Loading...
HomeMy WebLinkAbout2017-09-26; City Council; ; Adoption of a resolution approving a professional services agreement with Center for Sustainable Energy to prepare energy conservation ordinances in compliance with the Carlsbad Climate Action PlanCA Review (t.!J @ CITY COUNCIL Staff Report Meeting Date: To: From: Staff Contact: Subject: Project Name: Project No.: September 26, 2017 Mayor and City Council Kevin Crawford, City Manager David de Cordova, Principal Planner david .decordova@carlsbadca.gov or 760-602-4604 Adoption of a resolution approving a professional services agreement with Center for Sustainable Energy for an amount not to exceed $120,000 to prepare energy conservation ordinances in compliance with the Carlsbad Climate Action Plan. ENERGY CONSERVATION ORDINANCE MCA 17-0002 (PUB17Y-0013) Recommended Action Adopt a resolution approving a professional services agreement with Center for Sustainable Energy (CSE) for an amount not to exceed $120,000 to prepare energy conservation ordinances in compliance with the Carlsbad Climate Action Plan. Executive Summary The City Council approved the Carlsbad Climate Action Plan (CAP) in September 2015. The CAP is the city's long range strategy to help meet state greenhouse gas (GHG) reduction goals while supporting a community goal of promoting a sustainable environment. The CAP lays out an array of short, medium and long-term actions intended to achieve GHG reductions in the areas of building energy efficiency, renewable energy, transportation, and water system efficiency and conservation. A number of these actions would be implemented through local ordinances. This effort will address ordinance requirements for CAP measures and actions related to residential and non-residential photovoltaic systems, solar thermal water heating, high- efficiency lighting, natural lighting and ventilation, and zero-emission vehicle parking and charging. Discussion Preparation of ordinances required by the CAP requires specialized knowledge and expertise in the areas of building and energy codes, renewable energy, electric vehicle charging systems, and preparing cost~effectiveness studies. Accordingly, staff issued a Request for Proposals (RFP) in March 2017 to seek proposals from qualified firms to provide that expertise. The city received two proposals in response. A selection committee comprised of city staff (from Planning, Building, Economic Development, and Environmental Management) evaluated the proposals and concluded that neither proposal was satisfactory to meet the city's needs. Subsequently, staff solicited a proposal from CSE, to which the firm responded in May. The same selection committee reviewed the proposal and determined that, based on the quality of the proposal, project approach, experience and qualifications of their personnel and sub- September 26, 2017 Item #4 Page 1 of 20 consultant (TRC Solutions, Inc.), schedule and cost, CSE is well qualified to perform the needed services. Climate Action Plan Consistency This project is directly related to implementing the following CAP measures and actions: Action A-3: Adopt an ordinance, similar to those passed by Lancaster and Sebastopol, which requires new homes to install PV panels to offset a portion of their energy use. Action 8-1: Adopt a commercial energy conservation ordinance requiring all new .. nonresidential developments with more than 50 cars surface parked or on roofs of parking structures to use PV panels over at least half of the surface/roof-parked cars, or provide equivalent energy conservation/generation by other means (over and above other requirements). Action 8-2: Adopt an ordinance requiring existing nonresidential developments to install PV panels to offset a portion of their energy use. Measure I: Promote replacement of incandescent and halogen bulbs with LED or other energy efficient lamps. Action /-3 : Evaluate the feasibility of adopting a minimum natural lighting and ventilation standard, based on local conditions. Action J-2: Adopt residential and commercial energy conservation ordinances requiring new residential and commercial buildings to install solar water heaters or heat pumps, or use alternative energy (such as PV-generated electricity) for water heating needs. Action L-5: Adopt requirements for ZEV parking for new developments. Action L-6: Adopt a residential energy conservation ordinance, similar to Palo Alto, requiring the installation of EV chargers or pre-wiring in new residential construction and major renovations. Fiscal Analysis Funding for this ordinance development work was previously appropriated to the Community and Economic Development Department operating budget, and is sufficient for this agreement in the amount not to exceed $120,000. No additional appropriation is required. Next Steps Following execution of this contract, ~he consultant will begin performing the specific tasks to support staff in preparing the necessary ordinances. These tasks include: 1) researching best practices and ordinances from other cities; 2) developing parameters for draft ordinances and preparing cost-effectiveness studies as needed; 3) conducting stakeholder outreach; 4) preparing draft and final ordinances for Council consideration; 5) and preparing application for approval by California Energy Commission. Initial stakeholder outreach activities are anticipated to begin by the end of 2017 to early 2018. Draft ordinances would be prepared in September 26, 2017 Item #4 Page 2 of 20 Spring 2018, with final ordinances ready for consideration, adoption and final CEC approval by Fall 2018. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, the action to authorize execution of a professional services agreement does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing at least 72 hours prior to the meeting date. Exhibits 1. City Council Resolution September 26, 2017 Item #4 Page 3 of 20 RESOLUTION NO. 2017-191 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH CENTER FOR SUSTAINABLE ENERGY FOR AN AMOUNT NOT TO EXCEED $120,000 TO PREPARE ENERGY CONSERVATION ORDINANCES IN COMPLIANCE WITH THE CARLSBAD CLIMATE ACTION PLAN. CASE NAME: CASE NUMBER: ENERGY CONSERVATION ORDINANCE MCA 17-0002 {PUB17Y-0013) WHEREAS, the City Council approved the Carlsbad Climate Action Plan in September 2015; and WHEREAS, the Carlsbad Climate Action Plan is the city's long range strategy to help meet state greenhouse gas (GHG) reduction goals while supporting a community goal of promoting a sustainable environment; and WHEREAS, the Carlsbad Climate Action Plan identifies a number of actions the city will need to take in order to achieve GHG reduction goals, including implementing ordinances related to residential and non-residential photovoltaic systems, solar thermal water heating, high-efficiency lighting, natural lighting and ventilation, and zero-emission vehicle parking and charging; and WHEREAS, the city requires the specialized knowledge and expertise of a qualified consulting firm to assist in preparing such ordinances; and WHEREAS, to assist in this effort, staff released a request for proposals (RFP) in March 2017; and WHEREAS, the city received proposals from two firms, which were evaluated by a staff selection committee; and WHEREAS, after careful consideration, the selection committee determined that the proposals did not adequately meet the city's needs, and that staff should continue to seek proposals from qualified firms; and WHEREAS, staff solicited a proposal from Center for Sustainable Energy (CSE), to which the firm responded in May 2017; and WHEREAS, the selection committee reviewed the proposal and determined that, based on the quality of the proposal, project approach, experience and qualifications, schedule and cost, CSE is well qualified to perform the needed services; and September 26, 2017 Item #4 Page 4 of 20 WHEREAS, staff recommends approving the proposed professional services agreement with Center for Sustainable Energy, including the scope of work, fee, and schedule, as provided in Attachment A; and WHEREAS, the Community and Economic Development Department's current operating budget contains sufficient funds to carry out this agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the professional services agreement with Center for Sustainable Energy is hereby approved. 3. That the Mayor is hereby authorized and directed to execute the professional services agreement with Center for Sustainable Energy, which is attached hereto as Attachment A. 4. That the City Manager is authorized to extend the agreement for a period of up to one year beyond its initial term. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of September, 2017, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. {SEAL) September 26, 2017 Item #4 Page 5 of 20 AGREEMENT FOR CONSUL TING SERVICES CENTER FOR SUSTAINABLE ENERGY PROJECT NO. PUB17Y-0013 THIS AGREEMENT is made and entered into as of the 2]-tVl day of S~BeV::: , 2017, by and between the CITY OF CARLSBAD, a municipal corporation, ("City"), and CENTER FOR SUSTAINABLE ENERGY, a California not-for-profit corporation, ("Contractor"). RECITALS A. City requires the professional services of an energy efficiency expert that is experienced in designing policies, programs, and ordinances related to building energy conservation, renewable energy, and zero-emission vehicle infrastructure. B. Contractor has the necessary experience in providing professional services and advice related to developing energy conservation ordinances consistent with Carlsbad Climate Action Plan requirements. C. Contractor has submitted a proposal to City and has affirmed its willingness and ability to perform such work. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. SCOPE OF WORK City retains Contractor to perform, and Contractor agrees to render, those services (the "Services") that are defined in attached Exhibit "A", which is incorporated by this reference in accordance with this Agreement's terms and conditions. 2. STANDARD OF PERFORMANCE While performing the Services, Contractor will exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor's profession practicing in the Metropolitan Southern California Area, and will use reasonable diligence and best judgment while exercising its professional skill and expertise. 3. TERM The term of this Agreement will be effective for a period of eighteen (18) months from the date first above written. The City Manager may amend the Agreement to extend it for one ( 1) additional year period or parts thereof. Extensions will be based upon a satisfactory review of Contractor's performance, City needs, and appropriation of funds by the City Council. The parties will prepare a written amendment indicating the effective date and length of the extended Agreement. 4. TIME IS OF THE ESSENCE Time is of the essence for each and every provision of this Agreement. 5. COMPENSATION The total fee payable for the Services to be performed during the initial Agreement term will be one hundred twenty thousand dollars ($120,000). No other compensation for the Services will be allowed except for items covered by subsequent amendments to this Agreement. The City reserves the right to withhold a ten percent (10%) retention until City has accepted the work and/or Services specified in Exhibit "A". REV. 09/06/2017 September 26, 2017 Item #4 Page 6 of 20 Incremental payments, if applicable, should be made as outlined in attached Exhibit "A". 