CITY OF SAN MATEO. Administrative Report. SUBJECT: Digester Gas to Compressed Natural Gas Project Grant Award and Engineering Services Agreement

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1 CITY OF SAN MATEO City Hall 330 W. 20th Avenue San Mateo, CA Administrative Report Agenda Number: 9., Status: Consent Calendar TO: FROM: PREPARED BY: City Council Larry A. Patterson, City Manager Public Works Department MEETING DATE: Monday, December 01, 2014 SUBJECT: Digester Gas to Compressed Natural Gas Project Grant Award and Engineering Services Agreement RECOMMENDATION Adopt a Resolution to appropriate $2.45M in California Energy Commission (CEC) grant funding and $650,000 from the unrestricted Sewer Fund balance and defund Foster City and Other Agencies funding in the Digester Gas to Compressed Natural Gas Project; award a professional services agreement to Kennedy/Jenks Consultants for engineering services during design and construction, and post construction analysis in an amount of $615,000; and upon receipt of the CEC agreement and approval by the City Attorney, authorize the City Manager to execute the grant award and the professional services agreement. BACKGROUND The feasibility of developing a compressed natural gas (CNG) which would use the excess biogas produced from the anaerobic digestion process at the Wastewater Treatment Plant (WWTP) as a source gas to create the CNG was proposed to the California Energy Commission (CEC) Program Opportunity Notice , Alternative and Renewable Fuel and Vehicle Technology Program for Pilot-Scale and Commercial-Scale Advanced Biofuels Production Facilities projects. On March 3, 2014 City Council gave authorization to submit an application for $2.45M of Alternative and Renewable Fuel and Vehicle Technology Program funding from the CEC to design and construct the Wastewater Treatment Plant Digester Gas to Compressed Natural Gas Project; commit to a matching share of $2.45M if awarded; determine that the project is Categorically Exempt pursuant to CEQA section 15303; and authorize the City Manager to sign all application documents. The application was submitted on March 25, 2014 and on July 18, 2014 the City of San Mateo was given the NOTICE OF PROPOSED AWARD, Round 2 from the CEC for the full requested amount of $2.45M. The final scope of work, budget, schedule, and terms and conditions of the agreement were developed from the initial information included in the City s proposal. At its November 17, 2014 business meeting, the California Energy Commission voted unanimously (4-0) to approve the agreement ARV with the City of San Mateo for the $2,450,000 grant for the digester gas to CNG project. The agreement is being finalized by the CEC and will be available within 2-4 weeks for review and approval by the City Attorney. As part of the match share portion of the grant, the City committed $615,000 for engineering services. The City determined that Kennedy/Jenks Consultants, as the authors of the evaluation study and the providers of technical assistance in the preparation of the grant proposal, was the most experienced and uniquely qualified professional to complete the project in a timely manner. The scope of work will include pre-design, design, bidding assistance, engineering services during construction, and post-construction analysis for the digester gas treatment and fuelling system. BUDGET IMPACT CEC GRANT FUNDING CITY OF SAN MATEO Page 1 of 2 Printed on 11/25/2014 powered by Legistar

2 Agenda Number: 9., Status: Consent Calendar The CEC grant of $2.45M is a reimbursement to the City for actual allowable expenditures incurred in accordance with the Budget. Funds have a limited period in which they must be expended within the approved term of the agreement. CITY OF SAN MATEO S MATCH SHARE FUNDING Following the appropriation of grant funding, the City is defunding the Foster City and Other Agencies budgets in the Digester Gas to Compressed Natural Gas Project and replacing that funding with unrestricted Sewer Fund balance for an estimated fund balance of $4.95 million. Sufficient funds will be available to award the recommended professional services agreement. ENVIRONMENTAL DETERMINATION The project is Categorically Exempt per CEQA Guideline Section 15303, New Construction or Conversion of Small Structures. The Notice of Exemption was filed with the San Mateo County Recorder on April 9, NOTICE PROVIDED All meeting noticing requirements were met. ATTACHMENTS Attachment 1 - Proposed Resolution Attachment 2 - CEC/City of San Mateo Agreement will be available at a later date. Exhibits for the agreement are as follows: Exhibit A Scope of Work Exhibit A1 Schedule of Products and Due Dates Exhibit B Direct Operating Expense Exhibit C Terms and Conditions Attachment 3 - Kennedy/Jenks Consultants Agreement, with Exhibits Exhibit A Scope of Services Exhibit B Proposal Fee Estimate Exhibit C Estimated List of Drawings (Attachment 1) STAFF CONTACT Brad Underwood, Public Works Director bunderwood@cityofsanmateo.org <mailto:bunderwood@cityofsanmateo.org> (650) Gogo Heinrich, Project Manager gheinrich@cityofsanmateo.org <mailto:gheinrich@cityofsanmateo.org> (650) CITY OF SAN MATEO Page 2 of 2 Printed on 11/25/2014 powered by Legistar

