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HomeMy WebLinkAbout6.3 Energy Improvementsor 19 82 /ii � 111 DATE: TO: FROM: STAFF REPORT CITY COUNCIL June 19, 2012 Honorable Mayor and City Councilmembers Joni Pattillo City Manager""' CITY CLERK File #600 -30 SUBJECT: Energy Services Contract for Energy Related Improvements to City of Dublin Facilities Prepared by: Roger Bradley, Assistant to the City Manager EXECUTIVE SUMMARY: The City Council will receive a report on a comprehensive energy audit conducted by Chevron Energy Solutions, and will consider an Energy Services Performance Contract with Chevron Energy Solutions to implement the recommended efficiency improvements from the energy audit, which is a proposed next phase in the City's ongoing efforts to reduce energy consumption and develop long -term cost savings through increased energy efficiency. FINANCIAL IMPACT: The total project cost is $7,430,976. The project study identifies that the full cost of improvements including interest can be offset through estimated energy savings. As discussed later in this report Staff is recommending that the project be funded through a combination of Lease Financing and Internal Service Fund reserves. RECOMMENDATION: Staff recommends that the City Council adopt a Resolution that: 1) approves an Energy Service Contract with Chevron Energy Solutions Company, a division of Chevron U.S.A. Inc., and an associated financing contract, for the implementation and funding of certain energy related improvements to City facilities as authorized by California Government Code Sections 4217.10 through 4217.18; 2) finds that the cost to the City to implement the energy related improvements per this energy service contract will be less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City in the absence of purchasing the energy improvements; 3) finds that it is in the City's interests to enter into a financing agreement for the energy improvements and that the payments made under that agreement will be offset by the savings to the City arising from the improvements; 4) accepts the Lease terms presented by US Bank and authorizes Staff to negotiate the final terms and amount to be financed; and 5) authorizes the City Manager to execute the Agreements in substantially the form presented to the City Council. Page 1 of 6 ITEM NO. 6.3 Submitted By ~' Assistant to the City Manager DESCRIPTION: Submitted By Administrative Services Director Reviewed y Assistant City Manager In order to curtail the high cost of energy and to promote greater sustainability within the City, the City Council approved an agreement with Chevron Energy Solutions (Chevron ES) in May 2011 to conduct an energy audit of all City facilities. The audit examined the consumption of energy associated with the City's municipal operations and provides recommendations for projects that incorporate energy conservation measures as well as renewable energy options. Specifically, the Chevron ES evaluation covered the following types of energy efficiency and alternative energy measures: • Lighting fixtures and controls; • Building automation and controls; • Air handling systems; • Equipment modifications; • Heating, cooling, and ventilation (HVAC) replacement and /or upgrades; • Streetlighting technologies; • Alternative energy production including photovoltaic systems and fuel cells; and • Water and irrigation systems. Chevron ES completed the audit of the City's facilities and has provided the City with a proposed Energy Action Plan, which includes a detailed implementation strategy highlighting those energy efficiency upgrades and renewable energy production projects that could be effectively implemented (i.e., audit identifies those projects that generate sufficient cost savings to justify their implementation). After completing the audit and providing the City with the Energy Action Plan, Chevron ES also developed a scope of work to design and build the proposed projects and has evaluated options for funding and implementing the scope of work. Further, the analysis of the cost of the program indicates that over a 15 year period that the savings from the energy upgrades exceed the cost of the program; i.e., there would be no negative impact to the City budget. During the period of the financing, the City would pay less in energy costs; however it will also have annual lease payments. The 15 year period is used based on a reasonable allocation of the life of the improvements. In the case of the solar photovoltaic systems the Consultants advise that the actual life would be expected to extend an additional 5- 10 years. Energy Action Plan It is anticipated that the proposed Energy Action Plan (EAP) and associated improvements will result in an expected annual net savings to the City of over $3.4 million in the first five years and approximately $14.8 million dollars over 25 years. In addition, the plan would provide an important opportunity for the City of Dublin to implement measures that not only reduce energy consumption but also reduce GHG emissions within the community. Eight photovoltaic electricity production (solar) installations are proposed as part of the EAP at the following locations: Civic Center; Library; Shannon Community Center; Senior Center; all 3 Fire Stations; and Valley High School (Stager Gym). These installations will generate more than 1 MW of solar energy at all sites combined, and includes a display monitor to be placed at the Page 2 of 6 Civic Center and Valley High with a link to the City website to allow for public viewing of real time tracking of production, savings and environmental benefits. The solar arrays will be a combination of solar shade structures at the Civic Center, Library, Shannon Community Center, and Valley High with roof mounted solar installations at the remaining facilities. Attachment 1 provides an illustration of how a shade structure would look within the Civic Center parking lot. The project would require that many of the trees within the parking lot where the solar structures are proposed to be installed would be removed. Should the City Council decide to proceed with implementing the EAP, Staff would arrange to have these trees either transplanted or replaced with new trees at other locations within the City at a rate of 3 to 1 (3 new trees for every 1 removed). While it may seem counterintuitive to remove trees to install solar shade structures, ground mounted arrays, as opposed to their placement on the roof, allows for a much larger solar array to be installed. These arrays would allow the City to have a facility that generates almost enough energy to meet its consumption needs. The array proposed for the Civic Center parking lot would generate more than 400,000 kWh of clean electricity annually, which would reduce the City's carbon footprint equivalent to more than 60 acres of pine forest. The detailed project scope is included within Attachment 2. In addition to the renewable energy provided by the project, the scope also includes multiple energy efficiency measures at various sites. The energy efficiency scope includes: HVAC upgrades at the Civic Center and Library to install variable drive motors so that air flows into the facilities as needed instead of at a constant rate; replacement of the pool pump and upgrade of the pool filtration system at the Swim Center. The project will also address interior and exterior lighting upgrades at City facilities, including occupancy sensors where appropriate; installation of irrigation control devices to prevent overwatering and water loss at City parks; water fixture replacements. The plan will upgrade all City streetlights by replacing the City's high pressure sodium cobra head lighting fixtures with a light emitting diode (LED) lighting technology. Decorative street lights are in use in Assessment District 1999 -1 (Eastern Dublin and Clifden Court) as well as lighting on Village Parkway. There are currently limited options to retro -fit these fixtures. As new options become available in the market there may be opportunities to examine in the future decorative light LED fixtures. T streetlighing that will be replaced by LED's include 3,157 pole mounted cobra head fixtures. Chevron ES projects that EAP implementation would provide immediate and long term benefits to the City of Dublin including: • Providing 1 MW of clean renewable energy; • Reducing energy consumption of 2,723,849 kWh per year; • Utility /maintenance expense reductions of over $560,000 per year; • Over $14.8 million in savings to the City over 25 years; • Capturing $277,795 in one -time rebates; • Capturing $446,599 in California Solar Initiative incentives; • Savings of over $67,000 in water costs annually without estimating increases; and • Reduction of 1,920 metric tons of greenhouse gas emissions within the City annually. The EAP, which has been developed and refined over the last year, delivers an outstanding opportunity for Dublin to realize water and energy savings, general fund savings, and a reduction in GHG emissions within the community. Page 3 of 6 Energy Services Contracting Chevron ES has presented a contracting /financing option for the City to pay for the proposed EAP known as an Energy Services Contract (ESC). Under an ESC, the City would have a guaranteed cost agreement whereby the City is protected from any cost overruns from the construction /installation of the improvements, and if the City elects to make annual payments, the energy savings included within the EAP would also be guaranteed. An ESC allows a city to contract with an Energy Service Company (ESCO), in this case Chevron ES, for energy conservation projects if the ESCO can guarantee that the City will receive the economic benefits associated with the recommended conservation measures. Performance contracting is recognized by many state and local governments as a method of saving money for government entities. This method of contracting uses the private sector contracting community to retrofit existing buildings and facilities to replace energy consuming devices such as lights, heating & air conditioning systems, etc. with more efficient devices and thereby reduce the costs of energy. Locally, Staff is aware that the cities of Concord, Benicia, and Antioch have executed similar contracts, and the City of Pleasanton is at a similar stage as the City of Dublin in exploring an ESC. Under the ESCO arrangement, the City would not be required to initially contribute funding for the capital cost of any of the projects implemented. Chevron ES and a financing company would pay for all capital costs as well as the cost to design the project. Specifically, the construction costs for the project and the value added service of administration, design, and profit of Chevron ES are built into the total project costs which would then be repaid with interest over time. The most common form of financing for public entity performance contracting is the tax - exempt municipal lease which provides for the performance contract to be treated as an operating expense instead of debt. Additionally, Chevron ES can provide a performance guarantee, in exchange for an annual payment from the City, that would guarantee that the improvements will generate the estimated utility savings to pay for the improvements as forecast. After project implementation, and if the City elects to utilize the performance guarantee, Chevron ES would annually measure and verify the actual savings against the guaranteed savings. If the energy savings do not occur, then Chevron ES would reimburse the City for the amount of the shortfall. The design of the project is intended to result in annual improvement costs that are offset by the projected savings garnered from the energy- efficiency and renewable energy improvements. After pay off of the lease obligation, the City would then realize the full energy savings through reduced utility costs. It is worth noting that the agreement with Chevron ES for design and construction of the projects contains an important difference from the City's standard public project construction agreements. During negotiations with Chevron ES, it became clear that Chevron ES would require that the City agree to either: 1) mandatory and binding arbitration of any disputes arising out of the Agreement, or 2) to mandatory, but non - binding mediation of disputes and a waiver of its right to a jury trial in any litigation that might occur after such non - binding mediation. Chevron ES representatives indicated that if the City did not agree to one of these two options, then Chevron ES would be unable to enter into an agreement with the City. In consultation with the City Attorney, Staff concluded that while neither alternative was ideal, the mediation and waiver of jury trial was the better of the two options. Financing As authorized by the City Council on May 15, 2012, Chevron Energy Solutions coordinated a request for lease purchase financing for the projects. Thirteen banks and leasing companies were sent materials requesting that they submit a proposal. A total of four financing entities provided responses to the request (US Bank, Bank of America, Green Campus Partners, and Page 4 of 6 Municipal Finance Corp.). The fixed rates offered ranged from 2.66% to 3.09 %. The lease term varied from 15 years to 15 years and 9 months. The lowest interest rate and lowest total financing cost was provided by US Bank. In accordance with the authorization given by the City Council on May 15, 2012, the City Manager accepted the proposal subject to formal approval by the City Council. The City Council, as part of the approval of this item, will also approve the Lease Financing with US Bank. Staff is recommending that certain portions of the project be funded from reserves in the Internal Service Fund for Building System Replacements. This includes $382,528 in building lighting and $25,179 in Building water fixture replacements. Based on the type of improvements it makes greater sense to fund these from reserves and not carry debt service on them for a period of 15 years. Staff also expects that the project will require additional construction management services in order to implement the multiple projects. Staff will return with a proposed agreement at a future meeting. It is proposed that the construction management costs will also be paid from the Internal Service Fund reserves. The total amount to be financed through the proposed US Bank Lease is approximately $7,023,268. The interest rate is fixed at 2.66 %. A summary of the major component costs and financing is included in Attachment 3. The City will not make payments during the construction period which is estimated to take up to 12 months. Therefore, the payments will be made over a fourteen year period. The amount of annual lease payments is intended to produce consistent savings each year. Therefore, for payments in the initial years, when certain rebates and incentives are received, there is a higher lease payment. The average annual lease payment over the 14 year repayment period is estimated to be approximately $614,093 per year. As previously noted, energy savings and incentives are projected to fully offset these costs. The financing is a lease arrangement with US Bank holding title to the improvements being installed. Once all lease payments are made, improvements are fully owned by the City. Staff investigated options to guarantee that the savings will materialize. The arrangement would be similar to the purchase of insurance. The City would be required to pay an annual "premium" which would start at $17,700 and escalate at a rate of 3% per year. The program offered then examines periodic energy savings with the original projection. The cost for this level of assurance has not been included in the overall project, however, this issue can be evaluated at a later date. The City may elect this option up to 30 days after the final improvements are installed. It should be noted that in preparing the estimated savings Chevron did provide Staff with their assumptions which included allowances for less than optimal recovery (i.e. the amount of solar generation; the fact that the amount generated may reduce over time due to degradation of the unit; historical assumptions related to energy rates.). The use of reasonable assumptions helps to give a greater assurance that the savings can be achieved. Proposed Next Steps Attachment 4 is a proposed agreement and scope of work for Chevron ES to implement the EAP. The agreement with Chevron ES is based on a model allowed for by Government Code sections 4217.10- 4217.18, and is consistent with agreements utilized by other public agencies and accounts for the significant commitment by both partners to this comprehensive energy strategy. In particular, the legislation allows the City to contract directly with Chevron ES to complete the project, with Chevron ES conducting the design, engineering, bidding, procurement, construction, and commissioning of the energy efficiency measures on behalf of Page 5 of 6 the City, in order to allow the City to take more immediate advantage of the increased energy efficiency, reduced costs, and long -term environmental benefits. Generally speaking, this type of comprehensive energy project is not well suited for the typical public bidding process. Many public agencies have undertaken similar projects utilizing the type of agreement proposed by Chevron ES for this project. If the City Council were to direct staff to initiate implementation of the EAP utilizing the typical design- bid -build process, Staff would expect that a number of years would be required to complete all the projects within the EAP at a much higher cumulative cost to the City then guaranteed by Chevron ES. The total project cost is $7,430,975 for the complete implementation of the EAP, with Chevron projecting that the City Council would accept all of the improvement within Fiscal Year 2012 -2013. The most favorable financing proposal came in at a rate of 2.66 %. The net impact of financing the total improvements coupled with the projected savings over the 15 year finance period is more than $88,000 a year in savings (Attachment 5). Implementing the EAP through the proposed contract with Chevron ES, would yield both environmental and well as economic benefits to the City. The proposed Energy Services Contract has been negotiated in compliance with California Government Code sections 4217.10- 4217.18 and has been reviewed and approved by the City Attorney. In accordance with section 4217.12, a public hearing is required to enter into an Energy Service Performance Contract. NOTICING REQUIREMENTS /PUBLIC OUTREACH: A public notice was placed in the Valley Times pursuant to California Government Code 4217 to consider approval of an Energy Services Contract. This item was continued from the June 5, 2012 City Council meeting. ENVIRONMENTAL REVIEW: The California Environmental Quality Act (CEQA), together with the State guidelines and City environmental regulations require that certain projects be reviewed for environmental impacts and when applicable, environmental documents prepared. Staff is recommending that the Project be found Categorically Exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures). The only construction that will occur as part of the project is the construction of carports and shade structures with solar panels on top of them. ATTACHMENTS: 1. Civic Center Solar Array Illustration 2. Energy Action Plan Scope of Work 3. Summary of Major Component Costs and Financing 4. Energy Service Contract 5. Summary of Projected Savings 6. Resolution approving an Energy Service Contract and an associated financing contract with Chevron Energy Solutions Company, for the implementation and funding of certain energy related improvements to City of Dublin facilities Page 6 of 6 vFwll- AERIAL VIEW SHOWING PHOTOVOLTAIC ARRAY I DUBLIN CIVIC CENTER. ENERGY ACTION PLAN SCOPE OF WORK Energy Conservation Measures to Be Implemented Energy Conservation Measures ( "ECM "): ECM 1: Install Variable Frequency Drives and Controls on Fan Motors Scope for Civic Center: Modify the existing constant volume system by providing Variable Frequency Drives ( "VFDs ") for the ten supply fan motors in the ten (10) Carrier 48MA units. Provide and install static pressure sensors on each unit to provide and pressure indication to manage the speed of the supply fan motor. Provide and install in each of the fifty nine (59) zones new temperature and CO2 sensors to provide an indication of the actual environment in the building. Temperature and CO2 levels will provide the demand control information necessary to control the fifty nine (59) newly installed electric dampers in the ductwork. Dampers will be operated to maintain set -point temperature within an acceptable range. • Install new opposed blade damper in each zone supply duct with an electric actuator to be controlled by the new DDC controls provided. • Provide and install new thermostats and CO2 sensors to communicate with the controls and VFD operation on each rooftop unit. VFDs will be installed in NEMA 3R enclosures without a by -pass. • Network all units together for communication. • Provide and install duct static pressure sensors for each unit to operate the VFDs and manage fan speed. • Provide and install controls to manage the supply fans and zone operation. • Provide and install front -end graphics and software for user interface. • Commission the new controls. Scope for Library: Provide and install variable air volume system operation by installing Variable Frequency Drives on the supply fans and the power exhaust fans. Provide and install controls to operate newly installed VFDs and sensors. • Close the existing duct bypass on each AC unit and seal duct between supply and return mains. • Install VFDs on each air conditioning unit to control both the supply air fan and power exhaust fan in NEMA 3R enclosure. • Provide and install new temperature sensors to accommodate the new control system. • Provide and install new actuators on existing dampers fro economizer operation. • Provide and install CO2 sensors in each of the 21 zones. • Commission the new controls. ECM 2: Install pool pump control at the Swim Center Scope: • Provide and install VFD pump controller. • Provide and install flow meter on the discharge pipe of pump. • Modify piping as needed to provide adequate length of straight pipe upstream and downstream of the flow meters. • Modify piping in boiler loop as necessary to ensure adequate water flow through the boiler when the pump speed is reduced at night. • Provide and install new pressure gauge in the suction and discharge of each pump. ECM 3: Install a Sand Filtration System at the Swim Center Scope of Work: Remove existing pool filtration system and provide and install a fully- engineered Sand Filtration system, including new pumps and piping. Replace existing filtration pumps with single pump. Re -plumb existing piping configuration to allow for new filtration system and pumps. Core drill through existing concrete block wall to allow for new piping and sand filtration system. The backwash port of the multi -port valves shall be tied into a single 6 -inch PVC line and terminated at existing waste location. Return lines shall be run through existing block wall and tied into existing return lines. New PVC Page 1 of 15 Attachment 2 pipe shall be adequately supported by galvanized strut and clamps. It is assumed that existing piping systems and components which will be interconnected are adequate for continual service. Provide and install one (1) filter pump, Paco type LC pump and Baldor strainer basket by Grundfos Provide and install three (3) Pentair THS series horizontal sand filters and media, equipped with multi -port valves • Suitable mounting configuration for the new sand filter. ECM 4: Streetliqht Liqhtinq Efficiency Upgrades Scope: Retrofit existing high pressure sodium cobrahead fixtures with new LED fixtures. Street light retrofits will include a new photo- sensor and wattage label. A comprehensive as -built template provided by PG &E will be used to log the new LED wattage replacement. This will allow PG &E to change each fixture to the new lower tariff rate.. Scope is applicable for roadway fixtures listed on PG &E's LS2 -A BRIO street light inventory. • Retrofit 2,461, 70w high pressure sodium cobra head street lights with LED • Retrofit 758, 100w high pressure sodium cobra head street light with LED • Retrofit 208, 150w high pressure sodium cobra head street light with LED • Retrofit 770, 200w high pressure sodium cobra head street light with LED • Retrofit 135, 250w high pressure sodium cobra head street light with LED • Retrofit 6, 310w high pressure sodium cobra head street light with LED • Retrofit 5, 400w high pressure sodium cobra head street light with LED ECM 5: Interior and Exterior Liqhtinq Efficiency Upgrades Interior Lighting Upgrading to Existing Lamps and Ballasts Scope: This scope of work is applicable for the following Buildings: Civic Center; Fire Stations 16, 17, 18; Library; Senior Center. Refer to table for quantities and fixtures. • Retrofit existing linear 4 ft. linear fluorescent lamps and ballasts with third - generation, 28 -watt T8, long -life, 4 ft. linear fluorescent, 4100 Kelvin lamps and ultra- efficient instant start and program start electronic ballasts. • Areas with three (3) or four (4) older generation T8, 4 ft. fluorescent lamps and electronic ballasts will be retrofitted with a specular reflector de -lamp kit, two (2) 4 ft. linear fluorescent 28 -watt T8, long -life, 4100 Kelvin lamps and 2 -lamp, program start electronic ballasts. • Existing T8 2 -ft U -tube fluorescent lamps will be replaced with two (2) 2 ft., 17w T8s, ultra- efficient electronic instant -start ballasts and specular reflector de -lamp kit. • Existing 2x2, 4 -lamp F1 7T8 recessed fixtures will be de- lamped to two (2) 2 ft. 17w T8's, third generation, long - life fluorescents, ultra- efficient high- output instant -start electronic ballasts and specular reflector de -lamp kit. • Replace incandescent PAR flood lamps with LED PAR LED flood lamps. • Replace Halogen incandescent MR16 lamps with MR16 LED lamps. • Install infrared occupancy sensor in rooms where specified with either a ceiling mount or wall- switch module. Exterior Lighting Efficiency Upgrade Scope: This scope of work is applicable for the following Buildings: Civic Center and Library. Refer to table for quantities and fixtures. Retrofit post -top parking lot high pressure sodium or metal halide fixtures with induction or LED retrofit kit (lamp & ballast as specified). Retrofit wall -mount high pressure sodium or metal halide fixtures with induction or LED retrofit kit (lamp & ballast as specified). Retrofit area flood high pressure sodium or metal halide fixtures with induction or LED retrofit kit (lamp & ballast as specified). Page 2 of 15 Attachment 2 Sensor Quantity by Site Building Wall Ceiling Civic Center 72 6 Fire Station 16 8 0 Fire Station 17 19 0 Fire Station 18 17 0 Library 48 3 Police Wing of Civic Center 0 7 Senior Center 11 1 total 175 17 Liqhtinq Quantity by Site Building Retrofit Code ECM Description Total CIVIC CENTER 1383LED RELAMP WITH LED 1383 48 15WLEDR30 LED 15WATT PAR30 SCREW IN 13 18WLEDPAR NEW 18W PAR38 SCREW IN 10 11-2T8 (1) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 7 11-3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 19 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 2 21-2T8 (2) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 5 21-3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 24 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 194 21-4UT86 (2) 30W U -lamp w/ (1) Prog Start Elec Bal (2x2) 6 "- LP 1 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 44 50WMHKIT RETROFIT TO 50 MH 40 6L4T8LP (6) 4'28W T -8 Lamps, (2) LP Prog Start Elec Bal 9 CATHKIT T -1 XTRABRIGHT COLD CATHODE KIT 15 NF150FLD NEW 150 PS FLOOD KNUCKLE OPTION 1 10 NF3LT5HOPOLE NEW 3L 54T5HO POLE HEAD 32 NF70INDCH NEW INDUCTION COBRA HEAD 70W 6 CIVIC CENTER Total 479 FIRE STATION 16 13WCFLDIM 13 WATT CFL DIM 2 15WLEDR30 LED 15WATT PAR30 SCREW IN 9 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 11 21-2T8 (2) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 1 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 39 3WCCS1 3W COLD CATHODE SCREW IN 3 4L4T8LP (4) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 17 LEDMR16 LED MR16 8 NF26TBX NEW FIXTURE FLOOD 26W TBX 2 NF3LT5HOPOLE NEW 3L 54T5HO POLE HEAD 3 NF3LT5HOWP NEW 3L 54T5HO WALL PACK 2 FIRE STATION 16 Total 97 FIRE STATION 17 15WLEDR30 LED 15WATT PAR30 SCREW IN 2 11-3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 13 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 1 27WCFL 27 WATT CFL 10 2L4T8LP 1 (2) 4' 28W T -8 Lamps, (1) LP Prog Start Elec Bal 1 21 Page 3 of 15 Attachment 2 FIRE 3L4T8LP1O (3) 4'28W T -8 Lamps, (1) LP Elec Bal 10 17 STATION 17 4L4T8LP (4) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 50 8WLEDPAR20 LED 8WATT PAR20 SCREW IN 2 FIRE STATION 17 Total 116 FIRE STATION 18 11-3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bat 9 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bat 1 27WCFL 27 WATT CFL 4 21-3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bat 2 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 39 3L4T8LP1O (3) 4'28W T -8 Lamps, (1) LP Elec Bat 10 4 4L4T8LP (4) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 32 6L4T8LP (6) 4'28W T -8 Lamps, (2) LP Prog Start Elec Bat 3 FIRE STATION 18 Total 94 1383LED RELAMP WITH LED 1383 24 18WCF 18 WATT CF 4 POLICE 11-2T8 (1) 2' 17W T -8 Lamps, (1) Prog Start Elec Bat 1 WING OF CIVIC 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bat 1 CENTER 1X8R4T8ELEC 1X8 Refl, (4)FO28, (1) T8 Prog Start Elec Ball LP 2 21-2T8 (2) 2' 17W T -8 Lamps, (1) Prog Start Elec Bat 5 21-3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bat 18 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 144 21-4UT86 (2) 30W U -lamp w/ (1) Prog Start Elec Bal (2x2) 6 "- LP 4 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 17 4L4T8LP (4) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 5 4L4T8LP10 (4) 4'28W T -8 Lamps, (2) LP prog Start Elec Bal- 10 11 6L4T8LP (6) 4'28W T -8 Lamps, (2) LP Prog Start Elec Bat 29 CATHKIT T -1 XTRABRIGHT COLD CATHODE KIT 4 NF3LT5HOPOLE NEW 3L 54T5HO POLE HEAD 13 NF3LT5HOWP NEW 3L 54T5HO WALL PACK 3 NF42TBXWP NEW 42 WATT TBX WALL PACK 2 POLICE WING Total 287 PUBLIC LIBRARY 11-3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bat 24 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bat 92 21-3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bat 12 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 18 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 18 PUBLIC LIBRARY Total 164 SENIOR CENTER 11-3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bat 40 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bat 65 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 9 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 36 3L4T8LP1O (3) 4'28W T -8 Lamps, (1) LP Elec Bat 10 14 6L4T8LP (6) 4'28W T -8 Lamps, (2) LP Prog Start Elec Bat 9 LEDMR16 LED MR16 3 NF100MH NEW FLOOD KNUCKLE 100 MH 2 NF2LT5GRN NEW 2L 54T5HO POLE HEAD GREEN 12 NF3LT5GRN NEW 3L 54T5HO WALL PACK GREEN 2 SENIOR CENTER Total 192 Page 4 of 15 Attachment 2 EMC 6: Renewable Energy Measure: Photovoltaic Systems Scope of Work — General Chevron ES shall provide installation of a solar photovoltaic (PV) system with a nominal capacity of 726 kWdc to be constructed on eight sites within the City: Civic Center, Fire Station 16, Fire Station 17, Fire Station 18, Library, Senior Center, Shannon Center, Stager Gym. Chevron ES installation includes detailed engineering, equipment procurement, installation, interconnection to utility, system start -up and commissioning services. Scope of work shall include: • Preparation of design drawings from the Chevron ES standard Division of the State Architect DSA] pre -check design package for submission to City Building Permit Department (Civic Center, FS16, FS17, FS18, Library, Senior Center, Shannon), DSA (Stager Gym), and local utility interconnection permit. • Final layout drawings for Fire Marshall and customer review. • Geotechnical evaluations necessary for design requirements. • Utility (PG &E) interconnection drawings and application management services. • Rebate administrative services for the purpose of obtaining available CSI incentive, if any. • Provide and coordinate with PG &E for the installation of the NGOM and NEM metering. • Provide the CSI - required PMRS [monitoring for five (5) years. • Procurement of materials and equipment necessary for construction. • Labor, supervision and coordination with the City for the installation of photovoltaic modules and supporting structures, electrical distribution and control systems, and one information kiosk. • Installation of inverters and all necessary electrical equipment and conduits to connect to the electrical switchgear or meter. Two electrical shut -downs are anticipated at each site. Time of shutdown to be coordinated with the City, Facility Management, and PG &E and may include weekends. • Solar canopy structure, which shall allow parking below and traffic circulation between canopies, shall be from Chevron ES standard, painted, canopy structure height and pier depth of eight (8) foot deep and assumes no de- watering, benching, shoring, or casing. • Installation of new lighting fixtures mounted under new parking canopies. • Roof mounted systems shall be standard attachment to standing seam roof and assumes no structural modifications to building, roof repairs, or roof modifications. Additional costs for non standard attachment shall be calculated based upon final design. Cost for roof mounting system requiring structural building modifications shall be determined following final design. • Includes connection to one kiosk display installed at City Hall showcasing the solar PV technology, real time tracking of production, savings and environmental benefits. • All project management and construction management necessary for a full and complete installation. • AutoCAD drawings and Operations & Maintenance Manuals upon project completion. Page 5 of 15 Attachment 2 Location Structure type No. of arrays kWdc Panel type Inverter Type 1 Civic Center Canopy 6 288+3 Hyundai, Trina, central or string or equivalent 2 Fire Sta. 16 Roof 1 14+3 Hyundai, Trina central or string or equivalent 3 Fire Sta. 17 Canopy — tall T 1 39+3 Hyundai, Trina central or string or equivalent 4 Fire Sta. 18 Canopy 1 24+3 Hyundai, Trina, central or string or equivalent 5 Library Canopy 3 -4 180+3 Hyundai, Trina, central or string or equivalent 6 Senior Center Roof 1 33+3 Hyundai, Trina, central or string or equivalent 7 Shannon Canopy 2 -3 120+3 Hyundai, Trina, central or string Center or equivalent 8 Stager Gym Canopy 1 30+3 Hyundai, Trina, central or string or equivalent Scope of Work — General Chevron ES shall provide installation of a solar photovoltaic (PV) system with a nominal capacity of 726 kWdc to be constructed on eight sites within the City: Civic Center, Fire Station 16, Fire Station 17, Fire Station 18, Library, Senior Center, Shannon Center, Stager Gym. Chevron ES installation includes detailed engineering, equipment procurement, installation, interconnection to utility, system start -up and commissioning services. Scope of work shall include: • Preparation of design drawings from the Chevron ES standard Division of the State Architect DSA] pre -check design package for submission to City Building Permit Department (Civic Center, FS16, FS17, FS18, Library, Senior Center, Shannon), DSA (Stager Gym), and local utility interconnection permit. • Final layout drawings for Fire Marshall and customer review. • Geotechnical evaluations necessary for design requirements. • Utility (PG &E) interconnection drawings and application management services. • Rebate administrative services for the purpose of obtaining available CSI incentive, if any. • Provide and coordinate with PG &E for the installation of the NGOM and NEM metering. • Provide the CSI - required PMRS [monitoring for five (5) years. • Procurement of materials and equipment necessary for construction. • Labor, supervision and coordination with the City for the installation of photovoltaic modules and supporting structures, electrical distribution and control systems, and one information kiosk. • Installation of inverters and all necessary electrical equipment and conduits to connect to the electrical switchgear or meter. Two electrical shut -downs are anticipated at each site. Time of shutdown to be coordinated with the City, Facility Management, and PG &E and may include weekends. • Solar canopy structure, which shall allow parking below and traffic circulation between canopies, shall be from Chevron ES standard, painted, canopy structure height and pier depth of eight (8) foot deep and assumes no de- watering, benching, shoring, or casing. • Installation of new lighting fixtures mounted under new parking canopies. • Roof mounted systems shall be standard attachment to standing seam roof and assumes no structural modifications to building, roof repairs, or roof modifications. Additional costs for non standard attachment shall be calculated based upon final design. Cost for roof mounting system requiring structural building modifications shall be determined following final design. • Includes connection to one kiosk display installed at City Hall showcasing the solar PV technology, real time tracking of production, savings and environmental benefits. • All project management and construction management necessary for a full and complete installation. • AutoCAD drawings and Operations & Maintenance Manuals upon project completion. Page 5 of 15 Attachment 2 • Tree relocation of Ash and Locust at Civic Center and Library, to adjacent field site. All other trees shall be removed. • Miscellaneous backfill and restoration of landscaping in areas of work. • Start -up, test, and commission the systems in accordance with design plan and applicable industry standards. Beneficial Use and therefore Substantial Completion of PV Systems: Unless otherwise provided below, shall occur when PG &E issues the Permission -To- Operate letter. Project Schedule Chevron ES shall incorporate in the Project Schedule reasonable allowances for: • Securing permits and approvals, and required inspections • Operations that cannot be suspended • Delivery of materials and equipment • Weather delays for conditions normal during the construction period Assumptions, Exceptions, Exclusions: • Time of work shall be normal business hours Monday through Saturday • Chevron ES is not responsible for availability of rebates available through PG &E California Solar Initiative CSI program. • Work shall not include repairs, modifications, or upgrades to buildings or adjacent facilities not specifically shown unless damaged during the construction process. • Work shall not include excavation, re- grading, installation of drainage systems, shoring of unstable soil or substructures. • Work shall not include repair or upgrade of existing electrical, mechanical, or structural infrastructure. • Work shall not include upgrades or modifications to existing non - compliant sites, structures or systems required to meet governmentally mandated codes or specifications. • Cost for pier depth beyond eight (8) feet shall be determined upon final design and is based upon prevailing soil conditions, seismic and wind requirements, the presence of water, or undiscovered conditions such as subsurface obstructions. • Cost for Americans with Disabilities Act ADA accessibility upgrades to existing buildings or parking lots for path of travel, if required, shall be calculated based upon final design. • Remediation and /or removal of hazardous materials, hazardous wastes, or spoils Is not included in the scope of work. • California Environmental Quality Act CEQA]or other environmental studies, if required, shall be the responsibility of the City. • Public Hearings, if required, shall be the responsibility of the City. • Access to the parking lots shall be blocked to public access during construction for safety. • Maintenance and operations of the solar PV system, if requested by Customer, will be provided at additional cost to be determined by the Parties. • Right of Way at Stager Gym to be provided by the City. Page 6 of 15 Attachment 2 Photovoltaic Project Layouts Civic Center /Police Station Fire Station 16 Page 7 of 15 Attachment 2 Fire Station 17 Fire Station 18 Page 8 of 15 Attachment 2 Senior Center Page 9 of 15 Attachment 2 Shannon Community Center Stager Community Gym Page 10 of 15 Attachment 2 ECM 7: Install Irrigation Controllers: Existing Equipment Site # Site Name Existing Controller # WiredZones Total Controllers 1 Swim Center Sentar II 22 1 2 Civic Center Sentar II 68 3 3 Fire Station 16 Sentar II 7 1 4 Fire Station 17 DX2 25 1 5 Fire Station 18 DX2 24 1 6 Heritage Park & Museum DX2 49 2 7 Library DX2 52 2 8 Senior Center DX2 34 1 9 Shannon Community Ctr DX2 12 1 10 Bray Commons DX2 66 2 11 Mape DX2 29 1 12 Ted Fairfield DX2 59 2 13 Emerald Glen DX2 368 10 14 Stage Coach RME 18 1 15 Kolb Sentar II 30 1 Chevron ES shall provide all labor, materials, and supervision necessary to: • Perform Site Investigations • Review existing conditions and develop installation plan • Equipment Installation • Flow Sensor Master Valve Setup Confirmation and Learn Flows • Confirmation All Flow Data Is Entered into the Central System • Train City Irrigation Team on Equipment and Software • All Irrigation controllers will be installed to code with appropriate wiring and grounding rods. Communication of the controllers back to the central computer (or internet, if applicable) will be confirmed. Site # Site Name Existing Controller # WiredZones Total Controllers 1 Swim Center Sentar II 22 1 2 Civic Center Sentar II 68 3 3 Fire Station 16 Sentar II 7 1 All the DX2 controllers are already on the central system but are not being adjusted for ET. It appears all (or most) the DX2 controllers also have Master Valves and Flow Sensors installed. Scope: Setup existing ET and Flow Sensing on three (3) DX2 controllers through existing Central Control. Replace three (3) existing Sentar II controllers with new DX2 controllers and add them to the existing central system at the following locations: Swim Center, Civic Center, Fire Station 16. Optimize the system to control irrigation through central control. Page 11 of 15 Attachment 2 Irrigation Optimization at the following sites: • Community Center • Fire Station 16 • Fire Station 17 • Fire Station 18 • Heritage Park • Library • Senior Center • Bray Commons • Mape • Ted Farifield • Emerald Green Pre - School ECM 8: Water Fixture Replacements in City owned Buildings Scope: • Provide and install pint flush urinals • Provide and install 1.5 gpm showerheads. • Provide and install aerators in all the bathrooms, it is recommended to replace any aerator with a flow over 1.5gpm to a low -flow 0.5gpm aerator. • Civic Center Existing Device Retrofit Device QTY. 1.5 gpf small urinal 1.0 PINT small urinal 3 1.5 gpm sink aerators 0.5 gpm sink aerators 12 2.5 gpm shower heads 1.5 gpm shower heads 4 • Police Wing of Civic Center Existing Device Retrofit Device QTY. 1.0 gpf LARGE /SM. URINAL 1.0 PINT LARGE /SM. URINAL 3 1.5 gpm sink aerators 0.5 gpm sink aerators 14 2.5 gpm shower heads 1.5 gpm shower heads 5 • Community Center Existing Device Retrofit Device QTY. 1.0 gpf LARGE /SM. URINAL .0 PINT LARGE /SM. URINAL 3 2.2 gpm sink aerators 0.5 gpm sink aerators 4 • Fire Station 16 Existing Device Retrofit Device QTY. 1.0 gpf LARGE /SM. URINAL 1.0 PINT LARGE /SM. URINAL 2 1.5 gpm sink aerators 0.5 gpm sink aerators 5 2.5 gpm shower heads 1.5 gpm shower heads 3 Page 12 of 15 Attachment 2 • Fire Station 17 Existing Device Retrofit Device QTY. 2.0 gpm sink aerators 0.5 gpm sink aerators 8 2.5 gpm shower heads 1.5 gpm shower heads 4 • Fire Station 18 Existing Device Retrofit Device QTY. 2.2 gpm sink aerators 0.5 gpm sink aerators 5 2.5 gpm shower heads 1.5 gpm shower heads 2 • Heritage Park Museum Existing Device Retrofit Device QTY. 1.0 gpf LARGE /SM. URINAL 1.0 PINT LARGE /SM. URINAL 1 2.0 gpm sink aerators 0.5 gpm sink aerators 3 • Public Library Existing Device Retrofit Device QTY. 1.0 gpf LARGE /SM. URINAL 1.0 PINT LARGE /SM. URINAL 3 2.2 GPM sink aerators 0.5 gpm sink aerators 4 • Senior Center Existing Device Retrofit Device QTY. 1.0 gpf LARGE /SM. URINAL 1.0 PINT LARGE /SM. URINAL 2 2.2 gpm sink aerators 0.5 gpm sink aerators 4 Criteria for Achieving Beneficial Use: CHILLER - Two weeks of uninterrupted supply of GPM flows within 10% of design values at a supply temperature of 45 °F or lower. Uninterrupted operation is defined as: no involuntary shutdowns due to mechanical difficulties. Flows shall be established by a test and balance report. Temperature performance shall be established by EMS trend logs or by manual spot checks of a temperature gauge by a Chevron ES employee. ii) PUMP - Two weeks of uninterrupted supply of GPM flows within 10% of design values. Uninterrupted operation is defined as: no involuntary shutdowns due to mechanical difficulties. Flows shall be established by a test and balance report. iii) MOTORS /VFDs /GENERATORS - Uninterrupted operation for a duration as necessary, with a maximum of 2 weeks, to determine proper operation. iv) ENERGY MANAGEMENT SYSTEM - Two weeks of uninterrupted operation of controlled equipment while providing reasonable comfort. Uninterrupted operation is defined as: no involuntary shutdowns due to control problems. Reasonable comfort is defined as: maintaining occupied spaces controlled by the system within +/- 4 degrees of setpoint. Comfort performance shall be established by EMS trend logs or by manual spot checks of temperatures by a Chevron ES employee. EXCLUSIONS Page 13 of 15 Attachment 2 • Dewatering of piers • Pier depth beyond 8 foot deep • Piers requiring shoring /benching due to sandy soil • Structural or seismic modifications to buildings, where code requirements have changed since installations • Environmental Impact Reports • EIR mitigations • ADA accessibility upgrades to existing buildings, parking lots, or path of travel • Upgrades to existing systems, where code requirements have changed • Special Helicopter access • Emergency ballasts • Under cabinet linear fluorescent • Existing occupancy sensors • Faulty switch leg circuits • Lighting circuit grounding • Street light fuse • Street light photo -cell receptacle • Street light RP -8 light level for neighborhoods • Repair or replacement of street light arm or pole • Missing street light badge numbers • Non -Cobra style decorative fixtures (LS2 -A) shall be retrofitted with Bridgelux LED module for cost, plus mark -up • Street lights not listed on BRIO street light inventory or above BRIO quantity shall be installed at cost, plus mark -up • Emerald Glen "Decorative" Post -top fixtures not included in scope. • Overtime or weekend work • DSA plan check fees • DSA inspector costs • Water hose bibs for washing the panels • Decorative fascia along the perimeter of the panels or any decorative covering underneath the panels • Repair or replacement of existing housekeeping pads, concrete pads, or base repair of existing walkway lighting, except as noted • Painting, unless specified • Smoke detectors and fire alarm system work Additional clarifications: • Removal and disposal of hazardous materials, including asbestos containing materials, to be by the Customer (except as noted above). If Chevron ES encounters material suspected to be hazardous, Chevron ES will notify the Customer representative and stop further work in this area until the material is removed. • Chevron ES shall require the cooperation of Customer personnel to secure the area and to provide traffic redirection during rigging operations and during the move -in and move -out of large equipment. • No allowance has been made for structural upgrades to existing structures, except as noted. • No allowance has been made for screening of new or existing equipment, unless specifically noted above. • No temporary heating or cooling services have been included in the pricing. Chevron ES will attempt to phase the construction in such a way as to avoid any complete interruptions of service. • Chevron ES standard construction means & methods will be used. • Customer will provide access to the facilities, laydown areas at the work sites, and a reasonable number of parking spaces for Chevron ES and Chevron ES's subcontractor vehicles in parking lots at the respective Facilities. • All work will be performed during normal work hours; no overtime hours are included in this proposal unless otherwise stated. The lighting retrofit work will be performed so as not to unreasonably interfere with the building schedule. Page 14 of 15 Attachment 2 • The Scope of Work assumes that, unless specifically identified otherwise, all existing systems are functioning properly and are up to current codes. Chevron ES shall not be responsible for repairs or upgrades to existing systems, other than those specifically identified herein. No allowances have been made to bring existing systems up to code. • No allowance has been made to repair or replace damaged or inoperable existing equipment that is not specifically being replaced under the Scope of Work. When such items are discovered, Chevron ES will immediately notify the Customer representative. • No allowance has been made for underground obstructions or unsuitable soil conditions encountered during trenching or other excavation. • The PV shade structure is not weather tight and will not provide shelter from rain. • Chevron ES has assumed project construction will be allowed to proceed smoothly and in a continuous flow. No allowance has been made to demobilize and remobilize resources due to schedule interruptions. • Temporary utilities to be provided by Customer at no cost (trailer power, phone lines, construction power, etc.). Page 15 of 15 Attachment 2 CITY OF DUBLIN ENERGY ACTION PLAN (June 19, 2012) SUMMARY MAJOR COMPONENT COSTS / FINANCING Construction Costs To Be Financed By Lease Street Liahts - (Excludes Decorative Fixtures) Citywide Street Light Assessment $1,811,553 District (1983 -1) Eastern Dublin St Light Assessment $157,527 District (1999 -1) Sub -Total Street Lights $1,969,080 GENERAL FUND / ISF $5,461,896 COMPONENTS ( *See Details) Less Portion Funded From ISF ($407,707) Reserves $5,054,189 TOTAL $7,023,269 15 Yr Less: PGE Financed Financing & Energy Cost Net of Costs Incentives Incentives $2,235,299 ($232,645) $2,002,654 $171,946 ($20,230) $151,716 $2,407,245 ($252,875) $2,154,370 $6,190,060 ($471,519) $5,718,541 $8,597,305 ($724,394) $7,872,911 Senior Center *DETAIL - GENERAL FUND COMPONENTS (Financed With Lease Financina) Shannon Center $695,680 Heritage Park & Museum Lighting Stager Community Gym Solar Building Pool Pump Pool Landscape Firestation 18 Location / Facility Sub -Total General Fund Photovoltaic HVAC Control Filtration Irrigation TOTAL Senior Center $44,486 $2,117 Shannon Center $3,145 Controls Civic Center $1,547,253 $474,839 $21,619 Firestation 16 Library $904,927 $186,004 $20,807 $1,633 Dublin Swim Center $16,990 $35,521 $415,862 $14,711 $382,528 Senior Center $140,451 Shannon Center $695,680 Heritage Park & Museum Lighting Stager Community Gym $164,344 Firestation 16 $79,263 Firestation 17 $224,960 Firestation 18 $135,024 Sub -Total General Fund $3,891,902 $13,731 $660,843 $35,521 $415,862 $50,0611 $5,054,189 *DETAIL - Internal Service Fund (Proposed to be financed with ISF Reserves TOTAL - NON - STREET LIGHTS $5,461,896 TOTAL - STREET LIGHTS $1,969,080 GRAND TOTAL $7,430,976 Building Building Location / Facility Lighting Water Upgrade Fixtures Civic Center $230,838 $9,967 Library $49,351 $3,145 Dublin Swim Center Senior Center $44,486 $2,117 Shannon Center $3,145 Heritage Park & Museum $1,074 Stager Community Gym Firestation 16 $20,056 $3,266 Firestation 17 $20,807 $1,633 Firestation 18 $16,990 $832 Sub -Total Internal Service Fund $382,528 $25,179 TOTAL - NON - STREET LIGHTS $5,461,896 TOTAL - STREET LIGHTS $1,969,080 GRAND TOTAL $7,430,976 DRAFT DATED June 13, 2012 This ENERGY SERVICES CONTRACT (this "Contract ") is made and entered into as of • by and between Chevron Energy Solutions Company, a Division of Chevron U.S.A. Inc., a Pennsylvania corporation ( "Chevron ES "), and The City of Dublin, California (the "City" or the "Customer" and together with Chevron ES the "Parties" and each of Customer and Chevron ES a "Party "). CONTRACT RECITALS WHEREAS, Customer owns and /or operates certain public facilities specifically described in Attachment C (the "Facilities ") and Customer wishes to reduce the Facilities' energy consumption and costs and improve the Facilities' energy quality and reliability; and WHEREAS, Chevron ES is a full- service energy services company with the technical capabilities to provide services to the Customer including, but not limited to, identifying supply -side and /or demand -side energy conservation measures ( "ECMs "), engineering, procurement, construction management, installation, construction and training; and WHEREAS, Customer executed a Consulting Services Agreement with Chevron ES to perform a comprehensive energy analysis and present the Customer with a report (the "Report ") and a recommended energy action plan to implement certain ECMs; and WHEREAS, in the Report, Chevron ES identified potential energy and operational savings opportunities at the Customer's Facilities and estimated program costs to implement the recommended ECMs and presented an overall potential energy cost and consumption savings for implementing the ECM recommendations; and WHEREAS, Customer's staff accepted the recommended ECMs and has determined that the anticipated cost to Customer to implement the recommended ECMs will be less than the anticipated cost to the Customer for thermal, electrical, and other energy, together with anticipated operational, maintenance and other costs, that would have been consumed by Customer in the absence of the recommended ECMs in compliance with California Government Code § §4217.10 through 4217.18; and WHEREAS, pursuant to California Government Code §4217.12 the City held a regularly scheduled public hearing on June 19, 2012, of which two weeks advance public notice was given regarding this Contract and its subject matter, and WHEREAS, based upon the foregoing findings and public hearing, the City has determined that entering into an energy services contract to implement the ECM recommendations is in the best interests of the Customer and that California Government Code §4217.10 et seq. allows the Customer to enter into this Contract with Chevron ES to implement the ECMs and other measures recommended in the Report; and WHEREAS, the City, by adoption of Resolution No. • at its City Council meeting of June 19, 2012, approved this Contract by and between Chevron ES and the Customer and authorized the City Manager to execute this Contract on behalf of the Customer. NOW, THEREFORE, the Customer and Chevron ES hereby agree as follows: ARTICLE 1. DEFINITIONS For purposes of this Contract and its Attachments, the defined terms herein shall have the meaning set forth as follows: "Abnormally Severe Weather Conditions" means typhoons, hurricanes, tornadoes, lightning storms and other climatic and weather conditions that are abnormally severe for the period of time when, and the area where, such 1899451.5 Rev. Date: 6/13/12 Page 1 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company storms or conditions occur, in each case occurring at a property, the access roads to a property, or any other location where Work is then being performed. For the avoidance of doubt, the term "Abnormally Severe Weather Conditions" specifically includes rain, snow or sleet in excess of one hundred fifty percent (150 %) of the median level over the preceding ten (10) year period for the local geographic area and time of year in which such rain, snow or sleet accumulates. "Accumulated Savings" means, as of any date of determination, the cumulative total of Excess Savings. "Act" is defined in ARTICLE 16. "Actual Energy Rate" means, for any Measurement Period, utility rates calculated by Chevron ES using actual utility billing information supplied by the Customer for that Measurement Period. "Affiliate" means any Person that directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Person specified. For purposes of this definition, control of a Person means the power, direct or indirect, to direct or cause the direction of the management and policies of such Person whether by contract or otherwise, and ownership of fifty percent (50 %) or more of the voting securities of another Person shall create a rebuttable presumption that such Person controls such other Person.. "Annual Guarantee Fee" means a fee payable annually in advance by the Customer to Chevron ES. The Annual Guarantee Fee for the first Measurement Period shall be $[0]. The Annual Guarantee Fee shall be increased annually thereafter at the rate of [0] percent ([0] %) per annum, each increase to be effective on the first day of the corresponding Measurement Period. "Annual Maintenance Fee" means a fee payable annually in advance by the Customer to Chevron ES. The Annual Maintenance Fee for the first Measurement Period shall be $[0]. The Annual Maintenance Fee shall be increased annually thereafter at the rate of [0] percent ([0] %) per annum, each increase to be effective on the first day of the corresponding Measurement Period. "Applicable Law" means any statute, law, treaty, building codes, rule, regulation, ordinance, code, enactment, injunction, writ, order, decision, authorization, judgment, decree, protocol, procedure or other legal or regulatory determination or restriction by a court or Governmental Authority or competent jurisdiction, as may be in effect at the time the Work is undertaken. "Applicable Permits" means all permits, waivers, authorizations, or licenses issued or required to be issued by any Governmental Authority in connection with the Work. "ARRA" is defined in ARTICLE 15. "Assessment Work" means work required to assess the effect on EC Savings for any significant changes to the Facilities (including, but not limited to, building additions, new buildings, and new or changed HVAC equipment). "Attachment" means the following attachments to this Contract, each of which is an "Attachment:" Attachment A Form of Performance Bond Attachment B Form of Payment Bond Attachment C Customer's Facilities & Existing Equipment Attachment D Scope of Work Attachment E Project Schedule Attachment F Progress Payment Schedule Attachment G Standards of Occupancy and Control Attachment H Energy Savings Measurement & Verification Plan Attachment I List of Incentives Attachment J Monitoring Installation Scope of Work Attachment K Preventive Maintenance Services "Average Energy Unit Savings" means, with respect to any number of consecutive Measurement Periods, the arithmetic mean of the Energy Unit Savings determined in the manner set forth in Attachment H, for such number of Measurement Periods. "Base Energy Rate" means the dollars per energy unit for each building and /or each ECM, set forth in the Savings Measurement and Verification Plan and used by Chevron ES to calculate the EC Savings. 1899451.5 Rev. Date: 6/13/12 Page 2 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company "Baseline" means the energy use established by Chevron ES from time to time for each building in the Facilities, taking into consideration Energy Use Factors for such buildings. "Beneficial Use" means when major new equipment and systems included in the Scope of Work are properly installed, inspected, operational, and are being used for their intended purpose. A Certificate of Beneficial Use, which identifies when Customer took Beneficial Use of the Work, shall be prepared and issued by Chevron ES to the Customer and subcontractor. Beneficial Use of equipment/systems criteria shall be established as defined in Attachment D. "Business Day" means any calendar day other than a Saturday, a Sunday or a calendar day on which banking institutions in San Francisco, California, are authorized or obligated by law or executive order to be closed. "CEQA" means the California Environmental Quality Act, codified at California Public Resource Code § 21000 et seq., and the applicable state and local guidelines promulgated thereunder. "Change" means any addition to, deletion from, suspension of, or other modification to the quality, function, or intent of the Work, including without limitation any such addition, deletion, suspension, or other modification that effects a change in the Scope of Work. "Change in Law" means any of the following events or circumstances occurring after the Contract Effective Date: (i) an amendment, modification, interpretation, construction, enforcement standard, supplement or other change in or repeal of an existing Applicable Law; or (ii) an enactment or making of a new Applicable Law (excluding a change in any income or franchise tax law, worker's compensation, payroll or withholding tax law). "Change Order" means a written document, signed by both Chevron ES and the Customer, authorizing Chevron ES to perform a Change. The Change Order shall modify the Scope of Work and shall identify: (i) the applicable Change; (ii) any additional compensation to be paid to Chevron ES to perform such Change; and (iii) any extensions of time to the Project Schedule. "Chevron ES" is defined in the Preamble. "Chevron ES Warranty Period" is defined in ARTICLE 9. "Claims" means any and all actions, claims, losses, damages, expenses, or liabilities of either Party arising from or as a result of this Contract, any addenda to this Contract, and /or Change Orders. "Constructed Improvement" means any portion of the Work that is the subject of a single permit issued by the City and that is complete and ready for Beneficial Use by the Customer. "Construction" means any Work to be performed that involves any and all construction, alteration, repair, installation or removal of equipment, addition to, subtraction from, improving, moving, wrecking or demolishing any building, parking facility, excavation, or other structure or improvement, or any part thereof. "Construction Documents" means the final designs, drawings, and specifications that are used for Construction, and any Change Orders affecting those documents, that describe the technical requirements for the installation of all the materials and equipment pursuant to this Contract and its Attachments. "Construction Period" means the period beginning with the first day of the month in which equipment is first installed at the Facilities and continuing until the M &V Commencement Date. "Contract" is defined in the Preamble, and includes all Attachments hereto (all of which are incorporated herein), as well as all amendments, restatements, supplements and other modifications hereto. "Contract Amount" means [describe amount in words] ($[0]), exclusive of the Annual Guarantee Fee and the Annual Maintenance Fee. "Contract Bonds" is defined in Section 11.04. "Contract Effective Date" means the date this Contract is fully executed and is in full force and effect. "Customer" is defined in the Preamble. "Delay" means any circumstances involving delay, disruption, hindrance or interference affecting the time of performance of the Work. "Dispute" is defined in Error! Reference source not found.. "DOE Guidelines" is defined in Section 14.01. "DSA" means the California Division of State Architect. 