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HomeMy WebLinkAbout2010/05/11 Item 3 CITY COUNCIL AGENDA STATEMENT ::::::,~f::. CITY OF . (HULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: ,~) MAY 11, 2010, Item J RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (I) WAIVING THE CITY'S FORMAL BIDDING PROCESS INVOLVING SELECTION OF A CONSULTANT TO IMPLEMENT SDG&E/CHULA VISTA LOCAL GOVERNMENT PARTNERSHIP PROGRAM'S ENERGY-EFFICIENT ECONOMIC DEVELOPMENT INITIATIVE; (2) APPROVING AN AGREEMENT WITH DOUGLAS R. NEWMAN IN THE AMOUNT OF SIXTY FIVE THOUSAND DOLLARS ($65,000) TO ASSIST THE CITY IN THE IMPLEMENTATION OF SDG&E/CHULA VISTA LOCAL GOVERNMENT PARTNERSHIP PROGRAM'S ENERGY-EFFICIENT ECONOMIC DEVELOPMENT INTlATIVE; AND (3) AUTHORIZING THE CITY MANAGER TO EXECUTE TH~A REEMENT AND RELATED DOCUMENTS DEVELOPMENT SERVICES DIRECT EPUTY CITY MANAGER CITY MANAGE~ 4/STHS VOTE: YES D NO I jj I SUMMARY In partnership with SDG&E, the City has begun to demonstrate how energy-efficient and renewable energy technologies and energy conservation (EERE & EC) can be cost- effectively integrated into large-scale development projects to reduce energy consumption and greenhouse gas emissions. The current Local Government Partnership program will expand upon and leverage this work through additional research, demonstration and technical assistance initiatives that will enable developers and builders to design and construct high-efficiency and zero-net -energy proj ects at Greenfield and Brownfield sites throughout the City. Further, the program will manage these initiatives and assist the City in attracting businesses and development projects that will enhance the City's energy-efficiency and emission reduction goals. 3-1 ? MAY II, 2010, Item______ Page 2 of 4 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. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Over the last 3 years, the Chula Vista/SDG&E Local Government Partnership has matured into a comprehensive and highly-effective program which has been recognized statewide as a model for successful collaboration. The accomplishments of the Economic Development portion of the program include the creation of energy resources guides for local and state government agencies and private development companies across the State and the facilitation of the design and construction of the LEED-platinum Los Vecinos Affordable Housing project. In both cases, the Local Government Partnership provided funding to deliver these services at no-cost to the community and supported City staff time and consultant fees. One component of the San Diego Gas & Electric's 2010-2012 Energy Efficiency program is the Energy-Efficient Economic Development Initiative (Initiative). Through the Initiative, the City's Economic Development Division will demonstrate how energy- efficient and renewable energy technologies and energy conservation can be cost- effectively integrated into large-scale development projects to reduce energy consumption and greenhouse gas emissions. The initiative will expand upon and leverage previous work by the City and the National Energy Center for Sustainable Communities through additional research, demonstration, and technical assistance projects. More particularly, the Initiative will contain the following action elements: I) resource and manage feasibility studies/projects to determine the cost-effective combinations of Energy Efficient, Renewable Energy and Energy Conservation (EEERE&EC) technologies and urban design features that deliver maximum energy efficiency and emission reduction gains in representative residential, commercial, industrial, institutional and mixed-use projects in the city; 2) collaborate with development and building industry partners to demonstrate model EERE&EC technology applications in representative development projects across the city; 3) facilitate the planning and design of a new Eco-IndustriallBusiness Park on City-owned land; and 4) recruit new businesses specializing in clean energy technologies, products and services and recruit clean energy technology research and development organizations to the University Park and Research 3-2 MAY II, 2010, ItemL Page 3 of 4 Center. All of these elements will work to ensure that new business recruitment/development projects produce significant energy savings and emissions reductions. The City is seeking to retain Mr. Douglas Newman (Consultant) to assist the Economic Development Division in implementing the Initiative. Specifically, the Consultant will assist and lead targeted attraction efforts focusing on new businesses specializing in clean energy technologies, products and services. The Consultant will also seek to attract clean energy technology research and development organizations to the University Park and Research Center. The City and the Consultant will work with the aforementioned SDG&E programs to ensure that new business recruitment/development projects produce energy savings and emissions reductions. The work to be performed by Mr. Newman is closely aligned with the City's Economic Development Strategy. The City's Economic Development Strategy seeks to attract clean technology businesses and businesses focused on sustainable development. The SDG&E funding will allow the City to further these efforts and showcase the City leadership in energy efficiency and sustainable development. Bidding Process Waiver Chula Vista Municipal Code section 2.56.070 requires that contracts for services when the estimated cost exceeds $50,000 shall be awarded by the City Council to the lowest responsive and responsible bidder submitting the best bid in accordance with a competitive bidding process. Exceptions to this requirement may be granted where there is a commodity or service available from only one known source as the result of unique performance capabilities, compatibility requirements or market conditions. The competitive bidding requirements may be waived by the City Council when they are impractical, impossible or the city interests would be materially better served by a different procurement process. Staff is recommending that the formal bidding process be waived for the Economic Development Initiative. This recommendation is based on the following capabilities that are uniquely being offered to the City by Douglas Newman: . Mr. Newman is the Director of the National Energy Center for Sustainable Communities, a collaboration effort established through a memorandum of understanding approved by the City Council March 28, 2006, between the City of Chula Vista, San Diego State University and the Gas Technology Institute, which is advancing energy-efficient community development in California. . Mr. Newman has successfully designed and managed two previous projects on related subjects for the Chula VistaJSDG&E Local Government Partnership program. The continuity and consistency that would be provided by the retention of Mr. Newman builds on the relationships established with local, state and federal agencies through these initial phases of the program. 3-3 MAY II, 2010, Iteml Page 4 of 4 . Mr. Newman's previous participation with the NECSC and the City of Chula Vista projects provides him unique knowledge that could not otherwise be obtained from similar consultants. . Mr. Newman holds Masters Degrees in urban and regional planning and public policy and administration 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 the Chula Vista/SDG&E Local Government Partnership program. These service capabilities were found to be necessary in order to continue the work of the Chula Vista/SDG&E Local Government Partnership program. 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 I 8704.2(a)(l) is not applicable to this decision. CURRENT YEAR FISCAL IMP ACT The Local Government Partnership provides the City with $4,088,991 ($1,362,997 per calendar year) in funding to support the Chula Vista/SDG&E Local Government Partnership program through December 2012. Of these funds, $268,000 (per calendar year) has been allocated for Economic Development related activities. The funds, which have been appropriated to the Energy Conservation Fund, are used to support City staff time and program costs for developing and implementing energy efficiency programs. Therefore, there will be no impact to the City's General Fund. ONGOING FISCAL IMPACT As stated above, $268,000 (per calendar year) has been allocated for Economic Development related activities for the Chula Vista/SDG&E Local Government Partnership program. The funds are used to support City staff time and program costs for developing and implementing energy efficiency programs. Therefore, there will be no impact to the City's General Fund. ATTACHMENTS 1. Consultant Contract Prepared by: Craig Ruiz, Principal Economic Development Specialist, Development Services Department /Economic Development Division 3-4 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 /~ /)( Bart C. Miesfeld City Attorney Dated: S I <; }I D AGREEMENT BETWEEN CITY OF OlliLA VISTA AND DOUGLAS R. NEWMAN FOR PROFESSIONAL SERVICES REAL TED TO SAN DIEGO GAS AND ELECTRIC LOCAL GOVERNMENT PARTNERSHIP PROGRAM 3-5 Agreement between the City of Chula Vista and Douglas R. Newman for professional services related to the San Diego Gas and Electric Local Government Partnership Program This agreement ("Agreement"), dated January 1,2010 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A to this Agreement ("Exhibit A"), Paragraph I, is between the City-related entity whose name and business fonn is indicated on Exhibit A, Paragraph 2, ("City"), and the entity whose name, business fonn, place of business and telephone numbers are indicated on Exhibit A, Paragraphs 4 through 6, ("Consultant"), and is made with reference to the following facts: Recitals WHEREAS, since 2006 the City of Chula Vista and SDG&E, under the auspices of the California Public Utilities Commission, have been collaborating in the implementation of a Local Government Partnership Program ("SDG&E/Chula Vista LGPP") to support energy efficiency services to local residents, businesses and City operations that reduce the amount of electricity and natural gas consumed and lower monthly utility costs; and WHEREAS, over the last three years, the SDG&E/Chula Vista LGPP has matured into a comprehensive and effective program which has been recognized statewide as a model for successful collaboration; and WHEREAS, SDG&E/Chula Vista LGPP's accomplishments include the creation of energy resources guides for local and state government agencies and private development companies across the state and the facilitation of the design and construction of the LEED-platinum Los Vecinos Affordable Housing project; and WHEREAS, the SDG&E/Chula Vista LGPP will continue through December 2012 and provide $1,362,997 per calendar year in funding; and WHEREAS, the SDG&E/Chula Vista LGPP contains funding for the Energy-Efficient Economic Development Initiative, which includes planning, demonstrations, and research; and WHEREAS, this Agreement involves work to be perfonned in connection with the SDG&E/Chula Vista LGPP and the Energy-Efficient Economic Development Initiative; and WHEREAS, Mr. Douglas Newman ("Consultant") is the Director of the National Energy Center for Sustainable Communities, a collaboration between the City of Chula Vista, SDSU and the Gas Technology Institute, that is advancing energy-efficient community development in California; and 3-6 Page 1 WHEREAS, Consultant holds Masters Degrees in urban and regional planning and public policy and administration 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 the proposed Energy-Efficient Economic Development Initiative; and WHEREAS, Consultant has successfully designed and managed three previous projects on related subjects for the SDG&E/Chula Vista LGPP; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] 3-7 Page 2 NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: All of the Recitals above are incorporated into this Agreement by this reference. ARTICLE 1. CONSULTANT'S OBLIGATIONS A. General I. General Duties. Consultant shall perform all of the services described on Exhibit A, Paragraph 7 ("General Duties"). Consultant shall also perform and be bound the terms and conditions set forth in Exhibits B and C, attached hereto and incorporated by reference into this Agreement. 2. Scope of Work and Schedule. In performing and delivering the General Duties, Consultant shall also perform the services, and deliver to City the "Deliverables" described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule," according to, and within the time frames set forth in Exhibit A, Paragraph 8, 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 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, terminate this Agreement. a. 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 the reduction. b. Additional Services. In addition to performing the Defined Services, 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. 