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HomeMy WebLinkAboutAgenda Report - September 16, 2015 I-02AGENDA ITEM I Z &Q% CITY OF LODI • COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Agreement for Professional Services with Efficiency Services Group of Hillsboro, Oregon, for Public Benefits Program Administration and Further Authorizing the City Manager to Execute a Two -Year Extension at City's Option ($405,125) MEETING DATE: September 16, 2015 PREPARED BY: Business Development Manager RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute Amendment No. 1 to the Agreement for Professional Services with Efficiency Services Group of Hillsboro, Oregon, for Public Benefits Program Administration in an amount not to exceed $405,125 and further authorizing the City Manager to execute a two-year extension at City's option. BACKGROUND INFORMATION: On November 19, 2014, the City Council approved a one-year contract with Efficiency Services Group (ESG) for the administration of Lodi Electric Utility's (EU) Public Benefits Program for a not -to - exceed amount of $90,000 (Exhibit A). Previously, ESG had successfully developed a new and improved rebate program, which expanded the benefits for Lodi's residential and commercial customers. ESG also implemented a new rebate tracking system to streamline annual compliance reporting. Since November, ESG has administered the residential and nonresidential energy efficiency rebate program, processing applications, receiving telephone calls, conducting site visits and providing energy assessments for many of EU large commercial and industrial accounts. ESG also assists EU staff with administration of the solar rebate program, which has included development and implementation of solar interconnection and rebate program guidelines, solar rebate tracking and reporting, and making both residential and nonresidential site visits to conduct solar performance inspections for rebated solar systems. ESG's contract is set to expire on December 31, 2015. Current Situation EU residential customers have expressed an increased interest in reducing their electric utility bills. Many customers request individual assistance in reviewing their electrical usage and in determining the appropriate conservation methods for their situation. A large number of these inquiries are addressed over the telephone and customers also have the option to self -assess their homes with an online residential audit tool provided on the EU website. The utility does not currently provide an in-home residential audit service for those customers needing a higher level of support. These types of services are available from private contractors for a fee. APPROVED: tp en Sof+ auer, City Manager Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Agreement for Professional Services with Efficiency Services Group of Hillsboro, Oregon, for Public Benefits Program Administration ($405,125) September 16, 2015 Page 2 of 2 A number of customers are able to reduce their electrical bill through a combination of energy conserving behavioral modifications and installation of rebated energy efficient products and other home efficiency improvements. However, rebates only pay a portion of the cost of the energy efficiency investments and this has resulted in a less than desirable participation level of our lower income customers and/or customers that rent. This is an industry -wide challenge. In an effort to meet this challenge, staff recommends approval of an amendment to ESG's agreement for professional services to include: 1) a quarterly newsletter designed to improve the communication of available EU programs and recommended best practices for energy conservation, and 2) a new in-home residential audit service coupled with a direct install program that would identify immediate opportunities for energy conservation. Providing customers with a no -cost residential energy audit and direct install program would make specific energy efficiency improvements available to all EU customers at no charge. The program would create an additional opportunity to provide value to customers by presenting them with detailed information about their electrical usage and recommendations for energy savings. In addition, the program would provide several direct install measures to be offered to residential customers instantaneously, including low -wattage screw-in LED light bulbs; energy-saving smart power strips; high- performance showerheads; faucet aerators; and thermostatic shower valves. The aforementioned water saving measures will reduce electrical usage where electric water heaters are in use in addition to reducing water consumption. As such, the Public Works Department will also benefit by assisting customers in water -conservation efforts. The energy audit and energy -efficiency installation measures will be paid with public benefits funds and water -efficiency measures will be paid with water conservation funds. Measure Cost Unit Per-unit fee Home Snapshot Audit Screw -In LEDs Audit $40.00 Lamp $18.00 Standard Showerhead Showerhead $20.00 Handheld Showerhead Showerhead $30.00 Thermostatic Shower Valve Faucet Aerator Valve $40.00 Aerator $ 5.00 Advanced Smart Power Strips Power Strip $90.00 ESG has had a great deal of success providing this program for several utilities in California and the Pacific Northwest. Staff recommends these additional services be incorporated into ESG's scope of services through the proposed amendment to ESG's existing professional services agreement, as well as an extension of the agreement through June 30, 2017. FISCAL IMPACT: Contract services through June 30, 2017 shall not exceed $405,125. FUNDING AVAILABLE: Absorbed within existing appropriations of public benefits and water funds. Jordan Ayers Deputy City Manager/Internal Lices Director Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Agreement for Professional Services with Efficiency Services Group of Hillsboro, Oregon, for Public Benefits Program Administration ($405,125) September 16, 2015 Page 2 of 2 EliiaMh A. Ki ey Electric Utility Director PREPARED BY: Adam Brucker, Business Development Manager EAK/FWS/AB F. Wally E#haelin Public Works Director CONTRACT AMENDMENT AGREEMENT EFFICIENCY SERVICES GROUP THIS CONTRACT AMENDMENT made and effective this day of September, 2015, by and between the CITY OF LODI, a municipal corporation, hereinafter called "CITY", and EFFICIENCY SERVICES GROUP, hereinafter called "Contractor." WITNESSETH: CONTRACT: Contractor and City entered into an Agreement for Professional Services on December 5, 2014 ("Agreement"). Contractor and City now desire to amend the Scope of Services, the total compensation, and the term of the Agreement. 2, TERM AND TERMS: The term of the Amended Contract shall be for the period commencing on September 17, 2015 and terminating June 30, 2017. At City's option, the term of the Agreement may be extended for two (2) additional years, provided City gives Contractor no less than 30 -days written notice of its intent prior to the expiration of the existing term. The scope of service and compensation payable to Contractor are amended as set forth in Exhibit B, attached hereto and incorporated herein by this reference. All other terms and conditions, with the exception of the Insurance Requirements, will remain as set forth in the Agreement, attached hereto as Exhibit A and made a part hereof as though fully set forth herein. 3. Contractor shall take out and maintain over the term of this Amended Contract, insurance coverage as set forth in Exhibit C, attached hereto and incorporated herein by this reference. CITY OF LODI, a municipal corporation EFFICIENCY SERVICES GROUP STEPHEN SCHWABAUER City Manager Attest: JENNIFER M. FERRAIOLO City Clerk Approved as to Form: JANICE D. MAGDICH City Attorney ` MARK GOSVENER Chief Operating Officer AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties s THIS AGREEMENT is entered into on �2 2014, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and Efficiency Services Group (hereinafter "CONTRACTOR"). Section 1.2 Purpose CITY selected the CONTRACTOR to provide the services required in accordance with attached Scope of Services, Exhibit A, attached and incorporated by this reference. CITY wishes to enter into an agreement with CONTRACTOR for Public Benefit Program Administration (hereinafter "Project") as set forth in the Scope of Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide such services to CITY. ARTICLE 2 SCOPE OF SERVICES Section 2.1 Scope of Services CONTRACTOR, for the benefit and at the direction of CITY, shall perform the Scope of Services as set forth in Exhibit A. Section 2.2 Time For Commencement and Completion of Work CONTRACTOR shall commence work pursuant to this Agreement, upon receipt of a written notice to proceed from CITY or on the date set forth in Section 2.6, whichever occurs first, and shall perform all services diligently and complete work under this Agreement based on a mutually agreed upon timeline or as otherwise designated in the Scope of Services. CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other work products as may be designated in the Scope of Services. CONTRACTOR shall not be responsible for delays caused by the failure of CITY staff to provide required data or review documents within the appropriate time frames. The review time by CITY and any other agencies involved in the project shall not be counted against CONTRACTOR's contract performance period. Also, any delays due to weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall 1 remain in contact with reviewing agencies and make all efforts to review and return all comments. Section 2.3 Meetings CONTRACTOR shall attend meetings as may be set forth in the Scope of Services. Section 2.4 Staffing CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's capabilities and on the qualifications of CONTRACTOR's principals and staff as identified in its proposal to CITY. The Scope of Services shall be performed by CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified by CONTRACTOR of any change of Project Manager and CITY is granted the right of approval of all original, additional and replacement personnel at CITY's sole discretion and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff prior to any change. CONTRACTOR represents it is prepared to and can perform all services within the Scope of Services (Exhibit A) and is prepared to and can perform all services specified therein. CONTRACTOR represents that it has, or will have at the time this Agreement is executed, all licenses, permits, qualifications, insurance and approvals of whatsoever nature are legally required for CONTRACTOR to practice its profession, and that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of this Agreement all such licenses, permits, qualifications, insurance and approvals, and shall indemnify, defend and hold harmless CITY against any costs associated with such licenses, permits, qualifications, insurance and approvals which may be imposed against CITY under this Agreement. Section 2.5 Subcontracts Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement. Section 2.6 Term The term of this Agreement commences on January 1, 2015 and terminates upon the completion of the Scope of Services or on December 31, 2015, whichever occurs first. 