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Home My WebLink About25F - AGMT - SCGC PARTNERSHIPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 2, 2016 TITLE: RECOMMENCED ACTION CLERK OF COUNCIL USE ONLY: _a•* r, ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 m Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the partnership agreement with the Southern California Gas Company to extend the term through March 31, 2019, and to increase the funding allocation by $34,000, subject to nonsubstantive changes approved by the City Manager and City Attorney. The California Public Utilities Commission (CPUC) authorized the Southern California Gas Company (SCG), in partnership with cities, to deliver energy efficiency programs to utility customers in their service area. The City was awarded a partnership with SCG for 2013 -2014, which was subsequently extended to March 31, 2016, The focus of the partnership is to jointly deliver energy efficiency information, training, and materials that benefit Santa Ana customers. The partnership also optimizes 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, The most recent partnership agreement ends March 31, 2016, However, the CPUC recently authorized SCG to extend the Santa Ana partnership agreement to March 31, 2019. This will enable the continuation of energy efficiency programming through the partnership, In addition, SCG has increased the total reimbursement allocation of this agreement by $94,000 for this extension period. l 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). 25F -1 Extend Partnership Funding Agreement with Southern California Gas Company February 2, 2016 Page 2 ENVIRONMENTAL IMPACT There is no environmental impact associated with extending the agreement. 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 a not -to- exceed allocation of $84,000 for the agreement extension period. Funds in the amount of $84,000 will be budgeted and available in the corresponding revenue and expenditure accounts: Revenue: Public Works Administrative Services Revenue Expense Reimbursement Account (No. 10117002 - 57006)- $84,000 Expense: Public Works Administrative Services Contract Services- Professional Expenditure Account (No. 10117601- 62300). 41AII Fre ousavi our Executive Director Public Works Agency FMIMLM /CLK APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency Exhibits: 1. Second Amendment to SCG Partnership Agreement 25F -2 SECOND AMENDMENT TO JOINTLY DELIVER THE 2013 -2014 CITY OF SANTA ANA ENERGY EFFICIENCY PARTNERSHIP PROGRAM This SECOND AMENDMENT TO THE AGREEMENT TO JOINTLY DELIVER THE 2013.2014 CITY OF SANTA ANA ENERGY EFFICIENCY PARTNERSHIP PROGRAM (this "Second Amendment "), is effective as of January 1, 2016 ("Second Amendment Effective Date "), is entered into by slid between SOUTHERN CALIFORNIA GAS COMPANY ( "SCG" or "Utility ") and CITY OF SANTA ANA. SCG and City of Santa Ana are sometimes referred to herein individually as a "Party' or collectively as the "Parties." Initially capitalized terms used but not defined herein shall have the meaning ascribed to them in the Agreement (as defined below). RECITALS WHEREAS, the Parties entered into that certain Agreement to Jointly Deliver the 2013 -2014 City of Santa Ana Energy Efficiency Partnership Program effective as of January 1, 2013, as amended by that certain First Amendment effective as of January 1, 2015 (collectively, the "Agreement "); WHEREAS, on October 28, 2015, the Commission issued Decision D,15 -10 -028 approving the continuation of the Energy Efficiency Partnership Programs, including continuation of the CITY OF SANTA ANA Partnership Program for 2016 and beyond; and WHEREAS, the Parties desire to amend the Agreement (1) to extend its term through March 31, 2019, (2) to provide an authorized budget for the 2016.2018 Program, and (3) to otherwise update the Agreement as required to reflect the extended 2016 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 2016 Program. 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, 2019, and all Direct Implementation and Marketing & Outreach activities by no later than December 31, 2018." 3. Section 12 of the Agreement is hereby deleted in its entirety and replaced with the following: "12. FINAL INVOICES CITY OF SANTA ANA must submit final invoices to Utility no later than March 31, 2019." Exhibit 1 25F -3 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 (as defined in the PIP), the Agreement shall continue in effect until March 31, 2019 unless otherwise terminated in accordance with the provisions of Section 25.2 or 30 (as defined in the PIP)." 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 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 Executive Director, Public Works Agency 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 Morals, Energy Programs Supervisor 555 W. Fifth Street, GT20B4 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 mailod, three (3) Business Days after the date the notice is postmarked; or (c) 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 may be 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. 7. Exhibit B to the Agreement is hereby deleted in its entirety and replaced with the version of Exhibit B attached to this Second Amendment, which attached version is incorporated herein by reference and made a part of the Agreement. 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 Amendment on that party's behalf has the requisite legal authority to do so. 25F -4 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. CARVALHO City Attorn y-- JO E ANDO AL ie Assistant Clty Att ney SOUTHERN CALIFORNIA. GAS COMPANY FRANK SPASARO Energy Efficiency Partnerships Manager CITY OF SANTA ANA DAVID CAVAZOS City Manager RECOMMENDED FOR APPROVAL: FRED MOUSAVIPOUR Executive Director, Public Works Agency 3 25F -5 EXHIBIT B CITY OF SANTA ANA and SOUTHERN CALIFORNIA GAS COMPANY PARTNERSHIP 2013 -2018 GOALS & PROGRAM BUDGET Natural as Savings Target: Other non - resource goals are contained in the SCG PIP in Exhibit B -2 2013 -2018 SCG Santa Ana Partnership 2013 -2018 Partnership Total Non - Incentive Budget 2013 -2015 2016 2017 2018 6 Yr Total SCG 28,500 9,500 9,500 9,500 57,000 Therms $0,000 Therms Therms Therms Therms $8,000 Other non - resource goals are contained in the SCG PIP in Exhibit B -2 2013 -2018 SCG Santa Ana Partnership 2013 -2018 Partnership Total Non - Incentive Budget $4T5—,4-76-- 2010) 2017 2018 SCG Authorized Budget Administration $0,000 $0,000 Total UtilitX Authorized Budget $277,476 Marketing & Outreach $24,000 $8,000 $8,000 Partner Authorized Bud et $168,000 $60,000 $20,000 $20,000 $20,000 2013 -2018 Total Non - incentive Program Budget $445,476 Projected Allocations for Santa Ana Partnership Authorized Budget $168,000 (1) Incentive is a part of SCG Core Program's Incentive Budget. The incentive level is $1.00 per therm for calculated measures or 80% of the equipment cost, whichever is the lesser of the two. Incentives for deemed measures are in accordance with the incentive levels for the applicable SCG Core Programs. 2013 -2018 City of Santa Ana Partnership 25F -6 2013 -2015 2010) 2017 2018 Administration $0,000 $0,000 $0,000 $0,000 Marketing & Outreach $24,000 $8,000 $8,000 $8,000 Direct Implementation $60,000 $20,000 $20,000 $20,000 (1) Incentive is a part of SCG Core Program's Incentive Budget. The incentive level is $1.00 per therm for calculated measures or 80% of the equipment cost, whichever is the lesser of the two. Incentives for deemed measures are in accordance with the incentive levels for the applicable SCG Core Programs. 2013 -2018 City of Santa Ana Partnership 25F -6