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Energy Services Agreement 4 04/21/2026 obtain the PTO (Permission to Operate) from the City’s utility. The monitoring equipment provider will provide monitoring hosting services for the first five years of operation. City warrants that they hold title to the installation site and agree to the solar installation on that site. Terms applicable to the solar scope are as follows: a. Interconnection Agreement – means an agreement between the City and a particular utility involved for interconnection of the solar output to the electrical grid. b. Interconnection Equipment – all equipment (including wiring and conduit and metering for net metering) on the City side of the main service meter to enable proper interconnection of the solar system to the grid. Design – Subject to Council approving Program Implementation, ESCO will complete final elements of design and engineering such as land surveys, geotechnical studies and preparation of design documents and drawings required to prepare submittal packages, obtain permits and procure equipment. ESCO shall prepare the design submittals (prepared by qualified individuals). The submittal shall be submitted to City for approval. City shall provide approvals within fifteen business days from receipt. The ESCO shall not proceed with work until approval is granted by the City. Unforeseen Site Conditions – Within 10 business days of discovery, ESCO will notify City in writing of (a) subsurface or latent physical conditions at the site differing materially from those described in any contract or City documentation that will affect the price of delivery of the Work. Should such conditions arise, the City will have several options to consider, including identifying an alternative location for the affected scope (e.g. moving Solar PV array) or removing the scope. 9. INVOICING & PAYMENTS. ESCO may invoice the City for any equipment and/or materials installed at a job site. City shall have no obligation to pay for equipment or supplies unless and until unconditional releases from all suppliers of the same have been provided to the City. Except for amounts in dispute, the City agrees to pay ESCO amounts invoiced upon receipt of invoice for completion of Work. Except for amounts in dispute, City shall retain 5% from all payments as retention in accordance with Public Co ntract Code Section 7107. Final Payment, including retention withheld, will be due in accordance with Public Contract Code 7107, or as otherwise provided by law. If ESCO’s undisputed invoice is not paid within 30 days of its receipt, it is delinquent and ESCO may add one percent (1%) per month interest onto delinquent amounts. 10. SUBCONTRACTORS. ESCO shall submit to the City in writing a list of any subcontractors engaged by the ESCO for any Work for the City’s prior written approval, not to be unreasonably withheld. ESCO agrees to bind every subcontractor by the terms of this Contract, including, without limitation, indemnification, insurance, business license and warranty requirements. ESCO shall be fully responsible to City for the Work of its subcontractors and persons directly or indirectly employed by them. The Contract shall not create any contractual relationship between any subcontractor and City. ESCO and all subcontractors performing the work shall not employ any person who is unfit or unskilled in assigned Work. ESCO and/or subcontractor shall dismiss any person whom City deems incompetent or unfit 11. MATERIALS. All materials shall be new, in compliance with all applicable laws and codes, and shall be covered by a manufacturer’s warranty, if appropriate. If the materials or equipment included in this Agreement become temporarily unavailable, the ESCO shall immediately notify the City in writing of the unavailability and the time for performance of the Work shall be extended to the extent thereof with the City’s written consent. In the case of permanent unavailability, ESCO Docusign Envelope ID: 2FACAA06-C000-8E3B-8363-DD2D556A0D51Docusign Envelope ID: 8C132635-A597-8F5D-8082-3EB7B8AE19BF