HomeMy WebLinkAboutGBH Efficiency Services Group, LLC (ESG) 2006-08-29Cis 0$zgt&
AGREEMENT FOR
PROFESSIONAL CONSULTING SERVICES
This Agreement made and entered into this 29th day of August, 2006, by and between CITY OF UKIAH,
CALIFORNIA, hereinafter referred to as "City" and GBH Efficiency Services Group (ESG), LLC, a
California Corporation, hereinafter referred to as "Consultant".
RECITALS
This Agreement is predicated on the following facts:
a. City requires professional consulting services for the Public Benefits Programs according to the
scope of work outlined in the City's Request for Proposals dated June 7, 2006 (RFP).
b. Consultant represents that it has the qualifications, skills, and experience to provide these
services, and is willing to provide them according to the terms of this Agreement.
C. City and Consultant agree upon the Scope -of -Work and Work Schedule outlined in Consultant's
Proposal to provide Public Benefits Program Assessment, Revision, Development, Turnkey
Administration and Reporting dated June 15, 2006 along with the clarification letter dated July
10, 2006 (Proposal), attached hereto as Exhibit "A", describing the scope of work and setting
forth the completion dates for the various services to be provided pursuant to this Agreement. In
any conflicts between the provisions of this Agreement and Exhibit A, the provisions of this
Agreement shall prevail.
TERMS OF AGREEMENT
1.0 DESCRIPTION OF PROJECT
1.1 The Project is described in detail in Exhibit A.
2.0 SCOPE OF SERVICES
2.1 As set forth in Exhibit A.
2.2. Additional Services. Additional services, if any, shall only proceed upon written agreement
between City and Consultant. The written Agreement shall be in the form of an Amendment to
this Agreement.
3.0 CONDUCT OF WORK
3.1 Time of Completion. Consultant shall commence performance of services as required by the
Scope -of -Work upon receipt of a Notice to Proceed from City and shall complete such services
within the scheduled time as indicated in Consultant's Proposal commencing upon receipt of the
Notice to Proceed. Consultant shall complete the work to the City's reasonable satisfaction; even
if contract disputes arise or Consultant contends it is entitled to further compensation.
4.0 COMPENSATION FOR SERVICES
4.1 Basis for Compensation. For the performance of the professional services of this Agreement,
Consultant shall be compensated based on the fees described in the "Pricing" section of
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Consultant's proposal to the City dated June 15, 2006. Compensation under this Agreement shall
not exceed a guaranteed maximum dollar amount of $41,000 plus travel and overnight expenses.
The direct expenses and the fees to be charged for same shall be customary and reasonable, and
are expected not to exceed $400 per trip.
4.2 Changes. Should changes in compensation be required because of changes to the Scope -of -Work
of this Agreement, the parties shall agree in writing to any changes in compensation. "Changes to
the Scope -of -Work" means different activities than those described in Attachment "A" and not
additional time to complete those activities than the parties anticipate on the date they entered this
Agreement.
4.3 Sub -contractor Payment. The use of sub -consultants or other services to perform a portion of the
work of this Agreement shall be approved by City prior to commencement of work. The cost of
sub -consultants shall be included within the $41,000 provided in Section 4.1. Per the "Pricing"
section of Consultant's Proposal to the City, "For some customers (large commercial and
industrial) specialized, technical services may be required to address Ukiah's and/or the
customer's needs. Fees for these services will be in addition to the fees listed above, and will
require pre -approval by Ukiah staff and be priced at a mutually agreed upon hourly rate".
4.4 Terms of Payment. Payment to Consultant for services rendered in accordance with this contract
shall be based upon submission of monthly invoices for the work satisfactorily performed prior to
the date of invoice less any amount already paid to consultant, which amounts shall be due and
payable upon receipt by City. Invoices shall be accompanied by documentation sufficient to
enable City to determine progress made.
5.0 ASSURANCES OF CONSULTANT
5.1 Independent Contractor. Consultant is an independent contractor and is solely responsible for its
acts or omissions. Consultant (including its agents, servants, and employees) is not City's agent,
employee, or representative for any purpose.
