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HomeMy WebLinkAboutStaff Report 3.A 03/02/2009A 2 CITY OF PETALUII�IA, CALIFORNIA 3.A AGENDA BILL 2March , 2009 Agenda Title: Resolution Authorizing the City Manager to Execute the First Meeting Date: Amended Cooperative Agreement with the Sonoma County Water Agency March 2. 2009 for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008 Meeting Time: ❑ 3:00 PM ® 7:00 PM Category: ❑ Presentation ❑ Consent Calendar ❑ Public Hearing ® Unfinished Business ❑ New Business Department: Director: Contact Person: Phone Number: Water Resources & Michael Ban, P . Margaret P. Orr, P.E. 778-4546 Conservation 1�"N� Cost of Proposal: Agency Run Measures $252,693 Name of Fund: City Run Measures $1,078,390 Sewer/Water Total $1,331,083 Account Number: 8200-54130/8310-54130 Amount Budgeted: The FY 08-09 water conservation budget is $684,401 Recommendation: It is recommended that the City Council take the following action: City Staff recora vends the City Council approve the resolution authorizing the City Manager to execute the First Amended Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008. Summary Statement: In FY 97-98, the Sonoma County Water Agency (Agency) began charging the City of Petaluma and the other Water Contractors for water conservation programs through rates paid for water. A portion of the funds remained with the Agency and a portion was returned to the Water Contractors through a cooperative funding agreement. On May 5, 2008, the Petaluma City Council approved the "Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008;' which enabled the City to access the balance of its water conservation funds held by the Agency. The Agency subsequently requested the Agreement be amended to address an accounting error. The First Amended Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008 provides $252,693 to fund regional programs conducted from FY 2007/2008 and through FY 2009/2010 with the balance of the funds ($1,078,390) to be returned to the City to reimburse the City for City run programs. Thus, the total agreement is for $1,331,083. Attachments to Agenda Packet Item: Resolution Attachment A — First Amended Cooperative Agreement for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 3007/2008 Re iewed by Admi . Svcs. Dir: Reviewed by City Attornev: A royed y City Manager: /^ C\`, /' v Date: 6j Date: Rev. # Date Lasi Revised: File: S:\water resources R, conservation\Consrvation\City Council\March 2 2009\3008-2009 First Amended Agreement Agenda Bill Final.doc 1 CITY OF PETALUMA, CALIFORNIA MARCH 2, 2009 ►11: I '1C FOR Resolution Authorizing the City Manager to Execute the First Amended Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008 1. RECOMMENDATION: In FY 97-98, the Sonoma County Water Agency (Agency) began charging the City of Petaluma and the other Water Contractors for water conservation programs through rates paid for water. A portion of the funds remained with the Agency and a portion was returned to the Water Contractors through a cooperative finding agreement. On May 5, 2008, the Petaluma City Council approved the "Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008," which enabled the City to access the balance of its water conservation funds held by the Agency. The Agency subsequently requested the Agreement be amended to address an accounting error. The First Amended Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008 provides $252,693 to fund regional programs conducted from FY 2007/2008 and through FY 2009/2010 with the balance of the funds ($1,078,390) to be returned to the City to reimburse the City for City run programs. Thus, the total agreement is for $1,331,083. City Staff recommends the City Council approve the resolution authorizing the City Manager to execute the First Amended Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008. 2. BACKGROUND: In 1995, the Sonoma County Water Agency (Agency) commissioned a study of the cost- effectiveness of various water conservation measures that could be implemented by each water contractor. The study, entitled "Water and Wastewater Efficiency/Avoided Cost Study (September 1995)", determined the potential water savings, and economic costs and benefits of implementing Best Management Practices (BMPs) within the Agency's service area. The study lead to the development of the "Water Conservation Plan" by the Agency. The Water Conservation Plan (WCP) designated, subject to annual budget appropriations, approximately $1.5M annually, for a ten-year period (commencing FY 1997-1998), to assist the Agency's Water Contractors (Petaluma, North Marin Water District, Rolnert Park, Sonoma, Valley of the Moon Water District, Cotati, and Santa Rosa) in implementing cost-effective BMPs. 2 Under the arrangement which began in FY 97-98, funding for water conservation programs was included in the Agency's operations and maintenance fund, and charged to the water contractors through the Agency's water rates. The water conservation portion of this fund was approximately $2M annually (Petaluma's contribution to this fiord was approximately $330,000 annually). Of