1899451.5 Rev. Date: 6/13/12 Page 3 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company "EC Savings" means the savings in units of dollars ($) calculated by Chevron ES in the manner set forth in the Savings Measurement and Verification Plan, achieved through the reduction in consumption or demand through implementation of the Work. "ECM" is defined in the Recitals. "EMS" means an energy management system. "Energy Delivery Point" means, for each Generating Facility, the point at which Utility meter energy is being delivered, as designated in the Interconnection Agreement. "Energy Rate Factors" means factors identified by Chevron ES which may affect utility rates from the local utility companies. [ "Energy Rate Reduction Rate" means dollars saved per applicable unit of energy, power, water, or other utility or commodity, calculated by Chevron ES in the manner set forth in the Savings Measurement and Verification Plan, which will not be escalated for purposes of calculating Energy Rate Reduction Savings.] [ "Energy Rate Reduction Savings" means, for any Measurement Period, those savings, having units of dollars ($), achieved for such Measurement Period by any combination of (i) improving the utility rate from the local utility company, (ii) direct purchase of a commodity, or (iii) bulk purchase of a commodity.] "Energy Savings Report" is defined in Section 22.04. "Energy Savings Term" means the period beginning on the first day of the Construction Period and ending on the earlier of: (i) the day immediately preceding the [Oth (Oth)] anniversary of the M &V Commencement Date; (ii) the termination of this Contract; (iii) the termination by the Customer of the Savings Guarantee in accordance with Section 22.07; or (iv) the failure by the Customer to pay the Annual Guarantee Fee in accordance with Section 22.08(a). "Energy Unit Savings" means the savings in units of energy, power, water, etc., calculated by Chevron ES in the manner set forth in the Savings Measurement and Verification Plan, achieved through the reduction in consumption or demand through implementation of the Work. "Energy Use Factors" means factors identified by Chevron ES which may affect the Baselines or energy use for the Facilities, including but not limited to: hours and levels of occupancy; adjustments in labor force; building use and operational procedures; temperature, humidification, and ventilation levels; installed lighting and scheduled use; building construction and size; general level of repair and efficiency of heating and air conditioning equipment and other energy -using equipment; and amount of heating and air conditioning and other energy - using equipment. "Energy Use Savings" means, for any Measurement Period, those savings, having units of dollars ($), achieved for such Measurement Period through reductions in energy use, energy demand, water use, and the use of other commodities. "Event of Default" is defined in ARTICLE 12. "Excess Savings" means the excess of EC Savings over Guaranteed Savings, calculated in the manner set forth in Section 22.09(d). "Excusable Delay" means (i) any act or failure to act of, or other Delay caused by, or negligence of, Customer or its agents, employees subcontractors or other Persons for whom Customer is responsible (expressly excluding, however, Chevron ES when acting as agent or subcontractor under this Contract, whether in its individual capacity or as contractor); (ii) the failure to obtain, or delay in obtaining, any Interconnection Agreement, Applicable Permit, or approval of a Governmental Authority (including due to failure to make timely inspection), or Delays caused by Changes and /or modifications to the Scope of Work required by any Governmental Authority, other than a failure caused by the action or inaction of Chevron ES; (iii) changes in the design, scope or schedule of the Work required by any Governmental Authority or Customer; (iv) suspension of Work in whole or in part by Customer; (v) unforeseen site conditions, including discovery or existence of Hazardous Substances; (vi) the occurrence of an event of Force Majeure; (vii) the failure to obtain, or delay in obtaining, DSA approval for design and installation of any portion of the Work (if such approval is required by law), including any further or subsequent approval required with respect to any Change, other than a failure caused by the action or inaction of Chevron ES; (viii) any breach of this Contract by Customer or any breach of any Interconnection Agreement; (ix) damage to any equipment or other item of Work caused by the act or omission of Customer, any of its agents or employees, or any other Person for whom Customer is responsible; (x) information provided to Chevron ES by Customer or Utility is later found to be inaccurate or incomplete; (xi) any Change in Law; (xii) Delay caused by pending mediation; or (xiii) any other cause outside Chevron ES's control. 1899451.5 Rev. Date: 6/13/12 Page 4 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company "Facilities" is defined in the Recitals. "Final Completion" means when 100% of the engineering and construction Work as identified in the Scope of Work has been completed, including completion of all required training, and delivery to the Customer of the final documentation (as -built drawings, O &M Manuals, and warranty documentation). Administrative closeout by the DSA is not a condition to achieving Final Completion. A certificate of Final Completion may be executed for an individual subcontract, a specific building, a site, or a portion of the Work. A certificate of Final Completion will be executed at the Final Completion of the entire Work. "Force Majeure" means acts or events that are beyond the reasonable control of the affected Party and not caused by the negligence or fault of the Party affecting, including but not limited to any of the following: (i) acts of God; (ii) acts of the public enemy or terrorist acts; (iii) relocation or construction of transmission facilities or the shutdown of such facilities for the purpose of necessary repairs; (iv) work by local Utility; (v) flood, earthquake, tornado, storm, fire, explosions, lightning, landslide or similar cataclysmic occurrence; (vi) sabotage, vandalism, riots or civil disobedience; (vii) labor disputes or strikes; (viii) labor or material shortages, delay in manufacturing and deliveries of equipment (if such delay is caused by an event that would otherwise constitute Force Majeure); (ix) restraint by court order or public authority (whether valid or invalid); (x) inability to obtain or keep in force any Applicable Permit; (xi) Abnormally Severe Weather Conditions; (xii) an annual level of direct beam solar resource availability that is less than or equal to 90% of historical averages as measured by long -term weather data (minimum 5 years) collected at the applicable Facility and /or other reliable calibrated and appropriate weather station representative of such Facility; (xiii) requirement by Utility that any Generating Facility discontinue operation for any reason; (xiv) appropriation or diversion of electricity by sale or order of any Governmental Authority; (xv) any other action by any Governmental Authority which prevents or inhibits the Parties from carrying out their respective obligations under this Contract (including an unstayed order of a court or administrative agency having the effect of subjecting the sales of energy output to federal or state regulation of prices and /or services); or (xvi) any Utility power outage at any Facility. [ "Fuel Switch Rate" means dollars saved per unit of new fuel used, which will not be escalated for purposes of calculating Fuel Switch Savings, and will be calculated by Chevron ES in the manner set forth in the Savings Measurement and Verification Plan.] [ "Fuel Switch Savings" means, for any Measurement Period, those savings, having units of dollars ($), achieved for such Measurement Period on a cost per unit of energy basis by switching to a more economical source of energy.] "Generating Facility" means each of [0] photovoltaic, solar powered generating facilities located at the following sites: [0], and includes all associated photovoltaic panels, mounting assemblies, inverters, converters, metering, lighting fixtures, transformers, ballasts, disconnects, combiners, switches, wires and other equipment that may be necessary to connect such solar power plant to the applicable Energy Delivery Point. "Governmental Authority" means any federal, state, regional, town, county, city, municipal or local government agency, department or regulatory body having jurisdiction under Applicable Law over the matter in question. "Greenhouse Gas" is defined in Section 14.01. "Guarantee Payment" means, for any Measurement Period, either: (i) a cash payment by Chevron ES to the Customer in an amount equal to the Guarantee Shortfall for that Measurement Period pursuant to Section 22.01(b); or (ii) additional energy services or energy saving retrofits requested by the Customer with an agreed value equal to the Guarantee Shortfall for that Measurement Period pursuant to Section 22.01(c). "Guarantee Shortfall" means an amount calculated in accordance with Section 22.09(e). "Guaranteed Savings" means, for any Measurement Period, the dollar amount set forth below for such Measurement Period, as the same may be adjusted from time to time Chevron ES for changes in Energy Rate Factors, Energy Use Factors and consequential revisions to the relevant Baseline: Measurement Period Guaranteed Savings 1 $• 2 $• 3 $• 4 $• 5 $• 6 $• 7 $• 8 $• 9 $• 1899451.5 Rev. Date: 6/13/12 Page 5 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company 10 1 $• "Hazardous Substances" means (i) any hazardous, toxic, or dangerous wastes, substances, chemicals, constituents, contaminants, pollutants, and materials and any other carcinogenic, liquids, corrosive, ignitable, radioactive, reactive, toxic, or otherwise hazardous substances or mixtures (whether solids, liquids, gases) now or at any time subject to regulation, control, remediation, or otherwise addressed under Applicable Laws; (ii) any "hazardous substance" as defined by the Resource, Conservation and Recovery Act of 1976 (42 U.S.C. §6901 et seq.), as amended, and regulations promulgated thereunder; (iii) any "hazardous, toxic or dangerous waste, substance or material" specifically defined as such in 42 U.S.C. §9601 et seq.), as amended and regulations promulgated thereunder; and (iv) any hazardous, toxic or dangerous waste, substance, or material as defined in any so- called "superfund" or "superlien" law. "Incentive Funds" is defined in Section 8.07. "Installation" means the setting up, construction, and placement of any equipment or materials in the manner it will be operated, in accordance with the Scope of Work and in accordance with all Applicable Laws. "Interconnection Agreement" means the Interconnection Agreement to be entered into between the Customer and the Utility with respect to the Generating Facilities. "Interconnection Facilities" is defined in Section 21.02. "Interest" shall mean interest calculated at the lesser of (i) the prime rate plus two percent (2 %) or (ii) the maximum rate permitted by Applicable Law. The "prime rate" shall be "Prime Rate" of interest per annum for domestic banks as published in The Wall Street Journal in the "Money Rates" section, or if such rate ceases to be published in The Wall Street Journal or The Wall Street Journal ceases publication, such other rate as agreed by the Parties. "IPMVP" means the International Performance Measurement and Verification Protocol prepared by Efficiency Valuation Organization. "Losses" is defined in Section 11.01. "M &V Commencement Date" means the first day of the month immediately following the later of (i) Chevron ES's receipt of the fully signed certificate of Final Completion, and (ii) Chevron ES's receipt of the full Contract Amount. "Material Changed Condition" means any of the following conditions that impact the Project Schedule and /or the Contract Amount: (i) delays in the Project Schedule caused by parties outside the control of Chevron ES; (ii) the discovery of differing and unexpected site conditions not previously disclosed by Customer that could not have been readily discoverable by Chevron ES prior to the start of Work; (iii) the discovery of Hazardous Substances not previously disclosed by Customer; (iv) Abnormally Severe Weather Conditions; and (v) delay in equipment and material deliveries outside Chevron ES's control. "Measurement Period" means each one -year period following the M &V Commencement Date. "NEC" means the National Electric Code. "Notice to Proceed" is defined in Section 2.04. "Party" and "Parties" are defined in the Preamble. "Person" means any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other business organization, trust, union, association or Governmental Authority. "PM Services" is defined in Attachment K. "Project" means the entirety of Work to be performed by Chevron ES pursuant to the Scope of Work, and any Change Orders. "Project Location" means that area or areas where the Project materials and equipment and any other energy related equipment as described in the Scope of Work shall be performed and /or installed. "Project Schedule" is defined in Section 2.04. "Project Manager" is defined in Section 2.04. "Projected Energy Savings" means those Energy Unit Savings, [Fuel Switch Savings and Energy Rate Reduction Savings] which Chevron ES anticipates will be realized from the installation and continued operation of the Work, as set forth in the Savings Measurement and Verification Plan. 1899451.5 Rev. Date: 6/13/12 Page 6 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company "Report" is defined in the Recitals. "Request for Payment" means a monthly progress payment as described in Section 8.01 or an invoice for materials stored off -site as described in Section 8.02. "Retainage" is defined in Section 8.02. "Retained Items" is defined in Section 10.02. "Savings Measurement and Verification Plan" means the methodologies and calculations set forth in Attachment H, which provides for the quantification of Energy Unit Savings, [Fuel Switch Savings and Energy Rate Reduction Savings] . "Scope of Work" means the Work set forth in Attachment D, as modified by any Change Order. "Stipulated Non - Energy Savings" means, for any Measurement Period, those savings, having units of dollars ($), achieved for such Measurement Period through reductions in non - energy costs due to the implementation of the Work. Stipulated Non - Energy Savings shall be stipulated by the Parties and set forth in the Savings Measurement and Verification Plan. "Substantial Completion" means the stage in the progress of the Work or portion of the Work, where the Work or portion of the Work is sufficiently complete in accordance with this Contract so that Customer can utilize and take beneficial use of the Work for its intended use or purpose. A Certificate of Substantial Completion may be executed for an individual subcontract, a specific building, a portion of the Work, or the entire Work. "Surety" means the surety supplying the Contract Bonds, which shall be an "admitted surety insurer," as defined by California Code of Civil Procedure §995.120, authorized to do business in the State of California, and reasonably satisfactory to Customer. "Time" means the time period within which Chevron ES shall complete the Work in accordance with the Project Schedule. "Utility" is defined in Section 21.02. "Work" means the Work to be done by Chevron ES pursuant to the Scope of Work, subject to any Change Orders, and includes all Design and Engineering Work and Construction Work set forth in Attachment D. ARTICLE 2. TERM; PERFORMANCE OF THE WORK Section 2.01 Contract Term. The term of this Contract shall commence on the date hereof and end on the last day of the Energy Savings Term, unless terminated early as provided in this Contract. Section 2.02 Performance of Work. All the Work to be performed hereunder will be provided in accordance with the terms of this Contract. Section 2.03 Scope of Work. The Scope of Work shall not exceed that set forth in Attachment D except pursuant to a Change Order. Section 2.04 Protect Schedule / Notice to Proceed. The preliminary project schedule is presented in Attachment E ( "Protect Schedule "). Within ten (10) calendar days after the authorized execution of this Agreement by Customer, Customer will issue to Chevron ES a written Notice to Proceed ( "Notice to Proceed "). If the Customer fails to issue the Notice to Proceed within ten (10) calendar days after said execution of this Agreement by Customer or such additional time as mutually agreed to in writing pursuant to Section 2.07, the Parties agree that the Notice to Proceed shall be deemed to have been issued on the tenth (10th) calendar day after execution of this Agreement by Customer. Chevron ES shall begin Work within thirty (30) calendar days of Chevron ES's receipt of the Notice to Proceed. Customer may, at its sole discretion, elect to retain a Project Manager (the "Project Manager ") to represent Customer and manage Customer's interests in the project outcomes as defined in the Scope of Work. In the event that a Project Manager is so retained, the Project Manager shall be the Customer's authorized representative for administration and overall management of the Work, and all correspondence and /or instructions concerning the Project between Chevron ES and the Customer shall be forwarded through the Project Manager. The Project Manager will have the authority to reject materials and /or workmanship that do not conform to the requirements of the Contract. The Project Manager will also have the authority to require inspection or testing of the Work. The Project Manager shall have access to any and all worksites, value engineering proposals, staging and access plans, work schedules, etc., as well as the right to review and approve substitution requests, Upon issuance of the Notice to Proceed, if Customer informs Chevron ES that it intends to hire a project manager to supervise the Work, Chevron ES may only begin working on the project engineering up to 90% permit set. The final 10% permit set and construction on the project shall not commence until the services of the Project Manager have been retained and said 1899451.5 Rev. Date: 6/13/12 Page 7 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Project Manager has had a reasonable amount of time to review the permit set and become familiar with the Work (not to exceed [45] days after the issuance of the Notice to Proceed). Section 2.05 Customer's Energy and Operational Records and Data. Within ten (10) Business Days after the date hereof, Customer shall provide Chevron ES with its Energy Usage Data (as defined below) for the twelve (12) months preceding the date hereof, and shall make commercially reasonable efforts to provide the Energy Usage Data for the thirty -six (36) months preceding the date hereof. Energy Usage Data shall mean all of the Customer's records and complete data requested by Chevron ES concerning, without limitation, energy usage, energy - related maintenance, and other related costs for the Facilities, and including without limitation utility records; occupancy information; descriptions of any changes in the building structure or its heating, cooling, lighting or other systems or energy requirements; descriptions of all energy consuming or saving equipment used in the Facilities; applicable building drawings, specifications, existing AutoCAD files, O &M manuals, and as- builts; bills and records relating to operation and maintenance of systems and equipment within the Facilities, and a description of operation and management procedures presently utilized to the extent that such records and data are available. Customer agrees that Chevron ES may rely on the foregoing data as being reasonably accurate in all respects. If requested, Customer shall also provide any prior energy audits of the Facilities, and copies of Customer's financial statements and records related to energy usage and operational costs for said time period at the Facilities, and shall authorize its agents and employees to provide and freely discuss such records and to make themselves available for consultations and discussions with authorized representatives, employees, subcontractors, and agents of Chevron ES. Section 2.06 Additional Work. Customer shall reasonably cooperate in obtaining any necessary approvals in accordance with California Government Code § §4217.10 through 4217.18. If Chevron ES determines that a Change Order is subject to the requirements of California Government Code §4217, Customer shall reasonably cooperate in obtaining any necessary approvals in accordance with California Government Code § §4217.10 through 4217.18. Section 2.07 Finance Contingency. It is hereby agreed by Chevron ES and the Customer that this Contract, and any obligations of the Customer hereunder, are expressly contingent upon the ability of the Customer to secure financing for the payments to be made by Customer hereunder, including payments for the cost of the Work to be performed by Chevron ES, upon terms acceptable to the Customer. Upon execution of this Contract, and determination of such payments and costs, the Customer shall have thirty (30) calendar days to obtain such financing. If financing is not secured by the Customer within such period, for any reason, this Contract shall be null and void unless the Parties mutually agree in writing to extend such financing period. It is acknowledged and agreed that Chevron ES will not commence performance of the Work unless and until financing has been secured. ARTICLE 3. PROJECT IMPLEMENTATION - GENERAL Section 3.01 Permits and Approvals. Customer will cooperate fully with and assist Chevron ES in obtaining all Applicable Permits required under this Contract. Chevron ES is responsible for obtaining permits and approvals, required for the building, installation, and start -up of the Work hereunder which are required as of the Contract Effective Date. The Customer shall be responsible for making its best efforts to obtain any other permits or approvals that may be required, including annual operating permits and any approvals or exemptions required by CEQA, as applicable. Section 3.02 Coordination During Installation. Customer and Chevron ES shall make commercially reasonable efforts to coordinate the activities of Chevron ES and Chevron ES's subcontractors and suppliers with those of Customer, its employees, and agents. Section 3.03 Protect Meetings /Status Updates. During the Design and Construction Phases of the Project, Chevron ES will meet with Customer to review equipment, scope of work, and installation plans that relate to the design and construction of the Project. Also during the course of the Work, Chevron ES will periodically provide reports to the Customer of the general status and progress of the Work. Section 3.04 Protect Location Access. Customer hereby grants to Chevron ES, without cost to Chevron ES, all rights of ingress and egress at the Project Location identified in the Scope of Work, necessary for Chevron ES to perform all Work and provide all services contemplated by this Contract and the Scope of Work. Chevron ES shall provide twenty- four -hour advance notice to Customer for access to any Customer Facilities. Section 3.05 Protect Schedule. The Project Schedule, attached hereto as Attachment E, is a preliminary, estimated Project Schedule. During the course of Project implementation, both the Customer and Chevron ES shall perform their respective obligations in an expeditious manner that is consistent with reasonable skill and care for the type of Project described in the Scope of Work and in keeping with the orderly progress of the Work pursuant to the Scope of Work. The estimated Project Schedule will be finalized during the completion of the Construction Documents, provided that such final Project Schedule will be subject to amendment and revision to take 1899451.5 Rev. Date: 6/13/12 Page 8 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company into account any Excusable Delays. Subject to any such Excusable Delays, Chevron ES and its subcontractors shall work diligently to implement the Project in accordance with the Project Schedule and Chevron ES shall notify Customer regarding any and all revisions to the Project Schedule necessitated by such Delay. Section 3.06 Consents; Cooperation. Whenever a Party's consent, approval, satisfaction, or determination shall be required or permitted under this Contract, and this Contract does not expressly state that the Party may act in its sole discretion, such consent, approval, satisfaction, or determination shall not be unreasonably withheld, qualified, conditioned, or delayed, whether or not such a "reasonableness" standard is expressly stated in this Contract. Whenever a Party's cooperation is required for the other Party to carry out its obligations hereunder, each Party agrees that it shall act in good faith and reasonably in so cooperating with the other Party or its designated representatives or assignees or subcontractors. Each Party shall furnish decisions, information, and approvals required by this Contract in a timely manner so as not to delay the other Party's performance under this Contract. Section 3.07 Independent Contractor. The Parties hereto agree that Chevron ES, and any agents and employees of Chevron ES, its subcontractors and /or consultants, in the performance of this Contract, shall act in an independent capacity and not as officers, employees, or agents of Customer. ARTICLE 4. FINAL DESIGN PHASE — CONSTRUCTION DOCUMENTS / EQUIPMENT PROCUREMENT Section 4.01 General Provisions. (a) As soon as possible after the Contract Effective Date, Chevron ES will proceed with the preparation of any necessary designs, drawings, and specifications related to the Scope of Work. (b) Upon the issuance of the Notice to Proceed and upon completion of the design phase, Chevron ES shall order the equipment identified in the Scope of Work, and any other necessary materials and supplies in order to meet the Project Schedule. (c) Customer shall designate a single -point representative with whom Chevron ES shall consult on a reasonable, regular basis and who is authorized to act on Customer's behalf with respect to the Project design. Customer's representative shall render decisions in a timely manner with regard to any documents submitted by Chevron ES and to other requests made by Chevron ES in order to avoid unreasonable delay in the orderly and sequential progress of Chevron ES's design services. (d) Within ten (10) Business Days of Chevron ES's request, Customer shall: (i) furnish all surveys or other information in Customer's possession that describe the physical characteristics, legal limitations, and utility locations in and around the Project Location; (ii) disclose any prior environmental review documentation and all known information in its possession concerning subsurface conditions, including without limitation the existence of any known Hazardous Substances, in or around the general area of the Project Location where the Work will be performed pursuant to the Scope of Work; (iii) supply Chevron ES with all relevant information in Customer's possession, including any as -built drawings and photographs, of prior construction undertaken in the general area where the Work will be performed pursuant to the Scope of Work; and (iv) obtain any and all easements, zoning variances, planning approvals, including any resolution of any environmental impact issues, and any other legal authorization regarding utilization of the Project Location site essential to the execution of the Work. (e) All information furnished pursuant to this Section 4.01 shall be supplied at Customer's expense, and Chevron ES is entitled to rely upon the accuracy and completeness of all information provided. Customer acknowledges that any failure to provide the information specified in Section 4.01(d) to Chevron ES may result in an Excusable Delay as defined herein. (f) In the event that any information is disclosed under this Section 4.01 that constitutes a Change to the Work and /or is a Material Changed Condition, Chevron ES will provide notice to Customer within ten (10) Business Days after receipt of this information, and the Parties will meet and confer with respect to those Changes. If Customer authorizes a Change Order, Chevron ES shall be compensated, and receive an extension of Time for performance, if necessary, to perform the additional Work. If the Parties are unable to agree on whether Customer's disclosed information 1899451.5 Rev. Date: 6/13/12 Page 9 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company constitutes a Change to the Work or a Material Changed Condition, those disputes shall be resolved in accordance with ARTICLE 23. (g) Chevron ES contemplates that it will not encounter any Hazardous Substances at the Project Location, except as has been disclosed as a Pre - Existing Condition by the Customer prior to the execution of this Contract. However, any disclosure of Hazardous Substances that will affect the performance of the Work after the execution of this Contract shall constitute a valid basis for a Change Order. Section 4.02 Review of Construction Documents. Chevron ES will prepare and submit all designs, drawings, and specifications to the Customer for review. Customer shall review the documents and provide any comments in writing to Chevron ES within fifteen (15) Business Days after receipt of documents; provided, however, that Customer may request, and Chevron ES shall grant, such additional time as may be reasonably necessary to review said documents. Chevron ES will incorporate appropriate Customer comments into the final designs, drawings, and specifications, as applicable. The terms and conditions of any permit approvals required for the Project will be provided. Chevron ES reserves the right to issue the designs, drawings, and specifications in phases to allow the construction to be performed in phases. If Customer fails either to provide written comments or to request additional time for review within the fifteen (15) Business Day period, Customer shall be deemed to have no comments regarding the documents. Section 4.03 Permits and Approvals. The