HomeMy WebLinkAboutSouthern Gas Company - 2008-08-18 Council/Agency Meeting Held: i ' qoDr
Deferred/Continued to: �J
-AAppr ved ❑ Conditionally Approved ❑ Denied Ci ler 4 Sig natu
Council Meeting Date: 8/18/2008 Department ID Number: PW 08-54
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBEi
SUBMITTED BY: PAUL EMERY, INTERIM CITY ADMINISTRATOR
PREPARED BY: TRAVIS K. HOPKINS, PE, DIRECTOR OF P69LIC WORKS
SUBJECT: Approve Energy Efficiency Incentive Program Agreements
Statement of Issue, Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: In 2007, Southern California Gas Company announced a program to
provide incentive funding for installation of energy efficient natural-gas-powered equipment.
In fiscal year 2006/07, the Public Works Utilities Division applied for incentive payments for
previously purchased replacement engines at water wells #9 and #13. The Gas Company
has approved the applications and forwarded the attached incentive agreements that will
provide $12,856.80 (well #9) and $11,492.00 (well #13) in incentive funding.
Fundinq Source: The engines were purchased out of Water Fund Account
50685803.83700 (Water Production - Equipment, General) in fiscal year 2006/07. The
incentive funding revenue of$24,348.80 will be deposited in the Water Fund (506).
Recommended Action: Motion to:
1. Approve and authorize the Mayor to execute Local Business Energy Efficiency Program
Agreements for water well #9; and
2. Approve and authorize the Mayor to execute Local Business Energy Efficiency Program
Agreements for water well#13.
Alternative Action(s):
Do not approve the agreements. Please note that by this action the City will not receive
the incentive funding.
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 8/18/2008 DEPARTMENT ID NUMBER: PW 08-54
Analysis: Southern California Gas Company provides incentive funding for installation of
energy efficient natural-gas-powered equipment under its Business Energy Efficiency
Program. The program is designed to encourage customers to use natural gas as efficiently
as possible.
The City's water system utilizes a number of large natural gas engines at water well and
booster pump facilities. As part of normal equipment replacement, water well #9 and water
well #13 were scheduled for replacement in fiscal year 2006/07. After these engines were
ordered from the manufacturer, the incentive program was announced. The Water
Production Supervisor contacted the Gas Company to determine whether the engines could
be included in the incentive program and was told that the installations were indeed eligible.
Applications were submitted for review and the City was informed in October 2007 that each
engine was eligible for incentive funding.
The amount of funding is based on historical gas use, engine run time and load factors.
Based on this analysis, the attached incentive agreements were produced and, once
executed, will provide $12,856.80 (well #9) and $11,492.00 (well #13) in incentive funding.
Public Works Commission Action: Not applicable.
Strategic Plan Goal:
1-1 Improve the City's plan for funding and completing infrastructure needs, and develop
strategies for resolving crucial infrastructure problems to preserve the physical
foundation of the community and enable the community's value to grow.
1-2 Improve the energy efficiency of City equipment, vehicles, and buildings.
Environmental Status: Not applicable.
Attachment(s):
® -
1. Local Business Energy Efficiency Program Agreement Well #9
2. Local Business Energy Efficiency Program Agreement Well #13
-2- 8/4/2008 8:38 AM
ATTACHMENT # 1
July 16, 2008
Energy Efficiency Incentive Program Agreement
Dear Jay Kleinheinz,
Thank you for becoming an energy efficiency partner with The Gas Company. Our Business Energy
Efficiency Program is designed to encourage customers to use natural gas as efficiently as possible. The aim
of our incentives is to encourage your selection of the best possible energy efficient/cost effective solutions.
Enclosed with the Agreement is information regarding its Terms and Conditions and each energy efficiency
measure being evaluated.
Our analysis indicates that you would substantially benefit by implementing the following:
1 Process Equipment Replacement(PER) --Engine Rebuild/Replacement-- $12,856.80
The Gas Company is committing approximately$12,856.80 in incentive funding for the above measure.
Actual incentive funding will depend upon the final invoices and specifications.
Once you receive the final invoices(s), please forward a copy to me at the following address:
Southern Gas Company
Greg Heintz,Sr. Account Executive
1919 S. State College Blvd.
Anaheim, Ca 92806
Upon receipt of this information,and per the Terms and Conditions of the Agreement, I will finalize this
project and process an incentive check. Please note that your final invoice(s) must include itemized materials
costs. Please call me with any questions or comments that you might have.
SoCalGas strongly encourages you review our website at www.socalgas.com/energyefficiency/for any
applicable updates or modifications to BEEP as they may be pertinent to your application.
If you plan to replace or install other equipment in the near future,please contact me for current program
details.
Sincerely,
Greg Heintz
Sr.Account x tive
(714)634-3031
TP6GXH-11087 Page: 6
LOCAL BUSINESS ENERGY EFFICIENCY PROGRAM AGREEMENT
TERMS AND CONDITIONS
This Local Business Energy Efficiency Program(BEEP) Agreement("Agreement") is made by and
between Southern California Gas Company ("SoCalGas")and CITY OF HUNTINGTON BEACH
("Customer") as of April 09, 2007.
The parties agree as follows:
1. Customer represents and warrants that all information contained on Customer's application
#TP6GXH-11087 ("Application") , including, without limitation, information regarding Customer's
operations, facility and gas usage, is true and correct as of the date of the Application and the date of this
Agreement. The Application is incorporated herein by this reference.
