs t'f' SlJ"~lies Qr ~mem 101 serviCeS Wn1CI' INl~ tit ttle sutlJ~ u! ~!iIS C'Or;:nct fJl ~rt\ll agre-l!m~n!s. represrl1tatiQ~s, s'~Il'~ITlS. ~ .. 1d ~rt3ldngs -.+.ettle:-O!'al arlllfi!trn at'! $'J~ ller"ffly • PROJECT MANAGER .MD m:PRi=S(,m.nv! FOR CITY Tom Kabat W-P1" Utiliti~_§_-Resource Planning p.a SO)( 102SC PALO ALTO, CA S4303 TeIephof'Ie (/,J 5) 329-2659 • INVOICING 5erolO AU. I': .. ~CES TO THe: en"". A T'TN F'ROJE'CT ~ANAO;t:A • CfTY Of PALO ALTO APPROVALS: ~RQUH'Hl~ SlGNATl}Fl[;SAC:::OADING 'vM..J~8ERS Itoi ~P~""A.LBO,a;seElOW] • o CERTIPICATE OF AClrnOWLEDGMENT (Civil Code § 1189) STATE OF (~O( ,krl I 0.... .. _____ _ COUNTY OF AioV1Aedo.- On JOnU(l"!L I~I l'l'l't , before me, G.V1 f?Je Je"" .. ~";h",,,,, _, a notary public in and for said~. personally appeared E.<:.hot-d S Barnes , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person (9) whose name (s) is/are subscribed to the within instr'..unent j AEr-ee-',,",C.llt be-ft.u~e" C'1t-l be =p,., 10 Aim and Xeoei'j J Tac and acknowledged to me that he/she/,:hey executed -the same in his! her/their aut.horized capacity (iesl. and that by hie/her/their signature(s) on the instrument the person{sl, or the entity upon behalf af which the persan(al 3cted~ executed the instrument. WI~~SS my t~d and official seal. • I - , . EXHI91TA SCOPE OF WORK Thb; rontract defines the tasks which XENERGY, Inc. (hereafter referred 10 as the "CONTRAcroR") will complete in assisting the City of Palo Alto Utilities Deparonent (hereafter referred to as the "CITY") in developing a demand-side management (DSM) evaluation pl3JL The purpose of the evaluation plan is to develop methodologies for measuring achievement of expected savings and other program objectives of existing and propose<! electric, gas, and water DSM programs. The emphasis will be on balancing the oosts of performing impact evaluations 'ilrtith the npected information rerum for a combined electrk, gas. and water municipal utility the size of Palo Aito. Tne evaluation plan will be developed using the COl'<'lRACTOR', experience and literature reviews.. For each DSM program identified in this contract. the CONTRACTOR wiJI ldentify reasonabie evaliJation options and characterize the attnoutes of each oplion. The COl\1"fRA.CTOR will not be required to conduct a detajled quantitative assessment of the value of information. &pen opinions and other qUa.]ililtive factors will play an importa.'1t role in characterizing the different options. The CONTR.-\CfOR will provide quantitative estimates of (actors such as precision,. sample sizes.,. and cost. However, these estimates will be largely supported by the experiences of the CONTRACTOR's staff and others. CITY staff will provide infonnation pertaining to the priority of e.valuation objectives and where the evaluation results WIll be appiied. CITY staff will also work witb the CONTRACTOR to determine how to trea~ general eYaluation issues such as the relative importance of gross versus net Sewings. In an effort to integrate evalualion pla.1..ning with progr.un implementation planning. CITY staffwill provide the CONTRACTOR with general information regarding the projected designs of f. .... ture D5M programs. This scope of work. identifies the Tasks, AC"'Jvities. Dellverabtes.,. Budget, and Schedule. The Tasks characterize the overall objectives 'Of this contract. The Activities identift the steps which the COl'<IRACTOR Wl1l complete in achieving these objectives. The Deliverables define the tangIble products which the CONTRACTOR must transfer to the CITY in order to fulfill the terms of this conL-.ct This scope of work .lso defines the CONTRACTOR's not-to-exreed price and v..nedule for completing this work, as stated in the Budget and Schedule sections. Under direction of the Cnl'"1's Lltilities Resource Management Proje ... ;: ManageT~ the CONTRACTOR will provide technical alNice and perform the Tasks and Activities def!ned below on an as~assigned and as-neede d ba.<;is. -.~---- .,! • ." . ...;. m e 0 I, LIST OF TASKS IMK I • MEETING COORDINATION AND fACIUTAT!ON """ ,,-.;.-..:~ . The CONTRACTOR ",ill coordinate and facili,>"e meetings wi,h key CITY staff to identify and priodlize program objectiYes, evaJuation objeC!ives, 3J1d related issue& One or two meetings should be conducted initially to transfer preliminary information from the CITY to the CONTRACrOR. Additional meetings wi!] be coordinated ..... needed, TASK 2 • IMPACT EVALUATION PLAN fOR COMW:RClA.L AND INDUSTRIAL (C411 PROGRA.MS The CONTRACTOR ",ill provide the CITY with a menu of options, covering a fange of cost and quality levels, for evaluating each of the CITY's proposed C&r programs. Three options are sought for each program evaluation. Om~ option will be the nominal option which XENERG Y recommends f.or the ClTY's current planning environment The other options will be be..