INTERGOVERNMENTAL AGREEMENT # 4600005577

This is an Agreement between the City of Portland, Office of Sustainable Development (“OSD”) and Multnomah County (“COUNTY”).

I. PURPOSE:

The purpose of the Intergovernmental Agreement (“IGA”) is to establish the responsibilities of OSD and County to provide weatherization and appliance replacement services at multi-family properties housing lower-income tenants. The funds provided under this agreement will be used to bring comprehensive energy services to low-income apartments

Pursuant to the specific terms set out below, the County will pay OSD to manage multi-­family weatherization projects for energy conservation work for 75-200 apartment units located within Multnomah County. OSD is responsible for finding eligible units and confirming arrangements with the unit’s owner to conduct the weatherization work. County funds will be used to provide reimbursement, through OSD, to Owners who conduct the specified work. In addition, OSD will receive compensation as set out below, from the County for administering the program.

II.  OSD REQUIREMENTS:

1.  OSD will conduct a competitive Request for Interest among residential property owners and select the properties to be offered the services under the program, subject to the following conditions:

A.  All measures installed shall qualify at 70 cents or less per kilowatt-hour savings as determined by REM RATE. As used in this IGA, REM Rate is a residential energy analysis program that calculates heating, lighting and appliance energy loads and predicts energy saving of energy conservation measures installed in kilowatt-hour savings.

B.  All apartment residents will be asked to complete Multnomah County’s Weatherization application. (Attachment A)

C.  Sixty-six percent of the units must be income qualified using Multnomah County’s Weatherization Program income guidelines.

D.  One or more opportunities to add insulation are desired where the existing insulation condition is: Attic R-17 or less, Floor at R-0 and I or walls at R-0.

E.  Weatherization measures may include upgrading single glazed metal windows and sliding glass doors with new vinyl replacement windows and doors.

F.   The program should provide opportunities to replace incandescent lamps with screw-in compact fluorescent lamps.

G.  This program will assess the opportunity to replace high flow showerheads (2.5 or higher g.p.m.) with low-flow (2.0 g.p.m.) showerheads.

H.  All work must be installed to Multnomah County Weatherization Specifications (Attachment B)

I.  All work must pass Multnomah County inspection.

J.  Weatherization contractors shall be given equal opportunity to bid on all projects. (Attachment D)

K.  Installed measures must not exceed 70 cents per kilowatt-hour cost according the REM RATE.

L.  OSD may also include, at its discretion:

1.  Foam core insulated entry doors.

2.  Energy Star (or equivalent) refrigerators to replace high energy use, older models.

3.  Line-voltage thermostat replacement on systems with wall mounted thermostats.

4.  Lowering water heater tank temperatures .

5.  Air sealing strategies.

6.  Additional measures as identified.

2.  Optional Solar Thermal Pilot

OSD may identify a large residential structure (house) to demonstrate domestic solar water heating applied to low-income housing. The proposing facility must have:

A.  an unobstructed south facing roof (i.e. not blocked by trees or structures),

B.  a roof with at least 15 years’ useful life,

C.  a larger number of residents, and

D.  electric water heating.

Additional measures (e.g., compact fluorescent lighting and low-flow showerheads) will be installed along with the solar water heating installation.

3.  OSD will provide direct assistance to the owner to solicit bids and to make provision for quality installations that meet County specifications. OSD will ensure that all properties selected for services under this agreement will comply with the following requirements.

A.  OSD will facilitate the signing of a Regulatory Agreement with Multnomah County, under which the owner agrees to rent at least 50 percent of the units in the complex to households with incomes of 60 percent or less of Statewide median income level for a period of not less than ten years.

B.  Using County funding provided by this IGA, OSD will offer funds to offset up to 65% of the installed cost of approved measures. The owner is required to contribute all remaining installed costs.

C.  OSD will develop and execute an Agreement between OSD and the Property Owner that states the requirements for participation, including contractor specifications, inspection and cost sharing.

D.  OSD’s Owner Agreement will address the County’s requirement for tenant roll documentation of each unit’s household income and numbers of residents on or about June 1^st of each year.

E.  OSD will facilitate the issuance by the Property Owner of a request for bids including Multnomah County’s Weatherization Program Specifications. OSD will facilitate a pre-bid meeting with prospective contractors to encourage competitive bidding and high quality contractor performance. OSD will arrange for in-progress inspections as needed.

F.  OSD will secure the owner’s commitment to help collect tenant income data. This will involve significant involvement and time from a representative of the property owner, such as the on-site manager. OSD will not compensate the owner for this assistance.

