CR 91-82 Approve Contracts - Minnegasco, Northern Lights Power
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March 26, 1991 Council Report 91-82
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APPROVE CONTRACTS WITH MINNEGASCO, NORTHERN STATES POWER AND
DESIGNATED COMMUNITY BASED ORGANIZATIONS TO PROVIDE
COMMUNITY ENERGY SERVICES TO THE RESIDENTS OF HOPKINS
Proposed Action
Staff recommends approval of the following motion: Approve
resolution 91-41 authorizing the Mayor and the City Manager
to execute contracts with Northern States Power, Minnegasco
and designated community based organizations to provide
Community Energy Services to the residents of Hopkins.
with approval of this motion, the contracts will be executed
and staff will proceed with marketing the program.
Overview
Under Minnesota Law, Minnegasco and Northern States Power
must implement residential energy conservation projects
which serve their customers. ' One such project which has
been developed by Minnegasco and NSP is the Community Energy
Services Program (CES). CES is designed to be a
comprehensive energy conservation program, offering a
variety of services depending on residents' individual
needs.
Minnegasco and NSP have requested that the city of Hopkins
support the CES program by assisting in the marketing of the
program and by referring residents when possible. They also
have requested that the city enter into a contract which
details it's responsibility under the Program.
primarv Issues to Consider
o What is the intent of this Program?
o What services does the CES program offer?
o What are the city's risks and costs of supporting
this program?
o How long will the program be available in Hopkins?
Supportinq Information
o Proposed contracts between City of Hopkins and
Minnegasco; and the city of Hopkins, Northern states Power
and Designated Community Based Organizations
0 so ution 91-41
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urn, Housing Coordinator
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CES Program
Rpt. 91-82 /
page 2
Primary Issues to Consider
o What is the intent of this Program?
The CES program is designed to reduce residents energy
consumption through education and weatherization. The
program is designed to be a "one stop shop" for residents so
that all the services they may need to reduce consumption
are available through this one program. The program is
funded by Minnegasco and NSP, although it is delivered by a
coalition of public and non-profit agencies - Center for
Energy and the Urban Environment, Natural Resources
Corporation, Self Reliance Center and West Hennepin Human
Services (referred to as the 3rd parties in the NSP
contract).
o What services does the CES program offer?
The following services are offered through the CES program:
Low Income Residents
o Free Energy Workshops - Residents who attend the
workshops will receive information on how to reduce energy
usage and receive free materials.
o Home Energy Check Ups - Renters and homeowners will
receive a home energy audit, energy use education, and free
materials ($25-45). Homeowners will also receive a blower
door analysis. The Home Energy Check Up identifies
additional weatherization services based on need, the
condition of the home and energy use.
o Project Air - Appropriate Minnegasco homeowners will
receive Project Air which provides for approximately 16-
hours worth of sealing air leaks identified through the use
of a blower door test, training on how to complete other
energy related maintenance items, and completion of a client
plan of action, signifying a commitment to improve specific
energy use habits.
o Major Weatherization - Minnegasco homeowners needing
the most assistance will receive major weatherization which
includes diagnostic sealing of air leaks and an emphasis on
high density insulation in sidewalls and attics.
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CES Program
Rpt. 91-82
page 3
Non-Low Income Residents
o Free Home Energy Check Up - An examination of the
entire structure with detailed explanation on "do it
yourself" improvements, free materials ($25), a blower door
analysis and referral to the Home Energy Fix Up Program
where appropriate.
o Home Energy Fix Up - Homeowners and 1-4 unit rental
property owners interested in major energy improvements can
benefit from the Home Energy Fix Up program which provides
certified contractors, low interest financing and guaranteed
quality performance by contractors through an infra-red
inspection.
o Multifamily Building Audits and Installations -
Owners of 5+ unit apartment buildings served by Minnegasco
are eligible for energy audits and installation of
recommended improvements for a fee.
. o What are the city's risks and costs of supporting
this program?
The risk to the city is that by entering into the contracts
with the utility companies, we are assuming some liability
for the program. The City Attorney has reviewed the
contracts and has indicated that they are satisfactory. The
costs associated with supporting the program include the
cost of marketing the program through a mailing (combined
with information on the City's Residential Rehabilitation
Loan/Grant Program) and staff time spent on referrals.
o How long will the program be available in Ropkins?
