HomeMy WebLinkAbout2019-02-26; City Council; Resolution 2019-025RESOLUTION NO. 2019-025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD
AUTHORIZING THE CITY MANAGER TO NEGOTIATE, EXECUTE AND FUND A
COST SHARE AGREEMENT ALLOWING FOR THE CITY OF CARLSBAD'S
PARTICIPATION IN AN EVALUATION OF POTENTIAL COMMUNITY CHOICE
ENERGY PROGRAM GOVERNANCE OPTIONS IN AN AMOUNT NOT TO
EXCEED $35,000 ·
EXHIBIT 2
. WHEREAS, Community Choice Energy is a mechanism that allows local governments to
purchase and supply electrical power to customers within their jurisdictions as an alternative to the
service provided by an investor-owned utility; and
WHEREAS, the terms 'Community Choice Energy' and 'Community Choice Aggregation' are used
interchangeably; and
WHEREAS, the City of Carlsbad General Plan Sustainability Element includes Policy 9-P.14 to
support a regional approach to study the feasibility of establishing Community Choice Aggregation
(CCA) or another program that increases the renewable energy supply and maintains the reliability and
sustainability of the electrical grid; and
WHEREAS, on July 11, 2017, the Carlsbad City Council approved Resolution No. 2017-141
authorizing the City of Carlsbad's participation in a Community Choice Energy Technical Feasibility
Study in an amount not to exceed $60,000; and
WHEREAS, on January 24, 2018, the City of Carlsbad joined the cities of Del Mar, Encinitas and
Oceanside in a cost share agreement to prepare a Community Choice Energy (CCE) Technical
Feasibility Study; and
WHEREAS, on February 26, 2019, the Carlsbad City Council received a presentation of the draft
North San Diego County Cities Community Choice Energy Technical Feasibility Study; and
WHEREAS, the draft study determined that a Community Choice Energy program is both
technically and financially feasible, and could provide environmental and economic benefits to
residents and businesses in the City of Carlsbad; and
WHEREAS, several options are available to consider in deciding whether and how to pursue the
implementation of Community Choice Energy in the City of Carlsbad; and
WHEREAS, the City of Carlsbad has been invited to join the cities of Del Mar, Encinitas and
Oceanside in a cost share agreement to engage EES Consulting, Inc. to prepare an evaluation of
February 26, 2019 Item #6 Page 111 of 116
Community Choice Energy program governance options, as outlined in their proposal dated February
6, 2019 (Attachment A); and
WHEREAS, adoption of this resolution in no way obligates the City of Carlsbad to participate in
any future decision to establish a Community Choice Energy program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the City Manager is authorized to negotiate and execute a Cost Share Agreement
that may include the cities of Oceanside, Del Mar, Encinitas and Carlsbad to prepare an
evaluation of potential Community Choice Energy program governance options, as
outlined in the February 6, 2019, proposal from EES Consulting, Inc. (Attachment A).
3. That the City Manager, or his designee, is authorized to transfer and appropriate from
the City Council Contingency Fund an amount not to exceed $35,000 for the City of
Carlsbad portion of the cost to prepare an evaluation of potential Community Choice
Energy program governance options.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 26th day of February 2019, by the following vote, to wit:
AYES:
NOES:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None.
(SEAL)
February 26, 2019 Item #6 Page 112 of 116
Consulting
February 6, 2019
Ms. Crystal Najera
Climate Action Plan Program Administrator
City of Encinitas
505 S. Vulcan Avenue
Encinitas, CA 92024
Attachment A
SUBJECT: Proposal for EES Consulting, Inc. to Assist Northern San Diego County Cities
in Evaluating the Technical Issues Associated with Governance Options for
Pursuing a Community Choice Energy Business Model
Dear Ms. Najera:
The Northern San Diego County cities consisting of Encinitas, Oceanside, Del Mar and
Carlsbad (collectively the Partners) have been evaluating the relative merits of pursuing
a Community Choice Energy (CCE) business model as a way of providing its constituents
with clean and affordable electricity. The initial CCE feasibility study is now ready for
public vetting and finalization.
As part of the next steps in further evaluating the CCE business model, the various
options for governance structures for a CCE should be analyzed. The Partners have
several options for governance to include forming a CCE with just the Partners, forming
a CCE with the Partners and other neighboring Cities with common interests, and joining
an existing CCE.
