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HomeMy WebLinkAboutResolution - 2004-R0217 - Contract For Southwestern Public Service Company's Low Income Program - 05_06_2004Resolution No. 2004-RO217 May 6, 2004 Item No. 28 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Contract, by and between the City of Lubbock Community Development Department and Texas Department of Housing and Community Affairs for the Southwestern Public Service Company's Low- income Program (SPS LIP) Weatherization Assistance Program, and all related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 6th day of /lay //, 2004. MAYOR ATTEST: Re ecca Garza, City Secretary APPROVED AS TO CONTENT: Nancy Han y Commun" Developm nt Manager APPROVED AS TO FORM: s ssist tto gs/ccdocs/CD-Res-SPS Co Weatherization Assist Prog Apri15,2004 Resolution No. 2004—RO217 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NUMBER: 404049 FOR THE SOUTHWESTERN PUBLIC SERVICE COMPANY'S LOW-INCOME PROGRAM (SPS LIP) SECTION 1. PARTIES TO CONTRACT This contract is made by and between the Texas Department of Housing and Community Affairs, an agency of the State of Texas (hereinafter the "Department-") and CITY OF LUBBOCK (hereinafter the "Subrecipient"). SECTION 2. SUBRECIPIENT PERFORMANCE Subrecipient shall, on an equitable basis throughout its combined SPS LIP Weatherization Assistance Program (WAP) service area, develop and implement an SPS Program to achieve a prescribed level of assistance for eligible low-income persons. Priority will be given to elderly, persons with disabilities, households with young children under 6 years of age in proportion to the current demographics for age, income, and ethnicity for Subrecipient's service area, households with a high energy burden and households with high energy consumption. Subrecipient shall implement the program in accordance with the SPS LIP training manual, the Texas WAP Installation Standards Manual, any policies and memorandums issued by the Department, the SPS measures as given in the Attachment A, and the terms of this contract. SECTION 3. DEPARTMENT FINANCIAL OBLIGATIONS A. Department's obligations under this contract are contingent upon the actual receipt by Department of adequate SPS LIP Weatherization funds. If sufficient funds are not available, t Department shall notify Subrecipient in writing within a reasonable time after such fact is determined. Department shall then terminate this contract and will not be liable for the failure to make any payment to Subrecipient under this contract. B. Department is not liable for any cost incurred by Subrecipient which:. (1) is incurred to weatherize a dwelling unit which is not an eligible dwelling unit as defined in 10 C.F.R. §440.22 (there are no categorically eligible clients in the SPS Program) when SPS program funds are used to weatherize a multi -family building, at least 66* of the units in the building must be income eligible for assistance (50% in the case of buildings with 4 or less). If at least 66% (or 50* in the case of buildings with 4 or less) of the units in the building units are income eligible, then SPS program funds may be used to weatherize all of the units in the building. Multi -family units must have individual electric meters or be sub -metered; (2). is incurred to weatherize a dwelling unit which is designated for acquisition or clearance by a federal, state, or local program within twelve months from the date weatherization of the dwelling unit is scheduled to be completed; (3) is not incurred during the Contract Period; (4) is not reported to Department on an SPS LIP Monthly Progress ti Expenditure Report, within thirty (30) days of the termination of this contract; (5) is subject to reimbursement by a source other than Department; (6) is made in violation of any provision of this contract or any provision of federal or state law or regulation, including, but not limited to, those enumerated in this contract; or (7) is incurred on a unit that is outside the SPS service area and household is not an SPS residential customer. C. Subrecipient shall refund, within fifteen (15) days of Department's request, any sum of money paid to Subrecipient which Department determines has resulted in an overpayment or has not been spent in accordance with the terms of this contract. Department may offset or withhold any amount otherwise owed to Subrecipient under this contract against any amount.owed by Subrecipient to Department arising under this or any other contract between the parties. SECTION 4. METHOD OF PAYMENT / CASH BALANCES A. Each month, Subrecipient may request a reimbursement payment for funds expended under the budget categories specified in the Attachment A by electronically submitting to Department at its offices in Travis