2.5. ERMUSR 01-13-15 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key Accounts
John Dietz—Chair Manager
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
January 13, 2015 2.5
SUBJECT:
Tri-County Action Program Services Agreement
BACKGROUND:
State Statute requires ERMU to spend .2% ($21,000)of residential gross operating revenue on
programs specifically designed for low-income eligible customers. To be eligible for the
programs customers must earn less than 50%of State Median Income or 110% of Federal
Poverty,whichever is greater, effective October 1st, 2014 through September 30th, 2015.
Tri-County Action Program (Tri-CAP) is the federally designated administrator for Sherburne,
Benton, and Stearns counties. In an effort to more effectively meet the spending requirements
for this segment, ERMU has developed a partnership with Tri-CAP. The Weatherization
Assistance Program that is federally funded through the U.S. Department of Energy works to
permanently reduce energy bills while protecting the health and safety of the family members.
DISCUSSION:
The Service Agreement with Tri-CAP will allow ERMU to pay Tri-Cap up to $2,000 per home
or rental. The maximum expense for 2015 for this Service Agreement is not to exceed a total
expense of$15,000. ERMU makes contributions to the weatherization of homes or rentals that
will primarily be for measures that permanently improve the electric efficiency of the home or
rental.
The Service Agreement will be an additional tool used to reach the low-income customers of
ERMU. Tri-Cap is adding additional staff and will be able to dedicate more resources to serving
clients in the Elk River area. Services performed under this Agreement include, but are not
limited to; audits, appliance replacements, air conditioning tune-ups, air sealing, insulation, light
bulb conversions to CFL or LED, and customer education. ERMU has required that Tri-Cap
confirm all work to be done in a residence or rental prior starting to confirm they are a customer i
of ERMU and funds are available.
Eri
P O w E l E l 1 1
Page 1 of 2 NATURE
e
Reliable Public
Power Provider P()WERE]) T o S E R V E
80
ACTION REQUESTED:
Approve and execute the Services Agreement with Tri-County Action Program for 2015.
ATTACHMENTS:
• 2015 Tri-Cap Services Agreement
Por Page 2 of 2 NATURE R
Power Provider P O W E R E D T o S E R V E
81
SERVICES AGREEMENT
THIS SERVICES AGREEMENT ("Agreement")is made on , 2015 by and
between Tri-County Action Program, (hereinafter known as "CAP"), a Minnesota nonprofit
Corporation, (1210 231"d Avenue S., P.O. Box 683, Waite Park, MN 56387-0683, and Elk River
Municipal Utilities (hereinafter known as"ERMU"), 13069 Orono Parkway, P.O. Box 430, Elk
River, MN 55330-0430.
WHEREAS, ERMU's Conservation Improvement Program (hereinafter known as "CIP")has
funding available to provide energy efficiency, health and safety related services to customers of
ERMU that are eligible based on the qualifying criteria of the Weatherization Assistance and the
Energy Assistance Programs administered by the Minnesota Department of Commerce (each a
"Program").
WHEREAS, CAP is an experienced provider of services under the Programs and is willing to
provide to ERMU one or more of the services described in Exhibit A("Services"), subject to the
terms and conditions of this Agreement,
NOW THEREFORE, the parties agree as follows:
1. Performance of Services
CAP shall perform Services upon receipt of approval by ERMU identifying the Services
to be performed and the funding associated with the approved Services. CAP understands
that CIP funds can be accessed by more than one provider and, due to funding
limitations, CIP funds are made available on a first-come, first-serve basis. Accordingly,
prior approval (written, verbal, or email) of the Services to be performed and funding for
the Services to be performed by ERMU is mandatory prior to CAP commencing
performance.
The contact information for prior approval of funds:
Tom Sagstetter
Conservation and Key Accounts Manager
13069 Orono Parkway
Elk River, MN 55330
(763) 635-1332
is ag stetter(a)elkriverutiliti e s.c om
Upon receipt of approval to proceed, CAP and its representatives shall at all times
perform the Services in a safe and professional manner, and shall comply with all
applicable laws, regulations and requirements related to the Programs.
2. Compensation
1
82
CAP will be compensated for completed Services as outlined in the attached Exhibit A
Scope of Services/Charges and in conformance with the prior approval received from
ERMU. An Administration Fee of 12 percent of the total actual cost of the services will
be paid to CAP by ERMU if the comply with all requirements of ERMU. ERMU will not
be obligated to make payment without written verification of expected energy savings.
At the option of ERMU, ERMU may conduct inspections of the Services prior to making
payment to CAP.
