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HomeMy WebLinkAboutStaff Report 14384 City of Palo Alto (ID # 14384) City Council Staff Report Meeting Date: 6/20/2022 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs for a Total-Not-to-Exceed Amount of $675,000 Over a Three Year Term Ending June 30, 2025 From: City Manager Lead Department: Utilities Recommendation Staff recommends the Palo Alto City Council: (1) Approve and authorize the City Manager or designee to execute the Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs (Agreement), comprised of $600,000 for water conservation programs and $75,000 for stormwater programs over the three-year contract term ending June 30, 2025, for a total-not-to-exceed amount of $675,000; and (2) Authorize the City Manager or designee to adjust the reimbursement amounts for the Water Conservation and Stormwater Rebate Programs, so long as the City’s total contribution does not exceed $600,000 for water conservation programs and $75,000 for stormwater programs over the three-year contract term ending June 30, 2025. Executive Summary To achieve state and local water conservation and efficiency objectives, the City of Palo Alto Utilities (CPAU) partners with the Santa Clara Valley Water District (Valley Water) to offer a suite of conservation programs and services to Palo Alto’s residential and commercial water customers. Valley Water offers the programs in the City’s service area, and the City adds funding to some of the programs. The Rain Barrel Distribution Events and the Home Water Use Reports are administered by the City while Valley Water adds funding. The existing Memorandum of Understanding (MOU) governing these programs expires June 30, 2022. Staff recommends approval of the proposed Agreement with Valley Water for a new three- year term allowing Valley Water and the City to administer a variety of water conservation City of Palo Alto Page 2 programs and allow the City to match funding for some of those programs, effectively increasing incentives for Palo Alto residents and businesses to reduce water use. Under the proposed Agreement, Palo Alto will match Valley Water-funded rebates for landscape conversion rebates, graywater systems, submeters, rain barrels, cisterns, and rain gardens resulting in higher incentives for the Palo Community. Rebates for the first three programs will be funded from the Utilities Department budget while rebates for the remaining programs will be funded by the City’s Stormwater Management Fee. In addition, Valley Water will pay 50% of the cost of Palo Alto’s Home Water Use Reports, up to $625,000. Marketing for all water conservation programs is shared between Valley Water and the City. Implementation and administrative functions for these programs (e.g., scheduling, budget tracking and invoicing, contractor oversight, customer service, and project reporting associated with program implementation) is managed by City and/or Valley Water staff, depending on the program. Historically, these water efficiency programs administered through Valley Water have been cost effective, meaning the cost of implementation is lower than the City’s water supply cost, and this trend is expected to continue. The funding provided by Valley Water through this partnership enables Palo Alto to receive more benefits and cost savings than would be achieved through self-administered water efficiency programs. The total not-to-exceed amount from the City is $225,000 per year and $675,000 over the three-year term in incentives. Background State requirements and Council policies have resulted in aggressive water reduction goals which are largely achieved through conservation and efficiency programs. Valley Water and Palo Alto use innovative technologies and cost-effective programs to best utilize the annual water conservation operating budget. The guiding document for water utility efficiency goals is the Urban Water Management Plan (UWMP) (Staff Report #12025). The UWMP is updated every five years and outlines the long-term supply and demand-side issues and policies impacting the water utility. The UWMP also details the measures CPAU will take to reach its water reduction goals, through a series of Demand Management Measures. For over a decade Valley Water has delivered water conservation programs to residents and businesses throughout Santa Clara County. Council has approved a series of MOUs, the most recent of