County, Texas an SPS LIP Expenditure/Monthly Funding Report, copies of Building Weatherization Reports for each unit reported as weatherized with SPS funds, copies of Savings to Investment Ratio (SIR) page, Suggested Measure and Repair page, and cover page of each audit. B. Subrecipient's requests for funds shall be for the amount expended in the reporting month. In no event shall Subrecipient request an advance. Subrecipient shall establish procedures to minimize the time elapsing between the transfer of funds from Department and the disbursal of such funds by Subrecipient. C. All funds paid to Subrecipient under this contract are paid in trust for the exclusive benefit of the eligible recipients of the SPS LIP and for the payment of allowable expenditures identified in Section 7 of this contract. SECTION 5. COST PRINCIPLES AND UNIFORM ADMINISTRATIVE REQUIREMENTS Except as specifically modified by law or the terms of this contract, in performing this contract Subrecipient shall comply with the cost principles and uniform administrative requirements set forth in the Uniform Grant and Contract Management'Standards as applicable. SECTION 6. TERMINATION AND SUSPENSION A. Department may terminate this contract, in whole or in part, at any time Department determines that there is cause for termination. Department shall notify Subrecipient in writing at least thirty (30) days before the date of termination. B. Nothing in this Section shall be construed to limit Department's authority to withhold payment and immediately suspend performance of this contract if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other serious deficiencies in Subrecipient's performance. Suspension shall be a temporary measure pending either corrective action by Subrecipient or a decision by Department to terminate this contract. C. Department shall not be liable for any costs incurred by Subrecipient after termination or during suspension of this contract. Notwithstanding the termination or suspension of this contract, Subrecipient shall not be relieved of any liability for damages due to Department by virtue of any breach of this contract by Subrecipient. Department may withhold any payment otherwise due to Subrecipient until such time as the exact amount of damages owed to Department by Subrecipient is determined and paid. D. Subrecipient's failure to meet the performance standards may result in termination of this contract and all other Weatherization contracts issued by the Department. SECTION 7. ALLOWABLE EXPENDITURES A. The allowability of Subrecipient's costs incurred in the performance of this contract shall be determined in accordance with the provisions of Section 5 of this contract and the regulations set forth in 10 C.F.R. §440.18, subject to the limitations and exceptions set forth in this Section. B. Allowable SPS expenditures under Attachment A include the cost of labor, materials and program support. Program Support cost for each unit may not exceed 15t of the SPS funds expended for labor plus materials. Units cooled with evaporative coolers may only receive qualifying weatherization envelope measures of attic, wall and/or floor insulation. C. Administrative costs shall be allowed up to the amount specified in Attachment A Subrecipient shall be reimbursed for administrative costs at a rate of 5% of the Subrecipient's total allowable expenditures. D. (1) SPS measures installed must meet the requirements of a Savings -to -Investment Ratio (SIR) of one or better as demonstrated by the EASY audit program; (2) SPS materials must meet or exceed the standards prescribed by Department of Energy (DOE) in 10 C.F.R. Part 440, Appendix A and must be installed in compliance with the Materials Installation Standards Manual; (3) Related repairs, not including health and safety measures, with a whole house SIR of one (1) or better may be paid for with SPS funds; (4) Only homes heated or cooled by electricity (including evaporative coolers) furnished by SPS will be eligible for approved SPS measures, but all dwelling units qualify regardless of heating source or the presence of space cooling equipment. However, units cooled by evaporative coolers may receive certain envelope measures, which shall be limited to attic, wall and floor insulation. E. Subrecipient shall offer and assist customer to install energy - efficient refrigerators. An existing operable refrigerator will be eligible for replacement with a new refrigerator if it is certified by Subrecipient as meeting SPS specifications as detailed in the SPS Program Manual. In all instances, the client must own the existing operable refrigerator. There must be adequate space for the replacement refrigerator and the client must agree to have the old refrigerator removed. Subrecipient may