HomeMy WebLinkAboutStaff Report 3692
City of Palo Alto (ID # 3692)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/13/2013
City of Palo Alto Page 1
Council Priority: Environmental Sustainability
Summary Title: Solar Water Heating Program
Title: Approval of Solar Water Heating Incentive Program Services Contract
with the Center for Sustainable Energy California
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council
a) Approve, and authorize the City Manager or his designee to execute, the
attached contract with the California Center for Sustainable Energy
(Attachment A) in the amount of $75,000 for the first year, not to exceed
$300,000 over a five year period to provide for Solar Water Heating Incentive
Program services.
b) Authorize the City Manager to extend the contract annually for up to four
additional years, subject to Council approval of sufficient funds.
Executive Summary
The State Legislature enacted California’s Solar Water Heating and Efficiency Act of 2007 (AB
1470) in October 2007, which requires natural gas utilities to implement and fund solar water
heating incentive programs. The City hired California Center for Sustainable Energy (CCSD) in
2008 to provide turnkey program administration services of the Palo Alto Solar Water Heating
program. To date, 40 residential and 2 nonresidential systems have been installed. The current
contract with CCSE expires May 30, 2013. In January 2013, the City issued a Request for
Proposals (RFP) seeking responses from organizations interested in providing comprehensive
Solar Water Heating (SWH) program administrative services. Of the two respondents, the
review team found that CCSE was the most qualified and cost-effective of the two options. The
cost to administer the SWH program is not to exceed $300,000 over five years.
City of Palo Alto Page 2
Background
The State Legislature enacted California’s Solar Water Heating and Efficiency Act of 2007 (AB
1470) in October 2007, which requires natural gas utilities, including the three publicly-owned
gas utilities, Palo Alto, Long Beach, and Coalinga, to implement and fund solar water heating
incentive programs. The proposed contract is intended to ensure effective and successful
design and implementation of a solar water heating program in order to meet the goals
described in the City’s Ten-Year Energy Efficiency Portfolio Plan and to fulfill the statutory
requirements described in AB 1470.
A “solar water heating system” as defined in AB 1470 is a solar energy device with the primary
purpose of reducing demand for natural gas through water heating, space heating, or other
methods of capturing energy from the sun to reduce natural gas consumption in a home,
business, or any building receiving natural gas that is a utility retail customer that meets or
exceeds certain eligibility criteria. CPAU’s estimated proportionate share of the State-wide
goal to install 200,000 solar water heating systems by 2017 is approximately 500. The City hired
California Center for Sustainable Energy (CCSD) in 2008 to provide turnkey program
administration services of the Palo Alto Solar Water Heating program. To date, 40 residential
and 2 nonresidential systems have been installed. The current contract with CCSE expires May
30, 2013.
Discussion
In January 2013, the City issued a Request for Proposals (RFP) seeking responses from
organizations interested in providing comprehensive Solar Water Heating (SWH) program
administrative services. The RFP was sent to eight consulting firms known to offer relevant
services (of these two responded to the RFP). Of the two respondents, the review team found
that CCSE was the most qualified and cost-effective of the two options.
The California Center for Sustainable Energy (CCSE) is a highly qualified non-profit organization
with demonstrated capability to perform the work. CCSE has been managing California Solar
Water Heating programs for over six years for the customers of both City of Palo Alto Utilities
and San Diego Gas and Electric. CCSE will provide services in the following areas:
1. Review and update the current SWH program design
2. Develop and implement a SWH Program Marketing Plan
3. Provide SWH program training and customer education
4. Provide turnkey SWH program implementation
5. Explore innovative SWH program enhancements to work to enhance customer adoption
of this technology
City of Palo Alto Page 3
Resource Impact
The total budget impact by fiscal year is shown below:
Contract
Allowance
Per Year
Year 1 Year 2 Year 3 Year 4 Year 5 Total Contract
Not-to-Exceed
$75,000 $65,000 $60,000 $50,000 $50,000 $300,000
Note that these costs are for program development and implementation. Customer rebates
will be paid out of the natural gas funds for alternative supply. Funds for FY 2014 and FY 2015
are included in the Gas Fund proposed budgets. Funds for subsequent years will be subject to
appropriation of funds in subsequent budgets.
Policy Implications
The proposed contract supports the Council-approved Gas Utility Long-Term Plan, the Ten-year
Energy Efficiency Portfolio Plan, and Comprehensive Plan Goal N-9. Implementation of the solar
water heating incentive program supports greenhouse gas reduction goals identified in the Palo
Alto Climate Protection Plan as well as the California Global Warming Solutions Act of 2006 (AB
32) and meets the statutory requirements of California’s Solar Water Heating and Efficiency Act
of 2007 (AB 1470 ).