3 CITY OF SAN MATEO RESOLUTION NO. (2014) APPROVING APPROPRIATIONS OF $2.45 MILLION IN CALIFORNIA ENERGY COMMISSION GRANT FUNDING AND $650,000 IN UNRESTRICTED SEWER FUND BALANCE TO THE COMPRESSED NATURAL GAS PROJECT, AND THE DEFUNDING OF CERTAIN AGENCIES WHEREAS, the feasibility of developing compressed natural gas to use excess biogas produced from the anaerobic digestion process at the Wastewater Treatment Plant was proposed to the California Energy Commission (CEC) Program Opportunity Notice , Alternative and Renewable Fuel and Vehicle Technology Program; and WHEREAS, in March 2014 the City Council Authorized submission of an application for $2.45 Million in Alternative and Renewable Fuel and Vehicle Technology Program funding to design and construct the Wastewater Treatment Plant Digester Gas to Compressed Natural Gas Project ( the Project ), Committed to a matching share of $2.45M if awarded, Determined that the Project is categorically exempt pursuant to California Environmental Quality Act section 15303, and Authorized execution of all application documents; and ` WHEREAS, the City received the Notice of Proposed Award, Round 2 from the CEC for the full requested amount of $2.45 Million in July 2014; and WHEREAS, as part of the match share portion of the grant, the City committed $615,000 for engineering services; and WHEREAS, the Council approved a contract with Kennedy Jenks Consultants for professional services in the amount of $615,000 under the provisions of Municipal Code section (c), which allows the City to approve a professional services contract without competitive bidding, concurrently with this Resolution; and WHEREAS, appropriations of $2.45 Million in CEC grant funding and $650,000 from the unrestricted Sewer Fund Balance, along with the defunding of Foster City and Other Agencies budget in the Project account, are necessary to move forward with the Project; and WHEREAS, it is proposed that the funds for Foster City and Other Agencies, which were defunded from the Project account, be replaced with funding from the unrestricted Sewer Fund balance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that: 1. The Project is categorically exempt per California Environmental Quality Act Guideline section 15303, New Construction or Conversion of Small Structures. The Notice of Exemption was filed with the San Mateo County Recorder on April 9, An appropriation of $2.45 Million in California Energy Commission grant funding to the Digester Gas to Compressed Natural Gas Project (#469967) is approved.

4 3. An appropriation of $650,000 from the unrestricted Sewer Fund Balance to the Digester Gas to Compressed Natural Gas Project (#469967) is approved. 4. The defunding of Foster City and Other Agencies budget in the Digester Gas to Compressed Natural Gas Project (#469967) is approved. 5. The replacement of the defunded Foster City and Other Agencies budget with funds from the unrestricted Sewer Fund balance is approved.

5 TECHNICAL TASK LIST Task # CPR Task Name 1 Administration Attachment 2 Exhibit A SCOPE OF WORK 2 Pre-Design, Design and Bidding 3 X Construction and Equipment 4 Data Collection and Analysis KEY NAME LIST Task # Key Personnel Key Subcontractor(s) Key Partner(s) 1 City of San Mateo 2 City of San Mateo Unison Solutions 3 City of San Mateo Unison Solutions 4 City of San Mateo Unison Solutions GLOSSARY Specific terms and acronyms used throughout this scope of work are defined as follows: Term/ Definition Acronym ARFVTP CAM Recipient cfm CNG CPR DGE FTD GGE Recipient Alternative and Renewable Fuel and Vehicle Technology Program Commission Agreement Manager City of San Mateo Cubic Feet Per Minute Compressed Natural Gas Critical Project Review Diesel Gallon Equivalent Fuels and Transportation Division Gasoline Gallon Equivalent City of San Mateo

6 SAE WWTP Society of Automotive Engineers Waste Water Treatment Plant Background: Assembly Bill (AB) 118 (Nùñez, Chapter 750, Statutes of 2007), created the Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP). The statute authorizes the California Energy Commission (Energy Commission) to develop and deploy alternative and renewable fuels and advanced transportation technologies to help attain the state s climate change, clean air, and alternative energy policies. AB 8 (Perea, Chapter 401, Statutes of 2013) re-authorizes the ARFVTP through January 1, The ARFVTP has an annual budget of approximately $100 million and provides financial support for projects that: Reduce California s use and dependence on petroleum transportation fuels and increase the use of alternative and renewable fuels and advanced vehicle technologies. Produce sustainable alternative and renewable low-carbon fuels in California. Expand alternative fueling infrastructure and fueling stations. Improve the efficiency, performance and market viability of alternative light-, medium-, and heavy-duty vehicle technologies. Retrofit medium- and heavy-duty on-road and non-road vehicle fleets to alternative technologies or fuel use. Expand the alternative fueling infrastructure available to existing fleets, public transit, and transportation corridors. Establish workforce training programs and conduct public outreach on the benefits of alternative transportation fuels and vehicle technologies. The Energy Commission issued Solicitation PON entitled Pilot-Scale and Commercial- Scale Advanced Biofuels Production Facilities under the ARFVTP on January 14, This competitive grant solicitation was an offer to cost share the development and production of new low carbon transportation fuels. To be eligible for funding under PON , the projects must also be consistent with the Energy Commission s ARFVTP Investment Plan as updated annually. In response to PON , the Recipient submitted Application #2 which was proposed for funding in the Energy Commission s Notice of Proposed Awards on July 18, PON is hereby incorporated by reference into this Agreement in its entirety. In the event of any conflict or inconsistency between the terms of the Solicitation and the terms of the Recipient s Application, the Solicitation shall control. In the event of any conflict or inconsistency between the Recipient s Application and the terms of the Energy Commission s Award, the Energy Commission s Award shall control. Similarly, in the event of any conflict or inconsistency between the terms of this Agreement and the Recipient s Application, the terms of this Agreement shall control. Problem Statement: California has a reliable and sustainable resource that is not being utilized to its full potential. This resource is digester gas that is produced as a byproduct of wastewater treatment in approximately 150 publicly owned wastewater treatment plants throughout the state. The project will be the first example of a new approach to cost-effectively produce vehicle fuel from wastewater generated digester gas in California. Numerous public agencies will see the

