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HomeMy WebLinkAbout2008/04/22 Item 11 ITEM TITLE: SUBMITTED BY: REVIEWED BY: CITY COUNCIL AGENDA STATEMENT April 22, 2008 ItemL RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH DOUGLAS R. NEWMAN RELATED TO THE WORK OF THE NATIONAL ENERGY CENTER FOR SUSTAINABLE COMMUNITIES AND THE CHULA VISTA RESEARCH PROJECT TO ANALYZE HOW THE RESULTS OF THE CHULA VISTA RESEARCH PROJECT RELATE SPECIFICALLY TO CALIFORNIA'S GLOBAL WARMING SOLUTIONS ACT OF 2006 (AB 32) AND INCREASING THE CONTRACT AMOUNT BY TEN THOUSAND DOLLARS ($10,000) ECONOMIC DEVELOPMENT OFFICER ()') CITY MANAGER "7 I -Fi:; r D tZ. <Sj 4/5THS VOTE: YES D NO ~ SUMMARY Since March of 2006, staff has been working with the National Energy Center for Sustainable Communities (NECSC) to advance responsible use of energy resources through the planning efforts of three master-planned developments in eastern Chula Vista (the Chula Vista Research Project) and the Los Vecinos and Creekside Vistas projects. The resulting recommendations establish a precedent for a comprehensive approach to energy conservation, efficiency demand management and alternative energy at the individual building and community infrastructure level. The City previously -entered into an Agreement with Douglas Newman to publish and disseminate the results of the research of the NECSC. This amendment will analyze the results of the CVRP as they relate specifically to the State of California's Global Warming Solutions Act of 2006 (AB32), and will assist both the City and the State in implementing their respective energy and climate change policies. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines, therefore, pursuant to Section 15060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 11-1 April 22, 2008, Item1L- Page 2 of3 RECOMMENDATION That the Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION A primary goal of the Chula Vista Research Project (CVRP) was to disseminate the results of the NECSC research both regionally and nationally so that other communities could benefit from the research and individual projects. Funding provided by the California Energy Commission and the U.S. Department of Energy will produce a set of reference guides on sustainable community development practices based on extensive modeling of alternative design options that maximize the use of renewable and advanced energy technologies and systems. The guides are intended for public and private development professionals, financial institutions and State and local government agencies. Mr. Newman has begun to implement a detailed outreach plan to distribute and promote the guides utilizing funding from the San Diego Gas & Electric (SDG&E) Partnership Grant Program (Program) administered by the City's Conservation and Environmental Services Department. The Program was adopted by the City on September 19, 2006, and requires staff to provide public education and specific energy services that reduce kilowatt and therm consumption at the local government, commercial and residential level through December 31, 2008. The State of California has adopted the AB 32, Executive Order S-3-05, the California Energy Action Plan and the Integrated Energy Policy Report of 2007. The City Council recently adopted seven recommendations presented by the City's Climate Change Working group to reduce the community's greenhouse gas emissions or carbon footprint in order to meet the City's 2010 greenhouse gas emissions reduction targets. The proposed contract amendment will analyze the results of the CVRP as they relate specifically to the State of California's Global Warming Solutions Act of 2006 (AB32), and will assist both the City and the State in implementing their respective energy and climate change policies. More specifically, the amendment will highlight the City's sustainable urban energy planning and explain how these techniques can contribute to closing the gap between mandatory requirements, utility programs, and codes and standards in striving to cost-effectively achieve greenhouse gas emission reductions and energy savings throughout California. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations Section 1 8704.2(a)(l) is not applicable to this decision. FISCAL IMPACT There is no fiscal impact to the General Fund as a result of adopting this recommendation. To date, funding in the amount of$158,000 has been appropriated for this agreement in the City's Conservation Fund under the San Diego Gas & Electric Energy Partnership Grant Program, as approved and adopted on December 12, 2006, for costs associated with the 11-2 ApriI22,2008,hem~ Page 3 of3 scope of work contemplated in the subject agreement. Funds in the amount of$IO,OOO are currently available in the Conservation Fund and will be allocated to allow for the commencement of the amended scope of work contemplated in Attachment No. 1. ATTACHMENTS I. First Amendment to the Agreement between the City of Chula Vista and Douglas R. Newman for Professional Services related to the Chula Vista Research Project Outreach Initiative Prepared by: Craig Ruiz, Principal Economic D<Nelopment Specialist 11-3 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL L-/it~ (~/~ Ann Moore City Attorney Dated: '-I / lIP / () 1 j ( First Amendment to the Agreement between the City of Chula Vista and Pacific Municipal Consultants for the provision of Auditing and Engineering Services required for the update of the Poggi Canyon Basin Gravity Sewer Development Impact Fee and closure of various Assessment District Improvement Funds 11-4 ~RSTAMENDMENTTOTHEAGREEMENTBETWEEN THE CITY OF CHULA VISTA AND DOUGLAS R. NEWMAN For Professional Services related to the Chula Vista Research Project Outreach Initiative RECITALS WHEREAS, the City and Douglas R. Newman (Consultant) entered into an agreement (Agreement) dated December 3, 2007, for the preparation and execution of a detailed outreach plan to disseminate the Chula Vista Research Project (CVRP) Reference Guides; and WHEREAS, the City and Consultant desire to utilize the services of Larisa Dobriansky as a subconsultant to assist in establishing the value proposition of sustainable urban energy planning and to explain how the techniques described in the Reference Guides can contribute to closing the gap between mandatory requirements, utility programs, and codes and standards in striving to cost-effectively capture the economic potential for greenhouse gas emission reductions and energy savings within California. NOW, THEREFORE, the City and Consultant agree as follows: AGREEMENT 1. Exhibit A, Paragraph 8. Scope of Work and Schedule, A. Detailed Scope of Work, after "2008 Schedule, October through December - deliver presentations at conferences" insert the following: "Subconsultant shall perform the following tasks: Task 5 - Subconsultant shall review and document the process in which the Reference Guides and case studies were developed, consulting with the City, San Diego Gas & Electric, the California Energy Commission, the National Energy Center for Sustainable Communities, the Burnham-Moores Center, San Diego State University and the Otay Land Company and McMillin Development Company. Task 6 - Subconsultant shall research the status of sustainable urban energy planning in California generally, but with particular focus upon the San Diego region to delineate the processes developed in the City and the San Diego region as models. Task 7 - Subconsultant shall evaluate the Reference Guides and case studies in light of California's energy and climate priorities as reflected in AB-32, the Governor's Executive Order, the Energy Action Plan, the 2007 Integrated Energy Policy Report and the various proceedings in which climate and energy implementation strategies are being formulated. 11-5 Task 8 - Draft the White Paper on Sustainable Urban Energy Planning. The White Paper shall draw from the Reference Guides and case studies to explain the importance of establishing sustainable urban energy planning processes in California to help capture the economic potential within the State for greenhouse emissions reductions and energy savings. The White Paper shall explain what sustainable urban energy planning means; how it changes the traditional role oflocal and regional govermnents with respect to strategic growth management and land-use development; how it extends beyond "smart growth" planning; how it can be institutionalized building upon existing local and regional govermnent decision-making frameworks; and how it would concretely contribute to achieving California's energy and climate goals. In addition, the White Paper shall review the importance of the decision support tools and methods described in the Reference Guides to increase the analytical capability oflocal and regional officials, along with utilities, developers, financiers and others to first, assess systematically the costs and benefits of alternative urban design and siting scenarios, and second, to structure and fund effective local energy-related programs, measures and partnerships to overcome technical, institutional and other barriers to reducing per capita energy consumption and greenhouse gas emissions. Finally, the White Paper shall discuss the value of such decision support tools in promoting innovative fmancing schemes with the private sector and in underpinning decisions to attract investment in infrastructure that can accommodate advanced and emerging energy technologies. Deliverable - White Paper on Sustainable Urban Energy Planning Task 9 - Subconsultant shall draft a report entitled Recommendations to Advance Sustainable Urban Energy Planning in California. Based on the Reference Guides and case studies, this Report shall offer recommendations concerning how sustainable urban energy planning could be advanced within California, taking into account existing local and regional planning frameworks and using processes developed in the City and the San Diego region as models. Also, this Report shall set forth policy and implementation recommendations for the Climate Action Team, the AB-32 Economic and Technology Advancement and Market Advisory Committees arising from the Los Vicinos and Creekside Vistas development projects undertaken through partnerships between the City, San Diego Gas & Electric, the California Energy Commission and the developers. This Report shall incorporate input received at the Outreach Planning Workshop. Deliverable - Recommendations to Advance Sustainable Urban Energy Planning in California." 2. Exhibit A, Paragraph 8. Scope of Work and Schedule, B. Date for Commencement of Consultant Services, add the following: "The Effective Date of this First Amendment is April I, 2008." 3. Exhibit A, Paragraph 8. Scope of Work and Schedule, C. Dates or Time Limits for Delivery of Deliverables, after "Deliverable No.4: No later than December 3 L 2008" add the following: "Deliverable No.8: No later than September 30. 2008. Deliverable No.9: No later than September 30. 2008." 2 11-6 4. Exhibit A, Paragraph 10. Compensation, Single Fixed Fee Amount, delete "One Hundred Fifty-Eight Thousand Dollars ($158,000.00)" and replace with the following: "One Hundred Sixty-Eight Thousand Dollars ($168,000.00)". 5. Exhibit A, Paragraph 16, Permitted Subconsultants, delete "N/A" and replace with the following: "Larisa Dobriansky". All other terms of the Agreement shall remain in full force and effect. [Next Page is Signature Page.] 3 11-7 SIGNATURE PAGE TO THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN CITY OF CHULA VISTA AND DOUGLAS R. NEWMAN For Professional Services related to the Chula Vista Research Project Outreach Initiative IN WITNESS WHEREOF, City and Consultant have executed this First Amendment to the Agreement indicating that they have read and understood the First Amendment and indicate their full and complete consent to its tenns: Dated: ,2008 City ofChula Vista By: Cheryl Cox, Mayor Attest: Donna Norris, Interim City Clerk Approved as to form: Ann Moore, City Attorney Dated: "/~ /,.;:;' - C i\ c:"- .- {--- ~~~-r r____ ~'lj uugra~ R:Newm~ J By:' Exhibit List to First Amendment to Agreement: (X) Agreement between the City ofChula Vista and Douglas R, Newman dated December 3, 2007 J'lAttoml.:y\ELlSAIAGREEMENTS\Douglas R. Newman Agreement first Amendment.doc 4 11-8 First Amendment to the Agreement between City of Chula Vista and Douglas R. Newman for Professional Services related to the Chula Vista Research Project Outreach Initiative This First Amendment is entered into effective as of April 1. 2008, by and between the City of Chula Vista (City) and Douglas R. Newman (Consultant) with reference to the following facts: WHEREAS, the City and Consultant entered into an agreement (Original Agreement), dated December 3,2007, whereby Consultant provides consulting services to the City for professional services related to the Chula Vista Research Project Outreach Initiative; and WHEREAS, the City and Consultant now desire to amend the Original Agreement to allow for the Consultant to utilize the services of Larisa Dobriansky as a subconsultant to assist in the preparation of the Outreach Initiative, establishing the value proposition of sustainable urban energy planning and to explain how the techniques described in the reference guides can contribute to closing the gap between mandatory requirements, utility programs, and codes and standards in striving to capture cost-effectively the economic potential for greenhouse gas emission reductions and energy savings within California. NOW, THEREFORE, in consideration of the recitals and the mutual obligation of the parties set forth herein, the Agency and Consultant do hereby mutually agree as follows: 1. Section 8 of Attachment A of the Original Agreement, entitled Scope of Work and Schedule is hereby amended as follows: A. Consultant Detailed Scope of Work: Task 1 - Consultant shall conduct a workshop in the San Diego Region to develop outreach plan components and an implementation strategy that will engage professional associations and special interest organizations across the State in the delivery of the resource guides to their constituents. Consultant shall determine the participants who shall include senior representatives of California investor-owned and municipal utilities, the design-development- building and finance industries, and local municipal authorities. Dellverables - An Outreach Planning Workshop, and an Outreach Plan & Implementation Strategy. Task 2 - Consultant shall negotiate with professional and trade organizations to obtain their commitment to assist in the distributing of the Resource Guides to their members. Distribution will take place via transmission of electronic file versions of the guides to their members, special articles about the guides in regular newsletters and or opportunities to present and distribute the guides at their conferences. Deliverables - A minimum of 5 Participant Commitments to assist with the distribution of Resource Guides. 11-9 Task 3 - Consultant shall design and compose the outreach/marketing components for the reference guides (conversion of the guides into appealing text and graphic layouts suitable for the targeted lay audiences). The specific components will be determined by the workshop and co- designed with SDG&E and City of Chula Vista staffs. Oeliverables - - One branded set of hardcopy/printed guides; - A CD version of the guides suitable for duplication; - Promotional ad-coPY suitable for placement in magazines & websites; - A promotional multi-media presentation and script; - A joint Chula Vista - California Energy Commission - SDG&E Press Release; - A joint media event to announce the guides in the San Diego Region & Sacramento; - An opinion/editorial piece for media outlets; Task 4 - Prepare and deliver promotional speeches at a minimum of 5 key conferences in the State of California during 2008. Oeliverables - Presentation of Reference Guides at a minimum of 5 Conferences in California 2008 Schedule December 2007 - Arrange planning workshop logistics & recruit participants January 2008 - Conduct workshop & schedule fall speaking engagements February & March - secure partner commitments & resources April through July - design & compose outreach components August & September - print & package guides & outreach materials October - conduct media events & distribute guides & outreach materials October through December - deliver presentations at conferences B. Subconsultant Detailed Scope of Work: Task 1 - Review and document the process in which the Reference Guides and case studies were developed, consulting with the municipality of Chula Vista, San Diego Gas & Electric, the California Energy Commission, the National Energy Center for Sustainable Communities, the Burnham-Moores Center, San Diego State University and the developers. Task 2 - Research the status of sustainable urban energy planning in California generally, but with particular focus upon the San Diego region to delineate the processes developed in Chula Vista and the San Diego region as models. Task 3 - Evaluate the Reference Guides and case studies in light of California's energy and climate priorities as reflected in AB-32, the Governor's Executive Order, the Energy Action Plan, the 2007 Integrated Energy Policy Report and the various proceedings in which climate and energy implementation strategies are being formulated. Task 4 - Draft the first deliverable on the Sustainable Urban Energy Planning Process underpinning the two Chula Vista development projects. 11-10 Task 5 - Draft the second deliverable articulating next steps in advancing sustainable urban energy planning and policy and implementation strategy recommendations, taking into account the inputs at the workshops held in connection with the Chula Vista Research Projects, as well as the workshop for the Outreach Plan. Deliverables. 1. White Paper on Sustainable Urban Energy Planning: The first deliverable would draw from the Reference Guides and case studies to explain the importance of establishing sustainable urban energy planning processes in California to help capture the economic potential within the State for greenhouse emissions reductions and energy savings. Among other things, this White Paper would explain what sustainable urban energy planning means; how it changes the traditional role of local and regional governments with respect to strategic growth management and land- use development; how it extends beyond "smart growth" planning; how it can be institutionalized building upon existing local and regional government decision- making frameworks; and how it would concretely contribute to achieving California's energy and climate goals. In particular, this document would review the importance of the decision support tools and methods described in the Reference Guides to increase the analytical capability of local and regional officials, along with utilities, developers, financiers and others, to: (1) assess systematically the costs and benefits of alternative urban design and siting scenarios; and (2) structure and fund effective local energy-related programs, measures and partnerships to overcome technical, institutional and other barriers to reducing per capita energy consumption and greenhouse gas emissions. In addition, the White Paper would discuss the value of such decision support tools in promoting innovative financing schemes with the private sector and in underpinning decisions to attract investment in infrastructure that can accommodate advanced and emerging energy technologies. 