2 Section 2.7 Option to Extend Term of Agreement The City may exercise an option to extend this Agreement one (1) additional year, provided, City gives Contractor no less than 30 -days written notice of its intent prior to the expiration of the existing term. In the event City exercises any option under this paragraph, all other terms and conditions of this Agreement continue and remain in full force and effect. ARTICLE 3 COMPENSATION Section 3.1 Compensation CONTRACTOR's compensation for all work under this Agreement shall conform to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by this reference. CONTRACTOR shall not undertake any work beyond the scope of this Agreement unless such additional work is approved in advance and in writing by CITY. Section 3.2 Method of Payment CONTRACTOR shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing, without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONTRACTOR's compensation for all work under this Agreement shall not exceed the amount of the Fee Proposal. Section 3.3 Costs The Fee Proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved in advanced and in writing, by CITY. Section 3.4 Auditing CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance needed to conduct such an audit. CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of this Agreement. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable 3 notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under this Agreement. ARTICLE 4 MISCELLANEOUS PROVISIONS Section- 4:1- Rondiscri`mination In performing services under this Agreement, CONTRACTOR shall not discriminate in the employment of its employees or in the engagement of any sub CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, age, or any other criteria prohibited by law. Section 4.2 ADA Compliance In performing services under this Agreement, CONTRACTOR shall comply with the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well as all applicable regulations and guidelines issued pursuant to the ADA. Section 4.3 Indemnification and Responsibility for Damage CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold harmless CITY, its elected and appointed officials, directors, officers, employees and volunteers from and against any claims, damages, losses, and expenses (including reasonable attorney's fees and costs), arising out of performance of the services to be performed under this Agreement, provided that any such claim, damage, loss, or expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any subcontractor employed directly by CONTRACTOR, anyone directly or indirectly employed by any of them, or anyone for whose acts they may be liable, except those injuries or damages arising out of the active negligence, sole negligence, or sole willful misconduct of the City of Lodi, its elected and appointed officials, directors, officers, employees and volunteers. CITY may, at its election, conduct the defense or participate in the defense of any claim related in any way to this indemnification. If CITY chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification, CONTRACTOR shall pay all of the costs related thereto, including without limitation reasonable attorney fees and costs. The defense and indemnification obligations 4 required by this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations set forth herein. Section 4.4 No Personal Liability Neither the City Council, nor any other officer or authorized assistant or agent or - City employee shall be personally responsible for any liability arising under this Agreement. Section 4.5 Responsibility of CITY CITY shall not be held responsible for the care or protection of any material or parts of the work described in the Scope of Services prior to final acceptance by CITY, except as expressly provided herein. Section 4.6 Insurance Requirements for CONTRACTOR CONTRACTOR shall take out and maintain during the life of this Agreement, insurance coverage as set forth in Exhibit C attached hereto and incorporated by this reference. Section 4.7 Successors and Assigns CITY and CONTRACTOR each bind themselves, their partners, successors, assigns, and legal representatives to this Agreement without the written consent of the others. CONTRACTOR shall not assign or transfer any interest in this Agreement without the prior written consent of CITY. Consent to any such transfer shall be at the sole discretion of CITY. Section 4.8 Notices Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: To CITY: City of Lodi 221 West Pine Street P.O. Box 3006 Lodi, CA 95241-1910 Attn: Adam Brucker, Business Development Manager To CONTRACTOR: Mark Gosvener Efficiency Services Group 5605 NE Elam Young Parkway Hillsboro, OR 97124 5 Section 4.9 Cooperation of CITY CITY shall cooperate fully and in a timely manner in providing relevant information it has at its disposal relevant to the Scope of Services. Section 4.10 CONTRACTOR is Not an Employee of CITY CONTRACTOR agrees that in undertaking the duties to be performed under this Agreement, it shall act as an independent contractor for and on behalf of CITY and not an employee of CITY. CITY shall not direct the work and means for accomplishment of the services and work to be performed hereunder. CITY, however, retains the right to require that work performed by CONTRACTOR meet specific standards without regard to the manner and means of accomplishment thereof. Section 4.11 Termination CITY may terminate this Agreement, with or without cause, by giving CONTRACTOR at least ten (10) days written notice. Where phases are anticipated within the Scope of Services, at which an intermediate decision is required concerning whether to proceed further, CITY may terminate at the conclusion of any such phase. Upon termination, CONTRACTOR shall be entitled to payment as set forth in the attached Exhibit B to the extent that the work has been performed. Upon termination, CONTRACTOR shall immediately suspend all work on the Project and deliver any documents or work in progress to CITY. However, CITY shall assume no liability for costs, expenses or lost profits resulting from services not completed or for contracts entered into by CONTRACTOR with third parties in reliance upon this Agreement. Section 4.12 Confidentiality CONTRACTOR agrees to maintain confidentiality of all work and work products produced under this Agreement, except to the extent otherwise required by law or permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or "Proprietary", except to the extent otherwise required by law or permitted in writing by CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California Public Records Act. Section 4.13 Applicable Law, Jurisdiction, Severability, and Attorney's Fees This Agreement shall be governed by the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin County Superior Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict 6 with said laws, but the remainder of this Agreement shall be in force and effect. In the event any dispute between the parties arises under or regarding this Agreement, the prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's fees from the party who does not prevail as determined by the San Joaquin County Superior Court. Section 4.14 City Business License Requirement CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020 requires CONTRACTOR to have a city business license and CONTRACTOR agrees to secure such license and pay the appropriate fees prior to performing any work hereunder. Section 4.15 Captions The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question or interpretation or intent hereunder. Section 4.16 Integration and Modification This Agreement represents the entire understanding of CITY and CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties. Section 4.17 Contract Terms Prevail All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached exhibits, the terms of this Agreement shall prevail. Section 4.18 Severability The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Section 4.19 Ownership of Documents All documents, photographs, reports, analyses, audits, computer media, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such documents during CONTRACTOR's regular business hours. Upon termination or 7 completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days. CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any liability resulting from CITY's use of such documents for any purpose other than the purpose for which they were intended. Section 4.20 Authority The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. Section 4.21 Federal Transit Funding Conditions ❑ If the box at left is checked, the Federal Transit Funding conditions attached as Exhibit D apply to this Agreement. In the event of a conflict between the terms of this Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the Federal Transit Funding Conditions will control. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Agreement as of the date first above written. ATTEST: WROBISON City Clerk APPROVED AS TO FORM: JANICE D. MAGDICH, City Attorney r CITY OF LODI, a municipal corporation EFFICIENCY SERVICES GROUP By: Name: MARK GOSV NER Title: CHIEF OPERATING OFFICER Attachments: Exhibit A — Scope of Services Exhibit B — Fee Proposal Exhibit C — Insurance Requirements Exhibit D — Federal Transit Funding Conditions (if applicable) Funding Source: 164604.7323 (Business Unit & Account No.) Doc ID: CA:Rev.07.2014 J EXHIBIT A SCOPE OF WORK Program Administration Office • Maintain program hotline to address customer/contractor inquiries regarding Lodi's EE and Renewable programs; the hotline will be staffed 8:00 am — 5:00 pm, Monday through Friday • Manage residential and commercial EE rebate programs, including review of all customer/contractor rebate applications and project documentation to ensure compliance with LEU program specifications and requirements • Manage residential and commercial Solar PV Program; including review of all customer/contractor rebate applications and project documentation to ensure compliance with LEU and SB1 program specifications and requirements • Enter all customer rebates and project details into database • Provide Lodi with monthly activity reports which include: - Program Summary (current month, YTD, PTD), - Measure Summary (current month), - Customer/Measure Detail (current month) - Customer Rebates (current month) • Maintain all customer/contractor applications and required project documentation for EM&V and other compliance requirements Field • Provide all aspects of field support (audits/inspections) required to assure LEUs EE programs are in compliance with requirements • Conduct on-site performance inspections of all solar PV systems • Provide basic technical guidance and assistance to customers and contractors participating in LED's programs • Maintain all field records and required project documentation • Conduct on-site energy evaluation assistance (if needed) for LEU's larger customers to help determine feasibility/eligibility for participation in LEU's rebate programs Requests for field visits will be scheduled in a way that provides timely response to customer/contractor requests, while maximizing the use of the field technician's time. ESG will plan to make a field technician available to LEU customers every one to two weeks. Field support will be performed by knowledgeable, experienced field technicians. For the services performed under this Agreement, it is assumed that Energy Engineer credentials are not required for field technicians. Energy engineering services can be provided through ESG; however, those services do not fall under the scope of this Agreement. Third Party Contractor Oversight ESG will provide oversight of LEU's third party program contractors, including: • Review of contractor's deliverables/responsibilities • Review of contractor's project documentation/reports submitted to LEU to ensure that work is complete, accurate and compliant with program requirements • Coordinate with contractors and LEU's PB manager to resolve any questions or issues that arise Coordination with LEU ESG's Program Manager will meet monthly with LEU's PB Manager to report on program activity and address any questions or issues, as well as discuss future program developments. Budget and Goal Tracking ESG will track and report PB expenditures to LEU in order to assure that sector budgets are not exceeded, as well as track and report energy savings acquired and progress towards LEU's AB2021 goals. NCPA Representation ESG has been regularly attending NCPA Public Benefit Sub -Committee meetings on behalf of our NCPA client utilities for over ten years. ESG staff, NCPA staff and other NCPA members are well known to each other. ESG will represent Lodi at the monthly NCPA Public Benefit Sub -Committee meetings, as well as respond to inquiries from NCPA regarding Lodi's EE and Renewable programs. Data Management ESG maintains a database that is used to process rebates as well as report EE and Renewable program activity for all of our client utilities. LEU can opt to use ESG's database at no additional charge. ESG's database functions very well in capturing, managing and reporting program activity in order to respond to CEC and utility budgeting/reporting needs. Page 11 Legislative Requirements ESG stays current on existing and proposed legislation regarding PB funding, energy efficiency, and renewable programs in order to assure that our utility clients remain in compliance with requirements. ESG also stays current on the CEC's reporting requirements, as well as any changes to reporting tools. ESG will provide LEU with all data and draft narratives required to meet legislative/CEC reporting requirements for EE and Renewable programs. ESG Office Locations ESG will establish an office in Rocklin, CA to assure we have the ability to respond to customer/contractor needs in a timely manner. Our Rocklin office will maintain experienced field staff and office support staff. Rocklin is located approximately one hour from Lodi. In addition, some services under this Agreement will be performed by staff located in ESG's main office which is located in Milwaukie, OR. ESG Sub -Contractors ESG plans to partner with Optimized Energy and Facilities Consulting, Inc. (OEFC) to deliver the services in this Agreement. OEFC is located at 5734 Lonetree Blvd, Rocklin, CA 95765. OEFC is an energy engineering firm, and currently assists LEU with their annual E3/SB1037 energy efficiency data input and reporting. This service will now be provided under this existing service contract. ESG has a strong working relationship with OEFC, and has partnered with them to provided energy efficiency services to several California POUs for over ten years. ESG plans to lease office space from OEFC at their Rocklin, CA headquarters. OEFC will provide administrative support staff and technical field staff to perform services under this Agreement. In addition, ESG's office space at OEFC will provide a local mailing address for Lodi customers/contractors to submit paperwork. Under this Agreement, OEFC will be a subcontractor to ESG. Implementation Timeline ESG anticipates that we have the capability to immediately assume the responsibilities described in this Agreement. Page 12 EXHIBIT B COMPENSATION Pricing Turnkey Program Administration (Ongoing) - ESG will bill an ongoing fee of $6,500 per month for the services Fisted in this section of Exhibit A. This includes up to three days per month of field support; additional field support will be billed at $60 per hour. Expenses — ESG will bill for reimbursable travel expenses (including mileage at the current Federal rate), not to exceed $500 per month. Energy Engineering Services - In the event that ESG or LEU deems it necessary to use technical specialists (other than ESG staff or OEFC non -engineering staff) for large commercial or industrial customers, the fees will be in addition to the standard fees listed above. ESG will obtain LEU's approval prior to work beginning and the associated fees will be billed separately from the standard fees on ESG's monthly invoice. Billing and Payment Terms ESG will submit monthly invoices to LEU for the (ongoing) turnkey program administration services and reimbursable travel expenses incurred during the invoice period. Fees for specialized technical services will be billed separately and submitted upon completion of the services. ESG's payment terms are Net 30 days. In the event that LEU discovers an invoice discrepancy, we ask to be notified within 5 days of receipt of the invoice. ESG will then correct any discrepancies and submit a revised invoice within 5 days of receiving notification from LEU. EXHIBIT C Insurance Requirements for Consultant The Consultant shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Consultant and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Consultant's operations under this Agreement, whether such operations be by Consultant, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: COMPREHENSIVE GENERAL LIABILITY $1,000,000 Each Occurrence $2,000,000 Aggregate 2. COMPREHENSIVE AUTOMOBILE LIABILITY $1,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version of this form, or an equivalent form providing equivalent liability coverage. 3. PROFESSIONAL LIABILITY / ERRORS AND OMISSIONS $1,000,000 Each Occurrence All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Consultant; whichever is greater. Consultant agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or equivalent form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. (b) Primary and Non -Contributory Insurance Endorsement Additional insurance coverage under the Consultant's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of therp oiect that it is insuring. Page 1 I of 2 pages I Risk: rev.03.2014 Insurance Requirements for Consultant (continued) (c) Limits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Consultant shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. (d) Completed Operations Endorsement For three years after completion of project, a certificate of insurance with a Completed Operations Endorsement, CG 20 37 07 04, will be provided to the City of Lodi. (e) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (f) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. (g) Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Consultant shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Consultant shall provide proof of continuing insurance on at least an annual basis during the Term. If Consultant's insurance lapses or is discontinued for any reason, Consultant shall immediately notify the City and immediately obtain replacement insurance. (h) Failure to Comply If Consultant fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Consultant shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Consultant of such payment of premiums within thirty (30) days of payment stating the amount paid, the names) of the insurer(s), and rate of interest. Consultant shall pay such reimbursement and interest on the first (1s) day of the month following the City's notice. Notwithstanding and other provision of this Agreement, if Consultant fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Consultant shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (i) Qualified Insurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Compensation Insurance The Consultant shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Consultant's employees employed at the site of the project and, if any work is sublet, Consultant shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Consultant. In case any class of employees engaged in hazardous work under this Agreement at the site of the project is not protected under the Worker's Compensation Statute, the Consultant shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance. This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 2 1 of 2 pages I Risk: rev.03.2014 EFFICIENCY SERVICES EXHIBIT B Group Amendment 1 SCOPE OF WORK This amends the existing Agreement for Public Benefits Program Administration signed December 5, 2014 currently provided by Efficiency Services Group (ESG) for the City of Lodi (Lodi). All terms, conditions and scope of work in the original Agreement remain in full effect unless specifically modified in this Amendment. Residential Site Visits Additional Service: Perform residential customer site visits within Lodi service territory as requested to address the specific needs of customers regarding the management of their energy use. This may include customer inquiries regarding unusually high energy use and evaluations for potential participation in Lodi's energy efficiency and renewable programs. This service is being added to the scope of work under the existing Agreement for Public Benefits Program Administration. Existing Contract Term The term for the scope of work for Public Benefits Program Administration is extended through June 30, 2017. Residential Snapshot Auditing and Direct Install This program is proactive and cost-effectively serves a large number of customers in a short period of time. ESG will work with Lodi to determine how this program can best meet the needs of Lodi by providing instant energy and water savings and a positive experience for residential customers. - Scope of Services ESG will provide the following services: • Coordinate with Lodi to sign customers up for the program • Direct installation of selected measures in eligible home • Field collection of customer and site data • Email snapshot audit report (PDF) to Lodi • Deliver marketing, educational, and customer relations collateral to explain benefits and applications of installed measures, promote other utility programs, and strengthen relationships with customers; development of new collateral materials to be at additional cost, with prior approval by Lodi • Supply all product, materials and labor associated with the installation of measures • Warranty fulfillment for all products installed for a period of two years • Report customer, site and measure installation to Lodi in a flexible format (CSV), including summary reports of snapshot audit findings • Complete program administration, including customer hotline, invoicing, reporting, inventory management and compliance EXHIBIT B Lodi will be asked to provide the following: • Coordinate with ESG to sign customers up for the program • Review and approval of marketing and customer relation materials • Provide a utility -endorsed letter on Lodi letterhead explaining the program that ESG's Energy Efficiency Advisors (EEAs) can present to customers when visiting their homes • Provide vehicle magnets with Lodi logo so EEAs are clearly identified with the Lodi DI and Snapshot Audit Program Customer Eligibility The program will be open to all Lodi residential customers. Customers may email or call to sign up for the program, or ESG may approach customers directly. ESG will coordinate with Lodi to finalize a strategy to approach customers and generate sign-ups for the program. Ditrak EEAs utilize Ditrak to electronically capture all snapshot audit and direct install data in the field. Ditrak is an iPad data management system that is linked to a web -based database. The Ditrak system creates a PDF report of each customer served and emails a copy of the report to Lodi and ESG. Ditrak uploads all data to an online database which allows ESG to prepare activity reports, provide Lodi with aggregate and detailed snapshot audit data, invoicing, and inventory management. Direct Install Measures (DIMs) ESG will work with Lodi to finalize the DIMs and quantities to be offered to residential customers through this program. ESG recommends including the following DIMs: • Screw -In LEDs • High Performance Showerheads • Faucet Aerators (1 gpm Bath and 1.5 gpm Kitchen Swivel) • Thermostatic Shower Valves • Advanced Infrared Smart Power Strips ESG will make product recommendations to Lodi based on field installation experience and customer satisfaction feedback. Residential Snapshot Audits While in the customer home installing DIMs, ESG will acquire the following customer demographic and site/equipment data: • Customer name and contact information • Water heater fuel type and size • own/rent • Year built • Approximate square footage • Foundation type • House type • Primary space heat fuel type 2 *1141II11110111 • Primary HVAC system type • Secondary space heat fuel type • Secondary HVAC system type • Central A/C (Yes/No) • Central A/C tons • A/C last serviced • Window type • Attic insulation • Wall insulation • Floor/Crawl insulation • Duct type • Duct insulation • Appliance inventory o Clothes dryer fuel o Clothes washer type o Dishwasher age o Evaporative Cooler o Refrigerator quantity and age o Freezer quantity and age o Range/Oven type o Television quantity and type (HD/analog) o Window A/C units o Well pumps o Pool pumps o Spa o Computers • Customer Comfort (satisfied, not satisfied) • EEA/customer comments Field Manual ESG will coordinate with Lodi to develop a field manual that establishes acceptable DIM installation standards, as well as snapshot audit data collection protocols. Reportable Energy Savings Proposed snapshot audit and DIM savings are from the E3 Tool and Bonneville Power Administration. Avprava� Home Snapshot Audit Screw -In LEDs bnitTypeM VUnit Audit Lamp kWh Per 0 25.5 High Performance Showerhead Showerhead 94.45 Thermostatic Shower Valve Valve 47.6 Faucet Aerator Aerator 40 Advanced Smart Power Strip Power Strip 356 3 *114:1111110111 Quarterly Newsletter ESG will develop content for a quarterly newsletter to be approved by Lodi. The newsletter is to be 8 %2" by 11" and two-sided. Research, copywriting, proof reading, graphic design, client review and revisions are included. Pricing Public Benefits Program Administration Monthly fee for Public Benefits Program Administration is increased to $6,750 (3.7%). Expenses budget is increased from not -to -exceed $500 per month to not -to -exceed $1,000 per month. Total contract not -to -exceed amount is $166,625. Home Snapshot Audit and Direct Install Program The fees for the DI Program are on a per -measure -installed basis. Prices include all labor, materials and expenses associated with installation of the products and delivery of services. Total program budget is $200,000. Fees for direct installed measures and snapshot audits are shown in the following table: Measure Cost Unit Fee per Cost Unit Home Snapshot Audit Audit $40.00 Screw -In LEDs Lamp $18.00 Standard Showerhead Showerhead $20.00 Handheld Showerhead Showerhead $30.00 Thermostatic Shower Valve Valve $40.00 Faucet Aerator Aerator $ 5.00 Advanced Smart Power Strips Power Strip $90.00 Quarterly Newsletter Camera ready price (printing not included) is $1,200 per issue. If hard copies are requested by Lodi, the cost of printing 26,000 8 %" x 11", two-sided, color 4/4 on 1204 cover, unfolded copies is included, the price would be $5,500 per issue. The total newsletter not -to -exceed amount is $38,500. M EXHIBIT C Insurance Requirements for Contractor The Contractor shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Contractor and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Contractor's operations under this Agreement, whether such operations be by Contractor, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: COMPREHENSIVE GENERAL LIABILITY $1,000,000 Each Occurrence $2,000,000 General Aggregate COMPREHENSIVE AUTOMOBILE LIABILITY $1,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version, that provides liability coverage at least as broad as this form. All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Contractor; whichever is greater. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or a later version, that provides liability coverage at least as broad as this form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. An additional named insured endorsement is also required for Auto Liability. (b) Primary and Non -Contributory Insurance Endorsement Additional insurance coverage under the Contractor's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. A primary and non-contributory insurance endorsement is also required for Auto Liability. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of therp oject that it is insuring. (c) Waiver of Subrogation Include a waiver of subrogation against the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. A waiver is required for General Liability and Auto Liability. (d) Limits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Contractor shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. Page 1 1 of 2 pages I Risk: rev.08.2015 Insurance Requirements for Contractor (continued) (e) Completed Operations Endorsement For three years after completion of project, a certificate of insurance with a Completed Operations Endorsement, CG 20 37 07 04, will be provided to the City of Lodi. (f) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (g) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. (h) Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. (i) Failure to Comply If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the name(s) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1S) day of the month following the City's notice. Notwithstanding and other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (j) Qualified Insurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Compensation Insurance The Contractor shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Contractor's employees employed at the site of the project and, if any work is sublet, Contractor shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Contractor. In case any class of employees engaged in hazardous work under this Agreement at the site of the project is not protected under the Worker's Compensation Statute, the Contractor shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance. This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 2 1 of 2 pages Risk: rev.08.2015 RESOLUTION NO. 2015-174 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SERVICES WITH EFFICIENCY SERVICES GROUP, LLC, FOR PUBLIC BENEFITS PROGRAM ADMINISTRATION; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE A TWO-YEAR EXTENSION AT CITY'S OPTION WHEREAS, on December 5, 2014, by Resolution No. 2014-207, the City Council approved a Professional Services Agreement with Efficiency Services Group, LLC, ("Agreement"), for administration of the Public Benefits Program, in an amount not to exceed $90,000, with a one-year renewal option; and WHEREAS, Lodi Electric Utility (EU) residential customers have expressed an increased interest in reducing their electric utility bills; and WHEREAS, in an effort to meet this challenge, staff recommends implementation of: 1) a quarterly newsletter designed to improve the communication of available EU programs and recommended best practices for energy conservation, and 2) a new in-home residential audit service coupled with a direct install program that would identify immediate opportunities for energy conservation; in addition, the Public Works Department will also benefit by assisting customers in water conservation efforts; and WHEREAS, the energy audit and energy efficiency installation measures will be paid with public benefits funds, and water efficiency measures will be paid with water conservations funds; and WHEREAS, staff recommends approval of Amendment No. 1 to the Agreement to add a quarterly newsletter, energy audit, and direct installation services to the scope of work, and extend the term through June 30, 2017, at a cost not to exceed $405,125, with the option to extend the term for two (2) additional years. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 1 to the Agreement for Professional Services with Efficiency Services Group, LLC, of Hillsboro, Oregon, for Public Benefits Program Administration, in an amount not to exceed $405,125 on the terms and conditions set forth in the Amendment No. 1, attached hereto and made a apart hereof by this reference; and BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to execute a two-year extension to the contract, if in the best interest of the City to do so, and on the same terms and conditions set forth in the contract, at a cost not to exceed $430,000. Dated: September 16, 2015 ----------------- I hereby certify that Resolution No. 2015-174 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 16, 2015, by the following vote: AYES: COUNCIL MEMBERS — Kuehne, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Chandler and Mounce ABSTAIN: COUNCIL MEMBERS — None 4it41 �f1F M. FERi�AI O y Clerk 2015-174 CONTRACT AMENDMENT AGREEMENT EFFICIENCY SERVICES GROUP THIS CONTRACT AMENDMENT made and effective this day of September, 2015, by and between the CITY OF LODI, a municipal corporation, hereinafter called "CITY", and EFFICIENCY SERVICES GROUP, hereinafter called "Contractor." WITNESSETH: 1. CONTRACT: Contractor and City entered into an Agreement for Professional Services on December 5, 2014 ("Agreement"). Contractor and City now desire to amend the Scope of Services, the total compensation, and the term of the Agreement. 2. TERM AND TERMS: The term of the Amended Contract shall be for the period commencing on September 17, 2015 and terminating June 30, 2017. At City's option, the term of the Agreement may be extended for two (2) additional years, provided City gives Contractor no less than 30 -days written notice of its intent prior to the expiration of the existing term. The scope of service and compensation payable to Contractor are amended as set forth in Exhibit B, attached hereto and incorporated herein by this reference. All other terms and conditions, with the exception of the Insurance Requirements, will remain as set forth in the Agreement, attached hereto as Exhibit A and made a part hereof as though fully set forth herein. 3. Contractor shall take out and maintain over the term of this Amended Contract, insurance coverage as set forth in Exhibit C, attached hereto and incorporated herein by this reference. CITY OF LODI, a municipal corporation EFFICIENCY SERVICES GROUP STEPHEN SCHWABAUER City Manager Attest: JENNIFER M. FERRAIOLO City Clerk Approved as to Form - JANICE D. MAGDICH City Attorney 's f MARK GOSVENER Chief Operating Officer EXHIBIT A AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on 2014, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and Efficiency Services Group (hereinafter "CONTRACTOR"). Section -9.2- --Purpose - — CITY selected the CONTRACTOR to provide the services required in accordance with attached Scope of Services, Exhibit A, attached and incorporated by this reference. CITY wishes to enter into an agreement with CONTRACTOR for Public Benefit Program Administration (hereinafter "Project") as set forth in the Scope of Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide such services to CITY. ARTICLE 2 SCOPE OF SERVICES Section 2.1 Scope of Services CONTRACTOR, for the benefit and at the direction of CITY, shall perform the Scope of Services as set forth in Exhibit A. Section 2.2 Time For Commencement and Completion of Work CONTRACTOR shall commence work pursuant to this Agreement, upon receipt of a written notice to proceed from CITY or on the date set forth in Section 2.6, whichever occurs first, and shall perform all services diligently and complete work under this Agreement based on a mutually agreed upon timeline or as otherwise designated in the Scope of Services. CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other work products as may be designated in the Scope of Services. CONTRACTOR shall not be responsible for delays caused by the failure of CITY staff to provide required data or review documents within the appropriate time frames. The review time by CITY and any other agencies involved in the project shall not be counted against CONTRACTOR's contract performance period. Also, any delays due to weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall 1 remain in contact with reviewing agencies and make all efforts to review and return all comments. Section 2.3 Meetings CONTRACTOR shall attend meetings as may be set forth in the Scope of Services. Section 2.4 Staffina CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's capabilities and on the qualifications of CONTRACTOR's principals and staff as identified in its proposal to CITY. The Scope of Services shall be performed by CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified by CONTRACTOR of any change of Project Manager and CITY is granted the right of approval of all original, additional and replacement personnel at CITY's sole discretion and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff prior to any change. CONTRACTOR represents it is prepared to and can perform all services within the Scope of Services (Exhibit A) and is prepared to and can perform all services specified therein. CONTRACTOR represents that it has, or will have at the time this Agreement is executed, all licenses, permits, qualifications, insurance and approvals of whatsoever nature are legally required for CONTRACTOR to practice its profession, and that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of this Agreement all such licenses, permits, qualifications, insurance and approvals, and shall indemnify, defend and hold harmless CITY against any costs associated with such licenses, permits, qualifications, insurance and approvals which may be imposed against CITY under this Agreement. Section 2.5 Subcontracts Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement. Section 2.6 Term The term of this Agreement commences on January 1, 2015 and terminates upon the completion of the Scope of Services or on December 31, 2015, whichever occurs first. 2 Section 2.7 ❑ tion to Extend Terra of Agreement The City may exercise an option to extend this Agreement one (1) additional year, provided, City gives Contractor no less than 30 -days written notice of its intent prior to the expiration of the existing term. In the event City exercises any option under this paragraph, all other terms and conditions of this Agreement continue and remain in full force and effect. ARTICLE 3 COMPENSATION Section 3.1 Compensation CONTRACTOR's compensation for all work under this Agreement shall conform to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by this reference. CONTRACTOR shall not undertake any work beyond the scope of this Agreement unless such additional work is approved in advance and in writing by CITY. Section 3.2 Method of PaVment CONTRACTOR shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing, without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONTRACTOR's compensation for all work under this Agreement shall not exceed the amount of the Fee Proposal. Section 3.3 Costs The Fee Proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved in advanced and in writing, by CITY. Section 3.4 Auditing CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance needed to conduct such an audit. CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of this Agreement. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable 3 notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under this Agreement. ARTICLE 4 MISCELLANEOUS PROVISIONS Section- 4.1- -Non discrimination In performing services under this Agreement, CONTRACTOR shall not discriminate in the employment of its employees or in the engagement of any sub CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, age, or any other criteria prohibited by law. Section 4.2 ADA Compliance In performing services under this Agreement, CONTRACTOR shall comply with the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well as all applicable regulations and guidelines issued pursuant to the ADA. Section 4.3 Indemnification and Responsibilily for Damage CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold harmless CITY, its elected and appointed officials, directors, officers, employees and volunteers from and against any claims, damages, losses, and expenses (including reasonable attorney's fees and costs), arising out of performance of the services to be performed under this Agreement, provided that any such claim, damage, loss, or expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any subcontractor employed directly by CONTRACTOR, anyone directly or indirectly employed by any of them, or anyone for whose acts they may be liable, except those injuries or damages arising out of the active negligence, sole negligence, or sole willful misconduct of the City of Lodi, its elected and appointed officials, directors, officers, employees and volunteers. CITY may, at its election, conduct the defense or participate in the defense of any claim related in any way to this indemnification. If CITY chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification, CONTRACTOR shall pay all of the costs related thereto, including without limitation reasonable attorney fees and costs. The defense and indemnification obligations 4 required by this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations set forth herein. Section 4.4 No Personal Liability Neither the City Council, nor any other officer or authorized assistant or agent or City employee shall be personally responsible for any liability arising under this Agreement. Section 4.5 Responsibili!y Responsibilityof CITY CITY shall not be held responsible for the care or protection of any material or parts of the work described in the Scope of Services prior to final acceptance by CITY, except as expressly provided herein. Section 4.6 Insurance Requirements for CONTRACTOR CONTRACTOR shall take out and maintain during the life of this Agreement, insurance coverage as set forth in Exhibit C attached hereto and incorporated by this reference. Section 4.7 Successors and Assigns CITY and CONTRACTOR each bind themselves, their partners, successors, assigns, and legal representatives to this Agreement without the written consent of the others. CONTRACTOR shall not assign or transfer any interest in this Agreement without the prior written consent of CITY. Consent to any such transfer shall be at the sole discretion of CITY. Section 4.8 Notices Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: To CITY: City of Lodi 221 West Pine Street P.O. Box 3006 Lodi, CA 95241-1910 Attn: Adam Brucker, Business Development Manager To CONTRACTOR: Mark Gosvener Efficiency Services Group 5605 NE Elam Young Parkway Hillsboro, OR 97124 5 Section 4.9 Cooperation of CITY CITY shall cooperate fully and in a timely manner in providing relevant information it has at its disposal relevant to the Scope of Services. Section 4.10 CONTRACTOR is Not an Employee of CITY CONTRACTOR agrees that in undertaking the duties to be performed under this Agreement, it shall act as an independent contractor for and on behalf of CITY and not an employee of CITY. CITY shall not direct the work and means for accomplishment of the services and work to be performed hereunder. CITY, however, retains the right to require that vdark performed by CONTRACTOR meet specific standards without regard to the manner and means of accomplishment thereof. Section 4.11 Termination CITY may terminate this Agreement, with or without cause, by giving CONTRACTOR at least ten (10) days written notice. Where phases are anticipated within the Scope of Services, at which an intermediate decision is required concerning whether to proceed further, CITY may terminate at the conclusion of any such phase. Upon termination, CONTRACTOR shall be entitled to payment as set forth in the attached Exhibit B to the extent that the work has been performed. Upon termination, CONTRACTOR shall immediately suspend all work on the Project and deliver any documents or work in progress to CITY. However, CITY shall assume no liability for costs, expenses or lost profits resulting from services not completed or for contracts entered into by CONTRACTOR with third parties in reliance upon this Agreement. Section 4.12 Confidentiality CONTRACTOR agrees to maintain confidentiality of all work and work products produced under this Agreement, except to the extent otherwise required by law or permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or "Proprietary", except to the extent otherwise required by law or permitted in writing by CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California Public Records Act. Section 4.13 Applicable Law Jurisdiction Severability. and Attorne 's Fees This Agreement shall be governed by the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin County Superior Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict 6 with said laws, but the remainder of this Agreement shall be in force and effect. In the event any dispute between the parties arises under or regarding this Agreement, the prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's fees from the party who does not prevail as determined by the San Joaquin County Superior Court. Section 4.14 Ci Business License Re uirement CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020 requires CONTRACTOR to have a city business license and CONTRACTOR agrees to secure such license and pay the appropriate fees prior to performing any work hereunder. Section 4.15 Captions The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question or interpretation or intent hereunder. Section 4.16 Integration and Modification This Agreement represents the entire understanding of CITY and CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties. Section 4.17 Contract Terms Prevail All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached exhibits, the terms of this Agreement shall prevail. Section 4.18 Severabilily The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Section 4.19 ownership of Documents All documents, photographs, reports, analyses, audits, computer media, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such documents during CONTRACTOR's regular business hours. Upon termination or 7 completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days. CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any liability resulting from CITY's use of such documents for any purpose other than the purpose for which they were intended. Section 4.20 Author! The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. Section 4.21 Federal Transit Funding Conditions ❑ If the box at left is checked, the Federal Transit Funding conditions attached as Exhibit D apply to this Agreement. In the event of a conflict between the terms of this Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the Federal Transit Funding Conditions will control. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Agreement as of the date first above written. ATTEST: 112 r JErgNIFER N'r!:ROBISON City Clerk APPROVED AS TO FORM: JANICE D. MAGDICH, City Attorney i CITY OF LODI, a municipal corporation STEPHENS �. City .- EFFICIENCY SERVICES GROUP By: Name: MARK CG' OS4VN ER Title: CHIEF OPERATING OFFICER Attachments: Exhibit A - Scope of Services Exhibit B — Fee Proposal Exhibit C — Insurance Requirements Exhibit D — Federal Transit Funding Conditions (if applicable) Funding Source: 164604.7323 (Business Unit & Account No.) Doc ID: CA:Rev.07.2014 8 EXHIBIT SCOPE OF WORK Program Administration Office + Maintain program hotline to address customer/contractor inquiries regarding Lodi's EE and Renewable programs; the hotline will be staffed 8:00 am — 5:00 pm, Monday through Friday Manage residential and commercial EE rebate programs, including review of all customer/contractor rebate applications and project documentation to ensure compliance with LEU program specifications and requirements • Manage residential and commercial Solar PV Program; including review of all customer/contractor rebate applications and project documentation to ensure compliance with LEU and SB1 program specifications and requirements • Enter all customer rebates and project details into database ■ Provide Lodi with monthly activity reports which include: - Program Summary (current month, YTD, PTD), - Measure Summary (current month), - Customer/Measure Detail (current month) - Customer Rebates (current month) • Maintain all customer/contractor applications and required project documentation for EM&V and other compliance requirements Field Provide all aspects of field support (audits/inspections) required to assure LEUs EE programs are in compliance with requirements • Conduct on-site performance inspections of all solar PV systems Provide basic technical guidance and assistance to customers and contractors participating in LEU's programs • Maintain all field records and required project documentation • Conduct on-site energy evaluation assistance (if needed) for LEU's larger customers to help determine feasibility/eligibility for participation in LEU's rebate programs Requests for field visits will be scheduled in a way that provides timely response to customer/contractor requests, while maximizing the use of the field technician's time. ESG will plan to make a field technician available to LEU customers every one to two weeks. Field support will be performed by knowledgeable, experienced field technicians. For the services performed under this Agreement, it is assumed that Energy Engineer credentials are not required for field technicians. Energy engineering services can be provided through ESG; however, those services do not fall under the scope of this Agreement. Third Party Contractor Oversight ESG will provide oversight of LEU's third party program contractors, including: • Review of contractor's deliverables/responsibilities • Review of contractor's project documentation/reports submitted to LEU to ensure that work is complete, accurate and compliant with program requirements • Coordinate with contractors and LEU's PB