HomeMy WebLinkAboutStaff Report 1538City of Palo Alto (ID # 1538)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/16/2011
May 16, 2011 Page 1 of 7
(ID # 1538)
Summary Title: Energy Efficiency Contracts
Title: Approval of Energy Efficiency Contracts with Acterra, Base Energy, Inc., Bay
Area Refrigeration/Castrovilla, Ecology Action, SBW Consulting, Inc., Synergy
Companies, Wave One and Willdan Energy Solutions; for Expansion of a Large
Business 3rd Party Energy Efficiency Program by Amendment No. 1 of the
Contract with Enovity, Inc.; for 3rd Party Oversight of Commercial Efficiency
Programs with Energy & Resource Solutions; and for Evaluation, Measurement
and Verification of Programs with Navigant Consulting in the Combined Amount
of $2,096,986 for the First Year from Gas and Electric Public Benefit and Supply
Funds
From:City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council:
1.Approve and authorize the City Manager to execute the attached contract with Acterra
for Green@Home: A Residential Energy-Saving Retrofit and Volunteer-Based Audit
Program;
2.Authorize the City Manager to extend the Acterra contract annually for up to two
additional years, subject to Council approval of sufficient funds;
3.Approve and authorize the City Manager to execute the attached contract with BASE
Energy, Inc. for Savings by Design: A Nonresidential New Construction Energy Efficiency
Program;
4.Authorize the City Manager to extend the BASE Energy, Inc. contract annually for up to
two additional years, subject to Council approval of sufficient funds;
5.Approve and authorize the City Manager to execute the attached contract with Bay Area
Refrigeration/Castrovilla (BAR/C) for a Commercial Refrigeration Direct Install Energy
Efficiency Program;
6.Authorize the City Manager to extend the BAR/C contract annually for up to two
additional years, subject to Council approval of sufficient funds;
7.Approve and authorize the City Manager to execute the attached contract with Ecology
Action for Right Lights+ Comprehensive Commercial Energy Efficiency program
administration;
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8.Authorize the City Manager to extend the Ecology Action contract annually for up to two
additional years, subject to Council approval of sufficient funds;
9.Approve and authorize the City Manager to execute the attached contract with SBW
Consulting, Inc. for Direct Installation of Commercial Water and Vending Miser Efficiency
Measures;
10.Approve and authorize the City Manager to execute the attached contracts with Synergy
Companies for Residential Energy Assistance Program and Commercial Hospital Energy
Efficiency program administration;
11.Authorize the City Manager to extend the Synergy Companies contracts annually for up
to two additional years, subject to Council approval of sufficient funds;
12.Approve and authorize the City Manager to execute the attached contract with Wave
One for a Downtown Benchmarking Program;
13.Approve and authorize the City Manager to execute the attached contract with Willdan
Energy Solutions for administration of a Laboratory Energy Efficiency Program;
14.Authorize the City Manager to extend the Willdan Energy Solutions contract annually for
up to two additional years, subject to Council approval of sufficient funds;
15.Approve and authorize the City Manager to execute the attached Amendment No. 1 to
the program administration contract with Enovity, Inc. for expansion of a Large
Commercial Energy Efficiency Program;
16.Authorize the City Manager to extend the Enovity contract annually for up to two
additional years, subject to Council approval of sufficient funds;
17.Approve and authorize the City Manager to execute the attached contract with Energy
& Resource Solutions (ERS) for oversight of 3rd party administered Energy Efficiency
programs;
18.Authorize the City Manager to extend the ERS contract annually for up to two additional
years, subject to Council approval of sufficient funds;
19.Approve and authorize the City Manager to execute the attached contract with Navigant
Consulting for development of an energy efficiency evaluation, measurement, and
verification plan; and
20.Authorize the City Manager to extend the Navigant Consulting contract annually for up
to two additional years, subject to Council approval of sufficient funds.
EXECUTIVE SUMMARY
Council has adopted a number of policies to support increased levels of energy and water
efficiency efforts in the City of Palo Alto. In order to achieve these higher goals, staff issued a
Request for Proposals, seeking a wide response and range of suggestions, innovations and
proposals from vendors. A total of 32 responses were analyzed by a staff review team; of
these, 12 contracts (representing 13 programs) are recommended for approval. If fully
implemented these contracts will cost $2,101,986 for FY 2012 alone, and $6,596,252 over three
years. Energy savings would be significant from these programs. In addition to the efficiency
programs already in place, these programs will assist the City in achieving, and likely exceeding,
Council-approved efficiency goals. Without the savings from these programs, staff will not be
able to meet the approved goals.
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BACKGROUND
The Long-term Electric Acquisition Plan (LEAP) Objectives and Strategies set the direction for
staff in planning and managing the electric supply portfolio. Council approved LEAP in March
2011 (#1317). LEAP Strategy #2 Electric Energy Efficiency and Demand Reduction requires the
deployment of all cost-effective, reliable and feasibly energy efficiency and demand reduction
as the highest priority resources. Staff updates the Council at least semi-annually on progress
in implementing LEAP. Similarly, the Gas Utility Long Term Plan (GULP) was revised and
approved with a similar strategy to pursue energy efficiency on March 7, 2011 (#1313)
In addition, the City’s Ten-Year Electric Energy Efficiency Portfolio Plan, approved by Council in
May 2010 (CMR:218:10) identifies and sets aggressive goals for electric conservation and
efficiency programs. The State legislature passed an update to California’s Public Resources
Code and Public Utilities Code through Assembly Bill 2021 (AB 2021) in September 2006,
requiring publicly-owned utilities to set annual energy efficiency targets, fund an independent
evaluation that measures and verifies the results of these programs, and report on the results
annually. Reports at the state level must show that efficiency programs deliver cost-effective
results, as defined by the California Energy Commission. The updated Ten-Year Gas Efficiency
Goals, scheduled for the April 11 City Council meeting, also recommend aggressive gas
efficiency goals for the period of 2011 through 2020.
DISCUSSION
To meet these enhanced efficiency goals and reporting requirements, staff expanded on its
annual Request for Proposals (RFP) process to find new companies to administer energy
efficiency programs (3rd party programs). The scope of the RFP was very wide and specifically
asked companies to propose innovative EE programs that address a wide variety of customer
groups. The RFP asked for proposals in four different areas: cost-effective EE programs, EE
programs targeting hard-to-reach customers, business energy audits, and measurement and
verification of natural gas and electric EE programs. In addition, information about the RFP was
sent to a much broader scope of potential vendors than usual.
In September 2010, the City issued RFP #138611 seeking responses from organizations
interested in providing services. All respondents were requested to provide innovations in
program delivery, marketing and/or end use targets for efficiency installation. The effort was
successful, with 32 proposals being received in one of the four areas of potential scope. After
reviewing all proposals for cost-effectiveness, potential to deliver energy savings, innovations in
program design and/or delivery, and a number of other factors, the staff review team
completed interviews with 19 of the respondents. Of these 19, 11 companies representing 13
different proposals are recommended to the Council for approval. The proposed contracts are
intended to meet the state and local requirements by enhancing the City’s energy efficiency
programs and evaluating the programs’ savings.
A staff review committee reviewed the proposals. The committee carefully analyzed the firms’
qualifications and proposals. The committee evaluated the firms based on a broad list of criteria
consisting of quality of service proposed, cost effectiveness, location of the vendor,
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qualifications of the consultant, and the financial stability of the company delivering the
services requested in the Request for Proposal. A summary of the responses and rankings is
included in this staff report as Attachment A.
The proposed vendors were selected for third party energy efficiency programs based on their
expertise and experience with similar types of work. Navigant Consulting was chosen for the
measurement and evaluation task based on the company’s experience in evaluating various EE
programs of publicly-owned utilities, including both the City of Palo Alto and other member
utilities of the Northern California Power Agency. Programs are proposed to be delivered by
the vendors in the following areas:
Energy Efficiency Programs
(1)Acterra for a residential in-home energy audit;
(2)BASE Energy, Inc.for management of and interface with customers and architects for
the business new construction program;
(3) Bay Area Refrigeration/Castrovilla for delivery of a focused program for the commercial
kitchen, quickie shop and other food delivery customers in the areas of refrigeration,
electronically controlled motors, and LED case lighting;
(3)Enovity to add funding to an ongoing program for large business customers. This
program has been very successful and has completed all goals and funding for a three year
program in two years;
(4) Ecology Action for continued delivery of the Right Lights+ small and medium commercial
customer energy efficiency program;
(5) SBW Consulting, Inc. for a focused, short-term direct installation program of hot water
using (and thus natural gas using) items at commercial facilities and for vending misers at
vending machines throughout the small commercial sector;
(5) Synergy Companies for continued implementation of the low income residential
program and to start an efficiency program focused on the hospitality sector;
(6) Wave One to provide benchmarking data of downtown businesses and market selected
efficiency programs provided by third party efficiency contractors of CPAU;
(7) Willdan Energy Solutions to provide a specialized, highly focused energy efficiency
program for the unique environment of scientific laboratories.
Program Overview and Energy Savings Engineering Review
(1) Energy Resource Solutions,to assist staff in ensuring energy savings reported from
programs are correct, provide engineering assistance in complicated, innovative, and/or
deep-reaching efficiency projects without standard savings estimate and provide oversight
of some other third party program deliverers.
Evaluation, Measurement and Verification
(4) Navigant Consulting,for the development and implementation of the mandated
Evaluation, Measurement, and Verification (EM&V) plan for Public Benefits programs.
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These programs fit into the City of Palo Alto Utilities (CPAU) Demand Side Management Energy
Efficiency Implementation Plan, which is included as Attachment B to this report. The
Implementation Plan explains how the aggressive goals for electric and natural gas energy
efficiency, set by Council, will be met through both these new contracts and by ongoing
programs. Without approval of the contracts, the Implementation Plan will need to be revised,
with efficiency goals reduced commensurately.
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RESOURCE IMPACT
The total budget impact by fiscal year for each contractor is shown below:
Type of
Contract for
RFP #138611
Contract Fiscal
2012
Fiscal
2013
Fiscal
2014
Total
Contract
Not-to-
Exceed
Annual Savings
Target from
Contract
Acterra $60,000 60,000 $60,000 $180,000 NA
BASE
Energy, Inc.$67,130 67,130 $67,130 $201,390
2,436,669 kWh
14,665 therms
6,476 ccf
Bay Area
Refriger./
Castrovilla
$75,000 75,000 $75,000 $225,000 1,038,385 kWh
Ecology
Action $517,397 500,000 $500,000 $1,517,39
7
1,784,342 kWh
5,072 therms
SBW
Consulting,
Inc.
$131,000 $131,000
3,434,140 kWh
31,350 therms
12,350 ccf
Synergy
Companies $316,000 316,000 $316,000 $948,000 1,705,374 kWh
Wave One $75,000 $75,000 NA
3rd Party EE
Program
Willdan
Energy
Solutions
$250,000 250,000 $250,000 $750,000 2,000,000 kWh
1,000 therms
Amendment
to 3rd Party
EE Program
Enovity,
Inc. (only
amend. #1)
$438,459 812,003 $812,003 $2,062,46
5
12,053,832 kWh
173,280 therms
Program
Overview
Energy &
Resource
Solutions
$35,000 35,000 $35,000 $105,000 NA
Evaluation,
Measureme
nt &
Verification
Navigant
Consulting $132,000 132,000 $132,000 $396,000 NA
Total 2,096,986 2,247,133 2,247,133 $6,591,25
2
24,452,742 kWh
225,367 therms
23,898 ccf
These costs above are only for the contracts recommended to be approved in this staff report.
Additional costs for staffing and support, for customer incentives, for data input and other costs
May 16, 2011 Page 7 of 7
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are included in the budget request for FY 2012. These contracts will be paid out of the energy
efficiency budget. This budget is funded by the public benefit charge and the gas and electric
supply funds. Funds for upcoming fiscal years are included in the Electric and Gas Fund
budgets. Funds for subsequent years will be subject to appropriation in subsequent budgets.
POLICY IMPLICATIONS
The proposed contracts support the Council-approved Gas Utility Long-Term Plan, the Ten-year
Energy Efficiency Portfolio Plan, the Ten-Year Gas Efficiency goals, the Long-term Electric
Acquisition Plan, and Comprehensive Plan Goal N-9. Implementation of efficiency programs
support greenhouse gas reduction goals identified in the Palo Alto Climate Protection Plan and
in the California Global Warming Solutions Act of 2006 (AB 32) and the independent EE
evaluation required by Assembly Bill 2021 (AB 2021) in September 2006.
ENVIRONMENTAL REVIEW
The provision of these services do not constitute a project pursuant to Section 21065 of the
California Public Resources Code, thus no environmental review under CEQA is required.
Attachments:
·Attachment A: Summary of Responses (PDF)
·Attachment B: DSM Implementation Plan for 2011-2014 (PDF)
·Attachment C: Contract with ACTERRA (PDF)
·Attachment D: Contract with Base Energy Inc (PDF)
·Attachment E: Contract with Bay Area Refrigeration\Castrovilla (PDF)
·Attachment F: Contract with ECOLOGY Action (PDF)
·Attachment G: Contract with SBW Consulting (PDF)
·Attachment H: Contract with SYNERGY Hospitality (PDF)
·Attachment I: Contract with SYNERGY LOW INCOME (PDF)
·Attachment J: Contract with WAVEONE (PDF)
·Attachment K: Contract with Willdan (PDF)
·Attachment L: Amendment1 with Enovity (PDF)
·Attachment M: Contract ERS (PDF)
·Attachment N: Contract Navigant (PDF)
Prepared By:Joyce Kinnear, Manager
Department Head:Valerie Fong, Director
City Manager Approval: James Keene, City Manager
Contractor Name Program Name Program Description Recommend for
Approval
Proposal Annual
Cost
Total Res.
Cost Test* Savings Contract Cost Electric Gas
Contract
Includes
Rebates?
Rebate
Estimate
Scope 1
BASE Savings by Design New construction program.Yes 188,000.00$ 2.80
2,436,669 kWh
14,665 therms
6,476 ccf
$ 67,130 $ 50,000 $ 17,130
No; rebates are
an additional
expense
50,000$
Ecology Action Right Lights
Business installation and rebates for
lighting, controls, HVAC and other
measures
Yes 750,000.00$ 1.76 1,784,342 kWh
5,072 therms $ 517,397 $ 517,397 $ - No 100,000$
Enernoc Commissioning Retrocommissioning for large businesses.
No; not cost-
effective & same
as current
program.
$49,000/building NA
Enersave Smart Meter Information Develop smart meter in-home information
for residents.
No; does not meet
scope $4.00 per house NA NA
Field Diagnostics HVAC Tune-Up Field diagnostics on residential air
conditioners.
No; insufficient
customers for this
program
72,666.67$ NA
Humitech/Castrovilla Keep Your Cool
Commercial refrigeration efficiency
installation and rebate program.Yes 74,666.67$ 4.22 1,038,385 kWh $ 75,000 $ 75,000 $ - No; DI 25,000$
Nexant Data Center Efficiency Perform efficiency work at data centers.
No; insufficient
customers for this
program
55,000.00$ NA
Resource Solutions Group Residential Retrofit
Market residential rebates and coordinate
with EGIA contractor network.
No; not cost-
effective & CPAU
can work with
EGIA contractor
network directly.