2. Recommendations to Advance Sustainable Urban Enerqv Planninq in California: Based on the Reference Guides and case studies, the second deliverable would offer recommendations concerning how sustainable urban energy planning could be advanced within California, taking into account existing local and regional planning frameworks and using processes developed in Chula Vista and the San Diego region as models. Also, this deliverable would set forth policy and implementation recommendations for the Climate Action Team, the AB-32 Economic and Technology Advancement and Market Advisory Committees and other venues, arising from the two Chula Vista development projects undertaken through partnerships between the municipality, San Diego Gas & Electric, the California Energy Commission and the developers. 2008 Schedule: April and May - Attend workshops for the Chula Vista Research Project and Outreach Plan: perform research on the status of sustainable urban energy planning in California and particularly in the San Diego region: review and document the urban energy planning process undertaken in connection with the Chula Vista Research project; research the relevant authorities reflecting California's energy and climate priorities and ascertain the status of the relevant agency proceedings and venues. 11-11 June and July - Develop the two document deliverables. August and September - Print and package deliverables with guides and outreach materials. 2. Section 10 of Attachment A of the Oriainal Aareement. entitled Compensation is hereby amended as follows: _10. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: . Single Fixed Fee Amount: One Hundred Sixtv Eiaht Thousand Dollars ($168.000.00), payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee (X) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. 11-12 Phase 1. 2. 3. Fee for Said Phase $ $ $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: (1) ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant oftime and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. 11-13 Rate Schedule Name of Consultant Hourly Rate Category of Employee $ $ ( ) Hourly rates may increase by 6% for services rendered after [month], 20_, if delay in providing services is caused by City. 3. Section 16 of Attachment A of the Oriainal Aareement. entitled Permitted Subconsultants is hereby amended as follows: Larisa Dobriansky [Remainder of page intentionally left blank] 11-14 Signature Page to First Amendment to the Agreement between City of Chula Vista and Douglas R. Newman for Consulting Services related to the Chula Vista Research Project Outreach Initiative IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,2008 City of Chula Vista by: Suzanne Brooks, Purchasing Agent Approved as to form: Ann Moore, City Attorney Dated: By: Douglas R. Newman 11-15 Agreement between City of Chula Vista and Douglas R. Newman for Professional Services related to the Chula Vista Research Project Outreach Initiative Ibis agreement ("Agreement"), dated December 3, 2007 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1, is between the City-related entity as is indicated on Exhibit A, Paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, Paragraph 3, and the entity indicated on the attached Exhibit A, Paragraph 4, as Consultant, whose business form is set forth on Exhibit A, Paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, Paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, the National Energy Center for Sustainable Communities (NECSC) was founded by the City ofChula Vista, San Diego State University (SDSU); and the Gas Technology Institute (GTI), and with the support of the U.S. Department of Energy; and Whereas, the NECSC's mission is to promote healthier and more productive communities by integrating cleaner energy systems and energy-smart planning and design into new development and redevelopment projects; and Whereas, the NECSC executes its mission through collaborative research, demonstration and capacity-building (education and training) initiatives among government agencies, universities, utilities, companies and nongovernmental organizations across the nation; and Whereas, the NECSC is currently undertaking the Chula Vista Research Project (CVRP), which will research technologies, plans, public policies and market-feasible business models for energy- and resource-efficient community development in Chula Vista; and Whereas, the NECSC is collaborating with government agencies, companies and utilities to create a national demonstration site for energy-smart community development through the ultimate creation of up to 20-30 showcase technology, land use and management practice demonstration sites across the City of Chula Vista; and. Whereas, the NECSC and its partners has received to date over one million dollars in contract research funding from the U.S. Department of Energy, the California Energy Commission and San. Diego Gas and Electric Company to conduct research on the CVRP and related proj ects; and Whereas, the NEeSC intends to publish the results of the research in the form of reference guides based on the extensive modeling of alternative design options that maximize the use of 11-16 Page 1 ,c. .Cn) renewable and advanced energy-efficient technologies and systems that will allow development professionals and government agencies throughout California to utilize and incorporate the research findings into other development projects; and Whereas, on September 19,2006, the City Council accepted the grant for the San Diego Gas & Electric (SDG&E) Partnership Program; and Whereas, Mr. Newman is the Director of the National Energy Center for Sustainable Communities, a joint partnership between the City of Chula Vista, SDSU and GT! that is advancing energy-efficient community development in California -the subject matter of the CVRP reference guides; and Whereas, Mr. Newman holds Masters Degrees in urban and regional plRnning and public policy and atlministration and served as a senior program manager for the U.S. Environmental Protection Agency and the National Oceanic and Atmospheric Administration, where he was responsible for national outreach programs similar in nature to proposed CVRP Outreach Initiative. Additionally, Mr. Newman has successfully designed and managed two previous projects on related subjects for the City of Chula Vista - SDG&E Energy Efficiency Partnership Program; and Whereas, Mr. Newman has had an intimate involvement in creating, negotiating, and managing the CVRP from start to finish, and his principal authorship of its final technical reports and the reference guides that will be disseminated through the proposed outreach initiative; and Whereas, Mr. Newman warrants and represents that he is experienced and staffed in a manner such that he is and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; and (End of Recitals. Next Page starts Obligatory Provisions.) 11-17 Page 2 NOW, TIIEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services (" Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 1 O(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. 11-18 Page 3 F. Insurance Consultant must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract and the results of that work by the Consultant, his agents, representatives, employees or subcontractors and provide documentation of same prior to co=encement of work. The insurance must be maintained for the duration of the contract. Minimum Scope of Insurance Coverage must be at least as broad as: (I) Insurance Services Office Co=ercial General Liability coverage (occurrence Form CG0001). (2) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). (3) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Professional Liability or Errors & Omissions Liability insurance appropriate to the Consultant's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. Minimum Limits of Insurance Contractor must maintain limits no less than: 1. General Liability: (Including operations, products and completed operations, as applicable) 2. Automobile Liability: 3. Workers' Compensation Employer's Liability: 4. Professional Liability or Errors & Omissions Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Co=ercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. $1,000,000 per accident for bodily injury and property damage. Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee $1,000,000 each occurrence Deductibles and Self-Insured Retentions 11-19 Page 4 Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: (1) The City ofChula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Consultant, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. (2) The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to provide insurance. (3) The insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to the City by certified mail, return receipt requested. (4) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. (5) Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: (1) The "Retro Date" must be shown, and must be before the date of the contract or the beginning of the contract work. (2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract work. 11-20 Page 5 (3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum offive (5) years after completion of contract work. . (4) A copy of the claims reporting requirements must be submitted to the City for review. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI") with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Subcontractors Consultants must include all subconsultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subconsultants are subject to all of the requirements included in these specifications. G. Security for Performance (I) Performance Bond In the event that Exhibit A. at Paragraph 18, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, htto://www.fms.treas.e:ov/c570. and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the 11-21 Page 6 limits so required. Form must be satisfactory to the Risk Ma.1iager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Exhibit A, Paragraph 18. (2) Letter of Credit In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Exhibit A, Paragraph 18. (3) Other Security In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. H. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 9, and with the further understanding that delay in the provision of these materials beyond thirty (30) days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 17, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth 11-22 Page 7 in Exhibit A, Paragraph 10, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in Paragraph 18 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 11. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 17(C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 12, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the Consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 ("Liquidated Damages Rate"). Time extensions for delays beyond the Consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work uuless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer 11-23 Page 8 If Consultant is designated on Exluoit A, Paragraph 14, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or ifnone are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's that may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries. of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 14. . Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or 11-24 _ Page 9 Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for twelve months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party that may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or ftrms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omissions, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Consultant's indemnillcation shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited by arty prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. For those professionals who are required to be licensed by the state (e.g. architects, landscape architects, surveyors and engineers), the following indemniftcation provisions should be utilized: (1) Indemnillcation and Hold Harmless Agreement With respect to any liability, including but not limited to claims asserted or costs, losses, attorney fees, or payments for injury to any person or property caused or claimed to be caused by the acts or omissions of the Consultant, or Consultant's employees, agents, and officers, arising 11-25 Page 10 out of any services performed involving this project, except liability for Professional Services covered under Section 7.2, the Consultant agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. The Consultant's duty to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Consultant's obligation and duties under Section Exhibit A to this Agreement. (2) Indemnification for Professional Services. As to the Consultant's professional obligation, work or services involving this Project, the Consultant agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attorneys fees, that arise out of, or pertain to, or relate to the negligence, recklessness or willful misconduct of Consultant and its agents in the performance of services under this agreement, but this indemnity does not apply liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by City or the agents, servants, or independent contractors who are directly responsible to City, or arising from the active negligence of City. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data., studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 11-26 Page 11 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. lfthe Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 11-27 Page 12 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim bas fIrst been presented in writing and fIled with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions ofwbich are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifIcally authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 15 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served ifpersona1ly served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certifIed, with return receipt 11-28 Page 13 requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) 11-29 Page 14 Signature Page to Agreement between City ofChula Vista and Douglas R. Newman for Professional Services related to the Chula Vista Research Project Outreach Initiative IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: J/i!>/o1 I ' City ofChula Vista By: o~ fA e~ Cheryl C~, M or Attest: ~ I~~ "--/ I City Clerk Approved as to form: ~~.t0 ..J;~ ~ Ann Moore, City Attorney ~/;t//()fJ Dated: ~..~~ .-..' D{, . an '-... -:J- / Exhibit List to Agreement ( X ) Exhibit A ( X ) Exhibit B - Agreement to Jointly Deliver the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program between the City Of Chula Vista and San Diego Gas & Electric Company, dated July 25, 2006 ( X) Exhibit C - Nondisclosure 11-30 Exhibit A to Agreement between City of Chula Vista and Douglas R. Newman 1. Effective Date of Agreement: December 3, 2007 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: ("City") , a [insert business form] 3. Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Consultant: Douglas R. Newman 5. Business Form of Consultant: ( X ) Sole Proprietorship ( ) Partnership ( ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 5415 N. Sheridan Road Suite 1711 Chicago, lL 60640 Voice Phone: (773) 899-0801 11-31 Page 16 7. General Duties: Consultant will prepare and execute a detailed outreach plan to disseminate the Chula Vista Research Project (CVRP) Reference Guides to local and state government agencies and private development companies across the State of California during the 2008 calendar year. This initiative will be designed as a peer-to-peer program for energy efficiency to conform to the SDG&E's Partnership fund requirements. Consultant shall abide by each and every term and condition of the Agreement to Jointly Deliver the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program between the City Of Chula Vista and San Diego Gas & Electric Company, dated July 25, 2006, a copy of which is attached hereto as Exhibit B to this Agreement and the Disclosure Agreement, attached hereto as Exhibit C to this Agreement. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Task 1 _ Consultant shall conduct a workshop in the San Diego Region to develop outreach plan components and an implementation strategy that will engage professional associations and special interest organizations across the State in the delivery of the resource guides to their constituents. Consultant shall determine the participants who shall include senior representatives of California investor-owned and municipal utilities, the design-development- building and finance industries, and local municipal authorities. Deliverables - An Outreach Planning Workshop, and an Outreach Plan & Implementation Strategy. Task 2 _ Consultant shall negotiate with professional and trade organizations to obtain their commitment to assist in the distributing of the Resource Guides to their members. Distribution will take place via transmission of electronic file versions of the guides to their members, special articles about the guides in regular newsletters and or opportunities to present and distribute the guides at their conferences. Deliverables - A minimum of 5 Participant Commitments to assist with the distribution of Resource Guides. Task 3 _ Consultant shall design and compose the outreach/marketing components for the reference guides (conversion of the guides into appealing text and graphic layouts suitable for the targeted lay audiences). The specific components will be determined by the workshop and co-designed with SDG&E and City of Chula Vista staffs. Deliverables - _ One branded set ofhardcopyfprinted guides; _ A CD version of the guides suitable for duplication; _ Promotional ad-copy suitable for placement in magazines & websites; _ A promotional multi-media presentation and script; _ A joint Chula Vista - California Energy Commission - SDG&E Press Release; Page 17 11-32 _ A joint media event to announce the guides in the San Diego Region & Sacramento; _ An opinion/editorial piece for media outlets; Task 4 _ Prepare and deliver promotional speeches at a minimum of 5 key conferences in the State of California during 2008. Deliverables - Presentation of Reference Guides at a minimum of 5 Conferences in California 2008 Schedule December 2007 - Arrange planning workshop logistics & recruit participants January 2008 - Conduct workshop & schedule fall speaking engagements February & March - secure partner commitments & resources April through July - design & compose outreach components August & September - print & package guides & outreach materials October - conduct media events & distribute guides & outreach materials October through December - deliver presentations at conferences B. Date for Commencement of Consultant Services: ( X ) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery ofDeliverables: Deliverable No.1: No later than January 31. 