1.1 Customer further warrants that Customer would not have undertaken an energy efficiency project
under BEEP at this time if SoCalGas had not offered a monetary or non-monetary incentive.
2. Under BEEP, Customer may qualify for(i)a monetary incentive, which shall consist of an incentive for
Process Equipment Replacement("PER") measures and/or an incentive for Custom Process Improvement
("CPI") measures(individually and collectively referred to herein as "Incentive"), or(ii)a non-monetary
incentive in the form of a recognition measure("Recognition Award"),each of which is more fully
described below. Customer understands and acknowledges that Customer may not receive both an
Incentive and a Recognition Award pursuant to this Agreement.
2.1 Qualified customers may be eligible for an Incentive for a PER measure by installing new high
efficiency commercial or industrial gas-fired equipment.
2.2 Qualified customers may be eligible for an Incentive for a CPI measure by implementing
comprehensive energy efficient gas-related processes.
2.3 Qualified customers may be eligible for a Recognition Award by increasing their natural gas
efficiency based on energy audit recommendations or knowledge gained through energy efficiency
seminars and consultations.
3. In order to qualify for an Incentive or Recognition Award, SoCalGas must validate the Application and
execute this Agreement prior to Customer's order to purchase the proposed energy system described in the
Application("System"), subject to the following:
3.1 Upon validation of the Application and execution of this Agreement, Customer shall have up to one
hundred twenty(120)days or until December 31, 2008 ("Time Period"), whichever comes first, to
order, install all components of the System and deliver to SoCalGas copies of all invoices for the
System from the applicable vendor. Invoices must be dated between January 1, 2006 and December
31, 2008. All uses herein of the words "install" or"installation" or similar phrases shall mean
complete installation such that the System is fully functional.
3.2 BEEP has a limited budget. Applications for BEEP will be accepted on a first-come, first-served
basis until allocated funds are depleted, or by December 31, 2008, whichever comes first. Provided
that funds are still available under BEEP for an Incentive or a Recognition Award, SoCalGas
reserves the right,at its sole discretion, to grant Customer an extension of time(which must be in
writing)beyond the one hundred twenty (120) day time period to install the System and submit the
required documentation to SoCalGas; subject,
TP6GXH-11087 Page: 1
however, to the December 31, 2008 final cut-off date(refer to Section 6 below). In the event that
the System has not been installed and the required documentation received by SoCalGas within the
Time Period(including any written extensions by SoCalGas), the Application and the Agreement,
including SoCalGas'obligation to pay the Incentive or deliver the Recognition Award, are void and
of no further force or effect.
3.3 The estimated amount of the Incentive, if any, is based upon(i)a percentage of equipment cost, or
(ii)a dollar amount per estimated annual therm saved, whichever is less, up to a maximum dollar
amount.Equipment costs exclude tax, freight, labor and other associated costs required in
installation of equipment.The estimated amount of the Incentive is identified in the "Incentive
Calculations" section of the Application.
3.4 The estimated amount of the Recognition Award, if any, is based upon the calculation of the
estimated amount of annual therms saved under PER and/or CPI for which Customer would
otherwise have been entitled to apply for an Incentive under PER and/or CPI,but has knowingly
forgone due to participation in the Recognition Program. The estimated amount of the Recognition
Award is identified in the "Recognition Award Schedule" attached to the Application.
3.5 If all terms and conditions of BEEP and this Agreement are complied with, including,but not
limited to, SoCalGas' verification of installation of the System and receipt of Customer's invoices for
the System(which shall include itemized materials costs), SoCalGas shall either pay the Incentive to
Customer or deliver the Recognition Award to Customer, as indicated on the Application.The
precise amount of the Incentive or Recognition Award is subject to subsequent adjustments by
SoCalGas, at its sole discretion. The maximum amount of the Incentive is$1,000,000 per Premise,
per year as defined by Tariff Definitions -Rule 1. The maximum amount of the Recognition Award
is set forth in the "Recognition Award Schedule" attached to the Application.
4. This Agreement is part of BEEP, which is administered by SoCalGas under the auspices of the California
Public Utilities Commission("Commission"). Therefore, payment of the Incentive or delivery of the
Recognition Award is specifically conditioned upon the following obligations of Customer, unless
otherwise indicated:
4.1 Customer shall properly install and operate the System at the Customer facility identified in the
Application for at least five(5)calendar years from the date of installation.
4.2 The account of Customer on which the System is installed must be on a SoCalGas core or non-core
tariff at the time this Agreement is executed and until the Incentive is paid or Recognition Award is
delivered.
4.3 SoCalGas shall have access to the System during Customer's normal business hours, and Customer
shall reasonably cooperate with SoCalGas, to verify installation of the System and equipment
specifications and to test and verify the efficiency of the System for ten(10)calendar years
following the date of installation of the System. Subject to reporting requirements of any law,
statute,order,judgment or other requirement of any governmental authority(whether local, state or
federal), including the Commission, such data will be kept confidential by SoCalGas and used only
for the purpose of obtaining energy savings estimates in order to evaluate BEEP.
4.4 Customer shall, at Commission-specified intervals, but not more frequently than on an annual basis,
provide SoCalGas and the Commission with up to three(3) years of pertinent historical Customer
monthly production data(or a monthly production index) for the System, as applicable. Customer
understands and agrees that Customer will reasonably cooperate with and provide available data to
SoCalGas and/or its independent contractors during
TP6GXH-11087 Page: 2
Customer's normal business hours for ten(10)calendar years following the date of installation of the
System. Such data will be kept confidential by SoCalGas and used only for the purpose of obtaining
energy savings estimates in order to evaluate BEEP.