the $2M budgeted, approximately $500.000 was expended for regional water conservation efforts by the Agency. The remaining $1.5M was designated to assist the water contractors in implementing their water conservation programs. The instrument for accessing these funds is a cooperative funding agreement between each water contractor and the Agency. Petaluma's total entitlement to this fund, over the 10 -year period, is $2,780,083, of which $1,331,083 remains available for Petaluma's water conservation programs. The end of the 10 -year funding arrangement identified in the Agency's WCP has been reached. Funds are no longer being accumulated for the WCP. Each water contractor's water conservation program has advanced to the point where they are no longer dependent on the Agency to fund and implement water conservation programs. However, in order to access the funds remaining in the Water Conservation Plan for Petaluma, the City must execute a cooperative funding agreement (Agreement) with the Agency. The City Council approved the original agreement on May 5, 2008. Subsequently, the Agency informed the City of an accounting error which requires an amendment. When the SCWA determined the City's expenditures to date, a cost center was inadvertently omitted from the expenditure report. The majority of the cost center was comprised of washing machine rebates that were processed through SCWA. The error was discovered when the City invoiced the SCWA for the original Agreement amount. The Agency completed a draft of the amendment in late December 2008. The proposed amended Agreement, which is provided in Attachment A, includes the following key changes: • A total of $252,693 will be allocated to the Agency for regionally run programs (described below). This is up by $115,438 since this was brought to the City Council on May 5, 2008 due to an accounting error at the Agency. • Extends contract through 2010 Agency -run conservation measures under this Agreement that benefit the City include: 1. Residential Clothes Washer Rebate Program (BMP 6) 2. Commercial Clothes Washer Rebate Program (BMP 9) 3. Regional Large Landscape Water Use Survey Program 4. Regional Smart Controller Rebate Program 5. Regional Restaurant Spray Valve Program (BMP 9) 6. Regional Commercial Water Use Assessment Program (BMP 9) 7. Regional Grant Funded End -Use Study Grant Program City -ruin conservation measures funded by the balance of the funds in this Agreement include: 1. Residential Water Survey Program (BMP 1) 2. City -Owned Facilities — Irrigation System Efficiency Improvements (BMP 5) 3. City Water Conservation Plan Program a. High Efficiency Toilet (HET) Rebate Program (BMP 14) b. Smart Irrigation Controller Installation Program (BMP 5) c. Water Conservation Public Outreach Program (BMP 7) d. Plumbing Retrofit Giveaway (BMP 2) e. CII Incentive Rebates (BMP 9) f. Water Conservation Staffing (BMP 12) 3 g. Water Efficient Landscape Demonstration Gardens (BMP 5 and 7) h. Utility Billing System Upgrades i. Water Conservation Plan j. Water Conservation Ordinance Implementation (BMP 13) More detail on each program is provided in Attachment A of the Agreement. Petaluma's Water Conservation Program focuses on improving the water use efficiency of the City's existing customers and to bring all new connections online with the most efficient technology available. The program is based on the City's Water Conservation Plan as well as the California Urban Water Conservation Council's (CUWCC) Best Management Practices. As a member of the CUWCC, the City agrees to implement these BMPs as part of its water conservation program. The City's Water Conservation Plan addresses, and in many cases exceeds, the requirements of the BMPs. The CUWCC was created to increase efficient water use statewide through partnerships among urban water agencies, public interest organizations, and private entities. The Council's goal is to integrate urban water conservation Best Management Practices into the planning and management of California's water resources. Some of the City's Water Conservation Program accomplislunents to date include: • Hired a fill -time Water Conservation Coordinator relinquishing its reliance on the Agency to fulfill the duties associated with this position. • Developed a Water Conservation Plan that provides 495 million gallons of new water. The plan outlines water conservation programs, policies and measures to be implemented through build out (year 2025) of the City"s General Plan. • Developed and implemented an evapotranspiration (ET) irrigation controller pilot project and installed 73 residential ET irrigation controllers to qualified Petaluma residents and 19 ET irrigation controllers to various City parks. ET controllers utilize satellite technology to automatically adjust irrigation schedules, via satellite signal. based on local weather conditions. As a result of the controller installations, a 35% reduction in water use for the residential sites and 24% reduction for the City facilities were achieved. Cturently, ET controllers have been installed at 39 additional City owned facilities. • Developed and implemented a