190,000.00$ 0.60 NA
SBW Consulting Water Measures Install shower heads, spray pumps and
aeraters at commercial sites.Yes 41,000.00$
210,140 kWh
31,350 therms
12,350 ccf
$ 41,000 $ - $ 41,000 No; DI -$
SBW Consulting Vending Misers Install vending misers at commercial sites. Yes 90,000.00$ 3,224,000 kWh $ 90,000 $ 90,000 $ - No; DI -$
Synergy Hospitality Focused efficiency program for the
hospitality sector.Yes 150,000.00$ 2.42 997,057 kWh $ 150,000 $ 150,000 $ -
No; rebates are
an additional
expense
25,000$
Synergy Small Commercial
Business installation and rebates for
lighting, controls, HVAC and other
measures.
No 378,333.33$ 2.77 3,146,121 kWh
NA; continue
with Ecology
Action for this
program
Willdan Energy Services Lab Efficiency Comprehensive energy efficiency for labs. Yes 199,333.33$ 3.10 2,000,000 kWh
1,000 therms $ 250,000 $ 250,000 $ -
No; rebates are
an additional
expense
75,000$
Scope 2
Ecology Action Energy Edge Multifamily and small business installation
and rebate measure.
No; combine with
Right Lights 432,877.00$ 2.03 NA
Matrix Direct Install Small Busi HVAC maintenance & LED exit light
installation No 534,261.00$ NA
Strategic Energy
Innovations Energy School Pledge Students make pledges to reduce energy at
home.
No; no efficiency
from program 251,226.00$ NA
Synergy REAP Installation of efficiency measures at low
income sites.Yes 233,333.33$ 2.11 708,317 kWh $ 166,000 $ 101,000 $ 65,000 No; DI
3rd Party EE Programs
Scope 3
Acterra Green@Home Green@Home Inhome residential audits.Yes 50,000.00$ NA $ 60,000 $ 60,000 $ - NA
kW Engineering Business Audit Audits for business customers.No 156,000.00$ NA
Enernoc Business Audit Audits for business customers.No 295,000.00$ NA NA
Lincus Business Audit Audits for business customers.No Hourly rates only NA NA
Energy & Resource
Solutions Business Audit Audits for business customers.Yes 290,000.00$ NA $ 35,000 $ 35,000 $ - No; Program
Administration
Enovity Commercial & Industrial
Energy Efficiency Program
Expand program to meet enhanced goals
and to add small audits for PV Partners.Yes 438,459.00$ NA 12,053,832 kWh $ 438,459 $ 188,459 $ 250,000 No 100,000$
BASE Business Audit Audits for business customers.No Hourly rates only NA NA
Water-Wise Business Water Audit Audits for business customers.No Rates per audit NA NA
Wave One Business Benchmarking Audits for business customers.Yes--different type 220,000.00$ NA $ 80,000 $ 80,000 $ - NA
Scope 4
Lincus EM&V 3rd party verification of programs. No Hourly rates only NA NA
Navigant EM&V 3rd party verification of programs. Yes 132,000.00$ NA $ 132,000 $ 100,000 $ 32,000
Cadmus EM&V 3rd party verification of programs. No 100,000.00$ NA NA
Energy & Resource SolutionsEM&V 3rd party verification of programs. No 108,000.00$ NA $ - $ - $ - No
Heschong Mahone EM&V 3rd party verification of programs. No 268,000.00$ NA NA
Global Energy Partners EM&V 3rd party verification of programs. No 178,000.00$ NA NA
Total $ 2,101,986 $ 1,696,856 $ 405,130 $ 375,000
Demand Side Management Implementation Plan for FY 2012 to FY 2014
EXECUTIVE SUMMARY 3
Advancing Strategic Plan goals and objectives 3
C1. “Care for our environment” 3
BP1. Communicate clearly and pro-actively with all our stakeholders 3
BP2. Offer programs to meet the needs of customers and the community 3
BP12. Promote efficient use of resources 4
DEMAND SIDE MANAGEMENT PROGRAM PORTFOLIO 4
Overall Portfolio Goals 4
Program Rationale and Development 4
EXPECTED EFFICIENCY PROGRAM BUDGET AND RELATED SAVINGS 5
Proposed Electric Energy Efficiency Portfolio Budget 6
Electric Savings by End Use 6
Proposed Natural Gas Energy Efficiency Portfolio Budget 7
Gas Savings by End Use 8
Proposed Water Efficiency Portfolio Budget 9
Water Savings by End Use 9
Quantitative Program Targets 11
CURRENT PROGRAMS 13
Residential Smart Energy Program 13
Residential Home Energy Reports 13
Residential Energy Assistance Program (REAP) 13
Residential Green@Home 13
Residential Water Programs 13
PaloAltoGreen 13
Green Building Program 13
New Construction Rebates and HERS Audits 14
Educational Programs and Workshops 14
Commercial Advantage Program 14
Right Lights+ Program 14
Commercial Refrigeration 14
Commercial and Industrial Energy Efficiency Program 14
Commercial and Industrial Water Program 15
Water Efficient Technologies (WET) Program 15
PV Partners 15
Solar Water Heating 15
PROGRAMS IN DEVELOPMENT FOR NEAR-TERM IMPLEMENTATION 15
No-Interest Business Loan Program 15
Operational Performance Reviews 15
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
ENERGY STAR® Profile Manager Building Automatic Upload for Rating 15
Hotel Efficiency Program 15
Others, To Be Determined 16
IDEAS UNDER EVALUATION FOR POTENTIAL IMPLEMENTATION 16
Energy Upgrade California 16
Multi-Family Incentives 16
Point of Property Sale Efficiency Requirements 16
Residential No-Interest Loan Program 16
Feed In Tariff 16
Tap Water Recycling Program 16
APPENDIX A: PORTFOLIO DETAILS 17
Proposed Electric Energy Efficiency Detailed Program Budget* 17
Proposed Natural Gas Energy Efficiency Detailed Program Budget* 18
Proposed Water Conservation Detailed Program Budget 18
Behavioral Techniques in Program Design to Overcome Barriers 19
APPENDIX B: POLICY BACKGROUND AND PROGRAM GOALS 20
APPENDIX C: OTHER IMPLEMENTATION ISSUES 22
Program Implementation/Delivery Mechanisms 22
Incentive levels 22
Efficiency Program Pilots and Requests for Proposals 23
CPAU Innovation Program 23
Customer Outreach 24
Ongoing Program Improvement and Evaluation 26
Coordination with Other Programs 27
Integration Across Resource Types (Energy and Water) 27
New Construction Program Integration 27
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Executive Summary
The City of Palo Alto’s Long Term Electric Acquisition Plan (LEAP), Gas Utility Long-
term Plan (GULP), and Urban Water Management Plan (UWMP) all set policies that give
efficiency a high priority when procuring new resources. LEAP requires that the City
fund programs that maximize the deployment of cost-effective, reliable and feasible
energy efficiency (EE) and demand reduction opportunities as the highest priority
resources. To meet this LEAP objective, the City prepares a report every three years
that identifies all potentially achievable cost-effective EE opportunities and establishes
annual electric efficiency targets over a 10-year period. In May 2010, City Council
approved the updated 10-year Electric EE Plan that establishes aggressive electric
efficiency goals for 2011 through 2020. GULP and the UWMP have a similar process for
setting gas and water efficiency goals. The complete discussion is in Appendix B at the
end of this report.
The Demand Side Management (DSM) Implementation Plan (Plan) provides details on
meeting the electric, gas and water efficiency goals for the next three fiscal years (2012
to 2014). The Plan describes a portfolio of programs by type of savings (end use) for the
entire City of Palo Alto Utilities’ (CPAU) DSM portfolio, including electric, natural gas and
water efficiency customers. High level budgets by program and utility portfolio are also
included. The Plan shows that assuming City Council approves proposed contracts and
related budget for third-party program administrators, in-house administration and
related staffing that are currently recommended, then the efficiency goals for all three
utilities should be met and may even be exceeded.
Advancing Strategic Plan goals and objectives
The portfolio of all DSM programs will help to achieve the following near-term strategic
goals as identified in the CPAU Strategic Plan:
C1. “Care for our environment”
Our community wants its customer-owned utility to offer choices for them to
manage their resource use in ways that reflect their environmental values. Utilities will
improve existing programs and develop new programs to meet customer needs and
allow customers to manage their own environmental footprint.
BP1. Communicate clearly and pro-actively with all our stakeholders
We will proactively communicate with all our stakeholders, including all customer
groups, civic leaders, community groups and the press. To achieve this objective we will
provide the information needed for our stakeholders to effectively access, understand
and utilize all utilities services and programs. In addition, we will design communication
vehicles and dissemination processes that will enable our residents to be educated
owners of their municipal utilities system.
BP2. Offer programs to meet the needs of customers and the
community
We will assist customers to lower their cost of utilities services and support the
environment. We will assist customers facing economic hardship by offering bill
payment assistance programs. We will educate customers on the reasons for and their
means of compliance with our safety and regulatory requirements. We will also identify
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
all customer groups, identify any gaps in service provision to those customers, and
propose new programs or changes to existing programs to close those gaps.
BP12. Promote efficient use of resources
Resource efficiency programs meet our customers’ desire for environmental
solutions that save money as well as contributing towards the Climate Protection Plan
goals. We will promote resource efficiency by dedicating the tactical staffing and
budgetary resources necessary to reach maximum deployment of economically feasible
resource efficiency. We will revise and document our long-term efficiency strategies by
updating our 10-year EE goals every three years and updating our water efficiency goals
every five years in the Urban Water Management Plan.
Demand Side Management Program Portfolio
The efficiency and conservation programs are designed to help customers reduce water,
natural gas and electricity usage by incentivizing efficiency improvements and promoting
behavior modifications. The overall portfolio goals, described more fully below, are to
help all classes of customers achieve cost-effective efficiency in a way that is most
convenient for them. The efficiency programs are being developed in a way to meet or
exceed Council approved goals for each utility.
Overall Portfolio Goals
o Provide comprehensive efficiency programs to enable all customer classes to
reduce use of water, natural gas and electricity.
o Leverage opportunities, whenever possible, to promote the testing, evaluation
and deployment of innovative technologies and program designs through
demonstration projects and pilot programs.
o Enhance outreach to customers, particularly those who are harder to reach, such
as small businesses, renters, and low-income residents.
o Engage in ongoing program improvement and evaluation.
o Coordinate with City departments and other agencies to provide comprehensive
efficiency programs.
Program Rationale and Development
Staff utilized the following guidelines in developing and implementing each of the
efficiency programs in the Plan:
• Programs shall be cost-effective on a CPAU combined utility basis. Some
residential items, such as washing machines, dishwashers, and insulation are not cost-
effective on electricity alone, but are when considering all utility commodities. Other
items, such as window replacements, remain not cost-effective even when all utility
savings are calculated and are not, therefore, rebated. Limited-time promotion is offered
for emerging technologies such as LED lighting.
• Programs shall be similar in nature to those available in surrounding
communities, for ease of customers and of contractors.
• Programs for hard-to-reach customers (low-income) are designed to gain as
much customer involvement as possible, including providing direct installation of
efficiency items at no cost to the customer. Other customer groups will be expected to
participate in the costs of efficiency implementation.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
• Programs will not incent customers to install new high-use equipment—for
example; customers will not be rebated for the installation of new residential air
conditioners where none has existed previously.
• Funding for programs should be reasonably balanced across residential and non-
residential customer classes in similar proportion to their payments of utility Public
Benefit charges.
• Existing programs are screened every year and programs budgets adjusted
annually to achieve goals optimally.
Staff continuously monitors developing technologies and other market activities to
promote various efficiency measures within the City. Efficiency programs are evaluated
annually and updated whenever deemed necessary. In addition, the long term efficiency
potential is assessed every three years. The portfolio is designed to provide financial
incentives and psychological motivations as well as education about the benefits of a
variety of efficiency and conservation measures for Palo Alto residents.
Expected Efficiency Program Budget and Related
Savings
The DSM Plan envisions that all three utilities will meet or exceed Council-approved
efficiency goals through the implementation of current in-house and third-party
administered programs, as well as the addition of new third-party programs. In order to
achieve the goals set by Council, programs will need to be available for all customer
groups with sufficient funding and in-house staff to manage the portfolio. At this time,
contracts are being developed for Council approval, and the related budgetary and
staffing requirements, including a request for one additional employee, are also up for
approval. Without approval of this funding, staffing, and contracting, staff will need to
return to Council with reduced efficiency projections and goals.
The programs in the DSM Plan will be funded by CPAU’s public benefits charge as well
as supply funds. Budgets are reported by program under three categories: direct
customer rebates, administrator contract costs, and other expenses including staffing for
in-house program management, marketing, education, and so on. The projected
resource savings over the next three years are shown in the table below. The savings
are compared to the City’s efficiency goals.
Incremental Annual Efficiency Savings (percentage of estimated Citywide use)
FY2012 FY2013 FY2014
Electricity Plan 0.77% 0.75% 0.76%
Goal 0.65% 0.70% 0.75%
Natural Gas Plan 0.52% 0.53% 0.53%
Proposed
Goal 0.45% 0.50% 0.55%
Water Plan ~1.0% ~1.0% ~1.0%
Goal
(2005 UWMP) 0.3% 0.3% 0.3%
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Based on the projected program budget and savings, the levelized cost for electric and
gas EE is estimated at $0.056/kWh and $0.535/therm in FY 2012. By comparison, the
cost of electric and gas EE in FY 2010 based on reported savings and actual program
costs was $0.05/kWh and $0.42/therm. EE is getting more expensive, as the City goes
into harder-to-reach and less cost-effective technologies and 3rd party administrators are
used to reach higher goals. However, in comparison to new renewable energy
purchases, the levelized cost of energy efficiency is still a bargain for the City.
Proposed Electric Energy Efficiency Portfolio Budget
By Funding Sources and Expenses
FY 2012 Contracts
(3rd Party) Direct Rebates
Other
(Includes In-
house Admin)
Annual
Gross
Savings
(kWh)
Public Benefits $976,000 $1,077,000 $720,000 6,960,003
Supply Resources*$925,000 $0 $0 2,700,000
Total $1,901,000 $1,077,000 $720,000 9,660,003
*Enhanced Right Lights+ program administration.
By Market Sector
Residential programs account for 24% of the electric efficiency program budget and 17%
of the savings. Details of the program budgets are shown in Appendix A.
Contracts
(3rd Party) Direct Rebates
Other
(Includes In-
house Admin)
Annual
Gross
Savings
(kWh)
Residential $311,000 $227,000 $305,000 1,650,000
Commercial,
Industrial,
Institutional (Non-
Residential)
$1,590,000 $850,000 $415,000 8,001,003
Subtotals $1,901,000 $1,077,000 $720,000 9,651,003
Total Cost $3,548,000
Electric Savings by End Use
Non-residential efficiency savings are expected to make up around 83% of the portfolio
savings. Lighting remains a dominant source of electric savings, although other end
uses will increase due to new programs emphasizing other end uses. It should be noted
that lighting, which is currently the most cost-effective efficiency measure for all types of
customers, will have a slowly declining piece in the total potential as federal and state
standards for lighting efficiency are upgraded over the next few years. Other measures,
which are currently less cost-effective to implement, will assume a greater percentage of
the total potential. Staff estimates that some of these less cost-effective measures will
become increasingly less expensive to implement over time. In addition, some new
Light Emitting Diode (LED) lighting technologies will become less costly and have higher
6 of 27
Demand Side Management Implementation Plan for FY 2012 to FY 2014
quality output over the next three to five years, and thus increasing their portion of the
efficiency potential.
