1 Item 19
VALLEY CLEAN ENERGY ALLIANCE
Staff Report - Item 19
TO: Board of Directors
FROM: Mitch Sears, Executive Officer
Rebecca Boyles, Director of Customer Care and Marketing Sierra Huffman, Program and Community Engagement Analyst SUBJECT: Approval of Electrification Retrofit Rebate Outreach Program (ERRO) Implementation Elements
DATE: April 11, 2024
RECOMMENDATIONS
1. Approve Electrification Retrofit Rebate Outreach Program (ERRO) Implementation Elements:
a. Task Order Amendment (1) with Sacramento Municipal Utilities District (SMUD) for implementation and support of the Concierge Service in an amount not to exceed $184,234.
2. Authorize the Executive Officer and/or his designee to execute and take all actions necessary to implement the services contracts substantially in the form attached hereto on behalf of VCE, and in consultation with legal counsel, to approve minor changes to the services contract so long as the terms and amounts are not changed.
3. Approve ERRO Program & Concierge Service Budget of $270,000 and 2024 Programs budget transfer of $160,000 to ERRO Program including $70,000 in reimbursable revenues and $90,000 non-reimbursable costs (Net neutral impact 2024 Budget)
BACKGROUND
In June 2023 the Board approved VCE’s participation in Yolo County’s Electrification Retrofit Rebate Outreach (ERRO) Program. ERRO is a comprehensive outreach program designed to connect low-income households with $1 billion in existing State electrification rebates, as well as other related electrification retrofit rebates for existing residential homes. Helping these households reduce ongoing energy-related costs by targeting direct outreach to them will have long-term economic as well as potential indoor air quality benefits. As noted in June, the ERRO program is aligned with VCE’s strategic plan goals to advance energy efficiency in disadvantaged communities and lower income households.
The purpose of the recommended actions is to approve implementation measures associated with the ERRO program.
///
2 Item 19
ERRO Program Design
The ERRO Program is designed to identify lower income households who have had difficulty paying their utility bills and provide support for accessing State electrification rebates. VCE will be monitoring rebate and grant opportunities as they emerge and change, to provide maximum support for customers.
VCE will work with Yolo County to reach out to households and/or landlords of multifamily dwellings to connect them with information about electrification rebates, help fill out applications, and help facilitate retrofits if needed. This project is anticipated to create replicable models for electrification retrofit rebate programs throughout the County, region, and state. The outreach program will provide template outreach materials which other jurisdictions could use to implement similar programs.
ERRO program planning has been completed and outreach for the program is slated to commence Q2-3 2024 after finalizing the draft Outreach Plan. VCE plans to work with its incumbent customer service provider (SMUD) and marketing contractor (REACH Strategies), to minimize staff impact related to program execution. It is anticipated that enhanced REACH marketing support would only be needed for 2-3 months before and during the launch of customer outreach efforts in Q2-3 2024.
ANALYSIS
The two primary implementation elements that will be employed by VCE are (1) Design/Execution Outreach Plan, and (2) an enhanced customer support platform to receive/respond to customer inquiries related to the ERRO program (Concierge Service). The two implementation elements are outlined below.
Outreach Plan – REACH Strategies
• Program Kick-Off - REACH will work with the VCE and County teams to schedule a program kick-off. During this call, the timeline and project approach will be finalized. • Program Materials - As determined by the kick-off meeting, materials may be developed to support the program. Materials may include email templates, educational flyers, website content and landing pages, and more. Materials will be made available in English and Spanish as requested.
• Ongoing Marketing Efforts - In coordination with the VCE and County teams, REACH will support ongoing marketing campaign efforts. Marketing campaigns may include email or direct mail outreach, coordination with local community groups, attending community events, and more. • Program Impact Assessment - REACH will support the quarterly program impact evaluation and reporting.
As noted, REACH currently performs similar services for VCE which allows VCE and the County to benefit from their familiarity with VCE’s customers and service territory.
Concierge Service – SMUD
During the planning phase for the ERRO program, staff identified what could be a very important tool to help facilitate ERRO’s success: the Concierge Service. SMUD has developed an add-on service for CCAs that provides a heightened customer experience, but adds in 3 Item 19
program-related education, as well as technical support. In essence, this would be a “help desk” for VCE customers. The ERRO funding allows VCE to off-set a portion of the costs to establish and run the service for the time-period that ERRO would run. At the end of the ERRO program VCE could evaluate the value provided by the enhanced customer service platform and decide if it should continue to offer the service. Note: Silicon Valley Clean Energy (CCA) currently offers this service via SMUD.