2008 Deliverable No.2: No later than March 31. 2008 Deliverable No.3: No later than Julv 31. 2008 Deliverable No.4: No later than December 31. 2008 D. Date for completion of all Consultant services: No later than December 31, 2008 9. Materials Required to be Supplied by City to Consultant: N/A 10. Compensation: A. (X) Single Fixed Fee Arrangement. Page 18 11-33 For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: One Hundred Fifty Eight Thousand Dollars ($158.000.00), payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee (X) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not co=ence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. PnH<:e 1. 2. 3. Fee for Said Phase $ $ $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest Page 19 11-34 free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim. payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: . (1) ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ( ) Limitation without Further Authorization on Time and Materials A.rrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Category of Employee Rate Schedule Name of Consultant Hourly Rate $ $ $ $ $ Page 20 11-35 ( ) Hourly rates may increase by 6% for services rendered after [month], 20_, if delay in providing services is caused by City. 11. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes aU costs. Cost or Rate $ $ $ $ $ $ $ $ $ $ () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiable Direct Costs: , not to exceed $ , not to exceed $ 12. Contract Administrators: City: Craig Ruiz, Principal Community Development Specialist City of Chula Vista Community Development Department 276 Fourth Avenue Chula Vista, CA 91910 Consultant: Douglas Newman 5415 N. Sheridan Road Suite 1711 Chicago, IL 60640 13. Liquidated Damages Rate: ( ) $ ( ) Other: per day. 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. Page 21 11-36 ( ) FPPC Filer ( ) Category No. 1. Investments and sources of income. ( ) Category No.2. Interests in real property. ( ) Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( ) Category No.4. Investments in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. ( ) Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. ( ) Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: N/A 15. ( ) Consultant is Real Estate Broker and/or Salesman 16. Permitted Subconsultants: N/A 17. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (X) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month (X) End of the Month ( ) Other: Page 22 11-37 C. City's Account Number: 18. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ ( ) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: ( ) Retention Amount: $ % Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: H:Attomey/2ptylS Page 23 11-38 AGREEMENT TO JOlNTL Y DELIVER THE 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM BETWEEN CITY OF CHULA VISTA and SAN DIEGO GAS & ELECTRIC COMPANY Dated: July 25, 2006 This program is funded by California utility customers under the alllSpices oithe California Public Utilities Commission. 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-39 THIS AGREEMENT TO JOlNTL Y DELIVER THE 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM (the "Agreement"), dated July 25,2006, is effective as of January 1, 2006 ("Effective Date'') by and among SAN DIEGO GAS & ELECTRIC COMPANY ("SDG&E"), and THE CITY OF CHULA VISTA ("City"). SDG&E and City may be referred to herein individually as a "Party" and collectively as the "Parties." REClT ALS WHEREAS, on September 22, 2005 the California Public Utilities Commission (the "Commission'') in D.05-09-043 authorized certain energy efficiency programs to be delivered to California utility customers for the years 2006 through 2008 and the continuation of programs where local governmental entities partnered with utilities to deliver energy efficiency information and education to utility customers; WHEREAS, SDG&E submitted applications for the implementation of energy efficiency programs which included the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program (hereinafter referred to as the "Program"), involving the delivery of energy efficiency funding, incentives, information, training and materials to City, its residents, developers, and South Bay cities in SDG&E's service territory; WHEREAS, the Parties desire to set forth the terms and conditions under which the Program for the 2006 through 2008 program years shall be implemented; NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. DEFlNITIONS 1.1. Agreement: This document and all exhibits attached hereto and incorporated herein, and as amended from time to time. 1.2. ALJ: The Administrative Law judge assigned to the Commission's Energy Efficiency Rulemaking (R.OI-08-028) or its successor proceeding. 1.3. Amendment: A future document executed by the authorized representatives of all Parties which changes or modifies the terms of this Agreement. 104. Authorized Budget: The Commission-approved total for performance of the Authorized Work is $2,193,225.00 as set forth in the Concept Paper. 1.5. Business Day: The period from one rnidnight to the following midnight, excluding Saturdays, Sundays, and holidays. 2 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-40 1.6. Calendar Day: The period from one midnight to the following midnight, including Saturdays, Sundays, and holidays. Unless otherwise specified, all days in this Agreement are Calendar Days. 1.7. Concept Paper: The Parties' plans for implementing the Program in SDG&E's service territory, approved by the Commission, and is attached hereto and incorporated herein as Exhibit A. U. Contractor: An entity contracting directly or indirectly with a Party, or any subcontractor thereof subcontracting with such Contractor, to furnish services or materials as part of or directly related to such Party's Authorized Work obligations. City's Contractors shall be selected from SDG&E's approved list, where applicable, and shall not include City's contract stafflabor for the Program. 1.9. Eligible Customers or Customers: Customers eligible for Program services are SDG&E customers. 1.10. Energy Efficiency Measure (or Measure): As such term is used in the Commission's Energy Efficiency Policy Manual, Version 3, August 2005, a program or measure approved by the Commission to reduce energy consumption (whether electrical energy or gas energy). 1.11. EM& V: Evaluation, Measurement and Verification of the Program pursuant to Commission requirements. 1.12. Gas Surcharge: The funds collected from gas utility ratepayers pursuant to Section 890 et al. of the Califomia Public Utilities Code for public purposes programs, including energy efficiency programs approved by the Commission. 1.13. Program Expenditures: Actual (Le., no mark-up for profit, ailm;n;strative or other indirect costs), reasonable expenditures that are directly identifiable to and required for the Authorized Work, up to the amounts budgeted in the Concept Paper's budget worksheets for such Authorized Work. 1.14. Public Goods Charge (pGC): The funds collected from electric utility ratepayers pursuant to Section 381 of the California Public Utilities Code for public purposes programs, including energy efficiency programs approved by the Commission. In addition, all terms used in the singular will be deemed to include the plural, and vice versa. The words "herein," "hereto," and "hereunder" and words of similar import refer to this Agreement as a whole, including all exhibits or other attachments to this Agreement, as the same may from time to time be amended or supplemented, and not to any particular subdivision contained in this Agreement, except as the context clearly requires otherwise. "Includes" or 3 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-41 "including" when used herein is not intended to be exclusive, or to limit the generality of the preceding words, and means "including without limitation." The word "or" is not exclusive. 2. PURPOSE The Program is funded by California utility ratepayers and is administered by SDG&E under the auspices of the Commission. The purpose of this Agreement is to set forth the terms and conditions under which the Parties will jointly implement the Program. The Program and work authorized pursuant to this Agreement is not carried on for profit. This Agreement is not intended to and does not form any ''partnership'' within the meaning of the California Uniform Partnership Act of 1994 or otherwise. 3. PROGRAM DESCRIPTION The Energy Efficiency and Conservation Outreach Program ("ECO Program") is being offered by SDG&E and the City. The ECO Program aims to enable City, its residents, developers, and South Bay cities to implement energy efficiency and conservation measures by overcoming existing barriers. South Bay includes City, Coronado, Imperial Beach, National City and unincorporated areas of the San Diego County. The ECO Program also aims to increase public awareness about energy efficiency and conservation through non-traditional education and outreach outlets and channels used by cities and San Diego County. The ECO Program will enable target customers to implement energy efficiency and conservation measures by overcoming barriers that they face. The target customers and barriers for each customer include: . City of Chula Vista: The City does not have adequate resources to assign dedicated staff to pursue and implement energy efficiency projects on a consistent basis. . Residents: Residents do not have a clear understanding of what programs are available to them and which programs they qualify for. Residents also need face-to- face assistance to access and participate in energy efficiency programs. . Condominium Conversion Developers: Developers do not have the appropriate motivations to enhance the energy efficiency level of condominium conversion projects beyond Title 24 compliance. . South Bay Cities: South Bay cities lack policies, procedures and plans to institutionalize energy efficiency and conservation measures into how they do business. 4. AUTHORlZED WORK 4 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-42 4.1. Scope. The work authorized by the Commission for the Program is set forth in the Concept Paper for the service territory of SDG&E ("Authorized Work") and shall be performed by the Parties pursuant to the tenns of this Agreement. 4.2. Objectives. Major objectives ("Objectives") for the Program are as follows: 4.2.1. City EnerlIT Efficient Facilities Showcase Proiect. Reduce the City of Chula Vista's energy use by 5% per year for a cumulative reduction of 15% by 2008 relative to 2005 energy use. 4.2.2. ECO Exhibit Proiect. Increase public awareness by assisting up to 160 people per day, with access to information through the implementation of up to four (4) Eco Exhibits and/or active participation in energy efficiency and conservation programs. 4.2.3. EnerlIT Efficient Housing Proiect. Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further incorporating measures that go beyond Title 24 requirements by at least 10% or by reducing energy use for each unit by an average of 515 kW-hr and 15 th=s per month. At least 500 condominiums per year will be targeted for upgrades for a total of 1,500 energy efficient condominiums by 2008, provided., however, the Parties may agree on a replacement program that would be designed during the program cycle, which design shall require the mutual agreement of both Parties and shall comply with Commission procedures. 4.2.4. Municioal EnerlIT BMPs Education Proiect. Sponsor and coordinate at least four (4) energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initially assist South Bay cities develop energy action plans to manage energy. By the fourth workshop, participating cities will have an Energy Action Plan to reduce their energy use. Workshops will be targeted to East County cities in 2007 and North County cities in 2008. The Program shall meet the objectives and goals set forth in the Concept Paper. 5. OBLIGATIONS OF THE PARTIES 5.1. Generallv. Each Party shall perform its Authorized Work obligations within the Authorized Budget and in conformance with the deliverables, schedules (including the Objectives) and the budgets associated with such Authorized Work as set forth in the Concept Paper, and shall furnish the required labor, equipment and material with the degree of skill and care that is required by current professional standards. 5 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-43 5.2. Additional Obligations of Citv. 5.2.1. City shall obtain the approval of SDG&E when developing Program marketing materials prior to any distribution, publication, circulation or dissemination in any way to the public. In addition, all advertising, marketing or otherwise printed or reproduced material used to implement, refer to or is in any way related to the Program must contain the following language: "This program is funded by California utility ratepayers and !Itlministered by San Diego Gas & Electric Company, under the auspices of the California Public Utilities Commission." 5.2.2. City will communicate regularly with the program representative of SDG&E, and shall advise SDG&E of any problems or delay associated with City's Authorized Work obligations. 5.3. Additional Obligations of SDG&E. 5.3.1. SDG&E will be actively involved in all aspects of Program delivery. SDG&E will use its reasonable efforts to add value to the Program by dedicating the human resources necessary to implement the Program successfully and providing in-kind services support for the Program's marketing and outreach activities. 5.3.2. SDG&E shall provide, at no cost to the Program, informational and educational materials on SDG&E's statewide and local energy efficiency programs to City to enable City to implement the Program. 5.3.3. SDG&E shall provide a program representative on a part-time basis, who will be the point of contact between City and SDG&E for the Program. 5.4. EM&V. Once the Commission has approved and issued an evaluation, measurement and verification ("EM&V") plan for the Program, such EM&V plan shall be attached to this Agreement as Exhibit B and shall be incorporated herein by this reference. Any subsequent changes or modifications to such EM&V plan by the Commission shall be automatically incorporated into Exhibit B. 6. ADMINlS1RATlON OF PROGRAM 6.1. Decision-makiDl1 and Approval. 6.1.1. Unless otherwise set forth in this Agreement, the following actions and tasks require 11nanimous approval of the Parties (which approval may be withheld by each such Party in its sole and absolute discretion): 6 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-44 a. Any action that materially deviates from the Concept Paper. b. Any action that materially impacts the Concept Paper's schedule or the Program. c. Any action that materially impacts the Program's budget set forth in the Concept Paper. d. Selection of any Contractor not previously approved by SDG&E. 6.1.2. Unless otherwise specified in this Agreement, the Parties shall document all material Program decisions, including, without limitation, all actions specified in Section 6.1.1 above, in meeting minutes or, if taken outside a meeting, through written communication, in all cases which shall be maintained in hard copy form on file by the Parties for a period of no less than ten (10) years after the expiration or termination of this Agreement. 6.2. Regular Meetings. During the Term of this Agreement, the Parties shall meet on a regular basis, which shall occur no less than quarterly, at a location reasonably agreed upon by the Parties, and shall engage in routine weekly communication to review the status of the Program's deliverables, schedules and the budgets, and plan for upcoming Program implementation activities. Any decision-making shall be reached and documented in accordance with the requirements of Section 6.1.2 above. 6.3. Coordinating the PrOgram Activities. Each Party shall be responsible for (i) coordinating the implementation of its Authorized Work obligations with the other Party, and eii) monitoring the overall progress of the Authorized Work, to ensure that the Program remains on target, (including achieving the Program's energy savings and demand reduction goals), on schedule (including pursuant to the Objectives set forth in Section 4.2), and meets all reporting and other filing requirements. 6.4. Regular Communication. The Parties agree to communicate regularly with the other Parties and to advise the other Party of any problems associated with successful implementation of the Program. 6.5. Coordinating with Other Ener~ Efficiencv Programs. As applicable, SDG&E shall coordinate with other existing or selected programs (including programs targeting low-income customers) to enhance consistency in incentives and other Program details, minimio,e duplicative administrative costs and enhance the possibility that programs can be marketed together to avoid duplicative marketing expenditures. All Parties will coordinate with other energy programs to maximize customer satisfaction and energy savings. 6.6. Non-Responsibilitv for Other Parties. Notwithstanding anything contained in this Agreement in the contrary, a Party shall not be responsible for the performance or non- performance hereunder of any other Party, nor be obligated to remedy any other Party's defaults or defective performance. 7 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11 -45 7. DOUBLE DIPPING PROHIBITED. In performing its respective Authorized Work obligations, a Party shall implement the following mechanism and shall take other practicable steps to m;n;mi7ce double-dipping: 7.1. Prior to providing incentives or services to an Eligible Customer, City shall obtain a signed form from such Eligible Customer stating that: 7.1.1. Such Eligible Customer has not received incentives or services for the same measure from any other SDG&E program or from another utility, state, or local program; and 7.1.2. Such Eligible Customer agrees not to apply for or receive incentives or services for the same measure from another utility, state, or local program. City shall keep its Eligible Customer-signed forms for at least ten (10) years after the expiration or termination of this Agreement. 7.2. City shall not knowingly provide an incentive to an Eligible Customer, or make payment to a Contractor, who is receiving compensation for the same product or service either through another ratepayer funded program, or through any other funding source. 7.3. City represents and warrants that it has not received, and will not apply for or accept, incentives or services for any measure provided for herein or offered pursuant to this Agreement or the Program from any other utility, state or local program. 7.4. The Parties shall take reasonable steps to minimize or avoid the provision of incentives or services for the same measures provided under this Program from another program or other funding source ("double-dipping''). 