Projected Electric Efficiency Savings
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2012 2013 2014
Year
MW
h
Nonres New
Nonres N Const
Nonres Water Heat
Nonres Refrig
Nonres HVAC
Nonres Light
Nonres Electronic
Nonres Appl.
Res New Program
Res HER
Res N Const
Res Lighting
Res HVAC
Res Water Heat
Res Shell
Res Appliance
Note: Savings drop slightly after FY2012 due to lighting efficiency standards.
Proposed Natural Gas Energy Efficiency Portfolio Budget
By Funding Sources and Expenses
FY 2012 Contracts
(3rd Party) Direct Rebates
Other
(Includes In-
house Admin)
Annual
Gross
Savings
(Therm)
Public Benefits $305,000 $335,000 $170,000 142,000
Supply Resources*$140,000 $0 $0 17,675
Total $445,000 $335,000 $170,000 159,675
*Solar Water Heating and new water direct install measures.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
By Market Sector
Residential programs account for 32% of the gas efficiency program budget and 42% of
the savings. Details of the program budgets are shown in Appendix A.
Contracts
(3rd Party) Direct Rebates
Other
(Includes In-
house Admin)
Annual
Gross
Savings
(Therm)
Residential $265,000 $80,000 $65,000 67,500
Commercial,
Industrial,
Institutional (Non-
Residential)
$180,000 $255,000 $105,000 92,175
Subtotals $445,000 $335,000 $170,000 159,675
Total Cost $904,000
Gas Savings by End Use
Non-residential efficiency savings are expected to make up around 58% of the portfolio
savings.
Projected Natural Gas Efficiency Savings
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2012 2013 2014
Th
e
r
m
s
Res New
Nonres New Construction
Nonres Water Heating
Nonres HVAC
Res Other
Res HVAC
Res Water Heating
Res Shell
Res Appliance
8 of 27
Demand Side Management Implementation Plan for FY 2012 to FY 2014
Proposed Water Efficiency Portfolio Budget
By Funding Sources and Expenses
FY 2012 Contracts
(3rd Party) Direct Rebates
Other
(Includes In-
house Admin)
Annual
Gross
Savings
(CCF)
Public Benefits $330,000 $15,000 $110,000 63,813
Supply Resources $0 $0 $0
Total $330,000 $15,000 $110,000 63,813
By Market Sector
Residential programs account for 35% of the water program budget and 30% of the
savings. Details of the program budget are shown in Appendix A.
Contracts
(3rd Party) Direct Rebates
Other
(Includes In-
house Admin)
Annual
Gross
Savings
(CCF)
Residential $90,000 $15,000 $55,000 19,113
Commercial,
Industrial,
Institutional (Non-
Residential)
$240,000 $0 $55,000 44,700
Subtotals $330,000 $15,000 $110,000 63,813
Total Cost $455,000
Water Savings by End Use
Non-residential efficiency savings are expected to make up around 70% of the portfolio
savings.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Water Efficiency Plan
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
FY 11-12 FY 12-13 FY 13-14
Year
Wa
t
e
r
S
a
v
i
n
g
s
(
G
a
l
l
o
n
s
)
Nonres Indoor Audits
Nonres Process Rebates
Nonres Landscape Audits
Nonres Landscape - Conversions
Nonres Landscape - WBICs
Nonres Appliances - Spray Valves
Nonres Appliances - Clothes
WashersNonres Toilets - Installation
Nonres Urinals - Retrofit
Residential Landscape -
ConversionsResidential Landscape - WBICs
Residential Appliances - Clothes
WashersResidential Showerheads
Residential Toilets - MFD Rebates
Residential Toilets - SFD Rebates
Residential Audits - MFD
Residential Audits - SFD
Water savings can continue over the long-term, particularly for such items as replacing
washing machines with more efficient ones and removing turf-grass with native and Bay
Friendly landscaping. Other informational and educational programs tend to have a
shorter impact. For this reason, while CPAU will continue to put resources into
communication and audits, the primary emphasis will remain those programs that result
in a replacement of a long-lived appliance or landscaping measure.
10 of 27
Demand Side Management Implementation Plan for FY 2012 to FY 2014
Quantitative Program Targets
The entire portfolio is developed to achieve the program targets from all customer
classes and utilities. The proposed targets by program and end use, as shown below,
may be modified due to funding/staffing restrictions or actual market conditions.
Projected Savings by Program and End Use for Electric and Natural Gas
FY 11-12 FY 12-13 FY 13-14
Customer
Class Program Name End Use kWh Therms kWh Therms kWh Therms
Res. Smart Energy Appliance 250,000 10,000 250,000 10,000 250,000 10,000
Res. Smart Energy Shell 30,000 12,000 30,000 12,000 30,000 12,000
Res. Smart Energy Water Heat 1,000 3,000 1,000 3,000 1,000 3,000
Res. Smart Energy HVAC 4,000 10,000 4,000 10,000 4,000 10,000
Res. Refrig. Recycl. Appliance 300,000 300,000 300,000
Res. Lighting Prog. Lighting 100,000 75,000 56,250
Res. Low Income Lighting 120,000 108,000 0 97,200 0
Res. Low Income Shell 5,000 2,500 5,000 2,500 5,000 2,500
Res. Low Income Water Heat 1,500 0 1,500 0 1,500
Res. Water Programs Water Heat 12,000 0 12,000 12,000
Res. New Construction New Const. 25,000 25,000 25,000
Res. Home Energy
Reports Other 800,000 15,000 800,000 15,000 800,000 15,000
Res. Solar Water Heat Water Heat 1,500 1,500 1,500
Res. Multi-Fam Hot
Water Water Heat 2,500 2,500
Nonres. Com. Adv. Reb. Appliance 150,000 150,000 0 150,000 0
Nonres. Com. Adv. Reb. Electronics 70,000 70,000 0 70,000 0
Nonres. Com. Adv. Reb. Lighting 2,000,000 1,000,000 0 1,000,000 0
Nonres. Com. Adv. Reb. HVAC 200,000 18,000 200,000 18,000 200,000 18,000
Nonres. Com. Adv. Reb. Refrigeration 435,000 435,000 0 435,000 0
Nonres. Enovity Efficiency Water Heat 15,000 0 15,000 0 15,000
Nonres. Enovity Efficiency Lighting 450,000 450,000 0 450,000 0
Nonres. Enovity Efficiency HVAC 250,000 20,000 250,000 20,000 250,000 20,000
Nonres. Right Lights+ Lighting 2,160,000 2,110,000 0 2,035,000 0
Nonres. Right Lights+ HVAC 0 50,000 75,000
Nonres. Right Lights+ Refrigeration 540,000 540,000 0 540,000 0
Nonres. New Construction New Const. 700,000 23,000 700,000 23,000 700,000 23,000
Nonres. Solar Water Heat Water Heat 500 500 500
Nonres. Water Install Water Heat 105,070 15,675 105,070 15,675 15,675
Nonres. Vending Miser Controls 214,933 214,933 214,933
Nonres. Labs Controls 750,000 1,500,000 1,750,000
Total Gross Savings 9,660,003 159,675 9,373,003 162,175 9,438,383 162,175
Total Est. Net Savings 7,728,003 127,740 7,498,403 129,740 7,550,707 129,740
Legend:
Italics--if contract continued
Underlined--potential new
program
Estimated Load 1,000,000,000 30,745,141 1,000,000,000 30,745,141 1,000,000,000 30,745,141
Efficiency as Percent of Load (net for
electric, gross for natural gas) 0.77% 0.52% 0.75% 0.53% 0.76% 0.53%
Current Goals 0.65% 0.45% 0.70% 0.50% 0.75% 0.55%
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Projected Savings by Program and End Use for Water
Customer
Class Program Name
Type/End
Use
FY2012
Gallons
FY2013
Gallons
FY2014
Gallons
Residential Water-Wise House Call – Single Fam Audit 4,161,000 4,161,000 4,161,000
Residential Water-Wise House Call – Multi-Family Audit 365,000 365,000 365,000
Residential
High Efficiency Toilet Rebates –
Single Family Toilets 2,168,620 2,168,620 2,168,620
Residential
High Efficiency Toilets Rebates –
Multi-Family Toilets 1,437,300 1,437,300 1,437,300
Residential Low-Flow Showerheads Fixture 206,230 206,230 206,230
Residential High Efficiency Washer Rebates Appliances 3,169,350 3,169,350 3,169,350
Residential
Landscape Rebate Program -
Weather-Based Irrigation Controller Landscape 180,000 180,000 180,000
Residential
Landscape Rebate Program -
Landscape Conversion Landscape 2,608,550 2,608,550 2,608,550
Nonresidential Urinal Flush Valve Retrofit Toilets 321,200 321,200 321,200
Nonresidential High Efficiency Toilet Direct Install Toilets 871,898 871,898 871,898
Nonresidential High Efficiency Washer Rebates Appliances 377,220 377,220 377,220
Nonresidential Pre-Rinse Spray Valve Distribution Appliances 164,250 164,250 164,250
Nonresidential Large Landscape Surveys Landscape 4,371,713 4,371,713 4,371,713
Nonresidential
Landscape Rebate Program -
Weather-Based Irrigation Controller Landscape 1,750,000 1,750,000 1,750,000
Nonresidential
Landscape Rebate Program -
Landscape Conversion Landscape 14,729,599 14,729,599 14,729,599
Nonresidential Water Efficient Technology Process 9,350,000 9,350,000 9,350,000
Nonresidential CII Indoor Water Use Survey Audit 1,500,000 1,500,000 1,500,000
Total Gal 47,731,929 47,731,929 47,731,929
Total CCF 63,813 63,813 63,813
MG 48 48 48
MGD 0.131 0.131 0.131
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Current Programs
Residential Smart Energy Program
The City gives financial rebates to residents who install energy efficient appliances and
equipment in their homes or on their property. Among these are home heating and
cooling systems (HVAC), insulation, water heaters, insulation and power strips. Palo
Alto also pays rebates to customers who have their older model, inefficient refrigerators
and freezers recycled through a City program. Additionally, the City sponsors programs
to encourage consumers to install Compact Fluorescent Light (CFL) and Light Emitting
Diode (LED) bulbs and fixtures, including LED holiday lights.
Residential Home Energy Reports
CPAU provides City residents with individualized reports comparing their home energy
use with that of 100 similarly sized homes. An interactive online web portal
(www.cityofpaloalto.org/HomeEnergyReports) also offers tips and suggestions on
reducing electric and natural gas usage. In November 2010, the first month of
implementation, this program has been positively received, with only 34 opt-outs from
over 18,600 reports.
Residential Energy Assistance Program (REAP)
The City provides low-income residents---at no cost---home lighting and heating system
upgrades as well insulation for walls and roofs and weather-stripping for doors and
windows.
Residential Green@Home
CPAU offers free in-home audits through a program coordinated by Acterra, a local, non-
profit, volunteer environmental organization. At the end of the audit, participants receive
personalized efficiency tips along with simple efficiency-improvement items including,
Compact Fluorescent lamps), faucet aerators and energy monitors.
Residential Water Programs
Through a partnership with the Santa Clara Valley Water District (SCVWD), Palo Alto
provides residents with programs to improve their water-use efficiency. These programs
include indoor and outdoor home water-use audits, as well as rebates for toilets,
washing machines, landscape upgrades and weather-based controllers for irrigation
systems.
PaloAltoGreen
Residents and businesses that are willing to pay a small price premium offset their own
home or business electric use with 100% renewable energy.
Green Building Program
The Green Building Program requires building permit issuance based on a project’s
scope of work. The program mandates that all new construction achieve 15% energy
savings beyond that required by the state energy code, and provides financial incentives
to achieve additional savings for projects that exceed those minimum requirements.
The program requires all non-residential renovation costing more than $100,000 to obtain
an ENERGY STAR® Portfolio Manager Rating from the U.S. EPA, allowing an owner or
property manager to track future energy and water consumption of the building project.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
The applicant inputs utility data and receives an energy score on a scale of 1 to 100,
relative to similar buildings nationwide.
The program also requires all residential renovations with a cost of more than $100,000
to receive a California Whole-House Home Energy Rating (HERS II) developed by the
California Energy Commission. This rating provides on-site evaluation of the energy
performance of the home and offers analysis of the cost-effectiveness of potential energy
efficiency improvement projects.
New Construction Rebates and HERS Audits
Both residential and commercial utilities customers who exceed Green Building Program
requirements when going through the permit process for new construction are eligible to
receive incentive payments. Residents completing a retrofit are required to have a
Home Energy Rating System (HERS) audit performed. The Planning and Utilities
Departments coordinate the customer application and payment processes.
Educational Programs and Workshops
A variety of educational programs and workshops are held throughout the year.
Typically, residential workshops on water and energy programs occur in the spring near
Earth Day and in June for the “Summer Workshop Series.” Facility manager workshops
are held about three times per year for large business customers. In addition, customers
receive monthly emailed newsletters on a variety of efficiency matters.
Commercial Advantage Program
Business customers are offered rebates for many items of equipment, including the
following: installing lighting upgrades, wall and ceiling mounted motion sensors, LED
exit signs, boilers, pipe insulation, variable frequency drives, computer power
management software, night covers for refrigerated display cases, anti-sweat heater
controls for coolers/freezers, auto-closers for cooler doors, window film, and custom
electric and natural gas saving projects. Non-profit organizations can get extra local
assistance in working through the application and rebate process from the third-party
“Connect the Dots” Program.
Right Lights+ Program
Through this program provided by the third party administrator, Ecology Action, small
businesses receive extra assistance in implementing efficient equipment. Small
business customers can request onsite audits and efficiency rebates on a variety of
lighting, sensors and commercial kitchen upgrades, in addition to door gaskets, LED exit
signs, vending machine controls, strip curtains for coolers and freezers, as well as
customized projects.
Commercial Refrigeration
Business customers with commercial kitchens can receive rebates for equipment
upgrades that typically represent a longer return on investment. These include walk-in
cooler controls and motors, as well as LED case lights for both displays and coolers.
Commercial and Industrial Energy Efficiency Program
Large businesses can get assistance from the contractor Enovity with building
commissioning services. This assistance includes reviewing original lighting and
heating/cooling systems and their operating specifications. Customers are then helped
14 of 27
Demand Side Management Implementation Plan for FY 2012 to FY 2014
in obtaining rebates for replacing chillers, controls, linear fluorescent lighting, occupancy
sensors, boilers and insulation.
Commercial and Industrial Water Program
As with residentials, CPAU partners with the SCVWD to provide all non-residential with
indoor and outdoor water audits along with rebates for toilets and washing machines,
landscape conversions and weather-based controllers for irrigation systems.
Water Efficient Technologies (WET) Program
In partnership with the SCVWD, CPAU provides incentives to businesses for upgrading
or replacing equipment that improves water use efficiency in various facility processes.
Rebates may cover up to 50% of the project cost.
PV Partners
This program provides rebates to businesses and residents who install solar electric
systems, also known as photovoltaic (PV) systems.
Solar Water Heating
Incentives are provided to businesses and residents installing solar water heating.
Programs in Development for Near-Term Implementation
These programs are all in development for implementation in the next year, pending
funding and staffing constraints.
No-Interest Business Loan Program
This program will provide businesses with no-interest loans to install electric energy
efficient equipment. Loans can be up to 5 years in length. The program should begin by
mid-2011.