3. Standard of Care. The Consultant expressly warrants that the work to be performed pursuant to this Agreement, whether Defined Services or Additional Services, shall be performed in accordance with the standard of care ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. a. No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages 3-8 Page 3 caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. B. Application of Laws. Should a federal or state law pre-empt a local law, or regulation, the Consultant must comply with the federal or state law and implementing regulations. No provision of this Agreement requires the Consultant to observe or enforce compliance with any provision, perform any other act, or do any other thing in contravention of federal, state, territorial, or local law, regulation, or ordinance. If compliance with any provision of this Agreement violates or would require the Consultant to violate any law, the Consultant agrees to notifY City immediately in writing. Should this occur, the City and the Consultant agree that they will make appropriate arrangements to proceed with or, if necessary, amend or terminate this Agreement, or portions of it, expeditiously. 1. Subcontractors. Consultant agrees to take appropriate measures necessary to ensure that all participants utilized by the Consultant to complete its obligations under this Agreement, such as subcontractors, comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local, affecting Project implementation. In addition, if a subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, the Consultant shall ensure that the subcontractor carries out the Consultant's responsibilities as set forth in this Agreement. C. Insurance 1. General. Consultant must procure and maintain, during the period of performance of this Agreement, and for twelve months after completion, policies of insurance from insurance companies to protect against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under this Agreement and the results of that work by the Consultant, his agents, representatives, employees or subcontractors, and provide documentation of same prior to commencement of work. 2. Minimum Scope of Insurance. Coverage must be at least as broad as: a. CGL. Insurance Services Office Commercial General Liability coverage (occurrence Form CGOOOl). b. Auto. Insurance Services Office Form Number CA 0001 covenng Automobile Liability, Code 1 (any auto). c. We. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. d. E&O. 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. 3-9 Page 4 3. Minimum Limits of Insurance. Consultant must maintain limits no less than those included in the table below: i. General Liability: $1,000,000 per occurrence for bodily injury, personal injury, (Including (including death), and property damage. If Commercial General operations, Liability insurance with a general aggregate limit is used, either products and the general aggregate limit must apply separately to this completed Project/location or the general aggregate limit must be twice the operations, as required occurrence limit. applicable) ii. Automobile $1,000,000 per accident for bodily injury, including death, and Liability: property damage. iii. Workers' Statutory Compensation $1,000,000 each accident Employer's $1,000,000 disease-policy limit Liability: $1,000,000 disease-each employee iv. Professional $1,000,000 each occurrence Liability or Errors & Omissions Liability: 4. Deductibles and Self-Insured Retentions. 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. 5. 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: a. Additional Insureds. City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to all policies of insurance, including those 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 Consultant's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. b. Primary Insurance. The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, 3-10 Page 5 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 Consultant and in no way relieves the Consultant from its responsibility to provide Insurance. c. Cancellation. The insurance policies required by this Agreement shall not be canceled by either party, except after thirty days' prior written notice to the City by certified mail, return receipt requested. The words "will endeavor" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives" shall be deleted from all certificates. d. Active Negligence. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insureds in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. e. Waiver of Subrogation. Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage for the term required by this Agreement. 6. Claims Forms. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: a. Retro Date. The "Retro Date" must be shown, and must be before the date of the Agreement or the beginning of the work required by the Agreement. b. Maintenance and Evidence. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the work required by the Agreement. c. Cancellation. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the effective date of the Agreement, the Consultant must purchase "extended reporting" coverage for a minimum of five years after completion of the work required by the Agreement. d. Copies. A copy of the claims reporting requirements must be submitted to the City for review. 7. Acceptabilitv 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. 3-11 Page 6 8. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by Section I.C. of this Agreement. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the requirements of this Agreement. 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. 9. Subcontractors. Consultant must include all subconsultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subconsultants is subject to all of the requirements included in these specifications. 10. Not a Limitation of Other Obligations. Insurance provisions under this Article shall not be construed to limit the Consultant's obligations under this Agreement, including Indemnity. D. 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 amount indicated at Exhibit A, Paragraph 18, 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, http://www.fms.treas.gov/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 limits so required. Form must be satisfactory to the Risk Manager or City. 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 its 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 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 3-12 Page 7 (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. E. 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. ARTICLE II. CITY OBLIGATIONS A. Consultation and Cooperation. City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule, and to provide direction and guidance to achieve the objectives of this Agreement. The City shall allow Consultant access to its office facilities, files and records, as deemed necessary and appropriate by the City, throughout the term of this Agreement. In addition, City agrees to provide the materials identified at Exhibit A, Paragraph 9, with the understanding that delay in the provision of those materials beyond thirty days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance. B. Compensation. I. Following Receipt of Billing. Upon receipt of a properly prepared bill from Consultant, submitted to the City 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 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. 2. Supporting Information. Any billing submitted by Consultant shall contain sufficient information as to the propriety of the billing, including properly executed payrolls, time records, invoices, contracts, or vouchers describing in detail the nature of the charges to the Project in order to permit the City to evaluate that the amount due and payable is proper, and such billing shall specifically contain the City's account number indicated on Exhibit A, Paragraph 17(C) to be charged upon making such payment. 3. Exclusions. In determining the amount of the compensation City will exclude any cost: 1) incurred prior to the effective date of this Agreement; or 2) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of the Consultant, its agents, employees, or subcontractors. a. Errors and Omissions. In the event that the City Administrator determines that the Consultant's negligence, errors, or omissions in the performance of work 3-13 Page 8 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 in this paragraph is intended to limit City's rights under other provisions of this Agreement. 4. Pavment Not Final Approval. The Consultant understands and agrees that payment to the Consultant for any Project cost does not constitute a City final decision about whether that cost is allowable and eligible for payment under the Project and does not constitute a waiver of any violation of Consultant of the terms of the Agreement. The Consultant acknowledges that City will not make a final determination about the eligibility of any cost until the final payment has been made on the Project or the results of an audit of the Project requested by the City has been completed, whichever occurs latest. If City determines that the Consultant is not entitled to receive any portion of the compensation due or paid, City will notify the Consultant in writing, stating its reasons. The Consultant agrees that Project closeout will not alter the Consultant's responsibility to return any funds due City as a result of later refunds, corrections, or other similar transactions; nor will Project closeout alter the right of City to disallow costs and recover funds provided for the Project on the basis of a later audit or other review. a. Consultant's Obligation to Pay. Upon notification to the Consultant that specific amounts are owed to City, whether for excess payments or disallowed costs, the Consultant agrees to remit to City promptly the amounts owed, including applicable interest. ARTICLE III. ETHICS A. Financial Interests of Consultant I. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit 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 if none are specified, then as determined by the City Attorney. The City, in its sole and unfettered discretion, may designate Consultant an FPPC filer at any time during this Agreement and Consultant must comply with this paragraph upon notice by the City of such designation. 2. No Participation in Decision. 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. 3-14 Page 9 3. 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. 4. 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. 5. Dutv 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 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. 6. Specific Warranties Against Economic Interests. Consultant warrants, represents and agrees that: a. 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 ofthe 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. b. No promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or 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. c. 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. d. 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. IV. LIQUIDATED DAMAGES 3-15 Page 10 A. Application of Section. The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. 1. Estimating Damages. 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. 2. Amount of Penaltv. 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"). 3. Request for Extension of Time. If the performance of any act required of Consultant is directly prevented or delayed by reason of strikes, lockouts, labor disputes, unusual governmental delays, acts of God, fire, floods, epidemics, freight embargoes, or other causes beyond the reasonable control of the Consultant, as determined by the City, Consultant shall be excused from performing that act for the period of time equal to the period of time of the prevention or delay. In the event Consultant claims the existence of such a delay, the Consultant shall notify the City's Contract Administrator, or designee, in writing of that fact within ten calendar days after the beginning of any such claimed delay. Extensions of time will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. ARTICLE V. INDEMNIFICATION A. Defense, Indemnity, and Hold Harmless. 1. General Requirement. Except for liability for Design Professional Services covered under Article V., Section A.2., Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, agents and employees, from and against any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Defined Services or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence, active negligence or 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 ofthe Consultant, its employees, agents or officers, or any third party. 3-16 Page 11 2. Design Professional Services. If Consultant provides design professional services, as defined by California Civil Code section 2782.5, as may be amended from time to time, Consultant shall defend, indenmifY and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of Consultant, its officials, officers, employees, agents, consultants, and contractors arising out of or in connection with the performance of Consultant's services. Consultant's duty to defend, indenmify, and hold harmless shall not include any claims or liabilities arising from the sole negligence, active negligence or willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Consultant's obligations and duties under this Agreement. 