8. REPORTING 8.1. Reuorting Requirements. The Parties shall implement those reporting requirements set forth in Exhibit C attached hereto and incorporated herein by this reference, as approved by the Commission and as the same may be amended from time to time, or until the Commission otherwise requires or issues different or updated reporting requirements for the Program, in which case and at which time such Commission- approved reporting requirements shall replace the requirements set forth in Exhibit C in their entirety. 8.2. Commission ReoortinlZ Requirements Manual. All reports shall be submitted in accordance with the requirements of the latest version of the Commission's Reporting Requirements Manual (currently Version 3, August 2005) and any other reporting 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-46 o . protocol established by Commission staff. The Parties shall use their best efforts to provide any additional information as requested by SDG&E or by Commission staff. 9. PAYMENTS 9.1. Authorized Budget. No Party shall be entitled to compensation in excess of the total amounts approved by the Commission in the Authorized Budget for such Party's Authorized Work obligations. However, if SDG&E executes any fund shift in accordance with Section 9.4 below, then each Party shall be entitled to compensation up to, but not exceeding, the Authorized Budget, as revised to reflect such fund shift, for such Party's Authorized Work obligations. 9.2. Pro= Expenditures. Each Party shall be entitled to spend PGC or Gas Surcharge Program Funds on Program Expenditures incurred by such Party. 9.3. Payment to City. In order for City to be entitled to PGC or Gas Surcharge funds for Program Expenditures: 9.3.1. City shall invoice SDG&E quarterly, in advance and no later than the 15th day of the flIst calendar month of each calendar quarter, for all reasonable projected Program Expenditures for such quarter ("Quarterly Invoice"), together with all such documentation reasonably required by SDG&E to evidence the calculation of such projected Program Expenditures and all such other documentation required to be attached thereto as described in Section 9.3.2 below. With respect to the quarter in progress at the time of execution of this Agreement, City shall submit, by the 15th day of the month in which such execution occurred (or if such 15th day has passed, then the 15th day of the following month), such Quarterly Invoice for such quarter in progress (together with all such documentation). 9.3.2. At the end of each calendar quarter of the term of this Agreement, City shall provide an accounting of all Program Expenditures that actually incurred by City during the course of such quarter. City shall calculate the difference between the actual Program Expenditures incurred by City during the quarter just passed and the amount advanced by SDG&E under Section 9.3.1 in respect of such quarter. If such actual Program Expenditures incurred by City during such quarter is greater than such amount advanced by SDG&E for such quarter, then City's Quarterly Invoice for the following calendar quarter shall include a charge in the amount of such difference. If the actual Program Expenditures incurred by City during such quarter is less than such amount advanced by SDG&E for such quarter, then City's Quarterly Invoice for the following calendar quarter shall include a credit in the amount of the amount of such difference. As a condition to payment by SDG&E in respect of a 9 2006-2008 CITY OF CHULA VlSTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-47 Quarterly Invoice, City shall include with such Quarterly Invoice all such documentation reasonably required by SDG&E evidencing the accounting set forth in this Section 9.3.2 for the previous calendar quarter. 9.3.3. Upon the expiration or earlier termination of this Agreement or the Program, City shall provide a true-up of Program Expenditures during the entire term of the Program and shall provide (or shall have provided) no later than thirty (30) days after the effective date of such expiration or earlier termination all such documentation reasonably requested by SDG&E to evidence all Program Expenditures incurred by City during the term of the Agreement and the Program. If the total actual Program Expenditures incurred by City during the term of the Program is greater than the total amount of Program Expenditures paid by SDG&E during the term of the Program, then City shall deliver an invoice SDG&E in the amount of such difference at the same time City delivers the documentation described above in this Section 9.3.3. If the total actual Program Expenditures incurred by City during the term of the Program is less than the total amount of Program Expenditures paid by SDG&E during the term of the Program, then City shall refund the difference to SDG&E within thirty (30) calendar days after the effective date of such expiration or earlier termination. 9.3.4. SDG&E shall pay all invoices within thirty (30) calendar days after receipt such invoice and all documentation and accountings required to be delivered with such invoice as set forth in this Section 9.3, exclusive of any disputed items. 9.3.5. City shall submit monthly and quarterly reports to SDG&E, in a format reasonably acceptable to SDG&E and containing such information as may be required for the reporting requirements set forth in Section 8 above ("Periodic City Reports"), by the tenth (10~ Calendar Day of the calendar month following performance, setting forth all Program Expenditures incurred during the prior calendar month or quarter, as applicable. 9.3.6. Documentation necessary to substantiate the Program Expenditures shall include, without limitation, the following: a. Incentives: Subject to the provisions of Section 7, for each incentive paid to Eligible Customers or Contractors (other than point of purchase programs): (i) Eligible Customer or Contractor name, address and telephone number; (ii) the type and quantity of each measure installed or received; (iii) the amount of each incentive paid, and 10 ZOO6-Z008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-48 (iv) the date each payment was provided or each measure was installed or received. b. Labor: For each of the Program's budget categories applicable to City (e.g. Direct Implementation), a list of individuals and total hours worked and labor rate(s) for each person during the month in each budget category. c. Equipment and Material: A list of equipment and material used and/or installed in the performance of the Authorized Work during the month, and supporting documentation for the cost incurred by City therewith. d. Overhead items other than travel/training/conferences: Supporting documentation for overhead items such as rent, computer equipment, facility charges, is required and shall be provided in accordance with the provisions of Exhibit C. However, such information must be provided upon request by either SDG&E or the Commission. e. Travel/Training/Confereoce: Supporting documentation for all travel-related expenditures. While original receipts need not be submitted, a detailed expense report for all travel expenses should be provided, which includes airfare, mileage, meals, lodging, parking, etc, in the format approved by SDG&E. A detailed travel expense report should include the following information: name of person incurring expense, reason for expense, date(s) incurred and type of expense (e.g. airfare, airport parking, rental car, other parking, mileage, meals, hotel, other costs, if any). f. Contractor Costs: Copies of all Contractor invoices. If only a portion of the Contractor costs applies to the Program, City shall clearly indicate the line items or percentage of the invoice amount that should be applied to the Program, as provided in Exhibit C. g. Marketing: A copy of each distinct marketing material produced, with quantity of a given marketing material produced and the method of distribution. 9.3.7. City understands that only those costs listed in the Allowable Cost Table set forth in Exhibit C can be submitted for payment. All invoices submitted to SDG&E must report all Program Expenditures using the allowable cost items included on the Allowable Cost Table set forth in Exhibit C. 11 2006-2008 CITY OF CHULA VlSTAENERGYEFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-49 9.3.8. SDG&E reserves the right to reject any City invoiced amount for any of the following reasons: a. The invoiced amount, when aggregated with previous Program Expenditures, exceeds the amount budgeted therefor in the Authorized Budget for such Authorized Work. b. There is a reasonable basis for concluding that such invoiced amount is unreasonable or is not directly identifiable to or required for the Authorized Work, the Concept Paper or th~ Program. c. Such invoiced amount, in SDG&E's sole discretion, contains charges for any item not authorized under this Agreement or by the Commission, or is deemed untimely, unsubstantiated or lacking proper documentation. 9.3.9. Should SDG&E reject any Program Expenditure of City, City invoice or Periodic City Report, SDG&E may request such additional performance required from City, modification required to City's invoice or such other action as may be required of City, and any continuing dispute therefrom shall be resolved in accordance with the procedures set forth in Section 14. 9.3.10. City shall maintain for a period of not less than ten (10) years all documentation reasonably necessary to substantiate the Program Expenditures, including, without limitation, the documentation set forth in Section 9.3.6(a) through (g) above. City shall promptly provide, upon the reasonable request by SDG&E, any documentation, records or information in connection with the Program or its Authorized Work. 9.4. Shifting Funds Across Budget Categories. SDG&E may shift Program funds among budget categories (e.g. Administrative and Direct Implementation) as set forth in the Concept Paper to the maximum extent permitted under, and in accordance with, Commission decisions and rulings therefor to which this Program relates. 9.5. Reasonableness of Exuenditures. Each Party shall bear the burden of ensuring that its Program Expenditures are objectively reasonable. The Commission has the authority to review all Program Expenditures for reasonableness. Should the Commission, at any time, issue a finding of unreasonableness as to any Program Expenditure, and require a refund or return of the PGC or Gas Surcharge funds paid in the reimbursement of such Program Expenditure, the Party who incurred such Program Expenditure and received reimbursement under this Agreement shall be solely and severally liable for such refund or return. 12 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-50 9.6. Refund of PGC or Gas Surcharge Funds. With respect to any amount subject to refund to the Commission pursuant to any subsequent Commission decision or ruling, should the Commission determine that a refund is due and seeks to recover such refund, the amount due shall be returned as directed by the Commission, within 30 days of receipt of written notice that payment is owed, as follows: (1) if the refund is attributable to an overpayment of Program funds to a Party, then that Party shall be solely liable for such refund; (2) if the refund is attributable to an unreasonable expenditure, then the Party who (i) incurred such Program Expenditure and received reimbursement therefor under this Agreement, or (ii) was otherwise entitled to receive reimbursement under this Agreement but did not actually receive reimbursement due to receipt of an equivalent offset, shall be solely liable for such refund; (3) for any other refund, each Party shall be solely liable for its pro-rata share, determined by calculating the percentage of the total overall Program Expenditures represented by each Party's reimbursements of Program Expenditures (both actual reimbursements and those to which the Party was otherwise entitled but did not receive due to receipt of an equivalent offset). Nothing in this provision is intended to limit a Party's right to pursue aclministrative or other remedies available with respect to a Commission decision or ruling. A Party's approval of any action which is. the responsibility of another Party under this Agreement shall not shift the corresponding responsibility with respect to any overpayment or unreasonable Program Expenditure. Notwithstanding the foregoing, any overpayment of Program funds to a Party (the "Receiving Party") shall be immediately due and payable by the Receiving Party, upon demand therefor, to the Party who made the overpayment, and the Party who made the overpayment shall have the right to set the overpayment off from any other Program funds payable to the Receiving Party, if possible, or otherwise pursue any available remedies for the recovery of the overpayment. 10. END DATE FOR PROGRAM AND ADMINISTRATIVE ACTIVITIES. Unless this Agreement is terminated pursuant to Section 24 below, and subject to the Objectives, the Parties shall complete all Program Administrative activities (as defined by the Concept Paper) and reporting requirements by no later than March 31, 2009, and all Direct Implementation activities (as defined by the Concept Paper) by no later than December 31, 2008, in each case unless otherwise agreed to by the Parties or so ordered by the Commission. 11. FINAL INVOICES All Parties must submit final invoices no later than March 31, 2009. 12. INDEMNITY 12.1. Indemnitv bv City. City shall indemnify, defend and hold harmless SDG&E, and its successors, assigns, affiliates, subsidiaries, current and future parent companies, officers, directors, agents, and employees, from and against any and all expenses, claims, losses, damages, liabilities or actions in respect thereof (including reasonable attorneys' 13 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-51 fees) to the extent arising from (a) City's negligence or willful misconduct in City's activities under the Program or performance of its obligations hereunder, or (b) City's breach of this Agreement or of any representation or warranty of City contained in this Agreement. 122. Indemnity bv SDG&E. SDG&E shall indemnify, defend and hold harmless City and its successors, assigns, affiliates, subsidiaries, current and future parent companies, officers, directors, agents, and employees, from and against any and all expenses, claims, losses, damages, liabilities or actions in respect thereof (including reasonable attorneys' fees) to the extent arising from (a) SDG&E's negligence or willful misconduct in SDG&E's activities under the Program or performance of its obligations hereunder or (b) SDG&E's breach of this Agreement or any representation or warranty of SDG&E contained in this Agreement. 12.3. LIMITATION OF LIABILITY. NO PARTY SHALL BE LIABLE TO ANY OTHER PARTY FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHATSOEVER WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR STRICT LIABILITY INCLUDING, BUT NOT LIMITED TO, LOSS OF USE OF OR UNDER-UTILIZATION OF LABOR OR FACILITIES, LOSS OF REVENUE OR ANTICIPATED PROmS, COST OF REPLACEMENT POWER OR CLAIMS FROM CUSTOMERS, RESULTING FROM A PARTY'S PERFORMANCE OR NONPERFORMANCE OF THE OBLIGATIONS HEREUNDER., OR IN THE EVENT OF SUSPENSION OF THE AUTHORIZED WORK OR TERMINATION OF THIS AGREEMENT. 13. OWNERSlilP OF DEVELOPMENTS The Parties acknowledge and agree that SDG&E, on bebalf of its ratepayers, shall own all data, reports, information, manuals, computer programs, works of authorship, designs or improvements of equipment, tools or processes (collectively "Developments") or other written, recorded, photographic or visual materials, or other deliverables produced in the performance of this Agreement; provided, however, that Developments do not include equipment or infrastructure purchased for research, development, education or demonstration related to energy efficiency. Although City shall retain no ownership, interest or title in the Developments except as may otherwise be provided in the Concept Paper, it will have a permanent, royalty free, non- exclusive license to use such Developments for the City's internal use and at the City's sole but reasonable discretion for the residents and businesses within the City's current and future municipal boundaries. 14. DISPUTE RESOLUTION 14.1. Disoute Resolution. Except as may otherwise be set forth expressly herein, all disputes arising under this Agreement shall be resolved as set forth in this Section 14. 14 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERV ATWN OUTREACH PROGRAM AGREEMENT 11-52 14.2. Negotiation and Mediation. The Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiations between the Parties' authorized representatives. The disputing Party shall give the other Parties written notice of any dispute. Within twenty (20) days after delivery of such notice, the authorized representatives shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary to exchange information and to attempt to resolve the dispute. If the matter has not been resolved within thirty (30) days of the first meeting, any Party may initiate a mediation of the dispute. The mediation shall be facilitated by a mediator that is acceptable to all Parties and shall conclude within sixty (60) days of its commencement, unless the Parties agree to extend the mediation process beyond such deadline. Upon agreeing on a mediator, the Parties shall enter into a written agreement for the mediation services with each Party paying a pro rate share of the mediator's fee, if any. The mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association; provided, however, that no consequential damages shall be awarded in any such proceeding and each Party shall bear its own legal fees and expenses. 14.3. Confidentiality. All negotiations and any mediation conducted pursuant to Section 14.2 shall be confidential and shall be treated as compromise and settlement negotiations, to which Section 1152 of the California Evidence Code shall apply, which Section is incorporated in this Agreement by reference. 14.4. Iniunctive Relief. Notwithstanding the foregoing provisions, a Party may seek a preliminary injunction or other provisional judicial remedy if in its judgment such action is necessary to avoid irreparable damage or to preserve the status quo. 14.5. Continuing Obligation. Each Party shall continue to perform its obligations under this Agreement pending fmal resolution of any dispute arising out of or relating to this Agreement. 14.6. Failure of Mediation. If, after good faith efforts to mediate a dispute under the terms of this Agreement as provided in Section 14.2 above, the Parties cannot agree to a resolution of the dispute, any Party may pursue whatever legal remedies may be available to it at law or in equity, before a court of competent jurisdiction and with venue as provided in Section 34. 15. REPRESENTATIONS AND WARRANTIES City represents, warrants and covenants, as of the Effective Date and thereafter during the Term of this Agreement that: 15.1. The Authorized Work performed by City and its Contractors shall comply with the applicable requirements of all statutes, acts, ordinances, regulations, codes, and standards of federal, state, local and foreign governments, and all agencies thereof. 15 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11,..53 15.2. The Authorized Work performed by City and its Contractors shall be free of any claim of trade secret, trade mark, trade name, copyright, or patent infringement or other violations of any proprietary rights of any person. 