County of Santa Clara Clerk of the Board Transmittal Item Authorization Notice
The Agenda Transmittal Item number 25
that was heard by the Board of Supervisors on
5/1 5/2001

has received the following Board Action:

Cansidered Literim Report from Emergenq^ Energy Task Force, and
took the following actions:

Approved increase of energy reduction goal for the Coimty's
total current energy use in County facilities from 10 percent to 20
percent over the base line year of July 1,1999 to June 30, 2000.
a.

Referred to the Finance and Government Operations Committee for

review: Development of a process to determine exemption of

departments and buildings from the energy reduction goal,
b.
Adopted Board-level operational policies to reduce energy
consumption in the summers of 2001 and 2002 and approved the
selected project initiatives to implement some of the policies.
Considered directing Board's representative on the Bay Area
Air Quality Management District(BAAQMD)Board to request
reconsideration of permitting requirements relating to voluntary use
of backup generators during stage 1 and stage 2 alerts to remove
c.

demand from power grid, and took no action.
d.

Delegated authority to Director, General Services Agency,to

negotiate Agreements and delegated authority to Purchasing Manager

to execute Agreements relating to procurement and energy
conservation measures,following approval by County Counsel as to

form and legality. Delegation of authority to expire September 1,2001.
e.
Directed County Executive to develop and submit to the Board
of Supervisors during June 2001 Budget Hearing, a budget inventory
item to augment utilities account based on latest
information
C'
rrvncprwafirvn
rf>o-t*rA\r\a rafp hiVoc anH pffAr-Hvpn#**;® nf tV>P
Distribution

6/5/01 Approved as amended transmittals to GSA Procurement, Co. Exec. &
Deputy Clerk for Energy Task Force.

/bh

County of Santa Clara Clerk of the Board Transmittal Item Authorization Notice
The Agenda Transmittal Item number 25that was heard by the Board of Supervisors on
5/15/2001

has received the following Board Action:
Interim Report from Emergency Energy Task Force.
continued g-

Directed County Executive to develop and submit to the Board of

Supervisors, through the Emergency Energy Task Force, by June 26, 2001,
recommended Board-level operational policies relating to operating and

contingency plans for rolling blackouts, to include a schedule of blackout
drills for non-exempt facilities with significant daily resident contact.
h.

Directed County Executive to develop and submit to the Board of

Supervisors, through the Emergency Energy Task Force, by September 1,
2001, an allocation of maximum allowable kilowatt-hours of electricity for

County facilities, by facility cluster, to achieve the 20 percent reduction, and

directed County Executive to report monthly, starting in September, to the
Board of Supervisors, through the Finance and Government Operations
Committee, on progress in achieving reduction goal.

Approved, in concept, proposed framework for collaborating with
other agencies and community-based organizations on achieving significant
energy conservation by the public and mitigating impacts of increased utility
I.

bills on low-income families and seniors, and directed County Executive to

provide updated information through a web link on the County's website
relating to funds available at the State and Federal level to provide relief to
low-income rate payers.

Distribution

County of Santa Clara
Office of the Board of Supervisors
County Government Center. East Wing
70 West Uedding .Street. lOih Floor
.San Jose. California 951 10

(408)299-432 I 299-2323
FAX 298-8460 TDD 993-8272

.2 Accepted Adopted Dented

Presented

BY THE BOARD OF SUPERVISORS
OF THE COUNTY OF SANTA CLARA
PhyiHs A. Perez, Clerk of the Board

By
Darte;

gffB 2001

MEMORANDUM
May 9,2001
TO:

Board of Supervisors

FROM:

Liz Kniss

/M-

Co-Chair(SFthe^Aergency Energy Task Force
Pete McHugh

Co-Chair of the Emergency Energy t^k Force

SUBJECT:

INTERIM REPORT

RECOMMENDED ACTIONS

Recommend that the Board:
1.

Increase the energy reduction goal for the County's total current energy use in

County facilities from 10®/o to 20 percent over the base line year of July 1,1999 to

June 30, 2000.
2.

Adopt Board-level operational policies that when implemented would reduce
energy consumption in the summers of 2001 and 2002(Appendix A )and
approve the selected project initiatives to implement some of these policies as
outlined in Appendix B.

3.