The basic customer experience would include: call, email or chat inquiries on a range of efficiency-related topics, as well as in-depth topics such as evaluating several contractor bids on electrification projects. Because SMUD has access to VCE customer data as VCE’s call center provider, with this enhanced service SMUD agents will be able to help customers gain a better understanding of their electricity bill/use and take the extra step to develop a plan to reduce their use/cost.
The SMUD team consistently earns high praise for VCE’s Customer Care, and staff sees the Concierge service as a natural extension of that success. Customers may call in initially to ask about electrification, but end up having an in-depth conversation about their electric bills, or CCA in general, and the SMUD team will have all of this information at hand, as well as the ability to track the information in the customers’ records for future program offerings.
Community Advisory Committee
The Community Advisory Committee evaluated the Concierge Service at its March 28th, 2024, meeting as part of the ERRO program review and voted unanimously to recommend approval to the Board.
Please note that the CAC’s 3/28/24 recommendation was based on a different cost share than staff is now proposing: the CAC’s recommendation was based on ERRO funds (external ARP funds) covering 60% of the two-year Concierge Service implementation, with VCE Program Funds covering 40% of the two-year implementation. Staff is now recommending a 50/50 cost share between ERRO funds and VCE Program funds as staff’s estimate for use by non-ERRO VCE customers has been adjusted up to 50%.
As part of the CAC’s discussion, feedback was provided by the CAC as well as the public. The main themes focused on:
• The split incentive between owners and renters in decision-making for electrification upgrades
• Having in-language collateral and website materials available (Spanish) • The customer-facing name: Concierge Service should be changed to avoid customer confusion
Final program design and the ERRO Outreach Plan will integrate this feedback.
FISCAL IMPACT
Because of the direct applicability of the Concierge Service to the ERRO program, Yolo County has agreed that part of the $100,000 budget allotted to VCE for program administration can be spent on the Concierge Service. Because the service would also be accessible to VCE customers 4 Item 19
that do not qualify for the ERRO program (i.e. CARE/FERA customers), staff is recommending a 50/50 cost share between ERRO (external) funds and VCE’s Local Program Reserve.
Overall, the ERRO and Concierge Service would have a net neutral effect on VCE’s 2024 Budget.
The total impact on VCE’s Local Programs Reserve (LPR) through the end of 2025 of $170,000.
ATTACHMENTS
1. Program Preliminary Design/Implementation Form: Concierge Service
2. Resolution 2024-XXX (Amendment 1 to SMUD Task Order 8) Rev. 2/22/24
Program Preliminary Design/Implementation Form
Program Concept: Concierge Service
Date: 2.22.24
Staff Resources and Support:
Assigned Program Managers: Rebecca Boyles; Sierra Huffman Programs Task Group members: TBD
Consultant name (if applicable): SMUD
Scope: A “white glove” customer care service that will help customers to better understand and apply for available rebates for electrification and energy efficiency. SMUD Customer Care Team would take the calls/chats/emails and would also be able to answer questions about billing, etc.
Timing: 2024 and beyond
Program Design Criteria Evaluation:
Criteria 1 Criteria 2 Criteria 3
Criteria Type Availability of
Funds:
Staff Time Strategic Plan Alignment
Reasoning
for Program
Score
There are
available
funds to
initiate and
continue the
program
without
having a big
effect on the
Programs
Fund.
Additionally,
APR funds for
the ERRO
program can
cover part of
the budget.
Scored high
on Staff
Time as it
will take
very little
staff time
to manage
Scored high on strategic plan alignment:
Reduces GHG Emissions
More efficient and electrified homes would lead to less emissions – this will help customers to do that
Customer Satisfaction
Customers will get complimentary access to
information on rebates for EE and electrification,
making their homes more comfortable and
sustainable.
