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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JANUARY 13, 2020 ITEM NO: 8 SUBJECT: TREE POWER PROGRAM FISCAL YEAR 2019-20 PURCHASE ORDER APPROVALS FOR 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 $495,000. ISSUE: Recommend that the City Council approve the issuance of purchase orders for the Fiscal Year 2019-20 Tree Power Program Free Shade Tree Coupon Campaign to Parkview Nursery, 4377 Chicago Avenue; Parkview Nursery, 3841 Jackson Street; and Louie's Nursery, 18550 Van Buren Boulevard including the ability to make changes to the purchase order amounts based on the variable product demand of each nursery in a collective amount not to exceed $495,000. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve the issuance of purchase orders for the Fiscal Year 2019-20 Tree Power Program Free Shade Tree Coupon Campaign to Parkview Nursery, 4377 Chicago Avenue; Parkview Nursery, 3841 Jackson Street; and Louie's Nursery, 18550 Van Buren Boulevard including the ability to make changes to the purchase order amounts based on the variable product demand of each nursery in a collective amount not to exceed $495,000. BACKGROUND: The Riverside Public Utilities (RPU) is required by state law to establish energy efficiency goals and administer energy efficiency programs funded through the state -mandated Public Benefits Charge. The Tree Power Program has been a successful energy efficiency program for over 15 years and is responsible for over 220,000 trees being planted in the City of Riverside. Each tree conservatively provides energy savings of 164 kilowatt hours (kWh) over the life of the tree and consistently helps RPU achieve its energy savings goals at minimal cost. The Tree Power Program provides rebate incentives to RPU's electric customers who plant shade trees in locations adjacent to their homes or businesses to help conserve energy and save on summer cooling costs. While most trees are eligible for the program, due to the vulnerability of the City's citrus stock to Asian Citrus Psyllid and Huanglongbing (HLB), an agreement was made by RPU and the participating nurseries to remove any citrus trees from program participation. RPU customers can receive a maximum of six (6) free or rebated trees annually. A dual marketing approach is used for the Program: the Tree Power Rebate Program and the Tree Power Free Shade Tree Coupon Campaign. The Tree Power Rebate Program allows RPU customers to participate by purchasing up to five (5) qualified trees per year. Each qualified tree purchased is eligible to receive up to a $35 rebate, which is credited to the customer's RPU electric account. Customers must apply for the rebate after they have purchased the