High Efficiency Toilet (HET) rebate prograin to replace the City's existing Ultra Low Flow Toilet (ULFT) rebate program. HET's use 20% less water than ULFT's. • Took a leading role in the City's Petaluma Green Program. • Conducted 1,232 single-family residential and 223 multi -family residential Water Wise House Calls. • Replaced 1,356 high flow, non-residential toilets with ULFTs or HETs. • Replaced 3,658 high flow, residential toilets with ULFTs or HETs. • Replaced 2,724 high flow residential washing machines with water conserving models. • Replaced 99 high flow, non-residential washing machines with water conserving models. • Installed 89 pre -rinse spray valves in City restaurants. • Conducted waterless urinal pilot project. Installed 142 waterless urinals at various public locations. 4 • Conducted 32 audits in the commercial, institutional and industrial setting and obtained over 47 million gallons per year of potable water offset from implementation of various water saving devices and design changes. • Completed large landscape water audits on various City parks. • Measured turf and non -turf areas for 608 of the City's dedicated irrigation accounts and developed water budgets for each account. Provided feedback to each user for each billing cycle causing land owners to respond with request to their contract landscapers for more efficiency. • Designed and constructed a water -efficient demonstration garden for City Hall and the front of the Water Field Office. • Coordinated landscape water budget seminar for City staff and local landscape professionals. • Coordinated restaurant water and energy savings seminar for City staff and local restaurant operators. • Implemented a water waste ordinance. • The conservation team has responded to 372 water waste reports to date. The team investigated items as simple as a broken irrigation head to items as complex as a pool auto -fill mechanism failure. The team provided a helpful approach and the public responded positively. • Assisted in the development and presentation of a Qualified Water Efficient Landscaper (Q WEL) training program for local landscape contractors. • Continued water conservation public outreach program, including a first place award wimiing fair display, numerous public speaking engagements, ads at the local theatre, water conservation messages on local buses, newspaper ads and monthly articles in the Argus Courier and valuable water conservation information on the City's web page, as well as a new video explaining the contents of a Water Wise House Calls. 3. DISCUSSION: Alternatives for the cooperative funding agreement include: Alternative 1 — Take no action. City Staff does not recommend this alternative as it would not allow City to utilize its water conservation funds. Alternative 2 — Take other action as directed by the City Comicil. Alternative 3 — Approve resolution authorizing City Manager to execute an amended cooperative funding agreement with the Agency. 4. FINANCIAL IMPACTS: This amended agreement provides funding to Petaluma in the amount of $1,331,083. As required by the Agreement, $1,078,390 of these funds will be immediately distributed to the City to find the City's water conservation programs. The remaining $252,693 will remain with the Agency to support Agency -run regional water conservation measures that benefit the City through June 30, 2010. The City of Petaluma has offset potable water demands by approximately 272 acre-feet annually through its water conservation programs. The City's goal is to create 495 million gallons (161 5 G� additional acre feet) of potable water offset by 2025 through implementation of the City's Water Conservation Plan and Agency regional programs. These funds will help the City continue to implement its water conservation programs and improve the water -use efficiency of its water customers. The City is eligible for funding from the State Water Board for State Revolving Loans because it meets the requirements of the Best Management Practices as described by the California Urban Water Conservation Council. The City can continue to grow because the new water source that water conservation supplies is available. City Staff recommends the City Council approve the resolution authorizing the City Manager to execute the First Amended Cooperative Agreement with the Sonoma County Water Agency for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008. 