HomeMy WebLinkAboutStaff Report 354-06TO:
FROM:
DATE:
SUBJECT:
City
HONORABLE CITY COUNCIL
CITY MANAGER
SEPTEMBER 11, 2006
City of Palo Alto
Report
DEPARTMENT: UTILITIES
CMR:354:06
APPROVAL OF CONTRACT WITH ECOLOGY ACTION INC. IN THE
AMOUNT OF $ 250,000 TO PROCEED WITH A SMALL COMMERCIAL
ENERGY EFFICIENCY PROGRAM
RECOMMENDATION
Staff recommends that Council:
o
Approve and authorize the City Manager or designee to execute the attached contract
with Ecology Action for a turn-key Small Commercial Energy Efficiency Program in
an amount not to exceed $250,000 over a three year term.
Authorize the City Manager or designee to exercise the option to renew the contact
for the second and/or third year provided the contractor is responsive to the City’s
needs and the quality of the contractor’s work is acceptable during the first year of the
contract.
BACKGROUND
In 1997, California State AB1890 was passed requiring municipal utilities to collect an electric
charge to fund public benefit programs. The funding level established for Palo Alto is
approximately 2.85% of electric revenue annually. AB1890 established that funds be expended
in any one or more of four program categories:
Demand-side management programs
New investment in renewable energy resources
Research, development and demonstration programs
Low income services.
To comply with AB1890, the City Council approved an initial public benefit package with
funding allocations as part of the budget process for 1998-99 (CMR:237:98). The program
allocation served as a guideline and was expressed by a range, which in sum cannot exceed $1.77
million cap. The cap allocation for a given program may be exceeded, with a corresponding
reduction in another program if, for example, customer demand is high for a particular program.
CMR:354:06 Page 1 of 4
The components and details of public benefit programs will continuously evolve through an
iterative process involving the residents and businesses of Palo Alto, staff, Council and the UAC.
DISCUSSION
Although City of Palo Alto Utilities (CPAU) has a long history of offering incentive programs to
Palo Alt0 customers, there has been low participation from small commercial customers due to
lack of adequate financial resources and insufficient staff time to design, implement and manage
a specialized program that meets the needs of a small commercial customer. In order to be able
to provide high quality, high value services to small commercial customers, CPAU Utilities
Marketing Services (UMS) recommends securing the services of Ecology Action Inc. to
provide a full service, "turn-key" energy efficiency installation and service program with
delivered verified energy savings for low cost to both CPAU and to customers.
This recommendation for a full scale program is based upon the highly successful pilot project
CPAU ran between June 1, 2005 and February 1, 2006. The 2005 "Palo Alto Right Lights
Program" substantially over-delivered on program targets as well as demonstrated a low retrofit
cost per customer. Staff set a target goal to serve 32 customers with an energy reduction of 64
kW or 320,000 kWh. Ecology Action was able to audit 45 sites, reaching an impressive 141% of
goal. Accordingly it also was able to get 79 kW energy reductions or 405,279 kWh. Not only
was "Right Lights" a cost-effective program to run, it also eliminated 445,807 lbs. of C02 from
being discharged into the environment. Since the start of this program, Ecology Action has been
able to deliver verifiable energy savings tO the hard-to-reach small commercial customer class.
See appendix A for complete pilot program details.
The primary goal for the Small Commercial Energy Efficiency Program is to improve customer
satisfaction by achieving a high participation rate, measured as percentage of customers
participating in the lighting retrofit. The ideal customer class is businesses with 1 to 9 employees
and under 10 kW in demand. The turn-key program will help business customers reduce energy
use and lower annual energy costs in their business through a variety of project services and
installations, such as:
Energy efficient lighting: Fluorescent fixture conversion, compact fluorescent lamps
(CFL), high intensity discharge (HID) replacement of incandescent lamps, and light
emitting diode (LED) upgrades of exit signs.
Performance-based operation and maintenance system improvements and verification to
increase operational efficiency for rooftop "packaged" heating, cooling, and ventilating
systems sized between 5 and 20 tons. The contractor will check and replace belts, clean
condenser and evaporator coils, tighten cover panels, provide a new filter, economizer
lubrication/check/cleaning, check and properly charge the refrigerant, install locking
Schrader valve caps, assess airflow performance, and check/reprogram existing
thermostats.
CMR:354:06 Page 2 of 4
Programmable thermostats replacement.
Anti-sweat heater controls for refrigeration doors, primarily in convenience stores and
flower shops.
Occupancy sensors, wall box lighting sensors, wall or ceiling mounted lighting, plug
load sensors, lighting time clocks.
A unique feature of this program is the measure to assure air conditioning performance and to
capture operations and maintenance savings. Most rebate programs focus on equipment
replacement using stated manufacturer energy efficiency ratios as a standard of assuring the best
units are installed. However, ongoing research by E Source, Northwest Energy Alliance, and
Portland Energy Conservation, Inc., all indicate that stated manufacturer ratios are not yielding
the expected energy savings and that a focus on assessing HVAC installed performance may be a
better approach to capturing energy and demand savings. Federal Energy Management Program
(FEMP) indicates potential savings of between 5% and 20% of energy bills through
implementation of low and no-cost operation and maintenance schedule which targets energy
efficiency.
Program services targeted to the heating, ventilation, and air conditioning systems under this
contract would be offered to customers during the initial site visit for lighting and efficiency
assessment. Customers would be provided with marketing material describing the operations
and maintenance program and its benefits. The contractor would then manage and coordinate all
aspects of scheduling with customers and the City’s project manager. Each participant will be
provided with a report from the contractor of findings, operations and maintenance measures
performed, and anticipated energy and dollar savings.
