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HomeMy WebLinkAboutStaff Report 3565 City of Palo Alto (ID # 3565) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/8/2013 City of Palo Alto Page 1 Council Priority: Environmental Sustainability Summary Title: Amendment One to the BASE Contract Title: Recommendation that City Council Approve Amendment No. 1 to a Contract with BASE Energy, Inc. for the Administration of a Third -Party Non- Residential New Construction Efficiency Program From: City Manager Lead Department: Utilities Recommendation Approve and authorize the City Manager or his designee to execute the attached Amendment No. 1 to a contract with Base Energy, Inc. (Attachment A) in the amount of $158,610 for two additional years. The contract will be increased from a three year contract with an original cost of $201,390 to a five year contract with a total cost of $360,000. The increase is necessary to complete a very large new construction project with significant energy savings potential. Executive Summary The City Council approved updated energy efficiency goals for the next 10 years (approved December 17, 2012 #3358). The City of Palo Alto Utilities department has a variety of efficiency programs designed to assist all customers in different types of situations. The most cost- effective time to make significant energy saving improvements to a facility is at the point of new construction or major retrofit; new construction programs for residents and for businesses were developed in 2011. The Business New Construction program administered by BASE (BASE) Energy, Inc. was developed to assist developers and architects to design and build the most efficient structures for commercial and industrial customers in Palo Alto. The contract originally approved on May 16, 2011 and executed on July 1, 2011 (#1538) had a limited budget and timeline, as the economy at that point in time was very slow, and the new business construction program was stagnant. City of Palo Alto Page 2 In addition to working with a number of businesses to provide energy efficiency results, BASE has been working with one large non-residential customer in town during the design of a new facility. Significant potential for energy savings has been found. However, that construction will exceed both the timeline and the budget for the current program. In order to complete this project and to continue to provide new construction service for businesses, Council is requested to approve and authorize the Amendment to the contract to increase both its time period from three to five years and its overall cost from $201,390 to $360,000. Background BASE delivers energy efficiency advice and recommendations to businesses completing a new construction or major retrofit in Palo Alto. The original contract was approved by Council on May 16, 2011 (#1530) and executed on July 1, 2011 for a period of three years. The contractor has been providing a new construction rebate and customer recommendation service for business customers since that time. Discussion Project Description BASE delivers energy efficiency advice and recommendations to businesses completing a new construction or major retrofit in Palo Alto. BASE completes a detailed engineering and economic feasibility study, describing the operation of design systems and equipment, along with the energy and water used by these systems. The study includes recommendations for alternative systems and equipment, including estimates of expected energy use and related savings, along with the incremental cost of these installations and the rebates to be provided by the utility. Once the construction project is completed, BASE verifies that the energy saving systems and equipment were installed. The customer is then paid incentives by the utility for the energy savings, while BASE receives an incentive for finding the savings and assisting the customer with the installation. Scope of Work and Timeline of the Proposed Contract The program originally began in July 2011 and was scheduled to end in December 2013. One very large construction project with significant energy savings potential was identified in 2012. In order for both the customer and BASE to complete the installation and verification of the efficient construction completion, the contract needs to be extended through the end of July 2016. In addition, to allow for BASE to be paid the contracted levels of payment for finding these savings, the contract needs to be Amended to increase the total authorized amount. City of Palo Alto Page 3 Extending the contract for an additional two years allows the completion of this particular customer efficiency project. Adding funds to the contract allows the contractor to be paid on a per kilowatt hour (kWh) and therm basis for the energy savings found in the project. Finally, enhancing the length and scope of the program will allow additional new construction projects to be assisted with efficient measure installation and for the contractor to be paid for this assistance. . Resource Impacts Funds for this program are included in the FY 2013 Demand Side Management budgets in the electric and natural gas operating funds. There are adequate funds in the FY 2014 and FY 2015 projected budgets to pay for the extension of the work in this contract. Policy Impacts The recommendation is consistent with Council policy and supports the electric and natural gas efficiency goals approved by City Council in December 2012. Environmental Review Authorization of the Amendment to the contract with BASE Engineering, Inc. does not meet the definition of a project pursuant to Section 21065 of the California Environmental Quality Act (CEQA), thus, no environmental review is required. Attachments:  Attachment A: BASE Amendment No 1 (PDF)  Attachment B: BASE Contract C11141002 (PDF) AMENDMENT ONE TO CONTRACT NO. C11141002 BETWEEN THE CITY OF PALO ALTO AND BASE ENERGY, INC. This Amendment No. One to Contract No. C11141002 (“Contract”) is entered into _______________, 2013, by and between the CITY