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Home My WebLink About05 - SCGas Energy Leader PartnershipF��Rr ® CITY OF NEWPORT BEACH City Council Staff Report Agenda Item No. 5 March 26, 2013 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department David A. Webb, Public Works Director 949 -644 -3328, dawebb @newportbeachca.gov PREPARED BY: Iris Lee, Senior Civil Engineer 949 - 644 -3323, ilee @newportbeachca.gov APPROVED:_ TITLE: Energy Leader Partnership between Southern California Gas Company and the City of Newport Beach ABSTRACT: The California Public Utilities Commission (CPUC) has issued a Final Decision to the Southern California Gas Company (SCG) approving their 2013 -2014 Energy Efficiency Programs in support of energy efficiency efforts. The City of Newport Beach will need to enter into a joint partnership with SCG via the existing Orange County Cities Energy Leader Partnership (Partnership) to utilize project incentives and community outreach funds to increase City -wide energy efficiency. RECOMMENDATIONS: Authorize the City Manager to execute the "First Amendment to the Agreement to Jointly Deliver the 2010 -2012 Orange County Energy Leader Partnership Program." 2. Authorize the City Manager to execute future Energy Leader Partnership Program agreements. 3. Designate Iris Lee, in the Public Works Department, as the "Energy Champion" pursuant to the Energy Leader Partnership Agreement. FUNDING REQUIREMENTS: There are no funding requirements related to this item; however, the City will directly benefit from SCG's allocation to supplement funding for the City's energy efficiency goals. Incentive reimbursements can amount up to 80 percent of a gas - related energy efficient project cost. Energy Leader Partnership between Southern California Gas Company and the City of Newport Beach March 26, 2013 Page 2 DISCUSSION: On November 15, 2012, CPUC issued a Final Decision approving the 2013 -2014 Energy Efficiency Portfolio funding application supporting local agencies in achieving their immediate and long -term energy goals. The funds that make up this effort's budget are collected from gas utility ratepayers pursuant to Section 890 et al., of the California Public Utilities Code for public purposes programs, including energy efficiency programs approved by the Commission. The Orange County Cities Energy Leader Partnership was established to provide additional funds to the Partnership Cities when the Cities invest in energy efficiency projects. Current participants include the Cities of Huntington Beach, Fountain Valley, Westminster, and Costa Mesa. The Partnership was designed to provide integrated technical and financial assistance to help local governments effectively lead their communities to increase energy efficiency, reduce greenhouse gas emissions, protect air quality and ensure their communities are more livable and sustainable. The Partnership provides performance -based opportunities for a City to demonstrate energy efficiency leadership in its community through energy saving actions, such as retrofitting its municipal facilities as well as providing opportunities for constituents to take action in their homes and businesses. By implementing measures in its own facilities, the City will lead by example as the City and SCG work together to increase community awareness of energy efficiency and position the City as a leader in energy management practices. In September 2011, the City entered into an agreement with Southern California Edison to join the Orange County Cities Energy Leader Partnership, and take advantage of electric energy efficiency- related incentives. Due to the late participation, the City was unable to enter into a similar agreement with SCG for the 2010 -2012 cycle. The 2010- 2012 cycle has now ended, allowing the City to now enter into an agreement through an amendment to partake in the 2013 -2014 transition cycle. If approved, the agreement will allow the City to be reimbursed for future therms saved for municipal retrofit projects and community outreach efforts. Pursuant to the Partnership Agreement, an "Energy Champion" will need to be designated as the primary contact between the City, other Partnership participants, and the SCG Energy Efficiency Representative. Staff recommends appointing Iris Lee, Public Works Department, to act as the "Energy Champion" on behalf of the City in carrying out the City's obligations under this Partnership Agreement. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQX) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the 2 Energy Leader Partnership Lety een Southern California Gas Company and the City of Newport Beach March 26, 2013 Page 3 environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEOA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Projects funded as a result of this Partnership will be subject to environmental review. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Submitted by: David b Public Works Director Attachment: A. First Amendment to the Agreement to Jointly Deliver the 2010 -2012 Orange County Energy Leader Partnership Program FIRST AMENDMENT THIS FIRST AMENDMENT ("FIRST AMENDMENT") TO THE AGREEMENT TO JOINTLY DELIVER THE 2010 -2012 ORANGE COUNTY CITIES ENERGY EFFICIENCY PARTNERSHIP PROGRAM dated January 1, 2010 (the "Agreement" or the "2010 -2012 Program ") is effective as of the First Amendment Effective Date (as defined below) by and among SOUTHERN CALIFORNIA GAS COMPANY ( "SCG ") AND THE CITY OF COSTA MESA, THE CITY OF FOUNTAIN VALLEY, THE CITY OF HUNTINGTON BEACH, THE CITY OF WESTMINSTER (the "Cities ") and THE CITY OF NEWPORT BEACH. Terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement. SCG and the Cities may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS WHEREAS, SCG and the Cities previously executed the Agreement effective January 1, 2010; WHEREAS, SCG and the Cities wish to add the City of Newport Beach ("Newport Beach") as a party to the Agreement and include Newport Beach within in the defined terms of the Parties and the Cities; WHEREAS, Newport Beach agrees to be bound by all the terms and conditions of the Agreement; and WHEREAS, the Parties desire to enter into dais Amendment to add Newport Beach to the Program. WHEREAS, on May 18, 2012, the Commission issued a Decision Providing Guidance on 2013- 2014 Energy Efficiency Portfolios and 2012 Marketing, Education, and Outreach ( "Final Guidance Decision ") guiding the Utility to continue the 2010 -2012 Program through a two year 2013 -2014 transition period (hereinafter referred to as the "2013 -2014 Program"); WHEREAS, on July 2; 2012, the Utility submitted its application ( "2013 -2014 Application ") for the implementation of energy efficiency programs to be delivered to California utility customers for the years 2013 through 2014, which included the 2013 -2014 Program; WHEREAS, on November 15, 2012, the Commission issued a Final Decision approving the 2013 -2014 Application as submitted ( "Final Decision"), thereby approving continuation of energy efficiency programs, which includes the 2013 -2014 Program, and the Parties desire to extend the Agreement through 2014 under the terns and conditions set forth in the Agreement, except as otherwise provided in this First Amendment; and WHEREAS, the Parties desire to further amend the Agreement as necessary to provide an authorized budget for the 2013 -2014 Program and to update the Agreement as required to reflect the extended 2013 -2014 Program cycle. NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: Amendment 1 1 Oft 1. Newport Beach is hereby added as a Party and an additional City to the Agreement and is hereby subject to all teens and conditions of the Agrecanent as of the Firs( Amendment Effective Date, as defined in Section 2 below. 2. Effective Date & Conditions Precedent to Effectiveness: The "First Amendment Effective Date" shall be the date by which all of the following conditions precedent have been met: a. All Parties have signed this First Amendment; and b. The Commission has issued a Final Decision approving the Utility's respective 2013- 2014 Application as filed, or in a form acceptable to the Utility in its sole discretion. 3. Except as provided herein, and to the extent applicable, any reference in the Agreement to the "2010- 2012 Program" shall hereby include both the 2010 -2012 Program and the 2013 -2014 Program. 4. Section 1.15 of the Agreement is hereby deleted in its entirety and replaced with the following: 1.15 PIP or Program Implementation Plan: The most recent Commission decision approved and publicly available plan for implementing the Program in each Utility's service territory 5. Section 11 of the Agreement is hereby deleted in its entirety and replaced with the following: 11. END DATE FOR PROGRAM AND ADMINISTRATIVE ACTIVITIES Unless this Agreement is terminated pursuant to Section 25 below, or unless otherwise agreed to by the Parties or so ordered by the Commission, the Parties shall complete all Program Administrative activities (as defined in the PIP) and all reporting requirements by no later than March 31, 2015, and all Direct Implementation and Marketing & Outreach activities by no later than December 31, 2014. 