The selected provider will perform and deliver a follow-up survey of solicited participants with
analysis through on-site surveys and participant surveys. Quarterly and final reports detailing
work described above will be provided.
Summary of Bid Process
Bid Name/Number RFP 116342 Name/Number of Bid here 4
Proposed Length of Project 36 months
Number of Bids Mailed to 6
Contractors
Total Days to Respond to Bid 21
Pre-Bid Meeting?Yes
Number of Company Attendeesat 5
Pre-Bid Meeting
Number of Bids Received:4*
*Bid summary provided in Attachment B.
An evaluation consisting of three Utilities staff members review the proposals. A total of five
companies were invited to bid on this project. One company chose not to respond due to high
CMR:354:06 Page 3 of 4
workload. All contactors were invited to a pre bid meeting to gain a better understanding of the
project goals and targets on March 14, 2006. The committee carefully reviewed the firm’s
qualifications and submittal in response to the criteria identified in the RFP. The committee
evaluated the proposals on four main criteria consisting of: consultant’s strengths and
qualifications, program management expertise, program cost effectiveness, and successful
completion of similar projects with CPAU. Please see Attachment B for detail criteria of each
category.
Ecology Action Inc. (EAI) was selected based on its expertise with the small commercial energy
efficiency programs. EAI has audited and installed energy efficiency measures for small
commercials customers for the past 10 years in communities that surround Palo Alto. EAI has
done similar work for Pacific Gas& Electric (PG&E) and was awarded a 10.25 million contact
for its Energy Partners Program to serve small businesses in San Mateo, Santa Clara, Santa Cruz,
Monterey and San Benito counties through 2008. EAI has also completed a successful pilot
program with CPAU.
RESOURCE IMPACT
Staff has determined that sufficient budgeted funds do exist to allow for the implementation of
this program for FY 2006-07.
POLICY IMPLICATIONS
This recommendation is consistent with the Council-approved Utilities Strategic Plan Objective
#1, Enhance customer satisfaction and utility infrastructure. It also supports Key Strategy No. 6:
Provide targeted customer and environmental programs and services. Strategy No. 7: Implement
programs that improve the quality of the environment.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act (CEQA).
ATTACHMENTS
A: Appendix A - 2005 Palo Alto Rights Program: Impacts and Results
B: Bid Summary
C: Certificate of Non-Discrimination
D: Contract
~/~)~t~ ~PREPARED BY:
BRIAN WARD
Utility Account Representative
DEPARTMENT HEAD:
CARL YEATS
Director
CITY MANAGER APPROVAL:
Assistant City Manager
CMR:354:06 Page 4 of 4
Appendix A
The 2005 Palo Alto RightLights Program: Impacts and Results
Ecology Action achieved great success in customizing and delivering RightLights for
CPAU in 2005. Beginning in March 2005 with an $80,000 one-year contract, Palo Alto
RightLights was completed in January 2006, with the exception of $3,676 in unspent
funds. Ecology Action subsequently received clearance to spend the remaining funds
on additional retrofits (~50% to incentives and 50% to labor) in order to achieve greater
energy savings. Final installation activities were completed in the May 2006 reporting
period, and the final impacts and results listed in this report are inclusive of all activities
since Program inception. ~
Customer Eligibility. Palo Alto RightLights ensured that all participants were CPAU
customers. This was accomplished by 1) ascertaining that the customers’ zip codes
comported with those of CPAU’s service territory, and 2) obtaining CPAU customer
and/or meter numbers for each participant. In addition, Palo Alto RightLights staff
ensured that only customers meeting other CPAU eligibility requirements (i.e., approved
rate schedule) were allowed to participate.
Deliverables vs. Goals. Palo Alto RightLights substantially overdelivered on all
Program deliverables while remaining within budget.
ICustomers 32 141%
kW 64.0 79.1 124%
kWh 320,000 405,279 127%
Cost Effectiveness. RightLights’ cost per delivered kW is among the most competitive
among turn-key lighting programs in the state. The 2005 Palo Alto RightLights Program
achieved the following cost effectiveness performance:
Program $/kW $1,012
Program S/kWh $0.20
Incentive $/kW $ 431
Incentive S/kWh $ 0.08
Customer Impacts. The 2005 Palo Alto RightLights Program achievements
demonstrate a very low retrofit cost per customer as shown below. Even after eliminating
"QSP only" jobs, out-of-pocket costs averaged under $100. Overall, customer out-of-
pocket expenses averaged just $52. We note that some "QSP-only" jobs are in fact
comprehensive, i.e., businesses with no linear fluorescents which are so small that the
QSP lamps replaced virtually all the pre-existing incandescent lighting.
45 29 16
Total
Average
$35,861
$797
$33,510
$745
$2,351
$52
93%$36,702
93%$816
Total
Average
$35,452
$1,222
$32,967 $2,485 93%$33,034
$1,137 $86 93%$1,139
kW 1.8 2.5
kWh 9,006 12,902
Job Size $797 $1,222
Rebate $688 $1,137
%Rebate 93%93%
Annual Utility
Savings $ 816 $ 1,139
Payback ~1 month ~1 month
Had to Reach 100%100%
Capturing Hard-to-Reach Customers. Since its inception the RightLights program has
demonstrated an unparalleled ability to deliver energy savings to the hard-to-reach
(HTR) small business market. Palo Alto RightLights HTR impacts within CPAU territory
(45 customers) are as follows:
Language 9%
Ownership 100%
Size (VS)96%
Total HTR 100%
Language: Primary language spoken is other than English.