OF PALO ALTO, a charter city and a municipal corporation of the State of California (“CITY”), and BASE ENERGY, INC., a California Corporation, located at Five Third Street, Suite 630, San Francisco, CA 94103 (“CONSULTANT”). R E C I T A L S: WHEREAS, The Contract was entered into between parties for the provision of third-party delivery of a business new construction program; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions and provisions of this Amendment, the parties agree: SECTION 1. Section 2. TERM is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit ‘B’ unless terminated earlier pursuant to Section 19 of Agreement.” SECTION 2. Section 4. NOT TO EXCEED COMPENSATION is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit ‘A,’ including both payment for professional services and reimbursable expenses, shall not exceed Three Hundred Sixty Thousand Dollars ($360,000) for a potential five years.” SECTION 3. The following exhibit(s) to the Contract are hereby amended to read as set forth in the attachment(s) to this Amendment, which are incorporated in full by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES.” b. Exhibit “B” entitled “PROJECT SCHEDULE.” c. Exhibit “C” entitled “COMPENSATION.” SECTION 4. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF , the parties have by their duly authorized representatives executed this Amendment on the date first above written . APPROVED: BASE ENERGY, INC . City Manager ~~i' Name: By: Title: ___ DI-( ~r_L "---'n'-"'C.....,i--~tf"-'cJ"""-'=--- APPROVED AS TO FORM: Senior Asst. City Attorney Attachments : EXHIBIT "A": EXHIBIT "B": EXHIBIT "C": SCOPE OF SERVICES PROJECT SCHEDULE COMPENSATION EXHIBIT A: SCOPE OF SERVICES This document provides a proposal for a contract modification to Base Energy, Inc.’s (“BASE”) Business New Construction Program (BNC), Contract No. C11141002. The main intent of this proposal is to extend BASE’s program for an additional two year and provide funding for this extension to complete a large efficiency project at a major industrial customer in Palo Alto as well as to assist additional industrial and commercial projects that may be completed during this time frame. This will include modifications in the following items from Contract No. C11141002:  Increase the scope of work’s project energy savings from 2,436,669 kWh and 14,665 therms to 5,437,900 kWh and 89,496 therms over the life of the program.  Increase the not-to-exceed BASE amount from $201,391 to $360,000.  Increase the contract term from three to five years.  An alteration in performance payment in that 25% of the performance payment estimated in the customer’s “Detailed BNC Report” be paid at the time that the report is presented to the customer and the customer signs an agreement to complete the work.  An alteration in performance payment with the understanding that if a customer completes an approved project after the completion of the contract, that BASE be compensated for 75% of the performance payment estimated in the “Detailed BNC Report.” EXHIBIT B: PROJECT SCHEDULE Program work plan and timeline will continue as in Contract No. C11141002 with the understanding that the program will be continued until June 30, 2016 (an extension of two years), primarily to allow the completion of one large efficiency project. However, during that time other projects, scheduled to complete prior to June 30, 2016, may be completed in accordance with the scope of work and project schedule from the contract. EXHIBIT C: Compensation Table 1 below provides a cost proposal for the expansion of BASE’s BNC Program through the end of FY 2016 on June 30, 2016. The proposal includes costs for increasing the program length and continuing to deliver the services over the increased term. Table 1 Cost proposal for Extension of BNC through June 30, 2016 Item Amount Payment for identified savings to date, excluding large project $ 45,000 Incentive payment for large project $200,000 Payment for future savings $ 45,000 Time and Materials for Administration and Marketing $ 70,000 Total Payment for Contract Period $360,000 Compensation to be further amended as follows:  An alteration in performance payment in that 25% of the performance payment estimated in the customer’s “Detailed BNC Report” be paid at the time that the report is presented to the customer and the customer signs an agreement to complete the work.  An alteration in performance payment with the understanding that if a customer completes an approved project after the completion of the contract, that BASE be compensated for 75% of the performance payment estimated in the “Detailed BNC Report.” CITY OF PALO ALTO CONTRACT NO. CI1141002 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND BASE ENGINEERING, INC. FOR PROFESSIONAL SERVICES This Agreement is entered into on this I st day of July 2011, ("Agreement") by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY'~, and BASE ENERGY, INC., a California corporation, located at 5 Third Street, Suite 630, San Francisco, CA 94103 ("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 a third-party non-residential new construction energy efficiency program in connection with the Project ("Services"). B. CONSULT ANT has represented that it has the necessary professional expertise, qualifications, and capability, and all required licenses andlor certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULT ANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perfornl 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 of Performance attached as Exhibit "B" unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part of this Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. Professional Services Rev. June 2, 2010 SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Sixty Seven Thousand One Hundred Dollars per year ($67,130 / year) for a not-to-exceed amount of $20 1 ,390 for 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 of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULT ANT 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. OUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or nuder 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, if permitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever natnre 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 of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. 