City of Culver City, California
Agenda Item Report
Meeting Date: 1/25/2010 Item Number: A-2
CITY COUNCIL AGENDA ITEM: Approval of an Agreement with North America
Power Partners for a Demand Response Program Pertaining to Electrical Usage at
City Owned Facilities.
Contact Person/Dept.: Eric Mirzaian/PW Phone Number: (310) 253-6410
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [] Date: _______________
Public Notification (E-mail) Meetings and Agendas – City Council (01/20/10):
Department Approval:
Charles D. Herbertson (01/14/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (01/20/10)
Chief Financial Officer Approval:
Mark Scott (by K. Marsden) (1/20/10)
City Manager Approval:
Mark Scott (01/21/10)
RECOMMENDATION:
Staff recommends that the City Council approve an agreement with North America
Power Partners (NAPP) for a demand response program pertaining to electrical
usage at City owned facilities.
BACKGROUND:
Over the course of the past few years, California has seen a steady increase in
electricity demand by consumers while the supply of electricity by utility providers
has remained at a relatively constant level. This increase in demand has put a strain
on the State’s electrical distribution system which can from time to time result in
rotating power outages.
DISCUSSION:
One way to address the shortage of power supply is the use of demand response
programs. These programs offer incentives to businesses that volunteer to
participate by temporarily reducing their electricity use during peak demand periods
such as during the hot summer days when demand outpaces supply.
To illustrate how the proposed demand response program works, in a typical
scenario when the state Independent System Operator (ISO) declares a power
emergency the utilities are asked to reduce power demand. Southern California
Edison will then contact its contractor, NAPP, who will ask the City to voluntarily
reduce its electrical load by shutting down various facility components such as City of Culver City, California
Agenda Item Report
lighting and AC package units for a maximum of four hours or until the power
emergency abates. The City will only be asked to curtail energy a maximum of four
times in any given month. In return, the City will receive credit payments based on a
pre-determined per kilowatt-hour rate for the amount of demand response the City
has agreed to reduce during shut down periods. The City will receive credit
payments each month even when not asked to curtail energy. The City will have the
option not to participate in the program in any given month but would not receive any
credit payments if it did not participate.
At Staff’s request, a preliminary demand response assessment was performed by
NAPP at the following City facilities: City Hall, Senior Center, Transportation
Department, Police Department, Veteran’s Auditorium/Teen Center and Fire Station
Number One. The assessment determined how much qualifying demand can be
voluntarily reduced while maintaining adequate energy to continue operations at
these facilities. Should the City Council authorize entering into an agreement with
NAPP, Staff will look into the feasibility of also including Fire Stations Number 2 & 3,
and the Public Works Facility into the program.
Should the Proposed Agreement be approved by the City Council, it would be in
effect until December 31, 2012. The Proposed Agreement will contain language that
allows the City to terminate the contract at the City’s discretion with a 30-day notice.
However, the Proposed Agreement does allow NAPP the option to match or beat the
terms of other demand response providers should the City choose to enter into an
agreement with another demand response provider during the full term of the
Proposed Agreement.
This agreement for both equipment and services is not required to be formally bid
per Culver City Municipal Code §§ 3.07.015 and 3.07.070.
FISCAL ANALYSIS:
To participate in the demand response program, the City will incur costs to purchase
metering equipment and to subscribe to monthly communication fees. These fees,
however, will be deducted from monthly payments due to the City and will not be
incurred up-front or out of pocket. The maximum the City would incur for the
metering equipment for each building is $2,500 and the maximum monthly
communication fees would be $100. The City will receive an actual check from
NAPP for the credit payments which will be deposited into account
10116100.339135 (Utility Credit Payments). The current capacity credit payment
rate is set at $3.00 per kilowatt-hour of load reduction with an estimated total of 378
kilowatt-hours of qualifying demand response from all the facilities identified in the
preliminary assessment. Therefore, after deducting the initial fixed costs and the
monthly communication fees, the estimated on-going monthly revenue from this
program would be approximately $1,034.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
1. Preliminary assessment indicating facilities and equipment that qualify for
demand response.