15.3. City shall conform to the applicable employment practices requirements of (Presidential) Executive Order 11246 of September 24, 1965, as amended, and applicable regulations promulgated thereunder. 15.4. City shall contractually require each Contractor it hires to perform the Authorized Work to indemnify SDG&E to the same extent City has indemnified SDG&E under the terms and conditions of this Agreement. 15.5. City shall retain, and shall cause its Contractors to retain, all records and documents pertaining to its Authorized Work obligations for a period of not less than five (5) years beyond the termination or expiration of this Agreement. 15.6. City shall contractually require all of its Contractors to provide SDG&E reasonable access to relevant records and staff of Contractors concerning the Authorized Work. 15.7. City will take all reasonable measures, and shall require its Contractors to take all reasonable measures, to ensure that the Program funds in its possession are used solely for Authorized Work, which measures shall include the highest degree of care that City uses to control its own funds, but in no event less than a reasonable degree of care. 15.8. City will maintain, and shall require its Contractors to maintain, insurance coverage or self insurance coverage in reasonable and customary coverage and amounts at all times during the Term of this Agreement. a. 16. PROOF OF INSURANCE 16.1. Evidence of Coverae:e. Upon request at any time during the Term of this Agreement, City shall provide evidence that its insurance policies (and the insurance policies of any Contractor, as provided in Section 15.8) are in full force and effect, and provide the coverage and limits of insurance that City has represented and warranted herein to maintain at all times during the Term of this Agreement. 16.2. Self-Insurance. If City is self-insured, City shall upon request forward documentation to SDG&E that demonstrates to SDG&E's satisfaction that City self- insures as a matter of normal business practice before commencing the Authorized Work. SDG&E will accept reasonable proof of self-insurance comparable to the above requirements. 16 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-54 17. CUSTOMER CONFIDENTIALITY REQUIREMENTS 17.1. Non-Disclosure. City, its employees, agents and Contractors shall not disclose any Confidential Customer Information (defined below) to any third party during the Term of this Agreement or after its completion, without City having obtained the prior written consent of SDG&E, except as provided by law, lawful court order or subpoena and provided City gives SDG&E advance written notice of such order or subpoena. 17.2. Confidential Customer Information. "Confidential Customer Information" includes, but is not limited to, a SDG&E customer's name, address, telephone number, account number and all billing and usage information, as well as any SDG&E customer's information that is marked confidential. If City is uncertain whether any information should be considered Confidential Customer Information, City shall contact SDG&E prior to disclosing the customer information. 17.3. Non-Disclosure Agreement. Prior to any approved disclosure of Confidential Customer Information, SDG&E may require City to enter into a nondisclosure agreement. 17.4. Commission Proceedinl!s. This Section 17 does not prohibit City from disclosing non-confidential information concerning the Authorized Work to the Commission in any Commission proceeding, or any Commission-sanctioned meeting or proceeding or other public forum. 17.5. Return of Confidential Information. Confidential Customer Information (including all copies, backups and abstracts thereof) provided to City by SDG&E, and any and all documents and materials containing such Confidential Customer Information or produced by City based on such Confidential Customer Information (including all copies, backups and abstracts thereof), during the performance of this Agreement shall be returned upon written request by SDG&E. 17.6. Remedies. The Parties acknowledge that Confidential Customer 1-uormation is valuable and unique, and that damages would be an inadequate remedy for breach of this Section 17 and the obligations of City are specifically enforceable. Accordingly, the Parties agree that in the event of a breach or threatened breach of this Section 17 by City, SDG&E shall be entitled to seek and obtain an injunction preventing such breach, without the necessity of proving damages or posting any bond. Any such relief shall be in addition to, and not in lieu of, money damages or any other available legal or equitable remedy. 17.7. Public Records Act. Notwithstanding the foregoing, SDG&E understands that all information provided to the City may be subject to public review pursuant to the California Public Records Act (California Government Code Section 6250 et seq.), which 17 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-55 provides that records in the custody of a public entity might be disclosed unless the information being sought falls into one or more of the exemptions to disclosure set out in Government Code Sections 6254 through 6255. As a result, City may be obligated to disclose any information provided to the City to any party that requests it to the extent permitted under the California Public Records Act. 18. TIME IS OF THE ESSENCE The Parties hereby acknowledge that time is of the essence in performing their obligations under the Agreement. Failure to comply with deadlines stated in this Agreement may result in termination of this Agreement, payments being withheld or other Program modifications as directed by the Co=ission. 19. CUSTOMER COMPLAINT RESOLUTION PROCESS City shall develop and implement a process for the management and resolution of customer complaints in an expedited manner including, but not limited to: (a) ensuring adequate levels of professional customer service staff; (b) direct access of customer complaints to supervisory and/or management personnel; (c) documenting each customer complaint upon receipt; and (d) elevating any complaint that is not resolved within five (5) days of receipt by City. 20. RESTRICTIONS ON MARKETING 20.1. Use of Commission's Name. No Party may use the name of the Commission on marketing materials for the Program without prior written approval from the Commission staff. In order to obtain this written approval, SDG&E must send a copy of the planned materials to the Commission requesting approval to use the Commission name and/or logo. Notwithstanding the foregoing, the Parties shall disclose their source of funding for the Program by stating prominently on marketing materials that the Program is "funded by California ratepayers under the auspices of the California Public Utilities Commission." 20.2. Use of SDG&E's Names. City must receive prior review and written approval from SDG&E for the use of SDG&E's name or logo on any marketing or other Program materials (which approval may be withheld at SDG&E's sole and absolute discretion). City shall allow twenty (20) days for SDG&E review and approval. 20.3. Use of City Name. SDG&E must receive prior written approval from City for use of City's name or logo on any marketing or other Program materials (which approval may be withheld at City's sole and absolute discretion). SDG&E shall allow twenty (20) days for such City review and approval. 21. RIGHT TO AUDIT 1& 21106-200B CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-56 City agrees that SDG&E and/or the Commission, or their respective designated representatives, shall have the right to review and to copy any records or supporting documentation pertaining to City's performance of this Agreement or the Authorized Work, during normal business hours, and to allow reasonable access in order to interview any employees of City who might reasonably have information related to such records. Further, City agrees to include a similar right of SDG&E and/or the Commission to audit records and interview staff in any subcontract related to performance of City's Authorized Work or this Agreement. 22. STOP WORK PROCEDURES SDG&E may suspend City's Authorized Work being for good cause, such as concerns related to funding, implementation or management of the Program, safety concerns, fraud, or excessive Customer complaints, by notifying City in writing to suspend its Authorized Work being performed in its service territory. City shall stop work immediately, and may resume its Authorized Work only upon receiving written notice from SDG&E that it may resume its Authorized Work. 23. MODIFICATIONS Changes to this Agreement shall only be made by mutual agreement of all Parties through a written amendment to this Agreement signed by all Parties. 24. TERM AND 1ERMINATION 24.1. Term. This Agreement shall be effective as of January 1, 2006. Subject to Section 36 below and Section 10 above, this Agreement shall continue in effect until March 31, 2009 ("Term") unless otherwise earlier terminated in accordance with the provisions of Section 24.2, 24.3 or 29 below or any other provisions of this Agreement. 24.2. Termination for Breach. Any Party may terminate this Agreement in the event of a material breach by the other Party of any of the material terms or conditions of this Agreement, provided such breach is not remedied within sixtf (60) days notice to the breaching Party thereof from the non-breaching Party or otherwise cured pursuant to the dispute resolution provisions set forth in Section 14 herein. 24.3. Termination for Convenience. SDG&E and the City of Chula Vista shall each have the right to terminate this Agreement, at their sole convenience and without first obtaining the other Party's prior consent., by providing at least thirty (30) days' prior written notice to the other Party setting forth the effective date of such termination. 24.4. Effect of Termination. 19 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-57 24.4.1. In the event of termination of this Agreement, the Parties shall be entitled to PGC and/or Gas Surcharge Funds for all Program Expenditures incurred or accrued pursuant to contractual or other legal obligations for Authorized Work up to the effective date oftennination of this Agreement, provided that any Periodic City Reports or other reports, invoices, documents or information required under this Agreement or by the Commission are submitted in accordance with the terms and conditions of this Agreement. The provisions of this Section 24.4.1 shall be a Party's sole compensation resulting from any termination of this Agreement. 24.4.2. In the event of termination of this Agreement, City and SDG&E shall stop any Authorized Work in progress and take action as directed by the other Party to bring the Authorized Work to an orderly conclusion, and the Parties shall work cooperatively to facilitate the termination of operations and any applicable contracts for Authorized Work. SDG&E shall, within 30 days, make payment to the City for any Program Expenditures incurred by City prior to the effective date of the termination, unless otherwise prohibited by law or CPUC action. 25. WRITTEN NOTICES Any written notice, demand or request required or authorized in connection with this Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally recognized overnight courier, or first class mail, postage prepaid, to the address specified below, or to another address specified in writing by a Party as follows: City: The City of Chula Vista Michael Meacham, Director Conservation & Environmental Services Department 276 Fourth Avenue Chula Vista, CA 91910 (619) 407-3545 telephone (619) 409-5884 facsimile mmeacham cLchula-vistaca.us SDG&E: San Diego Gas & Electric Company Risa Baron, Energy Programs Supervisor 8306 Century Park Ct San Diego, CA 92123-1530 (858) 654-1103 telephone (858) 654-1175 facsimile rbaron@semprautilities.com Notices shall be deemed received (a) if personally or hand-delivered, upon the date of delivery to the address of the person to receive such notice if delivered before 5:00 p.m., or otherwise on the Business Day following personal delivery; (b) if mailed, three (3) Business Days after the date the notice is postmarked; (c) if by facsimile, upon electronic confirmation of transmission, followed by telephone notification of transmission by the noticing Party; or (d) if by overnight courier, on the Business Day following delivery to the overnight courier within the time limits set by that courier for next-day delivery. 20 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-5.8 26. CONTRACTS Each Party shall, at all times, be responsible for its Authorized Work obligations, and acts and omissions of Contractors and persons directly or indirectly employed by such party for services in connection with the Authorized Work. 27. RELATIONSHIP OF THE PARTIES The Parties shall act in an independent capacity and not as officers or employees or agents of each other. This Agreement is not intended to and does not form any "partnership" within the meaning of the California Uniform Partnership Act of 1994 or otherwise. 28. NON-DlSCRIMlNATION CLAUSE No Party shall unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Each Party shall ensure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment, and shall comply with the provisions of the Fair Employment and Housing Act (Gove=ent Code Section 12990 (a)-(f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Govermnent Code Section 12990 (a)-(t), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Each Party represents and warrants that it shall include the substance of the nondiscrimination and compliance provisions of this clause in all subcontracts for its Authorized Work obligations. 29. COJvlMlSSION AUTHORITY TO MODIFY This Agreement shall at all times be subject to the discretion of the Commission, including, but not limited to, review and modifications, excusing a Party's performance hereunder, or termination as the Commission may direct from time to time in the reasonable exercise of its jurisdiction. In addition, in the event that any ruling, decision or other action by the Commission adversely impacts the Program, as determined at their respective sole discretion, SDG&E and the City shall each have the right to terminate this Agreement (subject, however, to the provisions of Sections 24.4 and 36) by providing at least ten (10) days' prior written notice to City setting forth the effective date of such termination. SDG&E shall, within 30 days, make payment to the City for any Program Expenditures incurred by City prior to the effective date of the termination, unless otherwise prohibited by law or CPUC action. 21 2006-2008 CITY OF CHULA VlSTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-59 30. NON-WANER None of the provisions of this Agreement sball be considered waived by any Party unless such waiver is specifically stated in writing. 31. ASSIGNMENT No Party shall assign this Agreement or any part or interest thereof, without the prior written consent of the other Party, and any assignment without such consent shall be void and of no effect. Notwithstanding the foregoing, if SDG&E is requested or required by the Commission to assign its rights and/or delegate its duties hereunder, in whole or in part, such assignment or delegation shall not require City's consent, and SDG&E shall be released from all obligations hereunder arising after the effective date of such assignment, both as principal and as surety. 32. FORCE MAJEURE Failure of a party to perform its obligations under this Agreement by reason of any of the following sball not constitute an event of default or breach of this Agreement: strikes, picket lines, boycott efforts, earthquakes, fires, floods, war (whether or not declared), revolution, riots, insurrections, acts of God, acts of government (including, without limitation, any agency or department of the United States of America), acts of terrorism, acts of the public enemy, scarcity or rationing of gasoline or other fuel or vital products, inability to obtain materials or labor, or other causes which are reasonably beyond the control of such Party. 33. SEVERABILITY In the event that any of the terms, covenants or conditions of this Agreement, or the application of any such term, covenant or condition, shall be held invalid as to any person or circumstance by any court, regulatory agency, or other regulatory body having jurisdiction, all other terms, covenants, or conditions of this Agreement and their application shall not be affected thereby, but shall remain in full force and effect, unless a court, regulatory agency, or other regulatory body holds that the provisions are not separable from all other provisions of this Agreement. 34. GOVERNING LAW; VENUE This Agreement shall be interpreted, governed, and construed under the laws of the State of California as if executed and to be performed wholly within the State of California. Any action brought to enforce or interpret this Agreement shall be filed in San Diego County, California. 35. SECTION HEADINGS Section headings appearing in this Agreement are for convenience only and shall not be construed as interpretations of text. 22 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-60 36. SURVN AL Notwithstanding completion or of this Agreement, the Parties shall continue to be bound by the provisions of this Agreement which by their nature or terms survive such completion or termination. Such provisions shall include, but are not limited to, Sections g, 9,12,13,14, 17, 21,34,36 and 37 of this Agreement. 37. ATTORNEYS' FEES Except as otherwise provided herein, in the event of any legal action or other proceeding between the Parties arising out of this Agreement or the transactions contemplated herein, each Party in such legal action or proceeding shall bear its own costs and expenses incurred therein, including reasonable attorneys' fees. 38. COOPERATION Each Party agrees to cooperate with the other Parties in whatever manner is reasonably required to facilitate the successful completion of this Agreement. 39. ENTIRE AGREEMENT This Agreement (including the Exhibits hereto) contains the entire agreement and understanding between the Parties and merges and supersedes all prior agreements, representations and discussions pertaining to the Authorized Work. 40. APPROVALS Unless otherwise set forth in herein, approvals required of a Party shall not be unreasonably withheld by such Party. 41. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument. (Signature page follows) 23 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-61 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives. CITY: THE CITY OF muLA VISTA J~ Jt~ - Attest: Susan Bigelow, City Clerk: f ~/(~lc. Ste 0 Padilla, Mayor SDG&E: SAN DJEG? GAS. S /" & LECTmC COMPANY ~~ Na1be: Anne Sheo Smith Title: Sr. Vice President. Customer Service 24 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-62 EXHIBIT A 2006-2008 CONCEPT PAPER 2006-2008 Energy Efficiency Concept Paper City of Chula Vista & San Diego Gas & Electric Initiative Conservation Outreach Program (ECO Program) 1. Proiected Pro..