Loading...
HomeMy WebLinkAboutReso 115-20 APPROVING A DESIGN-BUILD ENERGY SAVINGS PERFORMANCE CONTRACT WITH WILLDAN ENERGY SOLUTIONSReso No. 115-20, Item 4.5, Adopted 11/17/2020 Page 1 of 1 RESOLUTION NO. 115 - 20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A DESIGN-BUILD ENERGY SAVINGS PERFORMANCE CONTRACT WITH WILLDAN ENERGY SOLUTIONS WHEREAS, the City purchases a substantial amount of electricity each year to operate its facilities, and the City Council desires to reduce its electricity costs while reducing greenhouse gas emissions; and WHEREAS, the City issued a Request for Proposals (RFP) on September 23, 2019 for the purpose of evaluating the current state of municipal infrastructure and operations to identify future opportunities for reducing utility and operating costs; and WHEREAS, after the RFP period closed, the City evaluated the submitted proposals and determined Willdan Energy Solutions submitted the best value proposal based on responsiveness to the RFP, experience of the firm, experience and qualifications of the individuals assigned in the proposal, and satisfaction of previous clients; and WHEREAS, the City Council now desires to award a Design-Build Energy Savings Performance Contract (Agreement), attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin hereby approves the Agreement, attached hereto as Exhibit A, with Willdan Energy Solutions. BE IT FURTHER RESOLVED that the City Council of the City of Dublin does hereby authorize the City Manager or her designee to execute the Agreement and take other such actions necessary to effectuate its purpose and the purpose of this Resolution. PASSED, APPROVED AND ADOPTED this 17th day of November 2020, by the following vote: AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _____________________________ City Clerk City of Dublin : Energy Savings Performance Contract | Page 1 DESIGN-BUILD ENERGY SAVINGS PERFORMANCE CONTRACT This Design-Build Energy Savings Performance Contract (the “Contract”) is made and entered into as of this day of , 202 , between the Performance Contractor: Willdan Energy Solutions, a California corporation (“WES”), and City of Dublin, a California municipal corporation (“Customer”), for the purpose of installing certain energy, water or other operating cost saving equipment described in SCHEDULE A (SCOPE OF WORK), and providing other services designed to save energy, water or other operating costs for the Customer’s property and buildings (the “Premises”). RECITALS WHEREAS, Customer owns and operates the Premises, and is in need of energy saving equipment and service designed to save costs at said Premises; WHEREAS, WES has made an assessment of the energy consumption characteristics of the Premises and existing equipment; WHEREAS, Customer desires to retain WES to purchase, install and service certain equipment of the type or class described in SCHEDULE A (SCOPE OF WORK), attached hereto and made a part hereof and to provide other services for the purpose of achieving cost reductions within Premises, as more fully set forth herein; and WHEREAS, Customer is authorized under the Constitution and the laws of the State of California to enter into this Contract for the purposes set forth herein. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and intending to be legally bound hereby, customer and WES hereto covenant and agree as follows: energy savings performance contract documents SECTION 1 PERFORMANCE CONTRACT DOCUMENTS Section 1.1 The Performance Contract Documents (hereinafter, “ESPC Documents”) consist of this Agreement between Customer and WES and its attached Schedules and Exhibits (hereinafter, the "Contract"); other documents listed in this Agreement; and Modifications issued after execution of this Agreement. A Modification is (1) a written amendment to the Contract signed by both parties, including the Performance Contract Amendment, (2) a Change Order, or (3) a Change Directive. Section 1.2 The ESPC Documents form the Contract. The Contract represents the entire and integrated agreement between the parties and supersedes prior negotiations, representations, or agreements, either written or oral. The Contract may be amended or modified only by a Modification. The ESPC Documents shall not be construed to create a contractual relationship of any kind between any persons or entities other than the Customer and WES. Section 1.3 Attachments, Schedules, Exhibits, and Appendices: WES has prepared and Customer has approved and accepted the Schedules as set forth below, copies of which are attached hereto and made part of this Contract by reference. Note: Some Schedules, Exhibits and Appendices will be supplied in a later project Phase. Schedules SCHEDULE A. SCOPE OF WORK SCHEDULE B. COMPENSATION TO WES (Broken out by phase) SCHEDULE D. INSURANCE REQUIREMENTS SCHEDULE E. ENERGY SAVINGS GUARANTEE (Completed with EXHIBIT 1.) SCHEDULE F. BASELINE ENERGY CONSUMPTION (Completed with EXHIBIT 1.) SCHEDULE G. SAVINGS MEASUREMENT & CALCULATION FORMULAE; METHODOLOGY TO ADJUST BASELINE (Completed with EXHIBIT 1.) Exhibits EXHIBIT 1. PERFORMANCE CONTRACT AMENDMENT (Proposed at the conclusion of the IGA Phase) EXHIBIT 2. CERTIFICATE OF SUBSTATIAL COMPLETION EXHIBIT 3. CERTIFICATE OF ACCEPTANCE – PROJECT FINAL COMPLETION City of Dublin : Energy Savings Performance Contract | Page 2 SECTION 2 THE WORK OF THE ENERGY SAVINGS PERFORMANCE CONTRACT Section 2.1 The term "Work" means the design, engineering, construction and related services required to fulfill WES’s obligations under the ESPC Documents, whether completed or partially completed, and includes all labor, materials, equipment, and services provided or to be provided by WES. Section 2.2 WES shall fully execute the Work described in the ESPC Documents, except to the extent specifically indicated in the ESPC Documents to be the responsibility of others. Section 2.3 WES shall perform all Work through Contractors or through the WES’s own forces. Section 2.4 WES shall perform the Work in compliance with applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities in effect at the time of Contract or Amendment execution as applicable. If WES performs Work contrary to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, WES shall assume responsibility for such Work and shall bear the costs attributable to correction. SECTION 3 PHASES OF THE WORK Section 3.1 Work shall be performed in three phases: • The Investment Grade Audit (“IGA”) Phase • The Construction Phase • The Performance Guarantee Phase outlined in SCHEDULE A (SCOPE OF WORK). WES will commence work for the IGA Phase upon execution of this ESPC Agreement. The Construction and Guarantee Phases will commence at the conclusion of the IGA Phase upon the execution of EXHIBIT 1 (PERFORMANCE CONTRACT AMENDMENT). Section 3.2 The Scope of Work and Fee for each phase is defined in SCHEDULE A (SCOPE OF WORK) and SCHEDULE B (COMPENSATION TO WES) respectively. SECTION 4 ENERGY USAGE RECORDS AND DATA Section 4.1 Customer has furnished or shall furnish (or cause its energy suppliers to furnish) to WES, upon its request, all of its records and complete data concerning energy usage and energy-related maintenance for the Premises, including the following data for the most current twenty-six (26) month period; utility records; occupancy information; descriptions of any changes in the building structure or its heating, cooling, lighting or other systems or energy requirements; descriptions of all energy consuming or saving equipment used in the Premises; bills and records relating to maintenance of energy-related equipment, and a description of energy management procedures presently utilized. If requested, Customer shall also provide any prior energy audits of the Premises, and copies of Customer’s financial statements and records related to energy usage and operations for said 26-month period at said Premises, and shall make agents and employees familiar with such records available for consultations and discu ssions with WES. SECTION 5 COMMENCEMENT DATE AND TERMS Section 5.1 Commencement Date: The effective date of this agreement is the date of the agreement’s last signature. Section 5.2 Construction Phase: The Construction Phase will be a term set forth in EXHIBIT 1. (PERFORMANCE CONTRACT AMENDMENT). Section 5.3 Warrantee Commencement: Warrantees commence on the date of Substantial Completion, as defined in SCHEDULE B (COMPENSATION TO WES), of the portion of the Project as established by the issuance of the Certificate of Substantial Completion. Section 5.4 Guarantee Phase: The Guarantee Phase will begin upon submission of the Certificate of Acceptance – Project Completion and end in accordance with EXHIBIT 1. (PERFORMANCE CONTRACT AMENDMENT). Section 5.5 Weather disruptions, availability of necessary equipment, remediation of hazardous materials, and other delays beyond the control of WES shall not count toward the Construction Period. The completion dates will be modified by change order for these events. SECTION 6 CONTRACT SUM City of Dublin : Energy Savings Performance Contract | Page 3 Section 6.1 The Contract Sum is the amount to be paid to WES for the performance of the Work. This amount includes: • Stipulated Sum amount for the IGA Phase services as identified in SCHEDULE B (COMPENSATION TO WES), and • Stipulated Sum equaling the Cost of the Work plus Performance Contractor’s Fee for the Construction Phase and Guarantee Phase as identified in SCHEDULE B (COMPENSATION TO WES), and • Cost for the first year of the Guarantee Phase are included in the Construction Phase Contract Sum. Beginning in year two of the Guarantee Phase, Customer will have the option to pay WES a Stipulated Sum annually for each subsequent year of the Guarantee Phase if they wish to continue the Guarantee Phase services as identified in SCHEDULE B (COMPENSATION TO WES). SECTION 7 PAYMENTS TO WES Section 7.1 WES Compensation and Fees: WES’s fees and compensation are set forth in SCHEDULE B (COMPENSATION TO WES). Section 7.2 Billing Information Procedure: Payments due to WES shall be calculated each month and paid in accordance with SCHEDULE B (COMPENSATION TO WES). Section 7.3 Payment: Customer shall pay WES within 30 days of receipt of WES’s application for payment. Amounts unpaid thirty (30) days after the invoice date