which was Staff Report #11295, for the delivery of water conservation and efficiency programs to the Palo alto residents and businesses. Valley Water and the City co-fund various programs and partner to promote residential and commercial sanitary fixtures, free conservation devices, indoor and outdoor water efficiency surveys, irrigation hardware upgrades, and residential educational workshops. The first MOU was adopted by Council in 2002 (CMR 359:02). Over time, the water efficiency programs provided through the partnership City of Palo Alto Page 3 have evolved or expanded concurrent with advancements in water-saving technologies and best practices for water efficient program delivery. Discussion Under the proposed Agreement, most rebates will continue to be funded by Valley Water, with the City matching payments to customers for some programs. Palo Alto residents and businesses will be eligible to receive higher incentives than those from other water retailers in Santa Clara County for retrofits such as high-water use landscape conversion and custom facility process improvements for water efficiency. Mobile home parks and condominium complexes in Palo Alto will receive increased incentives for adding residential submeters. Rebates for laundry-to-landscape gray water systems will provide a financial incentive to residents to reduce potable water landscape irrigation. The Landscape Replacement Program provides rebates for residential and commercial customers to replace high water use landscapes with low water use landscape, and the rebate will be greater in Palo Alto due to the City’s contribution. Likewise, cost sharing will be implemented for rain barrels, cisterns, graywater systems, and rain gardens, all of which reduce reliance on potable water while keeping pollution out of the stormwater system and, thus, the San Francisco Bay. Tables A-1, A-2 and A-3 summarize the proposed Agreement costs and reflect funding for the cost-sharing rebate amounts for the programs. Table A-1 Water Conservation Program Rebate Matching Amounts from Palo Alto Program CITY's Reimbursement Rates Landscape Conversion Rebate (in addition to VALLEY WATER rebate $2.00 per square foot, up to $2,000 per residential site and $20,000 per commercial site Large Landscape Lawn to Mulch Rebate (in addition to VALLEY WATER rebate) $1.00 per square foot, up to $1,000 per residential site and $10,000 per commercial site Graywater Conversion Rebate (in addition to VALLEY WATER rebate) $200 per site Submeter Rebate $150 per submeter City of Palo Alto Page 4 Table A-2 Stormwater Program Rebate Matching Amounts from Palo Alto Program CITY's Reimbursement Rates Rain Barrel Rebate (in addition to VALLEY WATER rebate) Rebate cap: $1,000 per residential site; $5,000 per commercial site. Rebates may be applied to any combination of rebate types and amounts listed in Tables A-2 or A-3. Cost of the rain barrel minus VALLEY WATER’s rebate amount, up to a maximum of $35. Cistern (in addition to VALLEY WATER rebate) $0.50 per gallon Rain Garden (in addition to VALLEY WATER rebate) $1 per square foot, up to $300 per site Table A-3 Payments from Valley Water to Palo Alto for Rain Barrels Distributed by Palo Alto Program VALLEY WATER's Reimbursement Rates Rain Barrel Distribution Event Rebate (in addition to CITY rebate) Rebate cap: $1,000 residential site; $5,000 commercial site. Rebates may be applied to any combination of rebate types and amounts listed in Tables A-2 or A-3. $35.00 per rain barrel Valley Water provides access to their online application portal to City of Palo Alto residents and businesses for all the programs listed above. Valley Water administers rebates for the programs listed in Table A-1 and A-2 on behalf of both agencies and then invoices the City. The City will administer rebates for the discounts on any rain barrels, cisterns or rain gardens (listed in Table A-3), and then invoice Valley Water. These discounts are offered at Rain Barrel Distribution Events which may occur yearly or biannually. CPAU staff also administers several water conservation programs in-house. CPAU’s Home Water Reports provide information to residents including water use and tips and programs to improve water efficiency. Through the proposed Agreement, Valley Water will reimburse CPAU for up to 50% of the cost of the program up to a maximum of $625,000. To ensure continued and aggressive water conservation efforts, staff