3. Costs of Defense and Award. Included in the obligations in Sections Al and A2, above, is the Consultant's obligation to defend, at Consultant's own cost, expense and risk, any and all suits, actions or other legal proceedings, that may be brought or instituted against the City, its directors, officials, officers, employees, agents and/or volunteers, subject to the limitations in Sections AI. and A2. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents and/or volunteers, for any and all related legal expenses and costs incurred by each of them, subject to the limitations in Sections AI. and A.2. 4. Insurance Proceeds. Consultant's obligation to indenmifY shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents, and/or volunteers. 5. Declarations. Consultant's obligations under Article V shall not be limited by any prior or subsequent declaration by the Consultant. 6. Enforcement Costs. Consultant agrees to pay any and all costs City incurs enforcing the indenmity and defense provisions set forth in Article V. 7. Survival. Consultant's obligations under Article V shall survive the termination of this Agreement. ARTICLE VI. TERMINATION OF AGREEMENT A. Termination 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 3-17 Page 12 equitable compensation, in an amount not to exceed that payable under this Agreement and less any damages caused City by Consultant's breach, for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination,. B. 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. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement, 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 in this section. ARTICLE VII. RECORD RETENTION AND ACCESS A. Record Retention. During the course of the Project and for three (3) years following completion, the Consultant agrees and to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the Project as City may reqUire. B. Access to Records of Consultant and Subcontractors. The Consultant agrees to permit, and require its subcontractors to permit City or its authorized representatives, upon request, to inspect all Project work, materials, payrolls, and other data, and to audit the books, records, and accounts of the Contractor and its subcontractors pertaining to the Project. C. Project Closeout. The Consultant agrees that Project closeout does not alter the reporting and record retention requirements of this Agreement. ARTICLE VIII. PROJECT COMPLETION, AUDIT, AND CLOSEOUT A. Project Completion. Within ninety (90) calendar days following Project completion or termination by City, Consultant agrees to submit a final certification of Project expenses and audit reports, as applicable. B. Audit of Consultants. Consultant agrees to perform financial and compliance audits the City may require. The Consultant also agrees to obtain any other audits required by City. Consultant agrees that Project closeout will not alter Consultant's audit responsibilities. Audit costs are allowable Project costs. C. Project Closeout. Project closeout occurs when City notifies the Consultant that City has closed the Project, and either forwards the final payment or acknowledges that the Consultant has remitted the proper refund. The Consultant agrees that Project closeout by City does not 3-18 Page 13 invalidate any continuing requirements imposed by the Agreement or any unmet requirements set forth in a written notification from City ARTICLE IX. MISCELLANEOUS PROVISIONS A. 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. I. Limited Consent. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identified as "Permitted Subconsultants". B. 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. C. 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, independent contractors and shall not be deemed to be employees 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 to them. I. Actions on Behalf of City. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever, as an agent or otherwise. Consultant shall have no authority, express or implied, to bind City or its members, agents, or employees, to any obligation whatsoever, unless expressly provided in this Agreement. 2. No Obligations to Third Parties. In connection with the Project, Consultant agrees and shall require that it's agents, employees, subcontractors agree that City shall not be responsible for any obligations or liabilities to any third party, including its agents, employees, subcontractors, or other person or entity that is not a party to this Agreement. 3-19 Page 14 Notwithstanding that City may have concurred in or approved any solicitation, subagreement, or third party contract at any tier, City shall have no obligation or liability to any person or entity not a party to this Agreement. D. Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement, against City unless a claim has first been presented in writing and filed with City and acted upon by 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 of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by 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. E. Administration of Contract. Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 12, as that party's contract administrator who is authorized by the party to represent it in the routine administration of this Agreement. F. Term. This Agreement shall terminate when the parties have comp1ied with all executory provisions hereof. G. 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 attorneys' fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. H. 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 the 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. 1. Consultant is Real Estate Broker and/or Salesman. If the box on Exhibit A, Paragraph 15 is marked, the Consultant and/or is principals is/are licensed with the State of California or some other state as a real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor its principals are licensed real estate brokers or salespersons. J. 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 if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement as the places of business for each of the designated parties. K. Integration. This Agreement, together with any other written document referred to or contemplated in it, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision of it may be 3-20 Page 15 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. L. Capacity of Parties. Each signatory and party to this Agreement 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 necessary resolutions or other actions have been taken so as to enable it to enter into this Agreement. M. 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 under it, shall be the City of Chula Vista. (End of page. Next page is signature page.) 3-21 Page 16 Signature Page to Ab'Teement between City of Chula Vista and Douglas R. Newman for Professional Services related to the San Diego Ga.~ and Electric Local Governmt:nt Partnt:rship Program IN WITNESS WHEREOF, City and Consultant have executed this Agreement, indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: City ofChula Vista By: Cheryl Cox, Mayor Attest: Donna Norris, City Clerk Approved as to form: Dated: - S< l -_..._~2<-'~-~) / Douglas R. Newman ---- Bart Miesfeld, City Attorney Exhibit List to Agreement (X) Exhibit A. 3-22 Page 17 Exhibit A to Agreement between City ofChula Vista and Douglas R. Newman I. Effective Date of Agreement: January I, 20 I 0 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency ofthe City of Chula Vista, a political subdivision ofthe State of California ( ) Industrial Development Authority of the City ofChula Vista, a ( ) Other: , a [insert business form] ("City") 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 171 I Chicago, IL 60640 Voice Phone: (773) 899-0801 7. General Duties: Consultant will prepare and execute a detailed plan to advance energy-efficient economic development in the City of Chula Vista and to produce resources transferable to other communities in the SDG&E service territory during the three-year partnership agreement. This 3-23 Page 18 initiative will be designed as a peer-to-peer program for energy efficiency to confonn to the SDG&E's Partnership fund requirements. Consultant shall abide by each and every tenn and condition of the Agreement to jointly deliver the 2010-2012 City of Chula Vista Energy Efficiency and Conservation Outreach Program between the City Of Chula Vista and San Diego Gas & Electric Company, dated December 15, 2009, 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: 1. Demonstrate Value of EERE&EC Development Projects Consultant will collaborate with energy technology, development and building industry partners to demonstrate model EERE&EC technology applications at development sites in Chula Vista. Consultant will seek additional Federal and State government and private-sector support to plan, execute, and document the technology demonstration initiatives and to build a business case for municipal and industry adoption. 1. Deliverables (2010) - Consultant will provide project planning advice to the municipal project managers; create a written technology planning and demonstration project proposal; conduct a minimum of twelve (12) exploratory discussions with prospective industry and government partners/sponsors; conduct a selection of proposed demonstration technology applications and site(s); prepare and deliver eight (8) solicitation materials packets to prospective partners/sponsors; conduct negotiation of offers of support; and develop a written summary of the demonstration project(s) for public consumption through public and media outlets. 2. Retain & Expand Allied Businesses, Institutions & Development Projects 1. Deliverables (2010) - Consultant will assist the Economic Development Office in communicating to existing businesses, and to those relocating to the City, the "business case" for EERE&EC technologies and their value in lowering operating costs. Consultant will participate in the planning and design of the City's new Eco-lndustriallBusiness Park, conduct review and analysis offeasibility studies prepared by other consultants. 11. Deliverables (2010) - Consultant will assist in recruiting clean energy technology research and development organizations to the University Park and Research Center. Consultant will assist the Planning Division in soliciting Federal and State government funding and collaboration for the proposed low-carbon site development standard project. The City and the Consultant will work with 3-24 Page 19 SDG&E's Savings by Design, Sustainable Communities, Emerging Technologies, and the Express Efficiency programs to ensure that new business recruitment/development projects produce energy savings and emissions reductions. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.1: Deliverable No.2: Deliverable No.3: Deliverable NO.4: D. Date for completion of all Consultant services: December 31,2010. The City, in its sole and unfettered discretion, may extend this time period. 9. Materials required to be supplied by City to Consultant: None 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: Sixty Five Thousand Dollars ($65,000.00), payable as follows: (X) I. 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 3-25 Page 20 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. Phase I. 2. 3. Fee for Said Phase $ $ $ ( ) I. 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: (I) ( ) Not-to-Exceed Limitation on Time and Materials Arrangement 3-26 Page 21 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 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. See Exhibit B for wage rates. ( )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 all 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 $ () Outside Services: () Other Actual Identifiable Direct Costs: , not to exceed $ , not to exceed $ 12. Contract Administrators: City: Craig Ruiz 276 Fourth Avenue Chula Vista, CA 91910 Consultant: Douglas Newman 5415N. Sheridan Road, Suite 1711 3-27 Page 22 Chicago, IL 60640 13. Liquidated Damages Rate: ( ) $ ( ) Other: per day. 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict ofInterest Code (Chula Vista Municipal Code chapter 2.02): (X) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer ( ) Category No. I. Investments, sources of income and business interests. ( ) Category No.2. Interests in real property. ( ) Category No.3. Investments, business posItIOns, interests in real property, and sources of income subject to the regulatory, permit or licensing authority of the department administering this Agreement. ( ) Category No.4. Investments and business positions 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 and business positions in business entities and sources of income that, within the past two years, have contracted with the City of Chula Vista or the City's Redevelopment Agency to provide services, supplies, materials, machinery or equipment. ( ) Category NO.6. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the department administering this Agreement to provide services, supplies, materials, machinery or equipment. ( ) 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 I. Bill Processing: 3-28 Page 23 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: C. City's Account Number: _28578-6301_ 2. 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: 3-29 Page 24 ATTACHMENT B AGREEMENT TO JOINTLY DELIVER THE 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP PROGRAM BETWEEN CITY OF CHULA VISTA and SAN DIEGO GAS & ELECTRIC COMPANY Dated: December 15, 2009 This program is fnnded by California utility customers under the auspices of the California Public Utilities Commission. 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-30 THIS AGREEMENT TO JOINTLY DELIVER THE 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP PROGRAM (the "Agreement") is effective as of January 1,2010 ("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. " RECITALS WHEREAS, on October 1, 2009 the California Public Utilities Commission (the "Commission") in 09-09-047 in A.08-07-02l et al authorized certain energy efficiency programs to be delivered to California utility customers for the years 2010 through 2012 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 2010-2012 City ofChula Vista Energy Efficiency and Conservation Partnership 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 enter into an agreement that supersedes all previous agreements, if any, and sets forth the terms and conditions under which the Program for the 2010 through 2012 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. DEFINITIONS 1.1. Agreement: This document and all exhibits attached hereto and incorporated herein, and as amended rrom 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. 1A. Authorized Budget: The Commission-approved total for performance of the Authorized Work is $4,088,991 as set forth in the Scope of Work. 1.5. Business Day: The period from one midnight to the following midnight, excluding Saturdays, Sundays, and holidays. 2 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-31 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. Scope of Work: The Parties' Scope of Work for implementing the Program in SDG&E's service territory is attached hereto and incorporated herein as Exhibit A. 1.8. 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 staff labor for the Program. 1.9. Cost Categories: Iterns defined by the Commission's Reporting Requirements Manual. The cost categories relevant to this Program are noted in the Scope of Work. 1.10. Eligible Customers or Customers: Customers eligible for Program services are SDG&E customers. 1.11. Energy Efficiency Measure (or Measure): As used in the Commission's Energy Efficiency Policy Manual, Version 3, August 2005. 1.12. EM&V: Evaluation, Measurement and Verification of the Program pursuant to Commission requirements. 1.13. Gas Surcharge: The funds collected from gas utility ratepayers pursuant to Section 890 et al. of the California Public Utilities Code for public purposes programs, including energy efficiency programs approved by the Commission. 1.14. Program Expenditures: Actual (i.e., no mark-up for profit, administrative 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. 1.15. 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 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-32 "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 work authorized pursuant to this Agreement is not to be performed 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 2010-2012 SDG&E/Chula Vista Energy Efficiency Partnership's goal is to create innovative approaches to improving community and municipal energy efficiency and achieving both direct and indirect energy savings. The Partnership will combine and leverage the resources of four City departments to deliver cost-effective, holistic opportunities for promoting energy efficiency within the community. The program components include municipal facility efficiency improvements, strengthened building energy codes and inspections, energy-saving redevelopment planning and design and community-based energy conservation education and facility assessments. The program will mainly serve City of Chula Vista residents and businesses estimated at 225,000 and 13,000, respectively. It is also anticipated that the SDG&E/Chula Vista Partnership may partially serve neighboring communities and further act as a program model for other South Bay cities' future involvement in SDG&E Energy Efficiency Partnerships. 4. AUTHORIZED WORK 4.1. Scope. The work authorized by the Commission for the Program ("Authorized Work") is set forth in this Agreement and in the Scope of Work for the service territory of SDG&E and shall be performed by the Parties pursuant to the terms of this Agreement. 4.2. Obiectives. Major objectives for the Program are as follows: Community Energy Efficiency The Conservation & Environmental Services Department will continue to promote energy efficiency and conservation in the community through its business/residential energy evaluation program and participation in community outreach events. Staff will use the on-site evaluations and events to distribute energy-saving devices such as Compact Fluorescent Lamps, LED holiday lights, indoor water savings kits, and "smart" power strips to help the community reduce their energy use and utility costs. Staff will also integrate the new Home 4 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-33 Upgrade, Carbon Downgrade program, which provides streamlined permitting, contracting, and financing for energy efficiency retrofits, into Partnership activities. Finally, the Conservation & Environmental Services Department will assist neighboring South Bay communities in developing their own energy and climate-related programs helping to reduce regional energy demand and improve local air quality. Sustainable Communities The Sustainable Communities Program, which is administered by the Development Services Department, will work to further integrate energy efficiency into the planning, permitting, and inspection process. Program staff will provide technical support to permit applicants, contractors, and developers on energy efficiency measures and will train permit counter technicians, plans examiners, and building inspectors on advanced energy technologies. Finally, the program will verify compliance with Chula Vista's new green building standards (including enhanced energy efficiency requirements) and may develop a voluntary, incentivized option for project proponents interested in efficiency levels beyond the new State codes and related City ordinances. Energy-Efficient Economic Development Initiative The City's Economic Development Division will demonstrate how energy- efficient and renewable energy technologies and energy conservation can be cost- effectively integrated into large-scale development projects to reduce energy consumption and greenhouse gas emissions. The initiative will expand upon and leverage current work by the National Energy Center for Sustainable Communities through additional research, demonstration, and technical assistance projects that will enable developers and builders to design and construct high- efficiency and zero-net-energy projects at "Greenfield" and "Brownfield" sites throughout the City. Municipal Energy Efficiency Improvements . The program, which is administered by Public Works with assistance crom the Conservation & Environmental Services Department, will support staff time to expand the City's energy management efforts by identifYing and implementing energy efficiency and demand response strategies which lower municipal energy consumption and produce cost savings. 5. OBLIGATIONS OF THE PARTIES 5.1. Generally. Each Party shall perform its Authorized Work obligations within the Authorized Budget in conformance with the deliverables, schedules (including the Milestone Schedule) and the budgets associated with such Authorized Work as set forth in this Agreement and the Concept Paper, and shall furnish the required labor, equipment 5 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-34 and material with the degree of skill and care that is required by current professional standards. 5.2. Additional Obligations ofCitv. 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 administered 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 best 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. ADMINISTRATION OF PROGRAM 6.1. Decision-making and Aooroval. 6.1.1. The following actions and tasks require unanimous consent of the Parties: 6 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERV ATlON PARTNERSHIP AGREEMENT 3-35 a. Any action that materially deviates from the Scope of Work. b. Any action that materially impacts the Scope of Work's schedule or the Program. c. Any action that materially impacts the Program's budget set forth in the Scope of Work. 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, 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 Progmm 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 (ii) 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 milestone schedule set forth in Exhibit D ("Milestone Schedule"), 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 Parties of any problems associated with successful implementation of the Program. 6.5. Coordinating with Other Energy 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, minimize 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-Resnonsibilitv for Other Parties. Notwithstanding anything contained in this Agreement in the contrary, a Party shall not be responsible for the performance or non- 7 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-36 performance hereunder of any other Party, nor be obligated to remedy any other Party's defaults or defective performance. 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 minimize 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 5 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 fimding 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 fimding source ("double-dipping"). 8. REPORTING 8.1. Reporting 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 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-37 8.2. Commission Reporting 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, Revised April 2005) and any other reporting 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. The total Authorized Budget for performance of the Authorized Work is $4,088,991. No Party shall be entitled to compensation in excess of 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. Program EXDenditures. Each Party shall be entitled to spend PGC or Gas Surcharge Program Funds on Program Expenditures incurred by such Party. 9.3. Pavment to City. In order for City to be entitled to PGC or Gas Surcharge funds for Program Expenditures: 9.3.1. City shall submit 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 ("Quarterly City Reports"), by the tenth (loth) Calendar Day of the calendar month following performance, setting forth all Program Expenditures. 9.3.2. City shall submit to SDG&E, together with its Quarterly City Report, a quarterly invoice for reimbursement of reported Program Expenditures, in a format acceptable to SDG&E, attaching all documentation reasonably necessary to substantiate the Program Expenditures, including, 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 (iv) the date each payment was provided or each measure was installed or received. 9 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-38 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. 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. d. TraveVfraining/Conference: 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). e. 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. f. Marketing: A copy of each distinct marketing material produced, with quantity of a given marketing material produced and the method of distribution. 9.3.3. 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 therefore 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 Scope of Work or the Program. c. Such invoiced amount, in SDG&E's sole discretion, contains charges for any item not authorized under this Agreement or by the 10 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-39 Commission, or is deemed untime1y, unsubstantiated or lacking proper documentation. 9.3.4. Should SDG&E disapprove of any Program Expenditure of City, City invoice or Quarterly 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 there from shall be resolved in accordance with the procedures set forth in Section 14. 9.3.5. City shall maintain for a period of not less than five (5) years all documentation reasonably necessary to substantiate the Program Expenditures, including, without limitation, the documentation set forth in Section 9.3.2(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 Scope of Work to the maximum extent permitted under, and in accordance with, Commission decisions and rulings to which this Program relates. 9.5. Reasonableness of Expenditures. 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 retum. 