shall bear interest at 1.5% per month. Section 7.4 Effective Date of Payment Obligation: See SCHEDULE B (COMPENSATION TO WES). SECTION 8 FISCAL FUNDING Section 8.1 Non-appropriation of Funds: In the event no Customer or other funds or insufficient Customer or other funds are appropriated and budgeted, and funds are otherwise unavailable by any means whatsoever in any fiscal period for which payments are due WES under this Contract, then the Customer will, not less than 30 days prior to the end of such applicable fiscal period, in writing, notify WES of such occurrence and this Contract shall terminate on the last day of the fiscal period for which appropriations were made without penalty or expense to the Customer of any kind whatsoever, except as to the portions of payments herein agreed upon for which Customer and/or other funds shall have been appropriated and budgeted or are otherwise available. SECTION 9 CONSTRUCTION SCHEDULE AND EQUIPMENT INSTALLATION; APPROVAL Section 9.1 Construction Schedule: Construction and equipment installation shall proceed in accordance with the construction period in SECTION 5 (COMMENCEMENT DATE AND TERMS). A detailed schedule of construction will be submitted to Customer following Commencement of the Performance Contract Amendment. This schedule will be updated throughout construction to reflect ongoing progress on the Project. Section 9.2 Systems Startup and Equipment Commissioning: WES shall conduct a thorough and systematic performance test of each element and total system of the installed equipment in accordance with the procedures specified in SCHEDULE G.1 (System Start-up & Commissioning), provided as part of the Performance Contract Amendment (EXHIBIT 1), and prior to acceptance of the project by Customer. WES shall provide notice to the Customer of the scheduled test(s) and the Customer and/or its designees shall have the right to be present at any or all such tests conducted by WES and/or manufacturers of the equipment. WES shall be responsible for correcting and/or adjusting all deficiencies in systems and equipment operations that may be observed during system commissioning procedures. SECTION 10 EQUIPMENT WARRANTIES Section 10.1 WES covenants and agrees that all equipment installed as part of this Contract is new, in good and proper working condition and protected by appropriate written warranties covering all parts and equipment performance. WES further agrees to deliver to Customer for inspection and approval; to pursue rights and remedies against manufacturer and supplier of the equipment under the warranties in the event of equipment malfunction or improper or defective function, and defects in parts, workmanship and performance, to notify the Customer whenever defects in equipment parts or performance occur which give rise to such rights and remedies and those rights and remedies are exercised by WES. The cost of any risk of damage or damage to the equipment and its performance, i ncluding damage to property and equipment of the Customer or the Premises, due to WES’s failure to exercise its warranty rights shall be borne solely by WES. Section 10.2 All warranties shall be transferable and extend to the Customer. The warranties shall specify that only new, and not reconditioned, parts may be used and installed when repair is necessitated by malfunction. City of Dublin : Energy Savings Performance Contract | Page 4 Section 10.3 All warranties required hereunder shall be in force for a minimum of one year from the Substantial Completion date as defined in Section 5.3 hereof. Section 10.4 Notwithstanding the above, nothing in this Section shall be construed to alleviate/relieve WES from complying with its obligations to perform under all terms and conditions of this Contract and as set forth in all attached Schedules. SECTION 11 TRAINING BY WES Section 11.1 WES shall conduct the training program described in SCHEDULE G.9 (Training Requirements), provided as part of the Performance Contract Amendment (EXHIBIT 1). The training specified in SCHEDULE G.9 (Training Requirements) must be completed prior to acceptance of the equipment installation. WES shall provide ongoing training whenever requested by Customer with respect to updated or altered equipment, including upgraded software. Such training shall be provided at no charge to the Customer. SECTION 12 PERMITS AND APPROVALS; COORDINATION Section 12.1 Permits and Approvals: Customer shall use its best efforts to assist WES in obtaining all necessary permits and approvals for installation of the Equipment. In no event shall Customer, however, be responsible for payment of any permit fees. The equipment and the operation of the equipment by WES shall at all times conform to all federal, state and local code requirements. WES shall furnish copies of each permit or license which is required to perform the work to the Customer before WES commences the portion of the work requiring such permit or license. Section 12.2 Coordination During Installation: The Customer and WES shall coordinate the activities of WES’s equipment installers with those of the Customer, its employees, and agents. WES shall not commit or permit any act which will interfere with the performance of business activities conducted by the Customer or its employees without prior written approval of the Customer. SECTION 13 PERFORMANCE BY WES Section 13.1 WES shall perform all tasks/phases under the Contract, including construction, and install the Equipment in suc h a manner so as not to harm the structural integrity of the buildings or their operating systems. WES shall repair and restore to its original condition any area of damage caused by WES’s performance under this Contract. The Customer reserves the right to review the work performed by WES and to direct WES to take certain corrective action if, in the opinion of the Customer, the structural integrity of the Premises or its operating system is or will be harmed. All costs associated with such corrective action to damage caused by WES’s performance of the work shall be borne by WES. Section 13.2 WES shall remain responsible for the professional and technical accuracy of all services performed, whether by WES or its subcontractors or others on its behalf, throughout the term of this Contract. SECTION 14 OWNERSHIP Section 14.1 Ownership of Certain Proprietary Property Rights: Customer shall not, by virtue of this Contract, acquire any interest in any formulas, patterns, devices, secret inventions or processes, copyrights, patents, other intellectual or proprietary rights, or similar items of property which are or may be used in connection with the Equipment. WES shall grant to the Customer a perpetual, irrevocable royalty-free license for any and all software or other intellectual property rights necessary for the Customer to continue to operate, maintain, and repair the Equ ipment in a manner that will yield maximal energy consumption reductions. Section 14.2 Ownership of Existing Equipment: Ownership of the equipment and materials presently existing at the Premises at the time of execution of this Contract shall remain the property of the Customer even if it is replaced or its operation made unnecessary by work performed by WES pursuant to this Contract. If applicable, WES shall advise the Customer in writing of all equipment and materials to be replaced at the Premises and the Customer shall within 30 days designate in writing to WES which equipment and materials that should not be disposed of off-site by WES. It is understood and agreed to by both Parties that the Customer shall be responsible for and designate the location and storage for any equipment and materials that should not be disposed of off -site. WES shall be responsible for the disposal of all equipment and materials designated by the Customer as disposable off-site in accordance with all applicable laws and regulations regarding such disposal. Section 14.3 New Equipment: All new equipment or materials supplied to the Customer shall become the property of the Customer. SECTION 15 LOCATION AND ACCESS Section 15.1 Customer shall provide sufficient space on the Premises for the installation and operation of the Equipment and shall take reasonable steps to protect such Equipment from harm, theft and misuse. Customer shall provide access to the City of Dublin : Energy Savings Performance Contract | Page 5 Premises for WES to perform any function related to this Contract during regular business hours, or such other reasonable hours as may be requested by WES and acceptable to the Customer. WES’s access to Premises to make emergency repairs or corrections as it may determine are needed shall not be unreasonably restricted by the Customer. SECTION 16 EQUIPMENT SERVICE Section 16.1 Actions by WES: WES shall provide all service, repairs, and adjustments to the Equipment Installed under terms of this Contract pursuant to SCHEDULE G.4 (WES Maintenance Responsibilities), provided as part the Performance Contract Amendment (EXHIBIT 1). Customer shall incur no cost for Equipment service, repairs, and adjustments, except as set forth in SCHEDULE B (COMPENSATION TO WES), provided, however, that when the need for maintenance or repairs principally arises due to the negligence or willful misconduct of the Customer or any employee or other agent of Customer, and WES can so demonstrate such causal connection, WES may charge Customer for the actual cost of the maintenance or repair insofar as such cost is not covered by any warranty or insurance proceeds. Section 16.2 Malfunctions and Emergencies: Customer shall use its best efforts to notify WES or its designee(s) within 24 hours after the Customer’s actual knowledge and occurrence of: (i) any malfunction in the operation of the Equipment or any preexisting energy related equipment that might materially impact upon the guaranteed energy savings, (ii) any interruption or alteration to the energy supply to the Premises, or (iii) any alteration or modification in any energy- related equipment or its operation. Section 16.3 Where Customer exercises due diligence in attempting to assess the existence of a malfunction, interruption, or alteration it shall be deemed not at fault in failing to correctly identify such conditions as having a material impact upon the guaranteed energy