recommends Council approve the proposed Agreement with a maximum City funding obligation total of $225,000 per year and $675,000 over the three-year term. The additional funding will ensure continued momentum of the eight water efficiency programs administered by Valley Water and City though June 30, 2025. Staff further recommends that Council authorize the City Manager or designee to adjust the City’s funding levels for the programs listed in Appendix A, so long as City of Palo Alto Page 5 the City’s total contribution does not exceed $600,000 for water conservation programs and $75,000 for stormwater programs over the three-year contract. Table 2 shows funding amounts for the three years of the proposed Agreement by department budget. Table 2: Proposed Agreement Funding Department FY2023 FY2024 FY2025 Total Utilities (Water Fund) $200,000 $200,000 $200,000 600,000 Public Works (Stormwater Management Fund) $25,000 $25,000 $25,000 $75,000 Total $225,000 $225,000 $225,000 $675,000 Resource Impact The funds to support year one of this proposed Agreement are available within the Utilities and Public Works Departments in the Water and Stormwater Management Funds respectively, subject to the approval of the FY 2023 Proposed Operating budget. Funding for FY 2024 and beyond is subject to City Council approval of the annual appropriation of funds through the annual budget process. Valley Water will pay the City 50% of the Home Water Use Reports program cost, up to $625,000. Implementation of the proposed conservation programs will slightly reduce the City’s water consumption, and thus reduce water revenues to the Utility but will reduce water supply costs by a greater amount, reducing overall costs to the community. These water efficiency programs are expected to be cost-effective, meaning the cost of implementation will be lower than the water supply cost. Policy Implications The proposed Agreement continues funding for water efficiency programs consistent with the 2020 Urban Water Management Plan (Staff Report #12025), the Utilities Strategic Plan, and the City’s Sustainability and Climate Action Plan Goals and Key Draft Sustainability and Climate Action Plan Goals and Key Actions. Stormwater-related programs support implementation of the Green Stormwater Infrastructure (GSI) Plan accepted by Council in May 2019 (Staff Report #9883). In December 2018, the SWRCB adopted amendments to the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary (Bay Delta Plan Amendment) to establish water quality objectives to maintain the health of the Bay Delta ecosystem. Palo Alto City of Palo Alto Page 6 Council expressed support for the Bay Delta Plan Amendment in its August 20, 2018 vote1. Water conservation programs are an important means for Palo Alto to reduce its dependence on the Tuolumne River. Community Engagement Community engagement occurred through the process of adopting the policies above. Palo Alto and Valley Water both actively market these programs though their websites, at community events, via bill inserts, other social media and newsletters. Environmental Review Approval of the proposed Agreement does not meet the definition of a project pursuant to Section 21065 of the California Public Resources Code, thus no environmental review under the California Environmental Quality Act (CEQA) is required and is categorically exempt from CEQA under Public Resources Code Sections 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Actions by Regulatory Agencies for Protection of the Environment). Valley Water is the lead agency with respect to programs covered by the Agreement. Attachments: • Attachment A: AGREEMENT FOR WATER CONSERVATION AND STORMWATER REBATE PROGRAMS 1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/00-archive/2018/08-20-2018-final-ccm-minutes.pdf 6056640 1 AGREEMENT BETWEEN SANTA CLARA VALLEY WATER DISTRICT AND THE CITY OF PALO ALTO FOR WATER CONSERVATION AND STORMWATER REBATE PROGRAMS This agreement (AGREEMENT) is between Santa Clara Valley Water District (VALLEY WATER), an independent special district created by the California Legislature, and the City of Palo Alto (CITY). This AGREEMENT sets forth the respective roles of VALLEY WATER and the CITY related to VALLEY WATER’S residential and commercial conservation programs (VALLEY WATER PROGRAMS) and the CITY’s residential and commercial conservation and stormwater rebate programs, each identified in Appendix