6. STATUS OF CONTRACTOR Contractor will perform the Services in Contractor's own way as an independent contractor and in pursuit of Contractor's independent calling, and not as an employee of City. Contractor will be under control of City only as to the result to be accomplished, but will consult with City as necessary. The persons used by Contractor to provide services under this Agreement will not be considered employees of City for any purposes. The payment made to Contractor pursuant to the Agreement will be the full and complete compensation to which Contractor is entitled. City will not make any federal or state tax withholdings on behalf of Contractor or its agents, employees or subcontractors. City will not be required to pay any workers' compensation insurance or unemployment contributions on behalf of Contractor or its employees or subcontractors. Contractor agrees to indemnify City within thirty (30) days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers' compensation payment which City may be required to make on behalf of Contractor or any agent, employee, or subcontractor of Contractor for work done under this Agreement. At the City's election, City may deduct the indemnification amount from any balance owing to Contractor. 7. SUBCONTRACTING Contractor will not subcontract any portion of the Services without prior written approval of City. If Contractor subcontracts any of the Services, Contractor will be fully responsible to City for the acts and omissions of Contractor's subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this Agreement will create any contractual relationship between any subcontractor of Contractor and City. Contractor will be responsible for payment of subcontractors. Contractor will bind every subcontractor and every subcontractor of a subcontractor by the terms of this Agreement applicable to Contractor's work unless specifically noted to the contrary in the subcontract and approved in writing by City. 8. OTHER CONTRACTORS The City reserves the right to employ other Contractors in connection with the Services. 9. INDEMNIFICATION Contractor agrees to indemnify and hold harmless the City and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. The parties expressly agree that any payment, attorney's fee, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 10. INSURANCE Contractor will obtain and maintain for the duration of the Agreement and any and all amendments, insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the services by Contractor or Contractor's agents, representatives, employees or subcontractors. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance City Attorney Approved Version 4/1/15 2 September 26, 2017 Item #4 Page 7 of 20 carrier is required to have a current Best's Key Rating of not less than "A-:VII"; OR with a surplus line insurer on the State of California's List of Approved Surplus Line Insurers {LASLI) with a rating in the latest Best's Key Rating Guide of at least "A:X"; OR an alien non-admitted insurer listed by the National Association of Insurance Commissioners (NAIC) latest quarterly listings report. 10.1 Coverage and Limits. Contractor will maintain the types of coverage and minimum limits indicated below, unless the Risk Manager or City Manager approves a lower amount. These minimum amounts of coverage will not constitute any limitations or cap on Contractor's indemnification obligations under this Agreement. City, its officers, agents and employees make no representation that the limits of the insurance specified to be carried by Contractor pursuant to this Agreement are adequate to protect Contractor. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage, as Contractor deems adequate, at Contractor's sole expense. The full limits available to the named insured shall also be available and applicable to the City as an additional insured. 10.1.1 Commercial General Liability Insurance. $2,000,000 combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits will apply separately to the work under this Agreement or the general aggregate will be twice the required per occurrence limit. 10.1.2 Automobile Liability. (if the use of an automobile is involved for Contractor's work for City). $1,000,000 combined single-limit per accident for bodily injury and property damage. 10.1.3 Workers' Compensation and Employer's Liability. Workers' Compensation limits as required by the California Labor Code. Workers' Compensation will not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this. 10.2 Additional Provisions. Contractor will ensure that the policies of insurance required under this Agreement contain, or are endorsed to contain, the following provisions: 10.2.1 The City will be named as an additional insured on Commercial General Liability. which shall provide primary coverage to the City. 10.2.2 Contractor will obtain occurrence coverage, excluding Professional Liability, which will be written as claims-made coverage. 10.2.3 This insurance will be in force during the life of the Agreement and any extensions of it and will not be canceled without thirty (30) days prior written notice to City sent by certified mail pursuant to the Notice provisions of this Agreement. 