Ownership: With 100% of Palo Alto RightLights customers
leasing their space, the Program has effectively shattered
the split incentive barrier.
Size: This number represents businesses with 1-9
employees (CPUC Very Small category. If those with 10 or
more workers and under 100 kW in demand (CPUC Small category) were added it
would bring ,the total to ~99%.
Environmental Impacts. In addition to the Program’s energy savings, the following
environmental benefits were delivered to CPAU ratepayers by Palo Alto RightLights in 2005:
Palo Alto RightLights 2005: Greenhouse Gas & Pollutant Emissions Impacts
Carbon Dioxide (CO2)
Nitrogen Oxides (NOx)
Carbon Monoxide (CO)
Sulfur Dioxide (SO2)
Respirable Particulate Matter (PM10)
Nitrous Oxide (N20)
Volatile Organic Compounds (VOC)
Methane (CH4)
Sulfur Oxides (SOX)
1.10
0.000842353
0.00056047
0.000540321
0.00051
7.35E-05
6.33E-05
5.57E-05
2.00E-05
445,807
341
227
219
206
30
26
23
8
Mulitply the emission factor by kWh reduced to find pounds of pollutants avoided.
CO2 Emission Factor based on California Energy Commission 9/03 published data, PG&E area.
Other Emission Factors: Tellus Institute data based on AEO2001 reference case NEMS model for 2003,
NERC CNNV subregion power grid emissions (polluting and non-polluting sources), EPA
National Air Quality and Emissions Trends Report, Intergovemmental Panel on Climate Change.
NOTE: All above based on typical CA generation (mainly natural gas, some hydro, wind, etc.).
Impacts would be much higher for US regions that burn a lot of coal for power.
405,279 0.00757 3,066
diversionbasedonSERANEBsstudy, Quantec’sRightLightsEvaluation, 2005.
39
61
69 Homes ~owered per year **
* Based on C02 Reduction
** Based on kWh saved
1.10 I Ibs. 002 per kWh per CEC, 9/03 PG&E simulation run
X
X
X
x
x ~o
0 0 0
o
o LL
o X o o
u~X o ~
cO X ’,-" ~
.___ ~ >, u ~om :a..go ~’~
u~ X o
0 0
o X o
u~ X ~
0
~D
SCOPE OF WORK
ATTACHMENT A
Based on the success of the 2005 Palo Alto Right Lights Pilot Program, City of Palo Alto
Utilities (CPAU) has chosen Ecology Action to continue to implement a turnkey energy and
water efficiency program focused toward CPAU’s small commercial customer class. The
program is designed for our small commercial E2 electric rate customers, who due to lack of
adequate resources, time and knowledge never participate in public benefit programs. Ecology
Action will be provided with a list of qualified customers and will approach these customers, on
behalf of CPAU, to provide interested customers with a free energy and water audit. Audits and
recommended energy efficiency improvement information will be provided to the customers to
install the measures at a subsidized cos~i..
BACKGROUNDINFORMATION
In 1997, California State AB 1890 was passed requiring municipal utilities to collect an electric
charge to fund public benefit pro.grams. The funding level established for Palo Alto is
approximately $1.77 million annually. AB 1890 established that funds be expended in any one or
more of four program categories: ’ " .
*Demand-side management programs (Energy Efficiency Programs)
.New investment in renewable energy resources
.Research, development and demonstration programs
.Low income services.
To comply with AB 1890, the City Council approved an initial public benefit package with
funding allocations as part of the budget process for 1998-99 (CMR:237:98). The program
allocation served as a guideline and was expressed by a range, which in sum cannot exceed $1.77
million cap. The cap allocation for a given program may be exceeded, with a corresponding
reduction in another program if, for example, customer demand is high for a particular program.
Staff anticipates that the components and details of public benefit programs will continuously
evolve through an iterative process involving the residents and businesses of Palo Alto, staff,
Council and the UAC.
PROJECT OBJECTIVES
There are two main objectives of the Small Commercial Energy Efficiency Program are:
Objective 1 -
Improve customer satisfaction by achieving a high participation rate, measured as percentage of
customers participating in the lighting retrofit. The ideal customer class is businesses with 1-9
employees and under 10 kW in demand.
Objective 2
Create a cost effective program that will help businesses customers reduce energy use and lower
annual energy costs in their business.
PROJECT DESCRIPTION
The 2005 "Palo Alto Right Lights Pilot Program" substantially over delivered on program targets
as well as demonstrated a low retrofit cost per customer. CPAU staff set a target goal to serve 32
customers with an energy reduction of 64 kW or 320,000 kWh for a one year period. Ecology
Action was able to audit 45 sites reaching an impressive 141% of goal. Accordingly they also
were able to get 79 kW energy reductions or 405,279 kWh. Not only was Right Lights a cost
effective program torun it also eliminated 445,807 lbs. of C02 from being discharged into the
environment. Since the start of the pilot program Ecology Action as been able deliver verifiable
energy saving to the hard to reach small commercial customer class.
