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Home My WebLink About20B - AA - PARTNERSHIP FUNDINGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 16, 2014 TITLE: EXTEND PARTNERSHIP FUNDING AGREEMENTS WITH SOUTHERN CALIFORNIA EDISON AND SOUTHERN CALIFORNIA GAS COMPANY (STRATEGIC PLAN NO. 5, 2) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Authorize the City Manager and Clerk of the Council to execute amendments to partnership agreements with Southern California Edison and Southern California Gas Company, subject to nonsubstantive changes approved by the City Manager and City Attorney, to extend the term through June 30, 2016, and to increase the funding allocation by $70,000 and $28,000, respectively. 2. Approve an appropriation adjustment recognizing $70,000 and $28,000 in funding from Southern California Edison and Southern California Gas Company, respectively, and appropriating the same amount to the Public Works Administrative Services Contract Services - Professional account for fulfillment of the partnerships. DISCUSSION The California Public Utilities Commission (CPUC) authorized Southern California Edison (SCE) and Southern California Gas Company (SCG), in partnership with cities, to deliver energy efficiency programs to utility customers in their respective service areas. The City was awarded a partnership with SCE for 2010 -2012, which was extended to December 31, 2014, and a partnership with SCG for 2013 -2014. The focus of both partnerships is to jointly deliver energy efficiency information, training, and materials that benefit Santa Ana customers. The partnerships also optimize the City's opportunities for achieving short- and long -term energy savings and reduced utility bills, and assists City residents and businesses in understanding, managing, and reducing energy use and costs. Both partnership agreements end December 31, 2014. The CPUC recently authorized SCE and SCG to extend the Santa Ana partnership agreements to June 30, 2016. This will enable the continuation of energy efficiency programming through the partnerships. In addition, SCE has increased its reimbursement allocation by an additional $70,000, and SCG has increased its funding allocation by an additional $28,000 for this extension period. 20B -1 Extend Partnership Funding Agreements with Southern California Edison and Southern California Gas Company December 16, 2014 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability). ENVIRONMENTAL IMPACT There is no environmental impact associated with extending the agreements. However, continued implementation of energy efficiency programs and strategies will enhance the environment by improving air quality, reducing pollution, and conserving natural resources. FISCAL IMPACT The CPUC has approved the not -to- exceed allocations of $70,000 (SCE) and $28,000 (SCG) for the extension period. SCE and SCG will reimburse program expenditures incurred by the City for partnership projects. Funding is available in the Public Works Administrative Services Contract Services- Professional account (10117601- 62300). Reimbursement funds will be deposited in the Public Works Administrative Services Revenue Expense Reimbursement account (10117002- 57006). J, �_� Executive Director Public Works Agency FM /CLK APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency Exhibits: 1. Second Amendment to SCE Partnership Agreement 2. First Amendment to SCG Partnership Agreement 20B -2 SECOND AMENDMENT THIS SECOND AMENDMENT ( "SECOND AMENDMENT ") TO THE AGREEMENT TO JOINTLY DELIVER THE 2010 -2012 ENERGY LEADER PARTNERSHIP PROGRAM dated January 1, 2010 (the "Agreement ") is effective as of January 1, 2015 (the "Second Amendment Effective Date ") by and between SOUTHERN CALIFORNIA EDISON COMPANY ( "SCE ") AND THE CITY OF SANTA ANA. Terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement. SCE may be referred to individually herein as the "Utility ". SCE and The City of Santa Ana may be referred to herein individually as a "Party" or collectively as the "Parties." RECITALS WHEREAS, the Parties previously executed the Agreement effective January 1, 2010 and subsequently amended the Agreement to extend its term through December 31, 2014 in accordance with the applicable decisions of the California Public Utilities Commission ( "Commission "); WHEREAS, on November 14, 2013, the Utility submitted its application ( "2015 Application ") for the implementation of energy efficiency programs to be delivered to California utility customers for the years 2015, which included the a continuation of The City of Santa Ana Partnership Program