6 RESOLUTION AUTHORIZING CITY MANAGER TO EXECUTE THE FIRST AMENDED COOPERATIVE AGREEMENT WITH THE SONOMA COUNTY WATER AGENCY FOR FUNDING AND ADMINISTRATION OF THE CITY OF PETALUMA WATER CONSERVATION PROGRAM FUNDED IN FISCAL YEAR 2007/2008 WHEREAS, Petaluma and the Sonoma County Water Agency (Agency) share the goal of promoting increased water use efficiency; WHEREAS, Petaluma and Agency are signatories to the Memorandum of Understanding (MOU) Regarding Urban Water Conservation in California as governed by the California Urban Water Conservation Council (CUWCC). WHEREAS, the City of Petaluma has contributed to the Sonoma County Water Agency's Water Conservation Plan (WCP) through the purchase of water from the Agency; WHEREAS, Petaluma's share of the funds available in the Agency's Water Conservation Plan is $1,331,083; WHEREAS, the City of Petaluma operates an extensive water conservation program with current sustained water savings of 272 acre-feet annually; WHEREAS, the City of Petaluma desires to use its share of the funds in the Agency's Water Conservation Plan to fund its water conservation programs: WHEREAS, the City of Petaluma and Agency have drafted the First Amended Cooperative Agreement for Funding and Administration of the City of Petaluma Water Conservation Program Funded in Fiscal Year 2007/2008 which provides $1,078,390 in direct funding to the City for its water conservation programs, and $252,693 in funding for water conservation programs run by the Agency which benefit Petaluma; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of Petaluma. 2. The City Manager is hereby authorized and directed to sign the First Amended Cooperative Agreement with the Sonoma County Water Agency for funding and administration of the City of Petaluma Water Conservation Program funded in Fiscal Year 2007-2008. aj . 1 it ��' �. • � ON 4, 1 1; IN FISCAL YEAR 2007/2008 jch: \\kilesen,er\dan\fedi\agreenienls\0607-23a dac version: 12/10/2008 11:00:00 ANI TW 06/07-23A FIRST AMENDED COOPERATIVE AGREEMENT FOR FUNDING AND ADMINISTRATION OF THE CITY OF PETALUMA WATER CONSERVATION PROGRAM FUNDED IN FISCAL YEAR 2007/2008 This Agreement is between the Sonoma County Water Agency, a body corporate and politic of the State of California (hereinafter "Agency"), and the City of Petaluma (hereinafter "City"). RECITALS A. City and Agency share the goal of promoting increased water use efficiency 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 the criteria and standards of state and federal regulatory agencies. B. The Restructured Agreement for Water Supply ("Agreement for Water Supply") authorizes Agency to implement and fund water conservation measures that are cost-effective and will reduce water demands on Agency's water transmission system. C. City and Agency are signatories to the Memorandum of Understanding Regarding Urban Water Conservation in California as governed by the California Urban Water Conservation Council ("CUWCC MOU"). D. The CUWCC MOU identifies water conservation Best Management Practices ("BMPs") that achieve long-term reductions in per capita water demand to improve supply reliability, reduce the impact of short-term water shortage conditions, and provide a more accurate basis for future water management planning efforts. E. Agency and City have cooperated to develop, implement, and fund a water conservation program and City desires Agency's continued assistance in developing and implementing City's water conservation measures as described in Exhibit A, which is an integral part of this Agreement. F. City is requesting a total contribution from Agency of $1,331,083 consisting of funding and in-kind services and materials for implementation and administration of City's water conservation program. G. Funding for City's water conservation program is available from allocation in the category of "Water Conservation Program" (Account No. 675744-7247) within Agency's 2007/2008 budget. H. Additionally, this Agreement includes grant funding pursuant to the California Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Act (Chapter 8 [commencing with Section 791501 of Division 26 of the California Water Code) for Weather -Based Irrigation Controller Programs. I. City, North Marin Water District, City of Rohnert Park, and City of Sonoma, in order to obtain such grant funding, requested Agency to enter into a Memorandum of Understanding with East Bay Municipal Water District ("EBMUD MOU") as sponsor for the Weather -Based Irrigation Controller Cooperative Agreement for Funding and Administration of the Gly 11'd1rr Conservahon F..grdm Funded m F,AA Yez. 2007/2008 Program (Agency's "Smart Controller Program'). Agency signed the EBMUD MOU on June 13, 2005 and the EBMUD MOU was executed on October 14, 2005. J. Agency and City do mutually desire to cooperate in the implementation and financing of City's water conservation program. K. Agency and City first entered into this Agreement on June 17, 2008. L. This First Amended Agreement re -allocates $115,438 in funds from City -Run Measures to Agency - Run Measures. M. This First Amended Agreement supersedes all previous agreements and amendments. AGREEMENT City and Agency agree as follows: 1. RECITALS A. The above recitals are true and correct. 2. DEFINITIONS A. For the purposes of this Agreement the following terms and definitions shall be used: 1. Measures: Components of the Program as identified in Exhibit A. 2. Consultant: Consultant hired to perform water conservation services. 3. Contractor: Licensed contractor lured to perform contractor work. 4. Particivants: City -approved water or wastewater customers who apply to participate in individual Measures as described in Exhibit A. 5. Program: Collectively, the water conservation Measures described in Exhibit A and related activities City and Agency have agreed to perform in cooperation that may be funded by Agency under this Agreement. 