The CES program will be available in Hopkins immediately and
is scheduled to continue through September 1992. However,
to make delivery of the program as cost effective as
possible, the program will be marketed at different times in
different locat~ons. Hopkins is scheduled to be one of the
first cities to 'market the program so it is anticipated that
the majority of homes in Hopkins will be served this summer
and fall.
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CES Program
Rpt. 91-82
page 4
Alternatives
The Council has the following alternatives regarding this
issue:
o Approve the resolution as recommended by staff.
o Elect not to support the Community Energy Services
'Program in which case the program mayor may not be
available for Hopkin's residents.
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RESOLUTION NO. 91-41
RESOLUTION AUTHORIZING THE CITY OF HOPKINS TO ENTER INTO
AGREEMENTS WITH NORTHERN STATES POWER, MINNEGASCO AND
DESIGNATED COMMUNITY BASED ORGANIZATIONS TO PROVIDE
COMMUNITY ENERGY SERVICES TO THE RESIDENTS OF HOPKINS.
WHEREAS, rising energy costs are a major expense for
residents who either own or rent their homes; and
WHEREAS, residential energy conservation helps preserve the
environment and the quality of life in our community; and
WHEREAS, the City council wants to help its residents
contain or reduce their energy costs through energy
conservation improvements to their home; and
WHEREAS, Minnegasco, a division of Arkla, Inc. , and Northern
States Power Company have been directed by Minnesota law to
implement residential' energy conservation projects; and
WHEREAS, both Minnegasco and Northern States Power Company
are interested in working with the city in promoting
residential energy conservation; and
WHEREAS, West Hennepin Human Services Planning Board, the
Self Reliance Center and Natural Resources Center have over
25 years of experience in providing residential conservation
energy services;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF HOPKINS, MINNESOTA AS FOLLOWS:
1) The Mayor and City Manager are authorized to execute the
Community Energy Services Agreement with Minnegasco to
jointly support the Community Energy Servic~ Program for the
city of Hopkins.
2) The Mayor and City Manager are authorized to execute the
community Energy Services agreement with Northern States
Power and three community based groups (West Hennepin Human
Services Planning Board, the Self Reliance Center and
Natural Resources Center) to jointly support those
components of the Community Energy Services Program
identified in this agreement to be funded by Northern States
Power and implemented by the three community based groups.
Adopted this 2nd day of April, 1991.
By:
Mayor
Attest:
City Clerk
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COMMUNITY ENERGY SERVICES DRAFT
AGREEMENT
This Community Energy Services ("CES") Agreement ("Agreement") is between,
the City of Hopkins, Minnesota, ("City"), 1010 South 1st Street, Hopkins,
Mi nnesota 55343 and Mi nnegasoo, ("Minnegasco" L a di vi sion of Arkl a, Inc.,
201 South Seventh Street, Minneapolis, Minnesota 55402.
RECITALS
Minnegasco is a natural gas distribution company which is directed by
Minnesota law to implement residential energy conservation projects which
serve Minnegasco residential heating customers. Minnegasco has designed
a Conservation Improvement Program ("CIP") which has been approved by the
Minnesota Department of Public Service ("DPSv" ) with rate recovery
approval from the Minnesota Public Utilities Commission ("MPUC"). CES is
a comprehensive array of residential and multifamily energy conservation
projects, designed to be delivered in conjunction with a city. Minnegasco
desires to implement CES in conjunction with the City as an approved CIP.
The City desires to enter into this Agreement to insure that effective
energy conservation projects are offered to qualified Minnegasco heating
. customers in the City of Hopkins.
Therefore, the parties intending to be 1 ega lly bound, agree for
themselves, their successors and assigns as follows:
SECTION 1. DUTIES OF THE CITY
1.1 Marketing: The City will assist in promoting CES through
advertising, mailings or other direct communications as deemed
appropriate by the City and as City resources and budget allow. In
any advertising, mailing or other direct communications about CES,
the City will disclose that the project is sponsored by Minnegasco
and that Minnegasco ratepayers are funding the project.