through 2015( "2015 Program "); WHEREAS, on October 24, 2014, the Commission issued its Decision D. 14 -10 -046. approving the continuation of the Energy Efficiency Partnership Programs, which includes the 2015 Program, and the Parties desire to extend the Agreement through 2015 under the terms and conditions set forth in the Agreement, except as otherwise provided in this Second Amendment; and WHEREAS, the Parties desire to further amend the Agreement as necessary to provide an authorized budget for the 2015 Program and to update the Agreement as required to reflect the extended 2015 Program cycle. NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. To the extent applicable, any reference in the Agreement, as amended, to the "2010 -2012 Program" shall also hereby include the 2015 Program, SCE CONFIDENTIAL PTO 1 of 6 2. Section 1 I of the Agreement is hereby deleted in its entirety and replaced with the following: 11. END DATE FOR PROGRAM AND ADMINISTRATIVE ACTIVITIES Unless this Agreement is terminated pursuant to Section 25 below, or unless otherwise agreed to by the Parties or so ordered by the Comrnission, the Parties shall complete all Program Administrative activities (as defined in the PIP) and all reporting requirements by no later than March 31, 2016, and all Direct Implementation and Marketing & Outreach activities by no later than December 31, 2015, 3. Section 12 of the Agreement is hereby deleted in its entirety and replaced with the following: 12. FINAL INVOICES The City must submit final invoices to the Utility no later than March 31, 2016. 4. Section 25.1 of the Agreement is hereby deleted in its entirety and replaced with the following: 25.1 Term. This Agreement shall be effective as of the Effective Date. Subject to Section 37, the Agreement shall continue in effect until June 30, 2016 unless otherwise terminated in accordance with the provisions of Section 25.2 or 30 below. 5. Section 26 of the Agreement is hereby deleted in its entirety and replaced with the following: 26. WRITTEN NOTICES Any written notice, demand or request required or authorized in connection with this Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally recognized overnight courier, or first class mail, postage prepaid, to the address specified below, or to another address specified in writing by a Party as follows: The City: SCE: Public Works Agency Southern California Edison Company City of Santa Ana Irfan Parekh, Program Manager 20 Civic Center Plaza 1515 Walnut Grove Avenue Santa Ana, CA 92701 Rosemead, CA 91770 Notices shall be deemed received (a) if personally or hand - delivered, upon the date of delivery to the address of the person to receive such notice if delivered before 5:00 p.m. PST (or PDT, as applicable), or otherwise on the Business Day following personal delivery; (b) if mailcd, three (3) Business Days after the date the notice is postmarked; (c) if by facsimile, upon electronic confirmation of transmission, followed by telephone notification of transmission by the noticing Party; or (d) if by overnight courier, on the Business Day following delivery to the overnight courier within the time limits set by that courier for next -day delivery. 6. This Second Amendment maybe executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument. SCE CONFIDENTIAL 2 of 6 7. Exhibit B (ENERGY LEADER PARTNERSHIP PROGRAM 2010 -12 GOALS & PARTNER BUDGET) of the Agreement are hereby deleted in their entirety and replaced with the version of Exhibit B -1 (ENERGY LEADER PARTNERSHIP PROGRAM 2015 GOALS & PARTNER BUDGET FOR The City of Santa Ana attached to this Second Amendment, which attached versions are incorporated herein by reference and made a part of the Agreement. 8. General. From and after the Second Amendment Effective Date, any reference to the Agreement contained in any notice, request, certificate or other instrument, document or agreement shall be deemed to mean the Agreement, as amended by any prior amendments to the Agreement, and this Second Amendment. In the event of any conflict between the Agreement, as amended, and this Second Amendment, this Second Amendment shall prevail. All remaining provisions of the Agreement shall remain unchanged and in full force and effect. Each party is fully responsible for ensuring that the person signing this Second/Third Amendment on that party's behalf has the requisite legal authority to do so. SCE CONFIDENTIAL (SIGNATURES FOLLOW ON NEXT PAGE] rl- 3 of 6 IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be executed by their duly authorized representatives as of the Second Amendment Effective Date. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CAARRVALHO City 'to By: Jose ndovalf Chief ssistant City Attorney RECOMMENDED FOR APPROVAL: FRED MOUSAVIPOUR Executive Director Public Works Agency SCE: SOUTHERN CALIFORNIA EDISON COMPANY By: Name Printed: Kevin Payne Title: Senior Vice President, Customer Service Date: SCE CONFIDENTIAL rI- CITY OF SANTA ANA DAVID CAVAZOS City Manager :n, ri EXHIBIT B -1 ENERGY LEADER PARTNERSHIP PROGRAM 2015 GOALS & PARTNER BUDGET FOR SANTA ANA Program Cycle Partner Budget and Goals: 2015 Energy Savings Goal Maximum Partner Maximum Partner Maximum Partner 138 Budget Budget Budget Direct Implementation 20131 2014' 2015 Total: $210,818 $210,819 $422,339 Incentive: $110,818 $110,819 $322,339 Non - Incentive: (Marketing & Outreach, Technical Assistance, Direct Implementation and $100,000 $100,000 $100,000 Strategic Plan) 2015 Energy Savings Goal kWh kW 900,000 138 Budget Category 2015' Administrative $- Marketing & Outreach $70,000 Technical Assistance $30,000 Direct Implementation $_ Incentive $332,339 Strategic Plan $_ Total Partner Budget $422,339 2013 and 2014 Budget figures represent the total Authorized Budget, not the available remaining budget. The 2015 Budget was approved by the CPUC to be the third year of the 2013 -2014 Program. Unspent funds from 2013- 2014 may be carried over for use in 2015, in addition to the 2015 Budget. ' Budget category breakdowns are estimates of amounts that will be spent in each category. Actual Partner expenses maybe different, to the extent permitted by program rules and applicable CPUC decisions SCE CONFIDENTIAL 20B -7 5of6 ri- FIRST AMENDMENT THIS FIRST AMENDMENT TO THE AGREEMENT TO DELIVER THE 2013 -2014 ENERGY PARTNERSHIP PROGRAM dated January 1, 2013 (the "Agreement ") is effective as of January 1, 2015 by and between SOUTHERN CALIFORNIA GAS COMPANY ( "SCG ") AND THE CITY OF SANTA ANA. Terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement. SCG may be referred to individually herein as the "Utility" or collectively as the "Utilities ". The Utilities and The City of Santa Ana may be referred to herein individually as a "Party" or collectively as the "Parties." RECITALS WHEREAS, the Parties previously executed the Agreement effective January 1, 2013 in accordance with the applicable decisions of the California Public Utilities Commission ( "Commission "); WHEREAS, on November 14, 2013, the Utility submitted its application ( "2015 Application ") for the implementation of energy efficiency programs to be delivered to California utility customers for the years 2015, which included a continuation of the Santa Ana Energy Efficiency Partnership Program through 2015 ( "2015 Program "); WHEREAS, on October 16, 2014, the Commission issued its Decision 14 -10 -046 approving the continuation of the Energy Efficiency Partnership Programs, which includes the 2015 Program, and the Parties desire to extend the Agreement through the year 2015 under the terms and conditions set forth in the Agreement, except as otherwise provided in this First Amendment; and WHEREAS, the Parties desire to further amend the Agreement as necessary to provide an authorized budget for the 2015 Program and to update the Agreement as required to reflect the extended 2015 Program cycle. NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. To the extent applicable, any reference in the Agreement, as amended, to the "2013 -2014 Program" shall also hereby include the 2015 Program. SOCALGAS CONFIDENTIAL rl- • 1 of 5 2. Section 11 of the Agreement is hereby deleted in its entirety and replaced with the following: 11. END DATE FOR PROGRAM AND ADMINISTRATIVE ACTIVITIES Unless this Agreement is terminated pursuant to Section 25 below, or unless otherwise agreed to by the Parties or so ordered by the Commission, the Parties shall complete all Program Administrative activities (as defined in the PIP) and all reporting requirements by no later than March 31, 2016, and all Direct Implementation and Marketing & Outreach activities by no later than December 31, 2015. 3. Section 12 of the Agreement is hereby deleted in its entirety and replaced with the following: 12. FINAL INVOICES The City must submit final invoices to the Utility no later than March 31, 2016. 4. Section 25.1 of the Agreement is hereby deleted in its entirety and replaced with the following: 25.1 Term. This Agreement shall be effective as of the Effective Date. Subject to Section 37, the Agreement shall continue in effect until June 30, 2016 unless otherwise terminated in accordance with the provisions of Section 25.2 or 30 below. 