6. Agencv Representative: Agency staff assigned to perform Agency's responsibilities. 7. Citv Representative: City staff assigned to perform City's responsibilities. 8. Regional Program Measures: Water conservation Measures described in Exhibit A that are implemented regionally by Agency. 9. Aaencv-rm1 Program: Water conservation Measures described in Exhibit A and implemented for City by Agency. 10. Citv-run Program: Water conservation Measures described in Exhibit A and implemented by City. 3. COORDINATION A. City shall coordinate work with Agency's Representative. Contact information: Agency Agency Representative: Brian Lee, or assigned personnel PO Box 11628 Santa Rosa, CA 95406 Phone: 707-547-1918 Fax: 707-524-3782 Email: brianl©scwa.ca.gov City City Representative: David Iribarne, or assigned personnel 202 N. McDowell Blvd. Petaluma, CA 94954 Phone: 707-778-4591 Fax: 707-778-4508 Email: diribarne@cLoetaluma.ca.us Conpemh, a Agreement mr Pundmg and Admimstranon of the City Water Comervahnn Pmgnw Funded in Fiscal Year?OOJ/300A 2 4. CITY'S RESPONSIBILITIES Assist Agency with administration of City -run Program as follows: A. Direction: Provide Agency Representative with requested policy and/or direction during Program. B. Workspace: Provide an ergonomically correct workspace(s) for Agency Representative including a desk, computer, and dedicated telephone. C. Meeting Facilities: Provide meeting facilities as necessary. D. Marketing Data: Provide Agency Representative with access to water customer billing data to be used for marketing various water conservation Measures. E. Applicant Review: Review the Agency -submitted list of applicants requesting rebates/ incentives to determine if applicant is a qualified Participant to receive a rebate/ incentive. F. Insurance and Indemnification for Contractors: Prior to City's request for payment from Agency for services performed by City's Contractor, City shall require its Contractor to insure and indemnify the Agency using the language identified in Exhibit B and shall provide evidence of such insurance and indemnification to Agency in a form satisfactory to Agency. G. Insurance and Indemnification for Consultants: If City requests payment from Agency for services performed by City's Consultant, City shall require its Consultant to indemnify, defend and insure Agency to the same extent City requires its other consultants to indemnify, defend, and insure City. H. Ouarterly Status Reports: Provide Agency Representative with quarterly status reports of all City -run Measures, including work progress and a complete cost accounting by Measure. Quarterly status reports shall be submitted with quarterly invoices. 1. CUWCC Online BMP Report: Annually enter BMP data on CUWCC online forms, as required by CUWCC, for City -run Measures and provide Agency with a copy of the BMP report. J. Record Keeping: 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 Agency at all reasonable times for inspection and analysis. 5. AGENCY'S RESPONSIBILITIES A. Coordination: Coordinate, document, and report on the Measures that Agency performs, including management, administration, budget, and follow-up of the Measures described in Exhibit A, and respond to incoming calls from City customers, as needed. B. Collateral Materials: Design and produce Program brochures and applications, as applicable and approved by City. C. Contract Administration: Administer contracts with Consultnits and Contractors hired by City or Agency. Review, verify, and forward to City payment requests from Consultants and Contractors and rebates/ incentives from Participants. D. Regional Programs: Administer Regional Program Measures as described in Exhibit A. E. Ouarterlv Reports: Prepare quarterly reports summarizing status of Measures completed by Agency and submit the report to City and to Agency's General Manager/ Chief Engineer. eooperairve Agreement for rundmg and Admmisvzoon of the cny water conservation Program runded in riscai Year 2007/2008 F. CUWCC Online Ren_ orting: Annually enter BMP data on CUWCC online forms for Agency - run Measures. 6. FUNDING A. Maximum Obligation: Agency's maximum obligation of services and funding under this Agreement shall not exceed $1,331,083, and is estimated to be appropriated as follows: 1. Agency -rim Measures: Estimated value of services and materials provided by Agency: $252,693, 2. Cih/-nm Measures: Balance of available funding that may be paid directly to City for City -run Measures: $1,078,390. Direct payment will be made as follows: a. Pavment in Advance: Upon execution of this Agreement, City shall invoice Agency with an invoice clearly marked with "City of Petaluma, Funding and Administration of Water Conservation Program Funded in Fiscal Year 2007/2008, Project/Task No. 7156-15 and Account No. 675744-7247." Upon receipt of the invoice Agency will remit to City$1,078,390. B. Grant Funds for Weather -Based Irrigation Controller Program: 1. Agency shall have no obligation to provide funding for the Weather -Based Irrigation Controller Program under this Agreement except to the extent Agency directly receives or is able to provide grant funding from EBMUD. City's right to receive grant funds for the Weather -Based Irrigation Controller Program under tlus Agreement are expressly limited to a maximum of $74,528 received from EBMUD. 