3. Termination
This Agreement can be terminated by either party upon thirty(30)days prior written
notice. If either party chooses to terminate this Agreement, it is agreed that the CAP will
received a payment for the portion of the Service(s) completed in compliance with this
Agreement, as determined by ERMU.
4. Length of Agreement
This Agreement shall automatically expire on December 31, 2015, or upon completion of
the prior approved Services,whichever comes first.
5. Relationship of Parties
CAP is an independent contractor and not an employee of ERMU and has the right and
responsibility to manage and control CAP's employees, representatives and agents in the
performance of the Services under this Agreement. CAP shall exercise its independent
professional judgment in the performance of the Services.
6. Good Faith
CAP acknowledges and agrees that it has not and will not transfer anything of value to
any employee, agent or representative of ERMU where such was or is transferred with
the intent and/or understanding of gaining favorable treatment with respect to this
Agreement or the Services.
7. Insurance
CAP shall obtain and maintain such insurance as shall protect CAP, its employees and
agents from claims that may arise due to the negligence of CAP in connection with the
performance of the Services. CAP waives any rights to recovery from ERMU for any
injuries that CAP, CAP employees, or CAP agents may sustain while performing the
Services that are the result of the negligence of CAP, CAP employees or CAP agents.
CAP shall obtain and maintain Workers Compensation Insurance as required by
Minnesota Workers Compensation laws.
8. Indemnification
2
83
CAP agrees to indemnify, defend and hold ERMU harmless from all claims, actions,
damages, losses, expenses, fees, including attorney fees, costs, and judgments that may
be asserted against ERMU, or incurred by ERMU, due to the acts or omissions of CAP,
CAP employees, and CAP agents in connection with the performance of the Agreement
and Services.
9. Return of Records and Other CAP Property
Upon termination or expiration of this Agreement, CAP shall deliver to ERMU all
records, notes, data,memoranda models and equipment of any nature which are in CAP
possession or under CAP control and that are ERMU property or relate to ERMU
business.
10. Notices
All notices required or permitted under this Agreement shall be in writing and shall be
deemed delivered when delivered in person, confirmed receipt of electronic notification,
or deposited in the United States mail,postage prepaid, addressed as follows:
CAP: Tri-County Action Program
ATTN: Gene Wyttnback
1210 23rd Avenue S.
P.O. Box 683
Waite Park, MN 56387-0683
Gene.wyttnback@tricap.org
ERMU Name: Elk River Municipal Utilities
ATTN: Tom Sagstetter
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330-0430
tsagstetter @elkriverutilities.com
Either party may change such addresses from time to time by providing written notice in
the manner set forth above.
11. Entire Agreement
This Agreement contains the entire agreement of the parties and there are no other
promises or conditions in any other agreement whether oral or written. This Agreement
supersedes any prior written or oral agreements between the parties.
12. Amendment
This Agreement may be modified or amended, if the amendment is made in writing and
is signed by both parties.
3
84
13. Severability
If any provision of this Agreement shall be held to be invalid or unenforceable for any
reason, the remaining provisions shall continue to be valid and enforceable. If a court
finds that any provision of this Agreement is invalid, or unenforceable,but that by
limiting such provision it would become valid and enforceable, then such provision shall
be deemed to be written, construed, and enforced as so limited.
14. Confidentiality
All data, findings and the final reports are ERMU property. CAP will not share
information with any other sources without prior permission from ERMU.
15. Waiver of Contractual Right
The failure of either party to enforce any provision of this Agreement shall not be
construed as a waiver or limitation of that party's right to subsequently enforce and
compel strict compliance with every provision of this Agreement.
16. Applicable Law
The laws of the State of Minnesota shall govern this Agreement.
Dated this day of , 2015.
(Tri-County Action Program) (Elk River Municipal Utilities)
By: By:
Troy Adams
Printed Name Printed Name
General Manager
Title Title
By:
John J. Dietz
Printed Name
Utility Chair
Title
4
85
SCOPE OF SERVICES/Charges
(ERMU)
ERMU will provide funding to CAP to provide services and materials in residential dwellings of
income eligible customers of ERMU. The services and materials provided under this Agreement
should contribute to making the residence safer and healthy for the residents while increasing the
energy efficiency. Total costs may include but will not be limited to the measures included in
this Exhibit A. Additional measures may be added with prior approval by both ERMU and CAP.
Total cost of the Services (labor, materials, and administration fees)per residence will not
exceed$2,000.00 or a cumulative annual amount of$15,000.00. CAP will assist customers, as
needed, with any paperwork related to warranties associated with any of the Services.
