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W A T E R E N E R G Y a RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: October 19, 2012 ITEM NO: 9 SUBJECT: FISCAL YEAR 2412-13 TREE POWER PROGRAM ISSUE: That the Board of Public Utilities consider approval of the Fiscal Year 2012-13 Tree Power Program for its annual Free Shade Tree Coupon Campaign. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council authorize the Public Utilities General Manager, or his designee, to issue purchase orders and change orders to purchase orders, to Parkview Nursery, 4377 Chicago Avenue; Parkview Nursery, 3841 Jackson Street; and Louie's Nursery, 18550 Van Buren Boulevard, in a collective amount not-to-exceed the program's allocation amount of$400,000. BACKGROUND The Riverside Public Utilities(RPU)Tree Power program has been successfully operating for over 11 years. The program provides incentives for RPU electric customers to plant shade trees in locations around their homes or businesses to help conserve energy and save on summer cooling costs. Customers can receive a $25 rebate per qualifying tree, up to five trees per calendar year. In 2001, RPU launched the Free Shade Tree Coupon Campaign that runs annually from March 1 to June 30. 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 will reach all RPU customers as well as bring awareness to the regular Tree Power program. When the first coupon campaign was launched in March 2001, 3,700 trees were planted, which was a significant increase from the 214 trees planted from the previous year off the regular Tree Power Program. To date, over 117,000 trees have been planted by approximately 80 percent of the program's participants utilizing the back of the bill coupon campaign. Staff anticipates 12,000 more trees will be planted from this year's campaign. RPU works with a number of vendors located throughout the City of Riverside(City)that accept the free tree coupons. The current vendors are: Parkview Nursery, 4377 Chicago Avenue; Parkview Nursery, 3841 Jackson Street;and Louie's Nursery, 18550 Van Buren Boulevard. Some nurseries have dropped out of the program as a result of the recession driving more traffic to the three remaining vendors. It is difficult to determine which vendor customers will patronize because as in the 2011-12 campaign, some vendors redeemed as much as$150,000 in coupons while others redeemed much less. Staff recommends that the City Manager, or his designee, be given the authority to issue purchase orders, and change orders to purchase orders, in a collective amount not-to-exceed the program allocation of$400,000.