Operational Performance Reviews
Following the adoption of the state Green Building Code (CALGreen), the City Planning
and Utilities departments are developing a program to monitor and track the energy and
water use of residential and business structures after the completion of
construction/permitting processes, to ensure that facilities are kept operating at their
optimal designed performance level.
ENERGY STAR® Profile Manager Building Automatic Upload for Rating
To make it easier for business customers to participate in monitoring and evaluating their
building’s energy use, this program would allow owners and tenants to have their energy
usage automatically uploaded from the utility billing system to the Profile Manager
database. The most efficient buildings can then receive recognition from ENERGY
STAR for performance excellence.
Hotel Efficiency Program
Rebates will be offered to hotels that install combination occupancy sensors and system
operating controls for lighting, air conditioning and plug loads. This program will be
implemented through current small business programs, but perhaps marketed
separated. All of these measures reduce power use when rooms are unoccupied.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Others, To Be Determined
A Request for Proposals has been issued for the development of new and innovative
efficiency programs. Based on the responses, recommended contracts and programs
will be brought to City Council in mid-2011. If these programs and related funding and
staffing requirements are not approved, efficiency goals will need to be reduced. Some
of the promising programs include enhancing Right Lights+ for small and medium
businesses to include more savings measures, continuing the low-income replacement
program (REAP), a labs’ efficiency program, programs for quick installation measures for
business, water efficiency, and vending misers (controls for refrigerated vending
machines).
Ideas Under Evaluation for Potential Implementation
These programs are currently in review for possible implementation in the next two to
three years. After review, not all programs will be recommended for approval. Some
programs may begin as a pilot project and possibly expand throughout the utility after a
period of implementation and review.
Energy Upgrade California
This program, currently implemented by the Investor Owned Utilities (IOUs) but in a non-
cost-effective manner, offers tiered incentives to customers for undertaking
comprehensive energy efficiency retrofits. Energy savings are verified by HERS rated
professionals. CPAU is currently evaluating the development of a similar program within
Palo Alto in a way that can be piloted and cost-effective.
Multi-Family Incentives
This program concept would target apartment and condo owners or tenants by offering
rebates and other assistance to install efficiency improvements.
Point of Property Sale Efficiency Requirements
This initiative involves researching the legal requirements, administrative process and
market acceptance of providing incentives for installation of efficient and water and
energy-using equipment at the time of building sale. Such programs are known
throughout the state as either Residential or Commercial Energy Conservation
Ordinances (also well known as RECO or CECO programs)
Residential No-Interest Loan Program
After the “No Interest Business Loan Program” has been in place and successfully
implemented for at least one year, it will be reviewed for cost and risk management
factors that might warrant expansion of the program to residential customers.
Feed In Tariff
The potential for a program that provides a guaranteed fixed-price with a fixed-term
payment for customers who generate their own renewable energy is under review
Tap Water Recycling Program
This program would save the potable water that normally runs wastefully down the drain
while the customer waits for hot water by providing incentives for customers to install a
pump at the sink to inject the cold water back into the plumbing system, resulting in
immediate hot water.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Appendix A: Portfolio Details
Budgets are reported by program, differentiating those that pay customer rebates
directly versus administrator contract costs. Other expenses, including staffing,
marketing, education, and other items, are listed separately. To make the document
more useful to the reader, however, savings expectations are shown by customer end-
use.
Proposed Electric Energy Efficiency Detailed Program Budget*
Customer Class Program Name Direct Rebates Contract Other Exp.** Annual Cost
Residential Smart Energy Rebates $175,000.00 $200,000.00 $375,000.00
Residential Green@Home $60,000.00 $60,000.00
Residential
Refrigerator
Recycling $7,000.00 $25,000.00 $15,000.00 $47,000.00
Residential Lighting Programs $25,000.00 $25,000.00 $50,000.00
Residential Low Income (REAP)+ $101,000.00 $25,000.00 $126,000.00
Residential New Construction $20,000.00 $15,000.00 $35,000.00
Residential Home Energy Reports $125,000.00 $25,000.00 $150,000.00
Nonresidential Com. (CAP) Rebates $400,000.00 $150,000.00 $550,000.00
Nonresidential
Enovity Large
Business $300,000.00 $250,000.00 $50,000.00 $500,000.00
Nonresidential
Right Lights+ Small
Business+ $500,000.00 $100,000.00 $600,000.00
Nonresidential New Construction $50,000.00 $50,000.00 $50,000.00 $150,000.00
Nonresidential Keep Your Cool $25,000.00 $75,000.00 $100,000.00
Nonresidential Hospitality $25,000.00 $150,000.00 $175,000.00
Nonresidential
Vending Miser
Controls $90,000.00 $15,000.00 $105,000.00
Nonresidential Labs $50,000.00 $250,000.00 $50,000.00 $350,000.00
Nonresidential Wave One $75,000.00 $75,000.00
Nonresidential Program Review &
EM&V $150,000.00 $100,000.00
Totals $1,077,000.00 $1,901,000.00 $720,000.00 $3,548,000.00
PBC Portion $1,077,000.00 $976,000.00 $720,000.00 $2,623,000.00
Supply Portion $925,000.00 $0.00 $925,000.00
The legend for numbers above includes italics—programs that are being recommended for continual
delivery and contract renewal by a third-party administrator and underlined—programs that are being
recommended as a new contract. Programs delivered by 3rd party administrators are in bold, while
those delivered by in-house staff are not.
*Does not include key accounts, research or renewable energy.
+Third-party administered program includes the delivery of rebates to customers by administrator as a part
of a direct-installed or reduced upfront cost program.
**Includes in-house staff, marketing and communication, and all other program delivery expenses.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Proposed Natural Gas Energy Efficiency Detailed Program
Budget*
Customer Class Program Name Direct
Rebates
Contract Other Exp.** Annual Cost
Residential Smart Energy Rebates $50,000.00 $25,000.00 $75,000.00
Residential Low Income (REAP)+ $18,000.00 $10,000.00 $75,000.00
Residential New Construction $5,000.00 $5,000.00
Residential Home Energy Report $125,000.00 $15,000.00 $140,000.00
Residential Solar Water Heating $25,000.00 $75,000.00 $15,000.00 $115,000.00
Nonresidential Com. Rebates (CAP) $75,000.00 $25,000.00 $100,000.00
Nonresidential Enovity Lg Business $150,000.00 $100,000.00 $50,000.00 $300,000.00
Nonresidential Right Lights+ Sm Bus $15,000.00 $15,000.00
Nonresidential New Construction $25,000.00 $25,000.00
Nonresidential Solar Water Heating $5,000.00 $25,000.00 $15,000.00 $45,000.00
Nonresidential Hot Water Direct Install $41,000.00 $15,000.00 $55,000.00
Total $335,000.00 $399,000.00 $170,000.00 $950,000.00
PBC Portion $335,000.00 $143,000.00 $170,000.00 $794,000.00
Supply Portion $156,000.00 $156,000.00
Programs delivered by 3rd party administrators are in bold, while those delivered by in-house
staff are not.
*Does not include key accounts programsrch.
+Third-party administered program includes the delivery of rebates to customers by administrator
as a part of a direct-installed or reduced upfront cost program.
**Includes in-house staff, marketing and communication, and all other program delivery
expenses.
Proposed Water Conservation Detailed Program Budget
Customer
Class Program Name
Direct
Rebates Contract
Other
Exp.** Annual Cost
Residential WaterWise Audits $15,000.00 $5,000.00 $20,000.00
Residential Climate-Controlled Irrigation+ $10,000.00 $10,000.00
Residential High Efficiency Toilets+ $15,000.00 $5,000.00 $20,000.00
Residential Landscape Rebates+ $50,000.00 $15,000.00 $65,000.00
Residential Washing Machines $15,000.00 $30,000.00 $45,000.00
Business Indoor Audits $25,000.00 $5,000.00 $30,000.00
Business Climate-Controlled Irrigation+ $5,000.00 $5,000.00
Business Landscape Rebates+ $100,000.00 $35,000.00 $135,000.00
Business High Efficiency Toilets+ $35,000.00 $5,000.00 $40,000.00
Business Washing Machines+ $25,000.00 $5,000.00 $30,000.00
Business Water Efficient Technology+ $50,000.00 $5,000.00 $55,000.00
Total $15,000.00 $330,000.00 $110,000.00 $455,000.00*
Programs delivered by 3rd party administrators are in bold, while those delivered by in-house staff are
not.
*Does not include Key Accounts programs.
+Third-party administered program includes the delivery of rebates to customers by administrator as a part of a direct-
installed or reduced upfront cost program.
**Includes in-house staff, marketing and communication, and all other program delivery expenses.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Behavioral Techniques in Program Design to Overcome Barriers
There are many barriers to the implementation of even cost-effective programs,
particularly for residential customers. Even when efficiency upgrades are technically
feasible and cost-effective, it can be difficult to gain customer acceptance and
implementation of upgrades. In order to overcome these issues, staff developed a
brought suite of programs within the portfolio.
o Social Norms: People tend to change behavior to become closer to the norm
when informed of it. The Home Energy Reports address this barrier.
o Feedback: Simply providing information on the results of their behavior tends to
produce changes. Feedback is generally the most effective the more frequently
it is given. The Water-Wise Audit, Green@Home Energy Audit and Home
Energy Report programs are all designed with this barrier in mind.
o Status Quo Bias: This is a tendency to prefer the default option when presented
with multiple choices. Setting up the Home Energy Report program as an opt-out
works to combat this bias.
o Goal Setting: Setting specific goals has been demonstrated to be effective in
achieving reductions. The Green@Home and Home Energy Report programs
include goal setting provisions.
o Discounting the Future: People tend to choose the lower cost option now,
even if this results in a higher cost long-term. The Smart Energy/Water Rebates
and High Efficiency Toilet rebate programs work to offset this issue.
o Foot-in-the-Door Technique (Small Concessions): People are more likely to
make a big change if first asked to do a series of smaller changes. The CFL and
LED holiday light programs are designed to help people make a small initial step.
o Bounded Rationality and the Paradox of Choice (Choice Overload):
Providing customers with a smaller number of energy consumption tips makes it
more likely that they will opt for one of the options. Newsletters and education
pieces present a few tips at a time to help with this.
o Self-Efficacy: People have to perceive that change will result in savings before
doing anything. Educational material attempts to overcome this barrier.
o Cognitive Dissonance: People avoid clashes between self-perceptions and
their actions. A person making a small change (such as installing a CFL) may
make more future energy efficient decisions because that person now believes
that he or she is someone who saves energy. The CFL and LED holiday light
programs are designed to help here.
o Loss Aversion: Most people value a potential loss two or more times greater
than a potential gain. Energy efficiency programs are more effective if framed in
terms of avoided energy and monetary losses rather than future savings.
Educational material provides information to overcome this barrier.
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Appendix B: Policy Background and Program Goals
Electric Efficiency Goals
To meet both State-mandated and locally-desired goals, the City Council approved a
Ten-Year Energy Efficiency Plan in April 2007. In May 2010, City Council approved an
update to the Ten-Year Electric Energy Efficiency (EE) Plan, with new annual EE goals
that are more than double those approved in the 2007 plan. The new goals also aim to
meet state mandates requiring EE to be given first priority in evaluating utility supply
options. By law, the Ten-Year Electric EE Plan must be updated and submitted to the
CEC every three years.
2010 Ten-Year Electric Energy Efficiency Plan (EE Plan) highlights:
A 10-year cumulative goal of a 7.2% reduction in projected annual energy use to
be achieved by FY 2020. This is double the goal of the 2007 plan and
represents savings on top of all the savings that will occur “naturally” because
there are increasingly more efficient products in the market.
The EE Plan reaches its cumulative savings goal of 7.2% by 2020 by starting
with an annual incremental savings goal for FY 2011 equal to 0.6% of projected
annual electricity use. That goal then increases 0.05% per year to reach a 0.8%
annual savings goal by FY 2015; the 0.8% target will then be maintained until FY
2020.
In addition to the $1.8 million per year Public Benefits funds used for EE
measures and programs, the EE Plan calls for using up to $1.2 million per year
from supply funds to implement programs for three years starting in FY 2011.
Gas Efficiency Goals
The Council-approved 2007 Ten-Year Energy Efficiency Plan also included cumulative
annual gas energy efficiency goals for each year between 2008 and 2017, adding up to
a 3.5% cumulative annual gas load reduction by 2017, starting at 0.25% in the first year
of the program and increasing throughout until the cumulative reduction is reached.
Separately from therm reduction, the projected greenhouse gas reductions based on
these 2007 gas efficiency targets were incorporated into the 2007 Climate Protection
Plan. That plan requires the City to reduce its greenhouse gas emissions to 90% of the
2005 level by 2020 and CPAU’s gas efficiency programs are accountable for 7,300
metric tonnes of CO2 reduction in 2020.
In August 2010, the GULP was updated to include a strategy of ensuring deployment of
all feasible, cost-effective energy efficiency measures by:
(a) Developing and implementing a revised ten-year gas efficiency plan every
three years that includes a reasonable carbon price premium for traditional
gas supplies; and
(b) Considering the impact (costs, benefits, and GHG emissions) of
substituting electricity-using appliances for gas-using appliances and vice
versa as a factor in revising the ten-year gas efficiency plan
To meet the goals and implement the GULP strategy above, a 10-year Gas Energy
Efficiency Proposal is currently being developed and will be presented to Council for
review and approval in 2011. The new targets will be established by taking into account
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
gas efficiency achievements between 2008 and 2010, including the gas savings from the
solar water heating program.
Water Efficiency Goals
The guiding document for the water utility efficiency programs has been the 2005 Urban
Water Management Plan (UWMP), which establishes goals for calendar rather than
fiscal years. This UWMP is currently undergoing a revision that will be presented to the
UAC and Council in 2011. The UWMP is updated every five years and outlines the long-
term supply and demand-side issues and policies impacting the water utility. Until that
revised Plan is approved, the primary water reduction goals are the Council-mandated
20% water use reduction by 2020 and the 2005 plan goal that efficiency programs will
reduce water purchases by 4% by the year 2030. The current annual goal for calendar
year 2010 is a cumulative savings of 2.6% over projected water use.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Appendix C: Other Implementation Issues
Program Implementation/Delivery Mechanisms
CPAU’s efficiency programs must either be implemented by internal staff or by third-
party agents under contract to the City. Whether or not internal staff directly implements
a program, any new initiative requires significant staffing commitments by CPAU. For
instance, when a new third-party program is desired, staff must develop a request for
proposals (RFP) and related scope of work, work with internal City departments to issue
the RFP and review responses to it, complete final contracts and Council approval
documents, work with the contractor on the development and implementation of the
program and reporting process, assist in marketing the program to customers, inspect
work upon completion of each job, administer contract payments and timing, provide
feedback on program effectiveness and coordinate the evaluation of the program are
appropriately evaluated by a third-party Measurement and Verification consultant. In
addition to the process outlined above, working with local agencies in a public-
partnership arrangement, as opposed to contracting with a more traditional vendor,
requires extensive education on the part of staff to ensure that the local agencies
understand the complex and specific state and federal reporting requirements for all
programs. Thus, regardless of the delivery mechanism selected, the addition of any new
efficiency initiatives requires considerable staffing resources.