9.6. Refund ofPGC 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 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 11 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-40 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 administrative 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 therefore, to the Party who made the overpayment, and the Party who made the overpayment shall have the right to set the overpayment off trom 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, or otherwise by the mutual agreement of the Parties or so ordered by the Commission, the Parties shall complete all Program Administrative activities (as defined by the Scope of Work) and reporting requirements by no later than March 31, 2013. 11. FINAL INVOICES All Parties must submit final invoices no later than March 31, 2013. 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, trom and against any and all expenses, claims, losses, damages, liabilities or actions in respect thereof (including reasonable attorneys' fees) to the extent arising trom (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. 12.2. Indemnitv 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, trom and against any and all expenses, claims, losses, damages, liabilities or actions in respect thereof (including reasonable attorneys' fees) to the extent arising trom (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 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-41 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 PROFITS, 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. OWNERSHIP OF DEVELOPMENTS The Parties acknowledge and agree that SDG&E, on behalf 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 Scope of Work, it will have a permanent, royalty free, non- exclusive license to use such Developments. 14. DISPlITE RESOLUTION 14.1. Dispute 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. 14.2. 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. 13 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-42 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 final 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 14.2. 15. REPRESENT A TraNS AND WARRANTIES City represents and warrants, 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 govermnents, and all agencies thereof. 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. 14 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-43 15.6. City shall contractually require all of its Contractors to provide the other Parties 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 may require its Contractors to maintain, the following insurance coverage or self insurance coverage, at all times during the Term of this Agreement: a. b. Workers' Compensation and Employers' Liability: statutory minimum. Commercial General Liability: $1 million minimum. Commercial or Business Auto (if applicable): $1 million minimum. Professional Liability (if applicable): $1 million minimum. c. d. 16. PROOF OF INSURANCE 16.1. Evidence of Insurance. 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. 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 15 2010-2012 CITY OF CHULA VISTAENERGYEFFIClENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-44 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 Proceedings. This provision 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 thereot) 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 thereot), during the performance of this Agreement shall be returned upon written request by SDG&E. 17.6. Remedies. The Parties acknowledge that Confidential Customer Information 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 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 Commission. 19. CUSTOMER COMPLAINT RESOLUTION PROCESS 16 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-45 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. 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. SDG&E shall allow twenty (20) days for such City review and approval. 21. RIGHT TO AUDIT 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 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. 17 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-46 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. TERMANDTERMlNATION 24.1. Term. This Agreement shall be effective as of January 1,2010. The Agreement shall continue in effect until December 31, 2012 ("Term") unless otherwise terminated in accordance with the provisions of Section 24.2 below. 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 sixty (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/or the City of Chula Vista shall 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. 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 of termination of this Agreement, provided that any Quarterly City Reports or other reports, invoices, documents or information required under this Agreement or by the Commission are submitted in accordance with the t=s and conditions of this Agreement. The provisions of this Section 24.4.1 shal1 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 shall stop any Authorized Work in progress and take action as directed by SDG&E to bring the Authorized Work to an orderly conclusion, and the Parties shall work coopemtively to facilitate the termination of operations and any applicable contracts for Authorized Work. 18 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-47 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: SDG&E: The City of Chula Vista San Diego Gas & Electric Company Michael Meacham Julie Ricks 276 Fourth Avenue 8326 Centurv Park Court. CP62E Chula Vista. CA 91910 San Diego. CA 92123-1530 619-409-5870 telephone 858-654-8302 telephone 619-476-5310 facsimile 858-654-0311 facsimile 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 jf 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 lirnits set by that courier for next-day delivery. 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-DISCRIMINATION 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 19 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-48 discrimination and harassment, and shall comply with the provisions of the Fair Employment and Housing Act (Government 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 Government Code Section 12990 (a)-(f), 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. COMMISSION 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. 30. NON-WAIVER None of the provisions of this Agreement shall 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 shall 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 20 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-49 . 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. 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 8, 9, 12, 13, 14, 17, 21,24,34 and 37 of this Agreement. 37. ATTORNEYS'PEES 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 subject matter of this Agreement. 21 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-50 40. 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) 22 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-51 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives. CITY: CITY: APPROVED AS TO FORM THE CITY OF CHULA VISTA ~ : James Sandoval iti : City Manager /' C SDG&E: SAN DIEGO GAS & ELECTRIC COMPANY .~S-~ Name: Hal Snyder Title: Vice President, Customer Solutions APPROVED AS TO FORM VUV\ 3-52 EXHIBIT A 2010-2012 SCOPE OF WORK (See following attached pages) 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 3-53 ~ ~ft... ~ ~~~~ "'".......-~ CITY OF CHULA VISTA 2010-2012 SDG&E LOCAL GOVERNMENT PARTNERSHIP SCOPE OF WORK PROGRAM OVERVIEW a) Program Title: City of Chula Vista/SDG&E Local Government Partnership b) Program Budget (3-Year): $4,088,991 c) Program Term: January I, 2010 through December 31, 2012 d) Main Contact Information: Brendan Reed, Environmental Resource Manager Department of Conservation & Environmental Services 276 Fourth Avenue Chula Vista, CA 91910 619-409-5889 Office 619-476-5310 Fax PROGRAM COMPONENT Municipal Facilities Efficiency Improvements DESCRIPTION The SDG&E/Chula Vista Energy Efficiency Partnership will expand the City's efforts to reduce municipal energy use through facility retrofits and upgrades. Chula Vista owns, leases, and/or operates over 90 buildings and structures totaling approximately 1.4 million square feet. Annually, the City's buildings consume an estimated 12 million kWh and I million therms. In addition, the program will help train municipal facility managers on better energy management practices and will complement Chula Vista's ongoing investments in renewable energy generation. GOALS, OBJECTIVES & DELIVERABLES 1. Develop integrated energy management strategies for major City buildings and facilities 2010-2012 CV/SDG&E Local Government Partoership Final SOW lofl2 3-54 a. Obiective - Coordinate with SDG&E and other third-party entities to complete integrated energy facility audits to identifY energy efficiency, demand response, and distributed generation opportunities. i. Deliverables - Complete integrated facility audits for major municipal sites. b. Obiective - Use the EP A Portfolio Manager to track and benchmark all major municipal buildings and facilities' energy consumption over time. i. Deliverables - Uploading of energy consumption data for major municipal facilities to the EP A Portfolio Manager. 2. Reduce energy consumption at City buildings, facilities, and related infrastructure a. Obiective - Coordinate the installation of energy efficient retrofit projects (such as HVAC, lighting, and VFDs) at City buildings, facilities, and related infrastructure. i. Deliverables - Reduce the City's building energy use by approximately 1,000,000 kWh and 20,000 therms. b. Obiective - Complete an energy-efficient street lighting demonstration project to test the applicability of various lighting technologies for different roadway types. i. Deliverables - Produce a summary report which compares and contrasts the feasibility of using energy-saving lighting fixtures in municipal street lighting operations. c. Objective - Identify and pursue energy efficiency financing options to provide installation capital costs which are not covered under existing incentive programs. i. Deliverables - Secure retrofit project fmancing through California Energy Commission loan or SDG&E "On-Bill Financing" programs (exact value dependent on identified retrofit project list). TARGET AUDIENCE To include: City facility managers and support staff SCHEDULE . Jan-April'IO: . May 'IO-Dec '12 Begin integrated energy audits Identify retrofit projects at municipal facilities Obtain energy efficiency financing for retrofit projects Install energy efficiency retrofits and verify energy savings 2010-2012 CV/SDG&E Local GovemmentPartnership Final SOW 20f12 3-55 BUDGET Program Name: MunicipalFacilities Efficiency Improvements ... . Proeram Budeet . Item .. .. ($) (%). Administrative Costs - - Marketing/Outreach Costs - - IncentivelRebate Costs - - Direct Implementation Costs $432,000 100% Total $432,000 100% PROGRAM COMPONENT EmPower Chula Vista Outreach Program DESCRIPTION The EmPower Chula Vista program is designed to complement San Diego Gas & Electric's residential and commercial energy efficiency programs by providing trained City staff to engage and educate Chula Vista businesses, residents, and contractors about energy-saving opportunities. City staff are able to playa unique role in delivering energy efficiency programs to their community, both because their more proximate relationship with citizens, and because they are able to leverage other municipal services/processes to maximize outreach effectiveness. For the 2010-2012 Energy Efficiency Partnership, the City of Chula Vista will build upon its successful EmPower Chula Vista program - which distributed over 50,000 CFLs, 2,600 water-saving devices, and performed over 2,000 energy evaluations in the community since 2006 - by broadening its targeted audience and its focus on whole-building energy performance retrofits, "plug-loads", and energy consumption behavior. GOALS, OBJECTIVES, & DELIVERABLES 1. Increase the community's awareness and access to energy-saving technologies & promote CPUC/SDG&E's involvement in delivering energy-saving opportunities a. Obiective - Trained City staff will perform free on-site energy evaluations for ChuJa Vista businesses and residents. The evaluations will include a review of past consumption data (using SDG&E's Energy Waves software) and an analysis of energy-saving opportunities (both technological and behavioral). City staff will provide participants with an overview of applicable SDG&E incentive programs and assistance completing incentive and/or On-Bill Financing applications. All referral information generated througb. the evaluations will be electronically sent to SDG&E program managers. 