savings. Customer shall notify WES within twenty-four (24) hours upon its having actual knowledge of any emergency condition affecting the Equipment. WES shall respond or its designee(s) shall respond within twenty-four (24) hours to promptly proceed with corrective measures. Any telephonic notice of such conditions by Customer shall be followed within three business days by written notice to WES from Customer. If Customer unreasonably delays in so notifying WES of a malfunction or emergency, and the malfunction or emergency is not otherwise corrected or remedied, such conditions will be treated as a Material Change and the applicable provisions of SECTION 19 (MATERIAL CHANGES) shall be applied. Section 16.4 Actions by Customer: Customer shall not move, remove, modify, alter, or change in any way the Equipment or any part thereof without the prior written approval of WES except as set forth in SCHEDULE G.5 (Customer Maintenance Responsibilities), provided as part the Performance Contract Amendment (EXHIBIT 1). Notwithstanding the foregoing, Customer may take reasonable steps to protect the Equipment if, due to an emergency, it is not possible or reasonable to notify WES before taking any such actions. In the event of such an emergency, Customer shall take reasonable steps to protect the Equipment from damage or injury and shall follow instructions for emergency action provided in advance by WES. Customer agrees to maintain the Premises in good repair and to protect and preserve all portions thereof, which may in any way affect the operation or maintenance of the Equipment. SECTION 17 UPGRADING OR ALTERING THE EQUIPMENT Section 17.1 WES shall at all times have the right, subject to Customer’s prior written approval, which approval shall not be unreasonably withheld, to change the Equipment, revise any procedures for the operation of the equipment or implement other energy saving actions in the Premises, provided that: • WES complies with the standards of comfort and services set forth in SCHEDULE G.3 (Standards of Comfort) , provided as part the Performance Contract Amendment (EXHIBIT 1); • such modifications or additions to, or replacement of the Equipment, and any operational changes, or new procedures are necessary to enable WES to achieve the energy savings at the Premises and; • any cost incurred relative to such modifications, additions or replacement of the Equipment, or operational changes or new procedures shall be the responsibility of WES. Section 17.2 All modifications, additions or replacements of the Equipment or revisions to operating or other procedures shall be described in a supplemental Schedule(s) to be provided to the Customer for approval, which shall not be unreasonably withheld, provided that any replacement of the Equipment shall be new and have equal or better potential to reduce energy consumption at the Premises than the Equipment being replaced. WES shall update any and all software to be used in connection with the Equipment in accordance with the provisions of Section 14.1 (Ownership of Certain Proprietary Rights). All replacements of and alterations or additions to the Equipment shall become part of the City of Dublin : Energy Savings Performance Contract | Page 6 Equipment described in SCHEDULE A (SCOPE OF WORK) and shall be covered by the provisions and terms of SECTION 9 (CONSTRUCTION SCHEDULE AND EQUIPMENT INSTALLATION; APPROVAL). SECTION 18 STANDARDS OF COMFORT Section 18.1 WES will maintain and operate the Equipment in a manner that will provide the standards of heating, cooling, hot water, and lighting, as described in SCHEDULE G.3 (Standards of Comfort) , provided as part the Performance Contract Amendment (EXHIBIT 1). SECTION 19 MATERIAL CHANGES Section 19.1 Material Changes Defined: A Material Change shall include any change in or to the Premises, whether structural, operational or otherwise in nature which reasonably could be expected, in the judgment of the Customer, to increase or decrease annual energy consumption in accordance with the provisions and procedures set forth in SCHEDULE E (BASELINE ENERGY CONSUMPTION) and SCHEDULE F (SAVINGS MEASUREMENT & CALCULATION FORMULAE; METHODOLOGY TO ADJUST BASELINE) , provided as part the Performance Contract Amendment (EXHIBIT 1), by at least 0.5% after adjustments for climatic variations. Actions by the Customer which may result in Material Change include but are not limited to the following: • manner of use of Premises by the Customer; or • hours of operation for the Premises or for any equipment or energy using systems operating at the Premises; or • permanent changes in the comfort and service parameters set forth in SCHEDULE G.3 (Standards of Comfort) , provided as part the Performance Contract Amendment (EXHIBIT 1); or • occupancy of the Premises; or • structure of the Premises; or • types and quantity of equipment used at the Premises; or • modification, renovation or construction at the Premises; or • the Customer’s failure to provide maintenance of or repairs to the Equipment in accordance with SCHEDULE G.5 (Customer Maintenance Responsibilities) , provided as part the Performance Contract Amendment (EXHIBIT 1); or • any other conditions other than climate affecting energy use at the Premises. Section 19.2 Reported Material Changes: Notice by Customer: The Customer shall use its best efforts to deliver to WES a written notice describing all actual or proposed Material Changes in the Premises or in the operation of the Premises at least 30 days before any actual or proposed Material Changes is implemented or as soon as is practicable after an emergency or unplanned event. Notice to WES of Material Changes which result because of a Bona Fide emergency or other situation which precludes advanced notification shall be deemed sufficient if given by the Custom er within 48 hours after having actual knowledge that the event constituting the Material Change occurred or was discovered by the Customer to have occurred. Section 19.3 Unreported Material Change: In the absence of any Material Changes in the Premises or in their operations, the baseline energy consumption as set forth in SCHEDULE E (BASELINE ENERGY CONSUMPTION) , provided as part the Performance Contract Amendment (EXHIBIT 1), should not change more than 2% during any month from the projected energy use for that month, after adjustments for changes in climate conditions. Therefore, if energy consumption for any month as set forth in SCHEDULE E (BASELINE ENERGY CONSUMPTION) deviates by more than 2% from the energy consumption of the same month of the preceding contract year after adjustments for changes to climatic conditions, then such deviation shall be timely reviewed by WES to ascertain the cause of deviation. WES shall report its findings to the Customer in a timely manner and WES shall determine what, if any, adjustments to the baseline will be made in accordance with the provisions set forth in SCHEDULE F (SAVINGS MEASUREMENT & CALCULATION FORMULAE; METHODOLOGY TO ADJUST BASELINE) and SCHEDULE E (BASELINE ENERGY CONSUMPTION) , provided as part the Performance Contract Amendment (EXHIBIT 1). SECTION 20 INDEMNIFICATION Section 20.1 WES shall indemnify, defend with counsel acceptable to Customer, and hold harmless Customer and its officers, elected officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, City of Dublin : Energy Savings Performance Contract | Page 7 expenses, and costs (including without limitation, attorney’s fees and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with WES’s performance of the services called for or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of the Customer. Section 20.2 Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by California Civil Code Section 2782, as may be amended from time to time, such duties of WES to indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782. Section 20.3 WES’s obligation to defend and indemnify shall not be excused because of WES’s inability to evaluate Liability or because WES evaluates Liability and determines that WES is not liable to the claimant. WES must respond within thirty (30) days to the tender of any claim for defense and indemnity by Customer. If WES fails to accept or reject a tender of defense and indemnity within thirty (30) days, in addition to any other remedy authorized by law, so much of the money due WES under and by virtue of this Agreement as shall reasonably be considered necessary b y Customer, may be retained by Customer until disposition has been made of the claim or suit for damages, or until WES accepts or rejects the tender of defense, whichever occurs first. SECTION 21 CONDITIONS BEYOND CONTROL OF THE PARTIES Section 21.1 If a party (“performing party”) shall be unable to reasonably perform any of its obligations under this Contract due to acts of Nature, insurrections or riots, or similar events, this Contract shall at the other party’s option (i) remain in effect but said performing party’s obligations shall be suspended until the said events shall have ended; or, (ii) be terminated upon ten (10) days’ notice to the performing party, in which event neither party shall have any further liability to the other. SECTION 22 EVENTS OF DEFAULT Section 22.1 Events of Default by Customer: Each of the following events or conditions shall constitute an “Event of Default” by Customer: • any failure by Customer to pay WES any sum due for a service and maintenance period of more than 30 days after written notification by WES that Customer is delinquent in making payment and provided that WES is not in default in its performance under the terms of this Contract; or • any other material failure by Customer to perform or comply with the terms and conditions of this Contract, including breach of any covenant contained herein, provided that such failure continues for 30 days after notice to Customer demanding that such failures to perform be cured or if such cure cannot be effected in thirty days, Customer shall be deemed to have cured default u pon the commencement of a cure within thirty days and diligent subsequent completion thereof; • any representation or warranty furnished by Customer in this Contract which was false or misleading in any material respect when made. Section 22.2 Events of Default by WES: Each of the