MOTION:
That the City Council:
1. Approve an agreement with North America Power Partners to participate in a
demand response program pertaining to electricity usage; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.
1/25/10
Authorization to Enter into an Agreement with
North America Power Partners for a Demand
Response Program Pertaining to Electrical Usage
at City Owned Facilities.
MEETING DATE:
AGENDA ITEM:
ATTACHMENTS
Pages|1010| Agreement/Proposal from NAPP
1|1010| Preliminary Assessment
2-6Amendment to North America Power Partners
Demand Response Program Customer Agreement
General Terms and Conditions
This Amendment dated 2009 is made to the North America Power Partners
Demand Response Program Customer Agreement made contemporaneously herewith and entered by
and between North America Power Partners LEC ("NAPP"), a Delaware Limited Liability Company,
with its main offices located at 307 Fellowship Road, Mount Laurel, New Jersey 08054 and City of
Culver City ("Culver City"), a municipality located in Culver City, California.
WHEREAS, Culver City and NAPP agreed to enter into an Demand Response Program
Agreement ("the Agreement"); and
WHEREAS, Culver City and NAPP have agreed to amend certain paragraphs of the
General Terms and Conditions of the Agreement;
NOW, THEREFORE, in consideration of the promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, NAPP and Culver
City do hereby covenant and agree as follows:
1. The Agreement shall not automatically renew at the end of the term. At the end of the term, and
mail March 1, 2013, before entering into an agreement with any other Demand Response
Services Provider Culver City shall provide NAPP with a copy of the material terms of a
proposed agreement to allow NAPP an opportunity match or beat such terms, which Culver City
may accept or reject. In no event, however, shall Culver City be obligated to extend its
agreement with NAPP after the end of the term, notwithstanding NAPP's ability to match or
beat the other Demand Services Provider's proposed agreement.
2. In the event the Property does not have a Qualifying Meter System, Customer agrees to pay
NAPP 50% of the total costs for new metering equipment, demand contacts, any associated
communications devices, and installation charges, necessary to participate in a Demand
Response Program. The Customer cost shall not exceed $2,250 per Qualifying Meter System.
Any Qualified Metering System installed by NAPE' shall remain the property of NAPP.
3. The Agreement and this Amendment shall be governed and construed in accordance with
the laws of the State of California, without regard to the conflict of law principles thereof
4. Reaffirmation: Except as modified herein, the Parties hereto expressly reaffirm the terms and
conditions of the Agreement, which remain in full force and effect. Where the terms of this
Amendment conflict with the Terms of the Agreement, this Amendment shall govern.
Accepted and Agreed to:
City of Culver City
By: North American Power Partners ELC
Signature of Authorized Party Signature of Authorized Party
Name (Print) Name (Print)
Title (Print) Title (Print)
Date Date26428 Srnoketree Lane
San Juan Capistrano, CA 92675
Telephone: 949/276-2464
BRINTON ASSOCIATES, INC.
ELECTRiCALENGINEERINTCONSULTANTS
North America Power Partners, LLC
307 Fellowship Road, Suite 11116
Mount Laurel, NJ. 08054
E-mail: joarabrintonassociatesinc.com
http//www.brintoriassociatesinc.com
June 1911), 2009
BAI Job # 02-09-061
DEMA1`,111 RESPONSE "PRELIMINARY" ASSESMENT
Attention:
Project:
ME Cam Paulson
Director Energy Technology
The City of Culver City
9770 Culver Blvd_
Culver City, California 90232
Dear Cain
Based on our site evaluation conducted in May of 2009 with Ron Randle (NAPP) and Mr. Heustace Lewis
Maintenance Operations Manager. We have determined that there are approximately (201) points of control (POC)
an average of 28 per facility and 377.8 KW of qualifying DEMAND RESPONSE_
Following is the "preliminary" break-down of Demand Response measures and a description of how they may be
'Automated" for each metered service
City Hall
9770 Culver Boulevard
Culver City, California, 90232
Service Description : The exiling service is 2,500 amp - 480/277 Volt, 3 phase, 4 wire - 65,000 A.LC.