Programs are delivered by the following groups
a) CPAU Staff members: Smart Energy/Water Rebates, Lighting Incentive Program,
Workshops and Education, New Construction, Photovoltaic (PV) Rebates, and
Commercial Advantage Program rebates.
b) Third party program administrators: Home Energy Reports (Opower), Appliance
Recycling (Jaco Environmental), Low Income direct installation (Synergy), Right
Lights+ (Ecology Action), Commercial and Industrial Energy Efficiency Program
(Enovity), water audits and rebates (Water-Wise Consulting and SCVWD),
Meterlinks (Automated Energy), Solar Water Heating (California Center for
Sustainability), Energy Audits (Vendor TBD) and e-mailed newsletters (Tech
Resources).
c) Community members/nonprofit agencies: Home Energy Survey (Green@Home
with Acterra), non-profit assistance (Connect the Dots), and green building programs
for downtown (Wave One).
Incentive levels
Incentive levels are set at a level that should encourage customer participation, maintain
program cost-effectiveness and sustain relatively level rate impacts while including a
consideration for customer equity. In general, rebates are set at about 50% of the
incremental cost for increasing to the more cost-effective technology. For some areas,
particularly low-income, very small commercial or other hard-to-reach customers or
where programs need to be ramped up dramatically, incentives may be set at higher
rates.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Efficiency Program Pilots and Requests for Proposals
New and innovative program pilots are and will continue to be used to test concepts and
new technologies whenever possible prior to full-scale launch. Each individual program
area may use pilots to test the implementation of concepts, processes, marketing
techniques and the integration of standards. In addition, CPAU has and will continue to
issue annual RFPs to replace/renew current programs and solicit innovative, cost-
effective program ideas.
CPAU Innovation Program
An Innovation Program and associated funding mechanism is being discussed as a
possible way to promote the testing, evaluation and deployment of new technologies or
innovative applications that could be used for the benefit of CPAU customers. These
technologies could be in the area of energy renewable generation, energy/water
efficiency and conservation or process improvement. The technologies or programs that
are deployed will be evaluated based on their ability to provide direct benefits to
customers, return positive cost to benefit for the investment and provide environmental
benefits.
As a utility in the heart of Silicon Valley, CPAU staff has long been involved in supporting
and advising many companies on the viabilities and markets for their early stage
technologies. Such examples include:
o Geothermal heat pump systems,
o Small wind generation on roof tops,
o Boiler-burner based cogeneration applications for large buildings;
o In-home display devices of real-time energy consumption of equipment at
homes;
o Smart-meter based, predictive models of home appliance characteristics
to incentivize inefficient appliance replacement;
o Distribution feeder line monitoring and predictive maintenance algorithms;
o Small micro-turbines for electricity generation utilizing pressure
differentials in the City’s water distribution pipeline systems;
o Distributed energy storage systems;
o Optimization of electric vehicle charging and utilization;
o Cost-effective cloud-based deployment utility back end systems;
o Integrated tracking system of corporate GHG emissions; and so on.
In the process, City has succeeded in deploying or assisting customers in installing a
few of these technologies.
The new, more formalized innovation program could support and deploy ideas from the
local business community. It would also provide recognition to the City as a leader and
further enhance Palo Alto’s stature as technology and innovation hub in Silicon Valley.
CPAU is looking at developing a formal application process for organizations seeking
utility support in evaluating, testing, and deploying innovative technologies. If
implemented, the applications would be available at CPAU website and applications can
be filed at anytime, but a formal evaluation will likely take place on a quarterly basis. An
evaluation and selection criteria and timetable will also be posted on the web.
Applications would be evaluated based established criteria. Projects would be evaluated
on criteria that will be established at the time that proposals are released. The selected
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
criteria would include an evaluation of direct benefits to customers, positive cost to
benefit for the investment, environmental benefits and other pertinent criteria. The
Utilities Department innovation program may become a part of the City-wide “Test Bed”
process, which will have a similar evaluation role for innovation in new technologies.
Customer Outreach
CPAU staff members at all levels of the organization work hard to communicate with
customers through a variety of venues. Because customers have different needs for
information and seek out different media, every avenue possible is used to provide
information to customers when they need it. Customers can find out information from a
wide variety of sources from reading the web, print brochures and on-line
advertisements to seeing direct mail pieces, engaging in personal contact with customer
service or field representative staff, reading program brochures, attending training,
signing up for email newsletters and signing up for social networking are all employed to
engage customers. In addition, it is a well known axiom of marketing that people must
hear or see something at least ten times before retaining this in their memory. With this
in mind, CPAU has developed and continues to improve its wide customer outreach
activities. Utility bill inserts and information on return envelopes go out monthly.
Regular workshops and training are held for all customer classes on a variety of water
and energy topics. Both print and online advertising is used in a variety of format. Some
program information and brochures are sent directly to customers. Regular monthly
email newsletters are delivered to both residents and businesses, and the
PaloAltoGreen Facebook page is updated with information several times a week.
Promotion on the City’s website, brochures, monthly bill inserts, in local newspapers
through advertising, targeted press releases and other materials will be used. In
addition, CPAU will continue to develop its social network through the Facebook site and
regular emailed newsletters emphasizing efficiency activities. Workshops every spring
and summer will continue to be held to encourage greater levels of understanding in
different product areas. Staff will attend community events to provide basic education on
a variety of utility issues, particularly related to efficiency and renewable energy
programs. CPAU has developed an annual marketing calendar of promotional activities
and marketing pieces. This calendar is updated as often as necessary to address
changing conditions. The latest 2011 Marketing and Communication calendar is given
below:
CPAU 2011 Public Outreach
Bill Insert Topic Env./Bangtail Notes on bill Events Ads Other
Jan
1) Residential Prog.
Brochure
2) PA Green Mini-Insert
3) & 4) PWD:
Storm Drain Rebates
Hhold. Haz. Waste
Indoor
Water
Cons.
1) Streetlight
Outage Reporting
2) Beware
Contractor Calls
3) New Residential
Brochure Info
4) EV Chargers
1) MY CPAU
Ad: Ops-
Electric
2) UpToUs
Online
Banner
Ads
3) Chamber
Ad
1) Strat. Plan to
UAC
2) Quarterly
Newsletter
3) Emergency
Comm Plan
Feb
1) Call Before You Dig
2) Indoor Water Cons.
(High Efficiency Toilets)
3) & 4) PWD: Rollout
PAGreen
Bangtail
1) Urban Forest
Mgmt Plan
2) Greenlight Film
Festival
Facilities
Mgr
ENJOY!
Spring
Catalog Ad
1) Strategic
Plan-to
Council
2) Tip Card
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
New Zero Waste
Website
3) Lighting Efficiency
Changes
Revise
3) Utilities at a
Glance
Revise
Mar
1) Earth Day Newsletter
(with PWD et al)
2) Right Tree-Right Place
PAGreen
Bangtail
1) Greenlight Film
Festival
2) Earth Day Events
website
1) BAWS
CA 2011
Wrkshop
2) March
31 Alt. to
Lawn
1) MY CPAU
Ad: Ops-
WGW
2) PAWeekly
Visitor’s
Guide Ad
1) Quarterly
Update
Newsletter
2) Walking Gas
Leak Survey
Apr
1) Garden Tour
2) Landscape Rebates &
Workshops
3) Low-income Programs
4) Spring Lighting
Program
PAGreen
Bangtail
1) April
14 Film
Festival
2) Earth
Day
3) BAWS
CA –
Wrkshop
4) April 9
Native
Plants
UpToUs
Online
Banner Ads
(Flashing-
Water
Savings)
Apring Lighting
Incentive
Program
May
1) Gas Safety Brochure
2) Sustainable Living
3) PA Green Mini-Insert
4) PWD: Pest Control
Fridge
Rebates
1) Summer
Workshops
2) Water Supply
3) Right Tree Right
Place
1) MY CPAU
Ad: Eng.
2) ENJOY ad
3) UpToUs
Online ad
Jun
1) Water Quality Report
2) New UMS Program
PAGreen
Bangtail
New Rates next
month
Wrkshop
Series-
1) Land-
scaping
2) Home
EE
3) PV
4) SWH
Wkshop
1) PAWeekly
How-to Ad
2) UpToUs
Online ads
3) Chamber
Magazine
Ad
Jul
1) Fridge Rebate
2) Outdoor Conservation
3) Power Content Label-
2010 Final
4) FYI: PWD: Household
Haz. Waste
5) FYI: Urban Forest
Mgmt Plan
Keeping
Your Cool in
Summer
1) Pool Pump
Rebates
2) SMARTEnergy
Rebates
3) AlertSCC-sign-
up request
MY CPAU
Ad: Meter
Reader
Idea: ANNUAL
REPORT?
Aug
1) Rate
2) Keeping Cool without
AC
Outdoor
Water Cons.
1) Rate Changes
2) MUA Services
3) Keep Sewers
Clear
1) ENJOY ad
2) UpToUs
Banner ad
1) Res. Water
Survey
2) Gas Survey
3) Backflow
Prevention
Letters
Sep
1) Online Billing (MUA)
PAGreen
Bangtail
1) Landscape
Rebates
2) Solar Programs
3) Low Income
Programs
4) Reminder:
Outage URL
1) PA Wk
Info Guide
2) UpToUs
Banner Ad
3) MY CPAU
Ad: Cust
Svc Reps
1) Quarterly
Update
Newsletter
2) Mobile Gas
Leak Survey
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
Oct
1) Helping Meter Readers
2) Keep Sewers Working
PAGreen
Bangtail
1) Energy
Awareness
2) Project Pledge
Donate
3) Irrigation Turn
Back
4) Right Tree Right
Place
1) Oct 23
Holistic
Lndsc.
2) Fac Mgr
Mtg
UpToUs
Online
Banner Ads
Energy
Awareness
Month
Other Activities
& Events TBD
Nov
1) Project Pledge
Donations
2) Holiday Lighting
Program
Right Tree-
Right Place
program
Smell Gas? Act fast!
MUA Services
Promo
Solar Water Heating
ENJOY
Winter
Catalog Ad
UpToUs
Online
Banner Ads
Dec
1) Coping w/High Winter
Bills
2) Emergency Storm
Prep
Solar Water
Heating
program
1) Avoid Sewer
Backup
2) Questline
Emails Request
3) Holiday Lighting
Program
LED light
exchange
UpToUs
Online
Banner Ads
Quarterly
Update
Newsletter
This calendar is continually updated as opportunities come open or needs change.
Ongoing Program Improvement and Evaluation
To support the continuous improvement envisioned by the adaptive management
process, ongoing evaluation of the efficiency programs is undertaken to provide timely
feedback on the effectiveness of program implementation tactics. State law also
requires publicly-owned utilities to conduct independent evaluation of their energy
efficiency programs to measure and verify the energy savings.
The goals of the Evaluation, Measurement & Verification (EM&V) effort at CPAU are to
provide unbiased, objective and independent program evaluations by giving:
o Useful recommendations and feedback to improve CPAU programs.
o Assessment of conservation program effectiveness.
o Assessment of the quality of the program data for impact evaluation purposes.
o Increased level of confidence in conservation program results through
transparent protocols.
The first goal is met through process evaluation and the latter three goals through impact
evaluation of the CPAU efficiency programs. CPAU has contracted with Navigant
Consulting as an EM&V consultant to conduct both process and impact evaluations for
electric and gas efficiency programs implemented in FY 2008 through FY 2010. Staff is
currently evaluating bids for a new EM&V contract for the FY 2011 to FY 2014 efficiency
programs.
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Demand Side Management Implementation Plan for FY 2012 to FY 2014
27 of 27
Coordination with Other Programs
Integration Across Resource Types (Energy and Water)
CPAU integrates efficiency programs across all three of the utilities (electricity, natural
gas and water) and with other City departments, particularly Planning and the
Development Center. Coordinated program information is provided to customers in
annual brochures. The benefits of conservation and resource efficiency are described in
integrated terms to customers whenever possible when emphasizing individual
programs. For example, when talking about the benefits of efficient washing machines,
material will discuss the water, natural gas and electricity benefits of these units.
New Construction Program Integration
The California Green Building Code, known as CALGreen, went into effect statewide on
January 1, 2011. In order to harmonize the City’s existing green building regulations
with the new State law, staff proposed two ordinances relocating a majority of the green
building regulations from Palo Alto Municipal Code (PAMC) Title 18, Zoning Regulations,
to Title 16, where all other Building Regulations are located.
When approving the local ordinance, Council requested that staff set up a program to
complete energy and water audits (or performance reviews) of properties after the
building process was complete. These audits may be conducted no more frequently
than once every five years unless a building fails the review, then the City can conduct
audits more frequently in the future to ensure compliance and require that facilities
implement changes to bring building operations back to designed efficiency levels. The
water use review may be required for all facilities with greater than one acre of
landscaping, consistent with state law. The energy audits will be required for all
buildings larger than 10,000 square feet that go through the Green Building Program.
Since 2008, approximately 60 to 70 nonresidential projects were permitted through the
Green Building Program. In the pilot project, performance reviews would likely be
assigned on a random basis. Staff will reevaluate the process and percentage of
facilities audited after the first two years to assess the success of the process and report
back to Council.
These performance reviews will be added to the portfolio of efficiency programs
available from CPAU. In addition, customers who exceed the building requirements in
the CALGreen may qualify for new construction rebates from the Utilities’ Department.
The application process for these two programs is being integrated to smooth the
process for residents and businesses.
CITY OF PALO ALTO CONTRACT NO. C11138611A
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND SYNERGY COMPANIES
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this 1st day of July 2011, ("Agreement") by and
between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and
SYNERGY COMPANIES, a California corporation, located at 28436 Satellite Street, Hayward, CA
94545 ("CONSUL TANTfl).
RECITALS
The following recitals are a substantive portion ofthis Agreement.
A. CITY intends to provide third-party energy efficiency programs ("Project") and desires to
engage a consultant to administer, manage and deliver a hard-to-reach hospitality energy saving
program in connection with the Project ("Services").
B. CONSULTANT has represented that it has 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 CONS UL T ANT to provide the
Services as more fully described in Exhibit "A", attached to and made a part ofthis Agreement.
NOW, THEREFORE, in consideration ofthe recitals, covenants, terms, and conditions, this
Agreement, the parties agree:
AGREEMENT
SECTION 1. 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 ofthis Agreement shall be from the date of its full execution through completion ofthe
services in accordance with the Schedule ofPerformance attached as Exhibit "B" unless terminated
earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is ofthe essence in the performance of
Services under this Agreement. CONSULTANT shall complete the Services within the term ofthis
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 CONSUL T ANT.
CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of
damages for delay ifthe extension is required due to the fault of CONSULTANT.
Professional Services
Rev. June 2, 20]0
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance ofthe Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed Four Hundred Fifty Thousand
Dollars ($450,000) for all three years. The applicable rates and schedule of payment are set out in
Exhibit "C", entitled "COMPENSATION," which is attached to and made a part ofthis Agreement.
Additional Services, ifany, 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 CON SUL T ANT'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.
CONSULTANT shall send all invoices to the City's project manager at the address specified in
Section 13 below. The City will generally process and pay invoices within thirty (30) days of
receipt.
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, ifpermitted,
have and shall maintain during the term of this Agreement all licenses, permits, qualifications,
insurance and approvals ofwhatever nature that are legally required to perform the Services.
All of the services 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 underthe same or similar
circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed ofand
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.
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. IfCONSULTANT has prepared plans and specifications or other design
documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors,
omissions or ambiguities discovered prior to and during the course of construction of the Project.