Addresses Environmental Justice
Addresses the needs of lower-income customers by
making EE and electrification more accessible
Regulatory & Legislative Goals Alignment
Aligns with state goals of increasing EE and
electrification in CA
Strategic Partnerships
High level of collaboration with SMUD, low-income
communities, community-based organizations, and
additional stakeholders
Program Metrics and Goals: Number of customers served, number of rebates applied for or assisted with
Rev. 2/22/24
Proposed Programs Budget:
Resource Source Budget $ Remaining in Program Funds after Proposed Program Funds Spent
External Funds ARP funds for
ERRO
$25,000-75,000
SMUD
Consultant
Support:
Concierge
Service
VCE Programs
Fund
$55,000-$105,000
Total* $130,000 $709,000
*Please note that the total budget is to implement the Concierge Service, and for the year 1 fees. For subsequent years, the charge would be approximately $40,000.
Organizational Goals Addressed:
Alignment with VCE’s Strategic Plan
• Goal 3: Prioritize VCE’s community benefits and increase customer satisfaction and retention. o Objective 3.1: Develop engagement strategies to increase awareness of, and participation in, local control of VCE’s energy supply and programs with a particular focus on engaging disadvantaged and historically marginalized communities. o Objective 3.4: Build awareness and trust of the VCE brand through direct engagement with customers, communities, and organizations in VCE’s service territory. o Objective 3.5: Develop customer programs and initiatives that prioritize decarbonization, community resiliency and customer savings. o Objective 3.7: Integrate and address the concerns and priorities of emerging and historically marginalized communities in the design and implementation of VCE's services and programs.
• Goal 4. Promote and deploy local decarbonization and grid innovation programs to improve grid stability, reliability, community energy resilience, and safety o Objective 4.4: Identify external funding sources to support decarbonization and grid-related programs and initiatives.
Rev. 2/22/24
Program Eligibility: all VCE customers. For ERRO, low-income customers are key demographic.
Marketing, Education and Outreach (ME+O) Strategy: Work with SMUD to devise customer-facing materials. If approved, use Concierge Service to promote the ERRO program, as well as to provide bill inquiry and general CCA support.
Board, CAC, POTG Input: POTG has evaluated and provided positive feedback. Service was introduced to the Board, with positive feedback.
Next Steps: Finalize budget share of Concierge Service.
Item 19
1 VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2024 - ___
A RESOLUTION OF VALLEY CLEAN ENERGY ALLIANCE APPROVING AMENDMENT 1 TO TASK ORDER 8 – CONSULTING SERVICES OF THE SACRAMENTO MUNICIPAL UTILITIES
DISTRICT PROFESSIONAL SERVICES AGREEMENT AND AUTHORIZING THE EXECUTIVE
OFFICER IN CONSULTATION WITH LEGAL COUNSEL TO FINALIZE AND EXECUTE AMENDMENT 1 TO TASK ORDER 8.
WHEREAS, The Valley Clean Energy Alliance (“VCE”) was formed as a community choice aggregation agency (“CCA”) on November 16, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Yolo, and the Cities of Davis and Woodland, to reduce greenhouse gas emissions, provide electricity, carry out programs to reduce energy consumption, develop local jobs in renewable energy, and promote energy security and rate stability in all of the member jurisdictions. The City of Winters, located in Yolo County, was added as a member of VCE and a party to the JPA in December of 2019; and, WHEREAS, on August 31, 2017, the VCE Board considered a proposal by the Sacramento Municipal Utilities District (“SMUD”) to provide program launch and operational services and subsequently directed VCE staff to negotiate a services agreement between VCEA and SMUD for consideration and action by the VCEA Board; and,
WHEREAS, on September 21, 2017, the SMUD Board of Directors authorized its CEO to enter into a contract with VCE to provide Community Choice Aggregate (CCA) support services; and, WHEREAS, on April 13, 2023, the VCE Board approved Amendment 1 to the Master Services Agreement (MSA) extending the term of the MSA through December 31, 2028; approved Amendment 32 to Task Order 3 (Wholesale Energy Services) reducing the scope of work; and, approved Task Order 7 (Data Management and Customer Call Center Services), Task Order 8 (Consulting Services); and Task Order 9 (Debt Collection Services) with an expiration date of December 31, 2028; and,
WHEREAS, in anticipation of VCE’s strategic goal to increase electrification, and because of VCE’s role in the Electrification Retrofit Rebate Outreach Program (ERRO), additional customer service needs will need to be met by customer service representatives with technical training in assisting customers with electrification inquiries.