~t suited for a high a.'"ld a low value of information planning environment. The highest priori!'j evaluation is for an HVAC, replace on burnout (ROB~ rebate program for chiUe", packaged units, and moto" which is scheduled for launch duri.'g the second quarter of 1994. Including the HV AC ROB evaluation, there will be a total of 10 C&J program. 10 evalu •••. The planned C&I programs are both retrofit and ROB programs for each of the following end u.",,: 1. HVAC 2. Lighting 3. RefriguaHoD 4. Waler bealing S. Pro<:e;.s technologies (gas and water) Each option developed by the CO"''TRACTOR may consist of a siilgte evaluation technique or be a. hybrid of 5ei.'cral lechnique~ such as a combined billing analysis and metering approach. The evaluation optioru should produce gross and net estimates of electric (peak kWand annual k\\lh), gas (peak therms/day and annoa! therms), and/or ..... ter (ccfiYear) >aVings. The CONlRACTOR will describe the option; using the forma. outlined in Tasks 20·20. TaU 2, ~ Delailed Proc-Mpm [or-C&;' Progrnm E\'olualiQQ QpljQru For each evaluation option, detailed implementation procedures ""ill be specified that include all of the step!ri required to complete the evaiuation. These steps will answer the follOwing qUf"..stions: 2 c---______ ---- , ! t • ~ t \; ~.; t 2. 3. 4. What does the CITY need to evaluate? A .. ld \II"by? "''hen doe., the ClTY need to perform the evaluation{s)? How should the CITY perfo.m the eyaluation(s)? Wh:it information and tools does the CITY need to complete the evaluation(s) ? For each option.,. Ll)e evalu~tio[] steps "ill be placed in !l timeline. This diagram should depict the strategy that most effioemly takes advantage of sle~ that can be performed simultaneously .. Tal!* 2' .. Symm,cr or CAl ptogram ElI))luatiQ.lI Qu.tion Featpm Selected key features will be ~d to compare the evaluation options prior to implementing an impact evaluation. At a minimum. the following key features should be provided to summar.z.e each option: 1. Cost 10 impiement e .... aluation (staff time, ,."onsultant time, materials) 2. Quality of information (confidence, precision. sample size~ bias) 3. Impact on customer (cost, involve ment., burden, value) 1)sk 2c .. CAl Program Eyaluation OptIon Recommendations &sed on XENERG'r"s knowledge of the CrfY's current planning situation, the CONTRAcroR will be re<ommending one eyaluation aptian (,he nontinaJ option) per DSM program for the CITY to implement. The CONTRACTOR W111 provide the rationale for the selection of eacb of the recommended options. The CONTRAcroR will also identify examples of potential ~banges in the ClTY's pian..wdng em.iranment which would alter the recommendation to either the high or tl!e low value of informaticn options. If specific features of the program, such as the size of the !echnoiogies installed or the type of delivery mechani.\m used, influence the recommenjations, these influences shou:d be identified. TASK 3 • IMP .... cr EYi\.1.umON PiA" FOR RESIDENTI,t"L PROGRAMS The CONTRACTOR will provide the CITY "itb one recommended evaluation option per residential end-use.Each option may consist of a single evaiuation technique or may be a hybrid of several techniques. The recommendation \\'iIi take into consideration the relative impact of the DSM program and the size of 'he marke'.n There will be a total or 14 re~idential programs to e"a!uate. The; planned residential programs include both retrofit and ROB programs for each of the fotlowing end uses: 3 -----~~- :-'.--;.~. o 1. Ughting 2. Refrigeration 3. Space Heating 4. Water Healing S. Domestic Water Use (Toilets, Showerhead, Faucets) 6. Outdoor Water Use (Landscaping. Irrigation) 7. Miscellaneous Appliances Each eva1uation option will produce gross atld net estimates of e1e;:::iric (peak kW and annual kWh). gas (peak therms/~ay and ",,-"ual therms). and/or water (cdfyear) savings. The CONTRACTOR ~iH descnbe each recommended option using the format described in Tasks 2a and 2b. The CONTRACfOR will provide the rationale used to select each recommended option. The CONTRACfOR will aIso identify examples of potential changes in lO. CITY's planning environment which would arter the recommendation. If specific features of the technologies installed or the type of program participant (such as sing!e family versus multiple ramily) influence the recommendation, these influences shotJld be jdenlified. TASK 4 • MISCELLANEOUS TECHNICAL ADVICE The CONTRACfOR will provide the cm' with technical advice which may include assisting the CITY in developing process and IruIl'ket evaluation plans. (A process evaluation is • ''JIStematic assessment of • uulit) DSM program roo the purposes of improving its design. its delivery, and the usefulness and quality of L'1e services delivered to the customers. II. US{ OF AcnylTlES This section contains a listing of the "P"cific activities that the CONTRACfOR ",ill perform. With the exception of th*: monthly status reports, these activities are listed in chronological order. The CONTRACrOR will: 1. Me-et with CITY staff to discu.ss p!anning i~ues.. pnonuze evaluation objectives, and ;dentify criteria for an initial assessment of evaluatior.. objectives. 