A (PROGRAMS AND REIMBURSEMENT RATES). CITY and VALLEY WATER may be referred to individually as "PARTY" or collectively as the "PARTIES" or the "PARTIES TO THIS AGREEMENT." RECITALS WHEREAS, the VALLEY WATER PROGRAMS provide water conservation services and rebates, including but not limited to Rain Barrel, Cistern, and Rain Garden, for properties located within the service area of the CITY (SERVICE AREA); and WHEREAS, CITY provides home water use reports within the SERVICE AREA to educate customers about water conservation, drought, and water demand (HOME WATER USE REPORTS PROGRAM); and WHEREAS, CITY administers a RAIN BARREL DISTRIBUTION EVENT, during which CITY residents and businesses will have opportunity to purchase rain barrels at a discount funded by rebates from both CITY and VALLEY WATER without submitting a rebate application; and WHEREAS, the VALLEY WATER PROGRAMS and the HOME WATER USE REPORTS PROGRAM are consistent with both Parties’ Urban Water Management Planning Act requirements; and WHEREAS, VALLEY WATER and CITY wish to collaborate to implement VALLEY WATER PROGRAMS, the HOME WATER USE REPORTS PROGRAM, and the CITY REBATE PROGRAM in the SERVICE AREA as described in this AGREEMENT. NOW, THEREFORE, in consideration of the recitals and mutual obligations of the Parties expressed in this AGREEMENT, VALLEY WATER and CITY agree: 6056640 2 AGREEMENT 1. TERM The term of the AGREEMENT is retroactive from July 1, 2022 to June 30, 2025 (TERM), or until funds are depleted, whichever occurs first. The TERM may be extended by mutual written consent of the Parties. This AGREEMENT shall be contingent upon approval of program funding each fiscal year by the CITY’s Council and VALLEY WATER’s Board of Directors. In the event such financial contingency is not met, the implementation and enforcement of this AGREEMENT will be suspended on the first day of the fiscal year for which funding is not approved and reinstated the month following approval of the financial contingency by both agencies. 2. NOT TO EXCEED COMPENSATION 2.1. The compensation to be paid to VALLEY WATER by CITY for programs as described APPENDIX A, Table A-1, shall not exceed $200,000 per year or $600,000 over the TERM. 2.2. The compensation to be paid to VALLEY WATER by CITY for programs as described APPENDIX A, Table A-2, shall not exceed $25,000 per year or $75,000 over the TERM. 2.3. The compensation to be paid to the CITY by VALLEY WATER for the RAIN BARREL DISTRIBUTION EVENT program as described in APPENDIX A, Table A-3 shall not exceed $5,000 per year or $15,000 over the TERM. 2.4. The compensation to be paid to CITY by VALLEY WATER for the HOME WATER USE REPORTS PROGRAM shall not exceed $625,000 over the TERM. 2.5. Either Party may adjust its contribution to any of the rebate amounts for any of the programs described in APPENDIX A, so long as that Party’s total contribution for any individual program does not exceed the amounts described in Sections 2.1- 2.4, respectively. 3. RESPONSIBILITIES OF VALLEY WATER 3.1. VALLEY WATER PROGRAMS 3.1.1. Administer VALLEY WATER PROGRAMS as listed in Appendix A, Tables A-1 and A-2. 3.1.2. Invoice the CITY, approximately every six months in accordance with the CITY’s REIMBURSEMENT RATES listed in Appendix A. 3.1.2.1. Invoices shall include an attachment with VALLEY WATER PROGRAM customer information for those SERVICE AREA customers who received services during the dates of the invoice. 3.1.2.2. Customer information shall include the rebate number, invoice date, date of notice to proceed, rebate type, customer name, customer site type, customer address, area of converted landscape in square feet (if applicable), rainwater capture details (if applicable), including rain garden (roof square footage), rain barrel quantity, and cistern total gallonage, total rebate amount in dollars, total rebate amount owed by VALLEY WATER and the CITY in dollars. 6056640 3 3.1.2.3. In accordance with Gov. Code 6254.16, VALLEY WATER shall ensure that customer names, home addresses and utility usage data will only be made available to CITY for those customer account holders from whom VALLEY WATER has obtained written authorization for the release of information. 3.1.3. At least once per year, collect and analyze data to determine water savings for Santa Clara County and provide the results to the CITY along with CITY’s customer participation data. 3.1.4. Administer funds received from the CITY for VALLEY WATER PROGRAMS. 