-ralll Bud"et 2006 2007 2008 !Administration Administrative Overheads $ 36,554 $ 36,554 $ 36 554 Administrative Other $ 255,876 $ 255 876 $ 255,876 Marketino & Outreach $ - $ - $ - Direct Imolementation Incentives $ - $ - $ - Activitv $ 438,645 $ 438 645 $ 438,645 Installation $ - $ . $ - Hardware & Materiais $ - $ - $ - Rebate Processino & Insoection $ - $ - $ - EM&V $ - $' - $ - Total $ 731,075 $ 731,075 $ 731,075 2. IIlImacts Savings identified in this paper are estimated based on the Energy Efficient Housing Project component. The kW, kWh and therm savings along with incentives and rebates for City ofChula Vista retrofit projects for City facilities are included in the SDG&E Energy Savings Bid Program (see City Energy Efficient Facilities Showcase Project below). There are no projected kW, kWh and therm direct savings for the ECO Exhibit and the Municipal Energy BMPs Education Projects. 3. Program Cost ElIectiveness Attached 4. Program Descriptors The Energy Efficiency and Conservation Outreach Program (ECO Program) is being offered by San Diego Gas & Electric Company, (SDG&E) and the City of Chula Vista (Chula Vista). The ECO Program aims to enable Chula Vista, residents, developers, and Southbay cities to implement energy efficiency and conservation measures by overcoming existing barriers. Southbay includes Chula Vista, Coronado, Imperial Beach, National City and unincorporated areas of the San Diego County. The ECO Program also aims to increase public aWlU"eness about energy efficiency and conservation through non-traditional education and outreach outlets and channels used by cities and the County. 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-63 5. Program Statement The ECO Program will enable target customers to implement energy efficiency and conservation measures by overcoming barriers that they face. The target customers and barriers for each customer include: . City of Chula Vista: The City does not have adequate resources to assign dedicated staff to pursue and implement energy efficiency projects on a consistent basis. . Residents: Residents do not have a clear understanding of what programs are available to them and which programs they qualify for. Residents also need face-to-face assistance to access and participate in energy efficiency programs. . Condominium Conversion Developers: Developers do not have the appropriate motivations to enhance the energy efficiency level of condominium conversion projects beyond Title 24 compliance. . Southbay Cities: Southbay Cities lack policies, procedures and plans to instinrtionalize energy efficiency and conservation measures into how they do business. 6. Program Rationale . City Energy Efficient Facilities Showcase Project: Chula Vista has over 100 City owned buildings and infrastructure that consume electricity and natural gas. The City has about 550 electricity and natural gas meters and uses approximately 18 million kW-brs of electricity and approximately 800,000 therms of natural gas annually. Due to addition of new City buildings and infrastructure, the City's energy use is projected to increase by at least 5% in 2006. The City's annual energy budget is approximately $3.4 million. The City's actual energy costs are also projected to increase due to new City load and rising energy rates. Although the City has aggressively pursued energy efficiency retrofits to reduce energy use, to reduce cost, to improve maintenance and to reduce its impact on the environment, there are still many opportunities to improve how the City uses energy. An opportunity to position City facilities to participate in SDG&E's demand response programs also exists. The ECO Program seeks to enable the City to manage its energy use more effectively and consistently by providing funding to the City for dedicated energy staff. . ECO Exhibit Project: Chula Vista has co-sponsored Hard-te-Reach lighting events with SDG&E for the past three years at various City venues. Year after year, an average of600 households (.01% of Cbula Vista's housing stock) participate in the one-day events to exchange their inefficient incandescent light bulbs for more efficient compact fluorescent lights. Approximately 15% of the participating households also sign up for SDG&E programs available to low income and senior citizens. The City believes that the success of the events can be attributed to effective execution of a marketing plan developed by SDG&E and City staff; face-te-face assistance from SDG&E and City staff and customer convenience. The mobile ECO Exlnbits aims to provide face-to-face assistance and convenience on a more predictable basis by placing the staffed ECO Exhibits in high !taffic community locations. The City's believes that it can reach more than the .01 % of the households in the City by providing a predictable location where residents can go to for assistance on energy issues. . Energy Efficient Housing Project: There are currently about 800 apartment units at various stages of the condominium conversion process by the City's Planning and Building Department. The Chula Vista Planning and Building department estimates that at least 500 units per year will undergo. conversions from apartments to condominiums from 2006 to 2008 in. There is an untapped potential for energy efficiency since condominium conversion developers are not often required to meet the most current Title 24 requirements. Under this project, condominium conversion projects with three or more units will be eligible for expedited plan review and permitting if they commit to incorporating energy efficiency measures to exceed Title 24 requirements by at least 10% or if they incorporate measures to reduce the average energy use for each unit by 515 kW-br and 15 therms per month. Note: SDG&E, along with the City of Cbula Vista, City of San Diego, and the County of San Diego will continue to review various options for implementing Title 24 guidelines. Where necessary, standard thresholds may be applied Although it is preferred that program participants not receive utility incentives payments, in exchange for expedited approval of their requested building permits or land use, ability to participate in 26 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-64 both the expedite and incentive programs may be considered. Both strategies will be reviewed during the initial phases of the program. . MlIDicipal Energy BMPs Education Project: Stafffrom Southbay cities have continually expressed their desire to participate in energy efficiency programs available from SDRBO and SDG&E. Unfortunately, due to competing priorities, staff from South bay cities have not dedicated time or resources to pursuing potential energy retrofit projects. Staff believes that the major barrier to participating in energy efficiency programs is their City's lack of policies related to energy management The goal of the Municipal Energy BMPs Education project workshop series is to assist cities develop energy action plans for Council adoption to manage energy more effectively. The City of Chula Vista's C02 Reduction Plan will be used as a model for the workshops. By the end of the fourth workshop, participating cities will have an Energy Action Plan to reduce their energy use. 7. Program Outcomes The program is a savings, education and outreach program, which will deliver net energy savings, peak demand savings and sustained efficiency at City facilities, for residents, multi-family housing units and at other Cities. The desired outcomes of the ECO Partoership are to: o Enable the City to pursue energy efficiency projects and implement demand response at City owned facilities, o Enable residents to take action by educating residents about energy efficient technology and energy conservation best management practices, o Enable and motivate developers to invest in energy efficiency upgrades for multi-dwelling units by expediting the City's plan review and permitting process, o Enable Southbay cities to institutionalize energy efficiency and conservation into their practices by providing a step-by-step approach to developing and implementing locally adopted policies. 8. Program Strategy The City will assign an Energy Administrator to oversee general management of the ECO Program. The Energy Administrator will be responsible for coordinating with SDG&E, SDRBO and other third party provider staff to ensure ECO Program projects work plans are developed and implemented to meet established goals and objectives. The Energy Administrator will also coordinate efforts with internal and external partoers to develop effective outreach and marketing material to ensure program clarity. The program strategies that will be used are: . Residential New Construction . Residential Target Marketing 8.1.1 Program Strategy Description Residential New Construction: The program strategy for this part of the program is to expedite plan review and permitting to incent builders to include more energy efficient measures into condos converted from apartments. The City will reach condominium conversions developers by modifying plan review and permit applications to inform developers about the expedite process. Residential Target Marketing There are several parts to this strategy. The first is to provide face-te-face energy efficiency and conservation outreach to low income, elderly and other hard-te-reach customers. This will be done thorough mobile energy efficiency and conservation outreach exhibits (ECO Ex1u'bits) staffed by trained personnel. The mobile ECO 27 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-65 Exhibits will be located at City facilities and at regional centers such as shopping centers and malls throughout the Southbay. The second is to share lessons learned and best management practices (BMPs) with Southbay cities through a series of four workshops. The last element is to provide the City with funding to hire dedicated energy staff. Energy staff funded by the partnership will develop retrofit projects for both new and existing City buildings and facilities, working with SDG&E's Saving's by Design and Sustainable Communities Program to design and build City facilities that are at least 20% more energy efficient than state standards. 8.1.2 Program Indicators Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further incorporate measures that go beyond Title 24 requirements by at least 10% or by reducing energy use for each unit Increase public awareness by assisting an average of 160 people per day (average of 40 people per day at each ECO Exhibit) access and participate in energy efficiency and conservation programs. Sponsor and coordinate at least four energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initially assist South Bay cities develop energy action plans to manage energy. Major program objectives for the ECO Program projects are as follows: City Energy Efficient Facilities Showcase Project: Reduce the City's energy use by 5% per year for a cumulative reduction of 15% by 2008 relative to 2005 energy use. Eeo Exhibit Project: Increase public awareness by assisting an average of 160 people per day (average of 40 people per day at each ECO Exhibit) access and participate in energy efficiency and conservation programs. Energy Efficient Housing Project: Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further incorporate measures that go beyond Title 24 requirements by at least 10"10 or by reducing energy use for each unit by an average of 515 k W -br and IS therms per month. Participating developers will receive expedited plan review and permitting. At least 500 condominiums per year will be targeted for upgrades for a total of 1,500 energy efficient condominiums by 2008. Municipal Energy BMPs Education Projcet: Sponsor and coordinate at least four energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initially assist South Bay cities develop energy action plans to manage energy. By the four"Jl workshop, participating cities will have an Energy Action Plan to reduce their energy use. Workshops will be targeted to east county cities in year 2 and north county cities in year 3. 9. Program Objectives Major program objectives for the ECO Program projects are as follows: City Energy Efficient Facilities Showcase Project: Reduce the City's energy use by 5% per year for a cumulative reduction of 15% by 2008 relative to 2005 energy use. Eeo Exhibit Project: Increase public awareness by assisting an average of 160 people per day (average of 40 people per day at each ECO Exhibit) access and participate in energy efficiency and conservation programs. Energy Efficient Housing Project: Encourage condominium conversion developers to upgrade the energy efficiency of converted units by committing to complying with applicable Title 24 requirements and by further 28 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-66 incorporate measures that go beyond Title 24 requirements by at least 10% or by reducing energy use for each unit by an average of 515 k W.hr and 15 therms per month. Participating developers will receive expedited plan review and permitting. At least 500 condominiums per year will be targeted for upgrades for a total of 1,500 energy efficient condominiums by 200&. Municipal Energy BMPs Education Project: Sponsor and coordinate at least four energy efficiency and conservation workshops for cities every year. The goal of the workshop series is to initially assist South Bay cities develop energy action plans to manage energy. By the fourth workshop, participating cities will have an Energy Action Plan to reduce their energy use. Workshops will be targeted to east county cities in year 2 and north county cities in year 3. 10. Program Implementation The ECO Program consists of four projects to overcome barriers to implementing and participating in energy efficiency and conservation programs. Each project aims to achieve energy efficiency and conservation through a combination of energy efficiency retrofit projects at City facilities, public education and outreach at high traffic community destinations, expedited plan review and permitting services for condominium conversion projects and best management practices workshops for County cities. The projects and implementation plans are described below: a) City Energy Effident Facilities Showcase Project The goal of this element is to facilitate installation of energy efficiency measures and development of efficiency and conservation outreach best management practices (BMPs) for City facilities and employees by providing the City with funding to hire dedicated energy staff. Energy staff funded by the partnership will develop retrofit projects for City buildings and facilities. For existing facilities, energy staff will work with the San Diego Regional Energy Office's (SDRBO) to participate in SDG&E's Energy Savings Bid Program. SDREO will assist the City to assess opportunities through audits and identify incentives, development of an implementation plan, access project incentives, develop a funding mechanism and coordinate project execution to achieve energy savings. For new facilities, energy staff will work with SDG&E's Saving's by Design and Sustainable Communities Program to design and build City facilities that are at least 20% more energy efficient than state standards. Energy staffwill also work to develop, implement and train City personnel about energy BMPs to improve energy conservation practices by employees. The City's goal is to reduce baseline energy use at City facilities by at least 5% per year over the three-year period. The City's energy goals are captured in SDG&E's Energy Savings Bid Program. 29 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-67 b) ECO Exhibit Project The goal of this element is to provide face-to-face energy efficiency and conservation outreach to low income, elderly and other hard-to-reach customers. This project will reach the target audience through mobile energy efficiency and conservation outreach exhibits (ECO Exhibits) staffed by trained personnel. The mobile ECO Exhibits will be located at City facilities and at regicnal centers such as shopping centsrs and malls throughout the Southbay and potentially countywide. Specifically, the mobile ECO Exhibits locations will include but are not limited to a local City hall, at libraries, recreational centers, police stations, local shopping centers and regional shopping malls. The ECO Exhibits will be used to engage the target audience to learn about energy efficiency and energy conservation. Trained personnel will demonstrate energy efficient technology available in the marketplace to residents, educate residents about low or no.cost energy conservation practices, assist residents access programs offered by energy conservation program providers such as SDG&E and SDREO, allow residents to conduct home energy audits via the internet and direct residents to EnergyStar product retailers. The ECO Exhibits will also coordinate with SDG&E's Hard.to-Reach Lighting Turn.in Program to market and provide a venue for hard to reach customers to exchange inefficient lights for more efficient lights. Lastly, the ECO Exhibits will serve as an outlet to recruit participants for SDREO's Shade Tree Program. c) Energy Efficient Housing Project: The goal of this element is to improve the energy efficiency of existing multi.family housing units that are proposed for conversion from apartments to condominiums by providing expedited plan review and permitting services. The City will reach condominium conversions developers by modifying plan review and permit applications to inform developers about the expedite process. Ii) Municipal Energy BMPs Education Project The goal of this element is to share lessons learned and BMPs with Southbay cities through a series of four workshops. In November 2000, the City adopted a C02 Reduction Plan to reduce the City's greenhouse gas emissions. The C02 Plan's goala are to reduce the City's reliance on fossil fuel and to improve the energy efficiency of City buildings and facilities. Since 1990, the City has retrofitted and constructed buildings and facilities that are more energy efficient than the State's conservation standards (Title 24). The City will use existing forums and outlets to reach Southbay cities. The City will use the C02 Plan as a model to encourage and assist other cities develop their own strategic plan to achieve energy efficiency at their facilities and to incorporate low or no cost energy conservation BMPs into how they do business. The project's goal is to enable Southbay cities to develop and adopt strategic policies to improve their energy efficiency and reduce their environmental impact. 11. Customer Description City facilities and staff, residents, condominium conversion developers, Southbay cities in San Diego County are eligIble to participate in ECO Partoership programs. 