4.5 SoCalGas may require Customer to install and operate a gas meter(s)on the System at Customer's
facility for measurement and evaluation purposes for ten(10)calendar years following the date of
installation of the System. Data generated by the meter will be provided to SoCalGas upon request
or pursuant to a schedule agreed to by the parties. Subject to reporting requirements of any law,
statute, order,judgment or other requirement of any governmental authority(whether local, state or
federal), including the Commission, such data will be kept confidential by SoCalGas and used only
for the purpose of obtaining energy savings estimates in order to evaluate BEEP.
4.6 Customer cannot receive an incentive or Recognition Award for the same measures as contained in
the Application and this Agreement from another utility, state or local program funded by the Public
Purpose Surcharge.
5. The term of this Agreement shall commence on the date that SoCalGas executes this Agreement and shall
terminate upon the date which is ten (10)calendar years from the date of installation of the System, unless
terminated earlier pursuant to this Section 5.This Agreement may be terminated by SoCalGas in the event
that(i)Customer fails to perform a material obligation under this Agreement or(ii)any statement,
representation or warranty made by Customer in connection with the Application or this Agreement is
false, misleading or inaccurate. In the event that this Agreement is terminated by SoCalGas, on SoCalGas'
demand, Customer shall promptly reimburse SoCalGas the full dollar amount of the Incentive or the
Recognition Award,or any percentage thereof, with interest at the rate of ten percent(t0%) per annum.
Such reimbursement shall be in the form of a certified check or cash payable to SoCalGas.
6. SoCalGas administers BEEP on an annual basis. Subject to Section 3 above, Customer's documentation
and proof of an operational installation must be received by SoCalGas on or before December 31, 2008 in
order for Customer to be eligible to receive an Incentive or a Recognition Award. Invoices should indicate
majority payments between January 1, 2006 and December 31, 2008.
7. In no event shall the parties be deemed partners, agents or joint venturers of the other.
8. Monetary and non-monetary incentives are generally considered subsidies for tax purposes and could be
taxable to Customer. Customer is urged to consult Customer's tax advisor concerning the taxability of the
Incentive or the Recognition Award. Incentives and Recognition Awards greater than$600 will be
reported to the IRS on Form t099 unless documentation of tax-exempt status is provided to SoCalGas.
SoCalGas is not responsible for any taxes that may be imposed on Customer as a result of Customer's
receipt of the Incentive or the Recognition Award.
9. This Agreement and BEEP are subject to regulation by the Commission and may be amended, modified,
or terminated by the Commission at any time without prior notice. BEEP may also be modified or
terminated by SoCalGas at any time without prior notice. References in this Agreement to SoCalGas and
the Commission shall include their respective employees, independent contractors and agents.
10. SoCalGas is neither the manufacturer nor the distributor of the System or any component of
the System and does not recommend or endorse the System or any components thereof.
SoCalGas makes no warranties,either expressed or implied, as to the performance, operation,
safety,efficiency, reliability, merchantability or fitness for a particular purpose,use or
application of the System or any component thereof. Customer agrees that Customer is solely
responsible for election,technical feasibility,installation,operational capability,reliability and
maintenance of the System and its components,and that SoCalGas makes no representations
regarding selection of the System or any components thereof. SoCalGas' review of the design,
construction,installation, operation or maintenance of the System or any components of the
System is not a representation as to the economic or technical feasibility, operational capability,
efficiency or reliability of the System or any components thereof. Customer shall not make any
such representations to its customers or any third parties on behalf of SoCalGas.
TP6GXH-11087 Page: 3
11. SoCalGas shall not be liable for any damages of any kind for replacement of Customer's
former equipment, for the System or its failure,or otherwise arising from SoCalGas'
performance or nonperformance of its obligations under this Agreement,including direct,
indirect,consequential, special,incidental or punitive damages, regardless of the form of action,
whether in contract,indemnity, warranty,strict liability or tort, including negligence of any
kind.
12. To the greatest extent permitted by applicable law, Customer shall indemnify,defend and hold
harmless SoCalGas,its affiliates,present and future parent companies,subsidiaries,officers,
directors, employees and agents from and against any and all claims,demands,losses,damages,
costs,expenses and liability (legal,contractual or otherwise) which arise from or are in any way
connected with any (i) injury to or death of persons,including,but not limited to,employees of
SoCalGas or Customer,(ii) injury or damage to property,including, but not limited to,
property of SoCalGas or Customer,(iii) violation of local,state or federal law,statute or
regulation,including,but not limited to,environmental laws or regulations,(iv)strict liability
imposed by any law or regulation, or(v) third-party claims incurred by SoCalGas,to the extent
such injury,damage,violation,strict liability or claim (as set forth in (i) through (v)above)
arises from or is in any way connected with this Agreement or Customer's performance or
nonperformance of this Agreement, however caused, regardless of any strict liability or
negligence of SoCalGas. This indemnity shall not apply to the extent that such injury,damage,
cost,expense, liability, strict liability,violation of law or regulation or claim is caused by the
gross negligence or willful misconduct of SoCalGas. Customer shall,on SoCalGas's request,
defend any action,claim or suit asserting a claim which might be covered by this indemnity.
