12-055 Optony, Inc., Feasibility Study for the City of Cupertino’s Corporation Yard Site CITY OF
j AGREEMENT
CITY OF CUPERTINO
/ 10300 Torre Avenue
4.,„c 4b Cupertino, CA 95014 �7V s
CUPERTINO 408-777-3X00 NO. l/�
THIS AGREEMENT, made and entered into this 6th day of April, 2012, is by and between the
CITY OF CUPERTINO (Hereinafter "CITY") and Optony, Inc., 2855 Kifer Rd., Suite 201 Santa
Clara, CA 95051, 646-250-4241.
Hereinafter "CONTRACTOR"), in consideration of their mutual covenants, the parties agree as
follows:
CONTRACTOR shall provide or furnish the following specified services and/or materials: Solar
Feasibility Study for the City of Cupertino's Corporation Yard Site. .
Check box if services are further described in an Exhibit. 10
EXHIBITS: The following attached exhibits hereby are made part of this Agreement:
A: Feasibility Study
B: Proposed Budget.
TERM: The services and/or materials furnished under this Agreement shall commence on April
11th, 2012 and shall be completed no later than June 30th, 2012.
COMPENSATION: For the full performance of this Agreement, CITY shall pay CONTRACTOR:
$4,900.
California Labor Code, Section 1771 requires the payment of prevailing wages to all workers
employed on a Public Works contract in excess of $1,000.00.
GENERAL TERMS AND CONDITIONS
Hold Harmless. Contractor shall, to the fullest extent allowed by law, indemnify, defend, and hold
harmless the City and its officers, officials, agents, employees and volunteers against any and all
liability, claims, stop notices, actions, causes of action or demands whatsoever from and against
any of them, including any injury to or death of any person or damage to property or other liability
of any nature, arising out of, pertaining to, or related to the performance of this Agreement by
Contractor or Contractor's employees, officers, officials, agents or independent contractors.
Contractor shall not be obligated under this Agreement to indemnify City to the extent that the
damage is caused by the sole or active negligence or willful misconduct of City, its agents or
employees. Such costs and expenses shall include reasonable attorneys' fees of counsel of City's
choice, expert fees and all other costs and fees of litigation.
Subcontracting. Contractor has been retained due to their unique skills and Contractor may not
substitute another, assign or transfer any rights or obligations under this Agreement. Unless prior
written consent from City is obtained, only those people whose names are listed this Agreement
shall be used in the performance of this Agreement.
Assignment. Contractor may not assign or transfer this Agreement, without prior written consent
of CITY.
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Short Form Agreement
Insurance. Contractor shall file with City a Certificate of Insurance consistent with the following
requirements
Coverage:
Contractor shall maintain the following insurance coverage:
(1) Workers' Compensation:
Statutory coverage as required by the State of California.
(2) Liability:
Commercial general liability coverage in the following minimum limits:
Bodily Injury: $1,000,000 each occurrence
$2,000,000 aggregate - all other
Property Damage: $500,000 each occurrence
$1,000,000 aggregate
If submitted, combined single limit policy with aggregate limits in the amounts of$2,000,000 will be
considered equivalent to the required minimum limits shown above.
(3) Automotive:
Comprehensive automobile liability coverage in the following minimum limits:
Bodily injury: $500,000 each occurrence
Property Damage: $500,000 each occurrence
or
Combined Single Limit: $1,000,000 each occurrence
Subrogation Waiver. Contractor agrees that in the event of loss due to any of the perils for which
it has agreed to provide comprehensive general and automotive liability insurance, Contractor shall
look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer
providing comprehensive general and automotive liability insurance to either Contractor or City with
respect to the services of Contractor herein, a waiver of any right to subrogation which any such
insurer of said Contractor may acquire against City by virtue of the payment of any loss under such
insurance.
Termination of Agreement. The City reserves the right to terminate this Agreement with or
without cause with a seven (7)-day notice. The Contractor may terminate this Agreement with or
without cause with a seven (7)-day written notice.
Non-Discrimination. No discrimination shall be made in the employment of persons under this
Agreement because of the race, color, national origin, ancestry, religion, gender or sexual
orientation of such person
Interest of Contractor. It is understood and agreed that this Agreement is not a contract of
employment in the sense that the relationship of master and servant exists between City and
undersigned. At all times, Contractor shall be deemed to be an independent contractor and
Contractor is not authorized to bind the City to any contracts or other obligations in executing this
Agreement. Contractor certifies that no one who has or will have any financial interest under this
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Short Form Agreement
Agreement is an officer or employee of City. City shall have no right of control as to the manner
Contractor performs the services to be performed. Nevertheless, City may, at any time, observe
the manner in which such services are being performed by the contractor.
The Contractor shall comply with all applicable Federal, State, and local laws and ordinances
including, but not limited to, unemployment insurance benefits, FICA laws, and the City business
license ordinance.
Changes. No changes or variations of any kind are authorized without the written consent of the
City.
CONTRACT CO-ORDINATOR and representative for CITY shall be:
NAME: Erin M. Cooke DEPARTMENT: Public & Environmental Affairs Division
This Agreement shall become effective upon its execution by CITY, in witness thereof, the parties
have executed this Agreement the day and year first written above.
