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SR-510-013 (2)~_ . . City Council Report ~ c~cy or Santa Monica° City Council Meeting: September 12, 2006 Agenda Item: ~ To: Mayor and City Council From: Craig Perkins, Director - Environmental and Public Works Management Subject: Award Professional Services Agreement to EcoMotion for Project Development and Implementation Services for the Community Energy Independence Initiative Recommended Action This report recommends that the City Council authorize the City Manager to negotiate and execute a professional services agreement with EcoMotion to provide project development and implementation services for the Community Energy Independence Initiative (CEII) Demonsfration Project. Executive Summary On March 14, 2006, City Council approved a two-year Community Energy Independence Initiative (CEII) demonstration project that will establish the foundation for a community-wide CEII by installing energy efficiency measures and solar electric or solar thermal systems in up to 50 residential, commercial, and institutional buildings. EcoMotion will assist in developing, marketing, and implementing the demonstration project site installations as well as preparing a community-wide CEII business plan for Council approval. The total cost for this contract is $494,975. It is recommended that a 7'/z% contingency in the amount of $37,123 also be encumbered for additional 1 expenses that may need to be covered during the implementation of this unique demonstration project. Discussion Background , In 2002, the City of Santa Monica received a$35,000 grant from the U.S. Department of Energy's Million Solar Roofs program to prepare a solar potential study. The City augmented the grant with $20,000 to include energy efficiency and on-site distributed generation in the analysis. The study concluded that Santa Monica could generate all the electricity it currently consumes and become a"net zero energy city" if: • all suitable rooftops (17,500 structures) were equipped with solar electric or solar thermal systems; • nearly every home and business in the City were brought up to current energy efficiency standards; and • facilities with sufficient thermal load were equipped with small cogeneration systems. The study recommended an implementation strategy that addressed the significant cost and regulatory barriers that the City will encounter on the path to energy independence. On March 14, 2006, City Council conceptually approved the study's recommendations and a two-year CEII demonstration project that would establish the foundation for a community-wide CEII. Funding for the first year of the demonstration project existed in the Community Energy Efficiency Fund that was established in 2002 using one-time utility user tax revenues collected during the State's 2001 energy crisis. 2 Consultant/Consultant Selection On May 31, 2006, the City's Energy and Green Building Program Office sent a Request for Proposals to five companies for project design, marketing and public outreach, and demonstration site management services for the CEII demonstration project. Two proposals were received: one from EcoMotion and the other from Richard Heath and Associates, Inc. Staff interviewed both firms and selected EcoMotion as the best proposal based upon the comprehensive scope of services proposed, previous experience developing effective energy efficiency programs, and EcoMotion's lower budget for the two year demonstration project. Budqet/Financial Impact The contract amount to be awarded to EcoMotion is $494,975. A 7'/2% contingency in the amount of $37,123 is also proposed for a total of $532,098. Funds are available from Account C010763.589000, "Energy Efficiency /Conservation Fund." Prepared by: Susan Munves, Energy and Green Building Programs Administrator Forwarded to Council: Craig Perkins `~ P. ont Ewell Director - E ironmental and Public t anager Works Management Department 3 ^