2. City shall invoice Agency quarterly for reimbursement of expenses incurred by City for the Weather -Based Irrigation Controller Program. Invoices submitted to Agency by City shall include a complete cost accounting pursuant to Exhibit C, and be clearly marked with "City of Petaluma, Funding of Water Conservation Program Funded in Fiscal Year 2007/2008, Project/Task No. 2319-25, and Account No. 675744-7247." Upon receipt, review, and approval of each invoice, Agency will invoice EBMUD for the grant funds and reimburse City for its costs as authorized herein and itemized in said invoice(s) when reimbursement funds have been received from EBMUD. 3. Funds will be distributed to City, North Marin Water District, City of Rohnert Park, and City of Sonoma on a first come -first served basis until depletion of funding. Agency is not obligated to provide a minimum allocation of funds to City, North Marin Water District, City of Rolnert Park, or City of Sonoma. 7. ADDITIONAL REQUIREMENTS A. Authority to Amend Agreement Changes to the Agreement may be authorized only by written amendment to this Agreement, signed by both parties. Agency's General Manager/Chief Engineer and City's City Manager are authorized to amend the Agreement provided amendments do not cumulatively increase the total cost to Agency by more than $25,000 and do not substantially change the scope of work, including amendments to allow the City of Petaluma to participate in additional Regional Programs. B. No Waiver of Breach: The waiver by Agency of any breach of any term or promise contained in this Agreement shall not be deemed to be a waiver of such term or promise or any subsequent breach of the same or any other term or promise contained in this Agreement. Conperahvr Agreemem for rundmg end Administration of dle Gly Rater Conwrvnhon Program Funded u, F�,M Tear 2007/2008 4 C. Construction: To the fullest extent allowed by law, the provisions of this Agreement shall be construed and given effect in a manner that avoids any violation of statute, ordinance, regulation, or law. The parties covenant and agree that in the event that any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby. City and Agency acknowledge that they have each contributed to the making of this Agreement and that, in the event of a dispute over the interpretation of this Agreement, the language of the Agreement will not be construed against one party in favor of the other. City and Agency acknowledge that they have each had an adequate opportunity to consult with counsel in the negotiation and preparation of this Agreement. D. No Third -Party Beneficiaries: Nothing contained in this Agreement shall be construed to create and the parties do not intend to create any rights in third parties. E. Applicable Law and Forum: This Agreement shall be construed and interpreted according to the substantive law of California excluding the law of conflicts. Any action to enforce the terms of this Agreement or for the breach thereof shall be brought and tried in the County of Sonoma. F. Captions: The captions in tlis Agreement are solely for convenience of reference. They are not a part of tlis Agreement and shall have no effect on its construction or interpretation. G. 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. 8. MUTUAL INDEMNIFICATION A. Each party shall defend, indemnify, hold harmless, and release the other, 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 the parties, arising out of or in connection with the negligent performance or willful misconduct of the indemnifying party arising out of or in connection with this Agreement; provided, however, that a party shall not be entitled to indemnification under this section for any actions, claims, damages, liabilities, or expenses arising out of that party's gross negligence or willful misconduct. 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. 9. TERM OF AGREEMENT A. This Agreement shall remain in effect until depletion of available funds as specified in the Agreement and detailed in Exhibit A, unless terminated earlier in accordance with the terms herein. 10. TERMINATION OF AGREEMENT A. This Agreement may be terminated by either party for any reason upon thirty calendar days' written notice. Agency's right to terminate may be exercised by Agency's General Manager/Chief Engineer. Cnopemdve Agrtw�ment for Fundmg and Adm ,,trahon of the otyNaterConsenatmn1'mgram Pu nded mIlscai fear]00'/1009 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as set forth below. City of Petaluma Reviewed as to substance: Department Head Reviewed as to funds: Administrative Services Director Reviewed as to form: City Attorney Approved as to form: Risk Manager City of Petaluma By: City Manager Date: Attest: City Clerk Sonoma County Water Agency Reviewed as to funds: Agency's Division Manager - Administrative Services Sonoma County Water Agency By: General Manager/ Chief Engineer Date: Cooperative Agreement for Funding.md Admmistratmn of the Gtv %Vater Cmavrvnhnn Program Funded to N,aal Year 200-/1008 6 EXHIBIT A Water Conservation Program Summary Agency -Run Measures to be Funded under Paragraph 6.A.1 of this Agreement Measure 1: Regional Residential and Commercial Clothes Washer Rebate Program Residential Project Task Number = 7156-6 Commercial Project Task Number = 7156-9 1. Residential Clothes Washer Rebate Program Measure (BMP 6). Agency will coordinate Measure with the rebate program Contractor. Agency will send list of applicants to City for approval/ denial. Agency will coordinate rebates paid with Proposition 50 grant funds. 