12. Customer Interlace . City Energy Efficient Facilities Showcase Project: The Energy Administrator will coordinate internally with city staff to develop and implement retrofit projects for City 30 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-68 facilities. As described in the SDG&E's Energy Savings Bid Program, public agencies including the City of Chula Vista will receive the following energy efficiency project related services from the San Diego Regional Energy Office (SDRED) at no cost: o Energy audits o Technical assistance, and o Incentive documentation/processing . EeO Exhibit Project: The Energy Administrator will coordinate with SDREO, SDG&E, cities and the County to develop and place the mobile ECO Exhibits in bigh traffic locations. The ECO Exhibits staff will serve to engage customers to participate in energy efficiency and conservation programs. ECO Exhibits customers will have an opportunity to learn about energy efficient technology, receive information about low-or- no cost energy conservation best management practices and receive direct assistance to access offerings from other program providers. . Energy Efficient Housing Project: The Energy Administrator will coordinate with SDG&E and the City's Planning and Building staff to streamline the City's plan review and permitting process application for condominium conversions projects. The Energy Administrator will also act as a liaison between the City's Planning and Building staff and developers to resolve any potential issues. . Municipal Energy BMPs Education Project: The Energy Administrator will work with SDREO and SDG&E to develop a series of foux workshops per year to assists cities develop individual strategic plans to manage their energy use and budget more effectively. The Energy Ailmini>:t;rator will base the workshops on the City of Chula Vista's C02 Reduction Plan. The C02 Plan guides the City's effort to reduce reliance on fossil fuel, improve energy efficiency for buildings and vebicles and to reduce the City's overall impact on the environment. The workshops will be marketed to cities through existing working group technical committees such as San Diego County's pollution Prevention Committee and SANDAG's Energy Working Group. 13. Energy Measures snd Program Activities 13.1. Prescriptive Measures See SDG&E February 1, 2006 Filiog Workbook. 13.2. kWh LevelData- See SDG&E Februa.")' I, 2006 Filing Workbook.- Savings are included in the Energy Savings Bid Program 13.3. Non-Energy Activities- Audits, Education and Technical Assistance may be utilized 14. Subcontractor Activities None 15. Quality Assurance and Evaiustion Activities Quality assurance for city facilities projects will consist of on-site inspections by SDRBO through SDG&E's Energy Savings Bid Program. Quality assurance for condominium conversion projects will consist of on-site inspections by SDG&E's utility inspection department. An evaluation plan will be developed in accordance with the soon to be developed EM&V Protocols. Tbe CPUC Energy Division will be holding meetings, workshops and possibly 31 2006-2008 CITY OF CHULA VlSTAENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-69 hearings throughout the summer to develop these Protocols. SDG&E looks forward to participating and commenting on those activities and plans to file EM& V plans for all programs on October I, 2005 in conjunction with the ED, CEC, and the other IOUs 16. Marketing Activities The City will work with, SDREO, SDG&E, City of San Diego and the County of San Diego to develop and distribute marketing material to promote the ECO Partnership Programs to target customers through new and existing distribution channels. These channels will include but are limited to the four mobile ECO Exhibits, governing board meetings, public access cable stations, partner websites, partner publications (Chula Vista Spotlight), employee newsletters and local community newspapers., 17. CPUC Objective The Energy ECO Partnership betweeu SDG&E and the City of Chula Vista is a community wide effort that will enable the City, residents, developers and Southbay cities to implement sustainable energy efficiency and conservation measures. The program supports the CPUC objectives of minimizing lost opportunities and increasing the pursuit and implementation of cost-effective energy efficiency. 32 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERV ATWN OUTREACH PROGRAM AGREEMENT 11-70 EXHIBIT B EM&VPLAN [TO BE ATTACHED WHEN ISSUED BY THE COMl\fiSSION] 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-71 EXHIBIT C REPORTING REQUIREMENTS 1. Reporting 1.1 City shall provide SDG&E with the requisite information, in accordance with Section 9.4 of the Agreement, on the prior month's activities, accomplishments and expenditures related to its respective Authorized Work obligations, for purposes of preparing the Monthly, Quarterly and Annual Reports. 1.2 SDG&E shall provide City in accordance with the provisions of Section 25 of the Agreement, or otherwise make available to City on SDG&E's website, a copy of the filed Monthly Report within five (5) Business Days after filing. 2. Monthly Report 2.1 Program Data - A spreadsheet table or tables listing which includes the following infonnatlon: Program Costs (cast reported cumulative-ta-date (also referred to as inception-to-date)) a. Program identification number as provided by the Program Administrator b. Program name c. Total cumulative program authorized budget as adopted by the Commission d. Total cumulative program operating budget which includes any mid-course budget modifications (e.g., fund shifts) e. Total cumulative program expenditures f. Total program expenditures far the report month g. Total cumulative commitments (limited to incentive commitments) Program Impacts (cast reported cumulative-ta-date (also referred to as inception-to-date)) a. Total cumulative net kW, kWh, and Therm savings projections b. Total cumulative achieved net kW, kWh and Therm savings c. Total achieved net kW, kWh and Therm savings for the report month d. Total committed (limited to incentive commitments) net kW, kWh and Therm savings 2.2 Program ChangeslNew Program Information If applicable, the foilawmg information should be reported in the Monthly report: a. Identification of program with operating budgets reduced during the report month b. Identification of program with operarillg budgets increased during the report mouth c. Identification of program terminated during the report month 3. Quarterly Report 3.1 Portfolio Benefit/Cost Metrics (ClmIlwative to Date) a. Total cost to billpayers ('IRC, administrative cost and incremental cost per the Standard Practice Manual) b. Total savings to billpayers ('IRe) c. Net benefits to billpayers ('IRC) d. TRC Ratio e. PACRatio t: Cost per kWh saved (centsIkWh) (PAC) g. Cost per therm savings ($/therm) (PAC) 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-72 3.2 Measure List -A spreadsheet table for each program or program elementl containing each measure installed, service rendered, or measure/service committed during the report month for which the Program Implementer intends to claim savings. The Program Implementer should include any new measures as part of the quarterly report. The list should display each measure as it is tracked and recorded by the implementer and should include the following parameters at a minimum: a. Name of Measure or Service Rendered b. Measure or Service Description c. DEER Measure ID (where applicable) d. DEER Run ID (where applicable) e. Unit Definition f. Unit gross kWh savings g. Unit gross Thorms savings h. Unit gross kW demand reduction i. Incremental Measure Cost j. Net to Gross Ratio k. Effective Useful Life l. Detailed end use classification (using classification scheme in section 6) m. Quantity Installed during report period n. Quantity Committed during report period o. Rebate amount paid p. Market Sector classification (using classification scheme in section 6) q. Market Segment classification (using classification scheme in section 6) 3.3 Expenditures for the program per cost reporting format below (Appendix to Attachment contains list of allowable costs) : a. Commission Authorized Budget b. Operating Budget c. Total Expenditures i. Administrative Cost ii. Marketing/Advertising/Outreach Costs iii. Direct Implementation 3.4 GBI Report - Progress towards achieving goals of the Green Building Initiative, if applicable (Cumulative results) a. Estimate of expenditures on program activities that contribute towards GBl goals (including both public and non-public commercial participants) b. Net cumulative achieved kW, kWh and Therm savings contnlmting towards GBI goals. c. Net achieved kW, kWh and Therm savings contributing towards GBI goals for the quarter. d. A description of non-resource program activities that support the Green Building Initiative, including marketing and outreach activities. e. Estimate of square footage affected by program activities supporting the Green Building Initiative f. Items b, c and e above disaggregated by: 1. 2-digit NAlCS code li. Aggregated end use classification (using classification scheme in section 5) 3.5 Program Narratives - For the program, a description of the program activities occurring during the quarter. a. Administrative activities b. Marketing activities 1 Identification of distinct programs and program elements may be determined by CPUC staff at a later time. 35 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERV ATXON OUTREACH PROGRAM AGREEMENT 11-73 c. Direct Implementation activities d. City's assessment of program perfonnance and program status (is the program on target, exceeding expectations, or falling short of expectations, etc.) e. For non-resource programs and program elements (programs or program elements that are not claiming direct energy impacts), a discussion of the stams of program achievements. f. Discussion of changes in program emphasis (new program elements, less or more emphasis on a particular delivery strategy, program elements discontinued, measure discontinued, etc.) g. Discussion of near tenn plans for program over the coming months (e.g., marlceting and outreach efforts that are expected to significantly increase program participation, etc.) h. Changes to staffing and staff responsibilities, if any i. Changes to contacts, if any j. Changes to subcontractors and subcontractor responsibilities, if any k. Number of customer complaints received 1. Program Theory and Logic Model ifnot already provided in the program's implementation plan, or if revisions have been made. 3.6 Utility Quarterly Reports - SDG&E shal1 provide City a copy of the tiled Quarterly Report within two (2) Business Days after filing with the Commission in accordance with the provisions of the Agreement 4. Annual Reports The fonnat and content of the annual report is expected to be developed by the CPUC in fall 2006. The Program Implementer will be required to fulfill these reporting obligations for their program. 5. Reporting Terminology DefinitlQl's Adopted Program Budget - The program budget as it is adopted by the Commission. Inclusive of costs (+1-) recovered from other sources. Operating Program Budget - The program budget as it is defined by the program administrators for internal program budgeting and management purposes. Inclusive of costs (+1-) recovered from other sources. Direct Implementation Expenolitures - Costs associated with activities that are a direct interface with the customer or program participant or recipient (e.g., contractor receiving training). (Note: This is still an open issue, the items included in this definition may be changed by the CPUC pending discussion on the application of the State's Standard Practice Manual.) Report Month - The month for which a pa.Tticu1ar monthly report is providing data and information. For example, the report month for a report covering the month of July 2006, but prepared and delivered later than July 2006, would be July 2006. Prov"m Strategy - The method deployed by II program in order to obtain program participation. Program Element - A subsection of a program, or body of program activities within which a single program strategy is employed. (Example: A body of program activities employing both an upstream rebate approach and a direct insta1lapproach is not II single program element) 6. Mea.ure CIa..i1lcation M....ure End-Use Cla.sification Each energy efficiency measure reported should be classified into one of the following end-use categories 36 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-74 Residential End Uses Detailed End Use Clothes Dryer Clothes Washer Consumer Electronics Cooking Dishwasher Other Appliance Building Shell Space Cooling Space Heating Interior Lighing Exterior Lighting Pool Pump Freezers Refrigeration Water Heating Other (U.er Entered Text SlJiog De.cription) Nonresidential End Uses Detailed End Use Building Shell Space Cooling Space Heating Ventilation Daylighting Interior Lighting Exterior Lighting Office Equipment Compressed Air Cooking Food Processing Motors Process Cooling Process Heat Process Steam Pumps Refrigeration Other (Us.r Entered T.xt String Description) Aggregated End Use Appliances Appliances Consumer Electronics Cooking Appliances Appliances Appliances HVAC HVAC HVAC Lighting Lighting Pool Pump Refrigeration Refrigeration Water Heating Other Aggregated End Use HVAC HVAC HVAC HVAC Lighting Lighting Lighting Office Process Process Process Process Process Process Process Process Refrigeration Other M....ure Market SectorlM..rket Segment C1..ssification Where reports require market sector or market segment classification, the following classification scheme should be used. Market Sector Residential Sing Ie Family Multi Family Mobile Homes Marllet Segment NA NA NA NA 37 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-75 Nonresidential Commercial Industrial Agricultural Unknown NAICS CODE (greater than 2 digit not required) NAlCS CODE (greater than 2 digit not required) NAICS CODE (greater than 2 digit not required) NAICS CODE (greater than 2 digit not required) NA 7. Allowable Costs Allowable Costs Table The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported should be only for costs actually expended. Any financial commitments are to be categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program administrator. If there is a desire to include additional AlIoWllble Cost elements, the program administrator should be contacted in order for the administrator to seek annroval from the CPUC. 313012006 Cost Cate!!ories Allowable Costs Administrative Cost Category Managerial and Clerical Labor IOU Labor. Clerical IOU Labor - Proaram Design IOU Labor - PrOOram Development IOU Labor - Pro<lram Plannina IOU Labor - ProaramlProiect Manaoement IOU Labor - Staff Manaaement IOU Labor - Staff Supervision Subcontractor Labor. Clerical Subcontractor Labpr - Proaram Desion Subcontractor Labor - Program Development Subcontractor Labor - Proaram Plannina Subcontractor Labor. prooramlProiect Manaoement Subcontractor Labor - Staff Manaoement Subcontractor Labor - Staff Supervision Human Resource SUDDOn and Development IOU Labor - Human Resources IOU Labor - Staff Deveiooment and Trainina IOU Benefits - Administrative Labor IOU Benefits - Direct Implementation Labor IOU Benefits - Marketina/Advertisina/Outreach Labor IOU Pavroll Tax - Administrative Labor IOU Payroll Tax - Administrative Labor IOU Pavroll Tax - Administrative Labor IOU Pension - Administrative Labor IOU Pension - Direct Implementation Labor IOU Pension - MarketinQ/Advertisino/Outreach Labor Subcontractor Labor- Human Resources Subcontractor Labor - Staff Develooment and Trainino Subcontractor Benefits - Administrative Labor Subcontractor Benefits - Direct Imolementation Labor Subcontractor Benefits - Marketina/Advertisina/Outreach Labor Subcontractor pavroll Tax - Administrative Labor Subcontractor Pavroll Tax - Direct Implementation Labor 38 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-76 Allowable Costs Tab!e The cost items listed on lbe Allowable Costs sheet are the only costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported should be only for costs actually expended.. Any financial commitments are to be categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program administrator. If there is a desire to include additional Allowable Cost elements, the program administrator should be contacted in order for the administrator to seek anoroval from the CPUC. 3/3012006 Cost Cateaorles Allowable Costs Subcontractor Pavroll Tax - MarketinQ/Advertisina/Outreach Labor Subcontractor Pension - Administrative Labor Subcontractor Pension - Direct 1m ole mentation Labor Subcontractor Pension - MarketinalAdvertisina/Outreach Labor Travel and Conference Fees IOU Conference Fees IOU Labor. Conference Attendance IOU Travel - Airfare IOU Travel - Lodoino IOU Travel - Meals IOU Travel- Mileaae IOU Travel. Parkina IOU Travel - Per Diem for Misc. Exoenses Subcontractor - Conference Fees Subcontractor Labor - Conference Attendance Subcontractor - Travel - Airfare Subcontractor - Travel - Lodaina Subcontractor - Travel - Meals Subcontractor - Travel - Mileaae Subcontractor - Travel - Parkina Subcontractor - Travel - Per Diem for Misc. Expenses OVerhead (General and Admlnlstratlvel - Labor and Materials IOU Equipment Communications IOU Eauipment COnlPutina IOU Eauipment Document Reoroduction IOU Eauioment General Office IOU Eauipment Transportation IOU Food Service IOU Office Suoclies IOU Postage IOU Labor - Accountina Sucoort IOU Labor - Accounts Payable IOU Labor - Accounts Receivable IOU Labor - Administrative IOU Labor - Facilities Maintenance IOU Labor. Materials Manaaement IOU Labor - Procurement IOU Labor. Shoo Services IOU Labor - Transoortation Services IOU Labor. Automated Systems IOU Labor - Communications IOU Labor - Infomnalion Technoloay IOU Labor - Telecommunications 39 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-77 Allowable Costs Table The cost items listed on the Allowable Costs sheet are the only costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported should be only for costs actua1ly expended. Any financial commitments are to be categorized as commitments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program administrator. lfthere is a desire to include additional Allowable Cost elements, the program administrator should be contacted in order for the administrator to seek aooroval from the CPUC. 3/30/2006 Cost Cateaories Allowable Costs Subcontractor Eauipment Communications Subcontractor Eouioment Comeutino Subcontractor Eauiement Document Reoroduction Subcontractor Eouioment General Office Subcontractor EOuioment Transoortation Subcontractor Food Service Subcontractor Office Supplies Subcontractor Postaae Subcontractor Labor - Accountino Supoort Subcontractor Labor - Accounts Pavable Subcontractor Labor - Accounts Receivable Subcontractor Labor - Facilities Maintenance Subcontractor Labor - Materials Manaaement Subcontractor Labor - Procurement Subcontractor Labor - Shop Services Subcontractor Labor - Administrative Subcontractor Labor - Transoortation Services Subcontractor Labor - Automated Svstems Subcontractor Labor - Communications Subcontractor Labor - Information Technoloav Subcontractor Labor - Telecommunications Marketlno/Advertisina/Outreach Cost CateaolV IOU - Advertisements I Media Promotions IOU - Bill Inserts IOU - Brochures IOU - Door Hanaers IOU - Print Advertisements IOU - Radio Soots IOU - Television Soots IOU - Website Develooment IOU Labor - Marketing IOU Labor - Media Production IOU Labor - Business Outreach IOU Labor - Customer Outreach IOU Labor - Customer Relations Subcontractor - BiJllnserts Subcontractor - Brochures Subcontractor - Door Hancers Subcontractor - Print Advertisements Subcontractor - Radio spots Subcontractor - Television Spots Subcontractor - Website Development Subcontractor Labor - Marketing 40 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-78 Allowable Costs Table The cost items listed on the Allowable Costs sbeet are the only costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported should be only for costs actually expended. Any financial commi1ments are to be categorized as commi1ments. If the reporting entity does not have a cost as listed on the cost reporting sheet, then no cost is to be reported for that item. These Allowable Cost elements are to be used whenever costs are invoiced or reported to the program administrator. If there is a desire to include additional Allowable Cost elements, the program administrator should be contacted in order for the administrator to seek annroval from the CPUC. . 