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: Contract No. C13148473 (PDF)
CITY OF PALO ALTO CONTRACT NO. C13148473
AGREEMENT BETWEEN THE CITY OF PALO ALTO AND
CALIFORNIA CENTER FOR SUST AINA8LE ENERGY
FOR PROFESSIONAL SERVICES
This Agreement is entered into on this 31 st day of May, 2013, ("Agreement") by and
between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and
CALIFORNIA CENTER FOR SUSTAINABLE ENERGY, a California corporation, located at 9325
Sky Park Court, Suite 100, San Diego, CA 92123 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to provide a solar water heating incentive program ("Project") and desires to
engage a consultant to provide a turnkey solution 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 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 of the recitals, covenants, terms, and conditions, this
Agreement, the parties agree:
AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perfonn. the Services described in
Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shaH be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The tenn of this Agreement shall be from the date of its full execution tJu'ough May 30, 2018 unless
tenninated earlier pursuant to Section 19 of this Agreement.
SECTION 3. SCHEDULE OF PERFOR1\1ANCE. Time is of the essence in the performance of
Services under tlus Agreement. CONSULTANT shall complete the Services within the tenn 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 perfonnance are not specified in this
Agreement shall be commenced and completed by CONSULT 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 perfonnance shall not preclude recovery of
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damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services described in Exhibit "A", including both payment
for professional services and reimbursable expenses, shall not exceed Two Hundred Ninety Five
Thousand One Hundred Sixty Three Dollars ($295,163). In the event Additional Services are
authorized, the total compensation for services and reimbursable expenses shall not exceed Three
Hundred Twenty Four Thousand Six Hundred Seventy Nine Dollars ($324,679). The applicable
rates and schedule of payment are set out in Exhibit "C-l", entitled "HOURLY RATE
SCHEDULE," which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions of
Exhibit "C" . CONSULTANT shall not receive any compensation for Additional Services performed
without the prior written authorization of CITY. Additional Services shall mean any work that is
determined by CITY to be necessary for the proper completion of the Project, but which is not
included within the Scope of Sen/ices 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-I ").
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
perfonned 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 perfonn the Services
assigned to them. CONSULTANT represents that it, its employees and sub consultants, 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 eugaged 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 perfonnance 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. CONSUL TANTshall correct, at no cost to CITY, any and
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Rev. June 2, 2010
all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives
notice to CONSULTANT. If CONS UL TANT 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.
This obligation shall survive tennination 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 (l 0%)
of the CITY's staled construction budget, CONSULTANT shall make recommendations to the
CITY for aligning the PROJECT design with the budget, incorporate CITY approved
reconunendations, 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 perfonning
the Services under this Agreement CONSULT ANT, and any person employed by or contracted with
CONSULTANT to furnish Jabor 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 perfonnance of any of CONSUL TANT' s obligations
hereunder without the prior wrilten 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 n. SUBCONTRACTING.
CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement
without the prior written authorization of the city manager or designee.
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 subconsuJtants only with the plior approval of
the city manager or his designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign 10rdanDiGiorgio
as the Senior Program Manager to have supervisory responsibility for the perfonnance, progress, and
execution of the Services to represent CONSULT At'JT 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 of the CITY's project
manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do
not perfonn 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 safely of persons or property.
The City's project manager is Llndsay Joye, Utilities Department, Marketing Division, 250
Hamilton Avenue, Palo Alto, CA 94303, Telephone (650)329-2680. The project manager will be
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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
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 of CITY without restriction or limitation upon their use. CONSULTANT agrees
that all copyrights which arise from creation ofthe work pursuant to tlus 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, ifany, 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 telm of this Agreement and for three (3) years thereafter, CONSULTANT's records
pertaining to matters covered by this Agreement. CONSULT ANT further agrees to maintain and
retain such records for at least three (3) years after the expiration or earlier tennination of this
Agreement.
SECTION 16. INDEMNITY.
16.1. To the fullest extent pennitted 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 perfonnance or
nonperfonnance 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 const.rued 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 servjces and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section J 6 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant,
term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not
be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of
any subsequent breach or violation of the same or of any other term, covenant, condition, provision,
ordinance or law.
SECTION 18. INSURANCE.
18.1 . CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full
force and eITect dW"ing the tenn ofthis Agreement, the insurance coverage described in Exhibit "D".