The primary goal for the Small Commercial Energy Efficiency Program is to improve customer
satisfaction by achieving a high participation rate, measured as percentage of customers
participating in the lighting retrofit. The ideal customer class is businesses with 1-9 employees
and under 10 kW in demand. The turn-key program will help businesses customers reduce
energy use and lower annual energy costs in their business through a variety of project services
and installations, such as:
Energy efficient lighting: (T 12 to T 8 fluorescent fixture conversion, compact
fluorescent lamps (CFL), high intensity discharge (HID)replacement of incandescent
lamps, light emitting diode (LED) upgrades of exit signs
Performance based operation and maintenknce system improvements and verification for
rooftop "packaged" heating, cooling, and ventilating systems sized between 5 and 20 tons
(check and replace belts, clean condenser and evaporator coils, tighten cover panels,
provide a new filter, economizer lubrication/check/cleaning, check and properly charge
the refrigerant, install locking Schrader valve caps, assess airflow performance, and
checkireprogram existing thermostats
Programmable thermostats replacement
Anti-Sweat Heater Controls for doors primarily in convenience stores, flower shops
Occupancy sensors, wall box lighting sensors, wall or ceiling mounted lighting, plug
load sensors, lighting time clocks.
Currently there are no existing programs in CPAU to assure air conditioning performance or to
capture operations and maintenance savings. Our existing rebate program focuses on equipment
replacement using stated manufacturer energy efficiency ratios as a Standard of assuring the best
units are installed.
However, ongoing research by E Source, Northwest Energy Alliance, Portland Energy
Conservation, Inc., all indicate that stated manufacturer ratios are not yielding the expected
energy savings and that a focus on assessing HVAC installed performance may be a better
approach to capturing energy and demand savings. Federal Energy Management Program
indicates potential savings of between 5% and 20% of energy bills through implementation of
low and no-cost operation and maintenance schedule which targets energy efficiency.
Program services targeted to the heating, ventilation, and air conditioning systems under this
contract would be offered to customers during the initial site visit for lighting and efficiency
assessment. Customers would be provided with marketing material describing the operations
and maintenance program and its benefits. The contractor would then manage and coordinate all
aspects of scheduling with customers and the City’s Project Manager. Each participant will be
provided with a report from the contractor of findings, operations and maintenance measures
performed, and anticipated energy and dollar savings.
Ecology Action will perform and deliver a follow-up survey of solicited participants with
analysis through on-site surveys and participant surveys. Quarterly and final reports detailing
work described above will be provided. All work shall be completed in a timely manor.
CONSULTANT SERVICES
Ecology Action’s scope of work shall include, bu~ not be limited to, the following:
Task 1" Review Existing Information
No Review the 2005 Right Lights Palo Alto Pilot Program customer database for list of
customers served, areas targeted, list of customers approached, list of all E2 commercial
customers in billing system
B.Review and become familiar with the April 2006 Final Right Lights Palo Alto Pilot Program
savings ’report.
Co Data collection ..............
Create a specific potential list of customers and locations. Conduct site visits and determine
savings potential on full or partial energy efficiency retrofits. Report all findings.
Task 2: Market Analysis
Detailed market assessment
The market assessment shall include all E2 potential users in the project areal CPAU will
provide information to prospective customers. Ecology Action will perform energy audit
assessment of users’ site and his or hers willingness to implement energy efficiency
measures.
No Incentive
Evaluate the savings potential on reduced energy consumption. Evaluation shall take into
account the on-site retrofit costs, current and future savings vs. total project cost.
Task 3: Proiect Design
No Develop project
Consultant shall develop a conceptual project to deliver verifiable saving to CPAU. The
project shall address the needs of the prospective customers and future requirements.
Technical evaluation
Consultant shall perform a technical evaluation at the customer’s site including all major
equipment.
Cost Estimation Contract
Ecology Action shall provide the customer and CPAU with a detailed estimate the total costs
of the project. The total cost shall include any customer out of pocket costs, any cost to the
customer for operations and maintenance costs, and any other costs that are not included in
the program description
D°Written contract
After a’free energy audit has been performed a detailed Cost Estimation Contract (Retrofit
Contract) will be presented to the customer. A signature from the customer will be required
before any work can be performed. A signature by the customer will act as an acceptance and
authorization for any energy efficiency retrofits to be done.
Task 4: Preparation of Reports
A°
No
Monthly Report (monthly)
Ecology Action shall produce a monthly report detailing the date and number of customer
sites visited, number of customer audited, number of customer sites a Quick Saver Packet
(QSP) was installed, number of sites a QSP was declined, number of customer sites that
signed a retrofit contract with an estimated completion date.
Yearly Draft Report Summary (draft report)
Ecology Action shall prepare a yearly draft report summary that includes all customer
information, customer sites targeted, customer sites audited and customer sites that declined
audits and retrofits completed. The draft report will include marketing plan, program goals,
% of goal completed, estimated total energy savings potential, actual savings potential. The
draft report may include any comments and questions from project manger.
Co Final report (final)
Ecology Action shall review and respond to all draft report comments from the CPAU and
incorporate all appropriate or required changes to Final.
Task 6: Proiect Management
4
Proj ect management shall be an integral part of the Small Commercial Energy Efficiency
Program. Ecology Action shall monitor all activities, schedule, and budgets of the project. All
activities shall be coordinated through CPAU Project Manager.
A.Budget and Schedule Tracking
Ecology Action shall provide budget and schedule tracking of this project. Provide
summaries of project status,, and budget and schedule status on a monthly basis.
No Project Meetings
Coordinate and attend a minimumof:two prgject meeti.ggs per year to update project
Manager on schedule, budget andm;~i!~il i~;~~ta~t~s.: ..... ’ ...... ’~ .... ~<~~ ....... ¯
DELIVERABLES
Ecology Action shall prepare and deliver one (1) draft report to Project Manager for review and
comments. Consultant shall respond to all review comments, incorporate comments as
appropriate, and submit five (5) copies of the final report to Project Manager for distribution.