Instruct the Board's representative on the Bay Area Air Quality Management
District (BAAQMD)Board to request the BAAQMD reconsider its permitting
requirements relating to voluntary use of Backup Generators(BUGs)during Stage
1 and Stage 2 alerts to remove demand from the power grid.

Board of Super\'isors:
Donald F, Gage

Blanca Alvarado

Pete McHugh

Districi 1

Districi 2

District 3

James T. EJeall. jr.
Dislrict 4

Liz Kniss
District 5

Board of Supervisors
INTERIM REPORT

May 9,2001
Page 2
4.

5.

Delegate authority to the General Services Director to negotiate and the
Purchasing Manager to execute contracts related to energy procurement and
energy conservation measures,subject to review and approval as to form by
County Counsel, and with authority to terminate on September 1,2001.
Direct the County Executive to develop and submit to the Board during the Jime

the utilities account by an
budget hearings a budget inventory item that augments
the latest information regarding
amount that staff believes is appropriate based on

rate hikes and the effectiveness of the County's energy consen^ation measures.

6.

the Emergency Energy
Direct the County Executive to report to the Board through work
schedules and

Task Force by June 26,2001 with recommended alternative
facility closings, as well as other actions not identified yet to achieve the 20 percent
reduction goal.

7.

the
Direct the County Executive to develop and submit to the Board through
Board-level
Emergency Energy Task Force by June 26,2001 any recommended
plans for rolling
operational policies that relate to operating and contingency
similar
to
earthquake
drills for
blackouts,including a schedule of blackout drills
those non-exempt facilities that have significant daily resident contact.

8.

to the Board
Direct the County Executive to develop and submit for approval
1,
2001
an allocahon of
through the Emergency Energy Task Force by September
maximum allowable kilowatt-hours of electricity for County facilities by facility
cluster to achieve the twenty percent reduction. Direct the County Executive to

9.

Finance and
report monthly,starting in September, to tlie Board through the
the
Government Operations Committee on progress in achieving reduction goal.
Approve in concept the proposed framework for collaborating with other agencies
and community based organizations on achieving significant energy conservation
by the public and mitigating the impacts of increased utility bUls on low-income
families and seniors(Appendix G). Direct the County Executive to provide

on funds available at
updated information via a web link on the County's websiteratepayers.

the State and Federal level to provide relief to low-income
FISCAL IMPLICATIONS

The recommended operational policies and selected project initiatives do not require
anv additional General Fund resources beyond current budget authorizahons. As
to the County Executive,staff
aditional proposals come forward based on the direction
them.
will provide the General Fund costs associated with

Board of Supervisors
INTERIM REPORT

May 9,2001
Page 3
BACKGROUND

On February 27,2001, the Board of Supervisors approved the goals for and composition
of the Santa Clara County Emergency Energy Task Force. The Board established our

broad goal to identify policy recommendations for full Board relating to the
conservation and generation of renewable and non-renewable energy resources for the
County and for County facilities. Our charge also has five specific objectives:
1.
2.

3.

Assess projected energy supply and demand for the County and for County

facilities.

Identify short and long-term methods of energy conservation to reduce energy
use in County facilities by at least 10%.

Identify strategies to maintain peak efficiency during probable blackouts this

summer and in 2002.

4.

Identify power generation opportunities that may address countywide energy

5.

Work with interested parties to coordinate the dissemination of educational

needs as well as needs in County facilities.

messages relating to public energy conservation.

In addition to these objectives, the Task Force developed a sixth objective based on the

important role the State and Federal governments have and may have in this situation:
6. Identify potential Federal or State legislative actions that would facilitate both the
County conserving energy and generating renewable and non-renewable energy
in a way that is cost-effective, promotes the County's commitment to life-cycle
investments, and protects rate payers.

Our work plan calls for the Task Force to deliver to the Board this interim report to

address the immediate situation of this and next summer and a final report sometime in
October 2001 that will examine more long-term solutions and policy choices.
REASONS FOR RECOMMEDATIONS

This interim report covers short-term reduction strategies in energy use that involve

policies and Board direction to achieve a proposed revised energy reduction goal. It
also discusses operating and contingency plans for unanticipated rate increases and
rolling blackouts, as well as a framework for collaborating with other agencies and
community based organizations on achieving significant energy conservation by the
public and mitigating the impacts of increased utility bills on low-income families and
seniors.

Board of Supervisors
INTERIM REPORT

May 9,2001
Page 4

A.