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CONSULT ANT and its contractors, if any. shall obtain a policy endorsement naming CITY as an
additional insured under any general liability Of automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through caniers
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 Califol11ia. 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 insw'ance shall be filed with CITY concurrently
with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk
Manager and will contain an endorsement stating that the insurance is primary coverage and will not
be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the
Purchasing Manager thirty (30) days' prior written notice of the cancellation Of modification,
CONSULT ANT shall be responsible for ensuring that cunent 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 tOlal amount of any damage, injury, or toss caused by or directly arising as
a result of the Services perfonned under this Agreement, including such damage, iJ1jury, or loss
arising after the Agreement is tenninated or the term has expired.
SECTION 19. TERMlNATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1 . The City Manager may suspend the perfolmance of the Services, in whole or
in part, or tenninate this Agreement, with or without cause, by giving ten (10) days prior written
notice thereof to 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 th.i11y (30) days prior written notice thereof to CITY, but only in the event of
a substantial failure of perrormance 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 CO NSUL T ANT or its contractors, if any, or given
to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will
become the propeliy of CITY.
19.4. Upon such suspension or tennination by CITY, CONSULTANT will be paid
for the Services rendered or materials delivered to CITY in accordance with the scope of services on
or before the effective date (i.e., 10 days after giving notice) of suspension or tennination; provided,
however, if this Agreement is suspended or tenninated on account of a default by CONSULT ANT,
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 detennination may be made by
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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 l0250
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 fmancial interest under this Agreement is an officer
or employee of CITY; this provision will be interpreted in accordance with the applicable provisions
of the Palo Alto Municipal Code and the Government Code of the State of California.
21.3. lfthe Project Manager determines that CONSULTANT is a "Consultant" as
that tenn is defined by the Regulations of the Fair Political Practices Conunission, CONSULTANT
shall be required and agrees to file the appropriate financial disclosure docwnents required by the
Palo Alto Municipal Code and the Political Refonn Act.
SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section
2.30.5\ 0, 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
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
REQUIREMENTS. CONSULTANT shall comply with the City's Envirorunenlally Preferred
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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 of 30% 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 0[30% 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 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 0 f this
Agl."eement.
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 fail" 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 me 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 instTUment, which is signed by the parties.
25.5 . The covenants, terms, conditions and provisions of this Agreement will apply
to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the
parties.
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25.6. If a coul1 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 defmed 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 infonn City
immediately 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 Personal Information for direct
marketing purposes without City's express written consent.
25.9 All unchecked boxes do not apply to this agreement.
25.10 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 P ALO ALTO
City Manager
APPROVED AS TO FORM:
Executive Director
Senior Asst. City Attorney
Attachments:
EXHIBIT "A":
EXHIBIT "B":
EXHIBIT "C":
EXHIBIT "C~l":
EXHIBIT "D":
SCOPE OF WORK
SCHEDULE OF PERFORMANCE
COMPENSATION
SCHEDULE OF RATES
INSURANCE REQUIRE:M.ENTS
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EXHIBIT "A"
SCOPE OF SERVICES
CCSE's work plan has two key components:
I. Continue to update and administer the current CPAU SWH program
2. Investigate innovative measures to increase program participation
We have organized this work plan to be responsive to the scope of services (RFP Attaclunent B).
Below we repeat the tasks as listed in the RFP scope of services (in italics) followed by a narrative
describing our approach to accomplishing that task.
Task 1. Review and Update Current SWH Program Design
Monitor legislative and reglliatory activities that impact the CPAU SWH Program. and adapt the
Program Handbook on an as needed basis to reflect changes or updates to statutory or policy-driven
requirements. Program shall match the CSI-Thermal program where applicable. Program
documents include:
a) Program handbook
b) Installation checklists
c) Program reservation and claimforms
d) Contractor participation forms
CCSE has a team of policy analysts and program administrators who are tasked with keeping current
regarding solar water heating legislation, regulation and programmatic changes. As previously
stated our team also administers the CSI-Thermal program and therefore has extensive knowledge of
upcoming program changes and can anticipate changes and evaluate the appropriateness for the
CPAU program.
We will meet with CPAU staff to review program history, and discuss program cbanges to remain
consistent with CSI-T and any suggested changes in the handbook, checldists and forms.
We will then update the Program handbook, checklists, and foons as weB as provide website update
content. At a minimum we anticipate incorporating the latest changes in tbe CSI-T program
regarding solar thermal heating and cooling (combi-systems) and swimming pool heating for both
commercial and multifamily residential applications.