Customer shall pay all costs and expenses that may be incurred by SoCalGas in enforcing this
indemnity,including reasonable attorneys' fees. This indemnity shall survive the termination of
this Agreement for any reason
13. Each party shall designate a representative for the other party to contact regarding this Agreement. Each
party shall notify the other in writing if such representative changes within ten(10)business days of such
change.The first such representatives are as follows.
CUSTOMER SOCALGAS
WATER WELL#9
Name: Jay Kleinheinz Greg Heintz
Address: 8851 WARNER 1919 S.State College Blvd.
City,State Zip: HUNTINGTN BCH CA 92647 Anaheim Ca 92806
Telephone: 714-374-1512 (714)634-3031
Facsimile: 714-847-1067 (714)937-7711
14. This Agreement sets forth the entire understanding of the parties and supersedes any prior representations,
understandings, negotiations or agreements, both oral and written. No amendment, modification or change
to this Agreement shall be binding or effective unless expressly set forth in writing and signed by an
authorized representative of SoCalGas. This Agreement shall not be modified by usage of trade,course of
performance, or course of dealing.
15. The invalidity, in whole or in part, of any provisions of this Agreement shall not affect the validity of any
other provisions contained in this Agreement.
TP6GXH-11087 Page: 4
6. Customer shall not assign this Agreement at any time without the prior written consent of SoCalGas. Any
such assignment without the prior written consent of SoCalGas shall be null and void.
j 17. A waiver of any right under this Agreement shall not be deemed a subsequent waiver of that right or any
other right under this Agreement.
18. This Agreement shall be interpreted and enforced according to the laws of the State of California. Sole
jurisdiction and venue shall be with the courts in Los Angeles County, California.
19. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same document.
20. In the event that Customer chooses to participate in the On-Bill Financing Program offered by SoCalGas
to obtain financing for the purchase or installation of the System or any component thereof, Customer
acknowledges and understands that the terms and conditions of participation in the On-Bill Financing
Program will control(including, without limitation,the calculation of the incentive amount for the
equipment mentioned in this incentive form) if there is any conflict between the terms and conditions
applicable to participation in BEEP and the On-Bill Financing Program.
By execution of this Agreement, Customer certifies that the System meets all BEEP eligibility requirements.
Customer further certifies that Customer has read and understands the Application, this Agreement and, if
applicable, the Recognition Award Schedule, and Customer agrees to abide by BEEP requirements and the
terms and conditions set forth in the Application and this Agreement.
Each individual executing this Agreement on behalf of Customer and SoCalGas represents and warrants that
he or she is duly authorized to execute and deliver this Agreement on behalf of such party.
In witness whereof,the parties have executed this Agreement as of the date of execution by SoCalGas.
CUSTO SOCALGAS
9 _
B
Name: Debbie Cook ` Greg Heint
Title: Mayor Sr.Account Ex�edutive
Date: .S-r a-1 a oo at 2-0U '
APPROVED AS'fO FORM
J;N " c ,City Aftnrney
E i e V19110M
Deputy City Att®MOY
TP6GXH-8085 Page: 5
y Southern California Gas Company
2006 Energy Efficiency Program Application
e t a . e e • -• • • 071TW008
o ® @ o m- s o s
Alias: WATER WELL 49 Account No: 2-3702-67-456-1 Rep Name: Heintz,Greg
Customer: CITY OF HUNTINGTON BEACH Premise ID: 20099822 Title: Sr.Account Executiv
Tax ID: 95-6000723 GNN ID: 5165 Address: 1919 S.State Colleg
Tax Status: Not Assigned BA ID: 1199092400 Anaheim,Ca 92806
Tariff Rate: G-EN Core Flag: Facility ID: 1199092400
SIC: 4941 -WATER SUPPLY Language other than English Mail Loc.: Sc8313
Lease building Phone: (714)634-3031
NAICS: 221310 Water Supply and Irrigation Systems Less than 10 employees Fax: (714)937-7711
✓ None of the above TPID: TP6gxh
'Addresses Co((&Dondance Plant Information:
Mailing Address: PO BOX 190 Square Feet: 200 Plant oper. 24
City/Zip: HUNTINGTN BCH CA 92648 Hours/Day:
Number of 40 Plant oper. 7
Service Address: 8851 WARNER AVE Employees: Days/Week:
City/Zip: HUNTINGTN BCH CA 92647 Plant oper.
Weeks/Year:
Other Address:
City/Zip:
'o o • m, o • e
Application Rec'vd.: 4/10/2007
Date of Visit: 4/11/2008
Q Gas Operating Cost Reduction Electric Operating Cost Reductions Equipment Failure
Pending Equipment Failure Air Quality/Emission Issues ✓❑ Increased Production Levels
Improved Product Quality Boosted Labor Production
Other:
Other:
Was customer familiar with the details of the DSM program prior to the final equipment decision? Yes
Did the DSM incentive induce the customer's purchase of a higher efficiency unit or system? Yes
Did the DSM incentive induce the customer's purchase of a unit or system earlier than otherwise? No
Page: 1
A•• • 1: • • • -•Iacement-(PER),,.w Engine Rebuild/ReplacementCOMMITTED 1 11:
!Fquiporma i on
•♦ • Existing:,Equipment Committ
Equipment Usage Description 2 WELL PUMPING WELL PUMPING
Equipment Usage Description
No.Of Units 1 1
Rated Capacity(HP) 409 HP. 409
Manufacturer WAUKESHA MOTOR CO. WAUKESHA MOTOR CO.