respective obligations of the Parties in obtaining permits and approvals are as specified in Section 3.01. Customer shall agree to any nonmaterial changes to the designs, drawings, and specifications required by any governmental authority having jurisdiction over the Work. The Contract Amount provided for in the Scope of Work shall be increased by any additional cost incurred by Chevron ES due to a change required by a governmental authority and the time required to complete the Work pursuant to the Project Schedule will be increased by the number of additional days required to complete the Work because of a governmentally imposed change in the Project. Section 4.04 Changes During Final Design Phase. If during the design phase Customer requests changes and /or modifications to the Work identified in the Scope of Work and /or there are Material Changed Conditions, Customer shall be responsible for payment of the extra costs caused by such modifications and /or changes. Valid bases for additional compensation and /or Time extension include, but are not limited to: (i) Customer requests changes and /or modifications to the Project Scope of Work during the Project Design Phase; (ii) Customer caused delays during Chevron ES's design work; (iii) the discovery of subsurface or other site conditions that were not reasonably anticipated or disclosed as of the Contract Effective Date; (iv) the discovery of Hazardous Substances at or impacting the Project Location; (v) changes to the Scope of Work required to obtain certain permits; (vi) damage to any equipment or other Work installed by Chevron ES caused by the act or omission of Customer, its agents or employees; (vii) changes and /or modifications to Scope of Work ordered by any governmental authority having jurisdiction over the Project; and (viii) any other condition that would not reasonably have been anticipated by Chevron ES that modifies and /or changes the Scope of Work that increases the agreed upon Contract Amount or increases in the Time needed to complete the Work identified in the Scope of Work. ARTICLE 5. CONSTRUCTION PHASE. Section 5.01 General Provisions. Upon securing necessary permits, pursuant to Section 3.01, and completion of final Construction Documents by Customer, Chevron ES will commence the construction of the Project in accordance with the final Construction Documents. The construction will be performed by Chevron ES and /or one or more licensed subcontractors qualified to perform the Work. The construction will be performed in accordance with all Applicable Laws and Applicable Permits. Section 5.02 Chevron ES's Responsibilities During Construction Phase. (a) As an independent contractor to Customer, Chevron ES will be responsible for providing, or causing to be provided by Chevron ES's subcontractor(s), all labor, materials, equipment, tools, transportation, and other facilities and services necessary for the proper execution, construction, and completion of the Work as defined in the Scope of Work and any Change Orders. Chevron ES is hereby required to purchase in advance all necessary materials and supplies for the construction of the Project in order to assure the prompt and timely delivery of the completed Work pursuant to the Project Schedule. Chevron ES will also be responsible for all means, methods, techniques, sequences, and procedures employed for the construction required by the final Construction Documents. (b) Chevron ES will make commercially reasonable efforts to coordinate construction activities and perform the Work to minimize disruption to Customer's operations at the Project Location. Chevron ES will provide at least thirty (30) calendar days written notice to Customer of any planned power 1899451.5 Rev. Date: 6/13/12 Page 10 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company outages that will be necessary for the construction. Chevron ES will cooperate with Customer in scheduling such outages, and Customer agrees to provide its reasonable approval of any scheduled outage. (c) Chevron ES will be responsible for initiating and maintaining safety precautions and programs in connection with its construction of the Project. Chevron ES will take reasonable precautions for the safety of, and shall provide reasonable protection to prevent damage, injury, or loss to: (1) employees of Chevron ES and subcontractors performing Work under this Contract; (2) Chevron ES's property and other materials to be incorporated for the Project, under the care, custody, and control of Chevron ES or its subcontractors; and (3) other property at or adjacent to the Project Location not designated for removal, relocation, or replacement during the course of construction. Chevron ES will not be responsible for Customer's employees' safety unless Chevron ES's negligence in the performance of its Work is the proximate cause of the employee's injury. (d) Based on the final Construction Documents, Chevron ES will obtain required building permits for Project Construction. Customer will cooperate with Chevron ES in securing such permits. (e) Chevron ES will maintain in good order at the Project Location copies of the Scope of Work, all Change Orders, this Contract (with all Attachments), one record copy of all drawings, specifications, product data, samples, manufacturer's operation & maintenance manuals, and other pertinent construction - related documents. (f) Chevron ES shall provide notice to Customer of any scheduled test(s) of installed equipment, and Customer and /or its designees shall have the right to be present at any or all such tests conducted by Chevron ES, any subcontractor, and /or manufacturers of the equipment. Chevron ES shall be responsible for correcting and /or adjusting all deficiencies in systems and equipment operations that Chevron ES provided and installed that may be observed during equipment commissioning procedures. (g) The following duties shall be performed by Chevron ES: (i) Organize and conduct a pre- construction meeting with the Customer and each subcontractor. (ii) Organize and conduct regularly scheduled progress meetings throughout the installation period. (iii) Schedule and manage all subcontractors and related work. (iv) Provide the Customer a single point of contact and responsibility for all Work related to the Project. (v) Investigate and resolve design, construction, and field issues as they arise during the Project (vi) Coordinate on -site Work, and schedule accordingly with Customer. (vii) Perform progress inspections throughout the installation period. Provide the Customer and subcontractor with results of findings. (viii) Identify any existing Customer equipment that is found during implementation of the Work not to be functioning properly, and notify in writing to Customer. (ix) Provide regular status reports to the Customer. (x) When appropriate, initiate a thorough inspection of the Work with the Customer and subcontractor to obtain Substantial Completion. (xi) Check, test, and start -up each item of equipment. (xii) Perform a point -by -point hardware commissioning of the Chevron ES installed energy management system. Identify any EMS items that are not functioning properly, and include on the punch list. (xiii) Identify any existing Customer equipment that is found during EMS commissioning not to be functioning properly, and notify in writing to Customer. 1899451.5 Rev. Date: 6/13/12 Page 11 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company (xiv) Perform a complete software /programming commissioning of the energy management system. Identify any EMS items that are not programmed per specification, and include on the punch list. (xv) With the Customer and subcontractor, perform final inspection of the Work. (xvi) Review subcontractor invoices and authorize payment as appropriate. (xvii) Obtain /prepare final as -built documentation for the Project, and deliver to the Customer. Documentation shall include O &M manuals as appropriate, warranty information, and as- built drawings and related information. Section 5.03 Customer's Responsibilities During Construction Phase. (a) Customer shall designate a single -point representative authorized to act on Customer's behalf with respect to Project construction and /or equipment installation. Customer may from time to time change the designated representative and shall provide notice to Chevron ES of such change. Any independent review of the construction shall be undertaken at Customer's sole expense, and it shall be performed in a timely manner so as to not unreasonably delay the orderly progress of Chevron ES's Work. Any independent review of the construction by Customer shall not relieve Chevron ES of any of its obligations or responsibilities hereunder. (b) Customer shall provide a temporary staging area for Chevron ES, or its subcontractors, to use during the construction phase to store and assemble equipment for completion of the Work, if needed. Customer will provide sufficient space at the Facilities for the performance of the Work and the installation, storage, and operation of any equipment and materials and will take reasonable steps to protect any such equipment and materials from harm, theft and misuse. Customer shall provide access to the Facilities, including parking permits and identification tags, for Chevron ES and subcontractors to perform the Work hereunder during regular business hours, or such other reasonable hours as may be requested by Chevron ES and acceptable to Customer. The Customer shall also either provide a set or sets of keys to Chevron ES and its subcontractors (signed out per Customer policy) or provide a readily available security escort to unlock and lock doors. Customer shall not unreasonably restrict Chevron ES's access to Facilities to make emergency repairs or corrections as it may determine are needed. (c) Customer shall remain responsible for the maintenance of the portion of the Project Location that is not directly affected by Chevron ES's Work. Customer shall keep the designated Project Location and staging area for the Project free of obstructions, waste, and materials within the control of Customer. (d) Customer shall be solely responsible for obtaining any required environmental clearance from and any special permits required by any federal, state, and local jurisdictions, including but not limited to any clearances required under CEQA, prior to scheduled construction start date. (e) Customer shall be responsible for the preparation of the designated Project Location site for construction, including, but not limited to, clearance of all above and below ground obstructions, such as vegetation, buildings, appurtenances, and utilities. Subsurface conditions and obstacles (buried pipe, utilities, etc.) that are not otherwise previously and accurately documented by Customer and such documentation made available to Chevron ES are the responsibility of the Customer. If Chevron ES encounters such unforeseen conditions in the performance of the Work, Chevron ES will be entitled to a Change Order providing for additional compensation, an extension of Time and a revision of the Project Schedule. (f) Customer shall be solely responsible for the removal of any Hazardous Substances either known to Customer prior to the commencement of the Work or encountered by Chevron ES during the construction of the Project, if necessary in order for the Work to progress safely, that was not knowingly released or brought to the site by Chevron ES. Chevron ES will respond to the discovery of Hazardous Substances at or around the Project Location during the course of Chevron ES's construction in accordance with Section 5.06. (g) Customer shall coordinate the Work to be performed by Chevron ES with its own operations and with any other construction project that is ongoing at or around the Project Location, with the exception that Chevron ES will coordinate the Interconnection Facilities work, if any, that will be performed by the local utility. 1899451.5 Rev. Date: 6/13/12 Page 12 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company (h) Customer shall allow Chevron ES and its subcontractors access to and reasonable use of necessary quantities of Customer's water and other utilities, including electrical power, as needed for the construction of the Work, at no extra cost to Chevron ES. (i) Customer will provide Chevron ES and /or its subcontractors with reasonable access to the Project Location to perform the Work, including without limitation and at no extra cost to Chevron ES, access to perform Work on Saturdays, Sundays, legal holidays, and non - regular working hours. Q) The Customer shall also do the following: (i) Attend the regularly scheduled progress meetings. Participate as needed regarding scheduling of the Work. (ii) When appropriate, participate in the job inspection walk- through with Chevron ES and the subcontractor to determine Substantial Completion or beneficial use of major equipment. Sign the Certificate of Substantial Completion, as appropriate. (iii) Perform a final walk- through of the Project. Upon receipt of the O &M Manuals and as- built drawings, sign the certificate of Final Completion for the related Work. (iv) The Customer is encouraged to provide a staff member(s) (HVAC technician, etc.) to accompany Chevron ES during the EMS Commissioning. This is an excellent opportunity to learn in -depth the operation and installation of the EMS. (v) Provide knowledgeable staff to participate in the training programs, which will be scheduled in advance for proper coordination. (vi) Upon the completion of the entire Scope of Work listed in Attachment D, including training, and submission of close -out documents, sign a certificate of Final Completion for the entire Project. Section 5.04 Changes During Construction. (a) Change Orders Generally. Changes and /or modifications to the Scope of Work shall be authorized by a written Change Order signed by both Customer and Chevron ES. The Change Order shall state the change and /or modification to the Scope of Work, any additional compensation to be paid, or extension of Time, if needed, to Chevron ES to perform such change and /or modification. Chevron ES may, at its election, suspend performance of that portion of the Work affected by any proposed Change Order until an agreement has been reached with the Customer regarding the Change Order. Chevron ES will use its reasonable efforts to continue other portions of the Work not affected or impacted by such proposed Change Order until such time as the Change Order is resolved. In addition, if Customer requests a proposal from Chevron ES for a change to the Scope of Work and Customer subsequently elects to not proceed with such change, Customer agrees that a Change Order shall be issued to reimburse Chevron ES for any costs reasonably incurred for estimating services, design services, and /or preparation of the proposal requested by the Customer. (b) Change Orders Requiring Additional Compensation. If during construction Customer requests changes and /or modifications to the Work identified in the Scope of Work, there are Excusable Delays, and /or there are Material Changed Conditions, Customer shall be responsible for payment of the extra costs caused by such modifications and /or changes and Chevron ES shall be entitled to additional compensation for the following reasons, that include, but are not limited to: (1) Customer requests changes and /or modifications to the Scope of Work during the construction phase of the Project; (2) Customer caused delays during Chevron ES's construction work; (3) discovery of subsurface or other site conditions that were not reasonably anticipated or disclosed prior to the commencement of the Work; (4) discovery of Hazardous Substances at or impacting the Project Location; (5) changes and /or modifications to the Scope of Work required to obtain required permits and approvals as required by any governmental authority having jurisdiction over the Project; (6) damage to any equipment or other Work installed by Chevron ES caused by the act or omission of Customer, its agents or employees; (7) changes and /or modifications to Scope of Work ordered by any Governmental Authority having jurisdiction over the Project; and (8) any other condition that would not reasonably have been anticipated by Chevron ES, that modifies and /or changes the Scope of Work or the Contract Amount. (c) Change Orders Requiring Additional Time / Excusable Delays. If during construction Customer requests changes and /or modifications to the Work identified in the Scope of Work and /or there are Material Changed Conditions, the Parties agree that a reasonable extension of Time to the Project 1899451.5 Rev. Date: 6/13/12 Page 13 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Schedule may be necessary to perform such modifications and /or changes. In addition, if Chevron ES is delayed at any time in the progress of the Work for any reason beyond its control, including, but not limited to, any Excusable Delay, then the targeted dates set forth in the Project Schedule shall be reasonably extended by a Change Order. Prior to the extension of such dates, Chevron ES will use reasonable efforts to make up such delays, including authorizing overtime payments; provided that Customer has issued a Change Order authorizing any such overtime payment and has specifically agreed to pay all costs, including administrative charges and expenses, associated therewith. (d) Material Changed Conditions/ Conditions Beyond Chevron ES's Control. Chevron ES will provide written notice to Customer of any Material Changed Condition and or any event of Force Majeure, within ten (10) Business Days of Chevron ES's first discovery of such Material Changed Condition or event of Force Majeure. In the event that Chevron ES's notice concerns unanticipated subsurface conditions, including soil conditions, or Hazardous Substances, Chevron ES will not disturb the condition until said notice has been given to Customer, and Customer has had a reasonable opportunity to investigate the condition. If there is a disagreement between Customer and Chevron ES as to whether a Change Order should be issued and executed because of the Material Changed Condition and /or condition beyond Chevron ES's control, those disputes shall be resolved in accordance with the provisions of ARTICLE 23. Pending the resolution of any dispute between Chevron ES and Customer concerning a Material Changed Condition and /or change beyond Chevron ES's control, Chevron ES reserves the right to suspend Work pending the resolution of the dispute. (e) Change Order — Savings Effect. Chevron ES shall calculate the energy impact of any Customer change orders. As applicable, the energy impact may change the projected savings level and the Guaranteed Energy Savings amount. Section 5.05 Minor Changes to Scope of Work. Chevron ES shall have authority to make minor changes that do not change the total Contract Amount and are consistent with the intent of the final Construction Documents, as amended by Change Order, without prior notice to Customer. Chevron ES will either promptly inform Customer, in writing, of any minor changes made during the implementation of the Project, or make available to Customer at the site a set of as -built drawings that will be kept current to show those minor changes. Section 5.06 Hazardous Substances (a) Chevron ES will promptly provide written notice to Customer if Chevron ES observes any Hazardous Substance, as defined herein, at or around the Facilities during the course of construction or installation of any equipment which have not been addressed as part of the Scope of Work. Chevron ES shall have no obligation to investigate the Facilities for the presence of Hazardous Substances prior to commencement of the Work unless otherwise specified in the Scope of Work. Customer shall be solely responsible for investigating Hazardous Substances and determining the appropriate removal and remediation measures with respect to the Hazardous Substances. Customer shall be responsible for complying with all Applicable Laws with respect to the identification, removal and proper disposal of any Hazardous Substances known or discovered at or around the Facilities, and in such connection shall execute all generator manifests with respect thereto. Chevron ES shall comply with all Applicable Laws in connection with the use, handling, and disposal of any Hazardous Substances in the performance of its Work. In connection with the foregoing, Customer shall provide Chevron ES, within ten (10) Business Days of the execution of this Contract, a written statement that represents and warrants (i) whether or not, to its knowledge, there are Hazardous Substances either on or within the walls, ceiling or other structural components, or otherwise located in the Work area, including, but not limited to, asbestos - containing materials; (ii) whether or not, to its knowledge, conditions or situations exist at the Facilities which are subject to special precautions or equipment required by federal, state, or local health or safety regulations; and (iii) whether or not, to its knowledge, there are unsafe working conditions at the Facilities. (b) Customer shall indemnify, defend, and hold Chevron ES harmless from and against any and all Losses that in any way result from or arise under from such Customer owned or generated Hazardous Substances, except for liabilities due to the negligence or willful misconduct of Chevron ES, or its subcontractors, agents or representatives, in the handling, disturbance or release of Hazardous Substances. This indemnification shall survive any termination of this Contract. Section 5.07 Pre - Existing Conditions. Certain pre- existing conditions may be present within the Customer's facilities that (i) are non - compliant with applicable codes, (ii) may become non - compliant with applicable codes upon completion of Chevron ES's Work, (iii) may cause Chevron ES's completed Work to be non - compliant 1899451.5 Rev. Date: 6/13/12 Page 14 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company with applicable codes, (iv) may prevent the Customer from realizing the full benefits of Chevron ES's Work, (v) may present a safety or equipment hazard, or (vi) are otherwise outside the scope of Chevron ES's Work. Regardless of whether or not such conditions may have been readily identifiable prior to the commencement of Work, Chevron ES shall not be responsible for repairing such pre- existing conditions unless such is expressly provided for in the Scope of Work or an approved change thereto. Chevron ES, in its sole discretion, may determine whether it will bring said pre- existing conditions into compliance by agreeing to execute a change order with the Customer for additional compensation and, if appropriate, an extension of time. Examples of pre- existing conditions include, but are not limited to, the following: (a) With respect to lighting equipment maintenance and /or lamp and ballast retrofitting, the Customer shall be responsible for properly grounding lighting fixtures before Chevron ES commences Work in compliance with applicable codes. (b) With respect to installation of new lighting fixture installations, prior to commencement of the lighting fixture installation, the Customer shall be responsible for providing an existing or new grounding conductor or solidly grounded raceway with listed fittings at the lighting fixture junction box that is properly connected to the facility grounding electrode system in compliance with the latest NEC. Chevron ES's Scope of Work shall include properly terminating the lighting fixtures to the existing grounding conductor or to the existing solidly grounded raceway with listed fittings at the lighting fixture junction box. (c) Where Chevron ES's Scope of Work includes pulling new wiring for lighting fixtures from an existing lighting panel, a grounding conductor shall be included in the lighting circuits. The Customer is responsible for providing an existing or new grounding conductor terminal bar at the lighting panel that is properly connected to the facility grounding electrode system in compliance with the latest NEC. (d) With respect to Chevron ES Projects with new equipment connecting to the facility's existing electrical distribution system, Chevron ES shall not be responsible for the electrical integrity of the existing electrical system, e.g., the condition and proper termination of current - carrying, grounded, and grounding conductors, bus taps, protective elements, the proper protection of existing wire through knockouts, or missing components. The Customer is responsible for providing and maintaining the facility's electrical distribution system that meets the latest NEC and guidelines. (e) Chevron ES is not responsible for repairing or replacing existing damaged, blocked, or leaky ductwork, or cleaning dirt or mildew. (f) Chevron ES shall not be responsible for existing damaged pipes, valves, and related parts and components due to a lack of water treatment. (g) Existing pneumatic control systems that remain in place shall be properly maintained (use of air dryer, clean filter, etc.) by the Customer such that oil or moisture does not reach the control and operating devices. (h) Unless specifically included in the Scope of Work, existing valves, dampers, linkages, and piping specialties to which new controls /building automation system are being connected are to be in proper functioning condition. If existing device is found to be improperly functioning, Customer may repair or compensate Chevron ES for repair / replacement of the device. ARTICLE 6. PROJECT COMPLETION. Section 6.01 Substantial Completion / Occupancy. At the time any Constructed Improvement is Substantially Complete in conformance with the Scope of Work and Construction Documents, Chevron ES will supply to Customer a written Certificate of Substantial Completion. Customer shall within fifteen (15) Business Days of receipt of the Certificate of Substantial Completion, review the Constructed Improvement for the sole purpose of determining that it is substantially complete and in substantial conformance with the Scope of Work, final Construction Documents and any Change Orders. If Customer determines that any Constructed Improvement is incomplete and /or defective, Customer shall promptly notify Chevron ES in writing of such incomplete and /or defective Constructed Improvement, itemizing and describing such remaining items with reasonable particularity. Chevron ES will take immediate steps to complete any incomplete items or remedy defective items or other deficiencies, after which Chevron ES shall provide written notice to Customer that the Constructed Improvement is fully complete. Chevron ES must correct all punch list items within fifteen (15) Business Days after issuance of the punch list or provide a reasonable schedule for correction of all such items that cannot be corrected within such time period. Customer shall re- inspect all Constructed Improvements completed or remedied by Chevron ES within fifteen (15) Business Days of Chevron ES's notice that the Constructed Improvement is complete. When the Customer agrees that the Constructed Improvement is fully completed in accordance with the Scope of Work, Customer will 1899451.5 Rev. Date: 6/13/12 Page 15 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company sign and return the Certificate of Substantial Completion to Chevron ES acknowledging and agreeing: (i) that the Constructed Improvement is substantially complete in accordance with the Scope of Work so Customer can occupy or utilize the Constructed Improvement for its intended use; (ii) the date of such Substantial Completion; (iii) that from the date of Substantial Completion, Customer will assume responsibility for the security of, insurance coverage for, maintenance, utilities for, and damage to or destruction of the Constructed Improvement. Customer agrees that approval of the Certificate of Substantial Completion shall not be unreasonably withheld, delayed or conditioned. Prior to Substantial Completion, the City reserves the right to occupy or use any part or parts or the entirety of the Constructed Improvement upon receipt of notice by Chevron ES that it is safe to do so, provided that such occupancy and /or use shall not interfere with the performance of the Work by Chevron ES and its subcontractors. Subject to applicable law, exercising this right will in no way constitute acceptance of any part of the Work so occupied or used, or acceptance of the entire Work, nor will such occupancy or use in any way affect the times when payments will become due Chevron ES, nor will such occupancy or use in any way prejudice the City's rights under the Contract, and Contract Bonds, or at law or equity. Section 6.02 Partial Acceptance. At the time that Chevron ES has completed any Constructed Improvement, received a Certificate of Substantial Completion from Customer for said Constructed Improvement, and has fully fulfilled the requirements for permit close out of said Constructed Improvement, the Customer shall accept that portion of the Work and pay Chevron ES for said portion of the Work less the required Retainage. Subject to applicable law, exercising this right will in no way constitute Final Completion of any part of the Work so occupied or used, or acceptance of the entire Work, nor will Partial Acceptance of any portion of the Work in any way prejudice the Customer's rights under the Contract, and Contract Bonds, or at law or equity. Section 6.03 Final Completion /Reduction of Retainage. When Chevron ES considers the Work to be fully complete in accordance with the Scope of Work, Chevron ES will notify the Customer that the Work is fully complete and ready for final inspection. All finished Work will be subject to inspection and acceptance or rejection by Customer, Project Manager, and other government agencies having jurisdiction over the Work. Administrative DSA closeout shall not be a condition to achieving Final Completion. The Customer shall inspect the Work to verify the status of Final Completion within twenty (20) Business Days after its receipt of Chevron ES's certification that the Work is complete. If Customer determines that any Work is incomplete and /or defective, the Customer shall promptly notify Chevron ES in writing of such incomplete and /or defective Work, itemizing and describing such remaining items with reasonable particularity. Chevron ES will take immediate steps to complete any incomplete items or remedy defective items or other deficiencies, after which Chevron ES shall provide written notice to the Customer that the Work is fully complete. Chevron ES must correct all punch list items within fifteen (15) Business Days after issuance of the punch list or provide a reasonable schedule for correction of all such items that cannot be corrected within such time period. Customer shall re- inspect all Work completed or remedied by Chevron ES within fifteen (15) Business Days of Chevron ES's notice that the Work is complete. When the Customer agrees that the Work is fully completed in accordance with the Scope of Work, and upon acceptance of the Work by the Dublin City Council, Customer shall give Chevron ES written notice of acceptance of the Work and Final Completion and will issue a certificate of Final Completion to Chevron ES. If the Work is not accepted by the Dublin City Council within forty -five (45) days from the day that both Customer and Chevron ES agree that Work is complete, then the Work shall be deemed fully complete, unless the work has been rejected by the Dublin City Council. At that time, Customer shall pay Chevron ES any remaining Contract Amount due with the exception of the required Retainage being withheld by the Customer for 30 days past the date of Final Completion. Customer agrees that issuance of the certificate of Final Completion shall not be unreasonably withheld, delayed or conditioned. Chevron ES agrees that Chevron ES must submit: one set of reproducible mylars of the Project Record Drawings (As- builts), any equipment operating and maintenance instructions and data, and all required warranties before acceptance of the Work will occur. The fact that the Work and materials have been inspected from time to time and that progress payments have been made does not relieve Chevron ES of the responsibility of replacing and making good any defective or omitted work or materials in accordance with the requirements of the Contract. Title to any and all of the materials and equipment installed shall pass from Chevron ES to Customer upon the date of Final Completion, and Customer shall promptly thereafter record a notice of completion or notice of acceptance in the office of the county recorder in accordance with California Civil Code §9204. ARTICLE 7. SUBCONTRACTORS Section 7.01 Authority to Subcontract. Chevron ES may delegate its duties and performance under this Contract, and shall have the right to enter into agreements with any subcontractors and other service or material providers as Chevron ES shall select in its discretion to perform the Work hereunder. Chevron ES shall not be required to enter into any subcontracts with parties whom Chevron ES has not selected or subcontractors whom Chevron ES has objection to using. 