not exceed its allocation of refrigerators. F. Subrecipient may demonstrate, offer and, when desired by customer, install low -flow showerheads and kitchen aerators for all participating customers. Low -flow showerheads and kitchen aerators shall be offered at no cost to all participants in Program who have electric water heaters. The new showerhead will be demonstrated by the installer and the existing showerhead will be left with the customer. Installers shall not attempt to install low -flow showerheads or kitchen aerators when the customers plumbing appears to be defective or unsuitable for the measures. G. Subrecipients may demonstrate, offer and, when desired by customer, install up to three (3) compact fluorescent lights (CFLs), if the bulbs are used for a minimum of 3 hours each day. H. Subrecipient shall provide appropriate energy education for all participants. This shall include information about how to read an electric meter; how to understand information contained on an electric bill; what the savings impacts of CFLs, low -flow showerheads, and energy -efficient refrigerators are; and other general information concerning energy management. SECTION 8. RECORD KEEPING REQUIREMENTS A. Subrecipient shall maintain all financial and programmatic records and supporting documents, statistical records, and such other records as TDHCA deems necessary for an effective audit and performance evaluation. B. SPS program files shall contain the following information: (1) EASY Audit information page, "Measures Ranked by SIR" page, and "Suggested Measures & Repairs" page; (2) Documentation of results of metering for refrigerator replacement (if applicable); (3) A disk of each EASY Audit; (4) Copy of client's installer agreement; and (5) Other forms as may be required via the Issuance System. C. Materials standards documentation for weatherization materials purchased under this contract must be maintained. These standards must meet the requirements specified in Appendix A of 10 C.F.R. Part 440 and the Material Installation Standards Manual. D. Subrecipient shall give Department and SPS access to and the right to reproduce all records pertaining to this Subrecipient. All such records shall be maintained for at least three years after final payment has been made under this contract and all other pending matters are closed. Subrecipient shall include the requirements of this Subsection in all subcontracts. E. All program records maintained by Subrecipient, except records made confidential by law, shall be available for inspection by the public during Subrecipient's normal business hours to the extent required by the Texas Public Information Act, Tex. Gov't Code Ann. Chapter 551. SECTION 9. REPORTING REQUIREMENTS A. Subrecipient shall submit an SPS LIP Monthly Funding Report for each month of the Contract Period. Monthly reports must be received by Department no later than the 15th day of the following month. Expenditure and Programmatic reports are due even if Subrecipient has no new activity to report. Subrecipient shall submit copies of Building Weatherization Report (BWR), EASY Audit Information page, "Measure Ranked by SIR" page, and "suggested measures and repairs" page. B. Subrecipient shall submit to Department within thirty (30) days following the date of termination of this contract a final SPS LIP Expenditure and Programmatic Report detailing expenditures not already reimbursed by Department. The failure of Subrecipient to provide a full accounting of all funds expended under this contract shall be sufficient reason for Department to deny or terminate any future SPS LIP contracts to Subrecipient. C. Subrecipient shall submit other reports, data, and information regarding the performance of this contract, as may be required by SPS or by the Department. D. If Subrecipient fails to submit, in a timely and satisfactory manner, any report or response required by this contract, including responses to monitoring reports, Department may withhold payments otherwise due Subrecipient hereunder. Payments may be withheld until such time as the delinquent report or response is received by Department. If the delinquent report or response is not received within forty-five (45) days of its due date, Department may suspend or terminate this contract. If Subrecipient receives Weatherization Program funds from Department over two or more contract periods, funds may be withheld or this contract suspended or terminated by Subrecipient's failure to submit a report or response (including a report of audit) past due from a prior contract period. SECTION 10. CHANGES AND AMENDMENTS Any change in the terms of this contract, as required by a change in state or federal law or regulation, is automatically incorporated herein, effective on the