3/30/2006 Cost Cateoorles Allowable Costs Subcontractor Labor. Media Production Subcontractor Labor - Business Outreach Subcontractor Labor - Customer Outreach Subcontractor Labor - Customer Relations Direct Imolementatlon Cost Cllteoorv Financiallncentlves to Customers Actlvitv . Direct Labor IOU Labor - Curriculum Develooment IOU Labor - Customer Education and TraininQ IOU Labor - Customer Enuipment Testina and Diaonostics IOU Labor - Facilities Audits Subcontractor Labor - Facilities Audits Subcontractor Labor. Curriculum Develooment Subcontractor Labor - Customer Education and Trainino Subcontractor Labor - Customer Eouioment TestinQ and DiaQnostics Installation and Service. Labor IOU Labor - Customer Eouioment Rel'lair and ServicinQ IOU Labor - Measure Installation Subcontractor Labor - Customer EoulOment Reoair and ServicinQ Subcontractor Labor - Customer Eouioment Repair and ServicinQ Direct ImDlementatlon Hardware and Materials iOU Audit Aoolications and Forms IOU Direct Imolementation Literature IOU Education Materials IOU Energy Measurement Tools IOU Installation Hardware Subcontractor - Direct Implementation Literature Subcontractor - Education Materials Subcontractor - Enemv Measurement Tools Subcontractor - Installation Hardware Subcontractor -Audit APPlications and Forms Rebate Processina and Inspection - Labor BInd Materials IOU Labor - Field Verification IOU Labor - Site Insoections IOU Labor - Rebate Processino IOU Rebate Aoolications Subcontractor Labor - Field Verification Subcontractor Labor - Rebate Processino Subcontractor - Rebate Applications 41 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-79 EXHIBIT D MILESTONE SCHEDULE City shall achieve, during each Program year, the following targets by December 31 of such Program year: Municipal Energy BMP Education Project . Recruit & Hire intemslTemporary Expert Professionals . Identify Interested Local Government Peer Sectors . Contact & Survey Local Governments . Develop Potential Workshop-Outreach Activity Schedule-Peer Input . Conduct Targeted Workshop-Activities - that Foster Local Energy Plans . Conduct Remaining Workshops-Activities . Evaluate . Identify Targets for Future Productive Outreach Activities . Monitor Status, Record Quarterly Report and Evaluation Data ECO Exhibit Project . Recruit & Hire Interns/Temporary Expert Professionals . Create EXhibit Plan & Seek Approval from all Parties . Order Exhibit Displays and Graphics . Establish Distribution Strategy & Schedule . Distribute Exhibits and Implement Schedules- . Ongoing Support & Maintenance of Exhibits . Implement Resident Outreach Projects to Supplement Exhibits . Monitor Status, Record Quarterly Report and Evaluation Data Energy Efficient Housing SIWill Busmess and Mixed Use Project . Recruit & Hire intemsrremporary Expert Professioual . Establish Program Incentives . Apply Incentives to Existing City Programs . Coordinate, Communicate with Development Staff for Future Eligible Project . Implement Projects Adequate to Meet Kilowatt & Therm Reduction Objectives, . Monitor Status, Record Quarterly Report and Evaluation Data City Energy Efficient Facilities Showcase Project . Recruit & Hire Staff 42 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERV ATlON OUTREACH PROGRAM AGREEMENT 11-80 . IdentifY and Prioritize FacilitiesffechnologieslServices and Policies with Greatest Potential to Meet or Exceed Targeted Energy Reduction Goals . Develop Contract/Service Agreements . Implement Project Priorities . Monitor Status, Record Quarterly Report and Evaluation Data 43 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 11-81 Exhibit B NONDISCLOSURE AGREEMENT In Connection with that certain Agreement to Jointly Deliver the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program ("Partnership Agreement") between San Diego Gas & Electric Company ("SDG&E') and the City of Chula Vista ("Other Party") relating to the implementation of the Program described therein ("Transaction"), SDG&E anticipates disclosing to Other Party, and Other party may learn of, Confidential Information (as defmed below). Capitalized terms used herein but not defmed herein shall have their meanings set forth in the partnership Agreement. As a condition to such disclosure by SDG&E to each of the Other Party's directors, officers, employees, agents or advisors who have a direct need to access such Confidential Information for the purpose of carrying out the Transaction (collectively "Representatives"), the parties hereby agree as follows: 1. DEFINITION "Confidential Information" shall mean proprietary information concerning the business, operations and assets of SDG&E, its present and future direct or indirect subsidiaries or affiliates, whether or not prepared in connection with the Transaction, which may include, without limitation, Confidential Customer Information (as defined in the Partnership Agreement), any business plans, documentation, source code, object code, diagrams, flow charts, research, development, processes, marketing techniques and materials, development or marketing timetables, strategies, development plans, customer, supplier or employee names or information, pricing policies and financial and valuation information, and other Information of a similar nature whether or not reduced to writing or other tangible form, and any trade secrets, whether or not defined as "trade secrets" under the Uniform Trade Secrets Act of California, excluding Information (1) known to Other party or its Representative prior to obtaining the same from SDG&E; (2) in the public domain at the time of disclosure by Other party; (3) obtained by Other Party or its Representative from a third party who did not receive same, directly or indirectly, from SDG&E subject to an binding and enforceable nondisclosure agreement; or (4) approved for release by written authorization of an authorized officer of SDG&E. 2. LIMITED USE; NONDISCLOSURE Other Party hereby agrees that it shall use, and shall cause its Representatives to use, the Confidential Information solely for the purpose of carrying out the Transaction, and not in any way detrimental to SDG&E, and that only its Representatives shall have access to the Confidential Information. Other party shall not, and shall cause its Representatives not to, (i) use the Confidential Information for its or its Representatives' own benefit other than for the limited purposes set forth herein, or (Ii) make any copies, backups or abstracts of such Confidential Information, however stored, without first obtaining the prior written consent of SDG&E unless necessary for the implementation or completion of the Transaction. Other party agrees to use the same degree of care it uses with respect to its own proprietary or confidential information oi" a reasonable standard of care to prevent unauthorized use or disclosure of the Confidential Information. Except as otherwise provided herein, Other Party will keep confidential and not disclose, and shall cause its Representatives to keep confidential and not disclose, the Confidential Information to any third party. Other Party shall cause each of its Representatives to become familiar with, and abide by, the terms of this Agreement. 1 11-82 3. COURT OR ADiMINISTRATIVEORDER Notwithstanding the provisions of Article 2 above, Other Party and its Representatives may disclose any of the Confidentiallnfonnation in the event,.but only to the extent, that, based upon advice of counsel, it is required to do so by the disclosure requirements of any law, rule, or regulation or any order, decree, subpoena or ruling or other similar process of any court, governmental agency or governmental or regulatory authority. Prior to making or permitting any of its Representatives to make such disclosure, Other Party shall provide SDG&E with prompt written notice of any such requirement so that SDG&E (with Other Party's assistance) may seek a protective order or other appropriate remedy. 4. PUBLICITY Without the prior written consent of SDG&E, Other Party shall not, and shall cause its Representatives not to, disclose to any person (i) the fact that the Confidential Information has been made available to Other party or its Representatives, or (ii) any information regarding the ongoing discussions between the parties, including the fact that such discussions are occurring; , however, that Other Party and its Representatives may disclose the information described in clauses (i) and (ll) above if such disclosure is required under any of the circumstances described in Article 3 above, in which case the procedures specified therein with respect to such disclosure shall apply. 5. DOCUMENT RETENTION At any time upon the request of SDG&E, Other Party shall promptly deliver (and return, if applicable) to SDG&E or destroy (with such destruction to be certified to SDG&E) (i) all Confidential Information existing in written form or recorded in any other tangible medium (and all copies, abstracts and backups thereof, however stored) furnished to Other Party or any of its Representatives, (Ii) all portions of all documents, instruments, data, reports, plans, specifications, abstracts and media (and all copies, abstracts and backups thereof, however stored) furnished to or prepared by Other party or any of its Representatives that contain Confidential Information, and (iii) all other portions of all documents, installments, data, reports, plans, specifications, abstracts and media (and all copies, abstracts and backups thereof, however stored) in Other Party's or its Representatives' possession that contain or that are based on or derived from Confidential Information. Notwithstanding the foregoing, Other Party may retain one copy of any work product produced by Other Party in the course of carrying out the Transaction for its own archival records (in which case the other confidentiality obligations contained in this Agreement shall continue to apply) or to comply with any disclosure requirement of any regulatory authority having jurisdiction over the Transaction. 6. SURVlV AL Notwithstanding the return or destruction of all or any part of the Confidential Information, the terms of this Agreement shall nevertheless remain in full force and effect with respect to specific Confidential Information until the date that is five (5) years after the date of disclosure of sucll Confidential Information, except that the terms of this Agreement shall remain in full force and effect with respect to Confidential Customer Information in perpetuity. 2 11 -83- 7. ASSIGNMENT Other party may not assign (by operation of law or otherwise) any of its rights or obligations hereunder without the prior written consent of SDG&E. 8. REMEDIES The parties acknowledge that the Confidential Information is valuable and unique, and that damages would be an inadequate remedy for breach of this Agreement and the obligations of Other Party and its Representatives are specifically enforceable. Accordingly, the parties agree that in the event ofa breach or threatened breach of this Agreement by Other Party, SDG&E shall be entitled to seek an injunction preventing such breach, without the necessity of proving damages or posting any bond. Any such relief shall be in addition to, and not in lieu of, money damages or any other legal or equitable remedy available to SDG&E. 9. NO IMPLIED LICENSES Nothing in this Agreement will be construed as granting any rights to the Other Party, by license or otherwise, to any Confidential Information, except as specifically stated in this Agreement. 10. NONWAIVER It is understood and agreed that no failure or delay by SDG&E in exercising any right, power or privilege available hereunder or under applicable law shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof the exercise of any other such right, power or privilege. 11. ENTIRE AGREEMENT; AMENDMENT This Agreement contains the entire agreement between the parties with respect to the subject matter hereof, and may be amended only in writing signed by both parties. This Agreement supersedes any previous confidentiality or nondisclosure agreement or contractual provisions between the parties to the extent they relate to the subject matter hereof. 12. GOVERNING LAW The formation, interpretation and performance of this Agreement shall be governed by the internal laws of the State of California. 13. ATIORNEYS' FEES If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover from the unsuccessful party all costs, expenses (including expert testimony) and reasonable attorneys' fees, including allocated costs and fees of in-house counsel, incurred therein by the prevailing party. 14. VENUE AND ,JURISDICTION In the event of any litigation to enforce or interpret any terms of this Agreement, the parties agree that such action will be brought in the Superior Court of the County of San Diego, California (or, if the federal courts have exclusive jurisdiction over the subject matter of the dispute, in the U.S. 3 11-84 District Court for the Southern District of California), and the parties hereby submit to the exclusive jurisdiction of such courts. 15. NOTICES All notices to be given under this Agreement shall be in writing and either sent by (i) a nationally recognized overnight courier service, in which case notice shall be deemed delivered as of the date shown on the courier's delivery receipt; (ll) telecopy during business hours of the recipient, with a copy of the notice also deposited in the United States mail (postage prepaid) the same business day, in which case notice shall be deemed delivered on transmittal by telecopier provided that a transmission report is generated reflecting the accurate transmission of the notices; or (iii) United States mail, postage prepaid, in which case notice shall be deemed delivered as of two business days after deposit in the mail, addressed as follows: lfto SDG&E: With a copy to: If Other Party: San Diego Gas & Electric Company 8306 Century Park Court, CP42D San Diego, CA 92123-1530 Facsimile: (858) 654-0311 Attn: Julie Ricks Sempra Energy 101 Ash Street San Diego, CA 92101 Facsimile: (619) 696-4670 Attn: General Counsel City ofChula Vista 276 Fourth Avenue Chula Vista, CA 91910 Telephone: 619-409-5870 Facsimile: 619-476-5310 Attn: Michael Meacham These addresses may be changed by written notice to the other Party provided that no notice of a change of address shall be effective until actual receipt of the notice. Copies of notices are for informational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice. 16. SA VlNGS CLAUSE; EFFECT OF UNIFORM TRADE SECRETS ACT If any provision of this Agreement or the application thereof to any person, place, or circumstance, shall be held by a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of the Agreement and such provisions as applied to other persons, places, and circumstances shall remain in full force and effect. In the event of any conflict between any provision hereof and any provision of the Uniform Trade Secrets Act of California, the provision affording the greater degree of protection to the disclosing party shall control. 17. NO REPRESENTATION OR WARRANTY Other Party acknowledges and agrees that neither SDG&E nor any of SDG&E's representatives or agents is making any representation or warranty, express or implied, as to the accuracy or 4 11-85 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date last written below. City OfCh~ista ~ By: havid ;' Garcia Name: Approved as to legal form ~f-_~ cA- ~ Ann Moore f-r'.--' City Attorney Title: Citv Mana!!er Date: '6l~~ol SAN DmGO GAS & ELECTRIC COMPANY ~~~~ Name: tlltIlIr eff/t1t~f P~~/#,P Approved as to legal form ,-, . /; ... A fl1 ,lJ?V~l:'lZ I Title: ~t<- ~. ..>r"~ see.... ~ {IS o?- .A /. . ~ (Attorney's initials) Date: uL!.S// tJ ;z- 11-&9 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE. AGREEMENT WITH DOUGLAS R. NEWMAN RELATED TO THE WORK OF THE NATIONAL ENERGY CENTER FOR SUSTAINABLE COMMUNITIES AND THE CHULA VISTA RESEARCH PROJECT TO ANALYZE HOW THE RESULTS OF THE CHULA VISTA RESEARCH PROJECT RELATE SPECIFICALLY TO CALIFORNIA'S GLOBAL WARMING SOLUTIONS ACT OF 2006 (AB 32) AND INCREASING THE CONTRACT AMOUNT BY TEN THOUSAND DOLLARS ($10,000) WHEREAS, the National Energy Center for Sustainable Conununities (NECSe) was founded by the City of Chula Vista, San Diego State University (SDSU), and the Gas Technology Institute (GTI), with the support of the U.S. Department of Energy; and. WHEREAS, the NECSC's rnission is to promote healthier and more productive conununities by integrating cleaner energy systems and energy-smart planning and design into new development and redevelopment projects; and WHEREAS, the NECSC is currently undertaking the Chula Vista Research Project (CVRP), which will research technologies, plans, public policies and market-feasible business models for energy- and resource-efficient conununity development in Chula Vista; and WHEREAS, the NECSC intends to publish the results of the research in the form of reference guides; and WHEREAS, pursuant to Resolution No. 2008-002, the City Council approved an agreement with Douglas R. Newman to promote these reference guides and have them disseminated to local and state governmental agencies and private development companies throughout California; and WHEREAS, the State legislature adopted the California's Global Warming Solutions Act of2006 (AB 32); and WHEREAS, staff seeks to amend the contract with Mr. Newman to allow for a sub- consultant who will analyze the results of the CVRP as they relate to AB 32. J:\Attorney\RESO\AGREEMENTS\Douglas Newman Agreement First Amendment 04-22-08.doc - 11-87 Resolution No. 2008- Page 2 NOW, THEREFORE BE IT RESOLVED by the City Council of the City ofChula Vista as follows: 1. That it approves the First Amendment to the Agreement between the City and Douglas R. Newman related to the work of the National Energy Center for Sustainable Communities and the Chula Vista Research Project to analyze how the results of the Chula Vista Research Project relate specifically to California's Global Warming Solutions Act of 2006 (AB 32) and increases the contract amount by ten thousand dollars ($10,000). 2. That it authorizes the Mayor to execute the First Amendment to the Agreement. Presented by Approved as to form by David R. Garcia City Manager ~. 'I \ )!~ t..<L Ann Moore City Attorney ~ J:\Attomey\RESO\AGREEMENTS\Douglas Newman Agreement First Amendment_04-~-~.~c8 8