7 project as a viable option to cost-effectively recover energy from their digester gas. In addition, this approach will prove easier to operate and maintain than producing electricity with digester gas. Finally, the project displaces the use of petroleum fuel for vehicles. Because of these positive attributes, other public agencies with a Waste Water Treatment Plant (WWTP) will be encouraged to implement projects to produce biomethane for vehicle fuel from digester gas, once it is proven successful. The target markets for replicating the project are the 150 public agencies in California that produce digester gas at a WWTP. The project will sustainably and cost-effectively produce low carbon vehicle fuel from the unused digester gas that is generated at the City of San Mateo s WWTP. To achieve this, the digester gas will be treated using a unique system to create biomethane that meets the SAE J1616 vehicle fuel standards at digester gas production rates commonly seen at WWTPs. After treatment, the biomethane will be compressed and stored at a pressure suitable for rapid fueling of vehicles designed to operate on compressed natural gas (CNG). At the San Mateo WWTP, approximately 100 cubic feet per minute of wastewater generated digester gas is available to sustainably produce up to 500 gasoline gallon equivalents (GGE) of biofuel every day, or approximately 160,000 diesel gallon equivalents (DGE) of biofuel per year. Goals of the Agreement: The goals of this Agreement are to demonstrate that the technology to sustainably produce low carbon biofuel from digester gas generated from wastewater solids is viable and cost effective. The technical and financial success of the project will demonstrate that any wastewater treatment facility with digesters has the potential to sustainably produce vehicle fuel from digester gas. The demonstrated success should encourage other public agencies with WWTPs to consider producing vehicle fuel. Objectives of the Agreement: The objectives of this Agreement are as follows: 1. Install gas collection and control facilities to deliver digester gas to the gas treatment system. 2. Install a digester gas treatment system to clean anaerobic digester gas to produce biomethane that complies with SAE J1616 standards (CNG vehicle fuel). 3. Install a vehicle fuel system to compress, store, and dispense CNG to vehicles. 4. Produce 500 GGEs/day of vehicle fuel for use by the City of San Mateo s fleet. 5. Convert and/or buy vehicles to use CNG for vehicle fuel 6. Promote the success of waste gas conversion so that other public agencies with WWTPs will be encouraged to replicate the project. ADMINISTRATIVE TASKS TASK 1 ADMINISTRATION AND AGREEMENT MANAGEMENT Task 1.1 Attend Kick-off Meeting The goal of this task is to establish the lines of communication and procedures for implementing this Agreement. The CAM shall designate the date and location of this meeting and provide an agenda to the Recipient prior to the meeting.

8 The Recipient shall: Attend a Kick-Off meeting with the Commission Agreement Manager (CAM), the Grants Officer, and a representative of the Accounting Office. The Recipient shall bring its Project Manager, Agreement Administrator, Accounting Officer, and others designated by the CAM to this meeting. Discuss the following administrative and technical aspects of this Agreement: o Agreement Terms and Conditions o Critical Project Reviews (Task 1.2) o Match fund documentation (Task 1.6); no reimbursable work may be done until this documentation is in place. o Permit documentation (Task 1.7) o Subcontracts needed to carry out project (Task 1.8) o The CAM s expectations for accomplishing tasks described in the Scope of Work o An updated Schedule of Products and Due Dates o Monthly Progress Reports (Task 1.4) o Technical Products (Product Guidelines located in Section 5 of the Terms and Conditions) o Final Report (Task 1.5) Recipient Products: Updated Schedule of Products Updated List of Match Funds Updated List of Permits CAM Product: Kick-Off Meeting Agenda Task 1.2 Critical Project Review (CPR) Meetings CPRs provide the opportunity for open discussions between the Energy Commission and the Recipient. The goal of this ongoing task is to periodically assess critical progress under this agreement, determine if the project should continue to receive Energy Commission funding, and to identify any necessary modifications to the tasks, products, schedule and/or budget. The Commission Agreement Manager may schedule CPR meetings as necessary, and meeting costs are borne by the Recipient. Meeting participants include the CAM and the Recipient and may include the Commission Grants Officer, the Fuels and Transportation Division (FTD) biofuel lead, other Energy Commission staff and Management as well as other individuals selected by the CAM to provide support to the Energy Commission. The CAM shall: Determine the location, date, and time of each CPR meeting with the Recipient. These meetings generally take place at the Energy Commission, but they may take place at another location. Send the Recipient the agenda and a list of expected participants in advance of each CPR. If applicable, the agenda shall include a discussion on both match funding and permits.