Professional Services
Rev. June 2, 2010
\\Cc-terra\shared\ASD\PURCH\SOLICIT A TIONS\CURRENT BUYER-CM FOLDERS\UTlLlTlES -CAROLYNN\RFPs\ 138611 Third Party
Energy\FlNAL.CONTRACTS.ll\6. SYNERGY\KCII138611 A.SYNERGY.HOSPlT ALlTY\KCII138611A.SYNERGY.doc
other materials and copyright interests developed under this Agreement shall be and remain the
exclusive property ofCITY without restriction or limitation upon their use. CONSULTANT agrees
that all copyrights which arise from creation ofthe work pursuant to this Agreement shall be vested
in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual
property rights in favor ofthe CITY. Neither CONSUL TANT nor its contractors, ifany, shall make
any ofsuch materials available to any individual or organization without the prior written approval
ofthe City Manager or designee. CONSULTANT makes no representation ofthe suitability ofthe
work product for use in or application to circumstances not contemplated by the scope of work.
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.
16.1. 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, 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 ofor 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.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance ofCONSULTANT's services and duties by CITY shall not
operate as a waiver ofthe right of indemnification. The provisions ofthis Section 16 shall survive
the expiration or early termination ofthis Agreement.
SECTION 17. WAIVERS. The waiver by either party ofany breach or violation ofany covenant,
term, condition or provision ofthis Agreement, or ofthe provisions ofany ordinance or law, will not
be deemed to be a waiver ofany other term, covenant, condition, provisions, ordinance or law, or of
any subsequent breach or violation ofthe same or ofany other term, covenant, condition, provision,
ordinance or law.
SECTION 18. INSURANCE.
18.1. CONSUL TANT, at its sole cost and expense, shall obtain and maintain, in full
force and effect during the term ofthis Agreement, the insurance coverage described in Exhibit "D".
CONSUL T ANT and its contractors, if any, shal1 obtain a policy endorsement naming CITY as an
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additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers
with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized 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 ofthis Agreement. The certificates will be subjectto the approval ofCITY'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 ofthis Agreement.
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 ofany 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. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance ofthe Services, in whole or
in part, or terminate this Agreement, with or without cause, by giving ten (l0) days prior written
notice thereof to CONSULTANT. Upon receipt ofsuch notice, CONSUL TANTwill immediately
discontinue its performance ofthe Services.
19.2. CONSULTANT may terminate this Agreement or suspend its performance of
the Services by giving thirty (30) days prior written notice thereofto CITY, but only in the event of
a substantial failure of performance by CITY.
19.3. 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, ifany, or given
to CONSUL T ANT or its contractors, ifany, in connection with this Agreement. Such materials will
become the property of CITY.
19.4. Upon such suspension or termination by CITY, CONSUL TANTwill be paid
for the Services rendered or materials delivered to CITY in accordance with the scope ofservices on
or before the effective date (Le., 10 days after giving notice) ofsuspension or termination; provided,
however, ifthis Agreement is suspended or terminated on account ofa default by CONSULTANT,
CITY will be obligated to compensate CONSUL TANT only for that portion of CONSULTANT's
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services which are ofdirect and immediate benefit to CITY as such determination may be made by
the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will
survive any expiration or termination ofthis Agreement: 14, 15, 16, 19.4, 20, and 25.
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will
operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. 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 21. CONFLICT OF INTEREST.
21.1. In accepting this Agreement, CONSUL TANT 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.
21.2. CONSUL TANT further covenants that, in the performance ofthis 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 ofCITY; this provision will be interpreted in accordance with the applicable provisions
ofthe Palo Alto Municipal Code and the Government Code of the State ofCalifornia.
21.3. Ifthe Project Manager determines that CONSULTANT is a "Consultant" as
that term is defined by the Regulations ofthe Fair Political Practices Commission, CONSUL TANT
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 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment ofany person because ofthe race, skin color, gender, age, religion,
disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status,
weight or height ofsuch person. CONSULTANT acknowledges that it has read and understands the
provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all requirements ofSection
2.30.510 pertaining to nondiscrimination in employment.
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SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONSUL T ANT shall comply with the City's Environmentally Preferred
Purchasing policies which are available at the City's Purchasing Department, incorporated by
reference and may be amended from time to time. CONSULTANT shall comply with waste
reduction, reuse, recycling and disposal requirements of the City'S Zero Waste Program. Zero
Waste best practices include first minimizing and reducing waste; second, reusing waste and third,
recycling or composting waste. In particular, Consultant shall comply with the following zero waste
requirements:
• All printed materials provided by Consultant to City generated from a personal
computer and printer including but not limited to, proposals, quotes, invoices,
reports, and public education materials, shall be double-sided and printed on a
minimum of30% or greater post-consumer content paper, unless otherwise approved
by the City's Project Manager. Any submitted materials printed by a professional
printing company shall be a minimum of30% or greater post-consumer material and
printed with vegetable based inks.
• Goods purchased by Consultant on behalf of the City shall be purchased in
accordance with the City's Environmental Purchasing Policy including but not
limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Office.
• Reusable/returnable pallets shall be taken back by the Consultant, at no additional
cost to the City, for reuse or recycling. Consultant shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. NON-APPROPRIATION
24.1. This Agreement is subject to the fiscal provisions ofthe Charter ofthe City of
Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a)
at the end ofany 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 shall take
precedence in the event ofa conflict with any other covenant, term, condition, or provision ofthis
Agreement.
SECTION 25. MISCELLANEOUS PROVISIONS.
25.1. This Agreement will be governed by the laws of the State of California.
25.2. In the event that an action is brought, the parties agree that trial ofsuch action
will be vested exclusively in the state courts of California in the County of Santa Clara, State of
California.
25.3. 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. The prevailing party shall be entitled to recover an amount equal to the fair market value of
legal services provided by attorneys employed by it as well as any attorneys' fees paid to third
parties.
25.4. 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.
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25.5. The covenants, tenns, conditions and provisions ofthis Agreement will apply
to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants ofthe
parties.
25.6. 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.
25.7. 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.
25.8 If, pursuant to this contract with CONSULTANT, City shares with
CONSULTANT personal infonnation as defined in California Civil Code section l798.81.5(d)
about a California resident ("Personal Infonnation"), CONSULTANT shall maintain reasonable and
appropriate security procedures to protect that Personal Infonnation, and shall inform City
immediately upon learning that there has been a breach in the security of the system or in the
security ofthe Personal Infonnation. CONSULTANT shall not use Personal Infonnation for direct
marketing purposes without City'S express written consent.
25.9 The individuals executing this Agreement represent and warrant that they have
the legal capacity and authority to do so on behalf of their respective legal entities.
IN WIll'JESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
Attachments:
EXHIBIT "A": SCOPE OF WORK
EXHIBIT "B": SCHEDULE OF PERFORMANCE
EXHIBIT "C": COMPENSATION
EXHIBIT "D": INSURANCE REQUIREMENTS
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EXHIBIT"A"
SCOPE OF SERVICES
Synergy Companies shall deliver an energy saving program to hard-to-reach hospitality customers of
the City ofPalo Alto for the City of Palo Alto Utilities (CPAU) department.
Program Street Name: Hard-to-Reach Hospitality Program 2011-2013
Customer Segment: Commercial
Sub-segment: Hotel, Motel, Nursing, Hospital Market
Primary Technologies: Lighting, HVAC, Electrical, and Water Saving Measures
• Electrical
o ENERGYST AR® Hardwired CFL Interior Fixture
o ENERGYSTAR® PSMH Exterior Fixture
o ENERGYST AR® LED Exit Signs
o Occupancy Sensor
o Vending Machine Controls for CoolfUncooled Snack Machines
o T8 4-Foot High Lumen Retrofit (2 & 4 Lamp)
o T8 4-Foot Delamping
o AC Refrigerant Charge and Adjustment
o Intelligent Power Strip
• Gas
o Low Flow Showerheads
o Faucet Aerators
o Pre-Rinse Spray Head
o Pipe Wrap
Program
This Hospitality Program is designed to be a direct installation, no-cost to the customer,
comprehensive resource program that serves Palo Alto's hard to reach hospitality customers.
The market barriers to reach this customer base are significant but can be overcome using
several innovative approaches. We have succeeded in this market through an innovative
marketing and implementation approach designed to maximize the participation of business
owners and managers and to optimize energy efficiency at each property. Making such a
program cost effective (in each region in which it is delivered) has been a key factor on our
selection by many other regional utilities.
The targeted audience includes underserved markets such as large and small hotels, motels,
hospitals, nursing facilities, convention centers, including those in economic disadvantaged
zones, and similar sites.
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Program Deliverables:
Table 1: Energy Savings Benefits
Installation Goals 2011 2012 2013 Total
Gross Peak Demand
Savings (k W)
11 81 81 173
Gross Electric Savings
(kWh)
85,837 454,610 454,610 995,057
Gross Gas savings
(therms)
2,805 15,279 15,279 33,363
Cost $37,834 $206,083 $206,0 $450,000
Marketing Plan
Customer Description:
The targeted audience includes underserved markets such as large and small hotels, motels,
hospitals, nursing facilities, convention centers, including those in economic disadvantaged
zones, and similar sites.
Marketing Effectiveness:
Synergy Companies carefully developed marketing and outreach plans successfully used in
similar programs and proven effective to address primary market barriers in previous programs
in the City of Palo Alto (REAP and Local Government Partnerships).
Over the last 10 years, Synergy has worked on a variety of programs involving the hospitality
industry and has experience implementing these types of measures to these customers. In
different places throughout California, Synergy has worked with thousands of convalescent
homes, motels, hotels, hospitals, mini-marts and correctional facilities and have found that once
personally contacted customers are open to energy efficiency and also gain to benefit by the
installation of such measures, especially in times of a budget squeezes. This program is not only
feasible for them, but makes great sense to decision makers.
This program will deploy a creative marketing program consisting of face-to-face visits with
property managers and maintenance teams. This allows us to reach the decision makers of these
properties with an emphasis on energy savings.
Synergy will work to coordinate marketing, messaging, and positioning ofthis program to
further penetrate other markets, while serving this market. Synergy has established working
relationships with several hospitality customers such as the Marriott Corporation and others
conducting similar programs in California. These existing relationships will help us properly
communicate this targeted program to the right market segment to maximize program
coordination and minimize program confusion. Relationships and communications channels for
industry associations such as HotellMotel associations, various travel councils, and other
regional visitors and convention bureaus areas Synergy already has existing relations.
These contacts and relationships will be invaluable in helping to increase awareness of the
program.
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Estimated Annual Measure Installation Schedule 2011-2013
Table 2: Measure Installation Per Annum
Per Unit 18
Head in Restaurants Per Unit 11
Per Linear
Ft.
Per Unit
16 92
Vending Machine Control Uncooled
COMMON AREA Per Unit 4 23
Vending Machine Control Cold Drink
COMMON AREA Per Unit
Per Unit
Unit 24 138
Star® 28W CFL Interior Fixture Per Unit 22 114
PSMH Exterior Fixture Per Unit 3 11
T8 Retrofit COMMON AREA Per Unit 16 92
Per Unit 16
Per Unit 100
Per Unit 76 562
Per 0 0
Per Unit 0 5
Per Unit 0 20
Per Unit 0 20
5
Per Unit 5
Per Unit 0 20
Per Unit 0 5
Per Unit 16 92
Per Unit 14 93
Per Unit 1 93
0 12
0 12
11
92 200
23 50
75
155
138 300
114 250
11 25
5 10
40
20 40
10
10
40
20 40
10
92 200
13 25
13 25
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Training: Synergy Companies will continue
weeks
Program Implementation and Delivery
The following outlines a summary of the program design and implementation:
TASK I -PROGRAM RAMP-UP
Attend Program Kick-off Meeting:
Synergy Companies will attend a program
kick-off meeting with the Program Manager
(PM) and other City of Palo Alto staff, as
necessary, in order to discuss project logistics,
marketing coordination, evaluation, monitoring
and verification coordination, invoicing
uirements, of work, and
2. Program Data, Invoicing, and Reporting
to train its team and
3. Schedule of Activities: Synergy
Companies will finalize the schedule of
activities that provide a monthly work plan and
4. Marketing Plan: Synergy Companies will
finalize a detailed marketing plan ("Marketing
Plan") which will include a discussion ofall
necessary program marketing materials
directly involved with program implementation
or for general customer information. Consider
5. Marketing Materials: Synergy Companies
will submit to the PM all marketing collateral
materials, as outlined in the Marketing Plan,
City of Palo Alto's approval prior to any
6. Invoice and Reporting Tools: Synergy
Companies will submit to City of Palo Alto a
sample of all the reporting tools (Le., flat files,
monthly narrative, quarterly reporting, etc.)
that are required (as further outlined herein
Implement Marketing Campaign: Synergy
Companies will execute the planned marketing
campaign based on the proposed marketing . . rn"'''''''''T1n
Announced
(TBA) by
City of Palo
Alto and
Synergy
Companies
after Contract
Notice To
NTP+4
weeks
NTP+6
weeks
NTP+8
weeks
weeks
Date
Date
Date
Date
Date
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1. Program Agreement: Synergy Companies
will implement the Marketing Plan and utilize Weeks and
the marketing materials created to enroll throughout
customers that have been screened and program
identified as qualified. Customer enrollment
occurs when Synergy Companies executes a
2. Optimize other EE programs for NIP +12
customer benefit: Synergy Companies will Weeks and
work with customers to optimize the energy throughout
efficiency programs available through City of
Palo Alto and other 3rd Party implementers and
program
Project Installation: Synergy Companies
Date
will deliver energy savings through the Weeks and
installation of energy efficient hardware, throughout
upgrades, and services. Upon selection, program
Synergy Companies will be prepared to submit
2. Inspections: Synergy Companies will
inspect and verifY (per specification) that
installed measures/projects in the Program are
properly installed.
A. Synergy Companies will have a Quality
Project Manager /Foreman that supervises
installations and work completed at each site.
This individual will do random inspections on
the jobs as technicians are completing their
work. When the work is complete, the Quality
Project Manager will review work completed . .
NIP +12 Date
Weeks and
throughout
program
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TASK 5 -INVOICE AND REPORT FOR COMPLETED PROJECTS (INSTALLATION
ST
Send in a monthly & quarterly report and received by City of
invoice. Alto Springs Program
a. Narrative Report, in alignment with IlVUUIUI",,"l by the 15th of each
format as prescribed by City of Palo
Alto.
b. Provide a workbook report with budget
~~~------~~-+----------~---~~~~--------~
15th of each Per monthly/quarterly report 2. Evaluate program progress with each
monthmonthly report
As needed Deliver in a timely basis 3. Work with City of Palo Alto on special
CPUC mandated data requests.
TASK 6-PERFORM CUSTOMER FEEDBACK SURVEYS
Telephone Survey to assess customer
satisfaction.
Twenty (20%) ofcustomers will be called
2. Synergy Companies will address and
resolve all customer issues discovered
through either survey feedback or other
means of customer contact. Synergy
Companies will pursue continuous
improvements to promote complete
customer satisfaction. Customer feedback
On going on customers
s will be recorded in the
report
3. If any issues cannot be resolved to the
satisfaction ofthe customer by Synergy
Companies within five (5) days, Contractor
shall immediately provide City of Palo Alto
with a detailed description of any such
complaint, which will include the name and
On going Information on customer
issues will be reported
within the monthly report.