date designated by such law or regulation. Except as otherwise specifically provided herein, any other change in the terms of this contract shall be by amendment hereto in writing and executed by both parties to this contract, or by a Department issued Letter of Notification. SECTION 11. DEPARTMENT ISSUANCES Department may issue directives which serve to interpret or clarify the terms of this contract. Such directives shall be issued by Department in the form of SPS LIP Policy Issuances. Issuances shall not alter the terms of this contract so as to relieve Department of any obligation of reimbursement of an allowable cost incurred by Subrecipient prior to the effective date of the Issuance. All SPS LIP Policy Issuances promulgated by Department, whether promulgated before or after the commencement date of this contract, shall govern the performance of this contract until specifically rescinded by Department. SECTION 12. INDEPENDENT SUBRECIPIENT It is agreed that Subrecipient is an independent Subrecipient. To the extent allowed by law, Subrecipient agrees to hold Department harmless and indemnify it against any disallowed costs or other claims asserted by any person in connection with the services to be performed by Subrecipient under this contract. SECTION 13. PROCUREMENT STANDARDS & SUBCONTRACTS A. Subrecipient shall develop and implement procurement procedures that conform to the uniform administrative requirements referenced in Section 5. Subrecipient shall not procure supplies, equipment, materials, or services except in accordance with its procurement procedures and Policy Issuance #02-10.1. All procurement contracts, other than "small purchases" as defined in Policy Issuance #02-10.1, shall be in writing and shall contain the provisions required by Policy Issuance #02- 10.1. B. Subrecipient shall ensure that its subcontractors comply with all applicable terms of this contract as if Subrecipient was rendering the performance rendered by the subcontractor. Subrecipient shall inspect all subcontractor's work and shall be responsible for ensuring that it is.completed in a good and workmanlike manner. Subrecipient shall make no payment to subcontr4ctor until all work is complete and has passed final inspection. C. It is the sole responsibility of Subrecipient's authorized weatherization staff to perform every initial assessment, every EASY Audit, and every final inspection. In an emergency situation, Subrecipient may request that the Department waive this requirement. The Department will review each request separately to determine whether a waiver will be granted, the conditions for the waiver, and the maximum time allotted for the waiver. Under no circumstances will a waiver be granted for longer than six months. Failure to strictly adhere to this policy will result in disallowed costs. SECTION 14. PROPERTY MANAGEMENT A. Subrecipient shall develop and implement a property management system which conforms with the uniform administrative requirements referenced in Section 6 of this contract. Subrecipient shall not use, transfer, or dispose of any property acquired in whole or in part with funds provided under this or a previous weatherization assistance program contract except in accordance with its own property management system and Department Policy Issuances. B. Subrecipient shall establish adequate safeguards to prevent loss, damage, or theft of property acquired hereunder and shall promptly report to Department any loss, damage, or theft of property with an acquisition cost of Five Hundred Dollars ($500.00) or more. SECTION 15. INSURANCE REQUIREMENTS Subrecipient shall maintain adequate personal injury and property damage liability insurance. If Subrecipient is a unit of local government, and has sufficient assets or reserves to "self -insure" against the hazards which could arise in connection with the performance of this contract, the unit of government may "self - insure." Even a unit of local government which has sufficient reserves to cover reasonably anticipated liabilities may elect to carry such insurance for its own benefit and/or to ensure the viability of the Weatherization Assistance Program. If Subrecipient is not in a position to "self -insure," Subrecipient shall provide Department with certificates of insurance evidencing Subrecipient's current and effective insurance coverage. Subrecipient agrees to notify the Department immediately upon receipt of notification of the termination, cancellation, expiration, or modification of any insurance coverage or policy endorsements. Subrecipient agrees to suspend the performance of all work performed under this contract until Subrecipient satisfies the coverage requirements, and has delivered to Department certificates of insurance evidencing that such