9 Conduct and make a record of each CPR meeting. Prepare a schedule for providing the written determination described below. Determine whether to continue the project, and if continuing, whether or not modifications are needed to the tasks, products, schedule, and/or budget for the remainder of the Agreement. Modifications to the Agreement may require a formal amendment (see section 8 of Terms and Conditions). If the CAM concludes that satisfactory progress is not being made, this conclusion will be referred to the Lead Commissioner for Transportation for his or her concurrence. Provide the Recipient with a written determination in accordance with the schedule. The written response may include a requirement for the Recipient to revise one or more product(s) that were included in the CPR. The Recipient shall: Prepare a CPR Report for each CPR that discusses progress towards achieving goals and objectives of this Agreement. This report shall include recommendations and conclusions regarding continued work. This report shall be submitted along with any other products identified in this scope of work. The Recipient shall submit these documents to the CAM and any other designated reviewers at least 15 working days in advance of each CPR meeting. Present the required information at each CPR meeting and participate in a discussion about the Agreement. CAM Products: Agenda and a list of expected participants Schedule for written determination Written determination Recipient Product: CPR Report(s) Task 1.3 Final Meeting The goal of this task is to closeout the Agreement. The Recipient shall: Meet with Energy Commission staff to present the findings, conclusions, and recommendations. The final meeting must be completed during the closeout of this Agreement. This meeting will be attended by, at a minimum, the Recipient, the Commission Grants Office Officer, and the Commission Agreement Manager. The technical and administrative aspects of Agreement closeout will be discussed at the meeting, which may be two separate meetings at the discretion of the CAM. The technical portion of the meeting shall present an assessment of the degree to which goals and objectives have been achieved, findings, conclusions, recommended next steps (if any) for the Agreement, and recommendations for improvements. The CAM will determine the appropriate meeting participants. The administrative portion of the meeting shall be a discussion with the CAM and the Grants Officer about the following Agreement closeout items: o What to do with any equipment purchased with Energy Commission funds (Options)

10 Products: o Energy Commission s request for specific generated data (not already provided in Agreement products) o Need to document Recipient s disclosure of subject inventions developed under the Agreement o Surviving Agreement provisions o Final invoicing and release of retention Prepare a schedule for completing the closeout activities for this Agreement. Written documentation of meeting agreements Schedule for completing closeout activities Task 1.4 Monthly Progress Reports The goal of this task is to periodically verify that satisfactory and continued progress is made towards achieving the objectives of this Agreement on time and within budget. The objectives of this task are to summarize activities performed during the reporting period, to identify activities planned for the next reporting period, to identify issues that may affect performance and expenditures, and to form the basis for determining whether invoices are consistent with work performed. The Recipient shall: Prepare a Monthly Progress Report which summarizes all Agreement activities conducted by the Recipient for the reporting period, including an assessment of the ability to complete the Agreement within the current budget and any anticipated cost overruns. Each progress report is due to the CAM within 10 days of the end of the reporting period. The recommended specifications for each progress report are contained in Section 6 of the Terms and Conditions of this Agreement. In the first Monthly Progress Report and first invoice, document and verify match expenditures and provide a synopsis of project progress, if match funds have been expended or if work funded with match share has occurred after the notice of proposed award but before execution of the grant agreement. If no match funds have been expended or if no work funded with match share has occurred before execution, then state this in the report. All pre-execution match expenditures must conform to the requirements in the Terms and Conditions of this Agreement. Product: Monthly Progress Reports Task 1.5 Final Report The goal of the Final Report is to assess the project s success in achieving the Agreement s goals and objectives, advancing science and technology, and providing energy-related and other benefits to California.

