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HomeMy WebLinkAboutStaff Report 16 01/21/1997AGENDA ITEM # KEY WORD: SCWA Agreement Water Conservation DATE: January 21, 1997 DEPARTMENT: Engineering Department Thomas S. Hargis, Director of Engineering REQUESTED COUNCIL ACTION: Pass resolution authorizing Mayor or City Manager to sign Funding Agreement with the Sonoma County Water Agency (SCWA) for the Petaluma Commercial Water Conservation Program, First Project Year (1996-97), (non-residential toilet retrofit). RECOMMENDATION: Pass resolution. BACKGROUND: At the 10/21/96 City Council meeting, a presentation was made regarding the proposed implementation of our water conservation program (see attached staff report). The agreement, as prepared, provides that the Water Agency would provide over -site consulting services, coordination of the program, and provide an additional $18,333 of funding for the first year. Staff feels that this is an appropriate method of implementing the program since the SCWA is undertaking a service area -wide increased water conservation program and their consultants of John Nelson and Ned Orrett are extremely well qualified in this kind of program and have been involved in the preparation of the County's water conservation program. The City of Rohnert Park is also considering a concurrent residential toilet retrofit program that may result in cost savings and greater efficiency for both cities. The SCWA would be providing similar assistance to both cities. ALTERNATIVES: 1. Modify the structure for implementation. 2. Finance the project entirely locally without Water Agency financial and staff assistance. CONSEQUENCES OF NOT ACTING: Delay official implementation of the program ACTION FOLLOWING AUTHORIZATION: Sign contract with the Water Agency. Pursue implementation of toilet retrofits. The consultants have been working on finding sites for a demonstration of the benefits of non-residential toilet retrofits and possible grants or donations of facilities. These would be installed at locations within the City that could be a reference for other interested non-residential users. xc: Steve Simmons de Project 9931 file Sonoma County Water Agency, Attn: Ali Davidson, 2150 West College Avenue, Santa Rosa, CA 95401 John Olaf Nelson Water Resources Management, Attn: John Nelson, 1833 Castle Drive, Petaluma, CA 94954 Ned Orrett, 1161 Western Avenue, Petaluma, CA 94952 retrofit/sblagendala:10 AGENDA ITEM # KEY WORD: CIP - Water Conservation DATE: 10/21/96 DEPAR'T'MENT: Engineering Department Thomas S. Hargis, Director of Engineering REQUESTED COUNCIL ACTION: Discuss proposed first year non-residential toilet retrofit program and provide direction to staff as to its implementation. RECOMMENDATION: Approve proposed program. BACKGROUND: See attached Water CIP and report titled "Plan of Work - City of Petaluma Water Conservation Project". This is proposed as the fust of a three year non-residential toilet retrofit program to be followed by a 10 year residential retrofit program. The first year's budget is $165,000 with $100,000 for installations and $65,000 for staff and consultants to get the program up and running. It is anticipated that the next two years will involve significantly less administration costs. The initial program is labor intensive to promote the installations, determine suitable businesses and institutions and insure satisfactory installations. This program is modified from the original in the water CIP to provide installations as an alternative to cash rebates. Past experiences indicate greater success by providing the plumbing fixtures installed by a city hired contractor. It is estimated that the three year total program would result in an annual saving of approximately 31 million gallons/year. Sonoma County Water Agency (SCWA) staff and their consultant, John Nelson, will be at the council meeting to present the program and answer questions. ALTERNATIVES: Expand program to include residential toilet retrofit. Shrink initial project to insure cost effective installations. CONSEQUENCES OF NOT ACTING: Delay implementation of program. �ttv of Petaluma Py 90 -Qi(' itat lm rm m i Plan - Water SvstjQni 171 rn ovcmrnts WATER CONSERVATION I#9931 PROJECT SCOPE This project will implement various programs that will reduce the amounts of water used by the customers ofPetaluma's Water Utility System, as well as the amount of water discharged to Petaluma's Wastewater Treatment and Disposal System. Programs will be implemented and applied to achieve the maximum benefit to cost ratio as outlined in [lie 1995 Sonoma County Water Agency report entitled Water and Wastewater EfjiciencylAvoided Cost Study prepared by the County's consultant. One goal of the project will be to focus on achieving reductions of Sonoma County Water Agency seater used for irrigation, by improving efficiencies thereby reducing peak demands on the water system. Another goal of the project will be to promote replacement of