2. Commercial Clothes Washer Rebate Program Measure (BMP 91. Agency will coordinate with California Public Utilities Comnussion (CPUC) and its Consultant which will market and implement the Measure. Measure 2: Regional Large Landscaue Water Use Survey Program (BMP 51 Project Task Number = 7156-5 City will participate in the Agency's Regional Large Landscape Water Use Survey Program Measure. Agency will offer surveys and will perform approximately 40 large landscape water use surveys. The large landscape water use survey includes measurement of landscape area, measurement of total irrigable area, irrigation systems check, distribution uniformity analysis, development of irrigation schedules and Participant survey report. Agency will provide City with a copy of Participant survey reports. Measure 3: Regional Smart Irrigation Controller Rebate Program Project Task Number = 7156-5 City will participate in the Agency's Regional Smart Irrigation Controller Rebate Program Measure. Agency will offer rebates for Smart Irrigation Controllers and coordinate with East Bay Municipal Utilities District and its Consultant, which will manage and implement the California Department of Water Resources grant program and funding. Agency will invoice EBMUD for reimbursement from grant on behalf of City. Measure 4: Regional Restaurant S_vrav_ Valve Program (BMP 9) Project Task Number = 7156-9 City will participate in the Agency's Regional Restaurant Pre -Rinse Spray Valve Program Measure. Agency will coordinate program with California Urban Water Conservation Council (CUWCC) and its Contractor, which will install pre -rinse spray valves at approximately 20 sites in City service area. Agency will pay CUWCC an estimated $50 per spray valve. Cooperahce Agrtwment for Funding and Adtmmst,mnv of the Gt, \Vater Conservation Program Funded in Frraal Year 2007/2008 A-1 Measure 5: Regional Commercial Water Use Assessment Program (BMP 9) Project Task Number = 7156-9 City will participate in Agency's Regional Commercial Water Use Assessment Program Measure, and be a participant of the Sonoma County Green Business Program (GBP) by authorizing the Agency to provide $2,000 to the GBP to share the expense of offering the GBP in the City's service area. Agency will market and coordinate the assessments with Consultants, resulting in an evaluation of all water - using apparatus and processes and a Participant report identifying recommended efficiency measures and their expected payback period. Agency will provide City with a copy of Participant reports. The assessment will assist Participants to meet the water conservations requirements of the GBP. Measure 6: Regional Grant -Funded End -Use Studv Grant Program Project Task Number = 7156-1 City will participate in Agency's Regional Grant -Funded End -Use Study Grant Program Measure. Agency will coordinate program with Consultant. Program will study water usage of 15 residential Participants in City's service area. City will provide necessary Participant data for statistical use. City -Run Measures to be Funded under Paragraph 6.A.2 of this Agreement Residential Water Survev Program Measure (BMP 11 Project Task Number = 7156-15 City will implement an in-house WaterWise HouseCall Program Measure. City will perform a site evaluation of residential indoor and outdoor water -using fixtures and provide a report with a list of water savings recommendations to Participants. Citv-Owned Facilities - Irrigation Svstem Efficiencv Improvements (BMP 51 Project Task Number = 7156-15 City will evaluate all City -owned parks and facilities for water efficiency and retrofit or upgrade as necessary to achieve cost-effective water savings. Upgrades may include irrigation system repairs, turf removal, installation of Smart irrigation controllers, fixture upgrades, and other water conservation practices. Citv Water Conservation Plan Program Measure City will implement programs under the City's Water Conservation Plan. Program measures may include, but are not limited to, the following: 1. High Efficiencv Toilet (HET) Rebate Program Measure (BMP 14) Project Task Number = 7156-15 City will offer a rebate for the installation of HETs for Participants. Rebate amount will be determined by City. 2. Smart Irrigation Controller Installation Program Measure (BMP 5) Project Task Number = 7156-15 City will select and lure Contractor to distribute and install Smart Irrigation Controllers at potable water Participant properties in coordination with the Agency's Regional Smart enorerame Ageeennmt for Funding and mtv„m, C....r,, enriun rmgr„m r.nded in ns,„ i vr,,, 2017 /2008 A-2 Controller Grant Program Measure. City will provide Participant data to Agency for statistical purposes as required by grant. 