5. Section 26 of the Agreement is hereby deleted in its entirety and replaced with the following: 26. WRITTEN NOTICES Any written notice, demand or request required or authorized in connection with this Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally recognized overnight courier, or first class mail, postage prepaid, to the address specified below, or to another address specified in writing by a Party as follows: The City: City of Santa Ana Director of Public Works 20 Civic Center Plaza, M -21 City of Santa, CA 92701 Tel: (714) 647 -5654 Fax: (714) 647-5622 SCG: Southern California Gas Company Paulo Morais, Energy Programs Supervisor 555 W. Fifth Street, GT28A4 Los Angeles, CA 90013 Tel: (213) 244 -3246 Fax: (213) 244-8252 Email: PMorais @semprautilities.com Notices shall be deemed received (a) if personally or hand - delivered, upon the date of delivery to the address of the person to receive such notice if delivered before 5:00 p.m. PST (or PDT, as applicable), or otherwise on the Business Day following personal delivery; (b) if mailed, three (3) Business Days after the date the notice is postmarked; (c) if by facsimile, upon electronic confirmation of transmission, followed by telephone notification of transmission by the noticing Party; or (d) if by overnight courier, on the Business Day following delivery to the overnight courier within the time limits set by that courier for next -day delivery. SOCALGAS CONFIDENTIAL 2 of 5 20B -10 6. This First Amendment maybe executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument. Exhibit B (Southern California Gas Company GOALS & CITY OF SANTA ANA ENERGY PARTNERSHIP BUDGET) of the Agreement are hereby deleted in their entirety and replaced with the version of Exhibit B Southern California Gas Company 2015 GOALS & PARTNER BUDGET FOR The City of Santa Ana attached to this Second Amendment, which attached versions are incorporated herein by reference and made a part of the Agreement. General. From and after the First Amendment Effective Date, any reference to the Agreement contained in any notice, request, certificate or other instrument, document or agreement shall be deemed to mean the Agreement, as amended by any prior amendments to the Agreement, and this First Amendment. In the event of any conflict between the Agreement, as amended, and this First Amendment, this First Amendment shall prevail. All remaining provisions of the Agreement shall remain unchanged and in full force and effect. Each party is fully responsible for ensuring that the person signing this First Amendment on that party's behalf has the requisite legal authority to do so. SOCALGAS CONFIDENTIAL [SIGNATURES FOLLOW ON NEXT PAGE] 20B -11 3of5 IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed by their duty authorized representatives as of the First Amendment Effective Date. THE CITY: ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Jose doval Chic ssistant City A ey- RECOMMENDED FOR APPROVAL: FRED MOUSAVIPOUR Executive Director Public Works Agency SOCALGAS: SOUTHERN CALIFORNIA GAS COMPANY By: Name Printed: Frank Spasaro Title: Energy Efficiency Partnerships Manager Date: SOCALGAS CONFIDENTIAL CITY OF SANTA ANA DAVID CAVAZOS City Manager 20B -12 4of5 EXHIBIT B CITY OF SANTA ANA and SOUTHERN CALIFORNIA GAS COMPANY PARTNERSHIP 2013 -2015 GOALS & PROGRAM BUDGET Natural Gas Savings Target: Other non - resource goals are contained in the SCG PIP in Exhibit B -2 2013 -15 SCG Santa Ana Partnership 2013 -2015 Partnership Total Non - Incentive Budget 2013 2014 2015 3 -year Total SCG 9,000 Therms 10,000 Therms 9,500 Therms 28,500 Therms Other non - resource goals are contained in the SCG PIP in Exhibit B -2 2013 -15 SCG Santa Ana Partnership 2013 -2015 Partnership Total Non - Incentive Budget $223,228 2014 2015 SCG Authorized Budget $0,000 $0,000 $0,000 Marketing &Outreach Total Utility Authorized Budget $139,228 $8,000 Direct Implementation $20,000 $20,000 Partner Authorized Budget $84,000 2013 -15 Total Non - incentive Program Budget $223,228 Projected Allocations for Santa Ana Partnership Authorized Budget $84,000 (1) 2015 Budget was approved by the CPUC to be the third year of the 2013 -2014 Program. Unspent funding from 2013 -2014 may be used with the 2015 approved budget. SOCALGAS CONFIDENTIAL 20B -13 5of5 2013 2014 2015 Administration $0,000 $0,000 $0,000 Marketing &Outreach $8,000 $8,000 $8,000 Direct Implementation $20,000 $20,000 $20,000 (1) 2015 Budget was approved by the CPUC to be the third year of the 2013 -2014 Program. Unspent funding from 2013 -2014 may be used with the 2015 approved budget. SOCALGAS CONFIDENTIAL 20B -13 5of5 20B -14