following events or conditions shall constitute an “Event of Default” by WES: • the standards of comfort and service set forth in SCHEDULE G.3 (Standards of Comfort) , provided as part the Performance Contract Amendment (EXHIBIT 1), are not provided due to failure of WES to properly design, install, maintain, repair or adjust the Equipment except that such failure, if corrected or cur ed within 30 days after written notice by Customer to WES demanding that such failure be cured, shall be deemed cured for the purpose of this Contract. (ii) any representation or warranty furnished by WES in this Contract is false or misleading in any material respect when made; • failure to furnish and install the Equipment and make it ready for use within the time specified by this Contrac t as set forth in SCHEDULE A (SCOPE OF WORK) and SECTION 5 (COMMENCEMENT DATE AND TERMS); • any failure by WES to perform or comply with the terms and conditions of this Contract, including breach of any covenant contained herein except that such failure, if corrected or cured within 30 days after written notice by the Customer to WES demanding that such failure to perform be cured, shall be deemed cured for purposes of this Contract; • any lien or encumbrance upon the equipment by any subcontractor, laborer or material man of WES; City of Dublin : Energy Savings Performance Contract | Page 8 • the filing of a bankruptcy petition whether by WES or its creditors against WES which proceeding shall not have been dismissed within 30 days of its filing, or an involuntary assignment for the benefit of all creditors or the liquidation of WES; • Failure by WES to pay any amount due the Customer or perform any obligation under the terms of this Contract or the Energy Savings Guarantee as set forth in SCHEDULE D (ENERGY SAVINGS GUARANTEE) , provided as part the Performance Contract Amendment (EXHIBIT 1). SECTION 23 REMEDIES UPON DEFAULT Section 23.1 Remedies upon Default: All disputes shall be submitted to the individuals listed in SECTION 35 (NOTICE) for resolution. In the event that a remedy acceptable to both Customer and WES cannot be found, either party may seek remedy as outlined in SECTION 24 (MEDIATION). SECTION 24 MEDIATION Section 24.1 Any Claim arising out of or related to the Contract shall be subject to mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings by either party. Section 24.2 The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association currently in effect. Request for mediation shall be filed in writing with the other party to the Contract and with the American Arbitration Association. The request may be made concurrently with the filing of a demand for arbitration but, in such event, mediation shall proceed in advance of arbitration or legal or equitable proceedings, which shall be stayed pending mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. Section 24.3 The parties shall share the mediator's fee and any filing fees equally. Section 24.4 The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Section 24.5 Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. SECTION 25 REPRESENTATIONS AND WARRANTIES Section 25.1 Each party warrants and represents to the other that: • it has all requisite power, authority, licenses, permits, and franchises, corporate or otherwise, to execute and deliver this Contract and perform its obligations hereunder; • its execution, delivery, and performance of this Contract have been duly authorized by, or are in accordance with, its organic instruments, and this Contract has been duly executed and delivered for it by the signatories so authorized, and it constitutes its legal, valid, and binding obligation; • its execution, delivery, and performance of this Contract will not breach or violate, or constitute a default under any Contract, lease or instrument to which it is a party or by which it or its properties may be b ound or affected; or • it has not received any notice, nor to the best of its knowledge, is there pending or threatened any notice, of any violation of any applicable laws, ordinances, regulations, rules, decrees, awards, permits or orders which would materially and adversely affect its ability to perform hereunder. SECTION 26 ADDITIONAL REPRESENTATIONS OF THE PARTIES Section 26.1 Customer hereby warrants, represents and promises that it has provided or shall provide timely to WES, all records relating to energy usage and energy-related maintenance of Premises requested by WES and the information set forth therein is, and all information in other records to be subsequently provided pursuant to this Contract will be true and accurate in all material respects. WES hereby warrants, represents and promises that: • before commencing performance of this Contract, it shall have become licensed or otherwise permitted to do business in the State of California; • it shall make available, upon reasonable request, all documents relating to its performance under this Contract, including all contracts and subcontracts entered into; City of Dublin : Energy Savings Performance Contract | Page 9 • it shall use qualified subcontractors and delegates, licensed and bonded in this state to perform the work so subcontracted or delegated pursuant to the terms hereof; • that it is financially solvent, able to pay its debts as they mature and possessed of suffic ient working capital to complete the Work and perform its obligations under this Contract. SECTION 27 WAIVER OF LIENS Section 27.1 All property of the Customer is exempt from attachment and levy. SECTION 28 COMPLIANCE WITH LAW AND STANDARD PRACTICES Section 28.1 WES shall perform its obligations hereunder in compliance with any and all applicable federal, state, and local laws, rules, and regulations, in accordance with sound engineering and safety practices, and in compliance with any and all reasonable rules of Customer relative to the Premises. WES shall be responsible for obtaining all governmental permits, consents, and authorizations as may be required to perform its obligations hereunder. SECTION 29 INDEPENDENT CAPACITY OF THE CONTRACTOR Section 29.1 The parties hereto agree that WES, and any agents and employees of WES, in the performance of this Contract, shall act in an independent capacity and not as officers, employees, or agents of the Customer. SECTION 30 NO WAIVER Section 30.1 The failure of WES or Customer to insist upon the strict performance of the terms and conditions hereof shall not constitute or be construed as a waiver or relinquishment of either party’s right to thereafter enforce the same in accordance with this Contract in the event of a continuing or subsequent default on the part of WES or Customer. SECTION 31 SEVERABILITY Section 31.1 In the event that any clause or provision of this Contract or any part thereof shall be declared invalid, void, or unenforceable by any court having jurisdiction, such invalidity shall not affect the validity or enforceability of the remaining portions of this Contract unless the result would be manifestly inequitable or unconscionable. SECTION 32 COMPLETE CONTRACT Section 32.1 This Contract, when executed, together with all Schedules attached hereto or to be attached hereto, as provided for by this Contract shall constitute the entire Contract between both parties and this Contract may not be amended, modified, or terminated except by a written Contract signed by the parties hereto. SECTION 33 FURTHER DOCUMENTS Section 33.1 The parties shall execute and deliver all documents and perform all further acts t hat may be reasonably necessary to effectuate the provisions of this Contract. SECTION 34 APPLICABLE LAW Section 34.1 This Contract and the construction and enforceability thereof shall be interpreted under the laws of the State of California SECTION 35 NOTICE Section 35.1 Any notice required or permitted hereunder shall be deemed sufficient if given in writing and delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or delivered to a nationally recognized express mail service, charges prepaid, receipt obtained, to the address shown below or to such other persons or addresses as are specified by similar notice. TO WES: TO CUSTOMER: Willdan Energy Solutions City of Dublin Attention: Scott McVey Attention: City Manager 2401 East Katella Ave #300 100 Civic Plaza Anaheim, CA 92806 Dublin, CA 94568 SECTION 36 CUSTOMER’S COMPLIANCE WITH FACILITIES MAINTENANCE CHECKLIST City of Dublin : Energy Savings Performance Contract | Page 10 Section 36.1 The parties acknowledge and agree that WES has entered into this Contract in reliance upon the prospect of earning compensation based on guaranteed energy savings in energy used at Premises, as set forth on SCHEDULE D (ENERGY SAVINGS GUARANTEE) and SCHEDULE B (COMPENSATION TO WES), provided as part the Performance Contract Amendment (EXHIBIT 1). Section 36.2 The parties further acknowledge and agree that the said guaranteed energy savings would not likely be obtained unless certain procedures and methods of operation designed for energy conservation shall be implemented and followed by Customer on a regular and continuous basis. Section 36.3 Customer agrees that it shall adhere to, follow and implement the energy conservation procedures and methods of operation to be set forth on SCHEDULE G.5 (Customer Maintenance Responsibilities), provided as part the Performance Contract Amendment (EXHIBIT 1)and made a part thereof after Customer’s approval. Section 36.4 Customer agrees that WES shall have the right once a month , with prior notice, to inspect Premises to determine if Customer is complying, and shall have complied with its obligations as set forth above in Section 36.3 For the purpose of determining Customer’s said compliance, the checklist to be set forth at SCHEDULE G.6 (Facility Maintenance Checklist), provided as part the Performance Contract Amendment (EXHIBIT 1), as completed and recorded by WES during its monthly inspections, shall be used to measure and record Customer’s said compliance. Customer shall make the Premises available to WES for and during each monthly inspection and shall have the right to witness each inspection and the recordations on the checklist. SECTION 37 HEADINGS Section 37.1 Headings and subtitles used throughout this Contract are for the purpose of convenience only, and no