Model VHP 3521 VHP 3521
Efficiency level 25% 28%
Output description WATER
Expected installation date 03/16/1905 10/01/2008
Actual/expected production 100,000
Annual therms usage 150,000 133,929
Serial Number
r
Total invoice cost $225,000.00
Pct.of incentive applicable to equip.cost 30%
Incentive rate($/therm) $0.80 PER THERM
Estimated annual therms savings 16,071
'Incentive Calculations
Incentive based on rate($) $12,856.80
Applicable equipment cost($) $67,500.00
Estimated incentive($) $12,856.80
Page:2
Incentives Summary and Total
D- e s e
Measure 1. Process Equipment Replacement(PER)-Engine Rebuild/Replacement $12,856.80
Total $t 2,856.80
e . . e
Customer Printed Name Date
So.Cal.Gas Customer Representative Printed Name Date
6• o
Com/Ind.Services Manager Printed Name Date
Page 3
ATTACHMENT #2
July 15, 2008
Energy Efficiency Incentive Program Agreement
Dear Jay Kleinheinz,
Thank you for becoming an energy efficiency partner with The Gas Company. Our Business Energy
Efficiency Program is designed to encourage customers to use natural gas as efficiently as possible. The aim
of our incentives is to encourage your selection of the best possible energy efficient/cost effective solutions.
Enclosed with the Agreement is information regarding its Terms and Conditions and each energy efficiency
measure being evaluated.
Our analysis indicates that you would substantially benefit by implementing the following:
I Process Equipment Replacement(PER)-- Engine Rebuild/Replacement-- $11,492.00
The Gas Company is committing approximately $11,492.00 in incentive funding for the above measure.
Actual incentive funding will depend upon the final invoices and specifications.
Once you receive the final invoices(s), please forward a copy to me at the following address:
Southern Gas Company
Greg Heintz, Sr. Account Executive
1919 S. State College Blvd.
Anaheim, Ca 92806
Upon receipt of this information, and per the Terms and Conditions of the Agreement, I will finalize this
project and process an incentive check. Please note that your final invoice(s) must include itemized materials
costs. Please call me with any questions or comments that you might have.
SoCalGas strongly encourages you review our website at www.socalgas.com/energyefficiency/for any
applicable updates or modifications to BEEP as they may be pertinent to your application.
If you plan to replace or install other equipment in the near future, please contact me for current program
details.
Sincerely,
Greg It iitz
Sr. Account Exec' tive
(714) 634-3031
TP6GXH-10185 Page: 6
tr.
LOCAL BUSINESS ENERGY EFFICIENCY PROGRAM AGREEMENT
TERMS AND CONDITIONS
This Local Business Energy Efficiency Program (BEEP) Agreement("Agreement") is made by and
between Southern California Gas Company ("SoCalGas")and CITY OF HUNTINGTON BEACH
("Customer") as of April 09, 2007.
The parties agree as follows:
I. Customer represents and warrants that all information contained on Customer's application
#TP6GXH-10 185 ("Application") , including, without limitation, information regarding Customer's
operations, facility and gas usage, is true and correct as of the date of the Application and the date of this
Agreement. The Application is incorporated herein by this reference.
1.1 Customer further warrants that Customer would not have undertaken an energy efficiency project
under BEEP at this time if SoCalGas had not offered a monetary or non-monetary incentive.
2. Under BEEP, Customer may qualify for(i)a monetary incentive, which shall consist of an incentive for
Process Equipment Replacement('PER") measures and/or an incentive for Custom Process Improvement
("CPI") measures(individually and collectively referred to herein as "Incentive"),or(ii)a non-monetary
incentive in the form of a recognition measure('Recognition Award"),each of which is more fully
described below. Customer understands and acknowledges that Customer may not receive both an
Incentive and a Recognition Award pursuant to this Agreement.
2.1 Qualified customers may be eligible for an Incentive for a PER measure by installing new high
efficiency commercial or industrial gas-fired equipment.
2.2 Qualified customers may be eligible for an Incentive for a CPI measure by implementing
comprehensive energy efficient gas-related processes.
2.3 Qualified customers may be eligible for a Recognition Award by increasing their natural gas
efficiency based on energy audit recommendations or knowledge gained through energy efficiency
seminars and consultations.
3. In order to qualify for an Incentive or Recognition Award, SoCalGas must validate the Application and
execute this Agreement prior to Customer's order to purchase the proposed energy system described in the
Application("System"), subject to the following:
3.1 Upon validation of the Application and execution of this Agreement, Customer shall have up to one
hundred twenty (t20)days or until December 31, 2008 ("Time Period"), whichever comes first, to
order, install all components of the System and deliver to SoCalGas copies of all invoices for the
System from the applicable vendor. Invoices must be dated between January 1, 2006 and December
31, 2008.All uses herein of the words "install" or"installation" or similar phrases shall mean
complete installation such that the System is fully functional.
3.2 BEEP has a limited budget. Applications for BEEP will be accepted on a first-come, first-served
basis until allocated funds are depleted, or by December 31, 2008, whichever comes first. Provided
that funds are still available under BEEP for an Incentive or a Recognition Award, SoCalGas
reserves the right, at its sole discretion, to grant Customer an extension of time(which must be in
writing)beyond the one hundred twenty (120)day time period to install the System and submit the
required documentation to SoCalGas; subject,
TP6GXH-10185 Page: 1
however, to the December 31, 2008 final cut-off date (refer to Section 6 below). In the event that
the System has not been installed and the required documentation received by SoCalGas within the
Time Period(including any written extensions by SoCalGas), the Application and the Agreement,
including SoCalGas'obligation to pay the Incentive or deliver the Recognition Award,are void and
of no further force or effect.
3.3 The estimated amount of the Incentive, if any, is based upon (i)a percentage of equipment cost, or
(ii)a dollar amount per estimated annual therm saved, whichever is less, up to a maximum dollar
amount. Equipment costs exclude tax, freight, labor and other associated costs required in
installation of equipment.The estimated amount of the Incentive is identified in the "Incentive
Calculations" section of the Application.
3.4 The estimated amount of the Recognition Award, if any, is based upon the calculation of the
estimated amount of annual therms saved under PER and/or CPI for which Customer would
otherwise have been entitled to apply for an Incentive under PER and/or CPI, but has knowingly
forgone due to participation in the Recognition Program. The estimated amount of the Recognition
Award is identified in the "Recognition Award Schedule" attached to the Application.
3.5 If all terms and conditions of BEEP and this Agreement are complied with, including,but not
limited to, SoCalGas' verification of installation of the System and receipt of Customer's invoices for
the System(which shall include itemized materials costs), SoCalGas shall either pay the Incentive to
Customer or deliver the Recognition Award to Customer, as indicated on the Application. The
precise amount of the Incentive or Recognition Award is subject to subsequent adjustments by
SoCalGas, at its sole discretion. The maximum amount of the Incentive is$1,000,000 per Premise,
per year as defined by Tariff Definitions - Rule 1. The maximum amount of the Recognition Award
is set forth in the "Recognition Award Schedule" attached to the Application.
4. This Agreement is part of BEEP, which is administered by SoCalGas under the auspices of the California
Public Utilities Comm ission("Commission"). Therefore, payment of the Incentive or delivery of the
Recognition Award is specifically conditioned upon the following obligations of Customer, unless
otherwise indicated:
4.1 Customer shall properly install and operate the System at the Customer facility identified in the
Application for at least five(5)calendar years from the date of installation.
4.2 The account of Customer on which the System is installed must be on a SoCalGas core or non-core
tariff at the time this Agreement is executed and until the Incentive is paid or Recognition Award is
delivered.
4.3 SoCalGas shall have access to the System during Customer's normal business hours, and Customer
shall reasonably cooperate with SoCalGas, to verify installation of the System and equipment
specifications and to test and verify the efficiency of the System for ten (10)calendar years
following the date of installation of the System. Subject to reporting requirements of any law,
statute, order,judgment or other requirement of any governmental authority(whether local, state or
federal), including the Commission, such data will be kept confidential by SoCalGas and used only
for the purpose of obtaining energy savings estimates in order to evaluate BEEP.
4.4 Customer shall, at Commission-specified intervals, but not more frequently than on an annual basis,
provide SoCalGas and the Commission with up to three(3)years of pertinent historical Customer
monthly production data(or a monthly production index) for the System, as applicable. Customer
understands and agrees that Customer will reasonably cooperate with and provide available data to
SoCalGas and/or its independent contractors during
TP6GXH-10185 Page: 2
Customer's normal business hours for ten(10)calendar years following the date of installation of the
System. Such data will be kept confidential by SoCalGas and used only for the purpose of obtaining
energy savings estimates in order to evaluate BEEP.
4.5 SoCalGas may require Customer to install and operate a gas meter(s)on the System at Customer's
facility for measurement and evaluation purposes for ten(10)calendar years following the date of
installation of the System. Data generated by the meter will be provided to SoCalGas upon request
or pursuant to a schedule agreed to by the parties. Subject to reporting requirements of any law,
statute,order,judgment or other requirement of any governmental authority (whether local, state or
federal), including the Commission, such data will be kept confidential by SoCalGas and used only
for the purpose of obtaining energy savings estimates in order to evaluate BEEP.
4.6 Customer cannot receive an incentive or Recognition Award for the same measures as contained in
the Application and this Agreement from another utility, state or local program funded by the Public
Purpose Surcharge.
5. The term of this Agreement shall commence on the date that SoCalGas executes this Agreement and shall
terminate upon the date which is ten(10)calendar years from the date of installation of the System, unless
terminated earlier pursuant to this Section 5. This Agreement may be terminated by SoCalGas in the event
that(i)Customer fails to perform a material obligation under this Agreement or(ii)any statement,
representation or warranty made by Customer in connection with the Application or this Agreement is
false, misleading or inaccurate. In the event that this Agreement is terminated by SoCalGas, on SoCalGas'
demand, Customer shall promptly reimburse SoCalGas the full dollar amount of the Incentive or the
Recognition Award,or any percentage thereof, with interest at the rate of ten percent(10%) per annum.
Such reimbursement shall be in the form of a certified check or cash payable to SoCalGas.
6. SoCalGas administers BEEP on an annual basis. Subject to Section 3 above, Customer's documentation
and proof of an operational installation must be received by SoCalGas on or before December 31, 2008 in
order for Customer to be eligible to receive an Incentive or a Recognition Award. Invoices should indicate
majority payments between January 1, 2006 and December 31, 2008.
7. In no event shall the parties be deemed partners, agents or joint venturers of the other.
8. Monetary and non-monetary incentives are generally considered subsidies for tax purposes and could be
taxable to Customer.Customer is urged to consult Customer's tax advisor concerning the taxability of the
Incentive or the Recognition Award. Incentives and Recognition Awards greater than $600 will be
reported to the IRS on Form 1099 unless documentation of tax-exempt status is provided to SoCalGas.