ADDITIONAL SERVICES
Ecology Action may be required to perform additional services listed below. Ecology Action
shall perform the additional services upon written authorization by the Project Manager.
Payment for the additional services shall be time and expense based on the schedule of charges
not to exceed a pre-negotiated maximum. The maximum limit for each additional task shall be
negotiated and agreed upon prior to providing the service. Ecology Action shall provide a
schedule of charges with the fee information, Additi0’~al services may include:
A1. Develop and evaluate project alternatives to lighting retrofit in the project area.
A2. Conduct meetings or workshops that are not including in the basic scope of services.
PROJECT SCHEDULE
Theproject shal! start on October 1, 2005. The final report shall be complete before June 30,
2009. Consultant shall establish a schedule showing the critical path and time line for each task
at the beginning of the project. The Consultant shall update and maintain the schedule
throughout the project.
PAYMENT
Progress payments for Ecology Action services shall reflect the amount of incentive paid plus
administration fees. The cumulative payment shall not exceed the total contact amount of 250k.
or completed percent of the total project based on the completed tasks or deliverables.
*** END***
ATTACHMENT B
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT
OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY
COMPANIES WITH A BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE
BUSINESS IN THE STATE OF CALIFORNIA.
~WARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:
MINIMUM LIMITS
REQUIRED TYPE OF COVERAGE
YES WORKER’S COMPENSATION
YES AUTOMOBILE LIABILITY
YES
YES
NO
COMPREHENSIVE GENERAL
LIABILITY, INCLUDING PERSONAL
INJURY, BROAD FORM PROPERTY
DAMAGE BLANKET CONTRACTUAL,
AND FIRE LEGAL LIABILITY
COMPREHENSIVE AUTOMOBILE
LIABILITY, INCLUDING, OWNED,
HIRED, NON-OWNED
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
REQUIREMENT
STATUTORY
STATUTORY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY DAMAGE
COMBINED.
BODILYINJURY
EACH PERSON
EACH OCCURRENCE
PROPERTY DAMAGE
BODILYINJURY AND PROPERTY
DAMAGE, COMBINED
ALL DAMAGES
EACH
OCCURRENCE
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000~000
$1,000,000
AGGREGATE
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: PROPOSER, AT ITS SOLE COST AND EXPENSE,
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY PROPOSER AND ITS
SUBCONSULTANS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY
AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSURES CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS,
AND EMPLOYEES.
II.
INSURANCE COVERAGE MUST INCLUDE:
A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF
COVERAGE CANCELLATION; AND
A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S
AGREEMENT TO INDEMNIFY CITY - SEE SECTION D, SAMPLE AGREEMENT FOR SERVICES.
SUBMIT CERTIFICATE(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE, OR COMPLETE THIS SECTION AND
IV THROUGH V, BELOW.
A.NAME AND ADDRESS OF COMPANY AFFORDING COVERAGE (NOT AGENT OR BROKER):
B.NAME, ADDRESS, AND PHONE NUMBER OF YOUR INSURANCE AGENT/BROKER:
C.POLICY NUMBER(S):
City of Palo Alto - RFP Page 1 of 2
ATTACHMENT B
INSURANCE REQUIREMENTS
D.DEDUCTIBLE AMOUNT(S) (DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR
APPROVAL):
I11.
IV.
Vo
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AND PROPOSER’S
SUBMITTAL OF CERTIFICATES OF INSURANCE EVIDENCING COMPLIANCE WITH THE REQUIREMENTS SPECIFIED
HEREIN,
ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSURES"
A.PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS
AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY
OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSURES.
B.CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSURES UNDER THE POLICY
SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER,
BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL
LIABILITY OF THE COMPANY UNDER THIS POLICY.
C.NOTICE OF CANCELLATION
1.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE
NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY
(30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2.IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF
PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN
NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
PROPOSER CERTIFIES THAT PROPOSER’S INSURANCE COVERAGE MEETS THE ABOVE REQUIREMENTS:
THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. SIGNATURE(S) MUST BE SAME
SIGNATURE(S) AS APPEAR(S) ON SECTION II, ATTACHMENT A, PROPOSER’S INFORMATION FORM.
Firm:
Signature:
Name:
(Print or type name)
Signature:
Name:
(Print or type name)
NOTICES SHALL BE MAILED TO:
PURCHASING AND
CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303.
City of Palo Alto - RFP Page 2 of 2
CERTIFICATION OF NONDISCRIMINATION
ATTACHMENT C
Project:
Certification of Nondiscrimination: As suppliers of goods and/or services to the City of Palo Alto
in excess of $5,000, the firm, contractor or individual(s) listed below certify that: they do not and in
the performance of this contract they will not discriminate in employment of any person because of
race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing
status, marital status, familial status, weight or height of such person; and further certify that they
are in compliance with all Federal, State and local directives and executive orders regarding
nondiscrimination in employment.
Firm:DATE:
Title of Officer Signing:
Signature:
CITY OF PALO ALTO: CERTIFICATION OF NONDISCRIMINATION
CITY OF PALO ALTO CONTRACT NO. C07116342
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
ECOLOGY ACTION, INC.
FOR PROFESSIONAL SERVICES
(Right Lights Project)
This AGREEMENT is entered into , by and
between the CITY OF PALO ALTO, a chartered city and a municipal
corporation of the State of California ("CITY"), and Ecology Action
Inc., a California Corporation, located at 211 River Street, Santa
Cruz, CA 95060 ("CONSULTA!NT") .