inefficient water fixtures inside homes, businesses and public facilities; thereby reducing flows to the City's wastewater treatment and disposal system. The cost of the project is apportioned between the Water and Wastewater Utility funds in proportion to their benefits. The main benefit for each system is reduced operational costs resulting from less pumping and/or disposal of waste. This project's scope and focus will be dynamic in that as conditions, costs and needs change, the project emphasis will change as well. WATER CONSERVATION PROGRAMS First 3 Years Proeram (FY 96-97 to FY 98-99) Incentives for Commereialflndustrial/Public "foilet/Shower Replacement. Cash rebates would be offered to encourage replacement of existing toilets and urinal_ valves in the Commercial/Industrial/Public sectors that use more than 1.6 (toilets) and 1.0 (urinals) gallons per flush. Low -flow showenccads could be replaced for all Commercial/Industrial/Public customers that have significant numbers of showerheads (like schools). A ULF (ultra low flow) toilet is estimated to save 15.0 gallons per day (gpd) per employee per toilet and 0.4 gpd per employee per urinal replacement. This translates to a savings of 15.4 gallons per employee per day. No savings are assumed for showerhead replacement, although showenccads can be significant water users in certain situations. This has highest benefit/cost ratio for Petaluma area alternatives with a projec(ed savings are 100 acre feet (31 million gallons) of water per year. Start Proeram In 4th Year MY 99-00). Thereafter For Next 10 vears Ultra Low -Flush Toilet Replacement. The City would implement a toilet replacement program offering rebates to customers who replace their high water -use toilets with 1.6 gallons per flush (gpi) models. Approximately 25 percent of all toilets would be replaced with rebates over a ten- year period. Implementation of this measure would create increased savings in the short term because the low -flow fixtures are installed sooner than the natural replacement rate. The natural replacement covers toilers voluntarily replaced in conjunction with bathroom remodeling. Over the long run, no total increase in savings would occur, however, since the federal Energy Policy Act mandates that only 1.6 gpf toilets carr be sold. Eventually, all toilets will be replaced with 1.6 gpf models. The estimated savings for this measure is 14.6 percent of interior use which converts to a savings of 25 acre feet (6.8 million gallons) of water per year. City of Petaluma FY 96-01 Capital Improvement Plan - Walcr System Improvements Wv TBR CONS 1 RVATION R, SOURCES & USES (IN 5000) SOURCES Water Operations Wnstewatcr Operations Wastewater Connections TOTAL USPS 7101 Admin/Enginecring/Inspection 7102 Planning and Design 7103 Land Acquisition 7104 Improvements Contingency TOTAL CURRENT 30 CAPITAL IMPROVEMENT PLAN 5 30 PRIOR YEAR 85 85 - to 5'YRCIP TOTAL YEARS IY 95-96 FY 96-97 pY 97.98 r`L' 98-99 FY 99-00. -, FV 00-01 - TOTAL, PROSECT 25 20 10 -- 30 - _ 20 .-105 105 100 - 42 32 21 -. 51 -,32 . 148 178 5 98 73 49 - ,119 - 73 - - 412 412 0 0 165 125 80 - 260 ' -- _ 125 ' 695 695 n ti j l::>E Pf2r. Q M " I � � I 30 t0 5 30 to 85 85 30 to 5 30 10 85 85 0 0 too 100 65 135 100 Soo 500 5 5 5 5 '5 25 25 0 0 165 125 80 - 200.. ;.. 125 -695 695 n ti j l::>E Pf2r. Q M " I � � I TdH: 0AMTECHWaAGREMNTSIPE WCFND.AGR 01103M7 TW 96197-39 Funding Agreement With The City of Petaluma For The Petaluma Commercial Water Conservation Program First Project Year (1996-97) This agreement is between the Sonoma County Water Agency, a body corporate and politic of the State of California (hereinafter "Agency"), and City of Petaluma, California (hereinafter "City"). RECITALS A. The City and Agency share the goal of promoting increased efficiency of water use in order to reduce operating costs, avoid or defer capital improvement costs associated with expansion of water supply and wastewater disposal systems, minimize associated environmental impacts, and meet criteria and standards of state and federal regulatory agencies. B. The Petaluma Commercial Water Conservation Program (hereinafter "Project") consists of replacing existing toilets, urinals, flushometer valves, and shower heads with new water -conserving fixtures in industrial, commercial, and institutional (ICI) facilities in the City of Petaluma over a three-year period. The Project is described in detail in the report entitled "Plan of Work, City of Petaluma Water Conservation Project, Replacement of Commercial and Institutional Toilets," dated October 1, 1996 (hereinafter "Work Plan"). C. Through joint studies, the City and Agency have determined that the retrofit of non -water -conserving fixtures located in non-residential sites is the most cost-effective water conservation investment that can be made in the City of Petaluma water/sewer service area. D. Funding for Agency's portion of costs for this project is available from allocation in the category of "Water Conservation Program," (Account No. 675108-7247) of the 1996/97 budget. E. The City and Agency do mutually desire to cooperate in the financing of said Project. The estimated total cost (over three years) is $407,000. This Agreement covers the first year of the Project, which is estimated to cost $183,333. F. Program participants (hereinafter "customers") shall be offered two options for fixture replacement: 1. Direct -install option: Water -conserving rest room fixtures shall be provided and installed free of charge by a qualified plumbing contractor. 