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HomeMy WebLinkAboutMUNICIPAL WATER DISTRICT OF ORANGE COUNTY (4) - 2008INSURANCE NOT REQUIRED WORN MAY PROCEED CLERK OF COUNCIL N-2008-049 DATE: 5 a -oS '(ow. D~KAGREEMENT FOR SHARING ADMINISTRATION COSTS FOR IMPLEMENTATION OF HIGH EFFICIENCY TOILET, HIGH EFFICIENCY CLOTHES WASHER, SYNTHETIC TURF, AND ROTATING NOZZLES REBATE PROGRAMS THIS AGREEMENT for sharing administration costs ("Agreement") is made and entered into as of January 1, 2008, by and between the CITY OF SANTA ANA ("City") and the MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ("MWDOC"). The City and MWDOC are also collectively referred to herein as "Parties." RECITALS WHEREAS, MWDOC has developed and is implementing a program for achieving water conservation by offering rebates to encourage replacement of high water consumption toilet fixtures and clothes washers in single-family residences with high efficiency toilets and high efficiency clothes washers ("Residential Program"); and WHEREAS, MWDOC has also developed and is implementing a landscape water conservation program by offering rebates to encourage replacement of turf and high water consumption sprinkler heads in single-family residences with synthetic turf and rotating nozzles ("Landscape Program" and collectively "Programs"); and WHEREAS, MWDOC, through its Water Use Efficiency Department, encourages participation in both Programs by eligible cities and public agencies throughout Orange County; and WHEREAS, MWDOC has contracted with Honeywell International, Inc. ("Honeywell") to administer both Programs for an administration fee based on a per- rebate amount, as set forth in separate agreements between MWDOC and Honeywell ("Honeywell Agreements"); and WHEREAS, effective January 1, 2008, the administration fee in the Honeywell Agreement for the Residential Program increased from $28.00 per rebate processed to $29.50; and WHEREAS, effective November 7, 2007, the Honeywell Agreement for the Landscape Program established an administration fee of $27.50 per application for synthetic turf and rotating nozzles purchased after July 10, 2007; and WHEREAS, the City wishes to participate in the Program and make rebates available to its residents, and the City is willing to share with MW DOC the cost of increased administration fees under the Honeywell Agreement; NOW, THEREFORE, in consideration of the payment of money as set forth below and the mutual promises of the Parties hereto, it is agreed: 1. Cost Sharing by the Parties for Programs 1.1 MWDOC shall: 1.1.1. Based on reports provided by Honeywell pursuant to the Honeywell Agreement, determine the total number of rebates paid to participants in the Residential and Landscape Programs residing within the City's retail water sen+ice area in a given month; 1.1.2. Based on the City's total number of devices for which rebates were invoiced by Honeywell to MWDOC in a particular month, calculate the City's share of the amount owed to Honeywell for that month and invoice the City as follows: 1.1.2.1. High Efficiency Clothes Washers 1.1.2.1.1. Effective January 1, 2008, the City's portion of the administration fee is $19.50 per device. 1.1.2.2. High Efficiency Toilets 1.1.2.2.1. Effective January 1, 2008, the City's portion of the administration fee is $14.50 per device. 1.1.2.3. Rotating Nozzles 1.1.2.3.1. Effective November 7, 2007, the City's portion of the administration fee is $27.50 per rebate application for rotating nozzles purchased after August 20, 2006, up to a not -to-exceed total administration fee of $5,000. MW DOC will notify the City when this amount is near exhaustion. At that time, the City must elect to either increase this amount or discontinue the Program within its jurisdiction. Pursuant to the Honeywell Agreement for the Landscape Program, applications exceeding this amount will not be processed unless further funding is authorized by the City. 1.2. The City shall: 1.2.1. Pay to MWDOC the full amount invoiced by MWDOC for the City's share of Honeywell's administration fees. 1.2.2. Provide all information, documentation and assistance requested by MWDOC and Honeywell during the performance of this Agreement. AGREEMENT FOR SHARING ADMINISTRATION COSTS MWDOC and Cify of Santa Ana Page 2 of 5 2. Accounting Upon request by the City, MWDOC will provide copies of the Honeywell invoices and MWDOC's payment records. 3. Indemnification 3.1 MWDOC's activities with respect to the Programs are not anticipated to exceed those activities specifically referenced in this Agreement. To the extent MWDOC or its staff performs any activities in connection with the Programs, it agrees to indemnify and hold the City harmless from any and all liability, claims, obligations, damages and suits arising out of MWDOC's negligence in the performance of such activities, except to the extent such liability, claims, obligations, damages or suits arise from the City's negligence. 