RECITALS
The following recitals are a substantive portion of this
Agreement.
A. CITY intends to engage a consultant to prepare an energy and
water audit efficiency incentive program in connection with the
Project ("Services").
B. CONSULTANT has represented that it and any subconsultants have
the necessary professional expertise, qualifications, and
capability, and all required licenses and/or certifications to
provide the Services.
C. CITY in reliance on these representations desires to engage
CONSULTANT to provide the Services as more fully described in
Exhibit "A", attached to and made a part of this Agreement.
D. CONSULTANT has agreed to perform the Services on the terms and
conditions contained in this Agreement.
NOW, THEREFORE, in consideration of the recitals,
~covenants, terms, and conditions, ~this Agreement, the parties
agree:
AGREEMENT
Section I. SCOPE OF SERVICES. CONSULTANT shall perform the Services
described in Exhibit ~A" in accordance with the terms and
conditions contained in this Agreement. The performance of all
Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM. The term of this Agreement shall be from the
date of its full execution to "UPON COMPLETION OF THE SERVICES IN
ACCORDANCE WITH THE SCHEDULE OF PERFORMANCE ATTACHED AS EXHIBIT
~B"), unless terminated earlier pursuant to Section 20 of this
Agreement.
050310
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the
performance of Services under this Agreement. CONSULTANT shall
complete the Services within the term of this Agreement and in
accordance with the schedule set forth in Exhibit ~B", attached to
and made a part of this Agreement. Any Services for which times for
performance are not specified in this Agreement shall be commenced
and completed by CONSULTANT in a reasonably prompt and timely
manner based upon the circumstances and direction communicated to
the CONSULTANT. CITY’s agreement to extend the term or the
schedule for performance shall not preclude recovery of damages for
delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid
to CONSULTANT for performance of the Services described in Exhibit
"A", including both payment for professional services and
reimbursable expenses, shall not exceed Eighty Five Thousand
Dollars ($85,000) per year. In the event Additional Services are
authorized, the total compensation for services and reimbursable
expenses shall not exceed Eight Thousand Five Hundred Dollars
($8,500). The applicable rates and schedule of payment are set out
in Exhibit "C,, entitled "COMPENSATION," which is attached to and
made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with
and subject to the provisions of Exhibit "C". CONSULTANT shall not
receive any compensation for Additional Services performed without
the prior written authorization of CITY. Additional Services shall
mean any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within
the Scope of Services described in Exhibit ."A".
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall
submit monthly invoices to the CITY describing the services
performed and the applicable charges (including an identification
of personnel who performed the services, hours worked, hourly
rates, and reimbursable expenses), based upon the CONSULTANT’s
billing rates (set forth in Exhibit "C") . If applicable, the
invoice shall also describe the percentage of completion of each
task. The information in CONSULTANT’s payment requests shall be
subject to verification by CITY.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services
shall be performed by CONSULTANT or under CONSULTANT’s supervision.
CONSULTANT represents that it possesses the professional and
technical personnel necessary to perform the Services required by
this Agreement and that the personnel have sufficient skill and
experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subconsultants have and shall
maintain during the term of this Agreement all licenses, permits,
qualifications, insurance and approvals of whatever nature that are
legally required to perform the Services.
2
050310
All of the ~ervices to be furnished by CONSULTANT under this
agreement shall meet the professional standard and quality that
prevail among professionals in the same discipline and of similar
knowledge and skill engaged in related work throughout California
undem the same or similar circumstances.
3
050310
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself
informed of and in compliance with all federal, state and local
laws, ordinances, regulations, and orders that may affect in any
manner the Project or the performance of the Services or those
engaged to perform Services under this Agreement. CONSULTANT shall
procure all permits and licenses, pay all charges and fees, and
give all notices required by law in the performance of the
Services.
CONSULTANT shall report immediately to the CITY’s project manager,
in writing, any discrepancy or inconsistency it discovers in the
laws, ordinances, regulationS, orders, and/or guidelines in
relation to the Project of the performance of the Services.
All documentation prepared by CONSULTANT shall provide for a
completed project that conforms to all applicable codes, rules,
regulations and guidelines that are in force at the time such
documentation is prepared.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost
to CITY, any and all errors, omissions, or.ambiguities in the work
product submitted to CITY, provided CITY gives notice to
CONSULTANT.
SECTION 9. INDEPENDENT CONTRACTOR. It is understood and agreed
that in performing the Services under this Agreement CONSULTANT,
and any person employed by or contracted with CONSULTANT to
furnish labor and/or materials under this Agreement, shall act as
and be an independent Contractor and not an agent or employee of
the CITY. The manner and means of conducting the Services are the
responsibility of and under the control of CONSULTANT, except to
the extent they are limited by applicable law and the express
terms of this Agreement.
CONSULTANT will be responsible for employing or engaging all
persons necessary to perform the Services. All contractors and
employees of CONSULTANT are deemed to be under CONSULTANT’S
exclusive direction and control. CONSULTANT shall be responsible
for their performance.
SECTION I0. ASSIGNMENT. The parties agree that the expertise and
experience of CONSULTANT are material considerations for this
Agreement. CONSULTANT shall not assign or transfer any interest in
this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written consent of the city
manager. Consent to one assignment will not be deemed to be
consent to any subsequent assignment. Any assignment made without
the approval of the city manager will be void.
SECTION II. SUBCONTRACTING.
050310
NO SUBCONSULTANTS. CONSULTANT shall not subcontract any portion
of the work to be performed under this Agreement without the prior
written authorization of the city manager or designee.