Task 2. Develop and Implement a SWH Program Marketing PLan
Marketingplan should be tailored/or CPAU customers to increase the number ofSWH
installations.
a) Develop program marketing collateral
b) Provide website content
c) Develop marketing campaign for cllstomers and contractors
In our contract kick-off meeting with CP AU we will discuss past and ongoing marketing activities,
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and make recommendations on needed marketing activities to infonn stakeholders of any program
changes and updates. As a result of the meeting we will develop an interim marketing plan to serve
until further marketing activities are developed under Task 5. The interim marketing plan will
develop collateral, provide website content, and we will develop a marketing campaign for
stakeholders. Marketing changes directed to cause an increase in the rate of program application are
covered under Task 5 as described in detail in Chapter 5.
Task 3. Provide SWH Program Training and Customer Education
a) Provide trainingfor City staff contractors and cllstomers
b) Provide SWH expertise and consultation on al1 as needed basis for specific
projects
CCSE SWH tearn will brief or train city staff as appropriate as program changes are made. We have
been providing homeowner workshops and plan to continue providing one per year. Given the
similarity of the CPAU SWH program and the CSI-Thcnual we have been able to leverage the CSI
Thermal eligibility workshops for contractors. We have budgeted for one contractor workshop in the
event the CP AU program is significantly changed from the CSI-Thermal Program. Additional
support for participating contractors will be provided by direct communication via phone and email
and through online training sessions presented via webinar.
CCSE SWH staffwiH continue to be available by phone and email to CPAU conb'actors, customers,
and staff on an as needed basis. The program will continue to be supported by an expel1 staff energy
engineer who has 35 years of technical experience in solar water heating. In addition, we have
knowledgeable administrative staff with years of experience on the CPAU SWH Program and CSI-T
Program.
Task 4. Provide SWH Program Implementation
a) Manage applications, mailings and rebates
b) Maintain a cllstomer toll free telephone cal! center
c) Maintain eligible contractors list
d) Conduct compliance inspections on a sample ofinstallatioJ1s
e) Maintain a database of Program participants, reservations, and payments, to which Oty
staff has access .
./) Provide all data, analyses, and information to CPAU to support Program evaluation and
reporting requirements, including, but not limited to:
J) Installation technical and cost details,
2) Estimated energy and demand savings, and
3) Other requirements as required by ABJ470 or as subsequently amended.
4) Monthly summQlY reports listing allllew. pending, and completed applications.
5) Quarterly reports summarizing the program status and projections 011 both a
Calendar Year (January 1 to December 31) and Fiscal Year (July 1 to June 30)
basis. Prepare and independent verification report to be submilted to the California
Professional SeIVices
Rev. June 2, 2010
Energy Commission.
CCSE has and will continue to:
• Promptly processes applications and inform CPAU staffwhen a rebate payment is required.
Applications are managed through an online database and all backup documentation is filed
appropriately. Provide a dedicated CPAU SWH toll free nwnber which comes directly to a SWH
staff member to answer any questions customers or contractors may have.
• Work in conjunction with CPAU staff to update the list of eligible contractors and keep it
current on the CPAU SWH website.
• Subcontract with SolGrid Energy, a qualified and independent inspector, to complete
program inspections
• Maintain a complete database of program infonnation and share it with City staff monthly
and as requested.
• Provide CPAU with data, analyses and information on installation details, energy and
demand savings, and other AB 1470 requirements.
The infonnation required from the quarterly report is and will continue to be included in the monthly
program rep011.
Task 5. Explore Innovative Program Enhancements
Evaluate program enhancements to lower installation cost and increase number of SWH
installations. Options may include group buy, solar lease and other innovative program ideas.
Exploring innovative program enhancements is a key part of CCSE's proposal. We have detailed
our approach in Chapter 5.
Professional Services
Rev. June 2,2010
Proposed Innovations
CCSE will investigate and consult with the City of Palo Alto Utilities Department on iIUlovative and
creative measW"es that can be implemented to help improve program participation. Such creativity is
critically needed to increase program participation. The low price of natural gas does not make solar
water heating attractive from an economic perspective and is the prime reason participation rates are
low in both the California Solar Initiative (CSI~T) SWH and City of Palo Alto SWH Program.
It is unfortunate that the financial economics are not more attractive since solar water heating has
great potential in reducing greenhouse gas (GHG) emissions and helping to address climate change
as envisioned in AB-1470. Figure 1 below clearly indicates that solar water solar has the largest
residential natural gas reduction potential.