5.2 Conflict of Interest. Consultant understands that its professional responsibility is solely to City.
Consultant has no interest and will not acquire any direct or indirect interest that would conflict
with its performance of the Agreement. Consultant shall not in the performance of this
Agreement employ a person having such an interest.
5.3 Independent contractor, indemnification. Consultant warrants and represents and the City relying
on said warranty and representation that he does not have any employees. With respect to
Consultant's provision of services under this Agreement, the parties intend to create an
independent contractor relationship in which Consultant is responsible for all taxes as a self-
employed person. They do not intend to assume the relation of employer and employee, and the
City assumes no relation whatsoever to any persons working for Consultant, whether as
employees or independent contractors. The City relies upon Consultant to pay all legally required
estimated and actual tax liabilities, self-employment taxes, and to comply with all tax withholding
and other laws in his employment of others in the performance of this Agreement, including
workers' compensation and unemployment insurance laws. Consultant agrees to indemnify and
hold harmless City and its officers, agents and employees from and against any claims by the
Internal Revenue Service, the California Franchise Tax Board, the California Unemployment
Insurance Board, the Division of Industrial Relations or the Workers' Compensation Appeals
Board, the Public Employees Retirement Board and any other similar agency for taxes, fees,
contributions, premiums, penalties, interest or any other sums, including costs of defending
against any such claims, arising from Consultant's performance of this Agreement, including any
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claims of any nature whatsoever premised on said agencies' conclusion that the parties or
anyone performing services for Consultant have assumed any relation other than that of principal
and independent contractor.
6.0 INDEMNIFICATION
6.1 Insurance Liability. Without limiting Consultant's obligations arising under Paragraph 6.2
Consultant shall not begin work under this Agreement until it procures and maintains for the
duration of this Agreement insurance against claims for injuries to persons or damages to
property, which may arise from or in connection with its performance under this Agreement.
A. Minimum Scope of Insurance
Coverage shall be at least as broad as:
Insurance Services Office (ISO) Commercial General Liability Coverage Form
No. CG 00 01 11 85.
2. ISO Form No. CA 0001 (Ed. 1/78) covering Automobile Liability, Code 1 "any
auto" or Code 8, 9 if no owned autos and endorsement CA 0025.
Worker's Compensation Insurance as required by the Labor Code of the State of
California and Employers Liability Insurance. Consultant represents that all
parties providing services under this Agreement are either owners of the
company (ESG) or independent contractors. In the event the Consultant hires
any employees, Consultant will acquire the Worker's Compensation Insurance
described above.
B. Minimum Limits of Insurance
Consultant shall maintain limits no less than:
General Liability: $1,000,000 combined single limit per occurrence for bodily
injury, personal injury and property damage. If Commercial General Liability
Insurance or other form with a general aggregate limit is used, the general
aggregate limit shall apply separately to the work performed under this
Agreement, or the aggregate limit shall be twice the prescribed per occurrence
limit.
Automobile Liability: $1,000,000 combined single limit per accident for bodily
injury and property damage.
3. Worker's Compensation and Employers Liability: When/if Consultant hires any
employees in the future; Consultant will acquire worker's compensation coverage
with limits as required by the Labor Code of the State of California and
Employers Liability limits of $1,000,000 per accident.
C. Deductibles and Self -Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City.
At the option of the City, either the insurer shall reduce or eliminate such deductibles or
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self-insured retentions as respects to the City, its officers, officials, employees and
volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and
related investigations, claim administration and defense expenses.
D. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
General Liability and Automobile Liability Coverages
a. The City, it officers, officials, employees and volunteers are to be
covered as additional insureds as respects; liability arising out of
activities performed by or on behalf of the Consultant, products and
completed operations of the Consultant, premises owned, occupied or
used by the Consultant, or automobiles owned, hired or borrowed by the
Consultant. The coverage shall contain no special limitations on the
scope -of -protection afforded to the City, its officers, officials, employees
or volunteers.
b. The Consultant's insurance coverage shall be primary insurance as
respects to the City, its officers, officials, employees and volunteers.
Any insurance or self-insurance maintained by the City, its officers,
officials, employees or volunteers shall be excess of the Consultant's
insurance and shall not contribute with it.
C. Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the City, its officers, officials, employees or
volunteers.
d. The Consultant's insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits
of the insurer's liability.