coverage and policy endorsements are current and effective. SECTION 16. LITIGATION AND CLAIMS Subrecipient shall give Department immediate written notice of any. claim or action filed with a court or administrative agency against Subrecipient and arising out of the performance of this contract or any subcontract hereunder. Subrecipient shall furnish to Department copies of all pertinent papers received by Subrecipient with respect to such action or claim. SECTION 17. TECHNICAL ASSISTANCE AND MONITORING Department or its designee may conduct periodic desk and on -site monitoring to evaluate the efficiency, economy, and effectiveness of Subrecipient's performance of this contract. Department will advise Subrecipient in writing of any deficiencies noted during such. monitoring. Department may provide technical assistance to Subrecipient and may require changes in Subrecipient's accounting, personnel, procurement, and management procedures in order to correct any deficiencies noted. Subrecipient may be required by Department to return to dwelling units to correct identified problems. Department may further review and assess the efforts Subrecipient has made to correct previously noted deficiencies. Department may withhold funds, deobligate funds, suspend performance, terminate this contract, or invoke other remedies in the event monitoring reveals material deficiencies in Subrecipient's performance, or if Subrecipient fails to correct any deficiency within a reasonable period of time. SECTION 18. LEGAL AUTHORITY A. Subrecipient represents that it possesses the practical ability and the legal authority to enter into this contract, to receive and manage the funds authorized by this contract, and perform the services Subrecipient has obligated itself to perform under this contract. B. The person signing this contract on behalf of Subrecipient hereby warrants that he/she has been authorized by,Subrecipient to execute this contract on behalf of Subrecipient and to bind Subrecipient to all terms herein set forth. C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Subrecipient or the person signing this contract to enter into this contract or to render performance hereunder. Should such suspension or termination occur, Subrecipient is liable to Department for any money it has received for performance of the provisions of this contract. SECTION 19. PREVENTION OF FRAUD AND ABUSE A. Subrecipient shall establish, maintain, and utilize internal control systems and procedures sufficient to prevent, detect, and correct incidents of waste, fraud, and abuse in the SPS LIP and to provide for the proper and effective management of all program and fiscal activities funded by this contract. Subrecipient's internal controlsystems and all transactions and other significant events must be clearly documented and the documentation made readily available for monitoring by Department. B. Subrecipient shall give Department complete access to all of its records, employees, and agents for the purpose of monitoring or investigating the SPS LIP. Subrecipient shall fully cooperate with Department's efforts to detect, investigate, and prevent waste, fraud, and abuse. Subrecipient shall immediately notify the Department of any identified instances of waste, fraud, or abuse. C. Subrecipient may not discriminate against any employee or other person who reports a violation of the terms of this contract or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 20. CONFLICT OF INTEREST/NEPOTISM A. Subrecipient represents that neither it nor any member of its governing body presently has any interest or shall acquire any interest, directly or indirectly, which would conflict with the performance of this contract and that no person having such interest shall be employed by Subrecipient or appointed as a member of Subrecipient's governing body. B. Subrecipient shall establish safeguards to prevent its employees from using their positions for a purpose that is, or gives the appearance of being, motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. C. Subrecipient agrees that it will comply with Tex. Gov't Code Ann.. Chapter 573 by ensuring that no officer, employee, or member of the governing body of Subrecipient shall vote for or confirm the employment of any person related within the second degree of affinity or third degree of consanguinity to any member of the governing body or to any officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the continued employment of a person who has been continuously employed for a period of two years prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. SECTION 21. POLITICAL ACTIVITY AND LOBBYING No funds provided under this contract may be used to attempt to influence in any manner a member of Congress to