W IQf t'balor Bbnl< t
Ce4Ing h:5 ulalion
£n ,gy SV:U Otsh W h
1'£ Wal , H&aler
Floor h:5 uloa 1IOn
t-W AC l tJng & Alpail
Duct A:!paI
Low Flow ShOW or au
Prog~ Th&tm;)3tal
D.Jc: I h:5 ulallOn
B<*( Cbn:rob
HEBo*J,
nf .l~ Roduc;.1ioo
t-E CIoIhel! Dr)! e<'
o
Figure 1
200 400 600 800 1.000
MIllions of ThermSIY. r R.malnlng Po btntlal
Source: KEMA CALIFORNIA STATEWIDE RESIDENTIAL SECTOR ENERGY EFFICIENCY
POTENTIAL STUDY, April 2003
CCSE is in a unique position to effectively investigate numerous potential approaches to address the
dilemma that solar water heating has great potential to reduce GHGs but is not currently perceived to
have an attractive value proposition. We will leverage the experience, knowledge, and lessons
learned from managing and administering a significant number of relevant solar and solar thennal
programs and studies. More detail on these programs is covered in Chapter 3: Finn Qualifications.
The CSI-Thennal Program $4.5 million dollar statewide marketing campaign is one initiative
particularly relevant to this issue. This marketing campaign conducted by Fraser Communications at
the direction of the CSI -T program administrators over the last year and a half was designed for
customers making non-price-motivated decisions, targeting consumers inclined to make consumer
Proressional Services
Rev. June 2, 2010
choices based on environmental concerns-framing SWH as another step on the consumer's "green
routine." The marketing techniques employed by Fraser are listed in Appendix Attaclunent C.
Figure 2 below shows CSI-T application rates in PG&E territory based on current CSI-T program
data, and demonstrates no marked increase in applications received since the launch of the Fraser
statewide marketing campaign in April 2012. The increase in applications in April 2012 can be
attributed to the launch of the low-income portion of the program, and the slight increase in
applications in October 2012 is most likely due to an increase in incentive rates. However, the rate
of pa11icipation has consistently dropped back down after a brief launch spike [or each of these
events.
Figure 2
~
.~ NlrU
40
l'
IG
a
10
1\
10
o
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ v v v ~ v ~ ~ ~ ~ ~ ~ ~ y v v ~ y ~ v ~ ~ ~ §' ,-¥ ., </,' d" ;I" rF ,# .lI.tJ,..t· -I',~ ,1' +<;( cF ~. rF -i -!' # ~ .... # ,.I' ,~ ,1' # cF . <Jf ,~ I -~I...,.tr"'_"11oII -Mu"'"' ........ _I0.>1"'''''''''''''''''' "~;I_t,""...,.."" lawln<OlTlO -lot.>IPr';"'h -Poly I' Pr0l.d,)
This graph demonstrates that:
• Economics playa key role in the decision-making process of potential applicants
• Incentive levels have not been sufficient to overcome low natural gas prices
• Innovative programs and creative marketing and outreach approaches are needed
CCSE proposes to investigate several areas of innovation with potential to increase program
participation:
I. Cost Reduction
2. Packaging/Combining Programs
3. Financing
4. Creative marketing and outreach
Cost Reduction
Since SWH technology is lacking the economies of scale benefit and commensurate uptake rates of
photovoltaic (PV) systems, CCSE proposes addressing ways to decrease the cost of SWH. CCSE
believes that there are potential cost reductions tbat can be made through contractorlinstaller
efficiencies and in addressing the soft costs involved in permitting and processing. CCSE will bring
its knowledge and expertise gained in administedng the SunShot Program for the Department of
Energy that looks at similar reduction of "soft costs" for PV.
CCSE will also investigate the economics of new technologies that have been added to the CSl-T
program and should likely be added to CPAU program as weJI. One area of opportunity is to
investigate the econom.ics ofSWH systems when combined with solar thermal heating and cooling
Professional Services
Rev. June 2, 2010
(combi-systems) and swimming pool heating for both commercial and multifamily residential
applications. In addition, CCSE is paLt of a proposal to DOE, along with Lawrence Berkeley Lab, to
investigate SWH as an energy efficiency measure. In this proposed study, CCSE will examine
combining solar thermal systems for water heating, space heating and cooling, with high efficiency
heat exchangers that tap the energy in water supply system and geothermal in the surrounding earth.
If selected we will be able to leverage that DOE study to the benefit of the CPAU SWH Program.