CONTRACTOR: CITY • r •ERTIN o.
By v By 1/_A /Sit
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APPj 'AL / EXPENDITURE DISTRIBUTION
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CITY CLERK: ATTEST DATE q- /-1(47-477 >'
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Short Form Agreement
®OPTONY Silicon Valley I Washington DC I Denver I Beijing I Hangzhou
SCOPE OF SERVICES
TASK 1: SOLAR PROJECT TECHNICAL ASSISTANCE
In collaboration with key staff and stakeholders,Optony will develop a detailed feasibility study for the
Corporation Yard facility in the City of Cupertino. Included will be a full investigation of the potential for
solar at this site with real-world applications based on its energy profile,applicable financing options and
site-specific challenges or requirements. Included will be an economic analysis of virtual net metering
options within currently available PG&E rate tariffs and looking forward based on proposed legislation.
The study will be presented to stakeholders with supporting information and rationale to maximize
economic and environmental benefits while demonstrating local leadership.
Tasks Performed
• Perform on-site evaluation and surveys of the identified site to create an investment-grade feasibility
assessment.
o Including reviews of drawings of the potential solar installations area at each site based on prior
proposals and an on-site visit.
o Analysis of the operational,facility,structural,and environmental challenges specific to that site
that may require further detailed assessment or that may limit the range of options for solar
electricity and/or other renewable energy generation.
o Total generation potential,given available space or footprint.
o Potential CO2 reductions and related equivalents.
o Minimum and maximum recommended installation capacity,given potential energy efficiency
reductions,and optimized for site electricity usage with recommended system size and output.
o Any suggested tree trimming/removal for reccmmended capacities noted above.
o Compare expected system output to actual electricity consumption at the site to optimize system
size for electricity generation;also include the metering and observation necessary to produce
a time-of-use load profile for the facility.
o Identify opportunities to leverage the space at this site via aggregate/virtual net metering(VNM)
to offset demand at this and/or other facilities
o Evaluate economic benefits and costs of current and potential future aggregate/virtual net
metering programs
o Description of relevant VNM examples in other communities
o Scenarios where VNM might be possible from both a technical and economic perspective to
offset demand at the City Center complex
o Rationale and assumptions for this analysis current details for both a technical and non-technical
audience
• Interview project stakeholders and facility managers to determine potential issues and opportunities
• Evaluation of economic,financing and incentives to reduce up-front costs
o The economic feasibility of each solar installation,with realistic project cost forecasts.
o Potential financing mechanisms including direct:purchase,Power Purchase Agreements(PPA),
lease to buy options,or debt financing
®OPTONY Silicon Valley I Washington DC I Denver I Beijing I Hangzhou
o Available state and federal rebate/incentive programs and the potential impact on project
financial viability of changes to rebate/incentive structures that may occur within the following
one year.
o Applicable and recommended electricity rate schedules for renewable energy systems.
• Create a detailed and summary report of findings,recommendations,and external pricing benchmarks
• Develop stakeholder-specific talking points to help build support for this project
• Identify site-specific risks and opportunities for the next phases of this project
• Description of potential alternatives outside of the requested scenarios
• Review of findings and recommendations with staff
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®OPTONY Silicon Valley I Washington DC I Denver I Beijing I Hangzhou
PROPOSED BUDGET
This proposed budget takes into account the scope for each task of this project,the resources required to
accomplish the proposed tasks,the estimated timeline aid any additional costs that may be incurred as
part of our engagement with the City.
Proposed Services Amount
Task 1:Solar Project Technical Assistance Services $4,900
Other Fees and Costs
Travel—for Bay Area project sites No charge
Expenses-printing, binding,materials No charge
Hourly rates for additional service requests-based or task&resources $95-$180
Changes to the scope of the project are welcomed if they help the City accomplish its goals and any
impact to the proposed costs will be quickly communicated and are subject to the Agency's prior
approval.Rest assured that we do not have any financial interests in the contractors or technology that
will be evaluated or recommended because maintaining our independence and your best interests are
our top priority.
IIIOPTONY Silicon Valley I Washington DC I Denver I Beijing I Hangzhou
PROJECT EXAMPLES & TESTIMONIALS
Municipal governments and agencies — federal, state, regional, and local — are leading the charge
toward sustainability with an increasing focus on renewable sources to deliver clean, reliable, and low-
cost energy. At Optony, we recognize that the challenge of planning, implementing, and managing solar
systems to ensure their long-term viability can be incredibly complex. Optony provides expert,
independent services across the entire project lifecycle by applying our deep technical expertise and
broad project experience to achieve the greatest possible returns for our clients. Below are some client
examples demonstrating how Optony has increased long-term value and environmental impact while
reducing risks associated with their solar projects:
Santa Clara County Renewable Energy Procurement Project
�Go uNi.` The County is leading a collaborative procurement process that leverages multi-location
#� ., .T purchasing to reduce installation costs and PPA prices for sites within the County and
,t '" ' eight other independent Silicon Valley agencies. Optony deployed its expertise in solar
N i? .' procurement and project management to ensure that the RFP and PPA were properly
"- designed,implemented and evaluated. This major effort includes 70 individual sites with
more than 14MW in total installed capacity. As part of the project,Optony is also working closely with
participating cities to ensure that they maximize the impact from this project while reducing installed
costs and project risks.