2010-2012 CV/SDG&E Local Government Partnership Final SOW 3 of 12 3-56 1. Deliverables - Energy evaluations oflocal businesses and residences will be completed generating SDG&E program referrals. b. Obiective - As part of the residential and business evaluations, City staff will demonstrate to participants the amount of electricity being drawn by various plug-load devices in their facility by using a Kill A WattTM device. Participants may also receive a power strip with timer to reduce wasteful "vampire" energy. i. Deliverables - Energy-saving power strips will be distributed (limit one per householdlbusiness during three year cycle). Vampire energy can account for more than 8% of a typical home's electricity usage. c. Objective - Program participants will have an option of monitoring their home or business's energy consumption over a two-week period using a real- time energy monitor (powerCost Monitor TM or other similar device). At the conclusion of the two week period, City staff will review with the participants their energy use and applicable behavioral and operational changes to reduce their consumption. 1. Deliverables - Residents and/or businesses will participate in the energy monitoring program. Studies have shown that increased energy awareness and simple consumption changes can deliver a 10% reduction in energy use. d. Obiective - As part of the City's Home Upgrade, Carbon Downgrade program, residents and businesses interested in installing more energy- efficient or renewable energy technologies will be able to take advantage of streamlined contracting, permitting, and/or financing to facilitate retrofits. Special focus will be given to promoting cost-effective, whole-bnilding performance upgrades (instead of single measures). 1. Deliverables - Residents and/or businesses will enroll in the Home Upgrade, Carbon Downgrade program resulting in installed energy- efficiency and demand reduction equipment. 2. Promote the use and proper disposal of energy-efficient lighting a. Obiective - As an incentive for energy assessment program participation, residents and businesses will be offered energy-efficient Compact Fluorescent Lights (CFL) in exchange for traditional models. 1. Deliverables - CFLs will be exchanged for incandescent or other traditional bulb types. b. Obiective - Due to the recent market transformation from older incandescent lighting to energy-efficient Compact Fluorescent Lights (CFL), there is a growing community demand for opportunities to properly dispose of CFLs. City staff will work to establish and promote convenient CFL disposal opportunities for the South Bay community. i. Deliverables - Disposal events will be organized in the South Bay area, while permanent disposal sites will be promoted. 2010-2012 CV/SDG&E Local Government Partnership Final SOW 4 of 12 3-57 c. Obiective - As part of the annual Starlight Parade, residents will be able to exchange up to three incandescent holiday light strands for energy-efficient LED holiday lights. 1. Deliverables - LED holiday lights will be distributed annually during the three-year program cycle. LED lights can save up to 90% in holiday lighting costs and last 100 times longer than incandescent lights. 3. Expand energy-efficiency opportunities in underserved community sectors in which there is a high demand for energy efficiency services and considerable potential for energy savings a. Obiective - Chula Vista is an ethnically diverse city with a large percentage of residents, business owners, and contractors who speak a foreign language as their primary language. To assist the program in successfully engaging these typically underserved sectors, the City will recruit staff members who are fluent in Spanish, Tagalog, Vietnamese, or another locally-spoken language. i. Deliverables - Outreach team will include foreign-speaking staff members who are fluent in the aforementioned languages. All outreach materials will be translated into at least 1 foreign language and used to engage with non-English speaking ratepayers. b. Obiective - In conjunction with the City's Redevelopment Agency and the Office of Economic Development, the program will place a large emphasis on penetrating new community sectors to deliver energy efficiency education, assessments, and SDG&E program referrals. 1. Deliverables - Creation and distribution of customized promotional materials, sector workshops, and multi-department outreach efforts to new sectors which may include mobile homes, corporations, box/department stores, dry cleaners, auto repair, supennarkets, and healthcare offices. c. Obiective - The outreach program's "Peer-to-Peer" efforts will focus on providing technical and policy support to enable smaller South Bay municipalities to pursue energy efficiency regulations, facility retrofit projects and community outreach campaigns by organizing a series of workshops and meetings. The workshops will educate South Bay government employees and officials about all aspects of energy management and provide valuable "lessons learned" from Chula Vista's past experience implementing municipal and community energy efficiency programs. 1. Deliverables - Organize workshops and meetings for South Bay municipal staff and officials. Workshop topics may include energy ordinances/codes, energy efficiency technology, retrofit financing, renewable energy integration, and greenhouse gas emission inventories. 2010-2012 CV/SDG&E Local Government Partnership Final SOW 50[12 3-58 TARGET AUDIENCE To include: South Bay elected officials, city employees, non-English speaking ratepayers, residents and businesses (including mobile homes, corporations, box/department stores, dry cleaners, auto repair, supermarkets, and healthcare offices). In order to successfully implement the outreach program, the City will leverage an array of public marketing and media tools which are unique to local governments: i\lt\RI\.ETING TOOl I"TP4CT City CalendarfWebsite 4.5 million monthly 'hits' City Newsletter 1,100 subscn"bers Direct Mailers 200,000 individuals Business License Rrnewal Process 8,000 licensed businesses Solid WastdRecycling Billing 85,000 households Multi-Departmental Outreach 300,000 individuals (inet National City & Imperial Beach) South Bay Community Events 500,000 attendees Chula Vista Civic Organizations 100 community leaders SCHEDULE . Feb'lO: Recruit & train staff Prepare marketing plans & materials Create tracking database & forms Begin community energy assessments & Home Upgrade, Carbon Downgrade program Begin Peer-To-Peer workshop series Host an LED holiday lighting exchange Continue program implementation . Jan'10: . April '09: . Dee '09: . Jan'10-Dec'11: BUDGET Below is the program's 3-year Partnership budget. In addition to Partnership funds, the program will leverage the City's Energy Efficiency & Conservation Block Grant funds ($900,000), private financing (up to $10 million), and in-kind community and volunteer support. 2010-2012 CY/SDG&E Local Government Partnership Final SOW 6 of12 3-59 . Program Name: EmPower Chula Vista Outreach Program .. .. . Pro2I"amBude:et Item .. ($) . .(%) Administrative CostB $295,701 20% Marketing/Outreach Costs $45,000 4% Incentive/Rebate Costs - - Direct Implementation Costs $1,101,718 76% Total $1,442,419 100% PROGRAMCOMYONENT Sustainable Communities Program DESCRIPTION Building upon the current program, the Chula Vista "Sustainable Communities Program" (SCP) will further City staff's expertise in energy conservation and green building principles, with the goal of infusing sustainable practices into every level of the planning and building process. Staff will promote these principles to customers engaged in the municipal permit and construction approval process through the City's Internet, on the phone, or in person at the Public Services Building. Under the SCP, the Development Services Department will also investigate and update their existing programs, guidelines, and regulations to reflect the advances that have been made in both the green building and energy conservation aspects of community and project-level site planning and to coordinate these activities with new energy-related programs. GOALS, OBJECTIVES & DELIVERABLES 1. Development, adoption, implementation, and modification of programs, policies, and ordinances to increase energy efficiency and sustainability levels over established baseline values. a. Obiective - Dedicate selected staff members to fulfill Local Government Partnership and program goals. Provide funds for a Building Inspector II (full time) and Associate Planner (half time) to develop and maintain expertise in energy efficiency and to initiate energy-saving building and land use measures, respectively. i. Deliverables - New and updated energy conservation and sustainability policies, guidelines, procedures, and ordinances for large-scale new developments, site plans, and new building construction as well as for remodels and additions to existing buildings. 2010-2012 CV/SDG&E Local Government Partnership Final SOW 70f12 3-60 11. Deliverables - Encourage Plan Examiners (3) and the dedicated Building Inspector II (I) to obtain "Certified Energy Plans Examiner" credentials and other relevant certifications. b. Objective - Investigate a voluntary and incentivized program to encourage development to be more energy efficient than new mandatory enhanced standards. 1. Deliverables - Research and present a program feasibility summary that would offer an expedited entitlement approval and permitting process for new development that meets an advanced tiered standard of energy efficiency above the new enhanced mandatory values (15-20% over Title-24) and would be established by code and local ordinance. ii. Deliverables - Research and present a program feasibility summary that would offer an expedited permit process to small additions, remodels, and tenant improvements that are more energy efficient than the 2008 Energy Code. These projects are currently exempt ITom the new "Above Title-24 Energy Efficiency Ordinance", expected to be in place in 2010. 2. Outreach, support, and education of City staff, the public, the development community, and peer groups on new energy efficiency and sustainability measures. a. Obiective - Update and maintain print and website media content to guide staff and the public on the changes to SCP programs and policies. i. Deliverables - Produce revised hardcopy and digital forms, handouts, brochures, process guides, and information links. ii. Deliverables - Update "Sustainability Center" website with new program materials and energy-focused information regularly. iii. Deliverables - Develop articles about SCP activities to be distributed through news and City information outlets. iv. Deliverables - Regular E-Mail distribution list notifications to the development community on topics relating to the program. b. Objective - Provide technical support and education on the changes to the SCP programs and policies. i. Deliverables - Attend and participate in events for sharing "lessons learned", successes, and progress information at venues such as SDG&E Partnership Mixers, City staff meetings, and community events. Distribution of SCP and SDG&E materials at these events. ii. Deliverables - Provide regular in-house trainings to Development Services staff on the SCP program, Title 24, Energy Efficiency and Green Building ordinances. iii. Deliverables - Participate in pre-construction meetings on jobsites to explain and aid compliance with the new Green Building 2010-2012 CVlSDG&E Local Government Partnership Final SOW 8 of 12 3-61 Standards, Energy Code, and Energy Efficiency ordinances developed. Number of meetings and follow-ups will be dependent on a development project's scope of work and the needs of the applicant or contractor. IV. Deliverables - Staffing of "SustainabiIity Desk" with a Building Inspector II who will be on-call during public counter hours to answer questions, calls, and emails relating to the SCP and Title 24. Inspector will also provide research, guidance, and assistance with plan check of energy efficiency and green building practices at the Development Services counter. v. Deliverables - Maintain current informational materials, brochures, and handouts at the" Sustainability Desk". 