1. Packaging/Combining Programs
A second area of proposed innovation is packaging the SWH program with other renewable energy
and demand reduction programs. Driven by separate legislation and/or financing sources, energy
program tends to be mutually exclusive of each other. As a result, the homeowner is presented with
separate programs, rules and marketing efforts for solar electric, solar water heating, energy
efficiency and electric vehicles. Moreover, the value proposition for each is presented separately.
Thus, home and building owners who are interested are often left confused, overwhelmed, and
choosing not to participate. By ofTering bundled solutions, CP AU could simplify its marketing and
better clarify the value proposition for sustainable energy solutions by customer type. Based on such
an approach, a homeowner could be looking at the economics of a combined program rather than
SWH by itself. This approach could also lead to less confusion and may accelerate adoption among
consumers of all programS. It could also include a more integrated approach by completely
integrating and simplifying the programs and/or adding an additional incentive that increases as
more programs are implemented. By working with CCSE on such an innovation, CPAU could lead
the state in truly providing integrated demand side management offerings to its customers.
2. Financing
Financing is the third proposed innovation area CCSE would investigate. A SWH system is a
significant investment. The burst in the housing bubble eliminated a significant portion of home
equity that could have been tapped to finance SWH at reasonable interest rates resulting in fewer
people who have the up front disposable cash for an outright purchase. Innovative financing options
we propose to look at include:
• Property Assessed Clean Energy (PACE) -A property lien serves as the collateral
• Leasing ~ Eliminates up front cost and issues of ownership
• GrouplNeighborhood Buying -Reduces cost through volume and/or move in/move
costs for installers
3. Creative marketing and outreach
There is more to the value proposition thanjust the cost of the system and the length of the payback
period. There is comfort value. For example radiant floor heating is one of the most comfortable
forms of space heating and can be combined with SWH collectors. There is also social "green"
value in doing the "right thing" to reduce GHG's and participating in addressing climate change and
global wanning. This is especially tme when one's neighbors are already participating or involved
in group buys. We plan to investigate these social influences of the value proposition and marketing
techniques to communicate and demonstrate these areas.
Two specific marketing areas we plan to investigate are experiential marketing and community
based social marketing (CBSM). CCSE will investigate creative and innovative experiential
marketing ideas to engage the public with solar water heating in a personal and entirely new way.
Unlike typical advertising measures, experiential marketing is accessible to consumers at the local
Professional Services
Rev. JWle 2,2010
level and is particularly effective with lesser known technologies. CBSM is designed to target
specific barriers prohibiting action and showcase benefits to combat each barrier. This well studied
approach makes use of social norms and influencers to change behavior and understanding instead
of merely promoting a product, spreading awareness or conveying a certain piece of infonnatiofl.
Professional Services
Rev. June 2, 2010
EXHIBIT "B"
SCHEDULE OF PERFORMANCE
CONSULT ANT shall perfolm the Services so as to complete each ~nilestone 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 tel1ll 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.
Milestones
1. Review and Update Current SWH Program Design
2. Develop and Implement a SWH Program Marketing Plan
3. Provide SWH Program Training and Customer Education
4. Provide SWH Program Implementation
5. Explore Innovative Program Enhancements
Completion
No. of Days/Weeks
From NTP
On going
On going
On going
On going
On going
Professional Services
Rev. June 2, 2010
EXHIBIT "C"
COMPENSATION
The CITY agrees to compensate the CONSULTANT for professional services perfonued 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 exhibit C-l 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") and reimbursable expenses shall not exceed
$295,163 . CONSULTANT agrees to complete all Basic Services, including reimbursable
expenses, within this amount. In the event CITY authorizes any Additional Services, the
maximum compensation shall not exceed $324,679. Any work perfonned 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, including reimbursable expenses, does not exceed $295,163 and the total
compensation for Additional Services does not exceed $29,516.
BUDGET SCHEDULE NOT TO EXCEED AMOUNT
Task 1 $11,737
(Review and Update Current SWH Program Design)
Task 2 $21,152
(Develop and Tmplemenr a SWH Program Marketing Plan)
Task 3 $20,044
(Provide SWH Program Training and Customer Education)
Task 4 $181,060
(Provide SWH Program Implementation)
Task 5 $30,409
(Explore Innovative Program Enhancements)
Sub-total Basic Services $264,402
Reimbursable Expenses $30,761
Total Basic Services and Reimbursable expenses $295,163
ProfessioMJ Services
Rev June 2. 2010
Additional Services (Not to Exceed) $29,516
Maximum Total Compensation $324,679
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insw-ance and other ordinary business expenses are included
witbin the scope of payment for services and are not reimbursable expenses. CITY shall
reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for
which CONSULTANT shall be reimbursed are:
A Travel outside the San Francisco Bay area, including transportation and meals, will be
reimbursed at actual cost subject to the City of Palo Alto's policy for reimbw-sement of travel
and meal expenses for City of Palo Alto employees.