10.3 Providing Certificates of Insurance and Endorsements. Prior to City's execution of this Agreement, Contractor will furnish certificates of insurance and endorsements to City. 10.4 Failure to Maintain Coverage. If Contractor fails to maintain any of these insurance coverages, then City will have the option to declare Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order to maintain the required coverages. Contractor is responsible for any payments made by City to obtain or maintain insurance and City may collect these payments from Contractor or deduct the amount paid from any sums due Contractor under this Agreement. City Attorney Approved Version 4/1/15 3 September 26, 2017 Item #4 Page 8 of 20 10.5 Submission of Insurance Policies. City reserves the right to require, at any time, complete and certified copies of any or all required insurance policies and endorsements. 11. BUSINESS LICENSE Contractor will obtain and maintain a City of Carlsbad Business License for the term of the Agreement, as may be amended from time-to-time. 12. ACCOUNTING RECORDS Contractor will maintain complete and accurate records with respect to costs incurred under this Agreement. All records will be clearly identifiable. Contractor will allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records and any other documents created pursuant to this Agreement. Contractor will allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 13. OWNERSHIP OF DOCUMENTS All work product produced by Contractor or its agents, employees, and subcontractors pursuant to this Agreement is the property of City. In the event this Agreement is terminated, all work product produced by Contractor or its agents, employees and subcontractors pursuant to this Agreement will be delivered at once to City. Contractor will have the right to make one (1) copy of the work product for Contractor's records. 14. COPYRIGHTS Contractor agrees that all copyrights that arise from the services will be vested in City and Contractor relinquishes all claims to the copyrights in favor of City. 15. NOTICES The name of the persons who are authorized to give written notice or to receive written notice on behalf of City and on behalf of Contractor under this Agreement. For City Name David de Cordova Title Principal Planner Community & Economic Department Development City of Carlsbad Address 1635 Faraday Avenue Carlsbad, CA 92008 Phone No. (760) 602-4604 For Contractor Name Lindsey Hawes Title Assistant Director, Advisory Services Address 9325 Sky Park Ct. Suite 100 San Diego, CA 92123 Phone No. (858) 633-1390 Email lindsey.hawes@energycenter.org Each party will notify the other immediately of any changes of address that would require any notice or delivery to be directed to another address. 16. CONFLICT OF INTEREST Contractor shall file a Conflict of Interest Statement with the City Clerk in accordance with the requirements of the City of Carlsbad Conflict of Interest Code. The Contractor shall report investments or interests in all four categories. City Attorney Approved Version 4/1/15 4 September 26, 2017 Item #4 Page 9 of 20 17. GENERAL COMPLIANCE WITH LAWS Contractor will keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the performance of the Services by Contractor. Contractor will at all times observe and comply with these laws, ordinances, and regulations and will be responsible for the compliance of Contractor's services with all applicable laws, ordinances and regulations. · Contractor will be aware of the requirements of the Immigration Reform and Control Act of 1986 and will comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and consultants whose services are required by this Agreement. 18. DISCRIMINATION AND HARASSMENT PROHIBITED Contractor will comply with all applicable local, state and federal laws and regulations prohibiting discrimination and harassment. 19. DISPUTE RESOLUTION If a dispute should arise regarding the performance of the Services the following procedure will be used to resolve any questions of fact or interpretation not otherwise settled by agreement between the parties. Representatives of Contractor or City will reduce such questions, and their respective views, to writing. A copy of such documented dispute will be forwarded to both parties involved along with recommended methods of resolution, which would be of benefit to both parties. The representative receiving the letter will reply to the letter along with a recommended method of resolution within ten (10) business days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining the disputes will be forwarded to the City Manager. The City Manager will consider the facts and solutions recommended by each party and may then opt to direct a solution to the problem. In such cases, the action of the City Manager will be binding upon the parties involved, although nothing in this procedure will prohibit the parties from seeking remedies available to them at law. 20. TERMINATION In the event of the Contractor's failure to prosecute, deliver, or perform the Services, City may terminate this Agreement for nonperformance by notifying Contractor by certified mail of the termination. If City decides to abandon or indefinitely postpone the work or services contemplated by this Agreement, City may terminate this Agreement upon written notice to Contractor. Upon notification of termination, Contractor has five (5) business days to deliver any documents owned by City and all work in progress to City address contained in this Agreement. City will make a determination of fact based upon the work product delivered to City and of the percentage of work that Contractor has performed which is usable and of worth to City in having the Agreement completed. Based upon that finding City will determine the final payment of the Agreement. Either party upon tendering thirty (30) days written notice to the other party may terminate this Agreement. In this event and upon request of City, Contractor