2. Worker's Compensation and Employers Liability Coverage
The insurer shall agree to waive all rights of subrogation against the City, its
officers, officials, employees and volunteers for losses arising from Consultant's
performance of the work, pursuant to this Agreement.
All Coverages
Each Insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days prior written notice by certified
mail, return receipt requested, has been given to the City.
E. Acceptability of Insurers
Insurance is to be placed with insurers with a Best's rating of no less than A: VII and who
are admitted insurers in the State of California. Professional liability insurance may be
underwritten by Lloyds of London.
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F. Verification of Coverage
Consultant shall furnish the City with certificates of Insurance and with original
Endorsements effecting coverage required by this Agreement. The Certificates and
Endorsements for each insurance policy are to be signed by a person authorized by that
insurer to bind coverage on its behalf. The Certificates and Endorsements are to be on
forms provided or approved by the City. Where by statute, the City's Workers'
Compensation - related forms cannot be used; equivalent forms approved by the
Insurance Commissioner are to be substituted. All Certificates and Endorsements are to
be received and approved by the City before Consultant begins the work of this
Agreement. The City reserves the right to require complete, certified copies of all
required insurance policies, at any time. If Consultant fails to provide the coverages
required herein, the City shall have the right, but not the obligation, to purchase any or all
of them. In that event, the cost of insurance becomes part of the compensation due the
contractor after notice to Consultant that City has paid the premium.
G. Subcontractors
If Consultant uses subcontractors or sub -consultants, it shall cover them under its policies
or require them to separately comply with the insurance requirements set forth in this
Paragraph 6.1.
6.2 Indemnification. Notwithstanding the foregoing insurance requirements, and in addition thereto,
Consultant shall indemnify, defend and hold harmless City officers, agents and employees from
and against any and all claims, demands, liability, costs and expenses, including court costs and
counsel fees, arising out of the injury to or death of any person or loss of or physical damage to
any property resulting from any negligent or wrongful act or omission committed by Consultant
or its officers, agents or employees while performing services under this Agreement.
Consultant's liability for professional negligence shall be limited to $1,000,000.
As to events which occur during Consultant's performance of this Agreement, City shall hold
Consultant harmless from and defend Consultant against all claims, liability, damage, or loss
arising out of any injury or death of any person or damage to or destruction of property
attributable to the negligent or willfully wrongful act or omission of City or its officers and
employees, where the injury, death or damage is caused by the sole and active negligence or
willful misconduct of City or City's employees.
7.0 CONTRACT PROVISIONS
7.1 Ownership of Work. All documents furnished to Consultant by City and all reports and
supportive data prepared by Consultant under this Agreement are City's property and shall be
given to City at the completion of Consultant's services at no additional cost to City. Deliverables
are identified in SCOPE OF SERVICES.
7.2 Independent Contractor. Consultant is an independent contractor and is solely responsible for its
acts or omissions. Consultant (including its agents, servants, and employees) is not City's agent,
employee, or representative for any purpose. City shall have the right to control Consultant only
insofar as the results of Consultant's service rendered pursuant to this Agreement; however, City
shall not have the right to control the means by which Consultant accomplishes services rendered
pursuant to this Agreement. Consultant shall pay all estimated and actual federal and state income
and self- employment taxes that are due the state and federal government and shall furnish and
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pay worker's compensation insurance, unemployment insurance and any other benefits required
by law for itself and its employees, if any. Consultant agrees to indemnify and hold City and its
officers, agents and employees harmless from and against any claims or demands by federal, state
or local government agencies for any such taxes or benefits due but not paid by Consultant,
including the legal costs associated with defending against any audit, claim, demand or law suit.
7.3 Governing Law. Consultant shall comply with the laws and regulations of the United States, the
State of California, and all local governments having jurisdiction over this Agreement. The
interpretation and enforcement of this Agreement shall be governed by California law and any
action arising under or in connection with this Agreement must be filed in a court of competent
jurisdiction in Mendocino County, each party agreeing to the jurisdiction and venue of such court.
7.4 Entire Agreement. This Agreement plus its Attachment(s) and executed Amendments set forth
the entire understanding between the parties.