Measure 1:
Descriptica
HVAC, A/C-1
MCC-1
Measure 2;
Description
HI . JAC, AfC.-2 •
MCC-2
Measure
Curtail Compressor
112 (1/2 of A/C-1)
Measure
Curtail Compressor-
1 1 2 (1/2 of A/C-2)
Automation (Pon
-Installation of an
80 arop 3 pole contactor
Tied into existing EMS
Automation Tin KW
Installation of an 1 62.7
80 amp 3 pole contactor
Tied into existing EMS
KW
57.7
Measure
Curtail Compressor
112 (1/2 of A/C-1)
Measure
Curtail Lighting
1st, 2nd and 3n1
Floors by 1/3rd
Turn off Center
Lamps of all 2 x 2
Fluorescents and
turn off all
Meandeseents
Automation
Installation of an
60 amp 3 pole contactor
Tied into existing EMS
Automation
Installation of
Wireless (bluetooth)
switches on a SB
controls
(POC) KW
37.8
(F'OC) KW
APProx- 43.0
60 pods
Measure 3:
Description
HVAC, A/C-3
MCC-3
Measure 4:
Description
Lighting
Page 1 of 5The City of Culier City
DEMA.ND RESPONSE "PRELIMINARY" ASSESMENT
Contin tied:
Culver City Senior Center
4095 Overland Avenue
Culver City, California, 90232
Service Description: The exiting service is 1,600 amp - 120f208 Volt ; 3 phase, 4 wire
Measure 1:
Description Measure Automation (POO KW
HVAC, A/C-1 Curtail Installation of an 1 5.6
A/C-1 110 computer control
4 hours Tied into existing
HVAC - EMS
Measure 2:
Description Measure Automation (POC) KW
11VAC, A/C-2 Curtail lalallation of an
A/C-2 IA) computer control
4 hours Tied into existing
HVAC - EMS
Measure 3:
Description Measure Automation (POC) KW
HVAC, A/C-3 Curtail installation of an 1 5_6
A/C-3 110 computer control
4 hours Tied into existing
ITVAC -EMS
Measure 4:
Description Measure Automation KW
HVAC, A/C-4 Curtail Installation of an 1 5.6
A/C4 pia computer control
4 hours lied into existing
RVAC - EMS
Measure 5:
Description Measure Automation (POC) KW
HVAC, A/C-7 Oxtail Installation of an 1 9_5
A/C-7 1/0 computer control
4- hours Tied into existing
HVAC - EMS
Measure 6:
Description Measure Automation (POC) KW
HVAC, A/C-9 Curtail Installation of an 1 7 .6
A/C-9 IA) computer control
4 hours Tied. into existing
11VAC -EMS
Measure 7:
Description Measure Automation
FIVAr, A/C-l1 Curtail Installation of an
A/C-11 1/0 computer control
4 hours Tied into existing
fiVAC - EMS
KW
7.6
Measure S:
Description Measure Automation OM KW
HVAC, AfC-13 Curtail Installation of an I 9.5
A/C-13 I/0 computer control
4 hours lied into existing
HVAC — EMS
Page 2015
3The City of Culver City
DEMAND RESPONSE "PRELIMINARY" ASSESMENT
Continued:
Culver City Senior Center, continued
Measure 9:
Description
Measure
IIVAC, A/C-15 Curtail
A/C-1.5
4 hours
Automation
Tnstallation of an
1/0 computer control
Tied into existin.
HVAC - EMS
(POC)
KW|1010| 11.2
Measure 10
Description
Lighting
Curtailment
by 30%
Measure
Curtail Lighting
Fixture types
"FP"
"PE", "DA"
"DB", "DD"
"TA" and "WA",
Automation
Installation of an
I/O computer control
Tied into existing
lighting - EMS
KW
14.3
Culver City Transportation Center
-9-54244effersoft-Bivct
1--/3q 3 c),__ezi__&4)2_
Culver City, California, 90232
Service Description: The exiting service is 1,600 amp - 120/208 Volt, 3 phase, 4 wire
Measure 1:
Description
Lighting
Curtailment
by 30%
Measure
1st Floor
Lighting
30% Curtailment
Automation
Installation of
Wireless (bluetooth)
Switches on SB
(POC)
KW
20
1_5
Measure 2:
Description
Measure
Automation
KW
Lighting
2ndf Floor
Installation of
30
3.0
Curtailment
Lighting
Wireless (bluetooth)
by 30%
30% Curtailment
Switches on SB.