will assemble the work product and put it in order for proper filing and closing and deliver it to City. Contractor will be paid for work performed to the termination date; however, the total will not exceed the lump sum fee payable under this Agreement. City will make the final determination as to the portions of tasks completed and the compensation to be made. 21. COVENANTS AGAINST CONTINGENT FEES Contractor warrants that Contractor has not employed or retained any company or person, other than a bona fide employee working for Contractor, to solicit or secure this Agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide City Attorney Approved Version 4/1/15 5 September 26, 2017 Item #4 Page 10 of 20 employee, any fee, comm1ss1on, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, City will have the right to annul this Agreement without liability, or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of the fee, commission, percentage, brokerage fees, gift, or contingent fee. 22. CLAIMS AND LAWSUITS By signing this Agreement, Contractor agrees that any Agreement claim submitted to City must be asserted as part of the Agreement process as set forth in this Agreement and not in anticipation of litigation or in conjunction with litigation. Contractor acknowledges that if a false claim is submitted to City, it may be considered fraud and Contractor may be subject to criminal" prosecution. Contractor acknowledges that California Government Code sections 12650 et seq., the False Claims Act applies to this Agreement and, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney's fees. Contractor acknowledges that the filing of a false claim may subject Contractor to an administrative debarment proceeding as the result of which Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five (5) years. Contractor acknowledges debarment by another jurisdiction is grounds for City to terminate this Agreement. 23. JURISDICTION AND VENUE Any action at law or in equity brought by either of the parties for the purpose of enforcing a right or rights provided for by this Agreement will be tried in a court of competent jurisdiction in the County of San Diego, State of California, and the parties waive all provisions of law providing for a change of venue in these proceedings to any other county. 24. SUCCESSORS AND ASSIGNS It is mutually understood and agreed that this Agreement will be binding upon City and Contractor and their respective successors. Neither this Agreement nor any part of it nor any monies due or to become due under it may be assigned by Contractor without the prior consent of City, which shall not be unreasonably withheld. 25. ENTIRE AGREEMENT This Agreement, together with any other written document referred to or contemplated by it, along with the purchase order for this Agreement and its provisions, embody the entire Agreement and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Agreement supersede the purchase order. Neither this Agreement nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties. II II II II II II II II 6 City Attorney Approved Version 4/1/15 September 26, 2017 Item #4 Page 11 of 20 26. AUTHORITY The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. CENTER FOR SUSTAINABLE ENERGY, a California not-for-profit corporation President (print name/title) By: (sign here) (print name/title) CITY OF CARLSBAD, a municipal corporation of the State of California By: _///{# MAT~ Mayor ATTEST: City Clerk If required by City, proper notarial acknowledgment of execution by contractor must be attached. If a corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CELIA A. BREWER, City Attorney City Attorney Approved Version 4/1 /15 7 September 26, 2017 Item #4 Page 12 of 20 SCOPE OF SERVICES Work Plan The objective for this scope of work is to address the following CAP actions: • Action A-3: Adopt an ordinance, similar to those passed by Lancaster and Sebastopol, which requires new homes to install PV panels to offset a portion of their energy use. • Action B-1: Adopt a commercial energy conservation ordinance requiring all new nonresidential developments with more than 50 cars surface parked or on roofs of parking structures to use PV panels over at least half of the surface/roof-parked cars, or provide equivalent energy conservation/generation by other means (over and above other requirements). • Action B-2: Adopt an ordinance requiring existing nonresidential developments to install PV panels to offset a portion of their energy use. • Measure I: Promote replacement of incandescent and halogen bulbs with LED or other energy efficient lamps. [NOTE: CAP recommends that new construction projects could provide at least 75% LED (or similarly efficient) lighting]. • Action 1-3: Evaluate the feasibility of adopting a minimum natural lighting and ventilation standard, based on local conditions. • Action J-2: Adopt residential and commercial energy conservation ordinances requiring new residential and commercial buildings to install solar water heaters or heat pumps, or use alternative energy (such as PV-generated electricity) for water heating needs. • Action L-5: Adopt requirements for ZEV parking for new developments. • Action L-6: Adopt a residential energy conservation ordinance, similar to Palo Alto, requiring the installation of EV chargers or pre-wiring in new residential construction and major renovations. Task 1 -Research Other Ordinances Approach CSE and our partner, TRC, will conduct an in-depth assessment of ordinances adopted by other jurisdictions that address photovoltaic systems, solar and alternative energy water heating, and electric vehicle charging infrastructure for