Consent Item 9
Consent Item 9
TO: East Bay Community Energy Board of Directors
FROM: Taj Ait-Laoussine, VP Technology & Analytics
SUBJECT: Agreement with Google LLC
DATE: December 7, 2022
__________________________________________________________________ Recommendation
Adopt a Resolution authorizing the CEO to negotiate and execute an agreement with Google for a term of 3 years, and total cost of up to $450,000, in order to benefit from preferred pricing from Google for EBCE’s use of the Google Cloud Platform.
Background and Discussion
EBCE is a data pioneer and innovator, having built and deployed a robust cloud-based infrastructure for the storage, transfer, processing, and reporting of data that is unparalleled in the CCA space. The deployment of such a platform was one of the key recommendations that came out of the Local Development Business Plan (EBCE).
The EBCE Analytics Platform has enabled EBCE to make innovative data-driven decisions and operate at the highest level of efficiency. Today, the platform supports all manners of data analysis and inquiry at EBCE, including:
• Extensive dashboards, reports, and data feeds that EBCE staff can use to obtain insights as they provide customer support, design energy efficiency and demand response programs, and make procurement, forecasting and budgeting decisions;
• A development environment to build, create and evaluate complex models related to EBCE load forecasts, costs, and revenues;
Consent Item 9
• a database that integrates usage data, load data, customer characteristics with external data sets such as census data, tax assessor data, weather data, etc.; • A backbone data warehouse to support EBCE’s Customer Relationship Management System (CRM);
• Complex data feeds to partner agencies to support program implementation along with accurate short-term load forecasting;
EBCE has built this platform using infrastructure provided by Google Cloud, a service offered by Google LLC. Currently, EBCE pays for Google Cloud services on a pay-as-you-use basis, at standard list prices published by Google LLC.
The chart below shows the evolution of monthly costs associated with the use of the Google Cloud Platform since January 2019. EBCE currently averages around $12,000 per month for all users and all services obtained through the Google Cloud Platform.
Google LLC recently contacted EBCE to offer discounted pricing for EBCE in exchange for a 3-year commitment. In order to benefit from this pricing, EBCE must execute a 3-year agreement with Google, committing to spending a set annual amount for each of the 3 years.
Fiscal Impact
In exchange for committing to spending $450,000 over 3 years ($140,000 in year 1, $150,000 in year 2, and $160,000 in year 3), Google LLC is offering a 5% discount over the list price, which translates into at least $22.5K in savings over the course of the three years.
Consent Item 9
If EBCE spends more than its threshold amount in any given year, the preferential pricing will apply to any excess usage, thereby increasing the savings opportunity for EBCE. In addition, any excess expenditures above the threshold will roll over to the subsequent year and count toward that year’s threshold.
If EBCE fails to spend its threshold amount in any given year, Google LLC will charge EBCE the difference between what it was charged and what it committed for that year.
Given EBCE’s usage track record, staff is committing to very conservative amounts that should ensure a minimum of $22,500 savings, but expecting to net a higher amount given the pricing model.
Attachments
A. Resolution Authorizing the Chief Executive Officer to Negotiate and Execute an Agreement with Google LLC.
Attachment Consent Item 9A
RESOLUTION NO.
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE EAST BAY COMMUNITY ENERGY AUTHORITY TO AUTHORIZE THE CHIEF
EXECUTIVE OFFICER TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH GOOGLE
LLC FOR CLOUD INFRASTRUCTURE SERVICES
WHEREAS The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020.
WHEREAS EBCE has developed a robust data analytics platform using Google Cloud services;
WHEREAS Google LLC is offering EBCE discounted pricing for its services in exchange for a 3-Year Agreement;
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Board hereby authorizes the Chief Executive Officer to negotiate and execute, subject to the approval of General Counsel, an agreement with Google LLC, for a term of 3 years, for total compensation not to exceed $450,000.
ADOPTED AND APPROVED this 14th day of December, 2022.
Corina Lopez, Chair
ATTEST:
Adrian Bankhead, Clerk of the Board