B. Long distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges are reimbursable at actual cost.
All requests for payment of expenses shall be accompanied by appropriate backup
infonnation. Any expense anticipated to be more than $100 shall be approved in advance by
the CITY's project manager.
ADDITIONAL SERVICES
The CONSULT ANT shall provide additional services only by advanced, written
authorization from the CITY. The CONSULTANT, at the CITY 's project manager's request,
shall submit a detailed written proposal including a description of the scope of services,
schedule. level of effort, and CONSULTANT's proposed maximum compensation, including
reimbmsable expense, for such services based on the rates set forth in Exhibit C-J • The
additional services scope, schedule and maximum compensation shall be negotiated and
agreed to in writing by the CITY's Project Manager and CONSULTANT prior to
commencement of the services. Payment for additional services is subject to all requirements
and restrictions in this Agreement
Professional Se",ices
Re\' June 2, 20 I 0
T cuk J. R.""""'" ud UpdQ.~ CwT~1II S WH Ubor C:lIe~<>ry E.llim~tcd
Pr~lt'" MOun
O"",dor 1
St. ~Wuge<' 6
~tv-i'«>f 10
1\bn.i;g,oi:'r 35
. .\nociate SO
TOULS
T,ak 2. D~wlop & brtpl~lfte.lIc 11 SWlf Enimat.c Ubor ~'?~ [y V aT/wiltS Pf.cJ! H~IlC'5
Oir*tor 1 s.r. M~,, __ 10
S~....". 0
~.l.2.u1l"'" 60
A..oc~te 160
TOBLS
Tt:t.tk 3. Provid. SWH Pr~c,.. TUIl~ llJtd UOOt C4.t"~ory c,tim>lod
C=:o~,. Etbu:aIiqll Ho~.
Diro:lQ>{ 4
j St. lI.ianagC1" S , S-open-isor 65
i\tm.g.~ -15
A .. ox:i.u, 65
TOBLS
T~ .( Prt»idd SWH ~ u hru" Cat"-fOtY E'.trinut;;<!
iLwPLr ""UUD.Ji.o" Houn
Dit""tor 10
Sr. M~g<1' 100
Supen-iJor 100
~Wu.g~1" 500
A....oci:lt~ 1225
TOULS
TaP< 5. Explor"I""tn.'t1IiJJ<! P~ogTC1ft Lt.!>e>f Cat <-gltl)! &tim.ued
E""aJl.c~"'eIt~ H01.ln
L.~OR
Direct01 4
Sr.~~'" 12
Sup<:r-.oor so
~.I.11U~"'" 1~5
Aaociale 45
TOT.US
PROGR:\,M TOTAI.
Hourly Eotiautcd Labor
R...t~ CMt
SIS! $362
SJ30 SiSO
SHl ~1.110
SIll $3,885
$70 $5 600
~11.737
Hourly E..tinutod Labor
illl~ ~.t
5196 S392
5140 Si,400
SI20 SO
S120 $'1,200
S76 SI~,l60
S,21,152
HC'urly e:.timaled U~()f
illl .. Co"St
SI96 5784
$140 SI,120
S120 SH OO
S120 $5,400
S76 $4,940
$20,0-4-4
Honrly f.uinu.~ b oor
R~t;: Cm!