7.5 Severability. If any term of this Agreement is held invalid by a court of competent jurisdiction,
the remainder of this Agreement shall remain in effect.
7.6 Modification. No modification of this Agreement is valid unless made with the agreement of
both parties in writing.
7.7 Assignment. Consultant's services are considered unique and personal. Consultant shall not
assign, transfer, or sub -contract its interest or obligation under all or any portion of this
Agreement without City's prior written consent.
7.8 Waiver. No waiver of a breach of any covenant, term, or condition of this Agreement shall be a
waiver of any other or subsequent breach of the same or any other covenant, term or condition or
a waiver of the covenant, term or condition itself.
7.9 Litigation. In the event a suit or action is instituted to enforce any of the terms and conditions of
this Agreement, the prevailing party shall collect, in addition to the costs and disbursements
allowed by statutes, such sums as the court may adjudge reasonable as attorney's fees in such suit
or action in both trial and appellate courts.
7.10 Termination. This Agreement may only be terminated by either party: 1) for breach of the
Agreement; 2) because funds are no longer available to pay Consultant for services provided
under this Agreement; 3) City has abandoned and does not wish to complete the project for which
Consultant was retained; or 4) City terminates the contract on thirty (30) days prior notice to
Consultant. A party shall notify the other party of any alleged breach of the Agreement and of
the action required to cure the breach. If the non -breaching fails to cure the breach within the
time specified in the notice, the contract shall be terminated as of that time. If terminated for lack
of funds or abandonment of the project, the contract shall terminate on the date notice of
termination is given to Consultant. City shall pay the Consultant only for services performed and
expenses incurred as of the effective termination date. In such event, as a condition to payment,
Consultant shall provide to City all finished or unfinished documents, data, studies, surveys,
drawings, maps, models, photographs and reports prepared by the Consultant under this
Agreement. Consultant shall be entitled to receive just and equitable compensation for any work
satisfactorily completed hereunder, subject to off -set for any direct or consequential damages City
may incur as a result of Consultant's breach of contract.
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7.11 Duplicate Originals. This Agreement may be executed in duplicate originals, each bearing the
original signature of the parties. When so signed, each such document shall be admissible in
administrative or judicial proceedings as proof of the terms of the Agreement between the parties.
8.0 NOTICES
Any notice given under this Agreement shall be in writing and deemed given when personally
delivered or deposited in the mail (certified or registered) addressed to the parties as follows:
CITY OF UKIAH GBH EFFICIENCY SERVICES GROUP, LLC
ELECTRIC UTILITIES DEPT. PO BOX 421
411 W. CLAY STREET CLACKAMAS, OREGON 97015
UKIAH, CALIFORNIA 95482-5400
9.0 SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above
written:
CONSULTANT
BY: c v A®
DAi
to
PRINT NAME: A14
42-1671928
IRS IDN Number
CITY OF UKIAH
BY:
CANDACE HORSLEY I
CITY MANAGER 1`
ATTEST:
GAIL PETERSON-LATIPOW
CITY CLERK
APPROVED AS TO FORM:
DA PP6#,T
CITY ATTORNEY, CITY OF UKIAH
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Date
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Date
Page 7 of 7
EFFICIENCY
EXHIBIT A
Group
A Proposal to
City of Ukiah
For services to provide
June 15, 2006
Public Benefits Program Assessment, Revision,
Development, Turnkey Administration and Reporting
Efficiency Services Group, LLC (ESG) is pleased to provide the following proposal
to the City of Ukiah (Ukiah) for the assessment, revision and development of their
energy -efficiency programs. ESG will also provide on-going turnkey administration
and reporting for Ukiah's programs and track and account for program
expenditures under the Public Benefits Programs (PBP) established for publicly
owned utilities under Public Utilities Code Section 385.
ESG and its support staff have over 80 years of combined experience designing
and implementing top quality energy efficiency and renewable energy programs
and services. In the last few years ESG has used those skills and experience to
assist utilities throughout California and the Pacific Northwest.
ESG will provide the services detailed in this proposal to existing Ukiah customers.
Any services or programs developed for new construction in Ukiah will be
developed and priced outside this offer.
Statement of Qualifications:
See the attached Statement of Qualifications.