11 The objectives of the Final Report are to clearly and completely describe the purpose, approach, activities performed, results, and advancements in science and technology of the project; to present a public assessment of the success of the project as measured by the degree to which goals and objectives were achieved; to make insightful observations based on results obtained; to draw conclusions; and to make recommendations for future projects and improvements to the FTD project management processes. The Final Report shall be a public document. If the Recipient has obtained confidential status from the Energy Commission and will be preparing a confidential version of the Final Report as well, the Recipient shall perform the following activities for both the public and confidential versions of the Final Report. The Recipient shall: Prepare an outline of the Final Report. Prepare a Final Report following the latest version of the Final Report guidelines which will be provided by the CAM. The CAM shall provide written comments on the Draft Final Report within fifteen (15) working days of receipt. The Final Report must be completed at least 60 days before the end of the Agreement Term. Submit one bound copy of the Final Report with the final invoice. Products: Outline of the Final Report Draft Final Report Final Report Task 1.6 Identify and Obtain Matching Funds The goal of this task is to ensure that match funds planned for this Agreement are obtained and applied to this Agreement during the term of this Agreement. The costs to obtain and document match fund commitments are not reimbursable through this Agreement. Although the Energy Commission budget for this task will be zero dollars, the Recipient may utilize match funds for this task. Match funds shall be spent concurrently or in advance of Energy Commission funds for each task during the term of this Agreement. Match funds must be identified in writing and the associated commitments obtained before the Recipient can incur any costs for which the Recipient will request reimbursement. The Recipient shall: Prepare a letter documenting the match funding committed to this Agreement and submit it to the CAM at least 2 working days prior to the kick-off meeting. If no match funds were part of the proposal that led to the Energy Commission awarding this Agreement and none have been identified at the time this Agreement starts, and then state such in the letter. If match funds were a part of the proposal that led to the Energy Commission awarding this Agreement, then provide in the letter a list of the match funds that identifies: o Amount of each cash match fund, its source, including a contact name, address and telephone number and the task(s) to which the match funds will be applied.

12 Products: o Amount of each in-kind contribution, a description, documented market or book value, and its source, including a contact name, address and telephone number and the task(s) to which the match funds will be applied. If the in-kind contribution is equipment or other tangible or real property, the Recipient shall identify its owner and provide a contact name, address and telephone number, and the address where the property is located. Provide a copy of the letter of commitment from an authorized representative of each source of cash match funding or in-kind contributions that these funds or contributions have been secured. For match funds provided by a grant a copy of the executed grant shall be submitted in place of a letter of commitment. Discuss match funds and the implications to the Agreement if they are reduced or not obtained as committed, at the kick-off meeting. If applicable, match funds will be included as a line item in the progress reports and will be a topic at CPR meetings. Provide the appropriate information to the CAM, if during the course of the Agreement additional match funds are received. Notify the CAM within 10 days, if during the course of the Agreement existing match funds are reduced. Reduction in match funds must be approved through a formal amendment to the Agreement and may trigger an additional CPR meeting. Letter regarding match funds or stating that no match funds are provided Copy(ies) of each match fund commitment letter(s) (if applicable) Letter(s) for new match funds (if applicable) Letter that match funds were reduced (if applicable) Task 1.7 Identify and Obtain Required Permits The goal of this task is to obtain all permits required for work completed under this Agreement in advance of the date they are needed to keep the Agreement schedule on track. Permit costs and the expenses associated with obtaining permits are not reimbursable under this Agreement. Although the Energy Commission budget for this task will be zero dollars, the Recipient shall budget match funds for any expected expenditures associated with obtaining permits. Permits must be identified in writing and obtained before the Recipient can make any expenditure for which a permit is required. The Recipient shall: Prepare a letter documenting the permits required to conduct this Agreement and submit it to the CAM at least 2 working days prior to the kick-off meeting. If there are no permits required at the start of this Agreement, then state such in the letter. If it is known at the beginning of the Agreement that permits will be required during the course of the Agreement, provide in the letter: o A list of permits that identifies: Type of permit Name, address and telephone number of the permitting jurisdiction(s) or lead agency o Schedule the Recipient will follow in applying for and obtaining these permits.

13 Products: Discuss list of permits and schedule for obtaining them at the kick-off meeting and develop a timetable for submitting an updated list, schedule and copies of permits. Implications to the Agreement if the permits are not obtained in a timely fashion or are denied will also be discussed. If applicable, permits will be included as a line item in the Progress Reports and a topic at CPR meetings. If during the course of the Agreement additional permits become necessary, provide the appropriate information on each permit and an updated schedule to the CAM. As permits are obtained, send a copy of each approved permit to the CAM. If during the course of the Agreement permits are not obtained on time or are denied, notify the CAM within 5 working days. Either of these events may trigger an additional CPR. Letter documenting permits or stating that no permits are required Copy of each approved permit (if applicable) Updated list of permits as they change during term of the Agreement (if applicable) Updated schedule for acquiring permits as changes occur during term of the Agreement (if applicable) Copy of each final approved permit (if applicable) Task 1.8 Obtain and Execute Subcontracts The goal of this task is to ensure quality products and to procure subcontractors required to carry out the tasks under this Agreement consistent with Terms and Conditions of the Agreement and the Recipient s own procurement policies and procedures. This task also provides the Energy Commission an opportunity to review subcontracts to ensure that the tasks are consistent with this Agreement, and that the budgeted expenditures are reasonable and consistent with applicable cost principles. The Recipient shall: Manage and coordinate subcontractor activities. Submit a draft of each subcontract required to conduct the work under this Agreement to the CAM for review. Submit a final copy of the executed subcontract. If Recipient decides to add new subcontractors, then the Recipient shall notify the CAM. Products: Draft subcontracts Final subcontracts TECHNICAL TASKS