Weatherization:
CAP will provide weatherization services. In homes heated with delivered fuels (propane, fuel
oil)weatherization energy savings will be calculated and converted to kWh by CAP based on the
accepted calculation that one kWh is equivalent to 3,412 Btu's. In cases where the residential
space heat is provided by natural gas the percentage of the total heating and cooling energy must
be determined. Determination of the percentage is the responsibility of CAP weatherization
personnel. ERMU will reimburse CAP no more than$1,500.00 per residence for weatherization
as part of the Service Agreement.
Residence heated with natural gas example:
CAP has determined that 25%of the energy to heat and cool the residence is provided by
electricity including plug in space heaters, window air conditioners, central air conditioners, fans,
and air source heat pumps. The total cost of the weatherization of the residence is $2,000.00.
ERMU would pay$500.00 for the weatherization.
Electric Water Heater:
CAP will replace an existing electric water heater with a new high efficient electric water heater
that has a minimum energy efficiency factor of.91 or higher. Existing electric water heaters must
be recycled. Participation in the Electric Thermal Storage water heating program is strongly
encouraged. Fuel switching is not allowed. ERMU will reimburse CAP up to $1,000.00 per
water heater.
Clothes Washer:
CAP will coordinate the purchase, delivery, and installation of an ENERGY STAR®rated
clothes washer with a water factor of 5.5 or less. Removal and recycling of the existing clothes
washer is required. ERMU will reimburse CAP up to $750.00 per clothes washer.
Dehumidifier:
CAP will coordinate the purchase, delivery, and installation of an ENERGY STAR®rated
dehumidifier. Removal and recycling of the existing dehumidifier is required if applicable.
ERMU will reimburse CAP up to $250.00 per dehumidifier.
5
86
Room/Window Air Conditioner:
CAP will coordinate the purchase, delivery, and installation of an ENERGY STAR rated
window/room air conditioner. Removal and recycling of the existing window/room air
conditioner is required. The ERMU will reimburse CAP for up to $500.00 per window/room air
conditioner with a maximum of two per home.
Refrigerator:
CAP will coordinate the purchase, delivery, and installation of an ENERGY STAR rated
replacement refrigerator. Removal and recycling of the existing refrigerator is required.
Replacement refrigerator must be of similar size to the one being replaced. ERMU will
reimburse CAP up to $850.00 per refrigerator.
Incandescent Light Bulbs:
CAP will replace up to 10 incandescent light bulbs with an equivalent sized compact fluorescent
light(CFL) or light emitting diode (LED)that is energized an average of over four hours per day.
The CFL or LED must be ENERGY STAR rated. ERMU will reimburse CAP up to $2.00 per
CFL and$5 per LED.
Microwave Oven:
CAP will coordinate the purchase and delivery of a an ENERGY STAR rated counter top
microwave oven, if none are present, or where an electric range, electric cook top or electric wall
oven is present. ERMU will reimburse CAP up to $175.00 per counter top microwave oven.
Reimbursement does not include the replacement of existing microwave ovens
Central Air Conditioning Tune-up:
If an existing central air conditioning system is present, CAP will provide for a certified service
technician to perform a tune-up of the unit. The Central air conditioning Tune-Up service will
include the following:
• Cleaning of the condenser coil
• Check coolant level and add up to two pounds of coolant, (if needed)
• Check coolant pressure
• Check indoor filter
• Check belt and lube motor, (if needed)
• Test all controls
• Blow out drain lines
• Perform a visual inspection of the system
• Educate the homeowner on proper system operation
The ERMU will reimburse CAP up to $185.00 per tune up.
6
87
Note: Any additional repair costs beyond the scope of the Central A/C Tune-Up procedure will
be the responsibility of the homeowner.
Other Energy Efficiency Measures:
CAP may coordinate the purchase, delivery, and installation of a variety of other low-cost energy
efficiency measures that are deemed appropriate. These energy efficient measures could include
but would not be limited to the following items:
• water pipe insulation
• water heater insulation
• window film
• Caulk
• weather stripping
• energy efficient shower heads
• faucet aerators
• water temperature gauges
• furnace filters
• minor structural repairs (not to exceed$200.00)
• motion sensors or timers on exterior fixtures
• ENERGY STAR®rated LED night light
ERMU will reimburse CAP up for these energy savings measures on a case-by-case basis.
