The URL can be used to link to this page

Home My WebLink About25B - SCE ENERGY EFFICIENCYREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 5, 2009 TITLE: ADDENDUM TO AGREEMENT WITH SOUTHERN CALIFORNIA EDISON t CITY MA'N~1GER 1 RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15f Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached addendum to the agreement with Southern California Edison extending the current agreement for the Santa Ana Energy Efficiency Partnership, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION In November 2007 the City and Southern California Edison (SCE) entered into a partnership agreement to deliver energy efficiency programs to utility customers in Santa Ana. SCE allocated $200,000 to the partnership which has been used to leverage existing SCE energy efficiency programs and to increase participation in energy efficient practices. The current agreement ended on December 31, 2008. The City has submitted an application for funding for the 2009-2011 partnership cycle; however the Public Utilities Commission (PUC) has not yet issued its final decision on any of the partnership applications received. However, so that energy efficiency programs may continue, the PUC has approved the extension of the agreements with existing partners and bridge funding in the amount of $25,000 per month so that current plans and programs can continue. Staff is recommending approval of the amendment and an extension of the current agreement. Approval of the 2009-2011 partnerships is expected in June or July. ENVIRONMENTAL IMPACT There is no environmental impact to approving the extension to the existing agreement. However, the continued implementation of energy 25B-1 Addendum to Agreement with Southern California Edison January 5, 2009 Page 2 i~ efficiency programs will enhance our environment by improving air quality, reducing pollution and conserving natural resources. FISCAL IMPACT Edison has agreed to allocate $25,000 per month until the PUC takes formal action on the 2009-2011 partnerships. This money will remain with SCE and program costs will be the responsibility of SCE. James G. Ross Executive Director Public Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: ~~ ns~~~~~~~ ~ ~ ~ ~~ Francisco Gutierrez Executive Director Finance & Management Services Agency 25B-2 THIS ADDENDUM TO THE AGREEMENT TO JOINTLY DELIVER THE 2006-2008 SANTA ANA ENERGY EFFICIENCY PARTNERSHIP PROGRAM (the "Addendum") is effective as of December 31, 2008 ("Effective Date"), by and between SouTI-IEItIv CALIFORNIA EDISON COMPANY ("SCE"), and the City of Santa Ana ("Cit}~'). SCE and the City may be referred to herein individually as a "Party" and collectively as the "Parties." All capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement to Jointly Deliver the 2006-2008 Santa Ana Energy Efficiency Partnership Program, dated as of November 1, 2007, by and between the Parties (the "2006-08 Agreement"). RECITALS WHEREAS, the Parties previously executed the 2006-08 Agreement, which provides that all Direct Implementation and Marketing & Outreach activities (as defined in the Concept Papers for the 2006-08 Agreement ("2006-08 Concept Papers")) must be completed no later than December 31, 2008; WHEREAS, on July 21, 2008, SCE submitted their respective applications ("2009-11 Applications") for the implementation of energy efficiency programs to be delivered to California utility customers for the years 2009 through 2011, which included the 2009-11 Santa Ana Energy Efficiency Partnership Program (the "2009-11 Program"), involving the joint delivery of energy efficiency information and training, marketing and outreach, and services to local governments, public agencies, businesses and residents located in the SCE service territory; WHEREAS, on August 18, 2008, SCE filed with the Commission a joint request with the other California investor-owned utilities for bridge funding in order to continue certain energy efficiency programs into 2009 in the event the Commission does not finalize a decision on the 2009-11 Applications before the end of 2008; WHEREAS, on October 16, 2008, the Commission issued a Decision Adopting Bridge Funding For 2009 Energy Efficiency Programs ("Bridge Funding Decision") allowing SCE to expend funds to continue certain 2008 energy efficiency programs during the period from January 1, 2009 to the earlier of three (3) months after the effective date of the Commission's final decision on the 2009-11 Applications, or December 31, 2009 ("Bridge Funding Period"); WHEREAS, the Parties desire to enter into this Addendum to provide for an extension of the 2006-08 Agreement in the event the Commission has not issued a final decision on the 2009-11 Applications on or prior to January 1, 2009; and NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 25B-3 In the event the Commission has not issued a final decision on the 2009-11 Applications prior to January 1, 2009, then the Parties agree to extend the 2006-08 Agreement, as follows: a. The Parties shall be authorized to perform Authorized Work after December 31, 2008 ("Bridge-Funded Authorized Work"), subject to the terms of this Addendum. b. The Parties shall continue to track all Authorized Work under the 2006-08 Agreement performed prior to January 1, 2009 ("2006-08 Authorized Work") and