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. If CONSUL TANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICIT ATIONS\CURRENT BUYER-eM FOLDERS\UTlLlTIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.ll\2, BASE\Cll141002.doc omissions or ambiguities discovered prior to and during the course of construction of the Project. This obligation shall survive termination of the 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. If the 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 ~ost 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 of the 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 of any of CONSULTANT's obligations hereunder without the prior written consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 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 Ahmad Ganji as the Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval ofthe 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. OWNERSIDP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, Professional Services Rev. June 2, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.l1\2. BASE\CI1 141002.doc other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the 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 of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the 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 of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party .. 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 of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance orlaw, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. Professional Services Rev. June 2, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.l1\2. BASE\C 11141 002.doc 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with 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 of this Agreement. The certificates will be subjectto the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereofto CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT 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, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLlCITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\13861I Third Party Energy\FINAL.CONTRACTS.l1\2, BASE\CI 1 141002.doc or before the effective date (i.e., 10 days after giving notice) of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such determination may be made by the City Manager acting in the reasonable exercise ofhislher discretion. The following Sections will survive any expiration or termination of this 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 of this Agreement, it will not employ subconsultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Govermnent 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 of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 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 of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICITATlONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.l1\2. BASE\C11141002.doc Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REOUIREMENTS. 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 of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fis9al 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 of such 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 Professional Services Rev. June 2, 2010 \\Cc~terra\Shared\ASD\PURCH\SOLlClTATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROLYNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.ll\2. BASE\C11141002.doc 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. 25.5. The covenants, terms, conditions and provisions ofthis Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the 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 information as defined in California Civil Code section l798.81.5(d) about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect thai Personal Information, and shall inform City innnediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personallnforrnation 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 anthority to do so on behalf oftheir 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 BASE ENERGY, INC. :~.Zft~· City Manager APPROVED AS TO FORM: Title: fr'b n () '.p " e Senior Asst. City Attorney Attachments: EXHIBIT "A": EXHIBIT "B": EXHIBIT "C": EXHIBIT "D": SCOPE OF WORK SCHEDULE OF PERFORMANCE COMPENSATION INSURANCE REQUIREMENTS .. ;. Professional Services Rev. June 2, 20lO \\Cc-tcrra\Shued,\ASO\PURCH\SOLI(;IT ATIONS\CURRENT BUYER-CM FOLDERS\UTILITIES ~ CAROL YNN\RFPs\13B611 Third Party Energy\FTNAL.CONTRACTS.1I\2. BASE\K.CI"I141002.BASE.doc EXHIBIT "A" SCOPE OF SERVICES Consultant shall deliver energy efficiency program to non-residential customers served by the City of Palo Alto Utilities (CPAU) Department. Scope of Work -Task Description To successfully complete this project, BASE proposes dividing the work into the following tasks and sUb-tasks: Task 1 Program Marketing 1.1 Customer Recruitment 1.2 Project Development Task 2 Program Implementation 2.1 Project Feasibility Study 2.2 Process Program Application 2.3 Technical Assistance 2.4 Project Implementation Verification 2.5 Conflict Resolution Task 3 Program Administration 3.1 Meetings and Communications with City of Palo Alto 3.2 Program Set-Up 3.3 Progress Reporting 3.4 Invoicing 3.5 Develop Program Documentation 3.6 Program Closure A description of the tasks and sub-tasks follows. Task 1: Program Marketing The initial marketing objectives will include promoting program awareness and recruiting customers into the program. As the program progresses, the marketing objectives will slightly shift towards maximizing the number of identified projects that get implemented. To successfully complete this task, work will be subdivided into the following subtasks: Sub-Task 1.1: Customer Recruitment Various program marketing materials will be developed and/or purchased to help promote program awareness and recruit customers. Initial marketing materials that will be developed include: marketing plan, program website, brochure, case studies, and presentations. These materials will be disseminated by attending workshops, . organizing informational workshops, mail-ins, and through the program website. Initial program marketing activities will be targeted to: o Architects and Design Engineers: In conjunction with the City of Palo Alto, BASE will organize workshops targeted to architects and design engineers to promote the program and explain how we can collaborate to better serve the customer. Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.l1\2, BASE\C11141002.doc o City of Palo Alto Personnel: In conjunction with the City of Palo Alto BASE will organize workshops targeted to the City's Permitting Department to promote the program and explore ways in which the program can be incorporated (on a voluntary basis) into the new business permitting process. o City of Palo Alto Utility Customers: Existing City of Palo Alto Utility customers will be contacted directly or through their Utility Account Representatives to ensure that customers seeking to construct new buildings/facilities or those who seek to expand existing system capacity can do so in an energy, water, and cost efficient manner. Deliverables: Marketing Plan, Marketing Materials and Program Training Workshops Timeline: Ongoing throughout the program life Sub-Task 1.2: Project Development Potential program customers will be pre-screened through a short phone interview to ensure that the customer is seeking help under the correct energy efficiency program. If our program is not right for the customer, BASE staff will redirect the customer to other City of Palo Alto program that could best serve their needs. After completing the phone interview, BASE will schedule a project kick off meeting with the customer (owner and/or design engineer) to: 1) explain the program partiCipation process and 2) collect needed information to identify the potential energy and water efficiency opportunities. Once the information is collected and analyzed, BASE staff will develop a Technical Memorandum identifying the potential energy and water efficiency opportunities and provide the customer/designer with preliminary water, energy, demand, and cost savings as well as expected incentive amount. The Technical Memorandum will be presented and discussed with the customer. Deliverable: Customer Technical Memorandum Timeline: One week after all needed customer information is collected Program Implementation After reviewing the Technical Memorandum the customer will decide on the energy and water efficiency opportunities to implement. The selected measures will become the basis for developing and processing the Program Application. To successfully complete this task, work will be subdivided into the following sub-tasks: Sub-Task 1.3: Project Feasibility Study A detailed engineering and economic feasibility study will be developed for the customer. The study will describe operation of the designed systems and equipment considered, establish energy and water consumption baselines, estimate the proposed energy and water consumption and energy and water savings, estimate the expected . incremental measure cost, and estimate the potential financial incentive for implementing the recommended upgrades. The feasibility study will help the customer to further assess the economics of the proposed projects and at the same time serve as a basis to more accurately document projected savings. Professional Services Rev. June 2, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.ll\2. BASE\CI1141002.doc Deliverable: Comprehensive Energy and Water Efficiency Feasibility Study Timeline: One month after all needed customer information is collected Sub-Task 1.4: Process Program Application Along with the Project Feasibility Study BASE staff will prepare a Signature-ready Program Application. The Program Application will commit BASE to reserve the estimated incentive amount and commit the customer to implement the selected projects. Deliverable: Signature-Ready Program Application Timeline: Program Application will be delivered to the customer in conjunction with the Project Feasibility Study Sub-Task 1.5: Technical Assistance While the customer moves forward with the project BASE staff will assist the customer with any technical questions regarding the recommended projects. BASE staff will work with the customer's system designers, contractors, and/or equipment vendors to ensure installed projects operate as intended. / Sub-Task 1.6: Project Implementation Verification After proposed projects are implemented and operational the customer will notify BASE of project completion. BASE will schedule a site visit with the customer to inspect the installed project. BASE staff will notify the customer of any deficiencies in implementation and recommended modifications (if needed). Once the implementation verification is approved, BASE will develop a Verification Report to document installed energy saVings. Deliverable: Verification Report Timeline: One week after completing a successful verification inspection Sub-Task 1.7: Conflict Resolution BASE recognizes that specific issues may arise from time to time. BASE will develop procedures for dealing with potential conflicts between BASE-Customer. In addition to developing procedures, BASE will record any outstanding issues and methods of resolution in a Conflict Resolution Log and submitted to the City Program Manager in a quarterly basis. Deliverables: Conflict Resolution Procedures and Log Timeline: Ongoing throughout the program life Task 2: Program Administration Program administration tasks include all activates related to setting up the program, processing incentives, and satisfying reporting requirements and procedures set by the City. To