REVISED REDUCTION GOAL

We believe strongly that the original goal of a ten percent reduction in the
County's energy usage needs must be revised given the most recent range in
System Operator(Cal
energy supply shortfall from the Califoniia Independent blackouts
and rate
ISO)and the risks to the Bay Area economy from rolling
increases. The situation facing California is critically urgent and requires

a revised goal of
extraordinary measures by all. We urge that the Board adopt
contained in this interim

twenty percent and approve the other recommendations
report to achieve this goal

On March 22,2001,the Cal ISO staff released a memorandum to its Board of
C). In that
Governors that provided an assessment of summer 2001no(Appendix
conservation energy
memorandum,the forecasted outlook shows that with

demand will exceed capacity by 3,700 megawatts(MW). At a ten percent
reduction in demand,the forecasted outlook shows a 1,300 MW surplus in supply.

ten
If, however,the adverse outlook in supply becomes the reality, even the
of power.
percent reduction in demand will leave a shortfall of 6,500 megawatts

On April 20,2001, the Bay Area Economic Forum released a report prepared by
of the potential financial
McK^sey and Company,that provided an initial analysis
by the San Jose
impact of rolling blackouts and rising energy costs. As reported
costs
passed
Mercury news(April 21,2001)rate hikes and increased billion m 2001.onAto
customers may cut disposable income by more than $1

may lose $500
percent increase in electricity rates means Bay Area businesses
companies $1 billion to
million in output. Rolling blackouts could cost Bay Areathe
region s annual

$5 billion in lost output this summer that would reduce
economic growth rate by a much as one percent.

B.

INITIAL POLICY AND RESOURCE RECOMMENDATIONS

its energy use
The County has already taken a number of actions to reduce and
important,they
as

outlined in Appendix D. While these actions are substantial
are, unfortunately, not adequate to achieve a ten percent reduction,let alone a
not only the ten percent but

twenty percent reduction. As one step to achieving the Board adopt the
also the revised reduction goal, we recommend thathow we do busmess m the
operational policies(Appendix A)that will change using certam generators to

short-term to reduce energy use. Since the policy of
would require^
remove demand from the power grid during Stage 1 and 2 alerts
mstruct
our County s
permits from the BAAQMD,we recommend that the Board
representative to ask the Air Board to reconsider these permit requirements.

Given the impact of rolling blackouts to the local economy and the acute impact on

Board of Supervisors
INTERIM REPORT

May 9,2001
Pages

those in need of County services, the temporary degradation of air quality by these
voluntary efforts seems justified.

To expedite the implementation of these operational policies, we recommend that
the Board delegate contract authority to the GSA Director and Purchasing
Manager relating to energy procurement and energy conservation. These
contracts would be subject to review and approval as to form by County Counsel
and the authority would end on September 1,2001. Contracts may include, but are
not limited to, procurement of natural gas,identification and design of energy
projects, implementing energy projects, revising existing vendor contracts affected

by implementing energy measures, and service agreements for staff assistance.
C.

ADDITIONAL ACTIONS TO BE IDENTIFIED AND TAKEN

We see a number of parallels with our current energy usage situation and Board's
recent experience with extra help. Over the years, the significant use of extra help
had integrated itself into the normal way that the County did business. While
some extra help workers preferred that status, there were many institutional
incentives that promoted its legitimate use and its misuse. When the Board began

to consider significant reductions in the use of extra help hours at the urging of
Service Employees International Union,Local 715, it heard about a number of dire
consequences that would happen to the organization resulting from the proposed

reductions. The Board remained firm in its resolve to make a significant reduction.

It ultimately established specific percentage reduction goals in the use of extra help
hours for each fiscal year covering all extra help and incorporated these goals for
Local 715 members into the labor agreement.

Just like extra help use, our current level of energy usage has become integrated
into the normal way that County employees do business. Employees are no longer
conscious of how they use it and there are many institutional incentives that

promote and sustain the current level. The previous actions and proposed changes
in operational policies are relatively easy and painless to the way the County now

does business. We believe, however,that they may not achieve the twenty percent
reduction. To do so, we must consider alternatives that only this extraordinary

situation justifies pursuing. San Mateo County has moved to a ten-hour workday
and four-day workweek for its General Government operations. Marin County
has adjusted the hours of operation to either reduce energy usage or shift when
they use energy during the day.