ESG Staff:
The following ESG staff will provide the services to Ukiah included in this proposal:
Jim Brands
Jim has over 26 years of electric utility experience in marketing, sales,
implementation and management of energy -efficiency programs (residential and
commercial) in the western United States. He has a broad knowledge of the
Western US energy picture gained by working for an Oregon municipal utility for 14
years, two investor-owned utilities in the Northwest (6 years) and the Northwest
Public Power Association for 6 years. Jim has first-hand experience in the
Page 1 of 9
operation of public utility energy efficiency programs, including energy auditing on-
site at customer locations.
Mark Gosvener
Mark has over 24 years of experience in the development, implementation and
operation/management of resource efficiency programs in the residential and
commercial market sectors for Portland General Electric and other utilities and
agencies on the West Coast. Mark has developed and managed a wide array of
programs promoting most residential technologies; notably Retrofit Weatherization
(including low income markets), Water Heaters, Multifamily Direct Install, Water
Efficiency, Energy Expert Hotlines and Heat Pump programs. He is well versed in
residential energy efficiency and is an expert in developing and managing trade
ally networks.
Ted Haskell
Ted has 29 years of experience in technical support and training of contractors,
technicians, utility personnel, building designers, and the general public in energy
efficiency, with an emphasis on residential technologies. He also has experience
with energy auditing, including small and mid-size commercial buildings. He has
worked with Washington State University Cooperative Extension Service, Oregon
State University Extension Service, and Portland General Electric. Ted has been
certified as an Instructor in Heat Pump Equipment Selection and Duct Design by
Air Conditioning Contractors of America, Certified Duct Doctor by Florida Solar
Energy Center, and Energy Rater by Energy Rated Homes of Oregon. Ted has
trained energy auditors and utility staff for Bonneville Power Administration
certification and has a thorough working knowledge of a variety of energy modeling
computer tools.
ESG Office Support Staff and Contract Help
ESL's office coordinator will answer the toll-free customer hotline, address
program inquiries from Ukiah customers, process rebate requests, and address
requests for other offers or services available under Ukiah's programs.
ESG maintains a network of contractors that specialize in various fields within the
energy efficiency and renewable energy industry. If the need arises, ESG may
utilize contractor assistance to meet specific needs of Ukiah customers. Per
section 4.3 of Ukiah's Agreement for Professional Consulting Services, ESG will
notify Ukiah of our desire to utilize contractor assistance prior to the
commencement of work. ESG will provide qualifications and credentials of
contractors for Ukiah's review, and will not begin work without Ukiah's written
authorization.
Proposed Services:
ESG will provide the following services to Ukiah in order to establish energy -
efficiency programs designed to save energy, reduce peak, provide excellent
customer value, and meet the tracking and reporting requirements of the Public
Exhibit A — Page 2 of 9
Benefits Programs (PBP) established for publicly owned utilities under Public
Utilities Code Section 385.
1. Program development
a) Provide a market assessment of Ukiah's customer base to determine which
customer segments offer the greatest potential for energy savings and
demand reduction. We will also review which programs Ukiah has offered
in the past, including customer participation levels, in order to determine
market saturation and greatest potential for energy savings. This
information will be used to create and target offers to the market segments
which will best meet Ukiah's objectives.
b) Develop/design residential and commercial offers which are targeted for
specific customer segments within Ukiah's service territory.
c) Develop appropriate equipment and, if necessary, installation specifications
for all energy efficiency equipment and measures promoted in Ukiah's
programs.
d) Development of all forms necessary for Ukiah customers to apply for
participation in Ukiah's programs.
e) Development of a data collection and reporting system.
f) Development of report formats to meet Ukiah's reporting needs, as well as
the reporting requirements of the State of California.
g) Track and report monthly all program activity to Ukiah.
h) Meet with Ukiah staff to present new programs, and provide training to staff
on how to direct customers to participate in the programs.