2. Rebate option: Rebates ranging from $25 to $150 per fixture shall be paid to customers who wish to select and purchase their own toilets, urinals, or flushometers. Such customers shall be responsible for arranging installation and installation costs. Funding Agreement for the Petaluma Commercial Water Conservation Program F. The City and Agency wish to expedite implementation of said Project. AGREEMENT The Work Plan presents a 15 -task Project implementation breakdown. Detailed task descriptions are included in. Section 6.00 of the Work Plan. Primary responsibilities for the tasks, individual work items associated with each task, and a proposed timeline are listed on Table 1 in Attachment A. Additional work items and responsibilities are listed below. The City and Agency agree as follows: 1. AGENCY'S RESPONSIBILITIES A. Agency's Project Manager shall be responsible for overall administration of the Project, as described in Section 3 herein (Project Management). B. Agency shall provide consultant(s) to assist with task implementation, including, but not limited to, the following services: Provide guidance on Project administration, quality assurance and quality control (QAQC) Participate in meetings with plumbing contractors and plumbing officials Provide technical information for advertising materials Design program offer brochures and promotional material Design disposal plan for discarded fixtures Prepare feedback report Agency's consultant costs shall be paid with funds from this Project. The consultant's task responsibilities and payment provisions are covered under a separate agreement with the Agency. C. Agency shall provide shower heads to City at cost. Shower heads purchased by Agency but not used by City shall be used for other Agency programs and shall not be charged to City. It is estimated that less than 100 shower heads will be installed in ICI facilities during the first program year. D. Agency shall provide staff to carry out advertising campaign and coordinate all notices to media, contractors, vendors, and target customers. Proposed marketing plan elements are included in Section 5.40 of the Work Plan. 2. CITY'S RESPONSIBILITIES A. City shall provide input on promotional material design and program forms and approve final text. B. City shall select and purchase toilets, flushometer valves, and other water -conserving fixtures provided for direct -install customers, with the exception of shower heads. C. City shall select and hire direct -install contractor. The Agency is conducting a similar water conservation program concurrently with the City of Rohnert Park. Agency encourages the City of Petaluma and City of Rohnert Park to hire the same direct -install contractor. D. City shall require its contractor to insure and indemnify the Agency using the language identified in Attachment B for Agency insurance and indemnification requirements and shall provide evidence of such insurance and indemnification to Agency in a form satisfactory to Agency. E. Computer files provided by the City shall be MS Word- (version 6.0) or MS Excel- (version 5.0) compatible files on IBM -formatted 3.5 -inch high-density diskettes. F. City shall maintain complete and accurate records of all transactions in compliance with generally accepted accounting principles for enterprise accounting as promulgated by the American Institute of Certified Public Accountants and the Governmental Accounting Standards Board. Such records shall be available to the Agency at all reasonable times for inspection and analysis. Funding Agreement for the Petaluma Commercial Water Cansarvation Program G. City agrees to defend, indemnify, hold harmless, and release Agency, its officers, agents, and employees, from and against any and all actions, claims, damages, liabilities, or expenses that may be asserted by any person or entity, including City, arising out of or in connection with the performance of City hereunder, excluding liability due to the sole active negligence or willful misconduct of Agency. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for City or its agents under workers' compensation acts, disability benefits acts, or other employee benefit acts. In addition, City shall be liable to Agency for any loss or damage to Agency property arising from or in connection with City's performance hereunder. 