US EPA Clean Energy Collaborative Procurement Initiative
Metropolitan Washington, DC Region
EBEPA The EPA Green Power Partnership launched a major collaborative solar procurement
GREEN ro ect in the greater Washington,DC area for higher education,local agencies and
'POWER p � g g g g
PARTNERSHIP' federal facilities to maximize installed solar capacity around the region. Optony was
engaged to provide technical expertise in the design and implementation of this complex effort across
multiple states and a wide array of organizations. This initiative has created a major participant pool with
20 agencies,176 sites and 57MW of potential solar capacity in Maryland,DC and Northern Virginia.The
next milestone is to pursue cost-effective financing for at least half of the sites that could yield over
$100M in economic activity and increase the combined level of installed solar regionally by over 200%
while generating energy savings for participating agencies.
Southwest Solar Transformation Initiative (SSTI)
This Department of Energy funded initiative is part of the SunShot program to reduce
installed solar project costs in the US by over 75%by 2016. Optony received the
largest award for the Rooftop Solar Challenge to create and deploy the SSTI model
across 6 states and over 35 participating agencies.This initiative was launched in early
2012 with participants receiving customized solar roadmaps to pursue local and regional opportunities to
dramatically increase installations of cost-effective solar systems for residential and commercial property
owners while increasing economic activity in under-served communities.
City and County of San Francisco Solar America Cities Project
le couNy,Y�� The City has established a new program to help commercial property owners to find
-,° financing models to enable them to cost-effectively install solar systems on their
r mf k ;M facilities. This project was initiated with Solar America Cities funding and support to
1L., create a new model for broad application. Optony was engaged to provide expertise in
d;- ,,-
,..;., site assessment,and financial model development for renewable energy systems. This
project is underway with a planned impact in the next 12 months of at least 2MW.
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®OPTONY Silicon Valley I Washington DC I Denver I Beijing I Hangzhou
City of Walnut Creek Solar Portfolio Analysis & Procurement
The City has created a major solar initiative to evaluate 8 locations for solar potential as part
,:;r of their overall sustainability strategy.They engaged Optony to develop a comprehensive
IN investment-grade feasibility study for their full portfolio of sites and evaluate appropriate
�I.AL BUT financing models to meet their needs. This effort is underway with over 400kW in capacity
CREEK identified for future development.The next phases planned for this year are procurement
and project management to ensure a successful outcome to this important effort.
San lose, CA BioCenter
This 2-story building in San Jose houses a Biotechnology incubator with a footprint
I I d I of approximately 34,000 sq.ft.and a large open parking area. Optony was engaged
to perform a solar feasibility assessment and to develop alternative scenarios that
would reduce costs and offset a substantial portion of the current electricity usage. We found that there
were a number of challenges in utilizing the rooftop but developed an alternative scenario for a carport
structure that could hold over 500kW in installed solar capacity. Client feedback from the Managing
Director,Gayle Fagan: "Optony's consulting service is a rust-have for any organization considering an
investment in solar.Based on Optony's comprehensive analysis and recommendation,we now have a
low-risk,high-return solar strategy."
Shandong Province, China 10MW Solar Farm Engineering
A local project developer in the Shandong Province in eastern China has
commissioned a 10MW solar farm that taps into the utility provider's feed-in-tariff
for clean energy production. Optony was engaged to provide project engineering,
..: procurement and management services for the developer while ensuring
compliance with local government regulations and procedures. The design and
application process has been completed and construction is scheduled for Q4 2010.
Peking University Green Campus Initiative
.;76
In a major effort to demonstrate national leadership on clean technology and green
campus design,Peking University is creating a showcase for solar technologies and
installations at their main campus in Beijing,China.The University partnered with
l `i,, Optony to develop its overall solar strategy along with leading-edge designs for
A k A 4: 4 selected campus facilities.Optony was chosen because of its strengths in
vrurNG 1"vwFR,rrY fundamental solar R&D and innovative approach to design,project management and
utilization of world-class best practices. The first phase,including system feasibility and design,has been
completed and the project build phase is planned for 2010 with Optony oversight and management.
Citywide Solar Project Development in Datong, China
The Mayor of Datong,China is implementing a bold vision to transition the City's
y "'—'' economy from a national center cif coal production to an internationally recognized
r..r 3/4 ,,7_,,,,,, leader in renewable energy innovation and deployment. Due to their leadership
""° :7 """m'" and commitment in China,they were also selected to host the inaugural 2013 Solar
m Decathlon in China. Optony was engaged to create a realistic,but very aggressive,
New Energy Cities plan for 2015 and 2020. The result was a comprehensive review
of opportunities and challenges with a detailed implementation plan for the next 9 years that will lead to
over 7GW of new energy projects. This effort was so well received by local,provincial and state officials,
that it is rapidly becoming the standard for future city energy planning across China.
Additional information is available upon request or can be found on our website at www.optony.com
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