The County of Santa Clara
California

Agreement/Amendment
93346

Consider recommendations relating to the First Amendment to an agreement providing services to the Bay Area Regional Energy Network.

Information

Department:Office of the County ExecutiveSponsors:
Category:Amendment to Agreement

Multiple Recommendations

Possible action:
a. Approve retroactive First Amendment to Agreement with the Association of Bay Area Governments relating to providing implementation and marketing services to the Bay Area Regional Energy Network increasing the maximum contract amount by $22,000 from $235,468 to $257,468, with no change to the term of the Agreement, that has been reviewed and approved by County Counsel as to form and legality.
b. Approve Request for Appropriation Modification No. 130 - $22,000 increasing revenue and expenditures in the Office of the County Executive's Office of Sustainability budget, relating to services to the Bay Area Regional Energy Network. (4/5 Roll Call Vote)

Body

FISCAL IMPLICATIONS

The approval of the recommended action would increase revenues from and expenditures for the Association of Bay Area Governments (ABAG) for ongoing implementation of the Bay Area Regional Energy Network (BayREN) in the amount of $22,000 through December 31, 2018.

CONTRACT HISTORY

On February 26, 2013, the Board approved a Memorandum of Understanding with the Association of Bay Area Governments (ABAG) relating to governance of the Bay Area Regional Energy Network (BayREN).

On June 4, 2013, the Board approved an Agreement between ABAG and the County of Santa Clara (County) in the amount of $915,893 for services related to implementing BayREN.  The Agreement’s term was January 1, 2013 through December 31, 2014 and allowed for retroactive billing of services.

On December 17, 2013, the Board approved the First Amendment to the Agreement, decreasing the maximum contract amount by $67,750 from $915,893 to $848,143 because BayREN did not receive approval for funding a Single Family Loan Loss Reserve.  On February 24, 2015, the Board approved a revised Memorandum of Understanding with ABAG relating to governance of BayREN, and this MOU remains in effect for 2017.  The Board also approved a new Agreement with ABAG for services related to implementing BayREN in the amount of $280,709 for the period January 1, 2015 through December 31, 2015.  The Agreement allowed for retroactive billing of services. 

On April 7, 2015, the Board approved the First Amendment to the Agreement, increasing the maximum contract amount by $45,000 from $280,709 to $325,709 effective March 1, 2015 through December 31, 2015 to compensate the County for assuming a leadership role for the Codes and Standards Program.  The Agreement allowed for retroactive billing of services.

On June 23, 2015, the Board approved the Second Amendment to the Agreement, increasing the maximum contract amount by $5,500 from $325,709 to $331,209 effective May 31, 2015 through December 31, 2015 to pay for additional outreach to Building Departments to gauge their interest in a regional Plan Check program and the use of mobile compliance software.  The Agreement allowed for retroactive billing of services.

On February 9, 2016, the Board approved a new Agreement with ABAG for services related to implementing BayREN in the amount of $386,709 for the period January 1, 2016 through December 31, 2016.  The Agreement allowed for retroactive billing of services.

On November 15, 2016, the Board approved the First Amendment to the Agreement, increasing the maximum contract amount by $7,000 from $386,709 to $393,709 through December 31, 2016 to compensate the County for participating in the development of the BayREN business plan at the CPUC, and for work on the Policy subcommittee of the Codes and Standards Program.  The Agreement allowed for retroactive billing of services.

On February 26, 2013, the Board approved a Memorandum of Understanding with the Association of Bay Area Governments (ABAG) relating to governance of the Bay Area Regional Energy Network (BayREN).

On June 4, 2013, the Board approved an Agreement between ABAG and the County of Santa Clara (County) in the amount of $915,893 for services related to implementing BayREN.  The Agreement’s term was January 1, 2013 through December 31, 2014 and allowed for retroactive billing of services.

On December 17, 2013, the Board approved the First Amendment to the Agreement, decreasing the maximum contract amount by $67,750 from $915,893 to $848,143 because BayREN did not receive approval for funding a Single Family Loan Loss Reserve.

On February 24, 2015, the Board approved a revised Memorandum of Understanding with ABAG relating to governance of BayREN, and this MOU remains in effect for 2017.  The Board also approved a new Agreement with ABAG for services related to implementing BayREN in the amount of $280,709 for the period January 1, 2015 through December 31, 2015.  The Agreement allowed for retroactive billing of services. 

On April 7, 2015, the Board approved the First Amendment to the Agreement, increasing the maximum contract amount by $45,000 from $280,709 to $325,709 effective March 1, 2015 through December 31, 2015 to compensate the County for assuming a leadership role for the Codes and Standards Program.  The Agreement allowed for retroactive billing of services.

On June 23, 2015, the Board approved the Second Amendment to the Agreement, increasing the maximum contract amount by $5,500 from $325,709 to $331,209 effective May 31, 2015 through December 31, 2015 to pay for additional outreach to Building Departments to gauge their interest in a regional Plan Check program and the use of mobile compliance software.  The Agreement allowed for retroactive billing of services.

On February 9, 2016, the Board approved a new Agreement with ABAG for services related to implementing BayREN in the amount of $386,709 for the period January 1, 2016 through December 31, 2016.  The Agreement allowed for retroactive billing of services.

On November 15, 2016, the Board approved the First Amendment to the Agreement, increasing the maximum contract amount by $7,000 from $386,709 to $393,709 through December 31, 2016 to compensate the County for participating in the development of the BayREN business plan at the CPUC, and for work on the Policy subcommittee of the Codes and Standards Program.  The Agreement allowed for retroactive billing of services.

On February 28, 2017, the Board approved a new Agreement with ABAG for services related to implementing BayREN in the amount of $341,728 for the period January 1, 2017 through December 31, 2017.  The Agreement allowed for retroactive billing of services.

