1. City Council August 28, 2017 Item 11
Authorize a Contract with Staples Energy for Commercial Energy and Water Direct Installation Program Services
City Council
August 28, 2017
Item 11

2. Recommendation CEQA Exemption:
Section (Class 1: Existing Facilities)
Authorize a Contract with Staples Energy:
For the installation of energy and water conservation devices, equipment and services for the Pasadena Water and Power (“PWP”) Water and Energy Direct Install Program (“WeDIP”)
Not to exceed $3,685,285 over two-years
Option to extend 1 year, not to exceed $1,314,715
Total not to exceed $5,000,000 over 3 years

3. Background PWP Launched WeDIP in 2013
Commercial customers with less than 30kW rating
Free installation of water and energy saving measures
Limited to $7,500 per customer account
Typical customers include restaurants, convenience stores, hair salons, small retail and business services
Completed 1,000+ projects for over 600 customers
Annual water and energy savings exceed
2.5 million gallons per year
1 million kWh per year

4. WeDIP History Annual Funding in $000 Fiscal Year 2014 2015 2016 2017
PBC Funding
743
402
552
700
Water Funding 54 15
152
150
Total Funding
797
417
704
850
Energy Savings (kWh)
2,299,000
1,015,000
1,027,000
1,300,000
Water Savings (gal.)
2,606,808
662,813
4,806,000
4,500,000

5. WeDIP Expansion PWP awarded Grant
$1.2 million from the California Department of Water Resources (“DWR”) for FY18-FY19
Enables PWP to serve an additional 125 customers per year over the 24-month grant period
Customers with up to 50kW rating
85% located in the Disadvantaged Community (“DAC”) census tract area
Additional efficiency measures targeted in the grant
Continued limit of $7,500 per qualifying account
Expanded program expected annual savings of 7.7 million gallons of water, 4.1 million kWh in energy and 2,359 MMBtu of natural gas

6. DAC Map

7. Recommended Contract Term
Contract: $3, over 2 years
One-year extension at additional $1,314,715
Estimated $1.2 million reimbursement from DWR Grant
Estimated $225,000 reimbursement from SoCal Gas
PWP’s net cost is estimated at $2,214,715 over initial two year term and additional $1,314,715 if extension is granted
Funding through combination of DWR Grant, SoCal Gas, PWP’s Public Benefits Charge (“PBC”) and the Water Conservation Fund budget

8. Funding for Proposed Contract1
Efficiency
Type
Funding Source
Costs
Year 1 & 2
Cost
Year 3 Extension
Annual
Savings2
Lifetime
Lifetime Cost
per Unit Saved
Energy (E)
PBC Fund (PWP)
1,914,715
1,164,715
4,172,637 kWh
51,839,013 kWh
$.06
Water (W)
Water Fund (PWP)
300,000
150,000
7,770,653 gallons
85,477,185 gallons
$.005
PWP Net Cost
$2,214,715
$1,314,715
Natural Gas (NG)
SoCal Gas*
225,0003
E,W,NG
DWR Grant*
1,245,5703
Total Cost
$3,685,285
1 Excludes PWP direct expenditures for program marketing and implementation.
2 Cumulative annual and lifetime savings over a three year Program if the optional one-year extension is approved.
3 Grant and SoCal Gas funds cover a 24-month period.

9. Recommended Vendor Request For Proposals Staples Energy 4 Responses
Experienced with commercial direct install programs
Comprehensive and detailed statement of work
Focused on a high level of customer service
Cost competitive with other proposals 9

10. Environmental Exempt from CEQA
CEQA Guidelines Section (Class 1: Existing Facilities)
Proposed contract provides for improvements, but no expansion of use

11. Staples Energy Contract Total
Fiscal Impact
Cost of action up to $5,000,000 over a three-year period, FY18-FY20
Funding Source
Account
FY2018
FY2019
FY2020 *
Total
SoCalGas
112,500
225,000
PBC Fund
750,000
1,164,715
3,079,430
Water Fund
150,000
450,000
CDWR Grant Funding
622,785
1,245,570
Staples Energy Contract Total
$3,685,285
$1,314,715
$5,000,000
Net Cost to PWP
$2,214,715
$3,529,430
*Optional one-year program extension