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x.18 -3 <br />MEMORANDUM OF UNDERSTANDING <br />Between <br />City of Redwood City (hereinafter "City") <br />and <br />Cohen Ventures, Inc., a California corporation dba Energy Solutions (hereinafter "Energy <br />Solutions ") <br />Background <br />The purpose of this MOU is to provide an agreement whereby City may provide funds to <br />Energy Solutions on a prospective basis for the sole purpose of disbursing rebates to <br />eligible City customers as part of a commercial washer rebate program being <br />implemented by Energy Solutions on behalf of the California Public Utilities <br />Commission (CPUC). <br />At the direction of, and with funding from the CPUC, Energy Solutions will be managing <br />and implementing a commercial clothes washer rebate program (LightWash) targeted at <br />certain multi - family residential and commercial customers who purchase and install <br />qualifying high - efficiency commercial washers at addresses within the service territories <br />of Pacific Gas and Electric Company, Southern California Gas Company or San Diego <br />Gas and Electric Company, which addresses are also served by water agencies and cities <br />that have agreed to participate in the LightWash program. The LightWash is designed to <br />integrate City or city promotion of commercial washers. Participation by water agencies <br />or cities is manifested primarily by consent to fund a portion of rebate, the amount of <br />which will be determined by each City or city. An additional funding from the CPUC <br />will allow Energy Solutions to add to the water rebate money to provide a larger total <br />rebate check. The program will be operating from approximately July 2002 through <br />December 2003. <br />With funding from CPUC, Energy Solutions will provide centralized program operations, <br />including marketing, rebate application review and processing, payment processing, <br />quality control and site inspection services. City authorization will be obtained prior to <br />disbursing rebates to program applicants. Subsequently, Energy Solutions will issue <br />combined rebate checks to customers. All funds provided by City will be passed through <br />to customers or, if unspent at the end of the program, returned to the City. Energy <br />Solutions will not commingle the City funds with its own corporate monies. <br />' Pacific Gas and Electric Company is the contract administrator acting on the behalf of the CPUC, but is <br />not involved in the operation of the LightWash program. <br />Page 1 of 4 Energy Solutions/l.ighiWash <br />