heading or subtitle shall modify or be used to interpret the text of any section. SECTION 38 BONDS Section 38.1 Any and all bonds obtained by WES for this project shall specifically exclude coverage for those portions of the Contract or the Work pertaining to design services and any other part of this Contract and the Contract Documents which do not relate specifically to construction management and supervision of Work for purchasing and installing of Equipment, or for work to be accomplished by the Customer. SECTION 39 INSURANCE Section 39.1 WES shall procure and maintain in effect insurance coverage as set forth in EXHIBIT C (Insurance Requirements), attached hereto and incorporated herein. SECTION 40 EPACT 179D Section 40.1 To encourage the implementation of a more energy-efficient system, Section 179D of the Internal Revenue Code provides for the allocation of a tax deduction based on the efficiency of the design. Since a public entity is exempt from paying taxes, the Code permits this allocation to be passed along to the designer of the system as an additional incentive to incorporate the most efficient system affordable. Accordingly, once the building/system is placed into service, it is understood and agreed that the tax deduction granted pursuant to Section 179D of the Internal Revenue Code will be allocated to Willdan, in consideration of which Willdan will use its best efforts to maximize the energy efficiency of the design being contracted. City of Dublin : Energy Savings Performance Contract | Page 13 SCHEDULE A. SCOPE OF WORK 1. The purpose of this proposal is to provide Investment Grade Audit (“IGA”) Phase services for Premises [see preliminary project table on the follow page] needed to develop a Performance Contract proposal - Performance Contract Amendment (EXHIBIT 1). 2. GENERAL a) Work shall be performed in three phases: The IGA Phase, Construction Phase, and Guarantee Phase as outlined in this Schedule, SCHEDULE A (SCOPE OF WORK). Willdan Energy Solutions (WES) will commence work for the IGA Phase upon execution of this Energy Savings Performance Contract. The Constructio n Phase and Guarantee Phase will commence at the conclusion of the IGA Phase upon the execution of EXHIBIT 1. (PERFORMANCE CONTRACT AMENDMENT). b) The Scope of Work and Fee for each phase is defined in SCHEDULE A (SCOPE OF WORK) and SCHEDULE B (COMPENSATION TO WES) respectively. 3. INVESTMENT GRADE AUDIT PHASE SERVICES: a) General: (1) WES shall advise the Customer on all proposed projects, selection of materials, building systems and equipment, financing options, and utility incentives. WES shall also provide the Customer with recommendations, consistent with the Customer’s Criteria, on constructability; availability of materials and labor; time requirements for procurement, installation and construction; and factors related to construction cost including, but not limited to, costs of alternative designs or materials, preliminary budgets, life-cycle data, and possible cost reductions. b) Engineering and Design: During the IGA Phase, WES shall perform: (1) Design required to develop the scope and project solution that meets Performance Contract Program Requirements as identified in SCHEDULE A.5. (2) Develop design in enough detail to procure subcontractors and materials and develop the Contract Sum included in the Performance Contract Amendment (EXHIBIT 1). (a) Perform a survey of the spaces and existing systems throughout the Premises to document existing conditions. (b) Work with the Customer to establish project goals and criteria. (c) Prepare design documents and/or criteria for subcontractor pricing procurement to install modifications to HVAC, electrical, and plumbing systems. c) Pre-Construction Services: During the IGA Phase, WES shall perform: (1) WES shall assemble all design documents necessary for pricing procurement. (2) WES shall engage subcontractors; familiarize them with the project, site and bidding information; and procure pricing for the purposes of establishing WES’s fixed cost proposal in the Performance Contract Amendment. (3) WES shall coordinate with the Customer, subconsultants, financiers, utilities and other stakeholders throughout the IGA Phase. d) Energy-Related Services: (1) Walk through facility to become familiar with existing systems and the building’s operations. This will also include gathering as-built plans and O&M data on existing HVAC systems. (2) Energy savings for each recommend project will be quantified through a calibrated computer energy model or other industry standard energy calculation procedure. (3) Energy Performance Contract Project economics will be quantified and summarized throughout each phase of design, including: (a) Fixed project costs City of Dublin : Energy Savings Performance Contract | Page 14 (b) Guaranteed energy savings (c) Maintenance and other costs savings (d) Utility incentives & grants (e) Project financing terms and debt service payment options e) Preparation of the Performance Contract Amendment: (1) When the Drawings and Specifications are sufficiently complete, WES shall prepare a Performance Contract Addendum as outlined in EXHIBIT 1. (PERFORMANCE CONTRACT AMENDMENT). This Addendum shall include: (a) Contract Sum (b) Contract Time (c) Construction Schedule (d) Energy and other cost savings (e) Grants, financing, and incentive opportunities (f) Project Cashflow (g) Information Upon Which Amendment if Based, including: (i) Scope of Work (ii) Drawings (iii) Specifications (iv) Supplementary and other Conditions of the Contract (v) Deviations from the Performance Contract Program Requirements as identified in SCHEDULE A.3. (h) WES’s Personnel, Contractors and Suppliers 4. CONSTRUCTION PHASE SERVICES: a) Construction Documents: (1) As the Drawings and Specifications may not be finished at the time the Performance Contract Amendment is prepared, the WES shall provide in this amendment for further development of the Drawings and Specifications for construction. Such further development does not include such things as changes in scope, systems, kinds, and quality of materials, finishes or equipment, all of which, if required, shall be incorporated by Change Order. b) Performance Contractor’s Construction-Phase Responsibility: (1) WES shall supervise and direct the Work, using the WES’s best skill and attention. WES shall be solely responsible for, and have control over, construction means, methods, techniques, sequences and procedures, and for coordinating all portions of the Work under the Contract, unless the ESPC Documents give other specific instructions concerning these matters. (2) WES shall schedule Work and coordinate Subcontractors and any other persons on the site of the Project. (3) WES will inspect the Work of each subcontractor for defective work, manage resolution of the defective work, and notify applicable subcontractor(s) to correct such defective work in a manner approved by the design team and Owner. (4) WES shall record the progress of the Project and provide reports to the Owner. Such reports shall include, without limitation, information about variations between actual and budgeted or estimated costs and information on each subcontractor’s work, as well as completion status on the entire project, showing percentages of completion . (5) With the cooperation of the Subcontractors, WES will prepare and maintain the Construction Schedule. City of Dublin : Energy Savings Performance Contract | Page 15 (6) WES shall schedule and conduct in preconstruction, progress, quality control and special meetings with the Owner, designers, the subcontractors and any other parties involved in the project to discuss such matters as procedures, progress, problems and scheduling. (7) WES shall receive, review for completeness and responsiveness the subcontractors’ submittals such as shop drawings, product data and samples and delivering them to the designers and Owner for review and approval. (8) WES shall manage the punch list, coordinating final inspections, and preparing the certificate of contract completion. Upon contract completion, WES will receive, review for conformity with the requirements of the Contract Documents and transmit to the Owner any affidavits and turn over to the Owner any manuals and the originals of any guarantees, warranties, releases, bonds and waivers. c) Enhanced Commissioning (1) WES shall develop the commissioning plan, review construction documents, develop functional test procedures, coordinate commissioning activities, verify startup tests, and perform functional performance tests, and generate final commissioning report. d) Labor and Materials (1) Unless otherwise provided in the Performance Contract Documents, WES shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation, and other facilities and services, necessary for proper execution and completion of the Work, whether temporary or permanent, and whether or not incorporated or to be incorporated in the Work. (2) WES shall enforce strict discipline and good order among WES’s employees, Subcontractors, and other persons carrying out the Work. WES shall not permit employment of unfit persons or persons not properly skilled in tasks assigned to them. 5. GUARANTEE PHASE SERVICES: a) Facility Personnel Assistance: (1) WES’s Commissioning group will assist facility personnel in achieving the most efficient operation of Customer’s facility. The Commissioning group will remotely monitor the facility and will help identify potential problems with the HVAC as well as work with the facility staff to enhance and implement energy conservation programs. (2) Customer will be responsible for the maintenance of all energy systems, including lighting, mechanical, electrical, and building automation control systems per SCHEDULE G.5, provided as part the Performance Contract Amendment (EXHIBIT 1). b) Savings Tracking and Reporting: (1) WES will be responsible for the monthly tracking and monitoring of the project and will provide ongoing assistanc e to Customer’s staff. (2) WES will provide a quarterly savings report. This report will detail current monthly savings, year to date savings, and guaranteed savings. This report will also show the actual savings in units of energy. c) Utility Rate Negotiation: (1) If, during the term of this contract, deregulation of the electric and gas utilities should occur, WES shall have the right to negotiate on behalf of the Customer, in total or in portion, other utility services beyond the current providers of those services. WES will represent the customer as long as the services being negotiated are cost competitive for the Customer. WES will seek the most cost competitive providers of those services who can provide equal or better- quality service. In the event that the Customer is able to locate a more cost competitive provider, with equal quality, WES would be compelled to use that provider. The purpose of this paragraph is to minimize utility costs for the Customer. d) Cancellation: City of Dublin : Energy Savings Performance Contract | Page 16 (1) Customer may cancel the Guarantee-Phase Services on any anniversary date or at the end of Customer’s fiscal year. If Customer cancels these services, WES reserves the right to cancel the Energy Savings Guarantee as outlined in SCHEDULE D. ENERGY SAVINGS GUARANTEE. 