successfully meet City needs, program administration will be divided into the following sub-tasks: Sub-Task 2.1: Meetings and Communications with City of Palo Alto Professional Services Rev. June 2, 2010 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.ll\2, BASE\CI 1 141002.doc A successful energy efficiency program implementation requires close collaboration between the program sponsor (City of Palo Alto Utilities) and program administrator (BASE). Most communication will be done through email or phone conversations, with in-person meetings scheduled on an as needed basis. Sub-Task 2.2: Program Set-Up In this task, BASE staff will attend meetings with the City for further training, familiarity with the City of Palo Alto Utility Organization, and develop all the necessary program documents such as: Program and Procedures Manual, Quality Control Plan, Conflict Resolution Plan, Invoicing Template, and Program Forms. Deliverables: Program Documents Timeline: 1 months after contract is awarded Progress Reporting BASE staff will develop monthly, quarterly, and annual reporting templates that satisfy City of Palo Alto reporting requirements. These reports will be developed and submitted within the timeframe specified by the City of PaloAlto. Deliverables: Monthly, Quarterly, and Annual Progress Reports Timeline: Ongoing through out the program life Sub-Task 2.3: Invoicing BASE will submit a monthly invoice to the City of Palo Alto for program accomplishments and installations performed in the preceding calendar month. Monthly invoices. and supporting documents will be submitted on a schedule specified by the City of Palo Alto. All submissions will adhere to City requirements. Deliverable: Monthly Invoice Timeline: Ongoing through out the program life Sub-Task 2.4: Develop Program Documentation On an as needed basis, BASE staff will develop new program documentation or modify existing program documents to ensure that documents are up to date with new program developments. New program documents may include: new program forms, expanding the portfolio of energy efficiency projects considered under the program, etc. Deliverables: Program Document Updates and/or New Program Documents Timeline: Ongoing throughout the program life (on an as needed basis) Sub-Task 2.5: Program Closure Program activities will start ramping down by October 2013, to ensure all customers can be fully served by the end of the program cycle (December 31, 2013). Prior to the ramp down date, BASE staff will ensure that all services are complete, projects and measures are installed, and all incentives are processed by BASE staff to assure that they can be paid by December 31, 2013. Program closure announcements will be made to the City and posted on the program website to alert program customers. Rev. June 2, 2010 \\Cc-terra\shared\A$D\PURCIDSOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILlTIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.l1\2. BASE\Cl1141002.doc EXHIBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT 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 of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Task 1 Program Marketing 1.1 Customer Recruitment Ongoing throughout the program life 1.2 Project Development Ongoing throughout the program life 1.3 Project Feasibility Study After interested customer located 1.4 Process Program Application After customer approves study 1.5 Technical Assistance After customer approves study 1.6 Implementation Verification After project completed 1.7 Conflict Resolution Ongoing throughout the program life Task 2 Program Administration 2.1 Meetings and Communication At least monthly 2.2 Program Set-Up One month after contract award 2.3 Progress Reporting Monthly 2.4 Invoicing Monthly 2.5 Program Documentation Monthly 2.6 Program Closure 2Q 2014 Professional Services Rev. June 2, 2010 \\Cc-terra\shared\ASD\PURcmSOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.ll\2. BASE\C 11141 002.doc 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$67, 130 per year for a total not­ to-exceed amount of $201,390 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 of the tasks or categories listed below provided the total compensation for Basic Services. Proposal Cost Sheet -Three-Year Program 1 -Program 2- 3 -Program Labor Category I Performance Program Assistant Program Manager Time and Material (Tasks 1 and 3): Performance (Task 2) Total Program Cost Annual Cost: Hours I Savings Hourly Rate I Performance Rate $67,750 $133,641 (33%) (67%) $201,391.00 $ 67,130.33 Cost Professional Services Rev June 2, 20 1 0 \\Cc-terra\Shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.l1 \2. BASE\C 11141 D02.doc 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 WITHAM BEST'S KEY RA TINGOF A-,VII, OR IDGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. A WARD IS CONTINGENT ON COMPLIANCE WITB CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW, MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED, BODILY INJURY $1,000,000 $1,000,000 -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 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 $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED, CONTRACTOR, ATITS 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. 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 SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIIIED 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 Professional Services Rev June 2, 2010 \\Cc~terra\shared\ASD\PURCH\SOLICITATIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FINAL.CONTRACTS.l1 \2. BASE\CI1141 D02.doc 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 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 THENON-PA YMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (lO)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 PALOALTO,CA 94303 Professional Services Rev June 2, 2010 \\Cc-terra\Shared\ASD\PURcmSOLICITA TIONS\CURRENT BUYER-eM FOLDERS\UTILITIES -CAROL YNN\RFPs\138611 Third Party Energy\FlNAL.CONTRACTS.ll\2, BASE\C11141002.doc