3.1.5. Work cooperatively with the CITY to advertise VALLEY WATER PROGRAMS to targeted customers. 3.2. RAIN BARREL DISTRIBUTION EVENT 3.2.1. Pay rebates to eligible customers in accordance with APPENDIX A, Table A-3 for distributed rain barrels. 3.2.2. Pay the CITY within thirty (30) days of receipt of an invoice from the CITY. 3.2.2.1. Parties may mutually agree to extend the deadline for payment sixty (60) days from receipt of an invoice. 3.3. HOME WATER USE REPORTS PROGRAM 3.3.1. Pay fifty percent (50%) of the cost of the CITY’s HOME WATER USE REPORTS PROGRAM up to the maximum in Section 2.4. 3.3.2. Pay the CITY within thirty (30) days of receipt of an invoice from the CITY. 3.3.2.1. Parties may mutually agree in writing to extend the deadline for payment sixty (60) days from receipt of an invoice. 4. RESPONSIBILITIES OF THE CITY 4.1. VALLEY WATER PROGRAMS 4.1.1. Identify and notify all qualified properties within the SERVICE AREA regarding the opportunity to participate in VALLEY WATER PROGRAMS. 4.1.2. Work cooperatively with VALLEY WATER to advertise VALLEY WATER PROGRAMS to targeted customers as described at https://www.valleywater.org/watersavingsorg 4.1.3. Provide water use and other relevant customer data for customers in the SERVICE AREA to VALLEY WATER to determine water savings and the cost effectiveness of VALLEY WATER PROGRAMS, subject to the disclosure requirement in 4.1.3.1. 4.1.3.1. In accordance with Gov. Code 6254.16, customer name, home address and water usage records will only be made available to VALLEY WATER for those customer account holders from whom VALLEY WATER has obtained written authorization for the release of such information from the CITY. 4.1.4. Pay VALLEY WATER within thirty (30) days of receipt of invoice(s) from VALLEY WATER. 6056640 4 4.1.4.1. Parties may mutually agree in writing to extend the deadline for payment sixty (60) days from receipt of an invoice. 4.1.5. Pay VALLEY WATER the one-time retail agency licensing fee of $1,000 for access to Droplet Landscape Rebate Program application portal. 4.2. RAIN BARREL DISTRIBUTION EVENT 4.2.1. Administer the RAIN BARREL DISTRIBUTION EVENT once annually or every other year. 4.2.1.1. At the RAIN BARREL DISTRIBUTION EVENT, CITY residents and businesses will have opportunity to purchase rain barrels at a discount funded by rebates from both CITY and VALLEY WATER without submitting a rebate application. 4.2.1.2. RAIN BARREL DISTRIBUTION EVENT rebates do not count toward the maximum rebate caps per site described in Table A-2. 4.2.1.3. RAIN BARREL DISTRIBUTION EVENT will meet all of VALLEY WATER’s rain barrel rebate requirements as specified under the Landscape Rebate Program. 4.2.2. Notify VALLLY WATER a minimum of 60 days before each RAIN BARREL DISTRIBUTION EVENT. 4.2.3. Invoice Valley Water a minimum of 30 days after each RAIN BARREL DISTRIBUTION EVENT in accordance with the amounts listed in Appendix A, Table A-3. 4.2.3.1. Include an attachment to the invoice with the following information: participating customer information, including customer name, site address, rain barrel purchase date, rain barrel quantity and size, total rebate amount in dollars, and total rebate amount owed by VALLEY WATER and the CITY in dollars. 4.2.3.2. Confirm VALLEY WATER has provided written authorization for all customer account holders whose data will be shared under this Agreement. 4.3. HOME WATER USE REPORTS PROGRAM 4.3.1. Administer the HOME WATER USE REPORTS PROGRAM, which shall include coordination with the WaterSmart software vendor (C19174648) or another vendor mutually agreed to by the Parties (VENDOR). 4.3.2. Invoice Valley Water twice per year at the rate defined in Section 3.3.1 based upon actual CITY-paid invoices for the HOME WATER USE REPORTS PROGRAM. 4.3.2.1. Include as an attachment to the invoices the HOME WATER USE REPORTS PROGRAM mailing history for the dates of the invoices. 4.3.3. Identify and notify qualifying properties within the SERVICE AREA about the HOME WATER USE REPORTS PROGRAM. 4.3.4. Collaborate with VALLEY WATER regarding developing and delivering targeted marketing through the HOME WATER USE REPORTS PROGRAM as appropriate and to the extent available through the VENDOR. 6056640 5 4.3.5. Collect and analyze HOME WATER USE REPORT PROGRAM data to determine water savings. 