1899451.5 Rev. Date: 6/13/12 Page 16 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Section 7.02 Prompt Payment of Subcontractors. Chevron ES shall promptly pay, when due, all amounts payable for labor and materials furnished in the performance of this Contract so as to prevent any lien or other claim under any provision of the law from arising against any Customer property, against Chevron ES's rights to payments hereunder, or against Customer. Section 7.03 Responsibility. Chevron ES shall, at all times, be responsible for the negligent acts, errors and /or omissions of its subcontractors and agents. Nothing in this Contract shall constitute any contractual relationship between any others and the Customer or any obligation on the part of the Customer to pay, or to be responsible for the payment of, any sums to any Chevron ES subcontractors. Section 7.04 Prevailing Wages. All employees of Chevron ES and Chevron ES's subcontractors performing Work for this Project shall be paid the per diem prevailing wages for the employee's job classification in the locality in which the Work is performed, in accordance with the California Labor Code provisions on prevailing wages, commencing with Section 1720 et seq. Chevron ES and Chevron ES's subcontractors shall comply with all applicable requirements contained therein including, but not limited to, maintenance of certified payroll records pursuant to Labor Code section 1776. ARTICLE 8. PAYMENTS As full compensation for the performance of the Work and all of Chevron ES's obligations hereunder, Customer shall pay the Contract Amount to Chevron ES. Section 8.01 Monthly Progress Payments. Upon execution of this Contract, Chevron ES shall invoice the Customer for a design and engineering fee, as detailed on Attachment F. In addition, Chevron ES shall submit to the Customer for approval its request, in a form reasonably acceptable to Customer, for a monthly progress payment per the Draw Schedule in Attachment F. Section 8.02 Materials Stored Off -Site. In addition to the progress payments specified in Section 8.01, Chevron ES may invoice the Customer for materials purchased in advance and not stored at the Project Location. Each such invoice shall be accompanied by proof of off -site material purchases, evidence that the materials have been delivered to a warehouse reasonably acceptable to the Customer and evidence of appropriate insurance coverage. Chevron ES shall furnish to the Customer written consent from the Surety approving the advance payment for materials stored off site. The Customer shall pre -pay one hundred percent (100 %) of Chevron ES's invoice for the materials delivered, less Retainage as indicated in Section 8.02. Chevron ES shall protect stored materials from damage. Damaged materials, even though paid for, shall not be incorporated into the Work. Section 8.03 Retainage. The Customer, or their designee, shall approve and pay each Request for Payment, less a retainage amount ( "Retainage ") of five percent (5 %) in accordance with California Public Contract Code §7201, within thirty (30) calendar days after its receipt thereof; provided that there shall be no Retainage with respect to the design and engineering fee or the fee related to the Report. A failure to timely approve and pay a Request for Payment hereunder shall be a material default by Customer under this Contract. The Customer may, at its sole discretion, make progress payments in full without Retainage at any time after fifty percent (50 %) of the Work has been completed, as permitted pursuant to California Public Contract Code §9203. Section 8.04 Final Payment. The final Request for Payment may be made after Final Completion. Final Payment amount may also include payment to Chevron ES for any Retainage withheld by Customer. Retainage shall not be due to Chevron ES until 30 days have passed from achieving Final Completion. Customer may pay the Retainage prior to the required 30 days, provided that: Chevron ES has furnished to Customer an unconditional waiver and release from every subcontractor and supplier who has performed the Work in substantially the form set forth in California Civil Code section 3262(d)(4); no claim has been presented to the City by any person based upon any acts of omission of Chevron ES or any subcontractor engaged in performance of the Work; and Chevron ES's application for payment contains a written waiver of all claims against the City of which Chevron ES may not yet be asserted at the time of the submission of the application for payment. Section 8.05 Disputed Invoices /Late Payments. Customer may in good faith dispute any Request for Payment, or part thereof, within thirty (30) calendar days after the date the Request for Payment was rendered. In the event that Customer disputes all or a portion of any Request for Payment, Customer shall pay the undisputed portion when due and provide Chevron ES a written notice and explanation of the basis for the dispute and the amount of the Request for Payment being withheld related to the dispute. Customer shall be deemed to have waived and released any dispute known to it with respect to a bill if such notice and written explanation is not provided within thirty (30) calendar days after the date the Request for Payment was rendered. If any amount disputed by Customer is finally determined to be due to Chevron ES, either by agreement between the Parties or as a result of dispute resolution pursuant to ARTICLE 23 below, it shall be paid to Chevron ES within ten (10) Business Days after such final determination, plus Interest, from the date billed or claimed until such amount is paid. 1899451.5 Rev. Date: 6/13/12 Page 17 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Section 8.06 Waiver of Liens. Upon request from Customer, Chevron ES shall provide Customer with progress payment waivers and releases for Work for which Customer has paid up to that date. Upon receipt by Chevron ES of final payment for the Work (including payment of all Retainage), Chevron ES will provide Customer with a final, unconditional waiver and release. Section 8.07 Rebate Programs. To the extent included in the Scope of Work, Chevron ES shall assist Customer in the preparation and submission to the applicable agencies of all applications and documentation necessary for the energy efficiency rebate, incentive, and /or loan program(s) ( "Incentive Funds ") shown on Attachment I. Chevron ES cannot guarantee that Customer will receive the Incentive Funds or any portion thereof; Chevron ES expressly disclaims any liability for Customer's failure to receive any portion of the Incentive Funds, and Customer acknowledges and agrees that Chevron ES shall have no liability for any failure to receive all or any portion of the Incentive Funds. Procurement, or lack thereof, of the Incentive Funds will not alter the Contract Amount of this Contract or the payment timeline associated with payment of the Contract Amount. ARTICLE 9. WARRANTY /LIMITATION OF LIABILITY Chevron ES warrants to Customer that material and equipment furnished under this Contract will be of good quality and new, unless otherwise specifically required or permitted by this Contract. Chevron ES further warrants that its workmanship provided hereunder, including its subcontractors' workmanship, shall be free of material defects for a period of one (1) year from the date of Substantial Completion as indicated on the executed Certificate of Substantial Completion, or the date of Beneficial Use as indicated on the executed Certificate of Beneficial Use ( "Chevron ES Warranty Period "). Notwithstanding the foregoing, the Chevron ES Warranty Period for workmanship, as provided herein, on any photovoltaic solar system shall be ten (10) years from the date of Substantial Completion or Beneficial Use of such solar system. All warranties hereunder, including without limitation those for defects in design, engineering, or construction, shall terminate on the last day of the Chevron ES Warranty Period; and thereafter, Chevron ES will have no liability for breach of any warranty pursuant to California Code of Civil Procedure § §337.15 and 338. Equipment and material warranties that exceed the Chevron ES Warranty Period shall be provided directly by the equipment and /or material manufacturers and such warranties shall be assigned directly to the Customer, after the Chevron ES Warranty Period. During the Chevron ES Warranty Period, Chevron ES shall be the Customer's agent in working with the equipment and material manufacturers in resolving any equipment or material warranty issues. Other than for lamps and ballasts, any material defects that are discovered within the Chevron ES Warranty Period, Chevron ES, or Chevron ES's subcontractors, will correct its defects, and /or Chevron ES will work with the equipment or material manufacturer as the Customer's agent to facilitate the manufacturer's correction of the equipment or material defect. For typical industry standard lamp and ballast failures during the Chevron ES Warranty Period, the Customer will replace such failed lamps /ballasts with replacement stock provided by Chevron ES, provided, however, that Customer shall return the failed lamps /ballasts to the manufacturer in order to ensure that sufficient quantities of replacement stock are available during the Chevron ES Warranty Period. Such warranty services shall be performed in a timely manner and at the reasonable convenience of the Customer. This warranty expressly excludes any remedy for damage or defect caused by improper use, improper or inadequate maintenance, operations of the installed equipment by users other than Chevron ES or its subcontractors, corrosion, erosion, deterioration, abuse, modifications or repairs not performed by an authorized Chevron ES subcontractor, improper operation, or normal wear and tear under normal usage. If a warranty issue arises on any equipment or material installed after the Chevron ES Warranty Period, and the equipment or material has a warranty period that exceeds the Chevron ES Warranty Period, the Customer shall contact the manufacturer directly to resolve such warranty issues and Customer acknowledges that the manufacturer shall have sole responsibility for such issues. In addition, Chevron ES warrants to Customer that the performance of the Work or any use, operation, maintenance or transfer of any equipment or materials furnished hereunder will not constitute patent or copyright infringement or improper use of other proprietary rights during the Chevron ES Warranty Period. In the event that there is a claim by any person which could result in an assertion by Customer that Chevron ES has breached this intellectual property warranty, Chevron ES may, at its sole discretion, (i) defend and indemnify Customer against such claim; (ii) obtain a license to use the intellectual property which is the subject of such claim; (iii) substitute for the intellectual property which is the subject of such claim other rights, in which event such substituted rights shall be warranted by Chevron ES pursuant to this intellectual property warranty; or (iv) remove the intellectual property which is the subject of such claim and pay to Customer an amount equal to the reduction in the value of the affected Work as a result of such removal. If Chevron ES defends a claim pursuant to clause (i) of the preceding sentence and such defense is unsuccessful, Chevron ES will take one of the actions described in clause (ii), (iii) or (iv) of the preceding sentence, and shall indemnify Customer against any damages arising from the claim. The obligations of Chevron ES under this paragraph shall be the sole remedy of Customer in the event of a breach by Chevron ES of this intellectual property warranty. EXCEPT FOR THE WARRANTIES PROVIDED IN THIS ARTICLE 9, CUSTOMER EXPRESSLY AGREES THAT CHEVRON ES MAKES NO OTHER WARRANTIES AND ASSUMES NO OTHER LIABILITIES, WHETHER IN CONTRACT OR IN TORT, IN CONNECTION WITH THE WORK PROVIDED HEREUNDER, WHETHER EXPRESS OR 1899451.5 Rev. Date: 6/13/12 Page 18 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company IMPLIED, IN LAW OR IN COMMUNICATION BETWEEN CHEVRON ES AND CUSTOMER. CHEVRON ES SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY IMPLIED WARRANTIES AGAINST INTELLECTUAL PROPERTY INFRINGEMENT. CUSTOMER SHALL HAVE NO REMEDIES AGAINST EITHER CHEVRON ES OR ANY CHEVRON ES SUBCONTRACTOR OR VENDOR FOR ANY DEFECTIVE WORK INSTALLED EXCEPT FOR THE REPAIR OR REPLACEMENT OF SUCH EQUIPMENT IN ACCORDANCE WITH THE WARRANTY INDICATED ABOVE. SPECIFICALLY, NEITHER CHEVRON ES, NOR CHEVRON ES'S SUBCONTRACTORS OR VENDORS, SHALL BE LIABLE TO CUSTOMER FOR LOSS OF PROFITS OR FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY. ARTICLE 10. OWNERSHIP OF CERTAIN PROPERTY AND EXISTING EQUIPMENT Section 10.01 Ownership of Certain Proprietary Property Rights. (a) Ownership: Except as expressly provided herein, Customer shall not, by virtue of this Contract, acquire any rights or interest in any formulas, patterns, devices, software, inventions or processes, copyrights, patents, trade secrets, other intellectual property rights, or similar items of property which are or may be used in connection with the Work. Chevron ES shall own all inventions, improvements, technical data, models, processes, methods, and information and all other work products developed or used in connection with the Work under this Contract, including all intellectual property rights therein. (b) License: Solely in connection with the Facilities, Chevron ES grants to Customer a limited, perpetual, royalty -free, non - transferrable license for any Chevron ES intellectual property rights necessary for Customer to operate, maintain, and repair any modifications or additions to Facilities, or equipment delivered, as a result of the Work. (c) Ownership and Use of Deliverables. All data, reports, proposals, plans, specifications, flow sheets, drawings, and other products of the Work furnished directly or indirectly, in writing or otherwise, to Customer by Chevron ES under this Contract shall remain Chevron ES's property and shall be used only in connection with the Work. (d) Confidentiality. Except as otherwise required by the California Public Records Act (California Government Code §§ 6250 et seq.), Customer may not duplicate or disclose to third parties any data, reports, proposals, plans, specifications, flow sheets, drawings, and other products of the Work, unless such third parties have entered into an appropriate agreement with Chevron ES, or with Chevron ES's written permission. Section 10.02 Ownership of any Existing Equipment. Ownership of any equipment and materials presently existing at the Facilities at the time of execution of this Contract shall remain the property of the Customer even if it is replaced or its operation made unnecessary by work performed by Chevron ES pursuant to this Contract. If applicable, Chevron ES shall advise Customer in writing of all equipment and materials that will be replaced at the Facilities and Customer shall, within five (5) Business Days of Chevron ES's notice, designate in writing to Chevron ES which replaced equipment and materials should not be disposed of off -site by Chevron ES (the "Retained Items "). Customer shall be responsible for and designate the location and storage for the Retained Items. Chevron ES shall be responsible for the disposal of replaced equipment and materials, except for the Retained Items. Chevron ES shall use commercially reasonable efforts to remove the Retained Items in such a manner as to avoid damage thereto, or if it is unreasonable to avoid damage altogether, to minimize the damage done. Chevron ES shall not be responsible for the removal and /or disposal of any Hazardous Substances except as required by the Scope of Work. ARTICLE 11. INDEMNIFICATION / INSURANCE / BONDS Section 11.01 Indemnification. To the full extent permitted by Applicable Laws, each Party shall indemnify, hold harmless, release and defend the other Party, its officials, officers, employees, volunteers and agents from and against any and all actions, claims, demands, damages, disabilities, fines, penalties, losses, costs, expenses (including consultants' and attorneys' fees and other defense expenses) and liabilities of any nature (including, but not limited to, penalties resulting from exposure to hazards in violation of the California Labor Code and liability for any accident or accidents resulting to any person or property as a result of inadequate protective devices for the prevention of accidents in connection with the performance of the Work.) ( "Losses ") that may be asserted by any person or entity, in whole or in part arising directly or indirectly out of that Party's performance or activities hereunder, including the performance or activities of other persons employed, subcontracted for, or utilized by that Party in the performance of this Contract, excepting liabilities due to the negligence or willful misconduct of the 1899451.5 Rev. Date: 6/13/12 Page 19 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company indemnified Party. This indemnification obligation shall continue to bind the Parties after the termination of this Contract. Section 11.02 Waiver of Consequential Damages and Limitation of Liability. The liability of a defaulting Party shall be limited to direct, actual damages only and all other damages and remedies are waived. Under no circumstances will either Party be liable to the other Party for any special, indirect, incidental, consequential or punitive damages, lost profits or business interruption damages, however caused and on any theory of liability. "Consequential damages" includes, but is not limited to, operational losses in the performance of business including lost revenues and any increase in operating expense, and any lost profits. It is expressly understood and agreed to by both Parties that each Party's liability to the other shall be limited to reimbursement of only those Losses arising solely from a Party's breach of this Contract, negligence or willful misconduct. Section 11.03 Chevron ES Insurance. Chevron ES shall maintain, or cause to be maintained, for the duration of this Contract, the insurance coverage outlined in (a) through (g) below, and all such other insurance as required by Applicable Law. Evidence of coverage will be provided to Customer via a Self Administered Claims Letter. (a) Workers' Compensation /Employers Liability for states in which Chevron ES is not a qualified self - insured. Limits as follows: Workers' Compensation: Statutory Employers Liability: Bodily Injury by accident $1,000,000 each accident Bodily Injury by disease $1,000,000 each employee Bodily Injury by disease $1,000,000 policy limit (b) Commercial General Liability insurance with limits of: $1,000,000 each occurrence for Bodily Injury and Property Damage $1,000,000 General Aggregate - other than Products /Completed Operations $1,000,000 Products /Completed Operations Aggregate $1,000,000 Personal & Advertising Injury $ 100,000 Damage to premises rented to Chevron ES Coverage to be written on a claims -made form. Coverage to be at least as broad as ISO form CG 002 (12/07), without endorsements that limit the policy terms with respect to: (1) the definition of an Insured Contract, (2) provisions for severability of interest, (3) explosion, collapse, underground hazard. (c) Auto Liability insurance for owned, hired and non -owned vehicles with limits of $1,000,000 per accident. Coverage to be written on an occurrence form. (d) Professional Liability insurance with limits of: $1,000,000 per occurrence $1,000,000 aggregate Coverage to be written on a claims -made form. (e) Excess Liability insurance. Limits as follows: $1,000,000 each occurrence $1,000,000 aggregate Coverage terms and limits to apply excess of the per occurrence and /or aggregate limits provided for Commercial General Liability and Professional Liability written on a claims made form. Coverage terms and limits also to apply in excess of those required for Employers Liability and Auto Liability written on an occurrence form. (f) Policy Endorsements. The insurance provided for Workers' Compensation and Employers' Liability above shall contain waivers of subrogation rights against Customer. The insurance provided for Commercial General Liability and Auto Liability above shall: (i) include the Customer as an additional insured with respect to Work performed under this Contract but only to the extent of the indemnity obligations contained in this Contract, and 1899451.5 Rev. Date: 6/13/12 Page 20 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company (ii) provide that the insurance is primary coverage with respect to all insureds and shall not be considered contributory insurance with any insurance policies of the Customer. (g) In lieu of any insurances required in this Section 11.03, Chevron ES may self insure hereunder and use a Self Administered Claims Program for this purpose. Chevron ES will notify Customer in writing thirty (30) days prior to cancellation of the Self Administered Claims Program. Section 11.04 Performance and Payment Bonds. Prior to commencing Work under this Contract, Chevron ES shall furnish a performance bond in the form of Attachment A in an amount equal to one hundred percent (100 %) of the Contract Amount, and a payment bond in the form of Attachment B to guarantee payment of all claims for labor and materials furnished, in an amount equal to one hundred percent (100 %) of the Contract Amount (collectively, the "Contract Bonds "). The Contract Bonds shall be maintained in full force and effect until Final Completion; provided that upon the achievement of Substantial Completion, the value of the Contract Bonds shall be reduced to the value of the Retainage then being withheld by Customer. The Contract Bonds are not being furnished to cover the performance of any energy guaranty or guaranteed savings under this Contract. Customer agrees that upon Final Completion, the Contract Bonds shall be released and all obligations arising thereunder shall be terminated. ARTICLE 12. CONFLICTS OF INTEREST Conflicts of interest relating to this Contract are strictly prohibited. Except as otherwise expressly provided herein, neither Party nor any director, employee or agent of any Party shall give to or receive from any director, employee or agent of any other Party any gift, entertainment or other favor of significant value, or any commission, fee or rebate in connection with this Contract. Likewise, neither Party nor any director, employee or agent of any Party, shall without prior notification thereof to all Parties enter into any business relationship with any director, employee or agent of another Party or of any Affiliate of another Party, unless such person is acting for and on behalf of the other Party or any such Affiliate. A Party shall promptly notify the other Parties of any violation of this ARTICLE 12 and any consideration received as a result of such violation shall be paid over or credited to the Party against whom it was charged. Any representative of any Party, authorized by that Party, may audit the records of the other Parties related to this Contract, including the expense records of the Party's employees involved in this Contract, upon reasonable notice and during regular business hours, for the sole purpose of determining whether there has been compliance with this ARTICLE 12. ARTICLE 13. CREDIT Customer shall periodically provide to Chevron ES that financial information or security reasonably deemed necessary by Chevron ES to support any credit extension. If during the life of this Contract, the financial capacity of Customer becomes impaired or unsatisfactory to Chevron ES in the sole judgment of Chevron ES, advance cash payment or security satisfactory to Chevron ES shall be given by Customer on demand by Chevron ES and the Work may be withheld until such payment or security is received. ARTICLE 14. DOE GUIDELINES; ENERGY POLICY ACT Section 14.01 As authorized by §1605(b) of the Energy Policy Act of 1992 (42 U.S.C. §13385(6)) the U.S. Department of Energy has issued, and may issue in the future, guidelines for the voluntary reporting of Greenhouse Gas emissions ( "DOE Guidelines "). "Greenhouse Gases" shall mean those gases and other particles as defined in the DOE Guidelines. Customer hereby assigns and transfers to Chevron ES, and its Affiliates and assigns, any Greenhouse Gas emission reduction credits that result from the Work under this Contract. Section 14.02 Customer agrees that for the Work on the Project hereunder, Chevron ES shall be the "designer" as that term is identified in the Energy Policy Act of 2005, and Chevron ES shall have the exclusive right to report to any federal, state, or local agency, authority or other party, including without limitation under §179(b) of the Energy Policy Act of 2005, any tax benefit associated with the Work. Upon Final Completion, Customer agrees to execute a written allocation including a declaration related to Internal Revenue Code §179D. Chevron ES will prepare the declaration and all accompanying documentation. Chevron ES will be designated the §179D beneficiary. ARTICLE 15. AMERICAN RECOVERY AND REINVESTMENT ACT In the event Customer is using American Recovery and Reinvestment Act ( "ARRA ") funding, in whole or in part, to pay for the Scope of Work set forth in this Contract, Customer acknowledges and agrees that the supplies and services hereunder are being procured and purchased under state or local procurement laws and Chevron ES is a "vendor" or "contractor" hereunder. As such, Customer agrees that Chevron ES is not a recipient, grantee, awardee, subrecipient, subgrantee or subawardee of ARRA funds hereunder. In the event that after Contract execution the awarding agency or a court of proper jurisdiction determines that Chevron ES is a recipient, grantee, awardee, subrecipient, subgrantee or 1899451.5 Rev. Date: 6/13/12 Page 21 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company subawardee under the ARRA funded grant rather than a "vendor" or "contractor ", Chevron ES reserves the right to terminate this Contract at its discretion pursuant to the termination for convenience provision set forth in this Contract. Customer agrees to release, defend, indemnify, and hold Chevron ES harmless from and against any claims, costs, or damages arising out of or related to such a determination notwithstanding any other provisions in this Contract. ARTICLE 16. TRADE SECRETS If any materials or information provided by Chevron ES to Customer under this Contract are designated by Chevron ES as a "trade secret" or otherwise designated by Chevron ES as exempt from disclosure under the Public Records Act (California Government Code §6250 et seq., the "Act ") and in the event a third party makes a request for disclosure of the materials under the Act, as soon as practical (but not later than five (5) calendar days) after the City determines that such materials or information provided by Chevron are responsive to said request for disclosure, Customer shall notify Chevron ES of such request and advise Chevron ES whether Customer believes that there is a reasonable possibility that the materials may not be exempt from disclosure. To the extent consistent with Customer's statutory obligations under the Act, Customer (i) shall consider advice from Chevron ES as to whether said materials or information are exempt from disclosure as trade secrets and (ii) shall refrain from any disclosure of such materials or information until Chevron ES has had a reasonable opportunity to seek injunctive relief against such disclosure from any court of competent jurisdiction. Notwithstanding the foregoing, in no event shall Customer be required by this Agreement to fail to satisfy its obligation to provide non - exempt public records to requesters within the time frames provided for in the Act. ARTICLE 17. DATA PRIVACY Chevron ES and Customer agree that it is not anticipated that any personal data will be processed by Customer on behalf of Chevron ES under or as a result of this Contract (other than as contained within the terms of the Contract). If Customer begins to process personal data on behalf of Chevron ES, Customer will immediately notify Chevron ES and the Parties will incorporate appropriate data protection provisions into this Contract. ARTICLE 18. EXPORT CONTROL; PROHIBITED PARTIES Section 18.01 The Parties understand and acknowledge that confidential information exchanged under this Contract may be subject to compliance with any and all applicable United States laws, regulations, or orders, including those that may relate to the export of technical data. The Parties agree to comply with all such laws, regulations, and orders, including, if applicable, all requirements of the International Traffic in Arms regulations and /or the Export Administration Act, as may be amended. Each Party further agrees to comply with any export license requirements that govern the export, re- export, transfer, or release of confidential information provided hereunder. Each Party agrees to provide an Export Classification Number (ECCN) or USML Classification Number to the receiving Party in writing for all confidential information that is classified with an Export Control Classification Number (ECCN) other than EAR99 or is classified on the USML. The ECCN and USML Classification, if required shall be provided at the time the confidential information is provided to the receiving Party. If a disclosing Party provides confidential information subject to the terms of an export license or other export authorization, the disclosing Party shall notify the receiving Party in writing of any restrictions on the use, transfer, distribution, or re- export of the confidential information contained in said export license or authorization. Chevron ES and its Affiliates shall not be obligated to perform any obligations hereunder if and to the extent that any such performance is prohibited by or contrary to any applicable U.S. laws or regulations, including U.S. export regulations. An entity is deemed to "control" another if it owns directly or indirectly at least fifty percent of either of the shares entitled to vote at a general election of directors of such other entity or the voting interest in such other entity if such entity does not have either shares or directors. Section 18.02 Chevron ES is a United States company with a policy requiring it to comply with all applicable laws, including economic sanctions and trade restrictions imposed by the United States government. Chevron ES has undertaken to provide its parent organization with any information relevant to its potential involvement with any party that may be the target of such sanctions and restrictions. Accordingly, Customer shall provide Chevron ES with ninety (90) days advance notice of the names and addresses of any member of Customer's organization which may be any of the following: (a) The target of, or owned or subject to control by any country, institution, organization, entity or person that is the target of, economic sanctions and trade restrictions imposed by the United States government. (b) Debarred or otherwise excluded or declared ineligible to participate in United States government contracts or contracts, grants or other programs financed in whole or in part by the United States government. 