6. PERFORMANCE CONTRACT PROGRAM REQUIREMENTS: a) Financial Criteria: (1) Customer desires to fund as much of the project scope as possibly through annual utility cost savings, meaning a Project that results in a close-to-neutral cash flow where the cumulative energy, maintenance, and capital cost avoidance over the life of the installed equipment exceeds the Project’s cumulative financing cost if it were financed. b) General Scope and Intent: (1) The Project will include energy efficiency measures, resiliency improvements and capital improvements. The projects may include, but no be limited to, the following: (a) Library :: Replace Aging Packaged VAV AHUs, Update BAS (b) Library :: Upgrade Remaining Fluorescent Lighting to LED, Daylighting Control in Lobby (c) Library :: Expand Existing Solar PV System w/ Carport in Sports Grounds Parking Lot (d) Library :: Install Battery Storage System for Resiliency (e) Corporation Yard :: Upgrade Shop Area Lighting to LED (f) Corporation Yard :: Install Roof Mounted & Covered Parking Solar PV Systems (g) Corporation Yard :: Install Battery Storage System for Resiliency (h) The Wave :: Optimize Facility Operation & HVAC Pool Turnover Rates & VAV Control, Reduce Exhaust Recirculation (i) The Wave :: Install Solar PV System w/ New Carport (j) The Wave :: Install Battery Storage System for Resiliency & Load Shedding (k) Senior Center :: Replace End-of-Life Packaged RTUs w/ High Efficiency Equivalent Units (l) Senior Center :: Upgrade Remaining Fluorescent Lighting to LED (m) Senior Center :: Install Solar PV System w/ New Carport (n) Senior Center :: Install Battery Storage System for Resiliency (o) Shannon Com. Center :: Upgrade Remaining Fluorescent Lighting to LED (p) Shannon Com. Center :: Replace End-of-Life Split Systems w/ High Efficiency Equivalent Units (q) Shannon Com. Center :: Install Generator to Improve Resiliency (r) Fire Station 16 :: Replace End-of-Life Packaged RTUs w/ High Efficiency Equivalent Units (s) Fire Station 16 :: Upgrade Remaining Fluorescent Lighting to LED (t) Fire Station 16 :: Install Battery Storage System for Resiliency (u) Fire Station 17 :: Replace End-of-Life Split Systems w/ High Efficiency Equivalent Units (v) Fire Station 17 :: Upgrade Remaining Fluorescent Lighting to LED (w) Fire Station 17 :: Install Solar PV System w/ New Carport (x) Fire Station 17 :: Install Battery Storage System for Resiliency (y) Fire Station 18 :: Replace End-of-Life Split Systems w/ High Efficiency Equivalent Units (z) Fire Station 18 :: Upgrade Remaining Fluorescent Lighting to LED City of Dublin : Energy Savings Performance Contract | Page 17 (aa) Fire Station 18 :: Install Solar PV System w/ New Carport (bb) Fire Station 18 :: Install Battery Storage System for Resiliency (cc) City Parks :: Convert All Park & Ball Field Lighting to LED (dd) Intersections :: Traffic Signal Conversion to Microgrid (ee) Heritage Park & Museum :: HVAC & Lighting PROJECT IMPLEMENTATION SCOPE OF WORK: c) Final, more detailed scope of work will be included in the Performance Contract Amendment (EXHIBIT 1). 7. TIME: a) WES and Customer will work together to develop construction schedules that minimize disruption to Customer operations while allowing for completion of Scope of Work in a timely fashion. All construction will be completed in accordance with SECTION 5 (COMMENCEMENT DATE AND TERMS). City of Dublin : Energy Savings Performance Contract | Page 19 SCHEDULE B. COMPENSATION TO WES The Customer shall compensate and make payments to WES for the Investment Grade Audit (“IGA”) Phase services, Construction Phase Services, and the Guarantee Phase Services as follows: 1. INVESTMENT GRADE AUDIT PHASE SERVICES. The Customer shall compensate and make payments to WES for the IGA Phase services as follows: a) If the Performance Contract Amendment (EXHIBIT 1) is executed within 60 days of its proposal, the fee for IGA services set forth in subdivision (b) of this section will be waived and will NOT be due to WES under this agreement, otherwise, b) Except as provided in subdivision (a) of this section, Customer shall pay WES the Stipulated Sum of $125,000. ($90,000 Base Scopes + $35,000 Solar & Battery Scopes) 2. CONSTRUCTION PHASE. For the WES’s performance of the Construction, the Customer shall pay WES a Stipulated Sum in current funds for WES’s performance of the Contract after the execution of the Performance Contract Amendment equal to Cost of the Work plus the Performance Contractor’s Fee at the time of the proposal of the Performance Contract Amendment. The Construction-Phase Contract Sum with itemization of the Cost of Work and Performance Contractor’s Fee shall be identified in the Performance Contract Amendment (EXHIBIT 1). The Performance Contractor’s Fee and the Cost of the Work plus will be determined as follows: a) Performance Contractor’s Fee: (1) Project Development Services (includes IGA Services): Time & Materials (see Hourly Rate Schedule) (2) Construction Management: Time & Materials (see Hourly Rate Schedule) (3) Enhanced Commissioning: Time & Materials (see Hourly Rate Schedule) (4) Performance Contractor’s Overhead and Profit: Not to exceed 18% of the Cost of the Work b) The Cost of the Work (COW) is as defined as: (1) Subcontract Costs. Payments made by WES to its Subcontractor to carry out the work. (2) Construction Contingency available to WES exclusive use to cover costs for unanticipated items of the Work. (3) Allowance held by the Customer for additional Work to be incorporated in the project. (4) Costs, including transportation, of materials and equipment incorporated in the completed construction. (5) Costs of other materials and equipment, temporary facilities and related items. (6) That portion directly attributable to this Contract of premiums for insurance and bonds. (7) Fees of testing laboratories for tests required by the Contract Documents, except those related to nonconforming Work. (8) Data processing costs related to the Work. (9) Legal costs, other than those arising from disputes between the Customer and WES, reasonably incurred by WES in the performance of the Work and with the Customer’s written permission, which permission shall not be unreasonably withheld. (10) Other costs incurred in the performance of the Work if and to the extent approved in advance in writing by the Customer. (11) Emergencies and Repairs to Damaged or Nonconforming Work (12) The Cost of Work shall also include costs which are incurred WES in taking action to prevent threatened damage, injury or loss in case of emergency affecting the safety of persons and property. (13) The Cost of Work shall also include costs which are incurred WES in repairing or correcting damaged or nonconforming Work executed by WES or WES’s Subcontractors or suppliers, provided that such damaged or nonconforming Work was not caused by the negligence or failure to fulfill a specific responsibility to the Customer City of Dublin : Energy Savings Performance Contract | Page 20 set forth in this Contract of WES or WES’s personnel to supervise adequately the Work of the Subcontracto r or suppliers, and only to the extent that the cost of the repair or correction is not recoverable by WES fr om insurance, Subcontractors or suppliers. c) Hourly Rate Schedule used in determining professional services costs: Rate Category Rate ($/hr) Project Development and Engineering Services 1 Technical Drafter $90.00 2 Designer $90.00 3 Senior Designer $115.00 9 Engineer I $115.00 10 Engineer II $155.00 11 Senior Engineer $180.00 12 Principal Engineer $285.00 Energy Modeling 13 Energy Engineer $115.00 14 Senior Energy Engineer $155.00 Commissioning 15 Commissioning Engineer $115.00 16 Senior Commissioning Engineer $155.00 Project and Construction Management 17 Account Executive $160.00 18 Project Manager $180.00 19 Construction Manager $180.00 20 Site Superintendent $180.00 21 Field Engineer $115.00 22 Cost Estimator $145.00 3. GUARANTEE PHASE. For WES’s performance of the Guarantee, the Customer shall pay WES in current funds for WES’s performance of the Guarantee Phase services following Substantial Completion of the entire project, which is determined by the delivery of “Notice of Substantial Completion” as defined in SCHEDULE B.5, the Savings Guarantee Commencement Date. The Guarantee-Phase Contract Sum shall be identified in the Performance Contract Amendment (EXHIBIT 1). 