both residential and commercial construction to inform development of ordinances for the City of Carlsbad. We will draw on our knowledge of existing ordinances both within California and nationally to identify best practices and highlight the most practical and cost-effective approaches for ordinance adoption and implementation. CSE's research will include phone interviews with other jurisdictions that have adopted similar ordinances to understand their intent, alternative pathways considered, and lessons learned from the adoption and implementation processes. TRC will focus on more technical research, namely the identification of existing cost-effectiveness studies to support parameter development and their applicability to the City's efforts. We will also draw on our extensive knowledge, and that of TRC, regarding existing and proposed minimum standards established by Title 24, Parts 6 and 11, California's Building Energy Efficiency Standards and the Green Building Standards Code (CALGreen), to ensure the City's proposed ordinances align with and do not duplicate existing standards. CSE and City Attorney Approved Version 4/1/15 8 September 26, 2017 Item #4 Page 13 of 20 TRC will discuss Carlsbad's proposed ordinances with the CEC Building Standards Office and the California Building Standards Commission (CBSC) to provide the City with an understanding of the implications of future code cycles on the ordinances being considered for adoption. For example, the 2019 Building Energy Efficiency Standards, expected to be implemented in 2020, will likely include mandatory solar PV systems for new homes. The City of Carlsbad may want to consider aligning its approach for mandatory solar PV with the state's anticipated direction to establish leadership and prepare local builders and building owners for the state requirements, while remaining in alignment with the City's CAP goals. This approach would also place the City in a position to provide valuable feedback to the CEC to help shape future statewide minimum standards that work toward a ZNE future for California. Deliverables Task 1 activities will culminate in a memorandum summarizing the research findings. The memo will address information about ordinance purpose and intent, applicability, exemptions, definitions, minimum requirements, and alternative methods of compliance. The memorandum will discuss the extent to which the ordinance requirements are already addressed in the latest version of California Building Codes or other recent state legislation, as well as standards currently under development. Additionally, the memorandum will address whether the contemplated local ordinance will require approval by the CEC or other state regulatory authority, and if so, will outline the process necessary for such approval(s). Task 2 -Develop Parameters for Draft Ordinances Approach To develop ordinance parameters, our team will consider research gathered in Task 1, input from City staff, CAP greenhouse gas reduction goals, the CAP Compliance Checklist, the draft CAP Implementation Plan, and requirements imposed upon local development projects to date. CSE proposes to meet with City staff early in the parameter development phase to discuss the CAP-related resources, the intent for the desired ordinances, and key considerations related to the performance of cost-effectiveness (cost-effectiveness) studies, where applicable, to align on approach and ensure the end products meet the City's needs and best serve the CAP goals while remaining cost-effective and strategic in the context of the state's direction for building energy codes. TRC will join this meeting to provide key technical insights regarding cost- effectiveness of proposed measures and context related to Title 24. For ordinances that require cost-effectiveness analyses, CSE and TRC will assess the validity of existing cost-effectiveness studies and, if necessary, TRC will perform new cost-effectiveness studies during the parameter development process. It is critical that the cost-effectiveness analyses be performed at this stage of ordinance development, rather than after ordinance language has been prepared for public review, as only cost-effective measures should be included in the requirements to minimize cost impacts to affected development projects and to ensure the ordinance will pass both the public review period and the CEC review and approval process. CSE would like to avoid a situation in which the City releases draft ordinances for public review that include measures that are not cost-effective, only to revise them later and extend the public review timeline. This will streamline the ordinance development process and ensure the most well-informed and near-final ordinance drafts are released to the public in Task 3. City Attorney Approved Version 4/1/15 9 September 26, 2017 Item #4 Page 14 of 20 The project team proposes that the cost effectiveness analysis be done on a 'bundled' basis for measure groups that address multiple CAP actions and measures as opposed to conducting separate cost effectiveness analyses for each CAP action independent of the others. Results will be provided at the CAP action/measure level. TRC will develop cost effectiveness analysis intended to be approved by the CEC, or other regulatory body, as applicable. Cost effectiveness analysis of the CAP actions/measures will include cost data collection and energy savings benefits specific to the Carlsbad region (Climate Zone 7). TRC will implement the following cost effectiveness methodologies, which have been successfully used for previous local ordinances and code enhancements: 1. The CEC Life Cycle Cost Methodology, which uses Time Dependent Valuation, for efficiency measures (e.g., LEDs, solar hot water, heat pump water heaters). 