1899451.5 Rev. Date: 6/13/12 Page 22 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company (c) Listed by the United States Departments of Commerce or State as an entity with which United States persons may not engage in export or re- export related transactions. ARTICLE 19. EVENTS OF DEFAULT Section 19.01 Events of Default by Customer. Each of the following events or conditions shall constitute an "Event of Default" by Customer: any failure by Customer to perform or comply with this Contract, including breach of any covenant contained herein, and such failure continues for thirty (30) calendar days after notice to Customer demanding that such failure to perform be cured; provided that (y) such failure to perform shall not be deemed a default hereunder if it is due to an event of Force Majeure pursuant to ARTICLE 21; and (z) if such cure cannot be effected in thirty (30) calendar days, Customer shall be deemed to have cured the default upon the commencement of a cure within thirty (30) calendar days and diligent subsequent completion thereof; or any representation or warranty furnished by Customer in this Contract which was false or misleading in any material respect when made; or (iii) any failure by Customer to pay any amount to Chevron ES which is not paid within ten (10) calendar days after written notice from Chevron ES that the amount is past due. Section 19.02 Events of Default by Chevron ES. Each of the following events or conditions shall constitute an "Event of Default" by Chevron ES: (i) any failure by Chevron ES to perform or comply with this Contract, including breach of any covenant contained herein, and such failure continues for thirty (30) calendar days after notice to Chevron ES demanding that such failure to perform be cured; provided that (i) such failure to perform shall not be deemed a default hereunder if it is due to an event of Force Majeure pursuant to ARTICLE 21, and (ii) if such cure cannot be effected in thirty (30) calendar days, Chevron ES shall be deemed to have cured the default upon the commencement of a cure within thirty (30) calendar days and diligent subsequent completion thereof; or (ii) any representation or warranty furnished by Chevron ES in this Contract which was false or misleading in any material respect when made. ARTICLE 20. REMEDIES UPON DEFAULT Section 20.01 Remedies upon Default by Customer. If an Event of Default by Customer occurs, Chevron ES will be entitled to obtain any available legal or equitable remedies through mediation proceedings instituted pursuant to ARTICLE 23 including, without limitation, terminating this Contract or recovering amounts due and unpaid by Customer, and /or damages which shall include Chevron ES's reasonable, actual, direct out -of- pocket losses incurred by reason of such Event of Default and any cost of funding; loss of anticipated payment obligations; legal fees and arbitration costs; and any payment or delivery required to have been on or before the date of the Event of Default and not made, including Interest on any sums due, and losses and costs incurred as a result of terminating this Contract and all costs and expenses reasonably incurred in exercising the foregoing remedies. Section 20.02 Remedies Upon Default by Chevron ES. If an Event of Default by Chevron ES occurs, Customer shall be entitled to obtain any available legal or equitable remedies through mediation proceedings instituted pursuant to ARTICLE 23, including, without limitation, terminating this Contract, or recovering amounts due and unpaid by Chevron ES and /or damages, which shall include Customer's reasonable, actual, direct out -of- pocket losses incurred by reason of such Event of Default and any cost of funding; loss of anticipated payment obligations; legal fees and arbitration costs; and any payment or delivery required to have been paid on or before the date of the Event of Default and not made, including interest on any sums due, and losses and costs incurred as a result of terminating this Contract and all costs and expenses reasonably incurred in exercising the foregoing remedies. ARTICLE 21. CONDITIONS BEYOND CONTROL OF THE PARTIES Section 21.01 Force Majeure Events. In the event that any Party is delayed in, or prevented from, performing or carrying out its obligations under this Contract by reason of any event of Force Majeure, such circumstance shall not constitute an Event of Default, and such Party shall be excused from performance hereunder and shall not be liable to any other Party for or on account of any loss, damage, injury or expense resulting from, or arising out of, such delay or prevention. Notwithstanding the foregoing, no Party shall be excused from any payment obligations under this Contract as a result of an event of Force Majeure. 1899451.5 Rev. Date: 6/13/12 Page 23 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Section 21.02 Utility Work. Customer expressly understands and agrees that the definition "Force Majeure" above also includes any Interconnection Facilities work that may need to be performed by the local Utility ( "Utility ") in order for Chevron ES to fully implement the Project. "Interconnection Facilities" shall mean any distribution or transmission lines and other facilities that may be required to connect equipment supplied under this Contract to an electrical distribution /transmission system owned and maintained by the Utility. Any Interconnection Facilities work that may be required will be performed by the Utility under the Interconnection Agreement. ARTICLE 22. ENERGY SAVINGS Section 22.01 Guaranteed Savings. (a) Savings Guarantee. In consideration of the payment of the Annual Guarantee Fee, and upon the terms and subject to the conditions set forth herein, Chevron ES warrants that the Customer will realize total EC Savings during the Energy Savings Term of not less than the total Guaranteed Savings (the "Savings Guarantee "), as the same may be adjusted from time to time for changes in Energy Rate Factors, Energy Use Factors and consequential revisions to the relevant Baseline. (b) Guarantee Payment. For any Measurement Period in which there is a Guarantee Shortfall, Chevron ES shall pay to the Customer, within thirty (30) calendar days after the acceptance by the Customer of the Energy Savings Report for such Measurement Period, the Guarantee Payment for that Measurement Period. (c) Services or Retrofits in Lieu of Guarantee Payment. If in the judgment of the Customer, Customer would benefit from additional energy services or energy saving retrofits, Customer and Chevron ES may mutually agree that Chevron ES will provide such services or retrofits in lieu of the Guarantee Payment for such Measurement Period. For the purposes of this Contract, such services or retrofits will have a deemed value equal to the Guarantee Shortfall for that Measurement Period. (d) Excess Savings Claw -Back. For any Measurement Period in which there are Excess Savings, the Customer shall repay to Chevron ES, to the extent of such Excess Savings, any Guarantee Payments previously paid by Chevron ES to the Customer and not previously repaid to Chevron ES by the Customer, and the Excess Savings for such Measurement Period shall be reduced by the amount of such repayment. If Chevron ES has provided services or retrofits in lieu of the Guarantee Payment for a prior Measurement Period, such that the Guarantee Payment for such Measurement Period cannot be repaid by the Customer, then in lieu of such repayment Excess Savings shall be increased by the deemed value of such services or retrofits. (e) Force Majeure. In the event that Chevron ES is delayed in, or prevented from, accurately calculating the actual EC Savings for any day of any Measurement Period by reason of any event of Force Majeure, such circumstance shall not constitute a default, and Chevron ES shall be excused from performance under this ARTICLE 22 while such event of Force Majeure is continuing. During such Force Majeure event, Projected Energy Savings for the month(s) in which such Force Majeure is continuing shall be used in lieu of actual data; provided that if three (3) or more years of data are available for such month(s), the historical average of such data for such month(s) shall be used in lieu of Projected Energy Savings. (f) Average Energy Unit Savings. For any Measurement Period beginning with [0], upon completion of that Measurement Period's Energy Savings Report, Chevron ES has the right to calculate the Average Energy Unit Savings which have occurred over all previous Measurement Periods. The Average Energy Unit Savings shall be applied to all subsequent Measurement Periods to determine the Energy Unit Savings for each remaining Measurement Period. After applying such Average Energy Unit Savings for each subsequent Measurement Period and calculating the resulting EC Savings, if the sum of (i) such calculated EC Savings for any future Measurement Period plus (ii) the Annual Guarantee Fee for such Measurement Period is greater than the Guaranteed Savings for that Measurement Period, then such excess shall be Excess Savings and the Savings Guarantee shall have been met for that Measurement Period. If such sum of (i) calculated EC Savings for any future Measurement Period plus (ii) the Annual Guarantee Fee for such Measurement Period is less than the Guaranteed Savings for that Measurement Period, then Chevron ES will apply Accumulated Savings then outstanding to determine whether there is a Guarantee Shortfall for that Measurement Period. If a Guarantee Shortfall is calculated to exist for a future Measurement Period, Chevron ES may, in its sole discretion, pay to the Customer, not later than the ninetieth (90th) day of such future Measurement Period, the net present value of the Guarantee Shortfall for any or all of such future Measurement Period(s). Net present value will be determined using a discount rate of ten percent (10 %). 1899451.5 Rev. Date: 6/13/12 Page 24 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Section 22.02 Changes in Energy Use Factors. (a) Adjustments to Baselines. The Customer shall notify Chevron ES in writing within ten (10) business days of any change in any Energy Use Factor. In addition, data collected by Chevron ES during or before the Energy Savings Term may indicate a change in the energy use pattern at the Facilities or any portion thereof and require a change to one or more Baselines. Chevron ES will determine the effect that any such change will have on EC Savings and present to the Customer a written analysis of the effects of such changes. Chevron ES will also make corresponding revisions to the Baselines and /or EC Savings that it deems appropriate in its reasonable discretion. (b) Adjustments to Guaranteed Savings. If a change in any Energy Rate Factor or Energy Use Factor results in a reduction of EC Savings, then the Guaranteed Savings for the corresponding Measurement Period(s) will be decreased by the same amount. Chevron ES shall notify the Customer, in writing, of all such changes. (c) Changes to Facilities. Customer or Chevron ES may from time to time propose to make changes to the Facilities for the express purpose of increasing EC Savings or addressing Force Majeure events. It is agreed that these changes will only be made with the written consent of both Parties, which will not be unreasonably withheld. The Baseline will not be adjusted to reflect any changes agreed to under this Section 22.02(c). (d) Unilateral Baseline Adjustment. If Chevron ES proposes changes to the Facilities that would not unreasonably interfere with the conduct of Customer's business or cause the Customer to incur additional costs, and the Customer does not consent to the changes, then Chevron ES will adjust the Baselines upward by the amount of savings projected from the changes. (e) Protected Energy Savings. During the Energy Savings Term, when the ultimate effect of the Work on EC Savings cannot be accurately determined due to pending construction or changes to the Scope of Work, Projected Energy Savings for the Facilities will be used until the effect of the changes can be determined by Chevron ES. (f) Assessment Work. Chevron ES has the right to charge the Customer for Assessment Work, which will be billed at current Chevron ES engineering rates and shall be paid by the Customer within thirty (30) calendar days after receiving Chevron ES's invoice. Before initiating Assessment Work, Chevron ES will notify the Customer in writing of the intent and estimated cost associated with the Assessment Work. The Customer will, within forty -five (45) calendar days, give Chevron ES written permission to proceed or, alternatively at no charge to Chevron ES, to stipulate that the Projected Energy Savings for the portion of the Facility in question be used for the purpose of meeting the Savings Guarantee for such Measurement Period and thereafter. If Chevron ES does not receive written notice within forty -five (45) calendar days, the Projected Energy Savings for the portion of the Facility in question will be used until such time as the Customer approves the Assessment Work. (g) Changes in Energy Use Factors. If the Customer fails to notify Chevron ES of changes in Energy Use Factors or fails to supply Chevron ES in a timely manner with information that is requested by Chevron ES for the calculation of EC Savings, the Energy Unit Savings for the relevant Measurement Period will be deemed equal to the corresponding Projected Energy Savings for such period. If information for the relevant Measurement Period is supplied at a later date, the Energy Unit Savings will be modified only if and to the extent that the calculated savings for such period exceed the Projected Energy Savings for such period. (h) Changes in Savings Calculations. Any changes made by Chevron ES to the savings calculations shall be presented to the Customer in advance. The Customer shall have thirty (30) calendar days to challenge or question the changes in writing. (i) Inspection of Facilities. The Customer agrees that Chevron ES shall have the right, with or without prior notice, to inspect the Facilities to determine if the Customer has consistently complied with its obligations as set forth above. In the event that any inspection discloses that the Customer has failed, on or prior to the date of such inspection, to be in compliance with any of its obligations, then the Guaranteed Savings shall be assumed to have been achieved for the portion of the Energy Savings Term during which such failure shall have existed. Section 22.03 Customer Maintenance. Beginning at Substantial Completion for any portion of the Work, the Customer shall maintain such portion of the Work, and upon Final Completion shall maintain the Project, in accordance with the maintenance schedules and procedures recommended by Chevron ES and by the manufacturers of the relevant equipment. 1899451.5 Rev. Date: 6/13/12 Page 25 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Section 22.04 Energy Savings Report. Annually during the Energy Savings Term, Chevron ES shall submit to the Customer an energy savings report containing a precise calculation of the EC Savings during the applicable Measurement Period (an "Energy Savings Report "). The Energy Savings Report shall be submitted within ninety (90) calendar days after receipt of all needed information for a Measurement Period, unless additional information is needed to accurately calculate the EC Savings, in which case the Customer shall be notified of such a situation within the ninety (90) calendar -day period. Section 22.05 On -Site Measurements. The Customer irrevocably grants to Chevron ES the right, during the Energy Savings Term, to monitor EC Savings and energy management performance by conducting on -site measurements, including, but not limited to, reading meters and installing and observing on -site monitoring equipment. Chevron ES shall not exercise such right in a manner that unreasonably interferes with the business of Customer as conducted at the Facilities as of the date hereof. The Customer shall cooperate fully with the exercise of such right by Chevron ES pursuant to this Section 22.05. Customer shall further cooperate with Chevron ES's performance of the Savings Measurement and Verification Plan by providing utility information, changes in Energy Use Factors, and /or additional information as reasonably requested by Chevron ES. Section 22.06 Internet Communication Path. At Chevron ES's request, to facilitate Chevron ES's monitoring of the Work, Customer shall open an internet communication path between Customer's energy management system(s) and Chevron ES's office in Overland Park, Kansas. Customer shall provide, at Customer's expense, all networking, telecommunication, encryption, and security hardware and /or software Chevron ES deems necessary to achieve such communication path, as well as any similar hardware, software, or encryption devices necessary for use at Chevron ES's office. Chevron ES will provide the customer with the precise locations for network communication ports within Customer's Facilities. Customer agrees not to charge Chevron ES to install or maintain such communication paths. Section 22.07 Termination of Guaranteed Savings. If (i) the Customer notifies Chevron ES in writing of its intent to terminate the Savings Guarantee, (ii) this Contract is terminated by Chevron ES for default by Customer or by Customer for any reason permitted by this Contract or (iii) the Customer fails to maintain the Project in accordance with Section 22.03 or is in default of any of its other obligations under this ARTICLE 22, the obligation of Chevron ES to prepare and deliver the Energy Savings Report and to make a Guarantee Payment shall also be terminated. If such termination occurs on a date other than the last day of a Measurement Period, Chevron ES shall have no obligation to make a Guarantee Payment or prepare and deliver an Energy Savings Report for such Measurement Period. Section 22.08 Annual Guarantee Fee. (a) Invoicing and Payment. The Annual Guarantee Fee for the first Measurement Period shall be invoiced by Chevron ES to the Customer in a lump sum on the M &V Commencement Date. All subsequent Annual Guarantee Fees will be invoiced by Chevron ES on the first day of the corresponding Measurement Period. The Customer, or its designee, shall pay Chevron ES such Annual Guarantee Fee, without any retention amount withheld, within thirty (30) calendar days after its receipt of the corresponding invoice. Unless the Customer gives Chevron ES prior written notice of its intent to terminate the Savings Guarantee, any failure to timely pay the Annual Guarantee Fee in accordance with this Section 22.08(a) shall be a material default by Customer under this Contract, and Chevron ES, in addition to any other legal, contractual and equitable remedies available to it, shall have no obligation thereafter to make Guarantee Payments. (b) Any amount not paid when due shall, from and after the due date, bear Interest. Accrued and unpaid Interest on past due amounts (including Interest on past due Interest) shall be due and payable upon demand. (c) Not Refundable. The Annual Guarantee Fee is not refundable for any reason. Section 22.09 Calculations. (a) Calculation of Accumulated Savings. Accumulated Savings shall be increased, for any Measurement Period, by the amount of Excess Savings during such Measurement Period, and shall be decreased, for any Measurement Period, by the difference, to the extent positive, between (i) the Guaranteed Savings for such Measurement Period minus (ii) the EC Savings for such Measurement Period. For the avoidance of doubt, Accumulated Savings will not be reduced below zero. (b) Calculation of EC Savings. EC Savings for any Measurement Period will be equal to the sum, for such Measurement Period, of (i) the Energy Use Savings, plus (ii) the Stipulated Non - Energy Savings, [ plus (iii) the Fuel Switch Savings,] [ plus (iv) Energy Rate Reduction Savings,] in each case as adjusted for changes in Energy Use Factors during such Measurement Period. EC 1899451.5 Rev. Date: 6/13/12 Page 26 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Savings achieved during the Construction Period shall be included in the EC Savings for the first Measurement Period. (c) Calculation of Energy Use Savings. Energy Use Savings shall be calculated by Chevron ES as the product of (i) the Energy Unit Savings multiplied by (ii) the greater of (a) the applicable Base Energy Rate or (b) the applicable Actual Energy Rate. (d) Calculation of Excess Savings. From and after the M &V Commencement Date, Excess Savings shall be calculated by Chevron ES as the difference, to the extent positive, between (i) the EC Savings for the relevant Measurement Period minus (ii) the Guaranteed Savings for such Measurement Period. During the Construction Period, Excess Savings will be calculated by Chevron ES in the manner set forth in the Savings Measurement and Verification Plan. For the avoidance of doubt, Excess Savings will not be reduced below zero. (e) Calculation of Guarantee Shortfall. The Guarantee Shortfall, for any Measurement Period, shall be calculated by Chevron ES as the difference, to the extent positive, between (i) the Guaranteed Savings for such Measurement Period minus (ii) the sum of (a) EC Savings for such Measurement Period plus (b) Accumulated Savings then outstanding. (f) [Calculation of Energy Rate Reduction Savings. The Energy Rate Reduction Savings shall be calculated by Chevron ES as the product of (i) the Energy Rate Reduction Rate multiplied by (ii) the number of applicable units of energy, power, water, or other utility or commodity, consumed at the Facilities during that Measurement Period. For the avoidance of doubt, if the Actual Energy Rate exceeds the Base Energy Rate, the Energy Rate Reduction Savings will be zero.] (g) [Calculation of Fuel Switch Savings. Fuel Switch Savings shall be calculated by Chevron ES as the product of (i) the Fuel Switch Rate multiplied by (ii) the number of units of new fuel consumed for that Measurement Period.] ARTICLE 23. DISPUTE RESOLUTION Section 23.01 In the event of a dispute, claim, or controversy ( "Dispute ") arising out of or in connection with this Contract, the Parties shall endeavor to resolve amicably any Dispute in the ordinary course of business between the Parties' representatives. If Customer's and Chevron ES's representatives are unable to resolve the Dispute in the ordinary course of business, then the Dispute shall be referred to both Customer's and Chevron ES's senior management for resolution. If the Parties' senior management cannot resolve the Dispute within thirty (30) days of a Party's notice to the other Party that such Dispute should be taken to the Parties' senior management, then either Party may submit the Dispute to mediation governed by the Construction Industry Mediation Rules of the American Arbitration Association within sixty (60) days of a Party's notice to the other Party that such Dispute should be taken to the Parties' senior management. The request for mediation, if any, shall be submitted in writing to the American Arbitration Association and the other Party to the Contract. Each Party shall participate in the mediation process in good faith. The mediation process shall be concluded within 60 days of filing of the request for mediation. The date of termination of the mediation shall be determined by application of the mediation rules referenced above. If, at the conclusion of the mediation referenced in this Section 23.01, the Dispute is not resolved, or if neither party submits the Dispute to mediation within sixty (60) days of a Party's notice to the other Party that such Dispute should be taken to the Parties' senior management, then either Party may submit the Dispute to a court of competent jurisdiction. For purposes of clarity, the mediation process referenced herein shall be a condition precedent to either Party commencing litigation with respect to a Dispute. Pending resolution of any Dispute, each Party shall proceed with the performance of its undisputed obligations consistent with its respective position in the Dispute, including but not limited to payment of undisputed amounts. Section 23.02 Attorneys' Fees. The prevailing Party in any action or proceeding brought to enforce the terms of this Contract or arising out of this Contract may recover its reasonable costs and attorneys' fees expended in connection with such an action or arbitration proceeding from the other Party. ARTICLE 24. REPRESENTATIONS AND WARRANTIES Each Party warrants and represents to the other that: (i) it has all requisite power and authority to enter into this Contract, to perform its obligations hereunder and to consummate the transactions contemplated hereby; (ii) the execution, delivery, and performance of this Contract have been duly authorized by its governing body, or are in accordance with its organizational documents, and this Contract 1899451.5 Rev. Date: 6/13/12 Page 27 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company has been duly executed and delivered for it by the signatories so authorized, and constitutes its legal, valid, and binding obligation; the execution, delivery, and performance of this Contract will not breach or violate, or constitute a default under, its organizational documents or any contract, lease or instrument to which it is a party or by which it or its properties may be bound or affected; and (iv) it has not received any notice, nor to the best of its knowledge is there pending or threatened any notice, of any violation of any Applicable Laws, ordinances, regulations, rules, decrees, awards, permits or orders which would materially and adversely affect its ability to perform hereunder. ARTICLE 25. ASSIGNMENT Section 25.01 Except as provided in this ARTICLE 25, this Contract may not be assigned by either Party in whole or in part without the prior written consent of the other Party, which consent may not be unreasonably withheld or delayed. This Contract will be binding on, enforceable by, and inure to the benefit of, the Parties and their respective successors and permitted assigns. Any assignment made in contravention of this clause shall be void and unenforceable. Section 25.02 Assignment bV Chevron ES. Chevron ES may assign this Contract and all related contracts without the consent of Customer (i) to an Affiliate; (ii) to an entity that is controlled by, controls, or is under common control with Chevron ES; or (iii) pursuant to a merger, consolidation, transfer of substantially all its assets, or by operation of law. Chevron ES may also assign its rights, but not its obligations, under this Contract and all related contracts without the consent of Customer to (x) a lender providing financing to Chevron ES, or (y) a special purpose entity that is an Affiliate of or is controlled by such lender. ARTICLE 26. TERMINATION Section 26.01 Termination for Cause. If there is an Event of Default by either Party under this Contract, pursuant to the provisions of ARTICLE 12 unless such Event of Default has been cured within the applicable time periods for a cure set forth in such ARTICLE 12 in addition to the remedies provided for in ARTICLE 20 the non - defaulting Party may terminate this Contract by providing three (3) Business Days' notice to the defaulting Party in the case of a monetary default and ten (10) Business Days' notice to the defaulting Party in the case of a non - monetary default. Upon termination of this Contract, each Party shall promptly return to the other all papers, materials, and property of the other held by such Party in connection herewith. Each Party shall also assist the other in the orderly termination of this Contract and the transfer of all aspects hereof, tangible and intangible, as may be necessary for the orderly, non - disrupted business continuation of each Party. If this Contract is so terminated, Chevron ES shall be entitled to payment for Work satisfactorily performed, earned profit and overhead, and costs incurred in accordance with this Contract up to the date of termination. Section 26.02 Termination for Convenience. Both Chevron ES and Customer have the right to terminate this Contract upon mutual written agreement by both Parties hereto. If this Contract is so terminated by mutual agreement, Chevron ES shall be entitled to payment for all Work performed, earned profit and overhead, and costs incurred in accordance with this Contract up to the date of termination. ARTICLE 27. NOTICE Any notice required or permitted hereunder shall be deemed sufficient if given in writing and delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or delivered to a nationally recognized express mail service, charges prepaid, receipt obtained, to the address shown below or to such other persons or addresses as are specified by similar notice. TO CHEVRON ES: Chevron Energy Solutions Company 345 California Street, 18th Floor San Francisco, CA 94104 -2624 Attention: Nancy P. Grossman, Project Manager With a COPY TO: Legal Department Chevron Energy Solutions Company 345 California Street, 18th Floor San Francisco, CA 94104 -2624 1899451.5 Rev. Date: 6/13/12 Page 28 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Tel: 415- 733 -4500 Fax: 415- 733 -4957 Attention: Contract Administrator TO CUSTOMER: The City of Dublin, California 100 Civic Plaza Dublin, CA 94568 