4.3.6. At least once per year, provide VALLEY WATER with cumulative water usage records and other data necessary to determine savings and cost effectiveness of the HOME WATER USE REPORTS PROGRAM. 5. HOLD HARMLESS AND LIABILITY 5.1. in lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the PARTIES agree that all losses or liabilities incurred by a PARTY shall not be shared pro rata but, instead, VALLEY WATER and CITY agree that, pursuant to Government Code Section 895.4, each PARTY hereto shall fully indemnify and hold the other PARTY, their officers, Board members, Council members, employees, and agents, harmless from any claim, expense or cost, damage or liability, including that imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying PARTY, its officers, Board members, Council members, employees or agents, under or in connection with or arising out of any work, authority or jurisdiction delegated to such PARTY under this AGREEMENT. No PARTY, nor any officer, Board member, Council member, employee or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other PARTY hereto, their officers, Board members, Council members, employees, or agents, under or in connection with or arising out of any work authority or jurisdiction delegated to such other PARTY under this AGREEMENT. 5.2. The rights, duties, and obligations of the Parties as set forth above in this Hold Harmless and Liability section will survive termination, suspension, completion, and expiration of this AGREEMENT. 6. PROJECT MANAGEMENT VALLEY WATER’s project manager is Justin Burks, Senior Water Conservation Specialist, Water Supply Planning & Conservation Unit, Telephone: (408)630-2684, e-mail: JBurks@ValleyWater.org. CITY’s project manager is Kevin Carley, Utilities Department, Resource Management Division, Telephone: 650-617-3181, email: kevin.carley@CityofPaloAlto.org. The project managers will be the points of contact with respect to program management and invoicing. By written notice to the other Party as described in Section 9, Valley Water and the CITY may designate an alternate project manager from time to time. 7. INSURANCE Each Party shall adhere to the insurance requirements that are specified in Appendix B of this AGREEMENT. 6056640 6 8. DOCUMENT REVIEW VALLEY WATER and the CITY will, upon reasonable advance written notice, make available for inspection to the other Party records, books and other documents relating to VALLEY WATER PROGRAMS, the HOME WATER USE REPORTS PROGRAM, and the RAIN BARREL DISTRIBUTION EVENT. 9. NOTICES All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: If to VALLEY WATER: Santa Clara Valley Water District 5750 Almaden Expressway San José, CA 95118 Attn: Justin Burks If 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. Either party may change such mailing or email address by notice given to the other Party as provided in this Section 9. 10. ENTIRE AGREEMENT This Agreement, together with all exhibits referenced and attached hereto, is the entire agreement between the parties respecting the matters set forth within, and supersedes all prior negotiations or agreements between the parties, if any. 11. AMENDMENTS The AGREEMENT may only be amended by written agreement executed by both Parties. 12. ASSIGNMENT Neither Party is allowed to assign, sublet, or transfer this AGREEMENT or any of the rights or interests in this AGREEMENT without the written consent of the other Party. 13. SEVERABILITY The partial or total invalidity of one or more parts of this AGREEMENT will not affect the intent or validity or remaining parts of this AGREEMENT. 14. GOVERNING LAW This AGREEMENT is a contract under the laws of the State of California and for all purposes must be interpreted in accordance with such laws. The federal and state 6056640 7 courts within Santa Clara County, California shall have exclusive jurisdiction to adjudicate any dispute arising out of or related to this Agreement. Each Party expressly consents to the personal jurisdiction of and venue in such courts, and service of process effected upon it by registered mail sent to the address set forth herein for each Party. 15. TERMINATION OF AGREEMENT This AGREEMENT may be terminated by either Party hereto for any reason upon thirty (30) days written notice to the other Party. 16. SIGNATURES 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. Unless otherwise prohibited by law or CITY policy, the parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a writing as set forth in Evidence Code Section 1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the Parties. 