favor or oppose any legislation or appropriation by Congress, nor to lobby state or local elected officials except for advocacy on issues affecting energy assistance programs for low-income clients. SECTION 22. SECTARIAN ACTIVITY No funds received by Subrecipient under this contract may be used, either directly or indirectly, to support any religious or anti - religious activity. SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY No person shall, on the basis of race, color, religion, sex, national origin, age, disability, political affiliation or belief, be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in the administration of or in connection with any program or activity funded in whole or in part with funds made available under this contract. SECTION 24. SPECIAL COMPLIANCE PROVISIONS Subrecipient shall comply with the requirements of all applicable laws and regulations, including those specified in 10 C.F.R. Part 600 Appendix A - Generally Applicable Requirements. SECTION 25. MAINTENANCE OF EFFORT Funds provided to Subrecipient under this contract may not be substituted for funds or resources from any other source nor in any way serve to reduce the funds or resources which would have been available to or provided through Subrecipient had this contract never been executed. SECTION 26. DEBARRED AND SUSPENDED PARTIES Subrecipient must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension." SECTION 27. NO WAIVER No right or remedy given to Department by this contract shall preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SECTION 28. PRIOR ORAL AND WRITTEN AGREEMENTS All prior oral or written agreements between the parties hereto relating to the subject matter of this contract have been reduced to writing and are contained herein. SECTION 29. SEVERABILITY If any portion of this contract is held to be invalid by a court of competent jurisdiction, the remainder of it shall remain valid and binding. EFFECTIVE: 01/01/2004 CITY OF LUBBOCK BY: On Mark McDougal, Mayor TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS BY: On Edwina P. Carrington, Executive Director This contract is not effective unless signed by the Acting Executive Director of the Department or her authorized designee. 2ooL t - Rot ' waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SECTION 28. PRIOR ORAL AND WRITTEN AGREEMENTS All prior oral or written agreements between the parties hereto relating to the subject matter of this contract have been reduced to writing and are contained herein. SECTION 29. SEVERABILITY If any portion of this contract is held to be invalid by a court of ,competent jurisdiction, the remainder of it shall remain valid and binding.. EFFECTIVE: 01/01/2004 CITY OF LUBBOCK BY: On Mark McDougal, Mayor TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS BY: On Edwina P. Carrington, Executive Director This contract is not effective unless signed by the Acting Executive Director of the Department or her authorized designee. uu - _L02_( r1 SPS LOW-INCOME PROGRAM ATTACHMENT A - CONTRACT PERIOD, SERVICE AREA AND BUDGET COMPONENT SUBRECIPIENT NAME: CITY OF LUBBOCK CONTRACT NUMBER: 402049 ALLOCATION YEAR: 404 ALLOCATION PERIOD: 1/1/04 - 12/31/04 CONTRACT PERIOD The period for performance of this contract, unless earlier terminated, is January 1, 2004 through December 31, 2004 (hereinafter the "Contract Period"). SUBRECIPIENT PERFORMANCE Subrecipient shall provide weatherization program services sufficient to expend $52,700.00 during the allocation period. The following values shall be used to calculate savings: SPS average retail residential kWh cost: 74,4 Real discount rate: 3.396 Fuel escalation rate: 0* All .4eatherization measures installed must have an EASY Audit SIR of 1 or greater. Failure to expend 100* of the SPS LIP funds may result in reduction of funds and measures or termination of this contract and all other weatherization contracts. DEPARTMENT FINANCIAL OBLIGATIONS A. In consideration of Subrecipient's satisfactory performance of this contract, Department shall reimburse Subrecipient for the actual allowable costs incurred by Subrecipient in the amount of: (1) Funds for SPS LIP: $52,700.00. B. By written notice to Subrecipient, Department may deobligate or obligate additional funds from this budget component. For planning purposes only, Subrecipient may assume that the total award during the Contract Period will be: $52,700.00. Subrecipient is permitted to move funds form the measures category into the weatherization line item at their discretion. BUDGET CATEGORY - - - - - - - - - - - - - - - - Weatherization Administration TOTAL MEASURES CATEGORY NUMBER OF UNITS Compact Fluorescent Lights 0 Refrigerators 30 TOTAL 30 AMOUNT $35,33.00 $1,767.00 $37,100.00 AMOUNT $450.00 $15,150.00 $15,600.00