manager to resolve any questions or issues that arise Coordination with LEU ESG's Program Manager will meet monthly with LEU's PB Manager to report on program activity and address any questions or issues, as well as discuss future program developments. Budget and Goal Tracking ESG will track and report PB expenditures to LEU in order to assure that sector budgets are not exceeded, as well as track and report energy savings acquired and progress towards LEU's AB2021 goals. NCPA Representation ESG has been regularly attending NCPA Public Benefit Sub -Committee meetings on behalf of our NCPA client utilities for over ten years. ESG staff, NCPA staff and other NCPA members are well known to each other. ESG will represent Lodi at the monthly NCPA Public Benefit Sub -Committee meetings, as well as respond to inquiries from NCPA regarding Lodi's EE and Renewable programs. Data Management ESG maintains a database that is used to process rebates as well as report EE and Renewable program activity for all of our client utilities. LEU can opt to use ESG's database at no additional charge. ESG's database functions very well in capturing, managing and reporting program activity in order to respond to CEC and utility budgeting/reporting needs. Page 11 Legislative Requirements ESG stays current on existing and proposed legislation regarding PB funding, energy efficiency, and renewable programs in order to assure that our utility clients remain in compliance with requirements. ESG also stays current on the GEC's reporting requirements, as well as any changes to reporting tools. ESG will provide LEU with all data and draft narratives required to meet legislative/CEC reporting requirements for EE and Renewable programs. ESG Office Locations ESG will establish an office in Rocklin, CA to assure we have the ability to respond to customer/contractor needs in a timely manner. Our Rocklin office will maintain experienced field staff and office support staff. Rocklin is located approximately one hour from Lodi. In addition, some services under this Agreement will be performed by staff located in ESG's main office which is located in Milwaukie, OR. ESG Sub -Contractors ESG plans to partner with Optimized Energy and Facilities Consulting, Inc. (OEFC) to deliver the services in this Agreement. OEFC is located at 5734 Lonetree Blvd, Rocklin, CA 95765. OEFC is an energy engineering firm, and currently assists LEU with their annual E3/SB1037 energy efficiency data input and reporting. This service will now be provided under this existing service contract. ESG has a strong working relationship with OEFC, and has partnered with them to provided energy efficiency services to several California POUs for over ten years. ESG pians to lease office space from OEFC at their Rocklin, CA headquarters. OEFC will provide administrative support staff and technical field staff to perform services under this Agreement. In addition, ESG's office space at OEFC will provide a local mailing address for Lodi customers/contractors to submit paperwork. Under this Agreement, OEFC will be a subcontractor to ESG. Implementation Timeline ESG anticipates that we have the capability to immediately assume the responsibilities described in this Agreement. Page 12 EXHIBIT B COMPENSATION Pricing Turnkey Program Administration (Ongoing) - ESG will bill an ongoing fee of $6,500 per month for the services listed in this -section of Exhibit A. This includes up to three days per month of field support; additional field support will be billed at $60 per hour. Expenses — ESG will bill for reimbursable travel expenses (including mileage at the current Federal rate), not to exceed $500 per month. Energy Engineering Services - In the event that ESG or LEU deems it necessary to use technical specialists (other than ESG staff or OEFC non -engineering staff} for large commercial or industrial customers, the fees will be in addition to the standard fees listed above. ESG will obtain LEU's approval prior to work beginning and the associated fees will be billed separately from the standard fees on ESG's monthly invoice. Billing and Payment Terms ESG will submit monthly invoices to LEU for the (ongoing) turnkey program administration services and reimbursable travel expenses incurred during the invoice period. Fees for specialized technical services will be billed separately and submitted upon completion of the services. ESG's payment terms are Net 30 days. In the event that LEU discovers an invoice discrepancy, we ask to be notified within 5 days of receipt of the invoice. ESG will then correct any discrepancies and submit a revised invoice within 5 days of receiving notification from LEU. EXHIBIT C Q�frot�� insurance Requirements for Consuitan The Consultant shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Consultant and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Consultant's operations under this Agreement, whether such operations be by Consultant, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: COMPREHENSIVE GENERAL LIABILITY $1,000,000 Each Occurrence $2,000,000 -Aggregate 2. COMPREHENSIVE AUTO OBILE LIABILITY $1,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement Coverage shall be written on ISO form CA 00 01 12 90, or a later version of this form, or an equivalent form providing equivalent liability coverage. 3. PROFESSIONAL LIABILITY / ERRORS AND OMISSIONS $1,000,000 Each Occurrence All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (#i) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Consultant; whichever is greater. Consultant agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or equivalent Form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. (b) PrimaU and Nan -Contribute Insurance Endorsement Additional insurance coverage under the Consultant's policy shall be "primary and nor -contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of therp oiect_that it is insuring. Page 1 I of 2 pages I Risk: rev.03.2014 Insurance RIguirements for Consultant (continued) (c) Limits of Cayeraale The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Consultant shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. (d) Com leted O erations Ersdorsernent For three years after completion of project, a certificate of insurance with a Completed Operations Endorsement, CG 20 37 07 04, will be provided to the City of Lodi. (e) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (f) Notice of Cancellation or Chane in Covera a Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellations or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. (g) Continuity of Coverao� All policies shall be in effect on or before the First day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Consultant shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Consultant shall provide proof of continuing insurance on at least an annual basis during the Term. If Consultant's insurance lapses or is discontinued for any reason, Consultant shall immediately notify the City and immediately obtain replacement insurance. (h) Failure to Comply If Consultant fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Consultant shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Consultant of such payment of premiums within thirty (30) days of payment stating the amount paid, the names) of the insurer(s), and rate of interest. Consultant shall pay such reimbursement and interest on the first (15) day of the month following the City's notice. Notwithstanding and other provision of this Agreement, if Consultant fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Consultant shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (i) Qualified-Insurer(a) All Insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Compensation Ensu ance The Consultant shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Consultant's employees employed at the site of the project and, if any work is sublet, Consultant shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Consultant. In case any class of employees engaged in hazardous work under this Agreement at the site of the project is not protected under the Worker's Compensation Statute, the Consultant shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance. This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 2 1 of 2 pages I Risk: rev.03.2014 EFFICIENCY SERVICES EXHIBITB Group Amendment 1 SCOPE OF WORK This amends the existing Agreement for Public Benefits Program Administration signed December 5, 2014 currently provided by Efficiency Services Group (ESG) for the City of Lodi (Lodi). All terms, conditions and scope of work in the original Agreement remain in full effect unless specifically modified in this Amendment. Residential Site Visits Additional Service: Perform residential customer site visits within Lodi service territory as requested to address the specific needs of customers regarding the management of their energy use. This may include customer inquiries regarding unusually high energy use and evaluations for potential participation in Lodi's energy efficiency and renewable programs. This service is being added to the scope of work under the existing Agreement for Public Benefits Program Administration. Existing Contract Term The term for the scope of work for Public Benefits Program Administration is extended through June 30, 2017. Residential Snapshot Auditing and Direct Install This program is proactive and cost-effectively serves a large number of customers in a short period of time. ESG will work with Lodi to determine how this program can best meet the needs of Lodi by providing instant energy and water savings and a positive experience for residential customers. Scope of Services ESG will provide the following services: ■ Coordinate with Lodi to sign customers up for the program • Direct installation of selected measures in eligible home • Field collection of customer and site data ■ Email snapshot audit report (PDF) to Lodi • Deliver marketing, educational, and customer relations collateral to explain benefits and applications of installed measures, promote other utility programs, and strengthen relationships with customers; development of new collateral materials to