1.2 Referral and Assistance: If the City receives inquiries concerning
CES, the City will refer the caller to the Center for Energy and the
Urban Environment as specified in the marketing materials. If the
City receives feedback on CES or verification on service providers,
the Ci ty will refer the caller to Minnegasco's Administrator of
Energy Programs.
SECTION 2. DUTIES OF MINNEGASCO
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2.1 Project Implementation: Minnegasco will subcontract with qualified
service providers to implement the various services that constitute
CES. The three service providers are the Center for Energy and the
Urban Environment (CEUE), Self-Reliance Center (SRC), and Natural
Resources Corporation (NRC).
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2.2 Project Services: Services will be provided as follows:
Marketing and General Administration - CEUE
low Income Services:
- Free Energy Workshops - CEUE
- Home Energy CheckUp {non-NSP customers only} - NRC/SRC
- Project Air Infiltration Reduction - CEUE and its subcontractors
- Major Weatherization - NRC
Non-low Income Services:
- Home Energy CheckUp {non-NSP customers only} - NRC/SRC
- Home Energy Fix Up - CEUE and its subcontractors
- Multifamily Building Audits - CEUE/SRC
2.3 Significant ChanQes: Minnegasco will confer wi th the City's
designated representative prior to making any substantive changes to
CES as described above in Section 2.2.
2.4 ProQress Reoorts: Mi nnegasco wi 11 requi re the CEUE to forward
monthly progress reports to the City, if desired by the City.
SECTION 3. COSTS
3.1 Costs of the City: The City is responsible for all costs incurred
in performing its duties.
3.2 Costs of Mi nneQasc.o: Minnegasco is responsi bl e for all costs
incurred in performing its duties.
SECTION 4. GOODWILL
The City agrees that any of its employees, independent contractors, or
other persons performing any duties required of the City under this
Agreement shall be instructed to avoid words or actions that would convey
a negative image for Minnegasco.
SECTION 5. DPSv and MPUC APPROVAL
The terms of this Agreement are dependent upon DPSv's approval of the
request by Minnegasco to operate this project in Hopkins and of the MPUC's
approval for recovery of Minnegasco's costs associated with this project.
Unless this Agreement is prohibited by the DPSv, or recovery of project
costs through natural gas rates is disallowed by the MPUC, this Agreement
shall be in force through September 30, 1992. If approval is withdrawn,
Minnegasco shall notify the City and thereafter performance by the parties
will not be required.
SECTION 6. LIABILITY AND INDEMNIFICATION
6.l. City's ObliQations: The City shall indemnify and hold harmless
Minnegasco against any claim, loss, judgment, liability, or expense
for damage to any property, or for death or injury to any person
caused by or arising from the negligent acts or omissions or willful
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Minnegasoo's
misconduct of ~ ~ officers, employees, and representatives
during its performance of its duties under this Agreement.
6.2 MinneQasco's ObliQations: Minnegasco shall indemnify and hold
harmless the City against any claim, loss, judgment, liability, or
expense for damage to any property, or for death or injury to any
person caused by or arising from the negligent acts or omissions or
will ful misconduct of the City's officers, employees, and
representat i ves duri ng its performance of its duties under thi s
Agreement.
SECTION 7. INSURANCE
The City will have the following insurance: (1) General Public Liability
Insurance policy (including owned and hired vehicles) with a}$~ $600,000
combined single limit policy which includes protection against personal
injury and property damage; (2) Automobile Public Liability Insurance
policy (including owned and hired vehicles) with a $~ combined $600,000
single limit policy which includes protection against personal injury and
property damage; and .( 3) Workers' Compensat ion insurance accord i ng to
applicable statutory requirements. The City will provide certificates of
insurance upon request. Minnegasco has General Public Liability Insurance
and Automobil e Public Li abil ity Insurance in excess of $25 mi 11 ion.
Minnegasco. has Workers' Compensation Insurance according to appl icab1e
statutory requirements. Minnegasco will provide certificates of insurance
or other evidence of the above insurance upon request.
SECTION 8. COMPLETE AGREEMENT
This is the parties' complete Agreement and cannot be modified except by
a written amendment signed by both parties, except as specified in Section
5.
SECTION 9. TERMINATION
This Agreement may be terminated by any party to the Agreement with ten
(10) days written notice to the other party, except as provided in Section
5.