Attention: Roger Bradley, Senior Administrative Analyst Tel: 925 - 833 -6657 Fax: 925 - 833 -6651 With a COPY TO: In the event that City retains a Project Manager, as provided for in Section 2.04, copies of all correspondence shall be sent to the Project Manager at the address provided by Customer. ARTICLE 28. CONSTRUCTION OF CONTRACT This Contract is the result of arms - length negotiations between two sophisticated parties and ambiguities or uncertainties in it shall not be construed for or against either Party, but shall be construed in a manner that most accurately reflects the intent of the Parties when such Contract was executed. Each of the Parties acknowledges and agrees that neither Party has provided the other with any legal, accounting, regulatory, financial or tax advice with respect to any of the transactions contemplated hereby, and each Party has consulted its own legal, accounting, regulatory, financial and tax advisors to the extent it has deemed appropriate. ARTICLE 29. BINDING EFFECT Except as otherwise provided herein, the terms and provisions of this Contract shall apply to, be binding upon, and inure to the benefit of the Parties hereto and their respective heirs, legal representatives, successors, and permitted assigns. ARTICLE 30. NO WAIVER The failure of Chevron ES or Customer to insist upon the strict performance of this Contract shall not constitute or be construed as a waiver or relinquishment of either Party's right to thereafter enforce the same in accordance with this Contract in the event of a continuing or subsequent default on the part of Chevron ES or Customer. ARTICLE 31. SEVERABILITY In the event that any clause or provision of this Contract or any part thereof becomes or shall be declared by a court of competent jurisdiction invalid, illegal, void, or unenforceable, this Contract shall continue in full force and effect without said provisions; provided that no such severability shall be effective if it materially changes the benefits or obligations of either Party hereunder. ARTICLE 32. APPLICABLE LAW This Contract and the construction and enforceability thereof shall be interpreted under the laws of the State of California, without regard to the choice of law doctrine. The Parties consent to personal jurisdiction and venue of the State and Federal Courts within the County of Alameda, California and, by execution and delivery of this Contract, each of the Parties hereby (i) accepts the jurisdiction of the foregoing courts for purposes of enforcement of any such arbitral award and (ii) irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venues of any suit, action or proceedings with respect hereto brought in any such court, and further irrevocably waives to the fullest extent permitted by law any claim that any such suit, action or proceedings brought in any such court has been brought in an inconvenient forum. BOTH CHEVRON ES AND CUSTOMER EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES AND FOREVER RELINQUISHES ANY AND ALL CLAIMS OR RIGHTS THAT SUCH PARTY MAY HAVE TO ANY TRIAL BY JURY ON ANY ISSUE ARISING OUT OF ANY LITIGATION OR DISPUTES OR CLAIMS UNDER THIS CONTRACT OR IN ANY WAY ASSOCIATED THEREWITH, SUCH PARTIES INTENDING TO WAIVE AND FOREVER RELINQUISH ANY RIGHT UNDER THE SEVENTH AMENDMENT OF THE UNITED STATES CONSTITUTION TO TRIAL BY JURY AND ANY CLAIMS OR RIGHTS TO A TRIAL BY JURY UNDER THE CONSTITUTION OF THE STATE OF CALIFORNIA OR ANY OTHER CONSTITUTIONAL, STATUTORY OR OTHERWISE APPLICABLE LAW PROVIDING FOR A RIGHT OF TRIAL BY JURY. 1899451.5 Rev. Date: 6/13/12 Page 29 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ARTICLE 33. HEADINGS Headings and subtitles used throughout this Contract are for the purpose of convenience only, and no heading or subtitle shall modify or be used to interpret the text of any section. ARTICLE 34. COUNTERPARTS; INTEGRATION This Contract may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Contract constitutes the entire contract among the Parties relating to the subject matter hereof and supersedes any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Delivery of an executed counterpart of a signature page of this Contract by email or fax shall be effective as delivery of a manually executed counterpart of this Contract. IN WITNESS WHEREOF, and intending to be legally bound, the Parties hereto subscribe their names to this Contract by their duly authorized officers on the date first above written. CHEVRON ES: CUSTOMER: Chevron Energy Solutions Company, a The City of Dublin, California Division of Chevron U.S.A. Inc. By: Name: Title: By: 1899451.5 Rev. Date: 6/13/12 Page 30 of 60 Name: Title: Bond No.: Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Chevron ES Project #: DWCES -_ Chevron ES Contract # CU ATTACHMENT A FORM OF PERFORMANCE BOND PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: that as Principal, hereinafter called Contractor, and (Here insert full name and address or legal title of Contractor) (Here insert full name and address or legal title of Surety) as Surety, hereinafter called Surety, are held and firmly bound unto (Here insert full name and address or legal title of Owner) as Obligee, hereinafter called Owner, in the amount of Dollars ($ ), for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, Contractor has by written agreement dated , entered into a contract with Owner for (Here insert full name, address and description of project) in accordance with Drawings and Specifications prepared by (Here insert full name, address and legal title to Architect) which contract is by reference made a part hereof, and is hereinafter referred to as the Contract. 1899451.5 Rev. Date: 6/13/12 Page 31 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company PERFORMANCE BOND NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Contractor shall promptly and faithfully perform said Contract, then this obligation shall be null and void; otherwise it shall remain in full force and effect; subject, however, to the following conditions: The Surety hereby waives notice of any alteration or extension of time made by the Owner. Whenever Contractor shall be, and declared by Owner to be in default under the Contract, the Owner having performed Owner's obligations thereunder, the Surety may promptly remedy the default, or shall promptly 1) Complete the Contract in accordance with its terms and conditions, or 2) Obtain a bid or bids for completing the Contract in accordance with its terms and conditions, and upon determination by Surety of the lowest responsible bidder, or, if the Owner elects, upon determination by the Owner and the Surety jointly of the lowest responsible bidder, arrange for a contract between such bidder and Owner, and make available as Work progresses (even though there should be a default or a Signed and sealed this day of, 2012 . (Witness) (Witness) succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the contract price; but not exceeding, including other costs and damages for which the Surety may be liable hereunder, the amount set forth in the first paragraph hereof. The term "balance of the contract price," as used in this paragraph, shall mean the total amount payable by Owner to Contractor under the Contract and any amendments thereto, less the amount properly paid by Owner to Contractor. Any claim or suit under this bond must be instituted before the issuance of the Certificate of Substantial Completion as defined in the Contract. No right of action shall accrue on this bond to or for the use of any person or corporation other than the Owner named herein or the heirs, executors, administrators or successors of the Owner. (Principal) (Surety) 1899451.5 Rev. Date: 6/13/12 Page 32 of 60 (Title) (Seal) (Title) Bond No.: Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT B FORM OF PAYMENT BOND LABOR AND MATERIAL PAYMENT BOND THIS BOND IS ISSUED SIMULTANEOUSLY WITH PERFORMANCE BOND IN FAVOR OF THE OWNER CONDITIONED ON THE FULL AND FAITHFUL PERFORMANCE OF THE CONTRACT KNOW ALL MEN BY THESE PRESENTS: that (Here insert full name and address or legal title of Contractor) as Principal, hereinafter called Principal, and, (Here insert full name and address or legal title of Surety) as Surety, hereinafter called Surety, are held and firmly bound unto (Here insert full name and address or legal title of Owner) as Obligee, hereinafter called Owner, for the use and benefit of claimants as hereinbelow defined, in the amount of Dollars ($ ) (Here insert a sum equal to at least one -half of the contract price) for the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, Principal has by written agreement dated 2012, entered into a contract with Owner for (here insert full name, address and description of project) in accordance with Drawings and Specifications prepared by which contract is by reference made a part hereof, and is hereinafter referred to as the Contract. 1899451.5 Rev. Date: 6/13/12 Page 33 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company LABOR AND MATERIAL PAYMENT BOND NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Principal shall promptly make payment to all claimants as hereinafter defined, for all labor and material used or reasonably required for use in the performance of the Contract, then this obligation shall be void; otherwise it shall remain in full force and effect, subject, however, to the following conditions: 1. A claimant is defined as any person named in California Civil Code section 3181. The above named Principal and Surety hereby jointly and severally agree with the Owner that every claimant, as herein defined, who has not been paid in full, may, within the time period set forth in California Civil Code section 3249, sue on this bond, prosecute the suit to final judgment for such sum or sums as may be justly due claimant, and have execution thereon. The Owner shall not be liable for the payment of any costs or expenses of any such suit. 3. No suit or action shall be commenced hereunder by any claimant: a. Unless claimant shall have given written notice in accordance with California Civil Code sections 3227 and 3252. b. After the time period set forth in California Civil Code section 3249. It is understood, however, that if any limitation embodied in this bond Signed and sealed this day of (Witness) (Witness) is prohibited by any law controlling the construction hereof such limitation shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law. C. Other than in a state court of competent jurisdiction in and for the county or other political subdivision of the state in which the Project, or any part thereof, is situated, or in the United States District Court for the district in which the Project, or any part thereof, is situated, and not elsewhere. The amount of this bond shall be reduced by and to the extent of any payment or payments made in good faith hereunder, inclusive of the payment by Surety of any stop notices or mechanics' liens which may be filed of record against said improvement, whether or not claim for the amount of such stop notice or lien be presented under and against this bond. 2012. (Principal) (Surety) 1899451.5 Rev. Date: 6/13/12 Page 34 of 60 (Title) (Seal) (Title) ATTACHMENT C CUSTOMER'S FACILITIES & EXISTING EQUIPMENT The existing Customer Facilities included in the Scope of Work below are: Facility Location Equipment Effected Swim Center 8157 Village Parkway Filtration system Irrigation Pool Pump Civic Center /Police Station 100 Civic Plaza Lighting HVAC Irrigation Main Switchgear Urinals Water fixtures Fire Station 16 7494 Donahue Dr. Irrigation Lighting Main Switchgear Water main Fire Station 17 6200 Madigan Lighting Main Switchgear Fire Station 18 4800 Fallon Rd. Lighting Main Switchgear Kolb 8020 Bristol Rd. Irrigation Library 200 Civic Plaza Lighting HVAC Main Switchgear Urinals Water fixtures Senior Center 7600 Amador Valley Blvd. Lighting Main Switchgear Shannon Community Center 11600 Shannon Ave. Main switchgear Stagecoach 7598 Stagecoach Rd. Irrigation Stager Gym 6901 York Dr. Main Switchgear Street Lights Citywide Lighting circuits 1899451.5 Rev. Date: 6/13/12 Page 35 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT D SCOPE OF WORK Energy Conservation Measures to Be Implemented General: Chevron ES shall provide design, engineering, and construction services as described in this Energy Services Contract as necessary to implement the Scope of Work described herein: Energy Conservation Measures: ECM 1: Install Variable Frequency Drives and Controls on Fan Motors Scope for Civic Center: Modify the existing constant volume system by providing Variable Frequency Drives ( "VFDs ") for the ten supply fan motors in the ten (10) Carrier 48MA units. Provide and install static pressure sensors on each unit to provide and pressure indication to manage the speed of the supply fan motor. Provide and install in each of the fifty nine (59) zones new temperature and CO2 sensors to provide an indication of the actual environment in the building. Temperature and CO2 levels will provide the demand control information necessary to control the fifty nine (59) newly installed electric dampers in the ductwork. Dampers will be operated to maintain set -point temperature within an acceptable range. • Install new opposed blade damper in each zone supply duct with an electric actuator to be controlled by the new DDC controls provided. • Provide and install new thermostats and CO2 sensors to communicate with the controls and VFD operation on each rooftop unit. VFDs will be installed in NEMA 3R enclosures without a by -pass. • Network all units together for communication. • Provide and install duct static pressure sensors for each unit to operate the VFDs and manage fan speed. • Provide and install controls to manage the supply fans and zone operation. • Provide and install front -end graphics and software for user interface. • Commission the new controls. Scope for Library: Provide and install variable air volume system operation by installing Variable Frequency Drives on the supply fans and the power exhaust fans. Provide and install controls to operate newly installed VFDs and sensors. • Close the existing duct bypass on each AC unit and seal duct between supply and return mains. • Install VFDs on each air conditioning unit to control both the supply air fan and power exhaust fan in NEMA 3R enclosure. • Provide and install new temperature sensors to accommodate the new control system. • Provide and install new actuators on existing dampers fro economizer operation. • Provide and install CO2 sensors in each of the 21 zones. • Commission the new controls. ECM 2: Install pool pump control at the Swim Center Scope: • Provide and install VFD pump controller. • Provide and install flow meter on the discharge pipe of pump. • Modify piping as needed to provide adequate length of straight pipe upstream and downstream of the flow meters. • Modify piping in boiler loop as necessary to ensure adequate water flow through the boiler when the pump speed is reduced at night. • Provide and install new pressure gauge in the suction and discharge of each pump. ECM 3: Install a Sand Filtration System at the Swim Center Scope of Work: 1899451.5 Rev. Date: 6/13/12 Page 36 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Remove existing pool filtration system and provide and install a fully- engineered Sand Filtration system, including new pumps and piping. Replace existing filtration pumps with single pump. Re -plumb existing piping configuration to allow for new filtration system and pumps. Core drill through existing concrete block wall to allow for new piping and sand filtration system. The backwash port of the multi -port valves shall be tied into a single 6 -inch PVC line and terminated at existing waste location. Return lines shall be run through existing block wall and tied into existing return lines. New PVC pipe shall be adequately supported by galvanized strut and clamps. It is assumed that existing piping systems and components which will be interconnected are adequate for continual service. Provide and install one (1) filter pump, Paco type LC pump and Baldor strainer basket by Grundfos Provide and install three (3) Pentair THS series horizontal sand filters and media, equipped with multi -port valves • Suitable mounting configuration for the new sand filter. ECM 4: Streetliqht Liqhtinq Efficiency Upgrades Scope: Retrofit existing high pressure sodium cobrahead fixtures with new LED fixtures. Street light retrofits will include a new photo- sensor and wattage label. A comprehensive as -built template provided by PG &E will be used to log the new LED wattage replacement. This will allow PG &E to change each fixture to the new lower tariff rate. Scope is applicable for 3,086 roadway fixtures listed on PG &E's LS2 -A BRIO street light inventory. • Retrofit 1,251, 70w high pressure sodium cobra head street lights with LED • Retrofit 758, 100w high pressure sodium cobra head street light with LED • Retrofit 208, 150w high pressure sodium cobra head street light with LED • Retrofit 723, 200w high pressure sodium cobra head street light with LED • Retrofit 135, 250w high pressure sodium cobra head street light with LED • Retrofit 6, 310w high pressure sodium cobra head street light with LED • Retrofit 5, 400w high pressure sodium cobra head street light with LED ECM 5: Interior and Exterior Lighting Efficiency Upgrades Interior Lighting Upgrading to Existing Lamps and Ballasts Scope: This scope of work is applicable for the following Buildings: Civic Center,; Fire Stations 16, 17, 18; Library; Senior Center. Refer to table for quantities and fixtures. • Retrofit existing linear 4 ft. linear fluorescent lamps and ballasts with third - generation, 28 -watt T8, long -life, 4 ft. linear fluorescent, 4100 Kelvin lamps and ultra- efficient instant start and program start electronic ballasts. • Areas with three (3) or four (4) older generation T8, 4 ft. fluorescent lamps and electronic ballasts will be retrofitted with a specular reflector de -lamp kit, two (2) 4 ft. linear fluorescent 28 -watt T8, long -life, 4100 Kelvin lamps and 2 -lamp, program start electronic ballasts. • Existing T8 2 -ft U -tube fluorescent lamps will be replaced with two (2) 2 ft., 17w T8s, ultra- efficient electronic instant -start ballasts and specular reflector de -lamp kit. • Existing 2x2, 4 -lamp F1 7T8 recessed fixtures will be de- lamped to two (2) 2 ft. 17w T8's, third generation, long - life fluorescents, ultra - efficient high- output instant -start electronic ballasts and specular reflector de -lamp kit. • Replace incandescent PAR flood lamps with LED PAR LED flood lamps. • Replace Halogen incandescent MR16 lamps with MR16 LED lamps. • Install infrared occupancy sensor in rooms where specified with either a ceiling mount or wall- switch module. Exterior Lighting Efficiency Upgrade Scope: This scope of work is applicable for the following Buildings: Civic Center, and Library. Refer to table for quantities and fixtures. • Retrofit post -top parking lot high pressure sodium or metal halide fixtures with induction or LED retrofit kit (lamp & ballast as specified). 1899451.5 Rev. Date: 6/13/12 Page 37 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Retrofit wall -mount high pressure sodium or metal halide fixtures with induction or LED retrofit kit (lamp & ballast as specified). Retrofit area flood high pressure sodium or metal halide fixtures with induction or LED retrofit kit (lamp & ballast as specified). Sensor Quantity by Site Building Wall Ceiling Civic Center 72 6 Fire Station 16 8 0 Fire Station 17 19 0 Fire Station 18 17 0 Library 48 3 Police Wing of Civic Center 0 7 Senior Center 11 1 total 175 17 Lighting Quantity by Site Building Retrofit Code ECM Description Total CIVIC CENTER 1383LED RELAMP WITH LED 1383 48 15WLEDR30 LED 15WATT PAR30 SCREW IN 13 18WLEDPAR NEW 18W PAR38 SCREW IN 10 1 L2T8 (1) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 7 1 L3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 19 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 2 2L2T8 (2) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 5 2L3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 24 2L4T8LP (2) 4'28W T -8 Lamps, (1) LIP Prog Start Elec Bal 194 2L4UT86 (2) 30W U -lamp w/ (1) Prog Start Elec Bal (2x2) 6 "- LP 1 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 44 50WMHKIT RETROFIT TO 50 MH 40 6L4T8LP (6) 4' 28W T -8 Lamps, (2) LP Prog Start Elec Bal 9 CATHKIT T -1 XTRABRIGHT COLD CATHODE KIT 15 NF150FLD NEW 150 PS FLOOD KNUCKLE OPTION 1 10 NF3LT5HOPOLE NEW 3L 54T5HO POLE HEAD 32 NF70INDCH NEW INDUCTION COBRA HEAD 70W 6 CIVIC CENTER Total 479 FIRE STATION 16 13WCFLDIM 13 WATT CFL DIM 2 15WLEDR30 LED 15WATT PAR30 SCREW IN 9 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 11 2L2T8 (2) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 1 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 39 3WCCS1 3W COLD CATHODE SCREW IN 3 4L4T8LP (4) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 17 LEDMR16 LED MR16 8 NF26TBX NEW FIXTURE FLOOD 26W TBX 2 NF3LT5HOPOLE NEW 3L 54T5HO POLE HEAD 3 NF3LT5HOWP NEW 3L 54T5HO WALL PACK 2 FIRE STATION 16 Total 97 FIRE STATION 17 15WLEDR30 LED 15WATT PAR30 SCREW IN 2 1 L3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 13 1899451.5 Rev. Date: 6/13/12 Page 38 of 60 1L4T8LP 27WCFL 2L4T8LP 3L4T8LP1O 4L4T8LP 8WLEDPAR20 FIRE STATION 17 Total Energy Services Contract The City of Dublin and Chevron Energy Solutions Company (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 1 27 WATT CFL 10 (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 21 (3) 4'28W T -8 Lamps, (1) LP Elec Bal 10 17 (4) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bat 50 LED 8WATT PAR20 SCREW IN 2 116 FIRE STATION 18 1 L3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 9 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 1 27WCFL 27 WATT CFL 4 21-3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 2 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 39 3L4T8LP1O (3) 4'28W T -8 Lamps, (1) LP Elec Bal 10 4 4L4T8LP (4) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 32 6L4T8LP (6) 4'28W T -8 Lamps, (2) LP Prog Start Elec Bal 3 FIRE STATION 18 Total 94 POLICE WING OF CIVIC CENTER 1383LED RELAMP WITH LED 1383 24 18WCF 18 WATT CF 4 11-2T8 (1) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 1 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 1 1X8R4T8ELEC 1X8 Refl, (4)FO28, (1) T8 Prog Start Elec Ball LP 2 21-2T8 (2) 2' 17W T -8 Lamps, (1) Prog Start Elec Bal 5 21-3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 18 2L4T8LP (2) 4' 28W T -8 Lamps, (1) LP Prog Start Elec Bal 144 21-4UT86 (2) 30W U -lamp w/ (1) Prog Start Elec Bal (2x2) 6 "- LP 4 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 17 4L4T8LP (4) 4' 28W T -8 Lamps, (1) LP Prog Start Elec Bal 5 4L4T8LPI0 (4) 4'28W T -8 Lamps, (2) LP prog Start Elec Bal- 10 11 6L4T8LP (6) 4'28W T -8 Lamps, (2) LP Prog Start Elec Bal 29 CATHKIT T -1 XTRABRIGHT COLD CATHODE KIT 4 NF3LT5HOPOLE NEW 3L 54T5HO POLE HEAD 13 NF3LT5HOWP NEW 3L 54T5HO WALL PACK 3 NF42TBXWP NEW 42 WATT TBX WALL PACK 2 POLICE WING Total 287 PUBLIC LIBRARY 11-3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 24 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 92 21-3T8 (2) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 12 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 18 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 18 PUBLIC LIBRARY Total 164 SENIOR CENTER 11-3T8 (1) 3'25W T -8 Lamps, (1) Prog Start Elec Bal 40 1 L4T8LP (1) 4'28W T -8 Lamp, (1) LP Prog Start Elec Bal 65 2L4T8LP (2) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 9 3L4T8LP (3) 4'28W T -8 Lamps, (1) LP Prog Start Elec Bal 36 3L4T8LP1O (3) 4'28W T -8 Lamps, (1) LP Elec Bal 10 14 6L4T8LP (6) 4'28W T -8 Lamps, (2) LP Prog Start Elec Bal 9 1899451.5 Rev. Date: 6/13/12 Page 39 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company EMC 6: Renewable Energy Measure: Photovoltaic Systems LEDMR16 LED MR16 3 kWdc NF100MH NEW FLOOD KNUCKLE 100 MH 2 Civic Center NF2LT5GRN NEW 2L 54T5HO POLE HEAD GREEN 12 Hyundai, Trina, NF3LT5GRN NEW 3L 54T5HO WALL PACK GREEN 2 SENIOR CENTER Total 192 EMC 6: Renewable Energy Measure: Photovoltaic Systems Scope of Work — General Chevron ES shall provide installation of a solar photovoltaic (PV) system with a nominal capacity of 726 kWdc to be constructed on eight sites within the City: Civic Center, Fire Station 16, Fire Station 17, Fire Station 18, Library, Senior Center, Shannon Center, Stager Gym. Chevron ES installation includes detailed engineering, equipment procurement, installation, interconnection to utility, system start -up and commissioning services. Scope of work shall include: • Preparation of design drawings from the Chevron ES standard Division of the State Architect DSA] pre -check design package for submission to City Building Permit Department (Civic Center, FS16, FS17, FS18, Library, Senior Center, Shannon), DSA (Stager Gym), and local utility interconnection permit. • Final layout drawings for Fire Marshall and customer review. • Geotechnical evaluations necessary for design requirements. • Utility (PG &E) interconnection drawings and application management services. • Rebate administrative services for the purpose of obtaining available CSI incentive, if any. • Provide and coordinate with PG &E for the installation of the NGOM and NEM metering. • Provide the CSI - required PMRS [monitoring for five (5) years. • Procurement of materials and equipment necessary for construction. • Labor, supervision and coordination with the City for the installation of photovoltaic modules and supporting structures, electrical distribution and control systems, and one information kiosk. • Installation of inverters and all necessary electrical equipment and conduits to connect to the electrical switchgear or meter. Two electrical shut -downs are anticipated at each site. Time of shutdown to be coordinated with the City, Facility Management, and PG &E and may include weekends. • Solar canopy structure, which shall allow parking below and traffic circulation between canopies, shall be from Chevron ES standard, painted, canopy structure height and pier depth of eight (8) foot deep and assumes no de- watering, benching, shoring, or casing. • Installation of new lighting fixtures mounted under new parking canopies. • Roof mounted systems shall be standard attachment to standing seam roof and assumes no structural modifications to building, roof repairs, or roof modifications. Additional costs for non standard attachment shall be calculated based upon final design. Cost for roof mounting system requiring structural building modifications shall be determined following final design. 1899451.5 Rev. Date: 6/13/12 Page 40 of 60 Location Structure type No. of arrays kWdc Panel type Inverter Type 1 Civic Center Canopy 6 288+3 Hyundai, Trina, central or string or equivalent 2 Fire Sta. 16 Roof 1 14+3 Hyundai, Trina central or string or equivalent 3 Fire Sta. 17 Canopy — tall T 1 39+3 Hyundai, Trina central or string , or equivalent 4 Fire Sta. 18 Canopy 1 24+3 Hyundai, Trina, central or string or equivalent 5 Library Canopy 3 -4 180+3 Hyundai, Trina, central or string or equivalent 6 Senior Center Roof 1 33+3 Hyundai, Trina, central or string or equivalent 7 Shannon Canopy 2 -3 120+3 Hyundai, Trina, central or string Center or equivalent 8 Stager Gym Canopy 1 30+3 Hyundai, Trina, central or string or equivalent Scope of Work — General Chevron ES shall provide installation of a solar photovoltaic (PV) system with a nominal capacity of 726 kWdc to be constructed on eight sites within the City: Civic Center, Fire Station 16, Fire Station 17, Fire Station 18, Library, Senior Center, Shannon Center, Stager Gym. Chevron ES installation includes detailed engineering, equipment procurement, installation, interconnection to utility, system start -up and commissioning services. Scope of work shall include: • Preparation of design drawings from the Chevron ES standard Division of the State Architect DSA] pre -check design package for submission to City Building Permit Department (Civic Center, FS16, FS17, FS18, Library, Senior Center, Shannon), DSA (Stager Gym), and local utility interconnection permit. • Final layout drawings for Fire Marshall and customer review. • Geotechnical evaluations necessary for design requirements. • Utility (PG &E) interconnection drawings and application management services. • Rebate administrative services for the purpose of obtaining available CSI incentive, if any. • Provide and coordinate with PG &E for the installation of the NGOM and NEM metering. • Provide the CSI - required PMRS [monitoring for five (5) years. • Procurement of materials and equipment necessary for construction. • Labor, supervision and coordination with the City for the installation of photovoltaic modules and supporting structures, electrical distribution and control systems, and one information kiosk. • Installation of inverters and all necessary electrical equipment and conduits to connect to the electrical switchgear or meter. Two electrical shut -downs are anticipated at each site. Time of shutdown to be coordinated with the City, Facility Management, and PG &E and may include weekends. • Solar canopy structure, which shall allow parking below and traffic circulation between canopies, shall be from Chevron ES standard, painted, canopy structure height and pier depth of eight (8) foot deep and assumes no de- watering, benching, shoring, or casing. • Installation of new lighting fixtures mounted under new parking canopies. • Roof mounted systems shall be standard attachment to standing seam roof and assumes no structural modifications to building, roof repairs, or roof modifications. Additional costs for non standard attachment shall be calculated based upon final design. Cost for roof mounting system requiring structural building modifications shall be determined following final design. 