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TASK 7 -RAMP-DOWN AND SHUTDOWN PROGRAM
A final report will be submitted which
includes a narrative with an overview ofthe
program and a workbook report with budget
Per monthly/quarterly report
completes the recruitments before October
1. Program Ramp-down: Synergy 15th of each
month
31, 2013, it will inform all parties contacted
for participation that the Program has
reached its quota and that the Program is no
longer available. The Contractor will
and energy savings performance from the
program. The narrative will also contain a
report on quality assurance information.
The final report will include Program
Prior to 2. Synergy Company maintains electronic Date
copies of invoices as is required. February
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Staffing Plan
Table 3: Staffing Plan
Dave Clark, CEO
Steve Shallenberger, President
Shallenberger, Engineer
Jacobson, Controller
Smith, Outreach & Business
lopment
Receptionist & Admin. Staff
Entry & Scheduling Staff
ity Assurance Manager
Direct Marketing Manager
Chiefs & Technicians
and EM&V
Marketing, Surveys, Reporting
Installation of measures and
customer service
2%
2%
3%
8%
5%
30%
2%
2%
1%
5%
8%
2%
30%
100%
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Quality Assurance Plan:
Synergy will maintain a Team Lead at each building site to verify the correct installation of work
is completed in compliance with Synergy's standards of excellence and to coordinate with the
owner, property manager and maintenance teams, where applicable. There is also a Quality
Production Manager that will randomly evaluate the work that is completed.
Synergy, in conjunction with Energy Efficiency, Inc. has an office that is dedicated to assessing
quality control and customer satisfaction. This office calls the property managers/owners and
business managers/owners after the work is completed to determine satisfaction and to gain other
important information about the work completed. According to customer surveys, which are
completed with 20% ofall customers served in each program, Synergy has more than a 97%
satisfaction level. For those other customers that may have had some type of reservations,
Synergy quickly responded to any concerns and is not aware ofa single customer that is not
satisfied with their work in the end.
Synergy maintains an in-house inspection team that physically and randomly inspects a
percentage ofall jobs completed by each technician. These Quality Assurance measures support
a high level of commitment to quality installations at each customer site.
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EXHIBIT "B"
SCHEDULE OF PERFORMANCE
CONSUL TANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement ofthe project managers for CONSULTANT and CITY
so long as all work is completed within the term of the Agreement. CONSULTANT shall
provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt
ofthe notice to proceed.
Meet with City of Palo Alto to review program objectives and
standards. Include all key stakeholders: Program Manager,
Synergy and Energy Efficiency, Inc. Managers, Office Personnel
and Production Managers.
! Finalize Operations Plan
. Completion and approval of Marketing Materials
Begin roll-out of Marketing Campaign
Synergy Stakeholders Training Sessions. Palo Alto Program
Manager, Data Manager, and Synergy Leaders meet with all
personnel.
Modification of web page to reflect this Program
Begin installation of new jobs
Monthly Report (Every Month by the 15th)
Quarterly Evaluation and Training Meetings-At Palo Alto with
program manager, data manager, and Synergy managers.
Maintain a solid communication and coordination of efforts from
the get-go.
Complete Implementation Plan
May-June 2011
June 2011
June 2011
July 2011
June-July 2011
July 2011
July 2011
August 15th
and ongoing
August 15,2011
and ongoing
December 31 St, 2013
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i
EXHffiIT "C"
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement, and as set forth in the budget
schedule below. Compensation shall be calculated based on the hourly rate schedule attached
as in the budget schedule below and up to the not to exceed budget amount for each task set
forth below.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit "A" ("Basic Services") shall not exceed $450,000 for all three years.
CONSULTANT agrees to complete all Basic Services within this amount. Any work
performed or expenses incurred for which payment would result in a total exceeding the
maximum amount of compensation set forth herein shall be at no cost to the CITY.
CONSULTANT shall perform the tasks and categories of work as outlined and budgeted
below. The CITY's Project Manager may approve in writing the transfer of budget amounts
between any ofthe tasks or categories listed below provided the total compensation for Basic
Services.
Marketing/Outreach Costs $36,000 8.00%
Direct Implementation Costs
Direct Implementation Costs $376,008 83.56%(Materials & Labor)
Total $450,000 100.00%
Fixed Unit Priced Payment Structure
The approach for this program is designed as a per unit cost approach. All costs for the program will
be factored into the core measures installed and invoiced as the work is completed.
Synergy Companies shall be paid on a per unit basis for each measure installed and approved by
City of Palo Alto using the fee schedule.
It is Synergy's preference to agree, based upon DEER database or work papers, on reliable energy
savings, from the beginning of the program. We look forward to working together on this as a
collaborative effort.
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EXHffiIT "D"
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 AM BEST'S KEY RATING OF A-:VII, OR
HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF
CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED,
BELOW'
MINIMUM LIMITS I
EACHREQUIRED REQUIREMENT
OCCURRENC
TYPE OF COVERAGE
AGGREGATE
E
YES WORKER'S COMPENSATION STATUTORY
YES EMPLOYER'S LIABILITY
STATUTORY
BODILY INJURY $],000,000
YES GEl\ERAL LIABILITY,
INCLUDING PERSONAL
$1,000,000
$1,000,000
INJURY, BROAD FORM
PROPERTY DAMAGE i BODILY INJURY & PROPERTY
PROPERTY DAMAGE $1,000,000
$1,000,000 $1,000,000
BLANKET CONTRACTUAL, DAMAGE COMBINED.
AND FIRE LEGAL LIABILITY
BODILY INJURY
$1,000,000 $1,000,000
-EACH PERSON $1,000,000 $1,000,000
-EACH OCCURRENCE $1,000,000 $1,000,000AUTOMOBILE LIABILITY, YES INCLUDING ALL OWNED, PROPERTY DAMAGE $1,000,000 $1,000,000 iHIRED, NON-OWl\ED
BODILY INJURY AND PROPERTY $1,000,000 $1,000,000
DAMAGE, COMBINED
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE
(WHEN APPLICABLE), AND
"NEGLIGENT PERFORMANCE
I
ALL DAMAGES $],000,000
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS .
YES 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 CONTRACTOR AND ITS SUBCONSUL TANTS, IF ANY, BUT
ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND
PROFESSIONAL INSURANCE NAMING AS ADDITIONAL INSUREDS CITY ITS COUNCIL MEMBERS,
OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN TIllRTY DA Y ADVANCE NOTICE TO CITY OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVID1NG INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL.
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II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL
INSUREDS"
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 INSlJRANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS 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 COMPA1\ Y UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
I. IF THE POLICY IS CANCELED BEFORE ITS EXPIRA TION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPA1\Y
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 COMPA1\Y SHALL PROVIDE CITY AT
LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLA TION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
P ALO ALTO, CA 94303
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CITY OF PALO ALTO CONTRACT NO. C1l13861lB
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND SYNERGY COMPANIES
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this 1 st day ofJuly 2011, ("Agreement") by and
between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and
SYNERGY COMPANIES, a California corporation, located at 28436 Satellite Street, Hayward, CA
94545 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to provide third-party energy efficiency programs ("Project") and desires to
engage a consultant to administer, manage and deliver to low income residential energy saving
program in connection with the Project ("Services").
B. CONSUL TANT has represented that it has 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.
NOW, THEREFORE, in consideration ofthe recitals, covenants, terms, and conditions, this
Agreement, the parties agree:
AGREEMENT
SECTION 1. 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 through completion of the
services in accordance with the Schedule ofPerformance attached as Exhibit "B" unless terminated
earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is ofthe essence in the performance of
Services under this Agreement. CONSULTANT shall complete the Services within the term ofthis
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 CONSUL T ANT 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 CONSUL TANT.
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SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSUL T ANT for performance ofthe Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed Five Hundred Thousand
Dollars ($500,000) for all three years. The applicable rates and schedule of payment are set out in
Exhibit "C", entitled "COMPENSATION," which is attached to and made a part ofthis 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.
CONSULTANT shall send all invoices to the City's project manager at the address specified in
Section 13 below. The City will generally process and pay invoices within thirty (30) days of
receipt.
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, ifpermitted,
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.
All of the services 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 under the same or similar
circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed ofand
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.
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. IfCONSUL T ANT has prepared plans and specifications or other design
documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors,
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omissions or ambiguities discovered prior to and during the course ofconstruction of the Project.
This obligation shall survive termination ofthe Agreement.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. Ifthe total estimated construction cost at any submittal exceeds ten percent (10%)
of the CITY's stated construction budget, CONSULTANT shall make recommendations to the
CITY for aligning the PROJECT design with the budget, incorporate CITY approved
recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. 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 ofthe CITY.
SECTION 11. 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 ofany ofCONSULT ANT's obligations
hereunder without the prior written consent ofthe city manager. Consent to one assignment will not
be deemed to be consent to any subsequent assignment. Any assignment made without the approval
ofthe city manager will be void.
SECTION 12. SUBCONTRACTING.
CONSULTANT shall be responsible for directing the work of any subconsultants and for any
compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning
compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a
subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of
the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Steven
Shallenberger as the Project Manager to have supervisory responsibility for the performance,
progress, and execution ofthe Services to represent CONSULTANT during the day-to-day work on
the Project. Ifcircumstances cause the substitution ofthe project director, project coordinator, or any
other key personnel for any reason, the appointment of a substitute project director and the
assignment ofany 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's project manager is Joyce Kinnear, Utilities Department, Marketing Services Division,
250 Hamilton Avenue, Palo Alto, CA 94303, Telephone: (650)329-2652. 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 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including
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without limitation, all writings, drawings, plans, reports, specifications, calculations, documents,
other materials and copyright interests developed under this Agreement shall be and remain the
exclusive property ofCITY without restriction or limitation upon their use. CONSULTANT agrees
that all copyrights which arise from creation ofthe work pursuant to this Agreement shall be vested
in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intel1ectual
property rights in favor ofthe CITY. Neither CONSULTANT nor its contractors, ifany, shall make
any ofsuch materials available to any individual or organization without the prior written approval
ofthe City Manager or designee. CONSULTANT makes no representation ofthe suitability ofthe
work product for use in or application to circumstances not contemplated by the scope of work.
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.
16.1. 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, 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 ofor 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.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active
negligence, sole negligence or willful misconduct of an Indemnified Party.
16.3. The acceptance ofCONSULTANT's services and duties by CITY shall not
operate as a waiver ofthe 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 ofany breach or violation ofany covenant,
term, condition or provision ofthis Agreement, or ofthe provisions ofany ordinance or law, will not
be deemed to be a waiver ofany other term, covenant, condition, provisions, ordinance or law, or of
any subsequent breach or violation ofthe same or ofany 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 ofthis Agreement, the insurance coverage described in Exhibit "D".
CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an
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additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers
with AM Best's Key Rating Guide ratings ofA-:VII or higher which are licensed or authorized to
transact insurance business in the State ofCalifomia. Any and all contractors ofCONSULTANT
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 ofthis Agreement. The certificates will be subject to the approval ofCITY'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,
CONSUL T ANT 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.
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 ofany 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. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance ofthe Services, in whole or
in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written
notice thereofto CONSULTANT. Upon receipt ofsuch notice, CONSULTANT will immediately
discontinue its performance ofthe Services.
19.2. CONSUL T ANT may terminate this Agreement or suspend its performance of
the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of
a substantial failure of performance by CITY.
19.3. 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, ifany, or given
to CONSULTANT or its contractors, ifany, in connection with this Agreement. Such materials will
become the property of CITY.
19.4. Upon such suspension or termination by CITY, CONSUL TANTwill be paid
for the Services rendered or materials delivered to CITY in accordance with the scope ofservices on
or before the effective date (Le., 10 days after giving notice) ofsuspension or termination; provided,
however, ifthis Agreement is suspended or terminated on account ofa default by CONSULTANT,
CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's
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services which are ofdirect and immediate benefit to CITY as such determination may be made by
the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will
survive any expiration or termination ofthis Agreement: 14, 15, 16, 19.4, 20, and 25.
19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will
operate as a waiver on the part of CITY of any of its rights under this Agreement.
SECTION 20. 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 21. CONFLICT OF INTEREST.
21.1. 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.
21.2. CONSULTANT further covenants that, in the performance ofthis 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 ofCITY; this provision will be interpreted in accordance with the applicable provisions
ofthe Palo Alto Municipal Code and the Government Code of the State of California.
21.3. Ifthe Project Manager determines that CONSULTANT is a "Consultant" as
that term is defined by the Regulations ofthe 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 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.51 0, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment ofany person because ofthe race, skin color, gender, age, religion,
disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status,
weight or height ofsuch person. CONSUL TA NT acknowledges that it has read and understands the
provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all requirements ofSection
2.30.510 pertaining to nondiscrimination in employment.
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SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONSULTANT shall comply with the City'S Environmentally Preferred
Purchasing policies which are available at the City's Purchasing Department, incorporated by
reference and may be amended from time to time. CONSULTANT shall comply with waste
reduction, reuse, recycling and disposal requirements of the City's Zero Waste Program. Zero
Waste best practices include first minimizing and reducing waste; second, reusing waste and third,
recycling or composting waste. In particular, Consultant shall comply with the following zero waste
requirements:
• All printed materials provided by Consultant to City generated from a personal
computer and printer including but not limited to, proposals, quotes, invoices,
reports, and public education materials, shall be double-sided and printed on a
minimum of30% or greater post-consumer content paper, unless otherwise approved
by the City's Project Manager. Any submitted materials printed by a professional
printing company shall be a minimum of30% or greater post-consumer material and
printed with vegetable based inks.
• Goods purchased by Consultant on behalf of the City shall be purchased in
accordance with the City'S Environmental Purchasing Policy including but not
limited to Extended Producer Responsibility requirements for products and
packaging. A copy of this policy is on file at the Purchasing Office.
• Reusable/returnable pallets shall be taken back by the Consultant, at no additional
cost to the City, for reuse or recycling. Consultant shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. NON·APPROPRIATION
24.1. This Agreement is subject to the fiscal provisions ofthe Charter ofthe City of
Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a)
at the end ofany 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 shall take
precedence in the event of a conflict with any other covenant, term, condition, or provision of this
Agreement.
SECTION 25. MISCELLANEOUS PROVISIONS.
25.1. This Agreement will be governed by the laws of the State of California.
25.2. In the event that an action is brought, the parties agree that trial ofsuch action
will be vested exclusively in the state courts of California in the County of Santa Clara, State of
California.
25.3. The prevailing party in any action brought to enforce the provisions ofthis
Agreement may recover its reasonable costs and attorneys' fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value of
legal services provided by attorneys employed by it as well as any attorneys' fees paid to third
parties.
25.4. 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.
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25.5. The covenants, terms, conditions and provisions ofthis Agreement will apply
to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants ofthe
parties.
25.6. 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.
25.7. 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.
25.8 If, pursuant to this contract with CONSULTANT, City shares with
CONSUL TANT personal information as defined in California Civil Code section 1798.81.5( d)
about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and
appropriate security procedures to protect that Personal Information, and shall inform City
immediately upon learning that there has been a breach in the security of the system or in the
security ofthe Personal Information. CONSULTANT shall not use Personal Information for direct
marketing purposes without City's express written consent.
25.9 The individuals executing this Agreement represent and warrant that they have
the legal capacity and authority to do so on behalf of their respective legal entities.