SoCalGas is not responsible for any taxes that may be imposed on Customer as a result of Customer's
receipt of the Incentive or the Recognition Award.
9. This Agreement and BEEP are subject to regulation by the Commission and may be amended, modified,
or terminated by the Commission at any time without prior notice. BEEP may also be modified or
terminated by SoCalGas at any time without prior notice. References in this Agreement to SoCalGas and
the Commission shall include their respective employees, independent contractors and agents.
10. SoCalGas is neither the manufacturer nor the distributor of the System or any component of
the System and does not recommend or endorse the System or any components thereof.
SoCalGas makes no warranties,either expressed or implied,as to the performance,operation,
safety,efficiency, reliability, merchantability or fitness for a particular purpose,use or
application of the System or any component thereof. Customer agrees that Customer is solely
responsible for election,technical feasibility,installation,operational capability, reliability and
maintenance of the System and its components,and that SoCalGas makes no representations
regarding selection of the System or any components thereof. SoCalGas' review of the design,
construction, installation, operation or maintenance of the System or any components of the
System is not a representation as to the economic or technical feasibility, operational capability,
efficiency or reliability of the System or any components thereof. Customer shall not make any
such representations to its customers or any third parties on behalf of SoCalGas.
TP6GXH-10185 Page: 3
11. SoCalGas shall not be liable for any damages of any kind for replacement of Customer's
former equipment,for the System or its failure,or otherwise arising from SoCalGas'
performance or nonperformance of its obligations under this Agreement,including direct,
indirect,consequential,special,incidental or punitive damages, regardless of the form of action,
whether in contract,indemnity, warranty,strict liability or tort, including negligence of any
kind.
12. To the greatest extent permitted by applicable law,Customer shall indemnity,defend and hold
harmless SoCalGas, its affiliates,present and future parent companies,subsidiaries,officers,
directors,employees and agents from and against any and all claims,demands,losses,damages,
costs,expenses and liability (legal,contractual or otherwise) which arise from or are in any way
connected with any (i) injury to or death of persons, including, but not limited to, employees of
SoCalGas or Customer,(ii) injury or damage to property, including, but not limited to,
property of SoCalGas or Customer,(iii) violation of local,state or federal law,statute or
regulation,including,but not limited to,environmental laws or regulations,(iv)strict liability
imposed by any law or regulation, or (v)third-party claims incurred by SoCalGas,to the extent
such injury,damage, violation,strict liability or claim (as set forth in (i) through (v)above)
arises from or is in any way connected with this Agreement or Customer's performance or
nonperformance of this Agreement, however caused,regardless of any strict liability or
negligence of SoCalGas. This indemnity shall not apply to the extent that such injury,damage,
cost,expense,liability,strict liability,violation of law or regulation or claim is caused by the
gross negligence or willful misconduct of SoCalGas. Customer shall,on SoCalGas's request,
defend any action,claim or suit asserting a claim which might be covered by this indemnity.
Customer shall pay all costs and expenses that may be incurred by SoCalGas in enforcing this
indemnity,including reasonable attorneys' fees.This indemnity shall survive the termination of
this Agreement for any reason
13. Each party shall designate a representative for the other party to contact regarding this Agreement. Each
party shall notify the other in writing if such representative changes within ten(10)business days of such
change.The first such representatives are as follows.
CUSTOMER SOCALGAS
Name: Jay Kleinheinz Greg Heintz
Address: 14561 SPRINGDALE 1919 S.State College Blvd.
City,State Zip: HUNTINGTN BCH CA 92647 Anaheim Ca 92806
Telephone: (714) 374-1512 (714)634-3031
Facsimile: (714) 847-1067 (714)937-7711
14. This Agreement sets forth the entire understanding of the parties and supersedes any prior representations,
understandings, negotiations or agreements, both oral and written. No amendment, modification or change
to this Agreement shall be binding or effective unless expressly set forth in writing and signed by an
authorized representative of SoCalGas. This Agreement shall not be modified by usage of trade,course of
performance, or course of dealing.
15. The invalidity, in whole or in part, of any provisions of this Agreement shall not affect the validity of any
other provisions contained in this Agreement.
TP6GXH-10185 Page: 4
I b.'Customer shall not assign this Agreement at any time without the prior written consent of SoCalGas. Any
such assignment without the prior written consent of SoCalGas shall be null and void.
17. A waiver of any right under this Agreement shall not be deemed a subsequent waiver of that right or any
other right under this Agreement.
18. This Agreement shall be interpreted and enforced according to the laws of the State of California. Sole
jurisdiction and venue shall be with the courts in Los Angeles County, California.
19. This Agreement may be executed in counterparts, each of which shall be deemed an original,but all of
which together shall constitute one and the same document.
20. In the event that Customer chooses to participate in the On-Bill Financing Program offered by SoCalGas
to obtain financing for the purchase or installation of the System or any component thereof, Customer
acknowledges and understands that the terms and conditions of participation in the On-Bill Financing
Program will control (including,without limitation, the calculation of the incentive amount for the
equipment mentioned in this incentive form) if there is any conflict between the terms and conditions
applicable to participation in BEEP and the On-Bill Financing Program.
By execution of this Agreement, Customer certifies that the System meets all BEEP eligibility requirements.