2 Meet with HV AC ROB program design scaff 10 obtain initial design information. 3. Develop initial options for <valu~tion of the HY AC ROB program. 4 • .. -'. :--;' .... ~ 0- , : ;~,~~~>~. -' 4. Provide initial cptions to CITY staff for review and incorporate feedback. s. Characterize e-roilu2tioD options including the step-b)'~slep proccdu res, CDSI estimates.. quality 01 infQrmatior." and impact on customer~ incorporating CffY staff feedback as neceS5alY. 6. Develop briefing paper on HV AC ROB program evaluation plans (Deliverable I}. 7. Repeat steps 2 through 6 for the otber nine C&I programs. 8. Repeat steps 2 through 6 for all fourteen residential programs. 9. Produce draft repon (Deliverable 2). 10. PrOOuce final ropon (Deliverable 3). 11. Produce monthly status ropons (Deliverable 4}. ilL Un OF DEIll'ERABU" The following deliverable,; shall be provided to the CITY by the CONTRACfOR on or before the dales specified below. 1. The CONTRACfOR will submit a briefing paper containing a menu of options, including step-by-step implementation procedures, for evaluating tk impacts of the CfIY's proposed HV AC ROB C&I rebate program. This paper wiU be tailored to facilitate the CITY's design of the progr;;m and the devekJpment of any tracking systems whicb will be required This briefing paper should be representative of a scctinn (if the final report. As such. it should include alt information identifted for Deliverable 3. This deliverable shaU be provided to the CITY no later than five weeks after the signing of the contract. 2. A draft of the written repon shall be provided to the CITY no later than May 31, 1994. This repon should contain a draft of all of the elements to be included in the final report 3~ The CONTRACTOR will submit a final v.Titten report to the CITY no later than June 30, 1994, summarizing all tasks completed. This document should include aU information requested in the t.a.£k descriptions. The report sbould be provided in hard COp-j and on diskelles (3-1/2") using a WordPerfect 5.1 5 ---------- o format. lne final repon will be an easy-to-use document To enable staff to implement a sLngle plan without reading the entire document, the evaluation plans for eacb DSM program identified in this contract wiil be encapsulated ill individual. stantj·aJone sections of the rcpon.. These sections should avoid r!;ferences to other sections of the rcpon W as great an extent as is praL1ical. Each section should co'-er all relevant DSM impacts (eleCL-ic, gas, and water) for the program. under consideration. At a minimum. lhe faUowing det.a.ils will be included in each of the stand aJone sections: a. Assessment of the applicability of off-the-shelf DSM evalu,.ooD plar.> (such as the CPUC or EPA protocols) for the CITY's needs b. Identification and description of the roost critical variables affecting DSM impacts, such as pel"Sisrence, and definition of 'the base case. Also, identification of events and actloru that may influence these critical variables. c. Description of the methodology for calculating gross savings including whether savings should be ca1culared on a per actual project or per average project basis. d. Description of how the gross-to--net estimate is made.,. including treatment of spedaJ issues such as free riders.,. free drivers,. snapback. and persistence. e. Identification of indirect impacts altrlbuted to the measure being evaluated For example. lighting indirectly impacts HV AC load_ ( Discussion and recommendations regarding data collection methodologies.. including morutoring and tracking system requirements.. g. Discussion and recommendations regarding survey design concepts, especiany for gross-to-net estimation issues. h. Jdentification of the conditions under which the nominal plan would be recommended by the CO!l.'TRACfOR and the facton that could change in the future and alter rhe CONTRACTOR'os. recommendations to either the high or the low vall..le of information plan. i. An evaluation timeline and budget for each evaluation option 6 ./ identified. :""7':" . .7-....-_~ j. Identification of opportunilies to t."lx.e advantage of synergies between program evaluations. 4. The CONTItACTOR .,ill present the CITY with monthly status reports by the tenth day of each IDOnth for the duration of the contract. These reports should include a summary of actlvilies completed during the previous mOfith and a summary of costs incurred to dale, itemized by task. 7 o .IY.-BUDGET Provided below is a breakdo .... TI of the work effort and the total fued cost fur the activities defined in the List of Activities. Hours by Ac-Jviry Total Staff Rate 1 2 3 4 5 6 7 B 9 10 11 Hours 16(l 4 9 105 2 tra hers 125 Expenses btal 4 3 v, sctIElruJ..E Provided below is a rummary of Ihe due dates for the deUv.rables. Deliverable ( umber & Description) Due Date 1 ' iiVAC ROB Briefing aper Five weeks after contract is signed 2 -Wril'-en Report May 31, 1994 3 -Flnal Wntten Report une 30, 1994 -Monthly Status Reports T .nth day of each montll 8 -.' --: