CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 1 of 3 Item #1 CITY COUNCIL AGENDA REPORT June 18, 2024 City Manager TITLE: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE BRIGHT CHOICE AS THE DEFAULT ELECTRICITY PRODUCT FOR THE CITY OF PLEASANTON'S MUNICIPAL ACCOUNTS TO SAVE APPROXIMATELY $80,000 PER YEAR OR $320,000 OVER THE NEXT FOUR YEARS SUMMARY The City is currently exploring ways to increase revenue and address its forecasted structural budget deficit. On May 21, 2024, the City held a workshop outlining a contingency menu of potential service reductions. To support this effort, staff recommends adjusting the default electricity product for municipal accounts from Renewable 100 to Bright Choice from July 1, 2024, to July 1, 2028, at which point the City would plan for and consider re-enrolling in Renewable 100. This change is expected to achieve significant cost savings (approximately $80,000 per year or $320,000 over the next four years), contributing to the City’s financial management while still maintaining a commitment to sustainability. RECOMMENDATION Adopt a resolution authorizing the City Manager to purchase Bright Choice as the default electricity product for the City of Pleasanton's municipal accounts to save approximately $80,000 per year or $320,000 over the next four years. BACKGROUND In January 2021, the City Council authorized the City Manager to purchase Renewable 100 as the default electricity product for the City of Pleasanton’s municipal accounts. Renewable 100, provided by Ava Community Energy (formerly East Bay Community Energy), offers 100 percent renewable energy with zero greenhouse gas (GHG) emissions. While this initiative has significantly contributed to the City’s sustainability goals, the current financial challenges necessitate exploring cost-saving measures. At a workshop on May 21, 2024, staff presented a report outlining a contingency menu of service reductions that would be considered as part of addressing the predicted structural budget deficit if a small 1/2-cent sales tax revenue measure is not placed on the November 2024 ballot, or voters do not approve the proposed sales tax increase in November 2024. A number of options were discussed at the workshop, including analyzing existing City agreements to look for potential savings. As staff continues to explore all options to reduce costs, following City Council direction, future items may be considered to reduce or eliminate funding for other community memberships and partnerships. Given the City’s financial outlook, staff has identified the potential to reduce electricity costs beginning in the next fiscal year by switching from Renewable 100 to Bright Choice. Bright Choice provides 49.4 percent eligible renewable energy. This adjustment aims to achieve significant cost savings (approximately $80,000 per year or $320,000 over the next four years) Page 5 of 248