3.2 The City agrees to indemnify and hold MWDOC harmless from any and all liability, claims, obligations, damages and suits arising out of the City's negligence in the performance of activities in furtherance of the Program, except to the extent such liability, claims, obligations, damages or suits arise from MWDOC's negligence. Further, the City agrees to indemnify and hold MWDOC harmless from any and all liability, claims, obligations, damages and suits arising from public participation in the Programs, including but not limited to premises liability, property damage and personal injury claims that may relate to devices purchased with the intent to apply for a rebate through the Programs. 4. Notice Any notice or communication required to be given under this Agreement shall be in writing and effective when deposited, first class postage prepaid, with the United States Postal Service addressed to the contracting Parties as follows: If to City of Santa Ana: Santa Ana Public Works Agency Water Division -Water Quality Coordinator 220 S. Daisy Avenue Santa Ana, CA 92703 Attention: Thomas Dix If to MWDOC: Municipal Water District of Orange County 18700 Ward Street P.O. Box 20895 Fountain Valley, CA 92728 Attention: Joseph M. Berg 5. Jurisdiction and Venue In all matters concerning the validity, interpretation, performance, or effect of this Agreement, the laws of the State of California shall govern and be applicable. The Parties hereby agree and consent to the exclusive jurisdiction of the courts of the AGREEMENT FOR SHARING ADMINISTRATION COSTS MWDOC and City of Santa Ana Page 3 of 5 State of California and that venue of any action brought hereunder shall be in Orange County, California. Severability If any provision of this Agreement shall be held illegal, invalid, or unenforceable, in whole or in part, the legality, validity, and enforceability of the remaining provisions shall not be affected thereby. Entire Agreement This Agreement contains the entire agreement of the Parties relating to the subject matter hereof; and the Parties have made no agreements, representations, or warranties, either written or oral, relating to the subject matter hereof that are not set forth herein. Except as provided herein, this Agreement may not be modified or altered without prior written approval from both Parties. 8. Term This Agreement shall commence on January 1, 2008, and continue until December 31, 2008. Early Termination The City may terminate this Agreement at any time upon sixty (60) days' written notice to MWDOC. MWDOC may terminate this Agreement prior to the date of termination without prior notice in the event funding for either or both Programs is exhausted, reduced, or eliminated from any funding source. If MWDOC deems it necessary to terminate these Programs for any other reason, MWDOC will give the City thirty (30) days' written notice. In the event of termination by either party, the City will be responsible for payment of its portion of administration fees, as established herein, for all rebates paid to participants of the Programs within the City's service area prior to the effective date of the termination. For purposes of this paragraph, an application is deemed initiated when the participant obtains an application and participation is logged-in by the Rebate Contractor. 10.Amendments The Agreement may be modified or amended only by a writing duly authorized and executed by the City and MWDOC. 11. Assignment The City and MW DOC shall not assign, sublet, or transfer this agreement or any of the rights or interests in this agreement without the written consent of the other parties. 12. Confidentiality MWDOC agrees to maintain the confidentiality of the City's customer names, addresses and other information about Program participants gathered in connection with the Programs, and MWDOC will not cause or permit the disclosure of such information except as necessary to carry out the Programs. AGREEMENT FOR SHARING ADMINISTRATION COSTS MWDOC and Crty of Sanfa Ana Page 4 of 5 IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year written below, the latest of which shall be and is the effective date of this Agreement. APPROVED AS TO FORM: CITY OF SANTA ANA City Attorney By: I}irector, Pv7A PROVED AS TO FORM: McCormick, Kidman & Behrens, LLP Legal Counsel By: `l /c ~( By DAVID N. R M City Manager __. ATTEST: _ A B Clerk of the Co~u'rcil MUNICIPAL WATER DISTRI OF O GE CO TY By: Kevin P. Hunt General Manager AGREEMENT FOR SHARING ADMINISTRATION COSTS MWDOC and City of Santa Ana Page 5 of 5