14 TASK 2 Pre-Design, Design and Bidding The goal of this task is to create plans and specifications that describe the Project in sufficient detail so that the City can use a public bidding process to solicit bids from contractors to install the equipment necessary to produce 500 GGE/day of biomethane that will comply with SAE J1616 for use as vehicle fuel. The Recipient shall: Identify the modifications to the digester gas collection and control system to deliver digester gas to the gas treatment system. Refine the location of the gas treatment system and the vehicle fuel system components. Identify key equipment for the City to purchase, if needed. Identify the mechanical, electrical, and other utility connections to new facilities. Refine the cost estimate and payback analysis. Document the results of the predesign tasks in a technical memorandum. Create plans to show the civil, mechanical, structural, electrical, and instrumentation and control design of the gas treatment system and the vehicle fuel system, and appurtenant work need to create a complete and operable system. Create specifications to define the civil, mechanical, structural, electrical, and instrumentation and control components of the work. Combine the plans and specifications into a set of contract documents so that the City can use a public bidding process to solicit bids from contractors to construct the Project. Publicly open bids from the contractors and award a contract to the selected contractor. Products: Technical memorandum to summarize the results of the Pre-Design tasks Engineering designs when the design is approximately 50% complete Engineering designs when the design is approximately 90% complete A set of contract documents suitable for public bidding when the design is 100% complete A summary of the bids received TASK 3 Procurement and Construction The goal of this task is to procure equipment, construct, test, start-up and commission the Project. The Recipient shall: Administer construction progress meetings. Respond to contractor questions. Review contractor submittals of shop drawings and materials. Develop and negotiate change orders to the Project as needed. Review and process monthly payment requests from the contractor. Oversee testing of the installed equipment. Oversee training of the City s staff to operate and maintain the facilities. Oversee start-up and commissioning of the installed equipment.

15 Produce approximately 500 GGE per day, equivalent to 160,000 diesel gallon equivalents per year of biomethane that will comply with SAE J1616 for use as vehicle fuel. Products: Facility testing results Written and signed letter verifying biomethane produced [CPR WILL BE HELD IN THIS TASK. See Task 1.2 for details] Task 4 Data Collection and Analysis The goal of this task is to collect operational data from the project, to analyze that data for economic and environmental benefits, and to include the data and analysis in the Final Report. The Recipient shall: Develop a plan for data collection Troubleshoot any issues identified. Collect 6 months of throughput, usage, and operations data from the project including, but not limited to: o Maximum capacity of the new fueling system o Gallons of gasoline and/or diesel fuel displaced (with associated mileage information) o Expected air emissions reduction, for example: Non-methane hydrocarbons Oxides of nitrogen Non-methane hydrocarbons plus oxides of nitrogen Particulate Matter Formaldehyde o Duty cycle of the current fleet and the expected duty cycle of future vehicle acquisitions o Specific jobs and economic development resulting from this project Identify any current and planned use of renewable energy at the facility. Identify the source of the alternative fuel. Describe any energy efficiency measures used in the facility that may exceed Title 24 standards in Part 6 of the California Code Regulations. Provide data on potential job creation, economic development, and increased state revenue as a result of expected future expansion. Provide a quantified estimate of the project s carbon intensity values for life-cycle greenhouse gas emissions. Compare any project performance and expectations provided in the proposal to Energy Commission with actual project performance and accomplishments. Collect data, information, and analysis described above and include in the Final Report. Products: Data collection information and analysis will be included in the Final Report.

16 Task Number Task Name Attachment A-1 Schedule of Products and Due Dates Product(s) Due Date 1.1 Attend Kick-off Meeting Updated Schedule of Products 12/11/2014 Updated List of Match Funds 12/11/2014 Updated List of Permits 12/11/2014 Kick-Off Meeting Agenda (CEC) 12/10/ Critical Project Review Meetings 1st CPR CPR Report (Post Predesign) 2/5/2015 Meeting Written determination (CEC) 2/12/2015 2nd CPR CPR Report (Post Design) 7/16/2015 Meeting Written determination (CEC) 7/23/2015 3rd CPR Meeting CPR Report (Post Construction) 2/9/2016 Written determination (CEC) 2/16/ Final Meeting Written documentation of meeting agreements 7/13/2016 Schedule for completing closeout activities 7/20/ Monthly Progress Reports The 10th calendar day of each month during the approved term of this Agreement Monthly Progress Reports 1.5 Final Report Final Outline of the Final Report 7/12/2016 Draft Final Report (no less than 60 days before the end term of the agreement) 8/2/2016 Final Report 9/1/ Identify and Obtain Match Funds A letter regarding match funds or stating that no match funds are provided 12/11/2014 Copy(ies) of each match fund commitment letter(s) (if applicable) 12/11/2014 Letter(s) for new match funds (if applicable) Letter that match funds were reduced (if applicable) Within 10 days of identifying new match funds Within 10 days of identifying reduced funds 10/14/14 Page 1 of 2 ARV Exhibit A-1 Deliverables City of San Mateo