3. PROJECT MANAGEMENT Lynn Hulme of the Agency has been designated as the Project Manager. The Project Manager shall be responsible for conducting the Project as specified in this agreement and the Work Plan on time and within budget. The Project Manager shall monitor Project implementation in accordance with the QAQC Plan. The Project Manager shall closely track progress and distribution of work and actual costs and provide a monthly summary report to Tom Hargis, Director of Engineering, City of Petaluma, and Randy Poole, General Manager/Chief Engineer, Sonoma County Water Agency. City and Agency staff shall closely monitor individual work efforts and costs. Such staff shall also receive the monthly summary report. City staff shall provide expense information to Agency's Program Manager biweekly to allow accurate and timely tracking of costs and work progress. City agrees to charge not more than 57 hours or $1,647 to the Project during the first Project year for administrative tasks, as shown in the Work Plan, without prior written approval from Agency's General Manager/Chief Engineer and the City's Director of Engineering. The monthly summary report shall include the following: A. Description of progress made by task number, including review of the schedule for task completion B. Comparison of actual hours spent per task with projected hours shown in the Work Plan C. Total expenditures to date for direct -install customers and rebates D. Number and type of fixtures replaced E. QAQC review and customer comments Coordination: City shall coordinate the work with Lynn Hulme (Phone: 707-547-1918; Fax: 707-524- 3782). City contact is Tom Hargis (Phone: 707-778-4303, Fax: 707-778-4437). 4. PAYMENT City and Agency agree that 90% of the Project cost shall be allocated to the City, and 10% to the Agency. Total first-year costs are estimated to be approximately $183,333. City's first year cost shall not exceed $165,000; Agency's first year cost shall not exceed $18,333. City shall deposit the lump sum of $65,000 with Agency, within 30 days of Agency's request, to cover Agency's expenses. This amount is an estimate of the total expenses incurred by Agency's staff and consultant during the first year of program implementation, less Agency's allocation of approximately 10%. Reconciliation of actual costs shall occur in December 1997, at the end of the Project Year. City shall reimburse Agency for actual costs incurred if the sum total of such costs exceeds $65,000 less Agency's 10% allocation. Expense calculations and cost reconciliation provisions are provided on Table 2 of Attachment A. Funding Agmemenl for the Petaluma Commo¢ial Water Conservation Program 5. ADDITIONAL PROVISIONS The City and Agency shall evaluate the effectiveness of the Project after the first Project Year by reviewing the consultant -prepared feedback report described in Task 15 of the Work Plan. Project modifications for subsequent years, including implementation strategy and budgeting, shall be based on the evaluation of the feedback report, by mutual agreement of City and Agency. Agency's Project Manager shall be responsible for tracking costs such that all aspects of the Project, including fixture purchase and installation, rebate payments, program administration, and program review and analysis are completed within the not -to -exceed costs listed above. If the Agency's Project Manager determines that the number of program applicants would incur costs exceeding the funding limits for the first year, applicants' names shall be placed on a waiting list for the next Project Year. Provisions for Project funding and implementation in subsequent years shall be addressed in separate agreements between the City and Agency at the beginning of each Project Year. 6. TERMINATION This Agreement may be terminated at any time and without cause by either Agency or City by written notice. Authorized costs incurred by the Agency will be reimbursed up to the date of termination, less Agency's 10 percent allocation of the total Project cost as of the termination date. MERGER This writing is intended both as the final expression of the agreement between the parties hereto with respect to the included terms and as a complete and exclusive statement of the terms of the agreement, pursuant to Code of Civil Procedure Section 1856. No modification of this agreement shall be effective unless and until such modification is evidenced by a writing signed by both parties. Funding Agreement for the Petaluma Commercial Water Conservation Program IN WITNESS WHEREOF, the parties hereto have executed this agreement as set forth below. Reviewed as to substance by Agecy: Depart nt Head Approved as to funds by Agency: Administr e Services Officer Reviewed as to form by County Counsel: Coyri Counsel City of Petaluma M (Please print name here) Title Sonoma County Water Agency La Date: Attest: County Clerk, and ex -officio Clerk of the Board of Directors Chair, Board of Directors Funding Agreement for the Petaluma Commercial Water Conservation Program 5 ATTACHMENT A Table 1. Task Description