S196 $1,960
5140 ':)14,000
SJ20 S12,OOO
S120 560,000
S76 S93,lOO
S181,06()
HOljrty Eotiauted u bor
fW:e Cost
S181 1724
S130 Sl,560
SI ll $8,880
S1I1 $16,095
$70 S3,150
,30,409
264.402.00
Ex~3e' T2!kTot..t
$465 $12,202
Ex~ T .. ,k Tot ... 1
:$312 $21,464
Ex""' ....... TukToral
$3,758 $23,802
Expe:r "" T3.k Tol;ol
$25,010 $206.D70
E..,=Pi'I' ~. T:nI.:Tot.ll
S1.216 $3"t625
30,760.78 235,162.78
Professional Services
Rev June 2, 2010
EXHIBIT "C-l ')
HOURLY RATE SCHEDULE
CCSE proposes to complete the work plan described in this proposal for a sum representing actual
time spent at our hourly labor rates plus direct costs, not to exceed $300,000. Our hourly labor rates
are as follows:
Table 1. Annual Labor Rates by Labor Category
Calendar Year
Labor
Category 2013 2014 2015 2016 2017
Director 181.00 188.00 196.00 204.00 212.00
Sr. Manager 130.00 135.00 140.00 146.00 152.00
Supervisor 111.00 115.00 120.00 125.00 130.00
Manager 111.00 liS.OO 120.00 125.00 130.00
Associate 70 .00 73.00 76.00 79.00 82.00
Our labor rates in Table 8-1 above reflect 4% annual increases. Our cost estimates assume that work
will occur in all tasks each year with the exception of Task 5 which we assume will be completed in
2013, Consequently we have used 2013 rates for Task 5 and 2015 rates as an average for all years in
Tasks 1 through 4.
Table 8-2 on the following page swrunarizes, by work plan task, the budgeted amounts. Tables 8-3
through 8-7 provide ftn1her detailed cost estimates by task
ProfeSSional Services
Rev June 2, 20 JO
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 COMPAN[ES wrw AM BEST'S KEY RATING OF A·: VlI, OR HI GIl ER, LICENSED OR AUTHORlZED TO TRANSAcr [NS U RANCE BUSINESS IN
THE STATE OF CALI FORN[A.
AWARD [S CONTINGENT ON COMPLIANCE W[TH CITY'S INSURANCE REQUIREMENTS AS SPECIF[ED BELOW' -
MINIMUM LIMITS
REQUIRED TYPE. OF COVERAGE REQUIREMENT EACH
YES
YES
YES
ns
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 DAtvlAGE BLANKET
CONTRACTUAL, AND F[RE LEGAL BODILY INJURY & PROPERTY DAMAGE S 1,000,000 S 1,000,000
LiABILITY COMBINED.
BOOll Y INJURY 51,000,000 SI,OOO,OOO . EACH PERSON S 1,000,000 SI,OOO,OOO . EACH OCCURRENCE S 1.000,000 $1,000,000
AUTOMOBILE LlABlLlTY,INCLUDING
ALL OWNED, HIRED, NON·OWNED PROPERTY DAMAGE SI ,OOO,OOO SI,OOO,OOO
BODILY INJURY AND PROPERTY SI,OOO,OOO SI,OOO,OOO
DAMAGE, COMBINED
PROFESSIONAL LIABILITY, INCLUDING,
ERRORS AND OMISSIONS,
MALPRACTICE (WHEN APPLICABLE),
AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000
THE CITY OF PALO ALl'O IS TO BE NAMEO AS AN ADDITIONAL INSURED, CONTRA('TOR, 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 I'JEREIN OESCR}BED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS,
IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL
INSURANCE, NAM[NG AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A PROVISION FOR A WRIITEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN
COVERAGE OR OF COVERAGE CANCELLATION; AND
B. A CONTRACTUAL LLABILITY ENDORSEMENT PROVIDING rNSURANCE 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 REQUIRED COVERAGE.
III. ENDORSEMENT PROVIS[ONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL
INSUREDS"
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS AR[SING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS
AFFORDED BY THIS POLlCY [S PRIMARY AND [S NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER
INSURANCE CARRIED BY OR FOR THE BENEFJT OF THE ADDITIONAL INSUREDS.
8. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORA TION AS INSUREDS UNDER THE POLICY SHALL
ProressioJl~ I Services
Rev June 2,2010
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 CANCELLA T[ON
I. IF THE POLICY IS CANCELED BEFORE ITS EXP[RA TION DATE FOR ANY REASON OTHER
THAN TH E NON·P A Y M ENT OF PREMIUM, THE ISSU ING COMP ANY SHALL PROVIDE CITY
AT LEAST A H-URlY (30) DAY WR[TTEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.
2. JFTHE POLICY [S CANCELED BEFORE [TS EXPIRATION DATE FOR THE NON·PAYMENT
OF PREMIUM, THE [SSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DA Y
WRITTEN NOT[CE BEFORE THE EFFECTIVE DATE OF CANCELLA TlON_
NOTICES SHALL BE MAILED TO:
PURCHASING AND CONTRACT ADMINISTRATION
CITV OF PALO ALTO
P.O. BOX 10250
PALO ALTO, CA 94303
Professional SelVlces
Rev June 2, 2010