2. Anticipated Programs Offerings
ESG anticipates Ukiah's Programs may include, but not be limited to:
a) Appliance and Lighting Rebates
• Water heaters
• Energy Star Refrigerators
• Energy Star Clothes Washer
• Energy Star Dishwashers
• Energy Star Compact Fluorescent lights
• Energy Star Portable Air Conditioners
b) Residential Weatherization
• Ceiling, Floor, Wall, Duct Insulation Rebates
• Replacement windows, Window Shade/Tint/Film Treatments
• Energy Audits
• Inspections
c) Heating, Ventilation, & Air Conditioning
• High efficiency Central Air Conditioning
• High efficiency Heat Pumps
d) Commercial/Industrial Lighting Upgrades
e) Commercial/Industrial Heating & Cooling Equipment Upgrades
Exhibit A — Page 3 of 9
3. Marketing
a) ESG will discuss with Ukiah effective ways to market their programs to
various market segments.
b) ESG will provide basic information sheets describing program offers that
can be handed out or mailed to Ukiah customers. The production of
commercial quality brochures is not included in this proposal.
c) Provide program information that can be used by Ukiah to announce and
promote the start-up of these programs.
d) Attend a contractor and vendor program launch meeting to answer
contractor/vendor questions regarding Ukiah's programs, and encourage
contractor/vendor participation and promotion of programs to Ukiah's
customers.
4. Responding to Ukiah Customers
a) Provide a toll-free number for Ukiah customers and vendors to call with
questions about programs or general energy use. This hotline will be
answered by ESG staff from 8:00 am — 5:00 pm, Monday through Friday,
excluding nationally recognized holidays.
b) Handle all aspects of program activity, scheduling, customer interaction and
rebate and paperwork processing as directed by Ukiah.
c) ESG is flexible in how we will represent ourselves to Ukiah's customers and
vendors. We suggest representing ourselves as Ukiah's Energy Efficiency
Department. Program collateral and forms, as well as non-conformance
and other customer communications can be generated and mailed using
Ukiah stationery.
5. Providing Required Field Work
Provide on-site energy auditing/inspection services and/or oversight, as
mutually agreed upon, for residential, commercial and industrial customers.*
ESG staff is routinely in California, providing field and on-site services to
other California utility clients and, in an effort to reduce costs, will coordinate
Ukiah field work with these trips unless specifically requested otherwise.
*Please note that some technical services provided to large commercial and
industrial customers may require technical specialists whose costs are not included
in this proposal. This is addressed in the Pricing section.
6. Reporting
ESG will provide monthly reports to Ukiah to include:
a) Customer and vendor call activity
b) Field work performed
c) Rebates processed. ESG assumes that Ukiah will issue rebate checks to
customers. ESG will provide Ukiah with a monthly summary report of all
customers who qualified for rebates. Ukiah staff may then use this report to
issue rebate checks to customers.
Exhibit A — Page 4 of 9
d) Estimated energy saved and demand reduction. ESG will use the NCPA
default assumptions to estimate demand reduction.
e) Incentive dollars spent, as well as dollars spent on program administration
fees to ESG. These energy and dollar categories will be reported on a
monthly, year-to-date and program -to -date basis.
f) Actual program expenditures can be reported against program budget to
assure that programs are operated within budget.
NCPA/CMUA Reporting
ESG will enter Ukiah's appropriate program activity into the reporting tool for
NCPA/CMUA. ESG will remain current on California reporting requirements, as
well as any changes to the use of the reporting software. ESG will keep Ukiah's
Energy Efficiency programs in compliance with California state requirements.
Pricing:
To complete the tasks associated with program development and marketing
assistance (Items 1 & 2 under "Proposed Services"), ESG will charge $5,000. To
administer the program, provide on-site services to residential and small to mid-
sized commercial customers and report on program activity (Items 3-6), ESG will
charge $36,000 per year. This fee includes 12 days of field work in Ukiah at Ukiah
customer sites and all of the office/support services provided by the ESG office
staff. Additional days of field work in Ukiah (beyond 12 per year) would be charged
at a daily rate of $750 per day. Travel and overnight costs will be in addition to the
costs listed above and are expected to be approximately $400 per trip.
For some customers (large commercial and industrial) specialized, technical
services may be required to address Ukiah's and/or the customers needs. Fees for
these services will be in addition to the fees listed above, and will require pre -
approval by Ukiah staff and be priced at a mutually agreed upon hourly rate.
