01-23-15 BPU RPT 08 - Laserfiche WebLink

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� RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC U71L171ES BOARD OF PUBLIC UTILITIES DATE: January 23, 2015 ITEM NO: 8 SUBJECT: TREE POWER PROGRAM FOR FISCAL YEAR 2014-15 ISSUE: That the Board of Public Utilities recommend approval for the Public Utilities General Manager to issue purchase orders to qualified vendors in order to implement the Fiscal Year 2014-15 Tree Power Program Free Shade Tree Coupon Campaign and credit customer accounts for trees purchased. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Authorize the City Manager or his designee, to issue purchase orders to Parkview Nursery, 4377 Chicago Avenue; Parkview Nursery, 3841 Jackson Street; Louie's Nursery, 18550 Van Buren Boulevard and Moon Valley Nurseries, 9501 Lincoln Avenue and make changes to the purchase order amounts based on the variable product demand of each nursery in a collective amount notto exceed $550,000 for the Tree Power Program's Free Shade Tree Coupon Campaign; 2. Authorize the City Manager or his designee,to credit customer accounts for trees purchased under this program in a collective amount not to exceed $100,000 under the Tree Power Program; and BACKGROUND The Riverside Public Utilities(RPU)Tree Power Program has been successfully operating for over 13 years. This is an energy efficiency program which provides rebate incentives to RPU electric customers who plant shade trees in locations adjacent to their homes or businesses to help conserve energy and save on summer cooling costs, which is an authorized use of Public Benefit Funds, pursuant to Public Utilities Code section 385(a)(1). Section 385(a)(1) provides that Public Benefits Funds may be used for"Cost-effective demand- side management services to promote energy efficiency and energy conservation." The program is administered using a two prong approach:the Tree Power Program&the Tree Power Program's Free Shade Tree Coupon Campaign, which gives RPU customers the opportunity to receive a maximum of six trees annually. The Tree Power Program allows customers to participate by purchasing up to five qualified trees per year. Each qualified tree purchased by the customer is eligible to receive a$25 rebate, which is credited to their RPU electric account. The Free Shade Tree Coupon Campaign was launched by RPU in 2001 and runs annually from March 1 to June 30. Each year, a coupon is printed on the back of the March utility bill that customers can take to a participating nursery to redeem for one free shade tree valued up to$25. The back of the bill strategy was created to ensure that a free tree coupon would reach all RPU electric customers as well as raise awareness for the regular Tree Power Program.