6. Section 12 of the Agreement is hereby deleted in its entirety and replaced with the following: 12. FINAL INVOICES Each City must submit final invoices to SCG no later than March 31, 2015. 7. Section 25.1 of the Agreement is hereby deleted in its entirety and replaced with the following: 25.1 Tenn. This Agreement shall be effective as of the Effective Date. Subject to Section 37, the Agreement shall continue in effect until June 30, 2015 unless otherwise terminated in accordance with the provisions of Section 25.2 or 30 of the Agreement. 8. Section 26 of the Agreement is hereby deleted in its entirety and replaced with the following: 26. WRITTEN NOTICES Any written notice, demand or request required or authorized in connection with this Agreement, shall be deemed properly given if delivered in person or sent by facsimile, nationally recognized overnight courier, or first class mail, postage prepaid, to the address specified below, or to another address specified in writing by a Party as follows: Amendment 1 2 of A6 The OC Cities: City of Costa Mesa Daniel Baker 77 Fair Drive Costa Mesa, CA 92648 Tel: (714) 754 -5156 Email: dbaker(@ci.costa- mesa.ca.us City of Fountain Valley Matt Mogensen, Management Analyst 10200 Slater Ave. Fountain Valley, CA 92708 Tel: (714) 593 -4412 Email: Matt.Mosensen(a)fountainvalley ore City of Huntington Beach Aaron Klemm 2000 Main Street Huntington Beach, CA 92648 Tel: (714) 536 -5537 Email: Aaron.Klemm(@surfcity- hb.orc City of Newport Beach Iris Lee, Senior Civil Engineer 3300 Newport Beach Blvd. Newport Beach, CA 92663 Tel: (949) 644 -3323 Email: ILeeRmewportbeachca.eov City of Westminster Soroosh Rahbari, Building Official 8200 Westminster Blvd. Westminster, CA 92683 Tel: (714) 898 -3311, ext. 250 Email: sorooshr (@,,ci.westminster.ca.us SCG: Southern California Gas Company Ann Teall, Program Advisor 555 W. Fifth Street, GT20B4 Los Angeles, CA 90013 Tel: (213) 244 -5843 Email: ateall(@semprautilities.com Notices shall be deemed received (a) if personally or hand - delivered, upon the date of delivery to the address of the person to receive such notice if delivered before 5:00 p.m. PST (or PDT, as applicable), or otherwise on the Business Day following personal delivery; (b) if mailed, three (3) Business Days after the date the notice is postmarked; (c) if by facsimile, upon electronic confirmation of transmission, followed by telephone notification of transmission by the noticing Party; or (d) if by overnight courier, on the Business Day following delivery to the overnight courier within the time limits set by that courier for next -day delivery. 9. This First Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument. 10. Exhibit A (SOUTHERN CALIFORNIA GAS COMPANY PROGRAM IMPLEMENTATION PLAN) and Exhibit B (SOUTHERN CALIFORNIA GAS COMPANY 2010 -12 GOALS & Amendment '1 3 of 47 BUDGET FOR OC CITIES) attached to this First Amendment, which attached versions are incorporated herein by reference and made a part of the Agreement. 11. General. From and after the First Amendment Effective Date, any reference to the Agreement contained in any notice, request, certificate or other instrument, document or agreement shall be deemed to mean the Agreement, as amended by this Fist Amendment. In the event of any conflict between the Agreement and this First Amendment, this First Amendment shall prevail. All remaining provisions of the Agreement shall remain unchanged and in full force and effect. Each party is fully responsible for ensuring that the person signing this First Amendment on that party's behalf has the requisite legal authority to do so. [SIGNATURES FOLLOW ON NEXT PAGE] Amendment 1 4 of J6 IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed by their duly authorized representatives as of the First Amendment Effective Date. The Cities: CITY OF COSTA MESA Name: Eric Bever Title: Mayor Date: CITY OF FOUNTAIN VALLEY Name: Raymond H. Kromer Title: City Manager Date: CITY OF HUNTINGTON BEACH Name: Don Hansen Title: Mayor Date: Name: Thomas R. Hatch Title: CEO Date: Name: Fred Wilson Title: City Manager Date: Amendment 1 5 of t CITY OF NEWPORT BEACH Name: Dave ICiff Title: City Manager Date: APPROVED AS TO FORM: City AttorneyZs Office (G C ) Name: Aaron C. Harp Title: City Attorney Date: ATTEST TO: Name: Leilaoi I. Brown Title: City Clerk Date: CITY OF WESTMINSTER Name: Mitch Waller Title: City Manager Date: Amendment 1 6 ofd SCG: SOUTHERN CALIFORNIA GAS COMPANY By: Name Printed: Gillian Wright Title: Director, Customer Programs Date; 2013 Amendment 1 7 ofA