Billing
ESG will invoice Ukiah 50% of the initial set-up charge ($2,500) upon the signing
of the agreement. The remaining 50% will be charged following the completion and
acceptance by Ukiah of all tasks detailed in Items 1 & 2. ESG will bill Ukiah $3,000
at the beginning of each month for implementation and administration services
(and any associated travel costs) delivered during the previous month. Fees for
additional specialized, technical services, if used, would be billed at that time as
well.
Ability to Comply With Ukiah Terms & Conditions:
ESG has reviewed Ukiah's Agreement for Professional Consulting Services and
are able to comply with all contract terms and conditions. The following are
clarifications and/or items for discussion:
Exhibit A — Page 5 of 9
1) Section 4.1 Basis for Compensation - The contract language specifies
invoicing based on a time and materials basis, standard hourly rates,
and various classifications of ESG personnel. The fee structure,
described above, for ESG services under this proposal are not based on
a time and materials basis (common for purely consulting services).
2) Section 6.1.B.3 Worker's Compensation and Employer's Liability -All
services provided to ESG clients are delivered by owners of the
Company or independent contractors. Since ESG does not currently
maintain a payroll, there is no requirement for Worker's Comp.
3) Section 6.1.B.4 Professional Liability Coverage - ESG does not
currently maintain Professional Liability coverage. The consulting
services ESG provides does not result in the liability exposure that
architects or home appraisers would incur. Because of this, ESG's other
clients have waived the need for Professional Liability insurance, and we
would request the same consideration from Ukiah. If Ukiah determines
that Professional Liability is required, ESG will retain Professional
Liability coverage in the amount specified in the contract.
4) If selected, ESG will secure an Ukiah City Business License.
We have attached a printout from the California Secretary of State web site
listing ESG as an active, registered company in good standing.
We have also attached a copy of our Certificate of Liability Insurance so Ukiah
can review our present coverage and limits. If selected, ESG can provide
Ukiah with a Certificate of Insurance listing Ukiah as additionally insured.
If you have any questions regarding contract terms and conditions, insurance,
etc, ESG is available to discuss them with you.
Summary
ESG appreciates the opportunity to respond to this RFP, and appreciates Ukiah's
consideration. We are confident that we would be a strong addition to Ukiah's
team, and look forward to the opportunity to helping you develop a great portfolio
of energy -efficiency offers for your customers.
If you have any questions regarding this proposal, please contact Mark Gosvener
at 503-658-4239, or 503-869-5131 (cell).
Exhibit A - Page 6 of 9
EFFICIENCY #vt
Group
City of Ukiah July 10, 2006
Attn: Elizabeth Kirkley
411 W. Clay St.
Ukiah, CA 95482
Dear Ms. Kirkley,
Per your July 7 e-mail request for further clarification, we offer the following answers to
your questions:
'An itemization of the Public Benefit Programs you will be setting up and
administering."
Efficiency Service Group is staffed and prepared to operate, on a turnkey basis, all PBP
work for the City of Ukiah (City) including energy efficiency, renewable energy programs,
low income and senior assistance programs. In order to maximize the value provided to
Ukiah citizens from PBP dollars, we will first discuss with City staff their business and
community objectives. From there we will complete a market assessment, discuss the
results with the City of Ukiah and assemble a definitive list of the Public Benefit Programs
we would be developing and implementing.
In section 1.a of our proposal under "Proposed Services", we indicated the first step of the
services we provide will be a market assessment. Once this is accomplished, a portfolio
of offers will be assembled that will best meet the City's objectives.
The following provides a more detailed outline regarding our approach to this market
assessment:
In the City's RFP, it was mentioned that the City will be reviewing their energy efficiency
and renewable energy programs, along with low income and senior assistance programs,
with a goal of offering a more comprehensive package of services to their customers, and
tracking and accounting for these programs under the Public Benefits Programs (PBP)
established in the Public Utilities Code Section 385.
To finalize a list of programs and services to be offered by the City, the following steps
need to be taken:
1. Meet with the City to determine the goals and objectives the City wishes to
accomplish with their PBP programs and services. More specifically, what are the
City's "system/business" needs (energy savings, load reduction, load
growth/retention, importance of cost-effectiveness, etc), and what are the City's
"customer" goals/objectives (serving lower-income customers and seniors,
community relations, political realities, etc.)?
