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HomeMy WebLinkAbout2016-06-13 16-248 RESOLVECOUNCIL ACTION Item No. 16 _248 Date: June 13, 2016 Item/Subject: Resolve, Ratifying the Finance Director's Execution of a Memorandum of Understanding with Efficiency Maine for the Bangor Energy Efficiency Initiative Responsible Department: Finance Commentary: This resolve will ratify the Finance Director's execution of a memorandum of understanding with Efficiency Maine in support and administration of the City of Bangor's recently adopted Bangor Energy Efficiency Initiative, which will provide rebates to residential homeowners. During this past year, Councilors worked to expand opportunities to for homeowners to invest in energy efficient measures. The overall objective being to increase participation in homeowner energy efficiency, thereby 1) helping Bangor residents lower their winter heating bills; 2) modernizing Bangor's old housing stock thus making Bangor a more attractive place to live; 3) decreasing Bangor's carbon footprint in the face of global warming. In March, the Finance Committee reviewed the program to create an incentive to save homeowners money and modernize our housing stock, by piggyback onto existing programs offered through Efficiency Maine. This would lower administrative costs and allow for Bangor homeowners to receive even greater incentives for energy efficiency programs and provide access to unsecured loans. In April, the City Council appropriated $140,000 to fund a program to be administered by Efficiency Maine. Ratification of the Memorandum of Understanding will finalize that action in time for an early summer rollout of the program. Staff recommends approval. Department Head Manager's Comments: CC al nn Lmja� � City Manager Associated Information: Memorandum of Understanding Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral Fi nce Director icitor Page 1 of —1— Assigned to Councilor Plourde CITY OF BANGOR 16-248 JUNE 13, 2016 (TITLE.) RESOLVE, Ratifying the Finance Directors Execution of a Memorandum of Understanding with Efficiency Maine for the Bangor Energy Efficiency Initiative BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT Ratifies the Finance Director's execution of a memorandum of understanding with Efficiency Maine in support and administration of the City of Bangor's recently adopted Bangor Energy Efficiency Initiative, which will provide rebates to residential homeowners. IN CITY COUNCIL JUNE 13, 2016 PASSED CITY CLffRK 16-248 JUNE 13, 2016 MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (the "MOU"), effective as of , 2016 (the "Effective Date"), is entered into between Efficiency Maine Trust, an independent quasi -state agency of the State of Maine (the "Trust"), and the City of Bangor, a municipal corporation organized and existing under the laws of the State of Maine (the "C"), for the purpose of setting forth the parties' mutual understanding regarding administration and payment of certain energy efficiency rebates for the benefit of City residents. WHEREAS, the City would like to improve the efficiency of City housing stock and assist residents in lowering energy costs; WHEREAS, the Trust administers programs in Maine that deliver cost-effective solutions to help Maine consumers use energy more efficiently, lower energy costs and reduce air emissions; WHEREAS, on April 11, 2016, the City allocated up to $140,000 in City funds (the "Grant Funds") to be used to increase participation by City residents in the Trust's Home Energy Savings Program ("RESP"); and WHEREAS, the Trust has agreed to accept and administer the Grant Funds from the City on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows: 1. Grant Funds. The Trust will advance Grant Funds to provide rebates to City residents of certain amounts not covered by HESP rebates, and the City will reimburse the Trust for such advances, subject to the terms and conditions set forth herein. 2. Eligibility. In order to be eligible to receive City Grant Funds: (a) the project must be located in the City and eligible for a HESP rebate from the Trust, (b) the project owner must be a City resident, and (c) the subject property must be a dwelling that serves as a principal place of residence. Notwithstanding anything herein to the contrary, HESP eligibility, program and measure design, and incentives shall be determined by the Trust consistent with Trust's Program Manuals in effect at the time, in its sole discretion. Under no circumstances shall the Trust be obligated to advance Grant Funds, offer any rebate, or otherwise incentivize any measure or project if the Trust determines that such measure or project is not cost-effective, constitutes a clear case of free -ridership, or is otherwise not consistent with the Trust's HESP, enabling act, triennial plan, or program manuals, as all of the same may be amended from time to time. 3. Advancement of Funds and Invoice Procedure. In consultation with the Trust, the City shall develop a rebate reservation form, which form must provide the amount and eligibility criteria of qualifying rebates. The City will provide rebate reservation forms to {P1145841.1}{P1145841.1} 1 16-248 JUNE 13, 2016 qualifying City residents. The Trust will advance Grant Funds directly to City residents upon a resident's submission to the Trust of a properly completed, City -approved rebate reservation form, along with a HESP claim form. The Trust shall invoice the City on a monthly basis for amounts actually advanced to City residents during the prior month. The City shall pay in full each invoiced amount within 30 days after receipt of the Trust's invoice. Once the Trust's total advances of Grant Funds reach $140,000, the Trust shall be under no further obligation to advance funds and this MOU shall automatically terminate pursuant to Section 7. 