FROM:
Administrative Services
SUBJECT:
Title
Feasibility Study and Cost/Benefit analysis of the formation of a Community Choice Aggregation.
End
RECOMMENDATION:
Recommendation
Approve staff recommendation to engage with GDS Associates Inc. to perform a feasibility study and a cost/benefit analysis for the formation of a Community Choice Aggregation for the City of Fontana.
End
COUNCIL GOALS:
• Operate in a businesslike manner by improving services through the effective use of technology.
• Create and maintain a dynamic team by emphasizing staff development.
• Enhance the local environment for future generations and create a healthy economic and environmental future by encouraging conservation, waste reduction, and recycling in the community.
• Enhance the local environment for future generations and create a healthy economic and environmental future by promoting programs that encourage reducing Green House Gas emissions.
DISCUSSION:
In 2002 The California Legislature passed AB117 enabling the creation of Community Choice Aggregation (CCA). These programs allow local jurisdictions to enter the electricity market on behalf of their constituency to buy or generate electrical power supplanting the existing electrical power provider.
Since 2002 numerous cities and Joint Power Authorities have formed CCA’s for the potential benefit of their constituency. Over the past 24 years CCA’s have matured and proliferated throughout the state.
Staff has been directed by Council to assess the feasibility of a CCA for the City. To that end, staff published an RFP requesting submissions to perform both a feasibility study for the CCA as well as provide a draft plan for CCA implementation. The RFP was posted on February 29, 2024 and closed on March 28, 2024.
Two companies responded to the RFP: GDS Associates Inc. based in Marietta, GA and Ascend Analytics based in Boulder, CO.
No Fontana or California based companies responded.
In summary:
The GDS Associates proposal was complete based on the RFP requests. It proposes a no cost feasibility study and outlines potential costs, timelines, tasks, challenges, and project planning for the implementation of a CCA in Fontana.
The Ascend Analytics proposal was incomplete as it only provided a response to the Feasibility Study portion of the RFP and did not respond to the implementation draft plan requested in the RFP. For the feasibility study Ascend Analytics proposed a cost of $450,000.
The RFP and the two responses are attached to this agenda item.
Based on the responses staff recommends engaging with GDS Associates to perform the feasibility study. Based on the results of the study, the City could make a decision on whether to moved forward with CCA implementation at a later date and that approval would be requested separately.
FISCAL IMPACT:
There is no cost to the city for performing the feasibility study.
MOTION:
Approve staff recommendation.