7
88
Exhibit B: Sample Worksheet For Energy Saving and Costs
EXillElT 8
Wbrisheet
Gent
Account# Name
Requested Approval Completion
Date: Date: Date
(Cooperative)will fund the energy cooservatiaa measures listed baba-. Prior approval from(Cooperative)fix funds is
mandatory. (Agency}agrees to supply(Cooperative)with total kWh savings for the client. Funds will be disbursed upon
wrtiteraverification of kWh saved.
kWh Actual Coat
Savings
0%of weatherizatiai up to SX,XXX maximum per home The
percentage listed reflects the percetage of the total home heating
system that is heated using electric heat(1 kWh=3,412 BTUs)
Electric water heater r eplacenazt Must be.90 energy factor.
Up to 51,000 maximum_ (332 kWh savings/water heater)
I ENERGY STARS clothe,washer replaced with Energy Star model. Up to$850
maximum. (158 kWh savings/clothes washer)
ENERGY STAR room air conditionier. Up to SS00 per unit with r e rcling costs
with recycling costs.Limit hvo units per client
With Rewcling 686 kWhs units =
Nov Purchase SO kWhx units =
ENERGY STAR refrigerator replaced with Energy Star model of equivalent size. Up
toS1,000 maximum. (927 kWh savings/refriger ata)
Replacemert of incandescent light bulbs with up to five Energy Star CFLs installed.
Up to S20 maximum.
39 kWh a units =
Addition of new microwave oven if one is not presert must have an electric
range,ccoktop,or oven present Up to S200. (682 kWh sayings/men}
ICentral A/C tune-up. Up to$186 maximum plus am-necessary repair,
not to weed S5O_ (106 kWh savings/tune-up)
Energy Efficia cy Kit: (770 kWh savings per kit)
Inches Faucet aerators,hot water temperature card,water efEcie t
showerhead,and talon tape. Other terns upon regsest;caulk,door sweep,LED
night light,pipe insullation,cutlet gaskets,outlet safety caps.
770 kWh x` 0 units =
Other Efficiency Measures and labor.(1 kWh=3,412 BTUs)
TOTALS 0 $ -
Administranon Fee I 1036 I 5 -
TOTAL FUNDED AMOUNT.
8
89
Exhibit C: Sample Summary Report From NEAT Energy Saving and Costs
,, NEAT Energy Savings
Agency Test Agency State MN Run On 4/9/2010 2:06:18 PM Ru niD 1270839978
Client ID 551400 . Version 18.6.0.7(3/172010) I AuditID 30552
Audit Name 30552 Audit Date 41920102:
Client Name Ismel,B -J Auditor Bjones
Weather File MINNAPMN.WX Setup Library Name ARRA Setup library for 2009-2010
Comment
Annual Energy and Cost Savings
Index Recommended Components Heating Cooling BaseLoad Total
Measure (MMBtu) ($) (kWh) ($) (kWh) ($) (MMBtu)
1 Infiltration Recictn 4.2 46 -2 0 0 0 4.2
2 High Eff Furnace HS1 8.8 97 0 0 0 0 8.8
3 User-Spec Ceiling R Al 5.9 65 20 2 0 0 6.0
4 DWH Pipe Insulation 0.0 0 0 0 242 9 0.8
5 Low Flow Showerheads 0.0 0 0 0 1565 59 5.3
6 Lighting Retrofits LT1,LT2 0.0 0 0 0 451 36 1.5
7 Floor Ins.R-19 Fl 29.3 323 -118 -9 0 0 28.9
8 Wall insulation WL1 11.7 129 30 2 0 0 11.8
9 Refrigerator Rplcmnt 0.0 0 0 0 866 69 3.0
10 Replace A/C AC1 0.0 0 305 24 0 0 1.0
Energy Saving Measure Economics
Index Recommended Components Measure Measure Measure Cumulative Cumulative
Measure Savings(S/yr) Cost($) SIR Cost($) SIR
1 InfltrationRedctn 46 500 0.8 500 0.8
2 High Eff Furnace HS1 97 3100 0.4 3600 0.4
3 User-Spec Ceiling R Al 67 1166 0.9 4766 0.6
4 DWH Pipe Insulation 9 2 50.6 4768 0.6
5 Low Fbw Showerheads 59 30 24.6 4798 0.7
6 Lighting Retrofits LT1,LT2 36 51 4.9 4849 0.8
7 Floor Ins.R-19 Fl 313 1184 4.2 6033 1.5
8 Wall Insulation WL1 132 1307 1.6 7341 1.5
9 Refrigerator Rplcmnt 69 629 1.3 7970 1.5
10 Replace A/C AC1 24 295 1.0 8265 0.0
11 CO Monitor is Needed 0 66 0.0 8331 0.0
12 Smoke Detector is 0 27 0.0 8358 0.0
Needed
Audit Name: 30552 Client: 551400 Date: 4/9/2010 Page 1 of 1
9
90