all related reports and other work, including the final invoice for the 2006-2008 period, must be submitted to SCE by February 15, 2009. c. The Bridge-Funded Authorized Work shall be subject to the terms of the Bridge Funding Decision. In the event of any inconsistency between this Addendum and the Bridge Funding Decision, the terms of the Bridge Funding Decision shall control. d. The Commission-approved monthly budget for performance of the Bridge-Funded Authorized Work ("Monthly Bridge Funding Budget"), is as follows: SCE is authorized to spend a cumulative amount not to exceed the $25,000 per month during the Bridge Funding Period for the Santa Ana Energy Efficiency Partnership Program and the City's performance therein of its Bridge-Funded Authorized Work in SCE's service territory. The Parties acknowledge that any unspent funds in a single month of the Monthly Bridge Funding Budget may not be spent in future months, unless prior written authorization is provided by SCE. The Monthly Bridge Funding Budget may be supplemented on a case-by-case basis, in SCE's sole discretion and with it's prior written authorization in the event there are large projects that exceed such Monthly Bridge Funding Budget or that the Parties can produce significant additional savings with additional funds. The Parties shall not spend any funds allocated to the Bridge Funding Period prior to January 1, 2009. No unspent funds from the 2006-08 Program cycle shall carry over into the Bridge Funding Period, except such funds as are necessary to prepare final project reports for projects installed prior to December 31, 2008, final program reports and final invoices, as authorized by SCE. e. The Parties acknowledge that the City will be proposing energy efficiency projects for the 2009-11 Program during the Bridge-Funding Period. The 25B-4 City acknowledges that SCE shall have sole and absolute discretion to commit, approve or disapprove any such projects and any corresponding incentives. f. Unless this Agreement is terminated pursuant to Section 24.2 of the 2006- 08 Agreement, the Parties shall complete all Direct Implementation and Marketing & Outreach activities (as defined in the 2006-08 Concept Papers) related to Bridge-Funded Authorized Work by no later than the date that is three months after the effective date of a final decision by the Commission on the 2009-11 Applications, or by December 31, 2009, or by the effective date of an Agreement for the 2009-11 Application activities, whichever occurs first (such first date, the "Bridge-Funded Authorized Work Deadline"). Program administrative activities (as defined by the 2006-08 Concept Papers, reporting workbooks and reporting requirements), including submission of the Final Report(s), for Bridge-Funded Authorized Work must be completed no later than three (3) months following the Bridge-Funded Authorized Work Deadline, unless otherwise agreed to by the Parties or so ordered by the Commission. g. The Parties shall track all Bridge-Funded Authorized Work performed after January 1, 2009, and final invoices for Bridge-Funded Authorized Work shall be submitted no later than three (3) months following the Bridge-Funded Authorized Work Deadline. h. City shall submit invoices for the program expenditures authorized in Section 9.4.2 in the 2006-08 Agreement directly to SCE with all required signatures and supporting project documentation for approval. If SCE approves the program expenditures payment, it shall process the program expenditures payment to City. i. The Term of the 2006-08 Agreement shall continue in effect with respect to Bridge-Funded Authorized Work until the date which is three (3) months following the Bridge-Funded Authorized Work Deadline, unless otherwise terminated in accordance with the provisions of Section 24.2 of the 2006-08 Agreement. j. The terms of the 2006-08 Agreement (as amended, restated, supplemented or modified under this Addendum) shall remain in full force and effect for such Bridge-Funded Authorized Work. In the event of any inconsistency between the terms of the 2006-08 Agreement and the terms of this Addendum, the terms of this Addendum shall control. Unless otherwise stated in this Addendum, the Parties' rights and obligations with respect to Authorized Work performed on or prior to December 31, 2008 shall remain the same and are not intended to be amended or modified. 3 25B-5 This Addendum shall only become effective if the Commission has not issued a final decision on the 2009-11 Applications authorizing the 2009-11 Program prior to January 1, 2009. In the event such final decision is issued prior to January 1, 2009, then this Addendum shall automatically terminate and be of no further force and effect. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 25B-6 IN WITNESS WHEREOF, the Parties hereto have caused this Addendum to be executed by their duly authorized representatives. City: CITY OF SANTA ANA DAVID N. REAM City Manager ATTEST: PATRICIAL E. HEALY Clerk of the Council APPROVED AS TO FORM: JOSEPH W.FLETCHER City Attorney Joseph Straka Assistant City Attorney RECOMMENDED FOR APPROVAL: JAMES ROSS, Executive Director Public Works Agency Date: 2008 SCE: SOUTHERN CALIFORNIA EDISON COMPANY By: Name Printed: Lynda Ziegler Its: Senior Vice President, Customer Services Date: , 2008 5 25B-7 25B-8