On March 20, 2018, the Board approved a new Agreement with ABAG for services related to implementing BayREN in the amount of $235,468.00 for the period of January 1, 2018 through December 31, 2018.  The Agreement allowed for retroactive billing of services. 

REASONS FOR RECOMMENDATION

The Office of Sustainability has participated in the nine-county BayREN energy efficiency program since it was approved by the California Public Utilities Commission (CPUC) beginning in 2013BayREN is funded by PG&E ratepayers under an Agreement with ABAG, which, in turn, subcontracts with its member counties to promote energy efficiency locally in their jurisdictions.

For the past five years the County has actively promoted the Single Family and Multifamily residential programs and associated incentives, participated in development of financing options, and successfully engaged city and county building officials under the Codes and Standards Program through regional forums, local trainings, and individualized assessments of energy efficiency building code compliance and enforcement

The CPUC approved the BayREN ten-year business plan on May 31, 2018 authorizing funding through 2025 and increasing the 2018 budget.  Because of delay in the CPUC and ABAG budget process that ultimately resulted in the BayREN budget increase, the County and ABAG now are amending the 2018 contract to retroactively add additional funding of $22,000 to the County’s contract.  The County and ABAG will continue to enter into one-year agreements, as program budgets will shift annually.

Under the First Amendment to the Agreement, the County will receive $257,468 in direct funding for 2018 implementation activitiesCounty residents and businesses will also have access to an array of incentives and resources to assist them in completing residential and commercial energy upgrades.

The revised Memorandum of Understanding between ABAG and the County that was signed in 2015 will remain in effect without changes.

CHILD IMPACT

Activities and services by the County under the Agreement are targeted to generate multiple benefits including lower energy costs, reduced greenhouse gas emissions, local economic stimulus and job creation, and heightened social equity in program accessibilityThese and other objectives provide economic, social and environmental impacts that benefit children and youth.

SENIOR IMPACT

Activities and services by the County under the Agreement are targeted to generate multiple benefits including lower energy costs, reduced greenhouse gas emissions, local economic stimulus and job creation, and heightened social equity in program accessibilityThese and other objectives provide economic, social and environmental impacts that benefit seniors.

SUSTAINABILITY IMPLICATIONS

The recommended actions support a Program that balances public policy and program interests, and furthers the Board of Supervisors’ sustainability objectives to foster a healthy environment, protect resources and public health and safety, promote a diverse economy, and to advance social equity.

BACKGROUND

Funding for implementation of the BayREN Energy Efficiency Program in the nine-county region served by ABAG was approved and directed by the CPUC, and was provided under that direction through a fiscal agency agreement between ABAG and PG&E (the utility has been directed by the CPUC to serve as a fiscal agent)The program includes four sub-programs: 

·        Single-Family:  A residential retrofit program that provides for a Basic Upgrade option and an Advanced Upgrade option for larger-scale retrofits, which is available to single-family detached homes and residential buildings of 2 to 4 unitsThis Subprogram includes home energy assessment incentives and PG&E-issued retrofit rebates for the Advanced Home Upgrade Option, and several retrofit rebates assigned to energy efficiency measures under the Basic Home Upgrade option.

·        Multifamily Program:  A residential retrofit program tailored to reach owner- and tenant-occupied units in residential buildings of 5 or more unitsThis Subprogram includes retrofit incentives, as well as a credit enhancement option.

·        Government Codes & Standards:  This provides direct funding and other resources to BayREN counties for code compliance and enforcement development and training, as well as development of “reach codes” (codes that expand beyond the requirements of existing local and State building codes, such as, Title 24).

·        Commercial (formerly titled Commercial PACE):  This program provides the opportunity for staff to work with ABAG to coordinate with BayREN members on programs related to commercial properties including but not limited to the Property Assessed Clean Energy program (PACE).

·        Water/Energy Nexus (formerly titled PAYS):  This program provided the opportunity for staff to work with ABAG to coordinate with BayREN members on the on-bill water savings programs.

Each of the nine BayREN counties entered into funding/program services agreements with ABAG for activities and deliverables under the sub-programsCounties also have access to services, incentives, and other support as direct benefits to homeowners and businesses that undertake energy efficiency upgrades.

The establishment and funding of Regional Energy Networks by the CPUC is an unprecedented advance in the capacity of local governments to provide robust energy efficiency programs that promote jurisdictional emissions and energy use reductions goals, as well as generate localized economic stimulus and employment opportunities.

CONSEQUENCES OF NEGATIVE ACTION

The County would not be able to fully implement or participate in the BayREN 2018 Energy Efficiency Program, and the County’s residential and business energy customers will not have access to incentives, financing mechanisms and other energy upgrade resources that are available to the public under the program.


STEPS FOLLOWING APPROVAL

Due to the BayREN funding originating at the state level from the CPUC, and being passed down through ABAG as the prime contractor, upon execution of the associated documents, the Clerk of the Board of Supervisors will:

1.     Expedite obtaining the signature of the President of the Board of Supervisors on the associated agreement documents due to the urgency of maintaining this already retroactive program.

  1. Return two original copies of the Agreement executed by the Board to the Office of Sustainability, which will obtain ABAG signatures and return a fully executed original to the Clerk of the Board.

Meeting History

Nov 6, 2018 9:30 AM Video Board of Supervisors Regular Meeting
RESULT:APPROVED [UNANIMOUS]
MOVER:Ken Yeager, Supervisor
SECONDER:Cindy Chavez, Vice President
AYES:Mike Wasserman, Cindy Chavez, Dave Cortese, Ken Yeager, S. Joseph Simitian