2. An On-Bill cost effectiveness methodology, which uses utility rates to determine cost effectiveness from the building owner perspective, for solar PV and EV related measures TRC will assess cost effectiveness for prototypes representative of the existing and new construction buildings in Carlsbad. Prototype development and finalization will be coordinated with City staff, but may include prototypes for single family home (one and two story), multifamily, medium office and retail strip mall. These prototypes may be based on those used by the California Energy Commission for their Codes and Standards Enhancement Studies (CASE) as well as those used by ASHRAE for 90.1 as appropriate. Deliverables Task 2 activities will culminate in a memorandum detailing the selected parameters for each ordinance and the justifications for their selection. Justifications will include, but not be limited to, CAP goals and objectives (including GHG reductions estimates), California clean energy goals and developing standards (e.g. 2016 and 2019 energy and green building standards), cost-effectiveness of requirements, and available incentives and resources to offset the cost of the required measures. Any cost-effectiveness analysis performed by TRC to inform parameter selection will also be provided to the City as a deliverable. Based on discussion with City staff, CSE and TRC will not perform research or cost effective analyses on residential rooftop solar, natural ventilation or high efficiency lighting. We will provide explanation of the rationale for eliminating these elements in our summary memo. Task 3 -Prepare Public Review Draft Ordinances Approach CSE will compile the results of Tasks 1 and 2, including feedback and direction from City staff, to prepare draft ordinance language for public review. CSE will utilize the ordinance template provided by the City and ensure the draft language follows the standard format of the Carlsbad Municipal Code. Deliverables Task 3 deliverables include draft ordinance language for all ordinances agreed upon in Task 2. City Attorney Approved Version 4/1/15 10 September 26, 2017 Item #4 Page 15 of 20 Task 4 -Conduct Stakeholder Engagement Approach CSE's first step in Task 4 will be development of a Stakeholder Engagement Plan for review and approval by City staff. The Stakeholder Engagement Plan will outline all engagement activities and the coordination steps necessary to prepare for and execute the activities, including staff's role in noticing and promoting public meetings. The Plan will incorporate direction from staff regarding appropriate stakeholders and CSE's knowledge of the Carlsbad building community and effective stakeholder engagement activities. CSE proposes to meet with City staff in early December to gather input and direction, including information on case study projects that could be used to help educate stakeholders about the proposed ordinances. CSE will defer to the City's best practices for soliciting public feedback and any lessons learned during the CAP development process. Outreach activities may include: • Targeted stakeholder meetings: CSE anticipates holding multiple meetings with targeted stakeholders throughout the ordinance development process to ensure the needs of key stakeholders are being heard and considered. CSE will work with City staff to identify key stakeholders for each of the sectors addressed by the new ordinances. • Public meetings: CSE anticipates coordinating and presenting at least one public meeting, with a limited number of additional presentations generated via direct outreach (see bullet below). CSE will prepare a slide deck introducing and explaining the proposed ordinances, along with example of practical project implications. CSE staff will take detailed notes at all public meetings for incorporation into the summary memo for this task and to inform changes to the proposed ordinances. • Direct/email outreach: CSE anticipates reaching out directly via email to key stakeholders. Direct outreach may include informational emails from Carlsbad's Communications Department with an opportunity to provide written feedback via web form during a limited, clearly communicated, public input period. CSE proposes to perform targeted outreach to stakeholders with information regarding ordinances that will directly affect them to ensure messaging remains salient and recipients do not "tune out" messaging from the City. For example, outreach to residential contractors and homeowners would address the residential ordinances, property developers would receive information regarding the ordinances that address new construction. Similarly, EV charging installers would receive targeted information regarding the EV-charging ordinance. CSE suggests that stakeholder messaging be clear and straightforward, including a description of the compliance process and at least one example of how the ordinance will practically apply to a specific project. Additionally, CSE proposes to include in outreach messaging information that supports implementation, specifically case studies of successful projects that incorporate the required measures, their upfront costs, the resulting energy and cost savings, and GHG reductions. CSE will also provide information on incentives, rebates and other resources to help offset any additional project costs associated with the ordinance requirements. CSE will pull from the cost-effectiveness studies to inform financial messaging to stakeholders, including relative cost impacts and simple payback