2. Review the City's current offers and evaluate their effectiveness toward meeting
the goals and objectives identified in step 1.
3. If there are gaps or under -served markets, modify existing offers or develop new
offers to assure that each system and customer goal is addressed with effective
offers.
Exhibit A — Page 7 of 9
4. Perform a budget analysis and allocate the budget across the various offers in a
way that meets the City's goals and objectives. It may be necessary to prioritize
and weight the goals and objectives identified in step 1 if the budget is too
constrained to provide robust offers in all customer segments. For example, if load
reduction is a high priority, we would assure that the budget accommodates
photovoltaic, high -efficiency A/C, commercial lighting, and/or other offers that
reduce peak.
After this process has been completed, the result will be a list of offers and services that
best meets the City's system/customer goals and objectives, within a given budget, while
addressing the requirements of AB 1890.
The list of offers may include, but not be limited to residential appliances, insulation and
window treatments, residential and commercial high efficiency A/C and heat pumps, solar
photovoltaic, commercial lighting, and large commercial and industrial projects. In
addition, incentives may be structured differently among various market segments in order
to overcome market barriers and meet the City's objectives (low-income and seniors, for
example).
Number of energy audits included in proposal and cost for additional audits;
each by category of residential, commercial & industrial.
We estimate that we can provide the following number of audits in a given day
Residential 4 or;
Commercial 2 or;
Industrial 1
It is important to note that the estimates include time in the field as well as ESG's time to
write up reports and respond to customer questions. The numbers above should be used
as guidelines. For example, a very large home may take longer to audit than a very small
commercial establishment.
Another consideration is the comprehensiveness of the audit the City wishes ESG to
perform. The above estimates are assuming that ESG will provide "scoping audits". A
scoping audit consists of an on-site visit where we identify the opportunities for energy
saving measures, a description of any incentives offered by the City, estimated energy
savings (if there are deemed savings available), and recommended next steps for the
customers to take.
The pricing in our initial proposal assumes twelve days of field work on customer locations
in Ukiah. As mentioned in our initial proposal, for some customers (large commercial and
industrial) specialized, technical services may be required to address Ukiah's and/or the
customer's needs. Fees for these services would be in addition to the fees listed in our
initial proposal, and will require pre -approval by Ukiah staff and be priced at a mutually
agreed upon hourly rate.
If the City requested that ESG perform additional days of field work in Ukiah (field day 13
and beyond), each day would be charged at a rate of $750 per day. Travel and overnight
costs will be in addition to the costs listed above and are expected to be approximately
$400 per trip. ESG will attempt to keep travel and overnight costs as low as possible by
combining trips to Ukiah with other California clients, and sharing costs among other
clients when possible.
Exhibit A — Page 8 of 9
Wi// the to// free customer inquiry phone number be manned or set up as a
recording with ca//s being returned?
ESG maintains a toll-free hotline that rings in our main office, and is answered live by our
Office Coordinator Monday — Friday, 8:OOam — 5:00 pm, excluding nationally recognized
holidays.
There are times, during staff meetings or when our Office Coordinator is helping another
customer, when a customer calling the hotline is directed to voice mail. When this
happens, calls are returned promptly. However, it is ESG's goal that customers reach a
live person when calling the hotline.
Billing & payment terms with the City of Ukiah.
Development and Implementation - ESG will invoice Ukiah 50% of the initial set-up
charge ($2,500) upon the signing of the agreement. The remaining 50% will be charged
following the completion and acceptance by Ukiah of all tasks detailed in Items 1 & 2 of
our initial proposal.
On-going Program Operations and Expenses - ESG will bill Ukiah $3,000 at the
beginning of each month for implementation and administration services (and any
associated travel costs) delivered during the previous month. Fees for additional
specialized, technical services, if used, would be billed at that time as well.
For example: If the City's programs are launched October 1, ESG will send out the first
invoice to the City within the first five working days of November for services rendered in
October.
ESG prefers that invoices be considered Net 15. If this creates a problem for the City,
ESG will accept Net 30.
Exhibit A — Page 9 of 9