SECTION 11. NOTICES
All notices under this Agreement will be deemed delivered when mailed,
postage paid, to the other party at the following address:
If to Minnegasco: If to the City:
Susan K. Nathan Steven Mielke - --
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Administrator, Energy Programs City Manager -, . >--
Minnegasco, Inc. City of Hopkins
201 South 7th Street 1010 First St. South
Minneapolis, MN 55402 Hopkins, MN 55343
(612) 342-4939
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SECTION 12. TERMS
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This Agreement shall be in effect from March 1, 1991 through
September 30, 1992.
MINNEGASCO. INC. CITY OF HOPKINS
By By
Phillip R. Hammond
Vice President
Gas Supply & Regulatory
Administration Division
Dated: Dated:
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Community Energy Council Program Agreement
This AGREEMENT, effective as of the 1st day on January, 1991 is
between Northern States Power Company (NSP), a Minnesota Corporation, the City
of (the "City") a Municipal Corporation, and non-profit
Minnesota Corporations: (3rd party)
(3rd party)
(3rd party)
WITNESSETH:
WHEREAS, the Minnesota Public Utilities Commission ("MPUC") ordered NSP
to implement a conservation improvement program which included providing
assistance to conduct the Home Energy Check-Up (HEC) for NSP residential
customers, and
WHEREAS, the City has established a Community Energy Council (CEC) whose
responsibilities included conducting the Home Energy Check-up (HEC) for NSP
residential customers.
NOW THEREFORE, in consideration of the terms and conditions stated herein,
the parties agree as follows:
1. Publicity: The (3rd Party) shall develop a program to stimulate interest and
publicize the availability of the HEC in order to sign up households for the service.
Promotions will be done with advertising, mailings and other direct
communications. Upon request by the City or the (3rd Party), NSP will assist with
publicity by providing mailing labels and offering advertising assistance at the
option of NSP.
2. Selection of Participants: Any NSP residential customer qualifies for the HEC.
The (3rd Party) is responsible for encouraging senior citizens, handicapped persons,
low income individuals and renters to receive a HEC.
3. Customer Release Form: The (3rd Party) will obtain signed authorization from
each participant in the HEC allowing NSP to release consumption data to the
auditor. This release form, a sample of which is attached hereto and incorporated
herein by reference as "Attachment A", shall be signed by each such participant prior
to the release of the consumption data.
4. Audits: NSP shall reimburse the (3rd Party) $87 for each approved HEC
completed by a (3rd Party) auditor in 1991. Alternatively, NSP shall reimburse the
(3rd Party) $127 for those HEC approved participants identified by the (3rd Party) as
low income or renters. NSP shall have the option to verify income and rental
status. The reimbursement rate for each HEC completed in 1992 will increase by the
amount of the consumer price index increase for 1991.
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. 5. Auditor Training: NSP shall pay the tuition for the local training for up to two
auditors, not to exceed a total of $700, who will perform audits for a City sponsored
CEC.
6. Energy Conservation Materials: As part of the $87 reimbursement for each
HEC, NSP shall require the (3rd Party) to provide between $20-$25 worth of energy
conservation materials for each home receiving the HEC, with $5 of energy
conservation materials specifically directed to electric conservation.
Alternatively, as part of the $127 reimbursement for each low income and rental
HEC, NSP shall require the (3rd Party) to provide between $45-$50 worth of energy
conservation materials for each home receiving the HEC, with $25-$30 of energy
conservation materials specifically directed to electric conservation.
A (3rd Party) AUDITOR WILL IDENTIFY AND DEMONSTRATE THE
INSTALLATION OF THE MATERIALS TO THE PARTICIPANTS, ANSWER
QUESTIONS AND PROVIDE SPECIAL ASSISTANCE TO SENIOR CITIZENS,
HANDICAPPED PERSONS, LOW INCOME INDMDUALS AND RENTERS.
7. Literature: NSP will provide information publications for the (3rd Party) to
offer to program participants.
8. Referral and Assistance: The (3rd Party) auditors will inform participants of
. applicable energy assistance programs offered by the Energy Division of the
Minnesota Department of Public Service, Minnesota Department of Economic
Security, the City and other local agencies.
9. Equipment: NSP will assist the (3rd Party) in obtaining the necessary
equipment required to perform the HEC's.