G.  OSD will assist the owner in making application for Oregon’s Business Energy Tax Credit for 35% of project cost.

H.  Prior to entering into any agreement with a Property Owner, OSD will document tenant income and ensure that the complex meets the income guidelines of Multnomah County’s Low Income Weatherization Program described in subsection ll.3.A. above. If an owner contributes funding to each unit being weatherized as required under this IGA, OSD will only need to get 50% of the residents of the complex to meet the income guidelines of Multnomah County’s Low Income Weatherization Program (LIEAP).

I.  Property owners that receive funding from OSD are required to complete installation of measures by June 31, 2006.

J.  When found applicable by OSD, owners will be asked to commit to installing low-flow showerheads, turn down thermostat settings on electric water heaters, install up to 10 screw-in compact fluorescent lamps per unit and replace wall-mounted thermostats . OSD will provide these materials and negotiate a per unit payment to the property owner for staff labor to install these energy devices,

K.  When found applicable by OSD, OSD will require owners to provide staff to install and remove energy-use measuring devices, then record energy use data from a sample of existing refrigerators. This information will be used to determine which refrigerators are good candidates for replacement. OSD will provide the monitoring devices and training to collect data.

L.  OSD will secure owner’s commitment to facilitate 24-hour notice prior to contractor access to individual units to install energy measures and devices in the individual units.

M.  OSD will secure the owner’s commitment to participating and facilitating Multnomah County/OSD tenant education services when requested.

Ill.  RESPONSIBILITIES OF COUNTY:

The County agrees to:

1.  Perform REM RATE energy analysis on properties identified by OSD as potential properties for the program.

2.  Review and approve weatherization projects prior to OSD signing a participation agreement with property owner.

3.  Provide inspections and consultation with installing contractors during the installation period upon OSD request.

4.  Inspect the completed work within 10 working days of OSD or contractor notification.

5.  Subject to the provisions of Section V., make payments to OSD within 30 days of receiving an invoice from OSD.

6.  Consult with OSD on program administration as questions arise.

7.  Consent to OSD claiming and receiving compensation for carbon pollution credits resulting from the projects.

8.  Consent to the property owner making application for the Business Energy Tax Credit.  

9.  Monitor weatherization contractor or subcontractor selection and give property owner approval of the selection before the Property Owner awards the bid.

10.  Pay OSD, as provided in Section VII below, up to $170,462 in ECHO Senate Bill 1149 (1999) PGE program dollars for installed costs of approved measures. The initial allocation for program dollars will be $31,888.

Pay ODS $10,000 in ECHO Senate Bill 1149 (1999) PGE program administration dollars for program administration.

11.  REM RATE shall be completed by County staff on each property and will be the basis for program cost effectiveness and funding.

12.  County must approve properties and measures to be installed prior to payment of any County funds for measures’ installed cost.

IV.  SCHEDULE

1.  OSD will submit County an invoice for all costs incurred prior to June 30, 2006.

2.  If this IGA is granted an extension past June 30, 2006, OSD will submit invoices for costs incurred after June 30 at least once a month or on such other schedule as the parties may agree.

V.  PAYMENT TERMS - ALL CONTRACTS

1.  Cost Reimbursement

County will reimburse OSD for services provided in the following three components.

A.  Weatherization Measures Direct Cost

The grant to the property owner will be billed as a direct pass through payment originating at the County, paid to OSD, then from OSD to the property owner. OSD will not add overhead, mark-up or other charges to this portion of the payment.

B.  OSD’s Program Delivery Costs

OSD Program Delivery costs representing OSD labor and overhead to complete “Section II. OSD Requirements” of this document will be calculated by multiplying the total accepted contractor bid(s) by twenty five percent.

In addition to the program delivery costs specified in V.1.B above, OSD will be paid $10,000 for administering the program. $10,000 will be included in one of OSD's invoices after energy savings and program delivery costs at 70 cents per kilowatt

2. Chargeable Expenditures

OSD may bill expenditures to the County under this IGA only in the expenditures are:

A.  For services performed or obligations incurred under this IGA;

B.  Performed in conformance with all applicable state and federal regulations and statutes; and

C.  Not in excess of the maximum amount payable under this IGA.

3.  Reporting Requirements

A.  OSD will require the Property Owner to compile an annual Tenant Roll report for the weatherized properties and send it to Multnomah County on or about June 1, of each year.

B.  Notwithstanding any other payment provision of this IGA, failure of OSD or the Property Owner to submit required reports when due, may result in the withholding or reducing payments under this IGA. Such withholding or reducing payment may continue until OSD submits required reports, or establishes, to COUNTY’S satisfaction, that such failure arose out of causes beyond the control and without the fault or negligence of IGA.