SECTION 12. PROJECT MANAGEMENT. CONSULTANT will assign Mahlon
Aldridqe as the project director to have supervisory responsibility
for the performance, progress, and execution of the Services. If
circumstances or conditions subsequent to the execution of this
Agreement cause the substitution of the project director or any
other key personnel for any reason, the appointment of a substitute
project director and the assignment of any key new or replacement
personnel will be subject to the prior written approval of the
CITY’s project manager. CONSULTANT, at CITY’s request, shall
promptly remove personnel who CITY finds do not perform the
Services in an acceptable manner, are uncooperative, or present a
threat to the adequate or timely completion of the Project or a
threat to the safety of persons or property.
The city manager will represent CITY for all purposes under this
Agreement. Brian Ward is designated as the project manager for the
CITY. The project manager will be CONSULTANT’s point of contact
with respect to performance, progress and execution of the
Services. The CITY may designate an alternate Project manager from
time to time.
SECTION 13. DUTIES of CITY. To assist CONSULTANT in the performance
of the Services, CITY will furnish or cause to be furnished the
specified services and/or documents described in Exhibit "A" and
such other available information as may be reasonably requested by
CONSULTANT.
SECTION 14. OWNERSHIP OF MATERIALS. All drawings, plans, reports,
specifications, calculations, documents, other materials and
copyright interests developed or discovered by CONSULTANT or any
other person engaged directly or indirectly by CONSULTANT to
perform the services required hereunder shall be and remain the
property of CITY without restriction or limitation upon their use.
Neither CONSULTANT nor its contractors, if any, shall make any of
such materials available to any individual.or organization without
the prior written approval of the city manager or designee.
SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any
reasonable time during the term of this Agreement and for three (3)
years thereafter, CONSULTANT’s records pertaining to matters
covered by this Agreement. CONSULTANT further agrees to maintain
and retain such records for at least three (3) years after the
expiration or earlier termination of this Agreement.
SECTION 16. INDEMNITY. To the fullest extent permitted by law,
CONSULTANT shall protect, indemnify, defend and hold harmless CITY,
its Council members, officers, employees and agents (each an
"Indemnified Party") from and against any and all demands, claims,
2 050310
or liability of any nature, including death or injury to any
person, property damage or any other loss, including all costs and
expenses of whatever nature including attorneys fees, experts fees,
court costs and disbursements ("Claims") resulting from, arising
out of or in any manner related to performance or nonperformance by
CONSULTANT, its officers, employees, agents or contractors under
this Agreement, regardless of whether or not it is caused in part
by an Indemnified Party.
The acceptance of CONSULTANT’s services and duties by CITY shall
not operate as a waiver of the right of indemnification. The
provisions of this Section 16 shall survive the expiration or early
termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach
or violation of any covenant, term, condition or provision of this
Agreement, or of the provisions of any ordinance or law, will not
be deemed to be a waiver of any other term, covenant, condition,
provisions, ordinance or law, or of any subsequent breach or
violation of the same or of any other term, covenant, condition,
provision, ordinance or law.
SECTION 18. INSURANCE.
18.1.CONSULTANT, at its sole cost and expense, shall
obtain and maintain, in full force and effect during the term of
this Agreement, the insurance coverage described in Exhibit "D".
CONSULTANT and its contractors, if any, shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured
under any general liability or automobile policy or policies.
18.2.All insurance coverage required hereunder shall
be provided through carriers with Best’s Key Rating Guide ratings
of A-:VII or higher which are admitted to transact insurance
business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will
obtain and maintain, in full force and effect during the term of
this Agreement, identical insurance coverage, naming CITY as an
additional insured under such policies as required above.
18.3.Certificates evidencing such insurance shall be
filed with CITY concurrently with the execution of this Agreement.
The certificates will be subject to the approval of CITY’s Risk
Manager and will contain an endorsement stating that the insurance
is primary coverage and will not be canceled, or materially reduced
in coverage or limits, by the insurer except after filing with the
Purchasing Manager thirty (30) days’ prior written notice of the
cancellation or modification, CONSULTANT shall be responsible for
ensuring that current certificates evidencing the insurance are
provided to CITY’s Purchasing Manager during the entire term of
this Agreement.
3 050310
18.4.The procuring of such required policy or
policies of insurance will not be construed to limit CONSULTANT’s
liability hereunder nor to fulfill the indemnification provisions
of this Agreement. Notwithstanding the policy or policies of
insurance, CONSULTANT will be obligated for the full and total
amount of any damage, injury, or loss caused by or directly arising
as a result of the Services performed under this Agreement,
including such damage, injury, or loss arising after the Agreement
is terminated or the term has expired.
SECTION 19. WORKERS’ COMPENSATION. CONSULTANT, by executing this
Agreement, certifies that it is aware of the provisions of the
Labor Code of the State of California which require every employer
to be insured against liability for workers’ compensation or to
undertake self-insurance in accordance with the provisions of that
Code, and certifies that it will comply with such provisions, as
applicable, before commencing and during the performance of the
Services.
SECTION 20.TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
20.1.The city manager may suspend the performance.of
the Services, in whole or in part, or terminate this Agreement,
with or without cause, by giving ten (i0) days’ prior written
notice thereof to CONSULTANT. Upon receipt of such notice,
CONSULTANT will immediately discontinue its performance of the
Services.
20.2.CONSULTANT may terminate this Agreement or
suspend its performance of the Services by giving ten (i0) days
prior written notice thereof to CITY, but only in the event of a
substantial failure of performance by CITY.