4. PAYMENT PROCEDURES a) Investment Grade Audit Phase Payments: (1) WES shall provide an Application for Payment to Customer for IGA Phase services completed in accordance with SCHEDULE B.1 Investment Grade Audit Phase Services above. The Customer shall make payment in the manner and within the time provided in Section 7.3. b) Construction Phase Payments: (1) Project Mobilization: The initial Application for Payment shall include all remaining pre-construction-phase services amounts as well as 10 percent of the remaining total compensation to allow for mobilization of WES and subcontractors. (2) Progress Payments: WES shall provide a monthly Application for Payment to Customer for work completed during the previous month. The Customer shall make payment in the manner and within the time provided in Section 6.3. Until the Project is complete, as identified as a line item in the Schedule of Values, Customer will pay one hundred percent (100%) of the amount due to WES on account of progress payments. WES shall provide a Retainage Bond that represents 10% of the total contract value. City of Dublin : Energy Savings Performance Contract | Page 21 (3) Progress Payments: WES shall provide a monthly Application for Payment to Customer for work completed during the previous month. The Customer shall make payment in the manner and within the time provided in Section 6.3. Until the Project is complete, as identified as a line item in the Schedule of Values, Customer will pay ninety-five percent (95%) of the amount due to WES on account of progress payments for each line item. This 5% retention shall be reduced, if appropriate, in conjunction with Substantial Completion to reflect incomplete work for each line item. Complete payment of retention shall be in conjunction with Acceptance of Project Completion for each Project identified in the Schedule of Values, which shall not be unduly withheld. (4) Schedule of Values: WES will prepare and submit a complete schedule of values along with initial Application for Payment. Projects listed as line items in the Schedule of Values will be treated as individual projects for the purposes of Progress Payments, Substantial Completion, Final Completion, and withholding of retention amounts. (5) Substantial Completion: Substantial Completion is the stage in the progress of the Project when the Project or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Customer can utilize the Work for its beneficial use. When WES considers that an individual Project is substantially complete, WES shall prepare and submit to the Customer a comprehensive list of items to be completed or corrected prior to final paymen t. Upon receipt of WES's list, the Customer shall, within seven days, inspect the Work to formulate the Customer’s Punch List and to determine whether the Work or designated portion thereof is substantially complete. If the Customer’s inspection discloses any item, whether or not included on WES's list, which is not sufficiently complete in accordance with the Performance Contract Documents so that the Customer can utilize the Project or designated portion thereof for its intended use, WES shall, before issuance of the Certificate of Substantial Completion, complete or correct such item upon notification by the Customer. In such case, WES shall then submit a request for another inspection by the Customer to determine Substantial Completion. When the Work or designated portion thereof is substantially complete, WES will prepare a Certificate of Substantial Completion which shall establish the date of Substantial Completion, shall establish responsibilities of the Customer and WES for security, maintenance, heat, utilities, damage to the Project and insurance, and shall fix the time within which WES shall finish all items on the list accompanying the Certificate. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Project or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. The Certificate of Substantial Completion shall be submitted to the Customer for their written acceptance of responsibilities assigned to t hem in such Certificate. (6) Substantial Completion Payment: Upon Substantial Completion acceptance, the Customer shall make payment of retainage applying to such Work or designated portion thereof within the time provided in Section 7.3. Such payment shall be reasonably adjusted to reflect the dollar value of Work that is incomplete or not in accordance with the requirements of the ESPC Documents. (7) Project Completion and Payment: After WES’s completion of all punch list items, project closeout requirements, and upon receipt of written notice that the Project is ready for final inspection and acceptance and upon receipt of a Final Application for Payment, the Customer will make such inspection within seven days and, when the Cu stomer finds the Project acceptable under the Contract Documents and the Contract fully performed, the Customer will execute and issue the Certificate of Acceptance within two days from the final inspection and pay the entire balance found to be due to WES as stated in the Final Application for Payment within the time provided in Section 7.3. c) Guarantee Phase Payments: (1) WES shall provide annual Applications for Payment to Customer for guarantee-phase services to be completed in the subsequent year. The Customer shall make payment in the manner and within the time provided in Section 7.3. d) Failure of Payment: If the Customer does not pay WES within seven days after the date established in Section 7.3, then WES may, upon written notice to the Customer, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately, and the Contract Sum shall be increased by the amount of the WES's reasonable costs of shut-down, delay and start-up, plus interest. City of Dublin : Energy Savings Performance Contract | Page 23 SCHEDULE C. INSURANCE REQUIREMENTS Before fully executing this Agreement, WES, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the WES and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, WES shall provide proof satisfactory to Customer of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work. WES shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the WES's bid or proposal. WES shall not allow any sub contractor to commence work on any subcontract until WES has obtained all insurance required herein for the subcontractor(s) and provided evidence to Customer that such insurance is in effect. VERIFICATION OF THE REQUIRED INSURANCE SHALL BE SUBMITTED AND MADE PART OF THIS AGREEMENT PRIOR TO EXECUTION. WES shall maintain all required insurance listed herein for the duration of this Agreement. 5. Workers’ Compensation. a) General Requirements. WES shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by WES. The Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than $1,000 ,000 per accident. In the alternative, WES may rely on a self-insurance program to meet these requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self - insurance program meets the standards of the California Labor Code shall be so lely in the discretion of the Contract Administrator. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the WES, its employees, agents, and subcontractors. b) Submittal Requirements. To comply with Section 1, WES shall submit the following: (1) Certificate of Liability Insurance in the amounts specified in the section; and (2) Waiver of Subrogation Endorsement as required by the section. 6. Commercial General and Automobile Liability Insurance. a) General Requirements. WES, at its own cost and expense, shall maintain commercial general liability insurance for the term of this Agreement in an amount not less than $1,000,000 and automobile liability insurance for the term of this Agreement in an amount not less than $1,000,000 per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the r equired occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles. b) Minimum Scope of Coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an “occurrence” basis. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001, Code 1 (any auto). No endorsement shall be attached limiting the coverage. c) Additional Requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: (1) The Insurance shall cover on an occurrence or an accident basis, and not on a claims -made basis. (2) Customer, its officers, officials, employees, and volunteers are to be covered as additional insureds as respects: liability arising out of work or operations performed by or on behalf of the WES; or automobiles owned, leased, hired, or borrowed by the WES. City of Dublin : Energy Savings Performance Contract | Page 24 (3) WES hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss. WES agrees to obtain any endorsements that may be necessary to effect this waiver of subrogation. (4) For any claims related to this Agreement or the work hereunder, the WES’s insurance coverage shall be primary insurance as respects the Customer, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Customer, its officers, officials, employees, or volunteers shall be excess of the WES’s insurance and shall not contribute with it. d) Submittal Requirements. To comply with Section 2, WES shall submit the following: (1) Certificate of Liability Insurance in the amounts specified in the section; (2) Additional Insured Endorsement as required by the section; (3) Waiver of Subrogation Endorsement as required by the section; and (4) Primary Insurance Endorsement as required by the section. 7. Professional Liability Insurance. a) General Requirements. WES, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than $2,000,000 covering the licensed professionals’ errors and omissions. Any deductible or self-insured retention shall not exceed $150,000 per claim. (1) Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form: (a) The retroactive date of the policy must be shown and must be before the date of the Agreement. (b) Insurance must be maintained and evidence of insurance must be provided for at least 5 years after completion of the Agreement or the work, so long as commercially available at reasonable rates. (c) If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, WES shall purchase an extended period coverage for a minimum of 5 years after completion of work under this Agreement. (d) A copy of the claim reporting requirements must be submitted to the Customer for review prior to the commencement of any work under this Agreement. (2) Additional Requirements. A certified endorsement to include contractual liability shall be included in the policy. (3) Submittal Requirements. To comply with Section 3, WES shall submit the Certificate of Liability Insurance in the amounts specified in the section. 