17 1.7 Identify and Obtain Required Permits Letter documenting the permits or stating that no permits are required 12/11/2014 A copy of each approved permit (if applicable) Updated list of permits as they change during the term of the Agreement (if applicable) Updated schedule for acquiring permits as changes occur during the term of the Agreement (if applicable) Within 10 days of receiving each permit Within 10 days of change in list of permits Within 10 days of change in schedule for obtaining permits Within 10 days of receiving each final permit A copy of each approved final permit (if applicable) 1.8 Obtain and Execute Subcontracts Letter describing the subcontracts needed, or stating that no subcontracts are required 12/11/2014 Draft subcontracts 15 days prior to the scheduled execution date Within 10 days of execution Final subcontracts 2 PRE-DESIGN, DESIGN AND BIDDING Technical Memorandum to summarize the results of the Pre-design tasks 2/28/2015 A review package of plans and specifications when the design is approximately 50% complete 5/21/2015 A review package of plans and specifications when the design is approximately 90% complete 6/25/2015 A set of contract documents suitable for public bidding when the design is 100% complete 7/24/2015 A summary of the bids received 9/15/ CONSTRUCTION AND EQUIPMENT Facility Testing Results 4/29/2016 Written and signed letter verifying biomethane produced 6/1/ DATA COLLECTION AND ANALYSIS Data Collection information and analysis will be included in the Final Report 10/14/14 Page 2 of 2 ARV Exhibit A-1 Deliverables City of San Mateo

18 Exhibit B Att B-5 DirectOperating Expense Pre-approved Travel List * Amount Task No. Prime / Sub Name Trip # Who Departure and Destination Trip Purpose Commission Funds 1 City of San Mateo 1-3 PI - Gogo Heinrich San Mateo to Sacramento Kickoff, Project Review and Final Meetings $2,100 1 City of San Mateo 4-9 PI - Gogo Heinrich San Mateo to Sacramento Five Progress Review meetings $3,500 Match Funds * Travel is reimbursed at state rates. Total: $0 $5,600 Equipment** Amount Task No. Prime / Sub Name Description Purpose # Units Unit Cost Commission Funds Match Funds 3 Unison Solutions Unison biogas treatment unit For removing biogas impurities 1 $ 1,150, $ 330, $ 820, City of San Mateo 3 pack fuel storage unit Storage of treated gas for vehicle fueling 2 $ 130, $ 260, City of San Mateo Vehicle conversion/purchase Utilize biomethane produced 54 $ 9, $ 500, Sub #3 - TBD Piping, compressor, dispenser,etc. Distribute biogas to vehicles 1 $ 1,060, $ 1,060, NOTE: This budget will be updated when more detailed information on specific items are identified. No reimbursement will occur until unit cost and number of units are provided. ** See instructions and terms and conditions for equipment definition. Total: $1,390,000 $1,580,000 10/14/14 Att B-5 DirectOperating Expense Page 1 of 2 ARV City of San Mateo

19 Exhibit B Att B-5 DirectOperating Expense Material(s)/ Miscellaneous Costs Amount Task No. Prime / Sub Name Description Purpose # Units Unit Cost Project management, communication, 3 City of San Mateo Misc. costs printing supplies Total: Commission Funds Match Funds 1 $ 7, $7,023 $0 $7,023 Minor Subcontractors Amount Task No. Subcontractor Legal Name Purpose Commission Funds Match Funds Total: $0 $0 10/14/14 Att B-5 DirectOperating Expense Page 2 of 2 ARV City of San Mateo

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47 AGREEMENT WITH KENNEDY/JENKS CONSULTANTS FOR PROFESSIONAL ENGINEERING SERVICES This Agreement, made and entered into this day of, 2014 by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ( CITY"), and Kennedy/Jenks Consultants, a California Corporation, ("CONSULTANT"): Kennedy/Jenks Consultants 303 Second Street, Suite 300 South San Francisco, CA R E C I T A L S: A. CITY desires certain professional engineering services hereinafter described. B. CITY desires to engage CONSULTANT to provide these professional engineering services for the San Mateo Waste Water Treatment Plant Digester Gas / CNG fueling station by reason of its qualifications and experience for performing such services and CONSULTANT has offered to provide the required services on the terms and in the manner set forth herein. NOW, THEREFORE, IT IS AGREED as follows: SECTION 1 - SCOPE OF SERVICES The scope of services to be performed by CONSULTANT under this Agreement is as described in Exhibit A to this Agreement, attached and incorporated by reference. Exhibit A is the Kennedy/Jenks Consultants proposal titled Digester Gas to Vehicle Fuel Project for Professional Engineering Services and dated November 17, SECTION 2 - DUTIES OF CONSULTANT CONSULTANT shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONSULTANT under this Agreement. CONSULTANT shall, without additional compensation, correct or revise any errors or deficiencies in its work. CONSULTANT represents that it is qualified to furnish the services described under this Agreement. CONSULTANT shall be responsible for employing or engaging all persons necessary to perform the services of CONSULTANT. -1-