Measure 3:
Description
Measure
Automation
T_M
KW
Lightig
Sho-i) Area
Installation of
3 465
Curtailment
Lighting
Relay Controller
30%
(10) H.I.D's
Measure 4:
Description
Measure
Automation
KW
Lighting
Shop Area
Installation of
1,2
Cur-- wihnent
Lighting
Relay Controller
30%
Fluorescents
Culver City Fire Station Na. 1
City of Culver City
Fire Department
Culver City . , California, 90232
Service Description : The exiting service is 800 amp - 120/203 Volt, 3 phase, 4 wire
14
Page 3 of 5The City of Culver City
DEMAND RESPONSE "PRELIMINARY" ASSESIVIENT
Continued:
Culver City Fire Station No. 1, continued
Measure 1:
Description
Lighting
Curtailment
by 30%
Measure 2:
Description
Lighting
Curtailment
by 30%
Measure 3:
Description
Condensing
Units # 3, 4
and 6
Measure
Ist Floor •
Lighting
30% Curtailment
Measure
2nrls Floor
Lighting
30% Curtailment
Measure
Curtailment of
Condensing Units
CU-3,4 and 6
• Automation
Installation of
Wireless (bluetooth)
Switches on SB
Automation
Installation of
Wireless (bluetooth)
Switches on SB
Automation
installation of
3 pole 240 volt
Contactors
(POC)
KW|1010| 3.0
Qc
KW|1010| 3.0
(POC)
KW|1010| 23.7
Culver City Police Department
4040 Duquesne Avenue
• Culver City, California, 90232
Service Description :
The exiting service is 600 amp -120/208 Volt, 3 phase, 4 wire
Measure I:
Description
Measure
Automation
(POC)
KW
Lighting
Lighting
Installation of
50
8.0
Curtailment
30% Curtailment
Wireless (bluetooth)
by 30%
Switches on SB
Measure 2
Description
HVAC unit # 1
Measure
Curtailment of
HVAC Unit
Autoniation
Installation of
3 pole 240 volt
Contactor
ffM
KW
18.6
Culver City Vets/Youth Community Center
Culver City, California, 90232
The exiting service is 400 amp - 120/208 Volt, 3 phase, 4 wire. Service Description
Measure 1:
Description
Lighting
Curtailment
30%
Measure
Lighting
Curtailment
30%
Automation
Installation of
Relay Controller
KW
9.0
Measure 2:
Description
Measure
Automation
(POC)
KW
HVAC unit #1
Curtailment of
Installation of
6_2
HVAC Unit
3 pole 240 volt
A/C-1
Contactor
Page 4 of 5The Ciiy of Calvet City
DEIVLIND RESPONSE "PRELIMINARY" ASSES/KENT
Continued;
Culver City Vets/Youth Community Center, continued
Me/qure 3:
Description Measure Automation _CI KW
HVAC unit #3 Curtailment of Installation of I 54
HVAC Unit 3 pole 240 volt
A/C-3 Contactor
Measure 4:
Description Measure Automation (POO KW
HVAC unit #5 Crirtailm.ent of Installation of 1 5.4
HVAC Unit 3 pole 240 volt
A/C-5 Contactor
Culver City Yard/Administration Building
Culver City, California, 90232
Needs further site investigation.
General:
This is a "preliminary report" which does not include the Culver City Facilities building and. Recreation Center.
There may be other facilities which can be included in the Demand Response program_
All meter numbers and facilities included must be investigated and their meter numbers submitted to SCE
for qualification
Aeoit
_
Page 5 of 5