be at additional cost, with prior approval by Lodi ■ Supply all product, materials and labor associated with the installation of measures • Warranty fulfillment for all products installed for a period of two years ■ Report customer, site and measure installation to Lodi in a flexible format (CSV), including summary reports of snapshot audit findings • Complete program administration, including customer hotline, invoicing, reporting, inventory management and compliance EXHIBIT B Lodi will be asked to provide the following: • Coordinate with ESG to sign customers up for the program ■ Review and approval of marketing and customer relation materials • Provide a utility -endorsed letter on Lodi letterhead explaining the program that ESG's Energy Efficiency Advisors (EEAs) can present to customers when visiting their homes • Provide vehicle magnets with Lodi logo so EEAs are clearly identified with the Lodi DI and Snapshot Audit Program Customer Eligibility The program will be open to all Lodi residential customers. Customers may email or call to sign up for the program, or ESG may approach customers directly. ESG will coordinate with Lodi to finalize a strategy to approach customers and generate sign-ups for the program. Ditrak EEAs utilize Ditrak to electronically capture all snapshot audit and direct install data in the field. Ditrak is an iPad data management system that is linked to a web -based database. The Ditrak system creates a PDF report of each customer served and emails a copy of the report to Lodi and ESG. Ditrak uploads all data to an online database which allows ESG to prepare activity reports, provide Lodi with aggregate and detailed snapshot audit data, invoicing, and inventory management. Direct Install Measures (DIMs) ESG will work with Lodi to finalize the DIMs and quantities to be offered to residential customers through this program. ESG recommends including the following DIMs: • Screw -In LEDs • High Performance Showerheads • Faucet Aerators (1 gpm Bath and 1.5 gpm Kitchen Swivel) • Thermostatic Shower Valves • Advanced Infrared Smart Power Strips ESG will make product recommendations to Lodi based on field installation experience and customer satisfaction feedback. Residential Snapshot Audits While in the customer home installing DIMs, ESG will acquire the following customer demographic and site/equipment data: • Customer name and contact information • Water heater fuel type and size • Own/rent ■ Year built • Approximate square footage ■ Foundation type • House type • Primary space heat fuel type 2 EXHIBIT B • Primary HVAC system type ■ Secondary space heat fuel type • Secondary HVAC system type ■ Central A/C (Yes/No) • Central A/C tons • A/C last serviced ■ Window type • Attic insulation ■ Wall insulation • Floor/Crawl insulation • Duct type • Duct insulation • Appliance inventory o Clothes dryer fuel o Clothes washer type o Dishwasher age o Evaporative Cooler o Refrigerator quantity and age o Freezer quantity and age o Range/Oven type o Television quantity and type (HD/analog) o Window A/C units o Well pumps o Pool pumps o Spa o Computers ■ Customer Comfort (satisfied, not satisfied) • EEA/customer comments Field Manual ESG will coordinate with Lodi to develop a field manual that establishes acceptable DIM installation standards, as well as snapshot audit data collection protocols. Reportable Energy Savings Proposed snapshot audit and DIM savings are from the E3 Tool and Bonneville Power Administration. Measure Home Snapshot Audit Unit . - Audit Average kWh Per Unit 0 Screw -In LEDs Lamp 25.5 High Performance Showerhead Showerhead 94.45 Thermostatic Shower Valve Valve 47.6 Faucet Aerator Aerator 40 Advanced Smart Power Strip Power Strip 356 3 EXHIBIT B Quarterly Newsletter ESG will develop content for a quarterly newsletter to be approved by Lodi. The newsletter is to be 8 %:" by 11" and two-sided. Research, copywriting, proof reading, graphic design, client review and revisions are included. Pricing Public Benefits Program Administration Monthly fee for Public Benefits Program Administration is increased to $6,750 (3.7%). Expenses budget is increased from not -to -exceed $500 per month to not -to -exceed $1,000 per month. Total contract not -to -exceed amount is $166,625. Home Snapshot Audit and Direct Install Program The fees for the DI Program are on a per -measure -installed basis. Prices include all labor, materials and expenses associated with installation of the products and delivery of services. Total program budget is $200,000. Fees for direct installed measures and snapshot audits are shown in the following table: Measure'111111W Cost Unit Fee per Cost Unit Home Snapshot Audit Audit $40.00 Screw -In LEDs Lamp $18.00 Standard Showerhead Showerhead $20.00 Handheld Showerhead Showerhead $30.00 Thermostatic Shower Valve Valve $40.00 Faucet Aerator Aerator $ 5.00 Advanced Smart Power Strips Power Strip $90.00 Quarterly Newsletter Camera ready price (printing not included) is $1,200 per issue. If hard copies are requested by Lodi, the cost of printing 26,000 8 %:" x 11", two-sided, color 4/4 on 120# cover, unfolded copies is included, the price would be $5,500 per issue. The total newsletter not -to -exceed amount is $38,500. 4 EXHIBIT C 4E!FORa Insurance Requirements for Contractor The Contractor shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Contractor and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Contractor's operations under this Agreement, whether such operations be by Contractor, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: COMPREHENSIVE GENERAL LIABILITY $1,000,000 Each Occurrence $2,000,000 General Aggregate COMPREHENSIVE AUTOMOSILE LIABILITY $1,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version, that provides liability coverage at least as broad as this form. All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Contractor; whichever is greater. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or a later version, that provides liability coverage at least as broad as this form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. An additional named insured endorsement is also required for Auto Liability. (b) Primary and Non -Contributory insurance Endorsement Additional insurance coverage under the Contractor's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. A primary and non-contributory insurance endorsement is also required for Auto Liability. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of therp oiect that it is insuring. (c) Waiver of Subrogation Include a waiver of subrogation against the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. A waiver is required for General Liability and Auto Liability. (d) Limits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Contractor shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. Page 1 I of 2 pages Risk: rev.08.2015 Insurance Requirements for Contractor (continued) (e) Completed Operations Endorsement For three years after completion of project, a certificate of insurance with a Completed Operations Endorsement, CG 20 37 07 04, will be provided to the City of Lodi. (f) Severability, of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (g) Notice_ of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. (h) Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. Failure to Cam If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the name(s) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1s) day of the month following the City's notice. Notwithstanding and other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. Q) Qualified Insurer(s), All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Compensation Insurance The Contractor shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Contractor's employees employed at the site of the project and, if any work is sublet, Contractor shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Contractor. In case any class of employees engaged in hazardous work under this Agreement at the site of the project is not protected under the Worker's Compensation Statute, the Contractor shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance. This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. _. . Page 2 1 of 2 pages Risk: rev.08.2015 Newsletter, Audit and Direct Install Program City Council Item: I-02 September 16, 2015 Newsletter, Audit and Direct Install Program Public Benefits Program Efficiency Services Group (ESG) Customer Concerns New ESG Services Customer Assistance z Public Benefits Program AB1890(1996) Rebates Products and Improvements Discounts CARE; SHARE; Medical; Senior Fixed Income Education Online calculators; 6t" grade school kits; Youth Energy Summit sponsorship Public Outreach Advertisements; mail inserts 3 Efficiency Services Group (ESG) Public Benefits Rebate Program Solar PV Rebate Program NCPA Public Benefits Committee 2 Customer Concerns Increasing residential concerns High bill inquiries Reduce electric bills Higher level of service Individual assistance (today) Over the phone (staff and ESG) Home energy audit tool (online) No option for an in-home residential audit 5 Customer Concerns Save Energy, Save Money Behavior modifications Immediate savings No cost to customer Rebate program Purchase EE products and make home improvements May not ,be a viable option for renters and low income 0 New ESG Services Staff proposes amendment of ESG's contract to offer the following additional services: Newsletter (quarterly) In-home energy audit Direct install New ESG Services In-home energy audit Detailed information about electrical usage Recommendations for energy savings Direct install program Screw-in LEDs Shower heads Thermostatic shower valve Faucet aerator Smart power strips Customer Assistance High Bill Inquiries (LEU / ESG) Audit/Direct Install (ESG) Meter Testing (LEU) 9 Customer Assistance Recommended Action: Adopt a Resolution authorizing the City Manager to Execute Amendment No. 1 to the Agreement for Professional Services with Efficiency Services Group of Hillsboro, Oregon, for Public Benefits Program Administration in an amount not to exceed $405,125 and further authorizing the City Manager to execute a two-year extension at City's option IN