48 SECTION 3 - DUTIES OF CITY CITY shall provide pertinent information regarding its requirements for the project. CITY shall examine documents submitted by CONSULTANT and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONSULTANT'S work. SECTION 4 - TERM The services to be performed under this Agreement shall commence on or about December 2, 2014 and be completed on or about April SECTION 5 - PAYMENT Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT a fee of pursuant to rates stated in Exhibit A to this Agreement, attached and incorporated by reference. SECTION 6 TERMINATION Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONSULTANT. CONSULTANT agrees to cease all work under this Agreement upon receipt of said written notice. Upon termination and upon CITY'S payment of the amount required to be paid, documents become the property of CITY, and CONSULTANT shall transfer them to CITY upon request without additional compensation. SECTION 7 - OWNERSHIP OF DOCUMENTS All documents prepared by CONSULTANT in the performance of this Agreement, although instruments of professional service, are and shall be the property of CITY, whether the project for which they are made is executed or not. SECTION 8 - CONFIDENTIALITY All reports and documents prepared by CONSULTANT in connection with the performance of this Agreement are confidential until released by CITY to the public. CONSULTANT shall not make any such documents or information available to any individual or organization not employed by CONSULTANT or CITY without the written consent of CITY before any such release. -2-

49 SECTION 9 - INTEREST OF CONSULTANT CONSULTANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement. SECTION 10 - CONSULTANT'S STATUS It is expressly agreed that in the performance of the professional services required under this Agreement, CONSULTANT shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONSULTANT an agent or employee of CITY while providing services under this Agreement. SECTION 11 - INDEMNITY CONSULTANT agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense to the extent caused by CONSULTANT S negligent performance of this Agreement, except those claims arising out of CITY s sole negligence or willful misconduct. CONSULTANT agrees to defend City, its elected and appointed officials, employees, and agents against any such claims. SECTION 12 - INSURANCE CONSULTANT shall procure and maintain for the duration of the contract and three years thereafter (five years for building or major improvements) insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the CONSULTANT, his agents, representatives, employees or subcontractors. MINIMUM SCOPE OF INSURANCE Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG covering CGL on an occurrence basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. -3-

50 2. Automobile Liability: ISO Form Number CA covering any auto (Code 1), or if CONSULTANT has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage. 3. Workers Compensation: as required by the State of California, with Statutory Limits, and Employer s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. 4. Professional Liability (Errors and Omissions): Insurance appropriate to the CONSULTANT s profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate If the CONSULTANT maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions: Additional Insured Status GENERAL LIABILITY/AUTOMOBILE LIABILITY ADDITIONAL INSURED: The City of San Mateo and the Estero Municipal Improvement District, their elected and appointed officials, employees and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the CONSULTANT; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONSULTANT including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the CONSULTANT s insurance (at least as broad as ISO Form CG 20 10, or both CG and CG forms if later revisions used). Primary Coverage For any claims related to this contract, the CONSULTANT s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, and agents. Any insurance or self-insurance maintained by the City, its elected and appointed officials, employees, or agents shall be excess of the CONSULTANT s insurance and shall not contribute with it. Notice of Cancellation Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days prior written notice (10 days for non-payment) has been given to the City. Waiver of Subrogation CONSULTANT hereby grants to City a waiver of any right to subrogation which any insurer of said CONSULTANT may acquire against the City by virtue of the payment of any loss under such insurance. CONSULTANT agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. The -4-

51 City may require the CONSULTANT to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best s rating of no less than A:VII, unless otherwise acceptable to the City. Claims Made Policies (note should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage: 1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. 2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the CONSULTANT must purchase extended reporting coverage for a minimum of five (5) years after completion of work. Verification of Coverage CONSULTANT shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. SECTION 13 - NONASSIGNABILITY Both parties hereto recognize that this Agreement is for the personal services of CONSULTANT and cannot be transferred, assigned, or subcontracted by CONSULTANT without the prior written consent of CITY. SECTION 14 - RELIANCE UPON PROFESSIONAL SKILL OF CONSULTANT It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in the professional calling necessary to perform the work agreed to be done under this Agreement and that CITY relies upon the skill of CONSULTANT to do and perform the work in the most skillful manner, and CONSULTANT agrees to thus perform the work. The acceptance of CONSULTANT's work by CITY does not operate as a release of CONSULTANT from said obligation. -5-