IN WITNESS WHEREOF, the parties hereto have by their duly authorized
representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
Senior Asst. City Attorney
Attachments:
EXHIBIT "A"; SCOPE OF WORK
EXHIBIT "8": SCHEDULE OF PERFORMANCE
EXHIBIT "C": COMPENSATION
EXHIBIT "D": INSURANCE REQUIREMENTS
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EXHIBIT "A"
SCOPE OF SERVICES
Synergy Companies shall deliver an energy saving program to Low Income Residential Single
Family and Multifamily Program s of the City of Palo Alto for the City of Palo Alto Utilities
(CPAU) department.
Primary Technologies: Lighting, HVAC, Electrical, and Water Saving Measures
• Electrical
o ENERGYSTAR® Hardwired CFL Interior Fixture
o ENERGYSTAR® CFLs
o ENERGYST AR® Programmable Tstats
o Occupancy Sensor
o Vending Machine Controls for Cool/Uncooled Snack Machines
o T8 4-Foot High Lumen Retrofit (2 & 4 Lamp)
o Duct Seal
o AC Refrigerant Charge and Adjustment
o Intelligent Power Strip
o AppliancelHV AC Repair & Replace
o Weatherization Measures
• Gas
o Low Flow Showerheads
o Faucet Aerators
o Pre-Rinse Spray Head
o Pipe Wrap
o Duct Seal
o Appliance/HVAC Repair & Replace
Program Short Summary:
This Residential Program is designed to be a direct installation, no-cost to the customer;
comprehensive resource program that serves Palo Alto's hard to reach qualified single family
and multifamily customers.
There are many factors leading to market failures and market barriers for the residential market
such as cost effectiveness, split incentives, property management directives, income, age and
language. In addition, there are a limited number of contractors serving this market in part
because of the limited degree to which residents participate due to age, language, economic or
educational barriers. This comprehensive program focuses on those identified measures and
geographic segments which utilities and customers find desirable. This program also targets
hard-to-reach markets, which other utility programs do not specifically address on a targeted
basis.
Marketing Plan
Customer Description:
This proposal is designed to be a direct installation program that serves Palo Alto's hard to reach
low income customers-both single family and multifamily. The low-income market is difficult
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to reach and is dispersed throughout the region.
Marketing Effectiveness:
Synergy Companies carefully developed marketing and outreach plans successfully used in
similar programs and proven effective to address primary market barriers in previous programs
in the City of Palo Alto (REAP and Local Government Partnerships).
Synergy utilizes marketing channels that will produce the best response and highest
participation. We have found that marketing directly and in-person through direct-mail, face-to
face visits by saturation specialists who visit residences who have not actively responded to
other marketing efforts induce a high participation rate in the residential market. Additionally,
we will continue to develop relationship with home owner associations, property owners and
property management groups.
These contacts and relationships will be invaluable in helping to increase awareness ofthe
program. Synergy has a solid reputation oftrust with property owners and managers in Palo
Alto. This experience will be most useful as Synergy works with the City of Palo Alto to
maximize the savings that are possible from this program.
Synergy's outreach associates and technicians are multi-lingual, speaking several international
languages providing resources to communicate about the program in numerous languages as the
need arises.
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Program Planning
Compensation Schedule 2011-2013
Unit II
I Measure Definition Price I
AC Diagnostic/tune-u-'p w/verification Per Unit $ 195.00 i
Attic Access Inst Per Unit $ 100.00
Attic Access Weather-stripping Per Unit $ 17.18
Per Sq.
Attic Insulation-to Standard R-38 Foot $ 0.99 I
Attic Venting Per Unit $ 76.69
Caulking SFD Per Unit $ 59.33
i Caulking MFD Per Unit $ 52.82
# ofCFLs Per Unit $ 10.00 I
i CFL -R-30 Per Unit $ 10.00 I
CFL -R-40 Per Unit $ 11.99
Door Replacement Per Unit $ 100.00J
i Doors Wthrstrp $ 61.60 IPer Unit
Duct Test & Seal Per Unit $ 450.00
Energy Education Per Unit $ 75.00
Faucet Aerators Per Unit $ 5.90
Furnance Filter $ 11.00 iPer Unit
Furnance Tune-up Per Unit $ 155.00
HW Interior lights $ 64.55
HW Exterior lights
Per Unit
Per Unit $ 64.55
Minor Home Repair -Walls + materials $ 95.00
, NGA T Testing
Per Unit
Per Unit $ 85.00
Outlet Gaskets Per Unit $ 1.98
Occupancy Sensor Per Unit $ 66.00
Pipe Insulation Per Unit $ 9.50
I Progr T -stats Per Unit $ 73.25
Refrigerator replacement -15 CF, RHD, WHT Westinghouse • Per Unit $ 783.00
Refrigerator replacement -18 CF, RHD, WHT Westiqghouse $ 896.00
Showerheads
Per Unit
Per Unit $ 34.36
Smoke Detector Alarm Per Unit $ 39.00
not to exceed
Repair Furnance $500
not to exceed
Repair Refrigerator
Per Unit
i $300
not to exceed
R~air Water Heater
Per Unit
Per Unit $250
i Furnace replacement Per Unit $ 4,960.00
Furnace replacement With Duct Work Per Unit $ 7,155.00
Furnace replacement Wall Furnace Sin~le Per Unit $ 1,300.00
Furnace replacement Wall Furnace Double Per Unit $ 3,050.00
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Replace Water Heater Per Unit $ 1,180.00
T-12 4 foot one lamp-28 watt I Per Unit $ 40.70
T-12 4 foot two lamp-28 watt Per Unit $ 44.00
T-124 foot three lamp-28 watt Per Unit $ 47.30
Max hourly rate for additional work Per Hour $ 65.00
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Projected Staffing Plan
Dave Clark, CEO
Steve Shallenberger, President
Shallenberger, Engineer
Smith, Outreach & Business
iQuality Assurance Manager
Direct Marketing Manager
I Crew Chiefs & Technicians
Production and EM& V
Marketing, Surveys, Reporting
2%
2%
3%
8%
5%
30%Development Manager Liaison
Office Staff Administrative 2%
AdministrationCustomer Service 2%& Scheduling Staff
Receptionist & Admin. Staff Administration 1%
Data Entry & Scheduling Staff Administration
Installation of measures and
customer service
5%
8%
2%
30%
100%
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Quality Assurance Plan:
Synergy will maintain a Team Lead that monitors the work performed by each technician to
verify the correct installation of work is completed in compliance with Synergy's standards of
excellence and to coordinate with the owner, property manager and maintenance teams, where
applicable. There is also a Quality Production Manager that will randomly evaluate the work
that is completed.
Synergy, in conjunction with Energy Efficiency, Inc. has an office that is dedicated to assessing
quality control and customer satisfaction. This office calls the property managers/owners and
business managers/owners after the work is completed to determine satisfaction and to gain other
important information about the work completed. According to customer surveys, which are
completed with 20% of all customers served in each program, Synergy has more than a 97%
satisfaction level. For those other customers that may have had some type of reservations,
Synergy quickly responded to any concerns and is not aware of a single customer that is not
satisfied with their work in the end.
Synergy maintains an in-house inspection team that physically and randomly inspects a
percentage of all jobs completed by each technician. These Quality Assurance measures support
a high level of commitment to quality installations at each customer site.
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Program Implementation and Delivery
The following outlines a summary of the program design and implementation:
TASK 1 -PROGRAM RAMP-UP
2.
3.
4.
5.
6.
Attend Program Kick-off Meeting:
Synergy Companies will attend a program Announced
kick-off meeting with the Program Manager (TBA) by
(PM) and other City of Palo Alto staff, as City of Palo
necessary, in order to discuss project logistics, Alto and
marketing coordination, evaluation, monitoring Synergy
and verification coordination, invoicing Companies
of work, and after Contract
Program Data, Invoicing, and Reporting Notice To
Training: Synergy Companies will continue
to train its team and
Schedule of Activities: Synergy
Companies will finalize the schedule of weeks
activities that provide a monthly work plan and
Marketing Plan: Synergy Companies will NTP+4
finalize a detailed marketing plan ("Marketing weeks
Plan") which will include a discussion of all
necessary program marketing materials
directly involved with program implementation
or for general customer information. Consider
Marketing Materials: Synergy Companies NTP+6
will submit to the PM all marketing collateral weeks
materials, as outlined in the Marketing Plan,
City of Palo Alto's approval prior to any
Invoice and Reporting Tools: Synergy NTP+8
Companies will submit to City of Palo Alto a weeks
sample of all the reporting tools (i.e., flat files,
monthly narrative, quarterly reporting, etc.)
that are required (as further outlined herein
Implement Marketing Campaign: Synergy
Companies will execute the planned marketing weeks
campaign based on the proposed marketing
Date
Date
Date
Date
Date
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I. Program Agreement: Synergy Companies
will implement the Marketing Plan and utilize Weeks and
the marketing materials created to enroll throughout
customers that have been screened and program
identified as qualified. Customer enrollment
occurs when Synergy Companies executes a
2. Optimize other EE programs for NIP+12
customer benefit: Synergy Companies will Weeks and
work with homeowners and customers to throughout
optimize the energy efficiency programs program
available through City of Palo Alto and other
Project Installation: Synergy Companies
2. Inspections: Synergy Companies will NIP +12
inspect and verify (per specification) that Weeks and
installed measures/projects in the Program are throughout
properly installed. program
A. Synergy Companies will have a Quality
Project Manager /Foreman that supervises
installations and work completed at each site.
Ihis individual will do random inspections on
the jobs as technicians are completing their
work. When the work is complete, the Quality
Project Manager will review work completed
Date
Date
will deliver energy savings through the Weeks and
installation of energy efficient hardware, throughout
upgrades, and services. Upon selection, program
Synergy Companies will be prepared to submit
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TASK 5 -INVOICE AND REPORT FOR COMPLETED PROJECTS (INSTALLATION
2.
3.
STA
Send in a monthly & quarterly report and
invoice.
a. Narrative Report, in alignment with
format as prescribed by City of Palo
Alto.
b. Provide a workbook report with budget
Evaluate program progress with each
monthly report
Work with City of Palo Alto on special
CPUC mandated data requests.
Telephone Survey to assess customer
satisfaction.
Twenty (20%) of customers will be called
2. Synergy Companies will address and
resolve all customer issues discovered
through either survey feedback or other
means ofcustomer contact. Synergy
Companies will pursue continuous
improvements to promote complete
customer satisfaction. Customer feedback
month
15th of each
month
As needed
On going
3. If any issues cannot be resolved to the On going
satisfaction of the customer by Synergy
Companies within five (5) days, Contractor
shall immediately provide City of Palo Alto
with a detailed description ofany such
complaint, which will include the name and
received by City of
Alto Springs Program
by the 15th ofeach
Per monthly/quarterly report
Deliver in a timely basis
on survey results will
provided on a quarterly
and described in that
Information on customer
issues will be reported
within the monthly report.
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TASK 7 -RAMP-DOWN AND SHUTDOWN PROGRAM
Per monthly/quarterly report
completes the recruitments before October
1. Program Ramp-down: Synergy 15th of each
month
31,2013, it will inform all parties contacted
for participation that the Program has
reached its quota and that the Program is no
longer available. The Contractor will
A final report will be submitted which
includes a narrative with an overview ofthe
program and a workbook report with budget
and energy savings performance from the
program. The narrative will also contain a
report on quality assurance information.
The final report will include Program
2. Synergy Company maintains electronic
copies of invoices as is required.
Prior to
February
Date
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i
EXHIBIT "B"
SCHEDULE OF PERFORMANCE
CONSUL TANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the project managers for CONSULTANT and CITY
so long as all work is completed within the term ofthe Agreement. CONSULTANT shall
provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt
of the notice to proceed.
Meet with City of Palo Alto to review program objectives and
standards. Include all key stakeholders: Program Manager,
May-June 2011 Synergy and Energy Efficiency, Inc. Managers, Office Personnel
and Production Managers.
Finalize Operations Plan June 2011
Completion and approval of Marketing Materials June 2011
Begin roll-out of Marketing Campaign July 2011
Synergy Stakeholders Training Sessions. Palo Alto Program
Manager, Data Manager, and Synergy Leaders meet with all
June-July 2011
personnel.
Modification of web page to reflect this Program July 2011
Begin installation of new jobs July 2011
August 15th
Monthly Report (Every Month by the 15th) and ongoing
Quarterly Evaluation and Training Meetings-At Palo Alto with August 15,20] 1program manager, data manager, and Synergy managers. Maintain and ongoing a solid communication and coordination of efforts from the get-go.
Complete Implementation Plan December 31 st, 2013
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EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement, and as set forth in the budget
schedule below. Compensation shall be calculated based on the hourly rate schedule attached
as in the budget schedule below and up to the not to exceed budget amount for each task set
forth below.
The compensation to be paid to CONSULTANT under this Agreement for all services
described in Exhibit "A" ("Basic Services") shall not exceed a total amount of $500,000 for
all three years. CONSULTANT agrees to complete all Basic Services within this amount.
Any work performed or expenses incurred for which payment would result in a total
exceeding the maximum amount of compensation set forth herein shall be at no cost to the
CITY.
CONSUL T ANT shall perform the tasks and categories of work as outlined and budgeted
below. The CITY's Project Manager may approve in writing the transfer ofbudget amounts
between any ofthe tasks or categories listed below provided the total compensation for Basic
Services.
Administrative Costs $37,800 7.56%
Marketing/Outreach Costs $38.950 7.79%
Direct Implementation Costs
Direct Implementation Costs $423.300 84.66%&
100.00%i $500,000
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EXHIBIT "D"
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 AM BEST'S KEY RATING OF A-: VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSI:'IESS IN
THE STATE OF CALIFOR!IIIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:
I I MINIMUM LIMI7SIREQUI:KED TYPE OF COVERAGE REQUIREMENT EACH AGGREGATEOCCURRENCE
WORKER'S COMPENSATION STATUTORYYES
YES EMPLOYER'S LIABILITY STATUTORY
BODILY INJURY $1,000,000 $1,000,000
YES GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE $1,000,000 $1,000,000
PROPERTY DAMAGE BLANKET
I CONTRACTUAL, AND FIRE LEGAL $1,000,000 $1,000,000
LIABILITY
BODILY INJURY & PROPERTY DAMAGE
COMBINED.
BODlLY INJURY $1,000,000 $1,000,000
-EACH PERSON $\,000,000 $1,000,000
-EACH OCCURRENCE $1,000,000$1,000,000YES AUTOMOBILE LIABILITY, INCLUDlNG
ALL OWNED, HIRED, NON-OWNED
PROPERTY DAMAGE $1,000,000$1,000,000
I BODILY INJURY AND PROPERTY $1,000,000 $1,000,000
DAMAGE, COMBINED
PROFESSIONAL LIABILITY, INCLUDING,
ERRORS AND OMISSIONS,
MALPRACTICE (WHEN APPLICABLE),
AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS A!II ADDlTIO!llAL INSURED: CONTRACTOR, 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 CONTRACTOR AND ITS SUBCONSULTANTS,
IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL
INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. i
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY.
C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL.
II. CONTACTOR MUST Sl;BMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL
INSUREDS"
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 INSUREDS.
B. CROSS LIABILITY
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THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL
NOT, FOR THA T 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
I. 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-PA YMENT
OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND CONTRACT ADMINISTRATION
CITY OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
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