NOW, THEREFORE, the Board of Directors of the Valley Clean Energy Alliance resolves as follows:
1. Approve Amendment 1 to Task Order 8 (Consulting Services) providing Concierge Service to assist with enhanced customer service offerings for customer electrification support through December 31, 2025, with a not-to-exceed amount of $184,234; and, Item 19
2 2. Authorize the Executive Officer in consultation with legal counsel to finalize and execute Amendment 1 to Task Order 8 (Consulting Services) for Concierge Service.
PASSED, APPROVED AND ADOPTED, at a special meeting of the Valley Clean Energy Alliance, held on the ________ day of ______ 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________________
Lucas Frerichs, VCE Chair
__________________________________
Alisa M. Lembke, VCE Board Secretary
Attachments:
1. Amendment 1 to SMUD MSA Task Order 8 (Consulting Services) for Concierge Service VCE-SMUD Task Order 8 Amendment 1
AMENDMENT 1 TO EXHIBIT A: SCOPE OF SERVICES Task Order 8 – Consulting Services
Concierge Service
The Sacramento Municipal Utility District (SMUD) and Valley Clean Energy (VCE) agree to the following services, terms and conditions described in this Amendment 1 to Task Order 8 the provisions of which are subject to the terms and conditions of the Master Service Agreement (MSA) between the Parties. If any specific provisions of this Amendment 1 to Task Order 8 conflict with any general provisions in the MSA, Task Order 8, or any preceding Amendments to Task Order 8, the provisions of this Amendment to Task Order 8 shall take precedence.
Capitalized terms used in this Amendment which are not defined in this Amendment will have the respective meanings ascribed to them in the MSA.
The Effective Date of this Task Order 8 is the date of last signature below.
Section 1, SCOPE OF WORK is amended to include:
1.1 Perform the following services:
Task # Task Title VCE Involvement/Milestone
1 Project management
Prep for, hold and draft minutes for monthly check in
meeting Attend monthly meetings
2 Develop implementation plan
Draft implementation plan
Send draft to VCE for review
Adjust implementation plan Provide feedback into draft plan Send draft to VCE for review
Finalize implementation plan Approve draft plan
3 Develop use interface and utilize a CRM
Develop preliminary hotline
Develop preliminary web experience
Develop preliminary CRM
Provide live demonstration of preliminary UI for
hotline and web
Adjust preliminary UI for hotline and web Provide feedback hotline/web Finalize preliminary UI for hotline and web Approve hotline/web Provide live demonstration of UI for CRM
Adjust UI for CRM Provide feedback into CRM
Finalize UI for CRM Approve CRM
4 Train concierge personnel
Develop training materials
Be trained
VCE-SMUD Task Order 8 Amendment 1
Deliver training
5 Launch and manage concierge services
Deploy hotline
Deploy web
Deploy CRM
Send report format
Adjust report format Provide feedback into report
Finalize report format Approve report
Prepare and send monthly reports
Answer questions/provide ad hoc reporting
Send customer survey
Adjust customer survey Provide feedback into survey
Finalize customer survey Approve customer survey
Prepare and send weekly surveys
Take hotline calls year 1 (10 mins)
Take incentive layering calls year 1 (10 min)
Take technical assistance calls year 1 (30 min)
Take electrification plan calls year 1 (60 min)
Prepare electrification plans year 1 (120 min)
Section 4.2, Optional Service Fees, is added to include:
Task # Task Title Hours 2024 Hours 2025
1 Project management 9.00 $ 1,603 12.00 $ 2,202
2 Develop implementation plan 23 $ 4,052
3 Develop use interface and utilize a CRM 394 $ 70,179
4 Train concierge personnel 26 $ 4,505 26 $ 4,641
5 Launch and manage concierge services 265 $ 43,392 209 $ 34,410 License $ 3,125 $ 3,125
Total 717 $ 139,857 247 $ 44,377
[Signature Page follows]
VCE-SMUD Task Order 8 Amendment 1
SIGNATURES
The Parties have executed this Task Order 8 Amendment 1, and it is effective as of the date of last signature below.
Valley Clean Energy
By
Name
Title
Date
Approved As To Form
Sacramento Municipal Utility District
By
Name Tracy Carlson
Title Director Community Energy Services
Date 3/8/2024
Approved As To Form