4. Late Payments. Except with respect to invoices reasonably in dispute, all late payments shall bear a late payment fee of 1.5% per month, calculated daily and compounded monthly. The City shall also reimburse the Trust for all costs incurred in collecting any late payments, including, without limitation, reasonable expenses and attorneys' fees. 5. Reporting. Until such time as the Grant Funds have been advanced in full, the Trust shall submit monthly activity reports to the City that provide an accounting of the amount of Grant Funds advanced in the prior month and show how such funds have been used and the total amount advanced as of the report date. 6. Independent Program Administration. Except as otherwise provided in this MOU, the Trust shall process all rebates, provide customer service and otherwise administer the Grant Funds advanced pursuant to this MOU in its discretion. Nothing in this MOU shall be construed to require the Trust to engage in any advisory or decision-making processes with the City or any marketing or public outreach campaigns for or on behalf of the City. Except with respect to the reports required under Section 5, the Trust will not be required to consult with or report to the City or any other entity, organization or person with respect to administration or advancement of the Grant Funds. The Trust shall be solely responsible for determining marketing strategies, measure types and all programs and incentives offered under its HESP. The Trust may discontinue or amend any measure, program, incentive or other aspect of any offer provided pursuant to this MOU at any time. 7. Termination. This MOU shall commence on the Effective Date and terminate upon advancement in full of the Grant Funds, provided, however, that either party may terminate this MOU at any time by providing written notice to the other party, and provided, further, that the term of this MOU may be extended at any time prior to the Trust's advancement in full of the Grant Funds by replenishment of the Grant Funds in an amount mutually agreed in writing by the parties. Notwithstanding any termination of this MOU, the payment obligations of the City set forth herein with respect to the portion of the Grant Funds advanced by the Trust prior to such termination shall remain in full force and effect. 8. Miscellaneous. a. This MOU contains the entire agreement of the parties relating to the subject matter hereof, and neither party shall be bound by any statement or representation not {P1145841.1HP1145841.1} 2 16-248 JUNE 13, 2016 contained herein or in a written amendment signed by the parties. This MOU may only be amended or modified by an instrument in writing duly executed by the parties. b. The invalidity of one or more phrases, sentences, clauses, articles, or sections contained in this MOU shall not affect the validity of the remaining portions thereof so long as the material purposes of this MOU can be determined and effectuated. c. This MOU shall be governed and construed in accordance with the laws of the State of Maine, exclusive of conflicts of laws provisions. d. This MOU may be executed in counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument. Facsimile or PDF transmission of any signed original document, and retransmission of any facsimile or PDF transmission, will be the same as delivery of any original document. At the request of either party, the other party will confirm facsimile or PDF signatures by providing an original signed document. e. No delay or omission in the exercise of any right under this MOU shall impair any such right or shall be construed or considered as a waiver or relinquishment thereof, but any such right may be exercised from time to time and as often as may be deemed expedient. In the event that any provision hereof shall be breached and thereafter waived, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereof. None of the provisions of this MOU is intended to create nor will be construed to create an agency, partnership or employment relationship between the parties. g. All marketing and other materials bearing the Trust's name and/or logo to be used by the City in connection with the Grant Funds, rebate reservation form, or this MOU shall be submitted for review and approval by the Trust before public distribution. 9. Notices. Notices and other communications with respect to this MOU, including delivery of monthly reports, will be sent to the following addresses: If to the City: If to the Trust: Dana Fischer, Residential Program Manager 168 Capitol Street, Suite 1 Augusta, ME 04330-6856 {P 1145841. 1)(PI 145841. 1} 3 16-248 JUNE 13, 2016 IN WITNESS WHEREOF, the parties have caused this MOU to be signed by their respective duly authorized representatives. CITY OF BANGOR By: Name: Title: EFFICIENCY MAINE TRUST By: (P1145841.1)(P1145841.1} 4 Michael D. Stoddard Executive Director