17. CALIFORNIA ENVIRONMENTAL QUALITY ACT. The Parties’ approval of this Agreement is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Sections 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Actions by Regulatory Agencies for Protection of the Environment). VALLEY WATER is the lead agency with respect to any individual programs covered by this Agreement. 18. COUNTERPARTS This AGREEMENT may be executed in counterparts, each of which shall be deemed an original, and all of which taken together shall be the entire AGREEMENT. 19. COMPLIANCE WITH LAWS Each Party shall at all times in the performance of its obligations under this Agreement comply with all applicable laws as each currently exists and as may hereafter be amended. 20. WAIVER A Party’s waiver of any term, condition, covenant, or breach of any term, condition or covenant shall not be construed as a waiver of any other term, condition, or covenant or breach of any other term, condition, or covenant . 6056640 8 In WITNESS WHEREOF, the Parties have executed this AGREEMENT as of the effective date above. CITY OF PALO ALTO a municipal corporation APPROVED AS TO FORM: Amy Bartell Ed Shikada Assistant City Attorney City Manager SANTA CLARA VALLEY WATER DISTRICT, a Special District created by the Legislature of the State of California APPROVED AS TO FORM: _________________________ Rick L. Callender, Esq. Chief Executive Officer 6056640 9 APPENDIX A PROGRAMS AND REIMBURSEMENT RATES The programs administered by VALLEY WATER AND CITY and CITY’S and VALLEY WATER’s reimbursement rates are specified below. PARTIES will be reimbursed for the programs listed below, up to a Not-To-Exceed Amount Specified in the AGREEMENT. Table A-1 Water Conservation Program Rebate Matching Amounts from CITY Program CITY's Reimbursement Rates Landscape Conversion Rebate (in addition to VALLEY WATER rebate) $2.00 per square foot, up to $2,000 per residential site and $20,000 per commercial, industrial, institutional, and multi- family site (5+ units) Large Landscape Lawn to Mulch Rebate (in addition to VALLEY WATER rebate) $1.00 per square foot, up $10,000 per commercial, industrial, institutional, and multi-family sites (5+ units) Graywater Conversion Rebate (in addition to VALLEY WATER rebate) $200 per site Submeter Rebate (in addition to VALLEY WATER rebate) $150 per submeter 6056640 10 Table A-2 Stormwater Program Rebate Matching Amounts from CITY Program CITY's Reimbursement Rates Rain Barrel Rebate (in addition to VALLEY WATER rebate) Rebate cap: $1,000 per residential site; $5,000 per commercial site. Rebates may be applied to any combination of rebate types and amounts listed in Tables A-2 or A-3. Cost of the rain barrel minus VALLEY WATER’s rebate amount, up to a maximum of $35. Cistern (in addition to VALLEY WATER rebate) $0.50 per gallon Rain Garden (in addition to VALLEY WATER rebate) $1 per square foot, up to $300 per site Table A-3 Payments from VALLEY WATER for Rain Barrels Distributed by CITY Program VALLEY WATER's Reimbursement Rates Rain Barrel DISTRIBUTION EVENT Rebate (in addition to CITY rebate) Rebate caps do not apply $35.00 per rain barrel. 6056640 11 APPENDIX B INSURANCE Each Party represents and warrants that, at its sole cost and expense it will maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property that may arise from, or in connection with its (and its agents, representatives’, employees’ or contractors’) performance of the services and/or operations herein and the indemnity provisions of this AGREEMENT. A. Types of Coverage and Minimum Limits 1. Commercial General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage; and 3. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the California Labor Code and Employers Liability limits of $1,000,000 per accident; and 4. Professional Liability Errors & Omissions $1,000,000 per claim/ aggregate limit. 5. Cyber Liability Insurance $1,000,000 per claim/aggregate limit. B. Authority to Self-Insure The requirements of this Appendix B may be satisfied by the provision of similar coverage through a self-insurance program and such self-insurance shall be certified in writing with an “Affidavit of Insurance” upon request by the other party. C. Contractors Each Party shall obtain separate evidence of insurance for each contractor/consultant hired to perform any services under this Agreement.