and Responsibilities Petaluma Commercial Water Conservation Program Proposed Timeline City Agency Task# Description (1996-97) Responsibility Responsibility 1 Negotiate City/Agency Agreement 1011-1/141 Prepare Draft Agreement ( X Review by legal departments I X X Conduct meetings and City Council presentation I X lAttend meetings I X X 2 (Prepare Project Administration and QAQC 1115-1/31 Plan Prepare QAQC Plan X Coordinate with consultants on RFP and material X specifications Coordinate with consultants on other X administrative tasks and processing applications Design internal forms (City and Agency) X Provide current and historical ICI water use I ( X records to Agency and Consultant Provide computer disk with addresses of ICI ( X customers to Agency lCompile ICI addresses X 3 Notify and Meet with Plumbing/Installation 11/15 -1/31 Contractors and Officials Prepare list of building industry associations, ( X plumbers, etc. JPlan, coordinate, and hold meeting X Assist with coordination and locate meeting I X facility Attend meeting X X 4 11-ine-up and Install Vanguard Sites 1/15 - 2128 Provide consultant to locate and contact 5 sites I X and help select fixtures linstall toilets and other fixtures X Analyze before and after measurements at ( X vanguard sites Follow-up with telephone calls and site visit X 5 1 Design and Implement Disposal/Recycle Plan 1115-2/281 for Old Fixtures Locate a china disposal/recycling organization X Locate a brass recycling organization X JSuggest/verify appropriate liability insurance X Design implementation plan X Implement disposal/recycling plan (ongoing) X "X" denotes task responsibility Ijh:/u1techw/agremnts1PET_TASK XLS 113197 A-1 ATTACHMENT A Table 1. Task Description and Responsibilities Petaluma Commercial Water Conservation Program Proposed Timeline City Agency Task# Description (1996-97) Responsibility Responsibility Form Volunteer Support Group Suggest potential volunteers Contact volunteers and schedule meetings Locate meeting facility Outline goals and tasks for the group )Attend meetings 7 Set Dates for Offer Window Select time of year and length of offer Determine final Project timeline Prepare RFP and Select Contractor Prepare RFP Review and comment on RFP Review legal documents Provide consultant to advise on direct -install contractor and material selection Select and hire direct -install contractor; select materials Prepare Advertising Materials and Schedule Announcements Determine overall marketing schedule Design and develop program theme, logo, brochure, and other promotional materials Write invitation letter (to be printed on city letterhead) Provide consultant for technical wording for brochure and application form Print marketing materials Write/coordinate advertising, media stories, and public service announcements Post notice on Petaluma's web page(s) +Staff promotional table at local event(s) 1/15-21281 1 1 1 1 1 1/15-3/28 10 Coordinate With and Notify Local Vendors 1/15-3/25 and Plumbers Prepare list of plumbing vendors, retail outlets, etc. Contact target customers and vendors to discuss) program (supply marketing materials) Coordinate program articles for trade newsletter and other publications. Conduct follow-up campaign as needed "X" denotes task responsibility tjh:/u/techw/agremnls/PET_TASK.XLS 1/3/97 X X K4 X X X X X r3 X X X X LI M L4 ATTACHMENT A Table 1. Task Description and Responsibilities Petaluma Commercial Water Conservation Program Proposed Timeline City Agency Task# Description (1996-97) Responsibility Responsibility 11 (Notice and Hold Kick-off Meeting with ( 3/25-4/151 Business and Institution Managers Plan luncheon or event X Prepare and contact business and institution I X managers Locate a meeting facility X lAttend the meeting X X 12 Conduct Program and Accept Applications Promote program Provide consultant to advise on marketing and program application as needed Process applications for installations and rebates 13 Perform Direct Installations and Honor Rebate Certificates Process payments for rebates and direct -install contractor Coordinate customers and contractors Conduct award ceremony and present program update at City Council Meeting Perform onsite QAQC spot checks 14 Calculate and Measure "Before and After" Water Use Compare "before and after" metered use Provide customers' bimonthly water use to Agency and Consultant Provide consultant to analyze and report on customer water use data Furnish and set up data loggers, collect data Analyze data logger data and report results 15 Prepare Participant Feedback Report Design customer satisfaction survey form lConduct telephone or direct-mail survey Conduct final recognition and award ceremony and program summary at City Council meeting Place "Thank You" ad (donated space) ICompile data from direct -install contractor and water use data. Provide consultant to prepare report including actual B/C ratio and recommendations for program improvements "X" denotes task responsibility R 9 rN X K X X tjh./ultechw/agremnts/PET_TASK XLS 1/3197 A-3 ATTACHMENT A Table 2. First Year Cost Estimates (1996-97) Petaluma Commercial Water Conservation Program Estimated Project Costs - First Year Budget Total first-year cost $ 183,333 Improvement cost (paid by City)' $ 100.000 Total less improvements $ 83,333 Agency allocation $ 18,333 Subtotal less Agency allocation $ 65,000 " Improvement cost refers to estimated cost for purchase of fixtures *" Lump -sum amount to be deposited with Agency by City for first-year financing Reconciliation of Costs: Project costs shall be reconciled in December 1997, at the end of the first project year as follows: 1. Total first project year cost (actual) shall be determined by Agency's Project Manager. 