1899451.5 Rev. Date: 6/13/12 Page 40 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company • Includes connection to one kiosk display installed at City Hall showcasing the solar PV technology, real time tracking of production, savings and environmental benefits. • All project management and construction management necessary for a full and complete installation. • AutoCAD drawings and Operations & Maintenance Manuals upon project completion. • Tree relocation of Ash and Locust at Civic Center and Library, to adjacent field site. All other trees shall be removed. • Miscellaneous backfill and restoration of landscaping in areas of work. • Start -up, test, and commission the systems in accordance with design plan and applicable industry standards. Beneficial Use and therefore Substantial Completion of PV Systems: Unless otherwise provided below, shall occur when PG &E issues the Permission -To- Operate letter. Project Schedule Chevron ES shall incorporate in the Project Schedule reasonable allowances for: • Securing permits and approvals, and required inspections • Operations that cannot be suspended • Delivery of materials and equipment • Weather delays for conditions normal during the construction period Assumptions, Exceptions, Exclusions: • Time of work shall be normal business hours Monday through Saturday • Chevron ES is not responsible for availability of rebates available through PG &E California Solar Initiative CSI program. • Work shall not include repairs, modifications, or upgrades to buildings or adjacent facilities not specifically shown unless damaged during the construction process. • Work shall not include excavation, re- grading, installation of drainage systems, shoring of unstable soil or substructures. • Work shall not include repair or upgrade of existing electrical, mechanical, or structural infrastructure. • Work shall not include upgrades or modifications to existing non - compliant sites, structures or systems required to meet governmentally mandated codes or specifications. • Cost for pier depth beyond eight (8) feet shall be determined upon final design and is based upon prevailing soil conditions, seismic and wind requirements, the presence of water, or undiscovered conditions such as subsurface obstructions. • Cost for Americans with Disabilities Act ADA accessibility upgrades to existing buildings or parking lots for path of travel, if required, shall be calculated based upon final design. • Remediation and /or removal of hazardous materials, hazardous wastes, or spoils Is not included in the scope of work. • California Environmental Quality Act CEQAjor other environmental studies, if required, shall be the responsibility of the City. • Public Hearings, if required, shall be the responsibility of the City. • Access to the parking lots shall be blocked to public access during construction for safety. • Maintenance and operations of the solar PV system, if requested by Customer, will be provided at additional cost to be determined by the Parties. • Right of Way at Stager Gym to be provided by the City. Photovoltaic Project Layouts 1899451.5 Rev. Date: 6/13/12 Page 41 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Civic Center /Police Station Fire Station 16 1899451.5 Rev. Date: 6/13/12 Page 42 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Fire Station 17 Fire Station 18 1899451.5 Rev. Date: 6/13/12 Page 43 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Senior Center 1899451.5 Rev. Date: 6/13/12 Page 44 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Shannon Community Center Stager Community Gym 1899451.5 Rev. Date: 6/13/12 Page 45 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ECM 7: Install Irrigation Controllers: Existing Equipment Site # Site Name Existing Controller # WiredZones Total Controllers 1 Swim Center Sentar II 22 1 2 Civic Center Sentar II 68 3 3 Fire Station 16 Sentar II 7 1 4 Fire Station 17 DX2 25 1 5 Fire Station 18 DX2 24 1 6 Heritage Park & Museum DX2 49 2 7 Library DX2 52 2 8 Senior Center DX2 34 1 9 Shannon Community Ctr DX2 12 1 10 Bray Commons DX2 66 2 11 Mape DX2 29 1 12 Ted Fairfield DX2 59 2 13 Emerald Glen DX2 368 10 14 Stage Coach RME 18 1 15 Kolb Sentar II 30 1 Chevron ES shall provide all labor, materials, and supervision necessary to: • Perform Site Investigations • Review existing conditions and develop installation plan • Equipment Installation • Flow Sensor Master Valve Setup Confirmation and Learn Flows • Confirmation All Flow Data Is Entered into the Central System • Train City Irrigation Team on Equipment and Software • All Irrigation controllers will be installed to code with appropriate wiring and grounding rods. Communication of the controllers back to the central computer (or internet, if applicable) will be confirmed. Site # Site Name Existing Controller # WiredZones Total Controllers 1 Swim Center Sentar II 22 1 2 Civic Center Sentar II 68 3 3 Fire Station 16 Sentar II 7 1 All the DX2 controllers are already on the central system but are not being adjusted for ET. It appears all (or most) the DX2 controllers also have Master Valves and Flow Sensors installed. Scope: Setup existing ET and Flow Sensing on three (3) DX2 controllers through existing Central Control. Replace three (3) existing Sentar II controllers with new DX2 controllers and add them to the existing central system at the following locations: Swim Center, Civic Center, Fire Station 16. Optimize the system to control irrigation through central control. Irrigation Optimization at the following sites: • Community Center • Fire Station 16 1899451.5 Rev. Date: 6/13/12 Page 46 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company • Fire Station 17 • Fire Station 18 • Heritage Park • Library • Senior Center • Bray Commons • Mape • Ted Farifield • Emerald Green Pre - School ECM 8: Water Fixture Replacements in City -owned Buildings Scope: • Provide and install pint flush urinals • Provide and install 1.5 gpm showerheads. • Provide and install aerators in all the bathrooms, it is recommended to replace any aerator with a flow over 1.5gpm to a low -flow 0.5gpm aerator. • Civic Center Existing Device Retrofit Device QTY. 1.5 gpf small urinal 1.0 pint small urinal 3 1.5 gpm sink aerators 0.5 gpm sink aerators 12 2.5 gpm shower heads 1.5 gpm shower heads 4 • Police Station Existing Device Retrofit Device QTY. 1.0 gpf large /sm. urinal 1.0 pint large /sm. urinal 3 1.5 gpm sink aerators 0.5 gpm sink aerators 14 2.5 gpm shower heads 1.5 gpm shower heads 5 • Community Center Existing Device Retrofit Device QTY. 1.0 gpf large /sm. urinal 1.0 pint large /sm. urinal 3 2.2 gpm sink aerators 0.5 gpm sink aerators 4 • Fire Station 16 Existing Device Retrofit Device QTY. 1.0 gpf large /sm. urinal 1.0 pint large /sm. urinal 2 1.5 gpm sink aerators 0.5 gpm sink aerators 5 2.5 gpm shower heads 1.5 gpm shower heads 3 • Fire Station 17 Existing Device Retrofit Device QTY. 2.0 gpm sink aerators 0.5 gpm sink aerators 8 2.5 gpm shower heads 1.5 gpm shower heads 4 1899451.5 Rev. Date: 6/13/12 Page 47 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company • Fire Station 18 Existing Device Retrofit Device QTY. 2.2 gpm sink aerators 0.5 gpm sink aerators 5 2.5 gpm shower heads 1.5 gpm shower heads 2 • Heritage Park Museum Existing Device Retrofit Device QTY. 1.0 gpf large /sm. urinal 1.0 pint large /sm. urinal 1 2.0 gpm sink aerators 0.5 gpm sink aerators 3 • Public Library Existing Device Retrofit Device QTY. 1.0 gpf large /sm. urinal 1.0 pint large /sm. urinal 3 2.2 gpm sink aerators 0.5 gpm sink aerators 4 • Senior Center Existing Device Retrofit Device QTY. 1.0 gpf large /sm. urinal 1.0 pint large /sm. urinal 2 2.2 gpm sink aerators 0.5 gpm sink aerators 4 Criteria for Achieving Beneficial Use: CHILLER - Two weeks of uninterrupted supply of GPM flows within 10% of design values at a supply temperature of 45 °F or lower. Uninterrupted operation is defined as: no involuntary shutdowns due to mechanical difficulties. Flows shall be established by a test and balance report. Temperature performance shall be established by EMS trend logs or by manual spot checks of a temperature gauge by a Chevron ES employee. ii) PUMP - Two weeks of uninterrupted supply of GPM flows within 10% of design values. Uninterrupted operation is defined as: no involuntary shutdowns due to mechanical difficulties. Flows shall be established by a test and balance report. iii) MOTORS /VFDs /GENERATORS - Uninterrupted operation for a duration as necessary, with a maximum of 2 weeks, to determine proper operation. iv) ENERGY MANAGEMENT SYSTEM - Two weeks of uninterrupted operation of controlled equipment while providing reasonable comfort. Uninterrupted operation is defined as: no involuntary shutdowns due to control problems. Reasonable comfort is defined as: maintaining occupied spaces controlled by the system within +/- 4 degrees of setpoint. Comfort performance shall be established by EMS trend logs or by manual spot checks of temperatures by a Chevron ES employee. EXCLUSIONS • Dewatering of piers • Pier depth beyond 8 foot deep • Piers requiring shoring /benching due to sandy soil • Structural or seismic modifications to buildings, where code requirements have changed since installations • Environmental Impact Reports • EIR mitigations • ADA accessibility upgrades to existing buildings, parking lots, or path of travel 1899451.5 Rev. Date: 6/13/12 Page 48 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company • Upgrades to existing systems, where code requirements have changed • Special Helicopter access • Emergency ballasts • Under cabinet linear fluorescent • Existing occupancy sensors • Faulty switch leg circuits • Lighting circuit grounding • Street light fuse • Street light photo -cell receptacle • Street light RP -8 light level for neighborhoods • Repair or replacement of street light arm or pole • Missing street light badge numbers • Non -Cobra style decorative fixtures (LS2 -A) shall be retrofitted with Bridgelux LED module for cost, plus mark -up • Street lights not listed on BRIO street light inventory or above BRIO quantity shall be installed at cost, plus mark -up • Emerald Glen "Decorative" Post -top fixtures not included in scope. • Overtime or weekend work • DSA plan check fees • DSA inspector costs • Water hose bibs for washing the panels • Decorative fascia along the perimeter of the panels or any decorative covering underneath the panels • Repair or replacement of existing housekeeping pads, concrete pads, or base repair of existing walkway lighting, except as noted • Painting, unless specified • Smoke detectors and fire alarm system work Additional clarifications: • Removal and disposal of hazardous materials, including asbestos containing materials, to be by the Customer (except as noted above). If Chevron ES encounters material suspected to be hazardous, Chevron ES will notify the Customer representative and stop further work in this area until the material is removed. • Chevron ES shall require the cooperation of Customer personnel to secure the area and to provide traffic redirection during rigging operations and during the move -in and move -out of large equipment. • No allowance has been made for structural upgrades to existing structures, except as noted. • No allowance has been made for screening of new or existing equipment, unless specifically noted above. • No temporary heating or cooling services have been included in the pricing. Chevron ES will attempt to phase the construction in such a way as to avoid any complete interruptions of service. • Chevron ES standard construction means & methods will be used. • Customer will provide access to the facilities, laydown areas at the work sites, and a reasonable number of parking spaces for Chevron ES and Chevron ES's subcontractor vehicles in parking lots at the respective Facilities. • All work will be performed during normal work hours; no overtime hours are included in this proposal unless otherwise stated. The lighting retrofit work will be performed so as not to unreasonably interfere with the building schedule. • The Scope of Work assumes that, unless specifically identified otherwise, all existing systems are functioning properly and are up to current codes. Chevron ES shall not be responsible for repairs or upgrades to existing systems, other than those specifically identified herein. No allowances have been made to bring existing systems up to code. • No allowance has been made to repair or replace damaged or inoperable existing equipment that is not specifically being replaced under the Scope of Work. When such items are discovered, Chevron ES will immediately notify the Customer representative. 1899451.5 Rev. Date: 6/13/12 Page 49 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company • No allowance has been made for underground obstructions or unsuitable soil conditions encountered during trenching or other excavation. • The PV shade structure is not weather tight and will not provide shelter from rain. • Chevron ES has assumed project construction will be allowed to proceed smoothly and in a continuous flow. No allowance has been made to demobilize and remobilize resources due to schedule interruptions. • Temporary utilities to be provided by Customer at no cost (trailer power, phone lines, construction power, etc.). 1899451.5 Rev. Date: 6/13/12 Page 50 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT E PROJECT SCHEDULE After contract execution, the Chevron ES Construction Manager will develop, with input from the Customer's staff, a master Microsoft Project® schedule. The project team will establish a weekly construction meeting at which time the work of the previous week will be reviewed, and a two week look ahead will be coordinated. The Microsoft Project® schedule will be updated on a monthly basis. At this time, Chevron ES estimates that after contract execution, the issuing of subcontractor contracts, design, engineering, mobilization, construction, and commissioning /turnover will take [0] months. 1899451.5 Rev. Date: 6/13/12 Page 51 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT PROGRESS PAYMENT SCHEDULE Comprehensive Energy Analysis Consulting Fee $ 55,000.00 Mobilization Fee $ 2,229,292.50 Remaining Implementation Cost $ 5,146,682.50 Contract Amount $ 7,430,975.00 1899451.5 Rev. Date: 6/13/12 Page 52 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT G STANDARDS OF OCCUPANCY & CONTROL (NOT APPLICABLE ® WILL DELETE FOR FINAL) 1899451.5 Rev. Date: 6/13/12 Page 53 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT H SAVINGS MEASUREMENT & VERIFICATION PLAN The following details the methodologies and calculations to be used in determining the Energy Unit Savings under this Contract. Facility or ECM Measurement & Verification Method Options Fire Station 16, Electric Usage Fire Station '18 Library Senior Center Civic Center M &V Option B - PV Jan 15,524 794 Fire Station 16 M &V Option B - PV 9,793 1,825 6,254 Fire Station 17 M &V Option B - PV 19,716 1,005 2,454 Fire Station 18 M &V Option B - PV 2,227 8,024 2,075 Library M &V Option B - PV 1,741 4,402 2,854 Senior Center M &V Option B - PV 14,116 3,613 Apr Shannon Center M &V Option B - PV 5,340 3,392 25,667 Stager Gym M &V Option B - PV 4,279 May 50,073 1. M &V Option B: Energy savings performance of Scope of Work are measured and verified at the end -use site. Option B techniques are designed for projects where long -term continuous measurement of performance is desired and warranted. Under Option B, while some parameter may be stipulated or measured once then stipulated, some individual loads are continuously monitored to determine performance; and this measured performance is compared with an equipment -use Baseline to determine the Energy Unit Savings. a. EC Savings will be determined by multiplying the Energy Unit savings by the applicable Base Energy Rate. EC Savings will be calculated and presented in ongoing reports. During the Construction Period, the EC Savings will be calculated by adding the production measured for the period between Substantial Completion or Beneficial Use of the EC Measure and the M &V Commencement Date. b. Table H -2 shows the monthly generation by site and will only be used if data collection fails for a period. The production is aggregated for the entire project. c. No baseline measurements are necessary because pre - retrofit PV production is zero. Kilowatt -hours produced by the PV system will be measured using automated metering. Measured interval production kilowatt -hours will be compared against production shown on the monthly utility bills and any differences will be reconciled. Projected kWh production is shown in the table below at 95% of expected production, using degradation factor of 0.7% per year. Table H -2: Photovoltaic First Year Production Month Gvic. Center Fire Station 16, Fire Station 17= Fire Station '18 Library Senior Center Shannon Center Stager Gym Jan 15,524 794 1,889 1,278 9,793 1,825 6,254 1,637 Feb 19,716 1,005 2,454 1,628 12,429 2,227 8,024 2,075 Mar 34,445 1,741 4,402 2,854 21,662 3,701 14,116 3,613 Apr 40,918 2,055 5,340 3,392 25,667 4,305 16,823 4,279 May 50,073 2,494 6,644 4,153 31,300 5,162 20,586 5,214 Jun 52,085 2,587 6,960 4,321 32,565 5,272 21,465 5,427 Jul 51,701 2,567 6,894 4,288 32,276 5,296 21,234 5,374 Aug 46,893 2,333 6,163 3,890 29,335 4,884 19,224 4,891 Sep 37,830 1,900 4,868 3,136 23,738 4,068 15,466 3,959 Oct 26,116 1,322 3,295 2,158 16,388 2,958 10,578 2,737 Nov 18,783 962 2,274 1,551 11,867 2,190 7,592 1,984 Dec 15,994 820 1,908 1,319 10,102 1,922 6,417 1,690 1899451.5 Rev. Date: 6/13/12 Page 54 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company IM �smth Civic Fire Station, Fire Station Fire Station Library Senior Sharman Stager 1,000, 789 Center J 16 17 �� � '� 8 Center Center Gym Total 410,078 20,580 53,091 33,968 257,122 43,810 167,779 42,880 2. Base Energy Rates: EC Savings shall be calculated using the Base Energy Rates. The Base Energy Rates listed here are to be increased each Measurement Period on a cumulative basis by four percent (4 %) beginning on the first anniversary of the M &V Commencement Date and continuing on the first day of each Measurement Period thereafter. Building or ECM $ per kWh Solar PV $0.171 3. Annual Guarantee Fee shall be $17,700. The Annual Guarantee Fee listed here are to be increased each Measurement Period on a cumulative basis by three percent (3 %) beginning on the first anniversary of the M &V Commencement Date and continuing on the first day of each Measurement Period thereafter. 4. Guaranteed Production The Guaranteed Production is listed below and is degraded by .7% each year. Guaranteed Year Production in kWh 1 1,029, 308 2 1,022,103 3 1,014,948 4 1,007,844 5 1,000, 789 6 993,783 7 986,827 8 979,919 9 973,060 10 966,248 1899451.5 Rev. Date: 6/13/12 Page 55 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENTI LIST OF INCENTIVES I IENTC1/E ......... .................. ......... ......... ................ YR 1 LIGHTING /UTILITY REBATES $278,295 YR 1 CSI Incentive (0.088 per kWh) $90,579 YR 2 CSI Incentive (0.088 per kWh) $89,945 YR 3 CSI Incentive (0.088 per kWh) $89,315 YR 4 CSI Incentive (0.088 per kWh) $88,690 YR 5 CSI Incentive (0.088 per kWh) $88,069 Total Incentives $724,893 1899451.5 Rev. Date: 6/13/12 Page 56 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT MONITORING INSTALLATION SCOPE OF WORK Overview of DAS Network Installation & Equipment Requirements Chevron ES will provide a revenue -grade billing, data acquisition system (DAS). This will provide readily available access to various internal and external information collected on the distributive generation (i.e., solar PV) plant. Chevron ES DAS Monitoring Installation: • Supply and install hardware specific to the DAS system. • Supply and install, terminate, label, and test all Data Point of Connection (DPOC) communication cabling from each DAS node to the predetermined and respective DPOC(s); in accordance with Customer's specifications. • Test and verify Customer /Facility network connectivity. a. TCP /IP internal addressing and verification • Supply, install, and configure a Modbus based digital Net Energy Meter (NEM). • Connect the data portion of digital NEM(s) to their respective DPOC(s). • Supply, install, and configure a Modbus based digital Net Generation Output Meter (NGOM). • Perform the physical installation, labeling, testing and certification testing of each data circuit from the digital NEM(s) to their respective DPOC(s). • Provide basic system training to designated Customer /Facility maintenance staff. Customer /Facility Responsibilities: • Provide four (4) external static IP addresses, subnet mask default gateway, and DNS - information to allow remote access to DAS panel(s). • Provide network connectivity to each DAS panel location. • Provide Chevron ES five (5) business days prior notification of any IP addressing scheme changes or changes made to restrict network access to ensure maximum uptime is maintained. 1899451.5 Rev. Date: 6/13/12 Page 57 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company ATTACHMENT K PREVENTIVE MAINTENANCE EQUIPMENT AND FACILITIES COVERED Chevron ES shall perform Preventive Maintenance Services ( "PM Services ") as defined in this Attachment K with respect to Generating Facilities being constructed on Customer's property at the Project Locations shown in attachment C. I. Term So long as Customer pays to Chevron ES the Annual Maintenance Fee, Chevron ES will provide the PM Services, as described herein, up to ten (10) years from the M &V Commencement Date on an annualized basis. Customer has 30 days from SUBSTANTIAL Completion to notify CES regarding acceptance of PM services. At the end of this term, the Customer may: a. Enter into another agreement with Chevron ES to perform PM Services b. Enter into an agreement with another service provider c. Self perform preventive maintenance II. Annual Maintenance Fee; Reporting The Annual Maintenance Fee for the first Measurement Period shall be invoiced by Chevron ES to the Customer in a lump sum on the M &V Commencement Date. All subsequent Annual Maintenance Fees will be invoiced by Chevron ES on the first day of the corresponding Measurement Period. The Customer, or its designee, shall pay Chevron ES such Annual Maintenance Fee, without any retention amount withheld, within thirty (30) calendar days after its receipt of the corresponding invoice. Unless the Customer gives Chevron ES prior written notice of its intent to terminate the PM Services, any failure to timely pay the Annual Maintenance Fee in accordance with this Attachment K shall be a material default by Customer under the Contract, and Chevron ES, in addition to any other legal, contractual and equitable remedies available to it, shall have no obligation thereafter to provide PM Services. Any amount not paid when due shall, from and after the due date, bear Interest. Accrued and unpaid Interest on past due amounts (including Interest on past due Interest) shall be due and payable upon demand. The Annual Maintenance Fee is not refundable for any reason. Upon completion of any maintenance or repair work, Chevron ES will update service logs detailing the work performed, location and any notes relevant to safe and efficient operations. These service logs will be compiled and submitted to the Customer on a quarterly basis. If Chevron ES is no longer the provider of PM Services, the Customer's new provider will maintain similar service logs. Chevron ES shall have reasonable access to inspect service logs to determine that adequate PM Services are being performed. III. Preventive Maintenance Services Provided Chevron ES will provide the following Services during the term: a. System Inspection 1. Inspect PV modules, roof penetrations and support structure on an annual basis. 2. Inspect electrical connections at combiner boxes and exposed wiring on an annual basis. 3. Perform voltage testing, amperage testing, and infrared scans of inverters, combiner boxes, disconnects and switchgear on an annual basis. b. Solar Panel Cleaning 1. Wash PV modules to remove accumulated dust and debris on an annual basis. c. Inverter Maintenance 1. Perform manufacturer's schedule of preventive maintenance tasks. These tasks may include, without limitation, filter cleanings, fuse inspection, terminal and electrical power connection torquing. 1899451.5 Rev. Date: 6/13/12 Page 58 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company 2. Remove dust, dirt, and debris from outside cabinets of inverters, transformers, and disconnect switches on an annual basis. d. Performance Monitoring 1. Monitor the Generating Facility for performance degradation and abnormal operating conditions, In the event a problem is detected, Chevron ES will immediately notify the Customer. The Customer may then authorize further trouble- shooting or Repair Services. IV. Repair Services a. If a Generating Facility is determined to have experienced a performance degradation or abnormal operating conditions and upon Customer authorization, Chevron ES shall provide repairs as required to restore the Generating Facilities to normal operating parameters or to replace deteriorated, damaged, parts and equipment. The Customer shall compensate Chevron ES for such repairs /replacement on a time and material basis, with Chevron ES providing back -up detail for its costs and expenses, multiplied by 1.15. Chevron ES shall pursue and administer any and all warranty claims (including processing of paperwork, managing subcontractors and replenishment of spare parts) for any Repair Services. b. "Repairs" will include any of the following as necessary: Procuring parts or materials, removing damaged or out -of- specifications parts or materials, installing repaired or replacement parts or materials, and testing. c. Chevron ES shall provide a written report to Customer within 10 business days following the completion of any work performed under this article. V. Services And Equipment To Be Covered By Customer Chevron ES's obligations under this Attachment K are expressly conditioned upon Customer's payment of the Annual Maintenance Fee and providing and being responsible for the following, without cost to Chevron ES: a. The Generating Facilities described herein shall be made available to Chevron ES as of the Effective Date of the Contract. b. Operate and maintain security systems associated with Generating Facilities. c. Customer shall be responsible for maintenance of all landscaping in and around Generating Facilities including tree trimming. d. Allowing Chevron ES and its personnel access as necessary to the Generating Facilities, and any related areas that may be reasonably necessary for performance of the PM Services, including reasonable work, parking, and equipment staging areas. e. Allowing Chevron ES and its personnel to access electrical power and other utilities then existing at the Generating Facilities as necessary for Chevron ES to satisfy its obligations under the Contract, all free of charge to Chevron ES. f. Customer shall be responsible pursuant to Applicable Law for the remediation of any known Hazardous Substances encountered by Chevron ES during the performance of the PM Services which Hazardous Substances were not deposited by Chevron ES, including any backfill with clean soil as may be reasonably required. g. Customer shall insure the Generating Facilities against loss due to acts of God and the public enemy; flood, earthquake, tornado, storm, fire; civil disobedience, sabotage, and vandalism. h. Chevron ES shall have no obligation to provide the PM Services to the extent such provision of PM Services is materially adversely affected by Customer's failure to satisfy the conditions set forth in this Attachment K. 1899451.5 Rev. Date: 6/13/12 Page 59 of 60 Energy Services Contract The City of Dublin and Chevron Energy Solutions Company Year O &M Fee 1 $15,730 2 $16,202 3 $16,688 4 $17,189 5 $17,704 6 $18,235 7 $18,782 8 $19,346 9 $19,929 10 $20,524 1899451.5 Rev. Date: 6/13/12 Page 60 of 60 N z Q N U "' W W a LL � _ O 11 W 5Q > O (6 U l0 I� Lfl 00 I� .--� 0) C N W m N m M -4 L n c-I M wQ . S vii v'i `� 000 m N M "� Ln 000 m V) v Z O U� m `� Ln p ^ 00 00 N M l0 O Ln N � 00 N ai � � ni ON to O m .� .N to r 00 � N c-I l0 M W !n > h0 O N m w Il m 0 n tD 111 N c-I 00 O Lfl m m O m N N N N > a O oN Ql QnI Ln 0000 [f ttm L Ln 0o N m n N N t Ln H r4 N H N n u .Ln -I ao N 1-0 m N w� O c-I N N 0) v > + m cNI c-I rn � oo l0 n O p evj O: - to ri c0 ) E Ql O ^ Q1 l0 N N O l0 m O 111 H � c-I t/} t/} �' t/} t/} �' W} t/} t/} t/} i/1• U Ln in i 00 00 N -1 O H1 M O O it c6 N U 00 O m 0) O l0 n H tO/} tO/} 'Vpj, Ol N O t/} t/} t/} t/} O U tom/} tN/} ice? U O O r-I NO -1 H O C O bo M .� 0 m ^ n vOi vOi U O t� r, ri 00 � Ln tpi� u�i LL C O .� � ci M r-I N O O 00 00 tD 00 Ql ^ L!1 n i p O N m Ln lD 0 M O f�J Hl Ln N^ F, ^ 47 M Q 1O m r-' on Ql 00 l0 0l p 00 N 0 U U f6 f6 f6 r O r O r O C 7 7 O lI1 lI1 N Q N N � O a) 6 y C a) in N U � a) C O h0 a U U O .0 a0 C IZ a) LL C: N 0 C = 00 O U U Q— 00 SZ E 6 m O t bo aJ o_ X 000 U a- c w i 2 O LL to Ln N U Zi Ln H z CW G v Q Q RESOLUTION NO. XX - 12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * ** APPROVING AN ENERGY SERVICE CONTRACT AND AN ASSOCIATED FINANCING CONTRACT WITH CHEVRON ENERGY SOLUTIONS COMPANY, FOR THE IMPLEMENTATION AND FUNDING OF CERTAIN ENERGY RELATED IMPROVEMENTS TO CITY OF DUBLIN FACILITIES WHEREAS, the City of Dublin approved an Energy Audit Agreement with Chevron Energy Solutions Company in May of 2011; and WHEREAS, a comprehensive energy audit was conducted on City facilities to determine the feasibility of various energy efficiency improvements ( "the Projects "); and WHEREAS, State law allows the City to enter into an Energy Service Contract if the anticipated cost for alternative energy equipment and associated conservation measures will be less than that of non - renewable energy that would have been consumed otherwise; and WHEREAS, the cost to the City of the Energy Service Contract by and between the City and Chevron Energy Solutions for the implementation of certain energy measures for electrical energy generation or conservation services will be less than the anticipated marginal cost of electrical energy that would have been consumed by the City absent the implementation of the improvements under the Energy Service Contract; and WHEREAS, the construction of the projects will depend on the City's ability to finance the costs; and WHEREAS, the City's debt service commitment will be paid from the anticipated savings generated by the more efficient systems that will be built under this program; and WHEREAS, Chevron Energy Solutions will provide the City with an option to guarantee that the savings generated by the reduction in energy usage as a result of these projects will be sufficient to pay the City's' debt service commitment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby finds as follows: 1. The anticipated cost of the electrical energy produced by the Projects combined with the savings resulting from the energy conservation that will result from the Projects will be less than the anticipated marginal cost to the City of Dublin of procuring electrical energy that would otherwise by consumed in the absence of the Projects. 2. It is in the best interests of the City of Dublin to enter into a facilities financing contract substantially in the form presented to the City Council. 3. Funds for the repayment of the financing contract are projected to be available from revenues resulting from funding that otherwise would have been used for the purchase of electrical energy in the absence of the Projects. ATTACHMENT 6 BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby approves an Energy Service Contract ( "Agreement ") with Chevron Energy Solutions Company, for the implementation and funding of certain energy related improvements to City facilities as authorized by California Government Code Sections 4217.10 through 4217.18. BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby approves and accepts the Lease terms presented by US Bank and authorizes Staff to negotiate the final terms and amount to be financed, for the implementation and funding of the energy related improvements. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the Agreement with Chevron Energy Solutions Company and an associated financing contract substantially in the form presented, with the technical, clarifying and conforming changes as shall be approved by the City Attorney and /or the City Manager and to execute such other documents and perform such other actions as are necessary to perform the City's obligations as set forth in the Agreement. PASSED, APPROVED AND ADOPTED this 19th day of June, 2012, by the following vote: AYES- NOES- ABSENT- ABSTAIN- ATTEST- City Clerk Mayor ATTACHMENT 6