3. Increase compliance and enforcement of new "reach" energy efficiency and sustainability codes which were recently adopted by the Chula Vista City Council. a. Obiective - Building Inspector II to provide verification that all mandatory enhanced energy efficiency and green building requirements are being properly met. i. Deliverables - Perform field audits on all types of construction projects to confirm compliance with the enhanced energy efficiency requirements and to ensure proper installation and inspection procedures were performed. ii. Deliverables - Regularly review plans and documentation with the developers, contractors, owner builders, and Development Services staff. TARGET AUDIENCE To include: Building and Planning Department staff, Builders, Developers, Residents, businesses SCHEDULE . Jan-Mar 2010 Adoption of new enhanced energy efficiency codes Enforcement of new Title 24 2008 code . April 201 0 - Dec 2012 Implementation of SCP goals and deliverables 2010-2012 CV/SDG&E Local Government Partnership Final SOW 9 of12 3-62 BUDGET Program Name: . Susciihable C6mmuIlities Program . .... . .. ... . . .. Pr02J'am Bud!!.t Item .. .. . ($) (%) Administrative Costs $ 156,440 15% Marketing/Outreach Costs $73,631 7% IncentivelRebate Costs - - Direct Implementation Costs $777,930 78% Total Sl,008,000 100% PROGRAM COMPONENT Energy-Efficient Economic Development Initiative DESCRIPTION Through the current partnership with SDG&E, the City has begun to demonstrate how energy-efficient and renewable energy technologies and energy conservation (EERE & EC) can be cost-effectively integrated into large-scale development projects to reduce energy consumption and greenhouse gas emissions. The proposed program will expand upon and leverage this work through additional research, demonstration, and techoical assistance initiatives that will enable developers and builders to design and construct high-efficiency and zero-net-energy projects at greenfield, grayfield, and brownfield sites throughout the City. Further, the program will support a full-time Subject Matter Expert (SME) to generate and manage these initiatives and to assist the Economic Development Division and Planning Division attract businesses and development projects that will enhance the City's energy-efficiency and emission reduction goals. GOALS, OBJECTIVES & DELIVERABLES 1. Generate New Knowledge & Methods & Strengthen Utility Efficiency Programs a. Objective - 5MB will plan, resource, and manage feasibility studies/projects to determine the cost-effective combinations of EERE&EC technologies and urban design features that deliver maximum energy efficiency and emission reduction gains in representative residential, commercial, industrial, institutional, and mixed-use projects in Chula Vista. The City and the SME will work closely with SDG&E to ensure that these initiatives enhance the Savings by Design, Sustainable Communities, Emerging Technologies, and the Express Efficiency programs to produce greater energy savings and emission reductions. I. Deliverables - Translation of the research into practical resource guides for the development trades including recommended program enhancements for some of the SDG&E programs mentioned above Q!: other general enhancement recommendations. 2010-2012 CV/SDG&E Local Government Partnership Fioa1 SOW 100f12 3-63 2. Demonstrate Value of EERE&EC Development Projects a. Obiective - SME will collaborate with development and building industry partners to demonstrate model EERE&EC technology applications in representative development projects across the City. SME will seek additional State agency (California Energy Commission) support to conduct performance verification projects to demonstrate actual performance benefits of selected technology applications. I. Deliverables - Technology demonstration projects and case stodies of successful EERE&EC development projects including a compelling business case for the development industry. Note: Demonstration projects dependent on SDG&E participation. 3. Retain & Expand Allied Businesses, Institutions & Development Projects a. Obiective - SME will assist the Economic Development Office in communicating to existing businesses, and to those relocating to the City, the "business case" for EERE&EC technologies and their value in lowering operating costs. SME will participate in the planning and design of the City's new Eco-Industrial/Business Park and will assist the Economic Development Office in recruiting new businesses specializing in clean energy technologies, products and services. SME will assist in recruiting clean energy technology research and development organizations to the University Park and Research Center. SME will assist the Planning Division in incorporating related resources into their programs. The City and the SME will work with the aforementioned SDG&E programs to ensure that new business recruitment/development projects produce energy savings and emissions reductions. I. Deliverables - Targeted business/development project recruitment initiatives. These initiatives will assist SDG&E in meeting their obligations under the Global Warming Solutions Act of 2006 (AB 32) and the requirements of SB 1368. TARGET AUDIENCES To include: clean technology companies, universities and related research institutes, the hospitality industry, and the real estate development co=unity. SCHEDULE . Jan-May'10: . June-Dec'10: . Jan'II-Dec'12: Define the role of the SME & recruit the individual Refine the SME role & develop detailed program plans Implement the program 2010-2012 CV/SDG&E Local GovernmentPartnersbip Final SOW 11 of 12 3-64 BUDGET Program Name: Energy-Efficient Community Development Initiative . '.' '. . Pro!!l"am Bnd2et Item . .' '.' ($) (%) Administrative Costs $15,000 2% Marketing/Outreach Costs $60,000 7% Incentive/Rebate Costs - - Direct Implementation Costs $729,000 91% Total $804,000 100% PROGRAM COMPONENT Partnership Management & Administration DESCRIPTION The citywide Partnership program is coordinated and administered by a central staff member to improve efficiency, effectiveness, and communication between all parties. The staff member also serves as a direct contact for SDG&E program managers. BUDGET Program Name: Partnership Management & Administration .., . .... .... .' '. . . .... Pro!!l"am Budiet . Itern. '. ($) .(%) Administrative Costs $402,572 100% Marketing/Outreach Costs - - Incentive/Rebate Costs - - Direct Implementation Costs - - Total $402,572 100% 2010-2012 CV/SDG&E Local Government Partnership Fioal SOW 12 of 12 3-65 EXHIBIT B EM&V PLAN EM&V Plan will be issued at a later date in 2010 by the California Public Utilities Commission and will be attached at that time. ] 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 3-66 EXHIBIT C REPORTINGING REQUIREMENTS (As Applicable) 1. Reporting 1.1 Chula Vista 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 incurred in Unified Chula Vista accounting periods related to its respective Authorized Work obligations, for purposes of preparing the Monthly, Quarterly and Annual Reporting. 1.2 SDG&E shall provide Chula Vista in accordance with the provisions of Section 25 of the Agreen-en!, or otherwise make available to Chula Vista on SDG&E's website, a copy of the filed Monthly Reporting within five (5) Business Days after filing. 2. Monthly Reporting 2.1 Program Data - A spreadsheet table or tables listing which includes the followhg information: Program Costs. (eDs! reported cumulative-fa-date (also referred to as inception-fa-date)) a. Program identification number as provided by the Program Administrator b. Program name C. Total cumulative program authorized budget as adopted by the Comnission d. Total cumulative program operating budget which includes any midcourse budget modifications (e.g., fund shifts) e. Total cumulative program expenditures f. Total program expenditures for the report month g. Total cumulative commitments (limited to incenthe commitments) Program Impacts (cost reporled cumulative-Io-dale (also referred to as inception-to-dale)) a. Total cumulative net kW, kWh, and Therrn 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 Therrn savings 2.2 Program ChangesINew Program Information If applicable, the following 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 operating budgets increased during the report month c. Identification of program terminated during the report month 3. Quarterly Report 3.1 Portfolio Benefit/Cost Metrics (Cumulative to Date a. Total cost to billpayers (TRC, administrative cost and incremental cost per the Standard Practice Manual) b. Total savings to billpayers (TRe) c. Net benefits to billpayers (TRe) d. TRC Ratio e. PAC Ratio f. Cost per kWh saved (centsIkWh) (PAC) g. Cost per therrn savings ($/therrn) (pAC) 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM AGREEMENT 3-67 3.2 Measure List -A spreadsheet table for each program or program element containing each measure inBtalled, 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 aminimum: a. Name of Measure or Service Rendered b. Measure or Service Description c. DEER Measure ill (where applicable) d. DEER Run ill (where applicable) e. Unit Definition f. Unit gross kWh savings g. Unit gross TheI1115 savings h. Unit gross kW demand reduction i. Incremental Measure Cost j. Net to Gross Ratio k. Effective Useful Life I. 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 lnitiativ~ ifapplicabJe (Cumulative resutts) a. Estimate of expenditures on program activities that contribute towards GBI goals (including both public and non-public commercial participants) b. Net cumulative achieved kW, kWh and TheIlll savings contributing 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 activiti.. supporting the Green Building Initiative f. /terns b, c and e above disaggregated by: i. 2-digit NAICS code ll. 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 c. Direct Implementation activities d. Chula Vista's assessment of program perfoIlllance and program status (is the program on target, exceeding expectations, or falling short of expectations, etc.) 27 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-68 e. For non-resource programs and program elements (programs or program elements that are not claiming direct energy impacts), a discussion of the status of program achievements. f. Discussion of changes in program emphasis (new program elemerts, Jess or more emphasis on a particular delivery strategy, program elements discontinued, measure discontinued, etc.) g. Discussion of near term plans for program over the coming months (e.g., marketing and outreach efforts that are expected to significantly increase program participation, etc.) h. Changes to staffrog 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 I. Program Theory and Logic Model if not aJready provided in the program's implementation plan, or if revisions have been made. 3.6 Utility Quarterly Reports - SDG&E shan provide Chula Vista a copy of the filed Quarterly Report within two (2) Business Days after filing with theCommission in accordance with the provisions of the Agreement 4. Annual Reports The format and content of the annuaJ report is expected to be deveJoped by the CPUC in fall. (to be verified) The Program Jmplementer will be required to fulfill these repcrting obligations for their program. 5. Reporting Terminology Definitions 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 Expendltures- 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.) Invoice Month - Invoicing months shall be defined as the calendar month represented in largest part in the Unified Chula Vista's official accounting period schedule (Exhibit F). Data is available 15 days following the end dateofthe accounting period. Invoices shall be prepared within 10 working days of the availability of Auditor expense reports. Report Month - The month for which a particular monthly report is providing data and information. For example, the report monfu for a report covering the month ofJuly 2010, but prepared and delivered later than July 2010, would be July 20 I O. Program Strategy - The method deployed by a 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 install approach is not a single program element) 6. Measure Classification Measure End-Use Classification Each energy efficiency measure reported should be classified into one of the following end-use categories 28 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-69 Residential End Uses Detailed End Use Clothes Dryer Clothes Washer Consumer Electronics Cooking Dishwasher Other Appliance Building Shell Space Cooling Space Heating Interior Lighting Exterior Lighting Pool Pump Freezers Refrigeration Water Heating Other (User Entered Text String Description) Nonresidential End Uses Detailed End Use Building Shell Space Cooling Space Heating Ventilation Day lighting Interior Lighting Exterior Lighting Office Equipment Compressed Air Cooking Food Processing Motors Process Cooling Process Heat Process Steam Pumps Refrigeration Other (User Entered Text 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 Measure MarJ{et SectorlMarket Segment Classification Where reports require market sector or market segment classification, the folewing classification scheme should be used. Market Sector Residential Single Family Multi Family Mobile Homes Market Segment NA NA NA NA 29 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-70 Nonresidential Commercial Industrial Agricultural Unknown NAICS CODE (greater than 2 digit not required) NAICS 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 Jisted 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. Ifthere 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. Cost Catenories Allowable Costs Administrative Cost Category Manaaerial and Clerical Labor IOU Labor - Clerical IOU labor - Program Desion IOU labor - Proaram Develooment IOU Labor - Proaram Plannina IOU labor - proaramlProiect Manaoement IOU labor - Staff Manaoement IOU labor - Staff SUDervision Subcontractor labor - Clerical Subcontractor labor - ProD ram Desian Subcontractor labor - Prooram Develooment Subcontractor Labor - Prooram Plannino Subcontractor labor - PronramlProiect Manaoement Subcontractor Labor - Staff Manaaement Subcontractor Labor - Staff Supervision Human Resource SUDDOrt and DeveloDment IOU labor - Human Resources IOU labor - Staff Develooment and Trainino IOU Benefits - Administrative labor IOU Benefits - Direct Imolementation labor IOU Benefits - MarketinoJAdvertisino/Outreach Labor IOU Pavroll Tax - Administrative labor IOU Pavroll Tax - Administrative labor IOU Pavroll Tax - Administrative labor IOU Pension - Administrative Labor IOU Pension - Direct Implementation Labor IOU Pension - Marketinn/Advertisina/Outreach Labor Subcontractor labor- Human Resources Subcontractor labor - Staff Develooment and Trainino Subcontractor Benefits - Administrative Labor Subcontractor Benefits - Direct Imolementation labor Subcontractor Benefits - MarketinalAdvertisino/Outreach labor Subcontractor Pavroll Tax - Administrative labor Subcontractor Pavroll Tax - Direct Imolementation labor 30 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-71 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 Allowable Cost elements, the program administrator should be contacted in order for the administrator to seek annroval from the CPUC. Cost Cateaories Allowable Costs Subcontractor Pavroll Tax - MarketinatAdvertisinQIOutreach Labor Subcontractor Pension - Administrative Labor Subcontractor Pension - Direct Imolementation Labor Subcontractor Pension - MarketinQ/AdvertisinQIOutreach Labor Travel and Conference Fees IOU Conference Fees IOU Labor - Conference Attendance IOU Travel - Airfare IOU Travel - LodQinQ IOU Travel - Meals IOU Travel - Mileage 10 U Travel - ParkinQ IOU Travel- Per Diem for Misc. Expenses Subcontractor - Conference Fees Subcontractor Labor - Conference Attendance Subcontractor - Travel - Airfare Subcontractor - Travel - LodQina Subcontractor - Travel - Meals Subcontractor - Travel - MileaQe Subcontractor - Travel - Par1<inQ Subcontractor - Travel - Per Diem for Misc. Exoenses Overhead (General and Administratlvel - labor and Materials IOU Eauipment Communications IOU Eauipment ComputinQ IOU Eauipment Document ReDroduction IOU Equipment General Office IOU Eauipment Transportation IOU Food Service IOU Office Supplies IOU PostaQe IOU Labor - Accountina Support IOU Labor - Accounts Pavable IOU Labor - Accounts Receivable IOU Labor - Administrative IOU Labor - Facilities Maintenance IOU Labor - Materials Manaaement IOU Labor - Procurement IOU Labor - Shoo Services IOU Labor - Transportation Services IOU Labor - Automated Systems IOU Labor - Communications IOU Labor - Information TechnoloQv IOU Labor - Telecommunications 31 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-72 Anowable 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 fmancial commitments are to be categorized as commitments. If the rq>orting 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 approval from the CPUC. Cost Categories Allowable Costs Subcontractor Equipment Communications Subcontractor Eauipment Computina Subcontractor Equipment Document Reproduction Subcontractor Equipment General Office Subcontractor Equipment Transportation Subcontractor Food Service Subcontractor Office Supplies Subcontractor Postage Subcontractor Labor - Accountino Support Subcontractor Labor - Accounts Payable Subcontractor Labor - Accounts Receivable Subcontractor Labor - Facilities Maintenance Subcontractor Labor - Materials Manaoement Subcontractor Labor - Procurement Subcontractor Labor - Shop Services Subcontractor Labor - Administrative -~ Subcontractor Labor - Transportation Services Subcontractor Labor - Automated Systems Subcontractor Labor - Communications Subcontractor Labor - Information Technoloov Subcontractor Labor - Telecommunications Marketina/Advertisina/Outreach Cost Category IOU - Advertisements I Media Promotions IOU - Bill Inserts IOU - Brochures IOU - Dear Hanoers IOU - Print Advertisements IOU - Radio Spots IOU - Television Spots IOU - Website Development IOU Labor - Marketino IOU Labor - Media Production IOU Labor - Business Outreach IOU Labor - Customer Outreach IOU Labor - Customer Relations Subcontractor - Bill Inserts Subcontractor - Brochures Subcontractor - Door Hanoers Subcontractor - Print Advertisements Subcontractor - Radio Spots Subcontractor - Television Spots I Subcontractor - Website Development Subcontractor Labor - Marketing 32 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-73 Allowable Costs Table The cost items listed on the Allowable Costs sheet are the on1y costs that can be claimed for ratepayer-funded energy efficiency work. The costs reported should be only for costs actually expended. Any fmancial commitments are to be categorized as commitments. If the r<porting 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 aporoval from the CPUC. Cost Cateoories Allowable Costs Subcontractor Labor - Media Production Subcontractor Labor - Business Outreach Subcontractor Labor - Customer Outreach Subcontractor Labor - Customer Relations Direct Implementation Cost Category Financial Incentives to Customers Actlvltv - Direct Labor IOU Labor - Curriculum Develooment IOU Labor - Customer Education and Trainino IOU Labor - Customer Eauipment Testina and Diaanostics IOU Labor - Facilities Audits Subcontractor Labor - Facilities Audits Subcontractor Labor - Curriculum Develooment Subcontractar Labor - Customer Education and TraininQ Subcontractor Labor - Customer Equipment Testing and Diaanostics Installation and Service - Labor IOU Labor - Customer Eauipment Repair and Servicina IOU Labor - Measure Installation Subcontractor Labor - Customer Equipment Repair and Servicina Subcontractar Labor - Customer Equipment Repair and Servicino Direct Implementation Hardware and Materials IOU Audit Aoolications and Forms IOU Direct Implementation Literature IOU Education Materials IOU Enerav Measurement Tools IOU Installation Hardware Subcontractor - Direct Implementation Literature Subcontractor - Education Materials Subcontractor - Ener~:!V Measurement Tools Subcontractor - Installation Hardware Subcontractor -Audit Aoolications and Forms Rebate Processina and Inspection - Labor and Materials IOU Labor - Field Verification IOU Labor - Site Inspections IOU Labor - Rebate ProcessinQ IOU Rebate Applications Subcontractor Labor - Field Verification Subcontractor Labor - Rebate Processina Subcontractor - Rebate Applications 33 2010-2012 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION PARTNERSHIP AGREEMENT 3-74 ATTACHMENT C 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 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 afftliates, whether or not prepared in connection with the Transaction, which may include, without limitation, Confidential Customer Information (as defmed 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, excludinl!: 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 fust 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 or 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 -1- 3-75 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. 3. COURT OR ADMINISTRATIVE ORDER Notwithstanding the provisions of Article 2 above, Other Party and its Representatives may disclose any of the Confidential Information 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; provided, however, that Other Party and its Representatives may disclose the information described in clauses (i) and (ii) 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, instruments, 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. SURVIVAL -2- 3-76 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 such Confidential Information, except that the terms of this Agreement shall remain in full force and effect with respect to Confidential Customer Information in perpetuity. 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 of a 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. -3- 3-77 13. ATTORNEYS' 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 tenns 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. 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; (ii) 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: If to SDG&E: San Diego Gas & Electric Company 8306 Century Park Court, CP42D San Diego, CA 92123-1530 Facsimile: (858) 654-0311 Attn: Julie Ricks -4- 3-78 With a copy to: Sempra Energy 101 Ash Street San Diego, CA 92101 Facsimile: (619) 696-4670 Attn: General Counsel If Other Party: City of Chula 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. SAVINGS 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. 10 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 completeness of the Confidentiallnformation disclosed under this agreement, and neither SDG&E nor any of SDG&E's representatives, agents, officers, directors. employees, stockholders, owners, affiliates or advisors will have any liability to Other Party or any other person resulting from the use of the Confidentiallnformation. Only those representations or warranties that are made to Other Party in the Partnership Agreement, if any, when and as executed, and subject to such limitations and restrictions as may be specified in the Partnership Agreement, will have any legal effect. (Signature page follows) -5- 3-79 . IN WITNESS WHEREOF, the parties have executed this Agreement as of the date last written below. ::""'~ Aavid . Garcia Name: , Approved as to legal form Title: Citv Manager Date: '~l::J..~ol ~~-~~~ Ann Moore ~ City Attorney SAN DIEGO GAS & ELECTRIC COMPANY ~ ----'~~ "- Name: etrdllf effIt!I~t f?~;e~/.I/p Approved as to legal form ,-, . j, . /I1/J7V~b'7Z Title: ~I'- -4. St"4SA1uJ see..- 'G (IS/Or ~~r (Attorney's initials) Date: -6- 3-80 COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (I) WAIVING THE CITY'S FORMAL BIDDING PROCESS INVOLVING SELECTION OF A CONSULTANT TO IMPLEMENT SDG&E/CHULA VISTA LOCAL GOVERNMENT PARTNERSHIP PROGRAM'S ENERGY-EFFICIENT ECONOMIC DEVELOPMENT INITIATIVE; (2) APPROVING AN AGREEMENT WITH DOUGLAS R. NEWMAN IN THE AMOUNT OF SIXTY FIVE THOUSAND DOLLARS ($65,000) TO ASSIST THE CITY IN THE IMPLEMENT A TION OF SDG&E/CHULA VISTA LOCAL GOVERNMENT PARTNERSHIP PROGRAM'S ENERGY-EFFICIENT ECONOMIC DEVELOPMENT INTIATIVE; AND (3) AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND RELATED DOCUMENTS WHEREAS, since 2006 the City of Chula Vista and SDG&E, under the auspices of the California Public Utilities Commission, have been collaborating in the implementation of a Local Government Partnership Program CSDG&E/Chula Vista LGPP") to support energy efficiency services to local residents, businesses and city operations that reduce the amount of electricity and natural gas consumed and lower monthly utility costs; and WHEREAS, over the last three years, the SDG&E/Chula Vista LGPP has matured into a comprehensive and effective program which has been recognized statewide as a model for successful collaboration; and WHEREAS, SDG&E/Chula Vista LGPP's accomplishments include the creation of energy resources guides for local and state government agencies and private development companies across the state and the facilitation of the design and construction of the LEED-platinum Los Vecinos Affordable Housing project; and WHEREAS, the SDG&E/Chula Vista LGPP will continue through December 2012 and provide $1,362,997 per calendar year in funding; and WHEREAS, the SDG&E/Chula Vista LGPP contains funding for the Energy-Efficient Economic Development Initiative, which includes planning, demonstrations, and research: and WHEREAS, the proposed Agreement, attached to the staff report as Attachment I, involves work to be performed in connection with the SDG&E/Chula Vista LGPP and the Energy- Efficient Economic Development Initiative; and 3-81 WHEREAS, Mr. Douglas Newman ("Consultant") is the Director of the National Energy Center for Sustainable Communities, a collaboration between the City ofChula Vista, SDSU and the Gas Technology Institute, that is advancing energy-efficient community development in California; and WHEREAS, Consultant holds Masters Degrees in urban and regional planning and public policy and administration 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 the proposed Energy-Efficient Economic Development Initiative; and WHEREAS, Consultant has successfully designed and managed three previous projects on related subjects for the SDG&E/Chula Vista LGPP, gaining valuable insight and experience in collaborating with the City of Chula Vista and SDG&E; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. WHEREAS, as stated in the above recitals, Consultant has a unique knowledge of the City of Chula Vista and the work to be performed by under the proposed Agreement and is found to be the sole person to perform the scope-of-work for the proposed SDG&E/Chula Vista LGPP Energy-Efficient Economic Development Initiative. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City ofChula Vista as follows: I. The City's consultant selection process outlined in Chula Vista Municipal Code Section 2.56.110 is waived; and 2. The Agreement between the City of Chula Vista and Douglas R. Newman in the amount of Sixty Five Thousand Dollars ($65,000) to implement the SDG&E/Chula Vista LGPP Energy-Efficient Economic Development Initiative is approved; and 3. The City Manager or his designee is authorized to execute all documents necessary to implement the SDG&E/Chula Vista LGPP Energy-Efficient Economic Development Initiative. Presented by Approved as to form by Gary Halbert, AICP, PE Deputy City Manager/Director of Development Services ~4 Bart C. Miesfeld City Attorney 3-82