SR-510-005-04 (2)
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City Council Meeting January 26, 1982
san.Monica
California
5/0- 005-~
11-6'
.JAN 2 G 1932
TO: Clty Council
FROM: City Staff
SUBJECT: Residential Energy Conservation Services Status
Report and Recommendations for Approval
Introduction
This report presents the status of the City's proposal to perform
Residential Conservation Services (RCS) in Santa Monica. It
recommends that the City Council approve a draft contract between
the City, the Southern California Gas Company, and the Southern
California Edison Company for the performance of these services.
It also recommends that the City Manager be authorized to
negotiate with the utilities before returning the contract to the
City Co un c i 1 for fin a 1 a p pro val .
Background
On November 3, 1981, the City Council adopted a resolution
endors1ng the concept of energy audits where conservation devices
are provided and installed for all City residents who desire
themt
and authorized the City Manager to investigate and
negotiate with the Southern California Gas Company and the
Southern California Edison Company for the performance of these
services in Santa Monica under those utilities. RCS programs.
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'1- e-
.l.A.N 2 6 1982
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City Council Meeting January 26, 1982
san~onica. California
The
City
staff.
wi th
the
assistance
of local energy
professionals, has developed a proposal which is designed to
serve
Santa Monica residents in a more comprehensive and
cost-effective manner than the RCS programs presently planned or
operated by the Southern California Gas Company and the Southern
California Edison Company. The City proposes RCS services that
will serve Santa Monica in the following ways:
1. Santa Monica will offer RCS to all City renters and
property owners.
Renters in buildings with four
units or more are not eligible for the current
utility company RCS audit. An estimated 82% of
,
multi-family residences, or 64% of total dwelling
units 1n Santa Mon1ca, are currently 1neligible.
This
is
particularly significant because the
utility RCS program is funded through residential
customer ut11ity rates. Based on average annual
natural gas consumption, and the amount already
requested by the Southern California Gas Company to
pay for the program, Santa Monica residential gas
customers are projected to pay $70,275 for the Gas
Company's RCS in just the flrst year of a four-year
program.
Santa Monica residents are also paying
for the RCS program operated by the Edison Company.
The Santa Monica RCS plan would completely replace
the regular utility company RCS program in this
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City Council Meet1ng January 26, 1982
san~onica, California
City.
It would be funded by the utilities through
their existing ReS budgets.
2. Santa Monica will directly install cost-effective
energy conservat10n devices for home and apartment
dwellers.
Oirect installation services will be
particularly useful to some elderly residents who
may be unable to install conservation measurest and
to renters who may be unwilling to invest in energy
saving measures because they do not know how long
they will reside in an apartment.
Direct installation of measures also ensures that
energy savings will result from the audit. The
present
utility company audit provides energy
conservation
recommendations only that do not
ensure actual energy savings for the individual and
the community.
3. Santa
Monica
will
conduct
its
RCS
at a
lower-per-audit cost to the utility ratepayer than
the present utility ReS program. Through assured
energy savings and Tower cost per audit, the Santa
Monica ReS will reduce the need for the utility
companies to purchase more expensive fuel and will
help reduce the rate of increase in utility rates
in the future.
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City Council Meeting January 26. 1982
san~onica, California
City staff submitted an ReS proposal to both the Soutnern
California Gas Company and to the Southern California Edison
Company
for
the
entire
City
(45,000 residences X 60%
penetration). In addition to providing energy savings advice and
1 n form at ion
to each resident, cost-effective energy saving
measures such as a low-flow showerhead, and weatherstripping and
caulking materials would be directly installed at no extra charge
to the resident. The utility companies would reimburse the C1ty
for each audit conducted.
The Southern California Edison Company responded with a counter
proposal to contract with the City on a pilot basis for a small
program of 5,000 audits in multi-family dwellings with electric
water or space heating, or electric air-condition1ng.
The Southern California Gas Company responded with a brief letter
stating that they are unable to consider the City's proposal
until the California Public Utilities Commission rules on their
current apolication for RCS funding.
It now appears that both the Public Utilities Commission and the
California Energy Commission may soon direct the utilities to
fund the Santa Monica proposal as a pilot project.
The City must now negotiate a contract with the utilities to be
relmbursed for providing the RCS services.
The contract must
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City Council Meeting January 26, 1982
san~onica, California
also be approved by the California Energy Commission and the
Public Utilities Commission.
A draft contract is attached to
this report. The draft contract provides for subcontracting the
actual performance of the services if the City determines that is
necessary.
Subcontracting may be preferred to performing the
serVlces in house because this is a large program which may
reauire 10-20 employees over a two and one-half year period.
Staff plans to request proposals from qualified firms with
expertise in local energy conservation services to provide the
services, and plans to recommend the selection of subcontractors
upon the successful execution of a contract with the utility
companies.
Subcontractors would be required to use an RCS audit
methodology approved by the California Energy Commission.
Recommendation
It is recommended that the City Council approve the draft
contract with the Southern California Gas Company and the
Southern California Edison Company, and authorize the City
Manager to negotiate with the utillty companies before returning
the con t r act tot he City Co un c i 1 for fin a 1 a p pro val .