2. City shall reimburse Agency for actual costs incurred above $65,000 less Agency's 10% allocation of total first Project year cost. Agency's allocation shall not exceed $18,333. City's allocation shall not exceed $165,000. Note: Cost estimates are based on discussions between Agency and City in October and November 1996 and Project Budget figures provided in Section 9.00 of the Work Plan. tJh9u\techMagremnts\PEiwC.XLS A4 ATTACHMENT B WORDING FOR DIRECT -INSTALL CONTRACT INDEMNIFICATION Contractor agrees to accept all responsibility for loss or damage to any person or entity, and to defend, indemnify, hold harmless and release Sonoma County Water Agency, its agents and employees, from and against any and all actions, claims, damages, or disabilities, that may be asserted by any person or entity, including Contractor, arising out of or in connection with the performance of Contractor hereunder, whether or not there is concurrent negligence on the part of Sonoma County Water Agency, but excluding liability due to the sole active negligence or sole willful misconduct of Sonoma County Water Agency. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for Contractor or its agents under Workers' Compensation acts, disability benefit acts, or other employee benefit acts. INSURANCE The Contractor shall obtain insurance acceptable to City of Petaluma and the Sonoma County Water Agency from a company or companies acceptable to the City and Agency. The required documentation of such insurance shall be furnished to the City at the time Contractor returns the executed contract. The proper insurance shall be provided within ten (10) calendar days after the bidder has received the notice that the contract has been awarded and prior to the City executing the contract and issuing a notice to proceed. The Contractor shall not commence work nor shall he allow his employees or subcontractors or anyone to commence work until all insurance required hereunder has been submitted and approved and a notice to proceed has been issued. With respect to performance of work under this contract, Contractor shall maintain and shall require all of its subcontractors to maintain insurance as described below: A. Workers' Compensation Insurance with statutory limits as required by the Labor Code of the State of California. Said policy shall be endorsed with the following specific language: This policy shall not be canceled or materially changed without first giving thirty (30) days prior written notice to the Sonoma County Water Agency. B. Commercial General Liability Insurance covering bodily injury and property damage utilizing an occurrence policy form, in an amount no less than $1,000,000 combined single limit for each occurrence. Said commercial general liability insurance policy shall either be endorsed with the following specific language or contain equivalent language in the policy: 1. The Sonoma County Water Agency, its officers and employees, is named as additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this contract. 2. The inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverage afforded shall apply as though separate policies had been issued to each insured, but the inclusion of more than one insured shall not operate to increase the limits of the company's liability. 3. The insurance provided herein is primary coverage to the Sonoma County Water Agency with respect to any insurance or self-insurance programs maintained by the Sonoma County Water -Agency. FuMmB Agreement for the Petaluma Commercial Wader Conservation Program `% — ^ . �! B-1 r ,� 4. This policy shall not be canceled or materially changed without first giving thirty (30) days prior written notice to the Sonoma County Water Agency. C. Automobile Liability Insurance covering bodily injury and property damage in an amount no less than $1,000,000 combined single limit for each occurrence. Said insurance shall include coverage for owned, hired, and non -owned vehicles. Said policy shall be endorsed with the following language: This policy shall not be canceled or materially changed without first giving thirty (30) days prior written notice to the Sonoma County Water Agency. Fundmg Agreement for the Petaluma Commercial Water Consawaran Program e-2