3. Water Conservation Public Outreach Program Measure (BMP 71 Project Task Number = 7156-15 City will promote water conservation through City's website, media, events, and presentations. 4. Plumbing Retrofit Giveawav (BMP 2) Project Task Number = 7156-15 City will provide water -efficient fixtures to single-family residence and multi-famIly residence accounts. 5. CII Incentive Rebates (BMP 91 Project Task Number = 7156-15 City will provide incentives for CII customers to implement water efficient measures as described in the Agency's Regional Commercial Water Use Assessment Program Measure 5 above. 6. Water Conservation Staffine (BMP 121 Project Task Number = 7156-15 City will pay the salary of City staff directly responsible for implementing the measures of this Agreement 7. Water Efficient Landscape Demonstration Gardens (BMP 5 and 7) Project Task Number = 7156-15 City will develop and install water efficient demonstration gardens. S. Utility Billine System Upgrades City will pay for upgrades to new utility billing software to support accurate and efficient reporting of BMP information. 9. Water Conservation Plan City will develop a comprehensive Water Conservation Plan. The Plan will evaluate and make recommendations on a wide range of water conservation measures using the DSS Model, including new development standards, best management practices, and indoor and outdoor measures. The Plan will be submitted for review and approval by the City Council. 10. Water Conservation Ordinance Implementation (BMP 13) City will perform inspections to implement requirements of new development and landscape standards and other related water conservation measures as specified in the City's Water Conservation Ordinance. Coopemiae Agreement for funding and Admmis[,atmn of the Giy Water C..s,,,aoon Program Fo.ded io F,,,,] Yunr 2007/2(108 A-3 EXHIBIT B Wording for City's Contractor(s) INDEMNIFICATION Contractor agrees to accept responsibility for loss or damage to any person or entity, including Sonoma County Water Agency and City of Petaluma, and to defend, indemnify, hold harmless, and release Agency, City, or their respective officers, agents, and employees, from and against any actions, claims, damages, liabilities, disabilities, or expenses, that may be asserted by any person or entity, including Contractor, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Contractor hereunder, whether or not there is concurrent negligence on the part of City or Agency, but, to the extent required by law, excluding liability due to conduct of City or 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 benefits acts, or other employee benefit acts. INSURANCE The Contractor shall obtain insurance acceptable to City of Petaluma and Sonoma County Water Agency from a company or companies acceptable to the City and Sonoma County Water 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: 1. This policy shall not be canceled or materially changed without first giving thirty (30) days prior written notice to the City of Petaluma and 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 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 City of Petaluma and Sonoma County Water Agency, their officers, agents, and employees, are 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. Co.re,h,, Agreement (or FundmE and Ad nnumnahou of the Gly Water Conservation PmFrnm Funded in Pascal %ir'_or/2008 B -I 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 additional insured with respect to any insurance or self-insurance programs maintained by the additional insured. 4. This policy shall not be canceled or materially changed without first giving thirty (30) days prior written notice to the City of Petaluma and 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: 1. This policy shall not be canceled or materially changed without first giving thirty (30) days prior written notice to the City of Petaluma and Sonoma County Water Agency. cooperzmve Agreement for Funding and Administration of the Gly A'sier Conservation Program Funded in fiscal year 1007/2008 B-2 EXHIBIT C Grant and Rebate Amounts Agency will reimburse City according to the following rates to the extent that State Grant funds are provided to Agency, per Section 6.13.2 of this agreement. State Grant Reimbursement Amounts Customer Rebate Amounts 75% rebate on the purchase price of controller (actual price of hardware paid by customer) 100% rebate on signaling fees (For homes only) Up to 12 active stations $168 per controller Up to $300 per controller 13 to 24 active stations $577 per controller Up to $700 per controller Up to $150 per Up to S150 per controller controller 25 or more active stations $919 per controller Up to $1,100 per controller Up to S150 per controller Cooreratrve Agreement for Fandmg and Admuurtrabon of the Gy{Vater Comer.abon Program Funded in Fm al Year 2007/21108 C-1 i �