8. All Policies Requirements. a) Acceptability of Insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. b) Verification of Coverage. Prior to beginning any work under this Agreement, WES shall furnish Customer with complete copies of all Certificates of Liability Insurance delivered to WES by the insurer, including complete copies of all endorsements attached to the policies. All copies of Certificates of Liability Insurance and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. If the Customer does not receive the required insurance documents prior to the WES beginning work, it shall not waive the WES’s obligation to provide them. The Customer reserves the right to require complete copies of all required insurance policies at any time. c) Deductibles and Self-Insured Retentions. WES shall disclose to and obtain the written approval of Customer for the self- insured retentions and deductibles before beginning any of the services or work call ed for by any term of this Agreement. At the option of the Customer, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Customer, its officers, employees, and volunteers; or the WES shall provide a financial guarantee satisfactory to the Customer guaranteeing payment of losses and related investigations, claim administration and defense expenses. City of Dublin : Energy Savings Performance Contract | Page 25 d) Wasting Policies. No policy required by this Section 4 shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense). e) Endorsement Requirements. Each insurance policy required by Section 4 shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days’ prior written notice has been provided to t he Customer. f) Subcontractors. WES shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 9. Remedies. In addition to any other remedies Customer may have if WES fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, Customer may, at its sole option exe rcise any of the following remedies, which are alternatives to other remedies Customer may have and are not the exclusive remedy for WES’s breach: a) Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due u nder the Agreement; b) Order WES to stop work under this Agreement or withhold any payment that becomes due to WES hereunder, or both stop work and withhold any payment, until WES demonstrates compliance with the requirements hereof; and/o c) Terminate this Agreement. City of Dublin : Energy Savings Performance Contract | Page 27 EXHIBIT 1. PERFORMANCE CONTRACT AMENDMENT (DRAFT – completed at conclusion of IGA Phase) This Amendment is incorporated into the accompanying Energy Savings Performance Contract dated the [XX] day of [XX] in the [2021] year (the “Agreement”) for the following PROJECT: To be Determined in the IGA Phase THE CUSTOMER: City of Dublin THE PERFORMANCE CONTRACTOR: Willdan Energy Solutions, Inc. The Customer and Performance Contractor hereby amend the Agreement as follows. TABLE OF ARTICLES 1. CONTRACT SUM 2. CONTRACT TIME 3. CONSTRUCTION SCHEDULE 4. INFORMATION UPON WHICH AMENDMENT IS BASED 5. PERFORMANCE CONTRACTOR’S PERSONNEL, CONTRACTORS AND SUPPLIERS 6. COST OF THE WORK TABLE OF SCHEDULES (the following Schedules are added by this amendment) SCHEDULE E. ENERGY SAVINGS GUARANTEE (Completed with EXHIBIT 1.) SCHEDULE F. BASELINE ENERGY CONSUMPTION (Completed with EXHIBIT 1.) SCHEDULE G. SAVINGS MEASUREMENT & CALCULATION FORMULAE; METHODOLOGY TO ADJUST BASELINE (Completed with EXHIBIT 1.) 1. CONSTRUCTION-PHASE CONTRACT SUM a) Stipulated Sum based on predetermined, not-to-exceed fees: (1) The Stipulated Sum shall be ($_), subject to authorized adjustments as provided in the Design -Build Documents. (2) The Stipulated Sum is based on the Cost of Work and Performance Contractor’s Fees as detailed in ARTICLE 5 (SCHEDULE OF VALUES) below. 2. CHANGES IN THE CONSTRUCTION-PHASE CONTRACT SUM: a) Any overage in the cost of the Scope of Work in SCHEDULE A (SCOPE OF WORK) shall be the responsibility of WES. b) Changes to the contract sum are warranted for, but are not limited to: Hazardous materials, additions or modifications to the Scope of Work, and Differing Site Conditions as defined in EXHIBIT 8 - Differing Site Conditions. All additional costs associated with these items shall be the responsibility of Customer. 3. GUARANTEE-PHASE CONTRACT SUM a) Customer shall pay WES annual payments for Guarantee-Phase Services the amounts listed below, subject to the Services Agreement set forth in SCHEDULE B and any other applicable terms of this agreement: (1) Year One: $0.00 (included in Construction-Phase Contract Sum) (2) Year Two: $TBD City of Dublin : Energy Savings Performance Contract | Page 28 (3) Year Three: Year two price modified by the change, up or down, in CPI since the beginning of the year two agreement. (4) Year Four and Beyond: Prior year modified by the last 12 months change, up or down, in CPI. b) Customer may cancel the Guarantee-Phase Services on any anniversary date or at the end of Customer’s fiscal year. If Customer cancels these services, WES reserves the right to cancel the Energy Savings Guarantee as outlined in SCHEDULE E. ENERGY SAVINGS GUARANTEE. 4. CONTRACT TIME a) The date of Substantial Completion upon which this proposal is based is [DATE]. b) The date of Final Completion is [DATE]. c) Weather disruptions, availability of necessary equipment, remediation of hazardous materials, and other delays beyond the control of WES shall not count toward the construction timeframe in SECTION 5 (COMMENCEMENT DATE AND TERMS). d) Guarantee Commencement Date is [DATE]. 5. SCHEDULE OF VALUES a) WES will prepare and submit a complete schedule of values along with initial Application for Payment. Projects listed as line items in the Schedule of Values will be treated as individual projects for the purposes of Progress Payments, Substantial Completion, Project Completion, and withholding of retention amounts. 6. CONSTRUCTION SCHEDULE {Insert Construction Schedule} 7. INFORMATION UPON WHICH AMENDMENT IS BASED The Contract Sum and Contract Time set forth in the Amendment are based on the following: a) Scope of Work: The finalized scope of work to be performed under the original Agreement is revised and clarified as set forth in this Amendment as follows: (1) INSERT DETAILED CONSTRUCTION SCOPE HERE b) Drawings (1) Scope of Work defined in 7.b supersedes any scope defined in the Drawings and Specifications. The Drawings and Specifications are provided to provide layout, quantities and general quality of equipment and materials to be incorporated in the project. Number Title Date 01 c) Specifications (1) Scope of Work defined in 7.b supersedes any scope defined in the Drawings and Specifications. The Drawings and Specifications are provided to provide layout, quantities and general quality of equipment and materials to be incorporated in the project. Number Title Date 01 City of Dublin : Energy Savings Performance Contract | Page 29 d) Supplementary and other Conditions of the Contract (1) {list, if applicable} e) Deviations from the Performance Contract Program Requirements as identified in SCHEDULE A.6: (1) {insert scope of work deviations from program requirements} 8. PERFORMANCE CONTRACTOR’S PERSONNEL, CONTRACTORS AND SUPPLIERS a) The Performance Contractor’s key personnel are identified below: (1) {insert list of project team, personnel, contractors and suppliers} This Amendment to the Agreement entered into as of the day and the year first written above. WES CUSTOMER Signed Signed Name Name Date Date City of Dublin : Energy Savings Performance Contract | Page 30 EXHIBIT 2. CERTIFICATE OF SUBSTATIAL COMPLETION Project Project Number: From: WES To (Customer): [CUSTOMER NAME] [WES Address] [Customer Address] [WES Address] [Customer Address] PROJECT OR PORTION OF THE PROJECT DESIGNATED FOR PARTIAL OCCUPANCY FOR USE SHALL INCLUDE: Scope of Work A {Identify the Work, or portion thereof per the schedule of values, that is substantially complete} The Work performed under this Performance Contract has been reviewed and found, to the best of the Customer’s knowledge, information, and belief, to be substantially complete. Substantial Completion is the stage in the progress of the Work when the Work or designated portion is sufficiently complete in accordance with the Performance Contract Documents s o that the Customer can occupy or utilize the work for its intended use. The date of Substantial Completion of the Project or portion designated above is the date of issuance established by this Certificate, which is also the date of commencement of applicable warranties required by the ESPC Documents, except as stated below: {Identify warranties that do not commence on the date of Substantial Completion, if any, and indicate their date of commencement} Warranty Date of Commencement Equipment A, OWNER’S REPRESENTATIVE BY (Signature) DATE OF ISSUANCE A list of items to be completed or corrected is attached hereto. The failure to include any items on such a list does not alter the responsibility of WES to complete all Work in accordance with the Performance Contract Documents. Unless otherwise agreed to in writing, the date of commencement of warranties for items on the attached list will be the date of issuance of the final Certificate of Payment or the date of final payment. The estimated cost of work that is incomplete or defective: $ 0.00 WES will complete or correct the Work on the list of items attached hereto within [___] days from the above date of Substantial Completion: PERFORMANCE CONTRACTOR BY (Signature) DATE The Customer accepts the Work or designated portion as substantially complete and will assume full possession thereof on the above date of Substantial Completion: CUSTOMER BY (Signature) DATE The responsibilities of the Customer and WES for security, maintenance, heat, utilities, damage to the Work and insurance shall be as follows (e.g., Security, Maintenance, Heat, Utilities, Damage to the Work, Insurance): City of Dublin : Energy Savings Performance Contract | Page 31 EXHIBIT 3. CERTIFICATE OF ACCEPTANCE – PROJECT FINAL COMPLETION This is to certify that a final inspection of the Project has been conducted jointly by WES and City of Dublin, and that the parties have determined that the Project has been fully completed in accordance with the Contract Documents. All guarantees and warranties that have not commenced previously shall commence as of the date of completion below. Customer accepts the Project as being fully completed and assumes responsibility for maintenance, custodial care, and utiliti es for the premises. WES remains responsible for correcting errors and omissions discovered subsequent to the execution of this document and to respond to claims made under applicable warranties. WES CUSTOMER Signed Signed Name Name Date Date 3615541.1