20.3.Upon such suspension or termination, CONSULTANT
shall deliver to the City Manager immediately any and all copies of
studies, sketches, drawings, computations, and other data, whether
or not completed, prepared by CONSULTANT or its contractors, if
any, or given to CONSULTANT or its contractors, if any, in
connection with this Agreement. Such materials will become the
property of CITY.
20.4.Upon such suspension or termination by CITY,
CONSULTANT will be paid for the Services rendered or materials
delivered to CITY in accordance with the scope of services on or
before the effective date (i.e., I0 days after giving notice) of
suspension or termination; provided, however, if this Agreement is
suspended or terminated on account of a default by CONSULTANT, CITY
will be obligated to compensate CONSULTANT only for that portion of
CONSULTANT’s services which are of direct and immediate benefit to
CITY as such determination may be made by the City Manager acting
in the reasonable exercise of his/her discretion
20.5.No payment,partial payment,acceptance, or
4 0s0310
partial acceptance by CITY will operate as a waiver on the part of
CITY of any of its rights under this Agreement.
SECTION 21. NOTICES.
All notices hereunder will be given in writing and mailed, postage
prepaid, by certified mail, addressed as follows:
To CITY:Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager.
To CONSULTANT: Attention of the project director
at the address of CONSULTANT recited above
SECTION 22.CONFLICT OF INTEREST
22.1.In accepting this Agreement, CONSULTANT
covenants that it presently has no interest, and will not acquire
any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the
Services.
22.2.CONSULTANT further covenants that, in the
performance of this Agreement, it will not employ subconsultants,
contractors or persons having such an interest. CONSULTANT
certifies that no person who has or will have any financial
interest under this Agreement is an officer or employee~of CITY;
this provision will be interpreted in accordance with the
applicable provisions of the Palo Alto Municipal Code and the
Government Code of the State of California.
22.3. If the Project Manager determines that CONSULTANT
is a "Consultant" as that term is defined by the Regulations of the
Fair Political Practices Commission, CONSULTANT shall be required
and agrees to file the appropriate financial disclosure documents
required by the Palo Alto Municipal Code and the Political Reform
Act.
SECTION 23. NONDISCRIMINATION. As set forth in Palo Alto
Municipal Code section 2.30.510, CONSULTANT agrees that in the
performance of this Agreement, it shall not discriminate in the
employment of any person because of the race, skin color, gender,
age, religion, disability, national origin, ancestry, sexual
orientation, housing status, marital status, familial status,
weight or height of such person. CONSULTANT acknowledges that it
has read and understands the provisions of Chapter 2.28 of the Palo
Alto Municipal Code relating to Nondiscrimination Requirements and
the penalties for violation thereof, and agrees to meet all
requirements of Chapter 2.28 pertaining to nondiscrimination in
5 050310
employment, including completing the form furnished by CITY and set
forth in Exhibit "E"
SECTION 24.MISCELLANEOUS PROVISIONS.
24.1. This Agreement will be governed by the laws of
the State of California.
24.2.In the event that an action is brought, the
parties agree that trial of such action will be vested exclusively
in the state courts of California or in the United States District
Court for the Northern District of California in the County of
Santa Clara, State of California.
24.3.The prevailing party in any action brought to
enforce the provisions of this Agreement may recover its reasonable
costs and attorneys’ fees expended in connection with that action.
24.4.This document represents the entire and
integrated agreement between the parties and supersedes all prior
negotiations, representations, and contracts, either written or
oral. This document may be amended only by a written instrument,
which is signed by the parties.
24.5. The covenants, terms, conditions and provisions
of this Agreement will apply to, and will bind, the heirs,
successors, executors, administrators, assignees, and CONSULTANTs,
as the case may be, of the parties.
24.6.If a court of competent.jurisdiction~finds or
rules that any provision of this Agreement or any amendment thereto
is void or unenforceable, the unaffected provisions of this
Agreement and any amendments thereto will remain in full force and
effect.
24.7.All exhibits referred to in this Agreement and
any addenda, appendices, attachments, and schedules to this
Agreement which, from time to time, may be referred to in any duly
executed amendment hereto are by such reference incorporated in
this Agreement and will be deemed to be a part of this Agreement.
24.8.This Agreement is subject to the fiscal
provisions of the Charter of the City of Palo Alto and the Palo
Alto Municipal Code. This Agreement will terminate without any
penalty (a) at the end of any fiscal year in the event that funds
are not appropriated for the following fiscal year, or (b) at any
time within a fiscal year in the event that funds are only
appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This Section 24.8 shall take
precedence in 5he event of a conflict with any other covenant,
term, condition, or provision of this Agreement.
6 050310
IN WITNESS WHEREOF, the parties hereto have by their duly
authorized representatives executed this Agreement on the date
first above written.
APPROVED AS TO FORM:CITY OF PALO ALTO
Senior Asst. City Attorney Assistant City Manager
APPROVED:
[Ecology Action]
Director of Administrative
Services
/
(If corpor~a~tion: President or Vice-President)
marne : ~ = U ~ ~ ~
(If corporation: Secretary or Treasurer~
Taxpayer Identification No.
Attachments :
EXHIBIT "A" :
EXHIBIT "B" ¯
EXHIBIT "C" :
(Compliance with Corp. Code § 313 is
required if the entity on whose behalf
this contract is signed is a corporation.
In the alternative, a certified corporate
resolution attesting to the signatory
authority of the individuals signing in
their respective capacities is acceptable)
SCOPE OF WORK
INSURANCE
NONDISCRIMINATION COMPLIANCE FORM
7 050310