10. Reporting Requirements: Each month, the (3rd Party) shall submit an
invoice to the NSP Regional Office Representative, in accordance with Section 15 of
this Agreement, along with a list of participant names, addresses, account numbers
and the number of renter and low income participants (hereafter called the Audit
Summary) and a copy of the Audit signed by the customer. The NSP Regional
Office will enter the data and forward the invoice to the NSP General Office for
reimbursement to the (3rd Party). The audits, invoice and Audit Summary should
be numbered consecutively from program start to finish for each calendar year.
The (3rd Party) is responsible for recording the number of renters and low income
individuals, a sample of which is attached hereto and incorporated herein by
reference as "Attachment B", on each invoice.
In addition, the (3rd Party) shall adhere to these and other NSP recordkeeping
procedures as agreed when the program is initiated.
. The (3rd Party) shall grant NSP reasonable access to any books and records
concerning the CEC and any of the funds and activities specified herein. The
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(3rd Party) shall cooperate with NSP to respond to any requests for information or
. . other relevant orders of the MPUC.
11. Reimbursement Procedure: If audit expenses satisfy the criteria stated herein,
NSP shall send a check to the (3rd Party) within 30 days after receipt of the itemized
statement.
12. Goodwill: The City agrees that each employee, independent contractor, or
other person performing any duties required of the City under this agreement shall
be instructed to refrain from taking any action that will damage or injure the
reputation or goodwill of NSP. Should an event occur that violates this provision,
the City and NSP will mutually agree as to the appropriate measures to be taken.
13.Idemnity: The City shall defend and hold NSP harmless against any claim,
loss, judgment or liability, whether based on contract or tort liability, arising out of
the City's performance or failure to perform under this Agreement, or any claimed
defect in supplies or materials provided. NSP shall defend and hold the City
harmless against any claim, loss, judgement or liability, whether based on contract
or tort liability, arising out of NSP performance or failure to perform under this
Agreement. This section shall survive the completion of, or termination of, this
Agreement or any breach thereof.
13a The (3rd Party) shall defend and hold (NSP and the City) harmless against
any claim, loss, judgement or liability, whether based on contract or tort liability,
arising out of the performance or failure to perform under this Agreement, or any
claimed defect in supplies or materials provided. This section shall survive the
completion of, or termination of this Agreement or any breach thereof.
(3rd Party) shall have the following insurance: (1) Comprehensive General
Liability Insurance policy (including owned and hired vehicles) with a $600,000.00
combined single limit policy which includes protection against personal injury and
property damage; (2) Comprehensive Automobile Liability Insurance policy
(including owned and hired vehicles) with a $600,000.00 combined single limit
policy which includes protection against personal injury and property damage;
(3) Workers' Compensation Insurance in accordance with Minnesota laws; and (4)
In such insurance policy shall name NSP as an additional insured. A certificate of
insurance shall be forwarded to NSP. This section shall survive the completion of,
or termination of this Agreement or any breach thereof.
14. Term: The term of this Agreement shall commence January 1, 1991 and shall
continue through December 31, 1992 and then shall continue for successive periods
of one year, provided, however, that either party may, for its sole convenience,
terminate this Agreement upon thirty days written notice to the other party. In the
event that NSP terminates this contract, the City and the (3rd Party) shall be entitled
to recover for all services performed prior to receipt of a notice for termination, but
. no amount shall be allowed on unperformed services.
15. All information should be sent by United States mail, postage thereon
prepaid.
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J . The (3rd Party) shall direct information to the appropriate NSP representative as
discussed in the Reporting Requirements section. The correct addresses and
telephone numbers are as follows:
General Office Coordinator Regional Representative
Dale Sullivan (612) 330-6361
Northern States Power Company
414 Nicollet Mall
Minneapolis, MN 55401
All notices from NSP to the City shall be sent to: Notices from NSP to to be sent to:
City (3rd Party)
All parties shall be entitled to rely and act upon notices sent pursuant to this section.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their respective duly authorized officers, as of the day and year first above
written.
THE CITY OF
By: Title:
3RD PARTY:
By: Organization:
By: Organization:
By: Organization:
NORTHERN STATES POWER COMPANY
By: Title:
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