for required measures. City Attorney Approved Version 4/1/15 11 September 26, 2017 Item #4 Page 16 of 20 After securing approval from City staff on the Stakeholder Engagement plan, CSE will execute the engagement activities in coordination with the City's Planning Division and Communications Department. At the conclusion of the engagement activities CSE will document the process and all feedback received in a draft summary memorandum. CSE proposes to discuss this draft, all input received from stakeholders, and any necessary changes to the ordinances resulting from stakeholder feedback with City staff at an in-person meeting. The draft summary memo will be finalized after meeting with City staff and aligning on ordinance adjustments. Deliverables CSE will provide a Draft Stakeholder Engagement Plan that clearly outlines the stakeholder engagement process and all roles and responsibilities shared among City staff and CSE. CSE will solicit feedback on the draft and incorporate any edits in a final version. CSE will not embark on any engagement activities until this plan has been approved by City staff. Deliverables will also include attendance at several targeted stakeholder meetings, up to four public stakeholder meetings, presentation slides for delivery at meetings, copy for stakeholder emails including case studies for representative projects, and printed copies of key ordinance information and supporting documentation for distribution at stakeholder meetings. Task 4 activities will culminate in a memorandum detailing the engagement process, feedback received from stakeholders, and the resulting changes to the proposed ordinances (if applicable). Task 5 -Prepare Final Draft Ordinances & Support Council Adoption Approach Based on the outcome of stakeholder engagement activities and meeting with City staff in Task 4, CSE will prepare final draft ordinances. Should any changes require revisions to cost- effectiveness studies, TRC will perform those revisions. For each ordinance, CSE will prepare a clean version for submittal to Council and a version with edits indicating changes that resulted from the stakeholder engagement process. CSE will support staff at City Council hearings, assumed for July or August 2018, and will be prepared to present on and/or discuss all aspects of the ordinances and the ordinance development process. Deliverables Task 5 deliverables include all agreed-upon final draft ordinances, both clean and mark-up copies. Task 6 -Support CEC Application Approach Once CSE has the final direction from staff regarding ordinance development (including changes resulting from public review), CSE and TRC will prepare applications to the CEC for all ordinances that require their review and approval (i.e. any local standards that are more stringent than Title 24, Part 6). Upon receipt of the application packet, CEC staff review the documentation and, if complete, place the ordinance on a 60-day public comment period per Section 10-106 of the Building Energy Efficiency Standards. CSE and TRC will be available during this 60-day period to respond to public comments and provide clarification regarding the City Attorney Approved Version 4/1/15 12 September 26, 2017 Item #4 Page 17 of 20 Table 2. Project Deliverables -- . Anticipated Tasks Deliverables D 1• Research Other Ordinances Draft summary memo Final summary memo Draft summary memo 2 Develop Parameters for Draft Ordinances Final summary memo Cost-effectiveness studies 3 Prepare Public Review Draft Ordinances Draft ordinances for public review Draft Stakeholder Engagement Plan e 1very Month 2 Month 3 Month 4 Month 5 Month 5 Month 6 Month 1 Final Stakeholder Engagement Plan Month 2 4 Conduct Stakeholder Engagement 5 Prepare Final Draft Ordinances 6 Prepare Application for CEC Approval 7 Project Coordination & Admin istration Project Costs Execute Stakeholder Engagement Draft summary memo Final summary memo Final Draft Ordinances CEC application(s) Invoices and progress reports Months 3-6 Month 7 Month 8 Month 10 Months 12 -14 Monthly CSE's proposed budget reflects the cost of all tasks related to preparing ordinances to support climate action plan implementation. All costs, including labor and non-labor expenses, are provided in Table 3. Assumptions Table 3 represents our best efforts to estimate project costs, based on our years of experience working with local jurisdictions to develop advanced energy ordinances and perform outreach to key stakeholders. Our assumptions are provided in detail below. • Our estimated budget total is $120,000. CSE anticipates entering into a Time & Materials contract in which only labor and expenses actually incurred would be billed to the City of Carlsbad. The $120,000 total is considered a "Not to Exceed" amount. CSE will not invoice for any labor or expenses that are not actually incurred during the contract term. • Task totals have been rounded for simplicity. We can provide more detailed budget numbers upon request. • Key project support staff will attend a kick off meeting. • Michael Arvizu, Ryan Carney and Kevin Wood will attend evening meetings. The evening meeting attendance rate included below is higher than the loaded hourly rate because it accounts for overtime incurred after normal business hours. • Expenses account for travel to up to 16 meetings in Carlsbad from CS E's office in Kearny Mesa, San Diego at the federal mileage rate of $0.535/mile (staff will attempt to carpool whenever possible), travel to San Diego for TRC staff located in Sacramento, and minimal costs for printing of outreach materials. City Attorney Approved Version 4/1/15 14 September 26, 2017 Item #4 Page 19 of 20