Customer further certifies that Customer has read and understands the Application, this Agreement and, if
applicable, the Recognition Award Schedule, and Customer agrees to abide by BEEP requirements and the
terms and conditions set forth in the Application and this Agreement.
Each individual executing this Agreement on behalf of Customer and SoCalGas represents and warrants that
he or she is duly authorized to execute and deliver this Agreement on behalf of such party.
In witness whereof, the parties have executed this Agreement as of the date of execution by SoCalGas.
fi
C ST'O SOCALGAS
B
Debbie Cook Greg Heintz
Name: _ ,
Title: Mayor Sr. Account txec'6tive
Date: ST 010o'
,AP ROVED AS TO FQFR(k�
JE 1dlR T�1q Gsorn ;
k3
TP6GXH-8084 Page: 5
Southern California Gas Company
2006 Energy Efficiency Program Application
ee s D • • • e �e a -e a -e g D A' A° AA:
Alias: Account No: 18-3717-480-610-1 Rep Name: Heintz,Greg
Customer: CITY OF HUNTINGTON BEACH Premise ID: 110105209 Title: Sr.Account Executiv
Tax ID: 95-6000723 GNN ID: 5145 Address: 1919 S.State Colleg
Tax Status: Not Assigned BA ID: 1320109500 Anaheim,Ca 92806
Tariff Rate: Core Flag: Facility ID: 1320109500
SIC: 4941 -WATER SUPPLY 0 Language other than English Mail Loc.: Sc8313
Lease building Phone: (714)634-3031
NAICS: 221310 Water Supply and Irrigation Systems Less than 10 employees Fax: (714)937-7711
None of the above TPID: TP6gxh
•o• - o - o• •. ' o 0
Mailing Address: Square Feet: 800 Plant oper. 24
City/Zip: Hours/Day:
p' Number of 40 Plant oper. 7
Service Address: 14561 SPRINGDALE ST ® Employees: Days/Week:
City/Zip: HUNTINGTN BCH CA 92647 Plant oper.
Weeks/Year:
Other Address: 0
City/Zip:
•o• o ®, o 0 0
Application Rec'vd.: 4/10/2007
Date of Visit: 4/1/2008
® Gas Operating Cost Reduction 0 Electric Operating Cost Reductions 0 Equipment Failure
�] Pending Equipment Failure ❑ Air Quality/Emission Issues ® Increased Production Levels
[� Improved Product Quality Boosted Labor Production
Other:
Other:
Was customer familiar with the details of the DSM program prior to the final equipment decision? Yes
Did the DSM incentive induce the customer's purchase of a higher efficiency unit or system? Yes
Did the DSM incentive induce the customer's purchase of a unit or system earlier than otherwise? No
Page: 1 .
•r • ® i r • • • r • • • ®' ® 1 i• Irli
e o o o
-• o �,,f#o��n%f%npjRentl Com •s • • e •e s
Equipment Usage Description 4 WELL PUMPING WELL PUMPING
Equipment Usage Description
No.Of Units 1 1
Rated Capacity(HP) 330 HP. 330
Manufacturer WAUKESHA MOTOR CO. WAUKESHA MOTOR CO.
Model VHP 2895 VHP 3521
Efficiency level 25% 28%
Output description WATER
Expected installation date 03/16/1905 07/01/2008
Actual/expected production
Annual therms usage 108,178 93,813
Serial Number NA
IIIIIIIIIIIIII, Id!
Total invoice cost $125,000.00
Pct.of incentive applicable to equip.cost 30%
Incentive rate($/therm) $0.80 PER THERM
Estimated annual therms savings 14,365
0
Incentive based on rate($) $11,492.00
Applicable equipment cost($) $37,500.00
Estimated incentive($) $11,492.00
Page:2
` • • e & '• 1 0 0 1 1' 1 1
Incentives Summary and Total
® • e o.
Measure 1. Process Equipment Replacement(PER)-Engine Rebuild/Replacement $11,492.00
Total $11,492.00
e • • e
Customer Printed Name Date
So.Cal.Gas Customer Representative Printed Name Date
• . e
Com/Ind.Services Manager Printed Name Date
Page 3
RCA ROUTING SHEET
INITIATING DEPARTMENT: Public Works
SUBJECT: Approve Energy Efficiency Incentive Program
Agreements
COUNCIL MEETING DATE: August 18, 2008
RCA ATTACHMENTS" STATUS'..,
Ordinance (w/exhibits & legislative draft if applicable) Attached El
Not Applicable E
Resolution (w/exhibits & legislative draft if applicable) Attached El
Not Applicable
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Applicable
Contract/Agreement (w/exhibits if applicable) Attached
(Signed in full by the City Attorney) Not Applicable ❑
Subleases, Third Party Agreements, etc. Attached El
(Approved as to form by City Attorney) Not Applicable M
Certificates of Insurance (Approved by the City Attorney) Attached El
Not Applicable N
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached El
Not Applicable
Bonds (if applicable) NoAttached
t Applicable
Staff Report (If applicable) Attached El
Not Applicable M
Commission, Board or Committee Report (If applicable) Attached El
Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
EXPLANATION FOR MISSING AT ACHIVIENTS
REV18WED RETURNED
Administrative Staff
Deputy City Administrator (Initial)
City Administrator (Initial)
City Clerk
''-EXPLANATION FOR RETURN OF ITEM:
—
woSpaoe,Fbr?City.Cle� Use OW
RCA Author: Ken Dills:jg