Prepared by: Stan Scholl
Nina Byrne
Attachments: Draft RCS Contract
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City Council Meeting January 26, 1982
san~onica, California
1.
2.
3.
4.
PRINCIPLES FOR A RESIDENTIAL CONSERVATION SERVICES
CONTRACT BETWEEN THE SOUTHERN CALIFORNIA EDISON COMPANY,
THE SOUTHERN CALIFORNIA GAS COMPANY,
"
AND THE CITY OF SANTA MONICA
Audit and auditors shall be ReS-certified so that
tax credits c&ryditioned on ReS audits are not jeopardized.
\ lL~
"", \
\ "-
The City and/o'r, its subco~l t-'ors shall identify their
auditors as City\and/orF ~V&t1n ractor representatives and
shall not identify 'th~elve as Gas Company or Edison
representatives. _ \, \.
( "\ " ", /F
I ,\". F
The City shall\,~''i:~Pt ,{l liability responsibility for
their auditors and their auditor's actions.
During their audits, City auditors shall consider the
appropriateness of all ReS measures and all measures which
the City, Gas Company, or Edison may finance as well.
However, although City auditors shall distribute
informational materials on the utilities financing
programs, all further contacts with the customer regarding
them shall be made by utility personnel, including
verification of appropriateness of thp audit
recommendations for financing purposes.
5. City audits shall be offered to all City renters and
resident property owners.
6. The City shall report back to the Gas Company and Edison on
the number of audits completed, and the measures
recommended or installed during each.
.
7. The City shall be compensated by Edison for this audit
service on a per audit basis for each audit co~pleted for a
customer with electric water heating, electric space
heating, and/or electric air conditioning.
8. The City may suhcontract the performance of any portion of
the program.
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City Co u n c il Me e tin 9 J an u a r y 26, 1982
santltMonica, California
9. The City shall provide information on City, Gas Company,
and the Edison Company financing programs and other energy
conservation services including local recycling and public
transportation services.
10. The Gas Company and the Edison Company will fund this
program through their regular ReS budget authorization.
11. The City shall be compensated by the Gas Company on a per
audit basis for each audit completed for a customer with
natural gas water heating, gas space heating and/or gas air
conditioning.
12. The C1ty shall be compensated at the rate of $91.00 per
audit for the first 5,600 audits completed. The
compensation rate for each subsequent audit shall be
$73.50. This rate shall be adjusted annually according to
the change in the Consumer Price Index.
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GS:SES:NB:KS
City Council Meeting January 26, 1982
.
.
Santa Monica, California
PRINCIPLES FOR A RESIDENTIAL CONSERVATION SERVICES
CONTRACT BETWEEN THE SOUTHERN CALIFORNIA EDISON COMPANY,
THE SOUTHERN CALIFORNIA GAS COMPANY,
AND THE CITY OF SANTA MONICA
1. Audit content and auditors shall be ReS-certified so that
tax credits conditioned on ReS audits are not jeopardized.
2. The City and/or its subcontractors shall identify their
auditors as City and/or subcontractor representatives and
shall not identify themselves as Gas Company or Edison
representatives.
3.
The City shall indemnify
companies from any and
activities of auditors.
and hold harmless the Utility
all liability arising from
4. Auditors shall consider the appropriateness of all ReS
measures and all measures which the City, Gas Company, or
Edison may finance. However, although auditors shall
distribute informational materials on the utilities
financing programs, all further contacts with the customer
regarding them shall be made by utility personnel,
including verification of appropriateness of the audit'
recommendations for financing purposes.
5. Audits shall be offered to all City renters and resident
property own ers.
6. Periodic reporting procedures shall be established to
provide to Utilities information on the numbers of audits
completed, energy-saving devices installed, and
energy-saving meaSUres recommended.
7. The City may subcontract the performance of any portion of
the program without the approval of Utilities.
8. Auditors shall provide information on City. Gas Company,
and the Edison Company financing programs and other energy
conservation services including local recycling and public
transportation services.
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'.
.
Santa Monica, California
GS:SES:NB:KS
City Council Meeting January 26. 1982
9. The Gas Company and the Edison Company will fund this
program through their regular RCS budget authorization.
Compensation will be based on the following:
a. The City shall be compensated by the Gas Company on a
per audit basis for each audit completed for a customer
with natural gas water heating. gas space heating
and/or gas air conditioning.
b.
The Ci ty shall be compensated
service on a per audit basis
for a customer with electric
space heating. and/or electric
by Edison for this audit
for each audit completed
water heating. electric
air conditioning.
10. The City shall be compensated at the rate of S91.00 per
audit for the first 5.600 audits completed. The
compensation rate for each subsequent audit shall be
$73.50. This rate shall be adjusted annually according to
the change in the Consumer Price Index.
11. The contract shall specify a minimum of 27.325 audits for
which the Utility shall be obligated to fund. Although the
City will be guaranteed a minimum number of audits, City
will seek right to terminate contract at any time upon
reasonable notice.
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