EES Consulting, Inc. (EES) would be pleased to assist the Partners in analyzing the
technical aspects of these various governance options. To this end, please find below a
proposed scope of work, schedule and budget to undertake this technical analysis of
various CCE governance options.
570 Kirkland Way, Suite 100
Kirkland, Washington 98033
Telephone: 425 889-2700 Facsimile: 425 889-2725
A registered professional engineering corporation with offices in
Kirkland, WA; Portland, OR; and La Quinta, CA
February 26, 2019 Item #6 Page 113 of 116
Ms. Crystal Najera
February 6, 2019
Page 2
Proposed Scope of Work
There is a considerable amount of technical analysis required to properly evaluate CCE
governance options. In summary, this analysis should include:
■ Identify governance objectives of Partners.
■ Survey the governance options available to the Partners and contact the possible
options to determine their receptivity to including the Partners into their program
and on what terms. Specifically, the City of San Diego is soliciting interest in forming
a "San Diego area" CCE. Solana Beach already has formed a CCE. Clean Power
Alliance of Southern California (Los Angeles and Ventura Counties) have an existing
CCE and other southern California CCEs are currently in operation. EES would make
initial contact with all these entities to obtain some preliminary information about
the Partners joining. It may be that a Request For Information (RFI) from these
entities wanting to include the Partners into their CCE is the most efficient means to
obtain this information.
■ Once some preliminary metrics on joining these entities are obtained, EES would
then quantify the likely costs and relative merits of joining into these efforts and
compare these costs to those costs of the Partners forming their own CCE. Via this
cost comparison, the likely lower costs of joining a larger CCE could be compared to
the relative lack of control and function the Partners' would incur by joining a larger
CCE.
■ After the comparative analysis is completed, EES will write-up an analysis of the
technical issues into a report which addresses the quantitative economics of the
different governance options plus the relative qualitative attractiveness of the
different governance options.
In addition to the aforementioned technical analysis, there will be a considerable
amount of group meetings that EES should likely attend. For example, a quick review of
the City of San Diego's proposed schedule to evaluate governances looks to have regular
meetings from January through July. This meeting schedule appears to propose 10 -12
meetings. If EES is to be constructive in evaluating the City of San Diego proposals, our
attendance and/or participation on conference calls will likely be needed. For purposes
of the budget information below, we have assumed that EES will be in attendance at
50% of these meetings and participate via conference call for the other 50% of these
meetings.
February 26, 2019 Item #6 Page 114 of 116
Ms. Crystal Najera
February 6, 2019
Page 2
Schedule/Staffing
EES is ready to begin work on this potential undertaking upon being given notice to
proceed. Our work load and staffing will allow us to complete all needed technical
analysis and comment in the 4 - 5 month period suggested by the City of San Diego.
Budget
EES bills on a time and materials basis. We propose using the same billing rates for
this assignment as used for the Partners' CCE feasibility study. These rates are:
President/CEO ............................................................................................... $250
Senior Associate .............................................................................................. 245
Manager .......................................................................................................... 240
Senior Project Manager .................................................................................. 235
Project Manager .............................................................................................. 230
Senior Analyst/Engineer .................................................................................. 225
Analyst/Engineer ............................................................................................. 220
Senior Administrative Assistant ...................................................................... 170
No travel expenses incurred in conjunction with this undertaken will be billed to the
Partners.
A breakdown of hours/budget by task follows:
Task Hours Labor Budget
Objectives of Partners 20 $ 4,000.00
Financial Analysis of Options
Identify Options/Contact 20 $ 4,000.00
Get Participation Metrics/RF! 50 $10,000.00
Analyze Metrics/Responses 40 $ 8,000.00
Write Report 30 $ 6,000.00
Subtotal Analysis $32,000.00
Team Meetings 5 x $1,500/Meeting $ 7,500.00
City of San Diego Meetings -10 x $1,500/Meeting $15,000.00
Subtotal Meetings $22,500.00
TOTAL EES LABOR BUDGET $54,500.00
EES is flexible in adding or deleting items on this proposed scope of work at the Partners'
request.
February 26, 2019 Item #6 Page 115 of 116
Ms. Crystal Najera
February 6, 2019
Page 2
We hope this summary proposal is responsive to your needs. Please contact me directly
with questions or additional comments.
Very truly yours,
Gary Saleba
President/CEO
February 26, 2019 Item #6 Page 116 of 116