4.  Recovery of Funds

Any COUNTY funds spent for purposes not authorized by this IGA shall be deducted from future payments or refunded to COUNTY at COUNTY’S discretion. Payments by COUNTY in excess of authorized amounts shall be deducted from payment or refunded to COUNTY no later than thirty (30) calendar days after IGA expiration or after notification by COUNTY. OSD shall be responsible for any prior IGA overpayments and unrecovered advances provided by COUNTY. Repayment of prior period obligations shall be made by IGA in a manner specified by COUNTY. Except when OSD is a city, county, or public school district, COUNTY shall be entitled to the legal rate of interest for late payment from the date such payments become delinquent, and in case of litigation, to reasonable attorney’s fees.

5.  Refunds

Any refunds to the state or federal government resulting from state (OAR 309-013-0120 through 0220) or federal audits shall be the sole responsibility of OSD. OSD agrees to make all such repayments within twenty working days of receipt of formal notification by COUNTY of disallowance of IGA expenditures, or fees.

6.  Protection Against Loss or Damages

COUNTY shall have the right to withhold from payments due IGA such sums as are necessary in COUNTY’S sole opinion to protect COUNTY from any loss, damage, or claim which may result from OSD’S failure to perform in accordance with the terms of this IGA or failure to make proper payment to suppliers or subcontractors

7.  Request for Payment

OSD shall submit all final requests for payment or an estimate of the final requests for payments no later than June 30th 2004 or the next working day after June 30th, 2004 to the Department of School and Community Partnerships (DSCP) unless otherwise agreed by the COUNTY.

8.  Document Control

COUNTY shall be responsible for negotiating, creating and executing encumbering documents enforcing the affordability requirements for the 10-year performance period. COUNTY shall properly record such encumbrance documents and safely store and manage such documents. COUNTY will manage future transactions affecting the regulatory interest taken in the property.

VI.  TERM

The term of this IGA shall be from July 1, 2005 to June 30, 2006. This IGA may be renewed or amended by approval of both parties.

VII.  PROJECT MANAGER

A.  Project Manager for the City shall be the Director of OSD. The Director is hereby authorized to give all notices and take all actions as are called for in this agreement, including the execution of subsidiary grant agreements with property owners and the renewal or amendment of this agreement for amounts not to exceed $500,000.

B.  The Project Manager for the County shall be the Energy Program Lead, who is authorized to take all action necessary to implement the County’s obligations under this IGA.

VIII.  TERMINATION

This agreement may be terminated by either party upon thirty (30) days’ written notice.

IX.  INDEMNIFICATION

Subject to the conditions and limitations of the Oregon Constitution and the Oregon Tort Claims Act, ORS 30.260 through 30.300, COUNTY shall indemnify, defend and hold harmless OSD from and against all liability, loss and costs arising out of or resulting from the acts of County, its officers, employees and agents in the performance of this agreement. Subject to the conditions and limitations of the Oregon Constitution and the Oregon Tort Claims Act, ORS 30.260 through 30.300 OSD shall indemnify, defend and hold harmless COUNTY from and against all liability, loss and costs arising out of or resulting from the acts of CONTRACTOR, its officers, employees and agents in the performance of this agreement.

X.  INSURANCE:

Each party shall each be responsible for providing worker’s compensation insurance as required by law. Neither party shall be required to provide or show proof of any other insurance coverage

XI.  ADHERENCE TO LAW:

Each party shall comply with all federal, state and local laws and ordinances applicable to this agreement.

XII.  NON-DISCRIMINATION:

Each party shall comply with all requirements of federal and state civil rights and rehabilitation statutes and local non-discrimination ordinances.

XIII.  ACCESS TO RECORDS:

Each party shall have access to the books, documents and other records of the other which are related to this agreement for the purpose of examination, copying and audit, unless otherwise limited by law.

XIV.  SUBCONTRACTS AND ASSIGNMENT:

Neither party will subcontract or assign any part of this agreement without the written consent of the other party.

XV.  THIS IS THE ENTIRE AGREEMENT:

This Agreement constitutes the entire Agreement between the parties. This Agreement may be modified or amended only by the written agreement of the parties.

This Agreement includes this document, Intergovernmental Agreement, and:

MULTNOMAH COUNTY, OREGON CITY OF PORTLAND

BY:________________________________ BY:__________________________

DIRECTOR, DEPARTMENT OF SCHOOLS  MAYOR

AND COMMUNITY PARTNERSHIPS

__________ __________

DATE DATE

Reviewed:  Approved as to form:

____________________________________  __________

AGNES S OWLE, COUNTY ATTORNEY  DATE

ACTING FOR MULTNOMAH COUNTY

_____________________________________

DIANE M. LINN, CHAIR

BOARD OF COMMISSIONERS

___________

DATE