The Task Force has begun to explore the facility, service level and labor relations
impacts of alternative work schedules and facility closings. 'Fhese impacts are

complex and there has been insufficient time to fully understand them. Appendix

E outlines the main issues that must be resolved and a work plan. At this time, we
are

simply asking the Board to direct the County Executive to report to the Board

Board of Supervisors
INTERIM REPORT

May 9,2001
Page 6

through the Task Force by June 26, 2001 with recommended alternative work
schedules and facility closings, as well as other actions not identified yet to achieve
the twenty percent reduction goal.

D. CONTINUITY AND CONTINGENCY PLANNING

The Task Force has an objective to identify strategies to maintain peak efficiency

during probable blackouts this summer and in 2002. The County has over 150
offices, 19 clinics and 8 libraries that are outside areas that are exempted from

rolling blackouts. The County Executive has directed Agency and Department
Heads to develop facility level contingency plans by May 18 that consider rolling
blackout scenarios that range from infrequent to a heat wave that lasts for ten

days with daily blackouts for up to three hours(Appendix F). During the
preparation and review of these plans,staff may discover Board-level operational
proposed that the
policy issues that require Board action. Therefore, we have
to
the
Board by June 26,
County Executive develop and submit any such policies of blackout
drills

2001. We have also included direction to submit a sclnedule

similar to earthquake drills for those non-exempt facilities that have significant

daily resident contact to make sure that they know what to do when the lights go
out and stay out for an extended period of time.

an overall forty
The County Executive's recommended budget also
contains
all
funds
over
the FYOl
percent(40%)increase to the utilities accounts in
increase may,

approved budget. We believe that such a dramatic budget
however,turn out be too small. As the State surplus dwindles due to ener^
to raise rates will be
payments,the pressure on the Public Utilities Commission
Federal
Courts to declare
enormous. The utility companies have also asked the

them to pass the cost
illegal the State's deregulation provision that did not allow
rule
in
favor of the utilities,
of purchasing power on to the customer. If the courts
in these
ratepayers will have to make up the difference. To be prudentand
submit to the
circumstance, we recommend that County Executive develop
Board during the June budget hearings a budget inventory item that augments the
utilities account by an amount that staff believes is appropriate based on the latest
of the County's energy

information regarding rate liikes and the effectiveness
conservation measures. ,

E. MONTHLY,QUARTERLY AND ANNUAL USAGE TARGETS

There is a simple axiom of performance management:"What gets measured,gets
done." The Board has applied this axiom to the extra help reduction goals and

directed the County Executive to establish for each department maximum
allowable hours for the fiscal year. The County Executive also reports quarterly
the actual hours used and the maximum hours allowed to the relevant policy

committees and to the full Board in open session.

on

Board of Supervisors
INTERIM REPORT

May 9,2001
Page 7

We believe that the Board should treat this situation as seriously as we treat extra

help reduction. The Board should make an implicit contract with itself and its
residents to reduce energy consumption by twenty percent. The Board should
then direct the Coimty Executive to develop and submit for approval to the Board,
through the Emergency Energy Task Force, by September 1,2001 an allocation of
maximum allowable kilowatt-hours of electricity for County facilities by facility
cluster to achieve the twenty percent reduction. Then,to demonstrate
accountability to our residents and ourselves the County Executive should report
monthly, starting in September,to the Board through the Finance and Government
Operations Committee(FGOC)on monthly and year-to-date progress in achieving
the reduction goal. Since the Emergency Energy Task Force anticipates ending its
work in October, the FGOC is the appropriate Committee to initially review these

reports.
F.

FRAMEWORK FOR COLLABORATION

In addition to focusing on our internal operations, the Board directed the Task
Force to work with interested parties to coordinate the dissemination of
educational messages relating to public energy conservation. Appendix G outlines
a framework for collaboration with other government agencies and community

based organizations on achieving significant energy conservation by the public
and mitigating the impacts of increased utility bills on low-income families and

seniors. We recommend Board approval in concept as the Task Force continues to

work with staff to refine and implement it over the next few months. As one of the
initial steps, the County Executive should provide updated information via a web
Imk on the County's website on funds available at the State and Federal level to
provide relief to low-income ratepayers.
rONSEnTTENCFS OF NEG ATIVE ACTION

Negative action on these recommendations will make it extremely difficult for the

Board to achieve the goals and objectives it established for the County's Emergency
Energy Task Force.