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HomeMy WebLinkAbout062110_ra03 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of Commissioners -'1.. . ,,- FROM: Philip Morley, County Administrator /' - ",.- /) l' L, ' ~ l 'JC., ) DATE: June 21, 2010 , / " RE: 2nd Revised Interlocal Agreement for Resource Conservation Management Services STATEMENT OF ISSUE: StatTpresents for Board of County Commissioner (BoCC) consideration and approval a 2'" revised lnterlocal Agreement (ILA) for Resource Conservation Management Services. This lLA is with the City of Port Townsend, Port Townsend School District, Chimacum School District, and Fort Worden State Park, It replaces the first revised ILA authorized by the BoCC on March 15,2010, This latest revision replaces Jefferson HealthCare with Fort Worden State Park. ANALYSIS: The BoCC first approved an Interlocal Agreement for a shared Resource Conservation Manager on February 22, 2010 for six participating public agencies, When one ofthe partners withdrew, a new lLA for the remaining five was authorized by the BoCC on \1arch 15,2010, The new revised ILA proposed herein replaces Jefferson HealthCare with Fort Worden State Park. The program is expected to achieve net budget savings for each participating jurisdiction by reducing utility expenditures, The lLA enables us to receive Shared Resource Conservation Manager grants from Washington State University's Energy Office, and Puget Sound Energy, The 2-year WSU grant and the 3-year PSE grant would subsidize the cost of a Resource Conservation Manager (RCM) that would be shared between the city, two schoo! districts, Fort Worden, and the county, The lLA has a term ofthree years, and would only become effective upon execution by all parties and award of both the grants. If the program is successful, the participating agencies may consider renewing the lLA to continue the program and the utility savings beyond the initial three years. FISCAL IMPACT: If we achieve the minimum energy saving goals ofPSE and WSU, the County have cumulative 3-year net savings after costs of $15,630, However, historically, the average achievement of other jurisdictions exceed these grant minimums, With typical conservation achievement, Jeflerson County would actually expect to realize net 3-year savings of approximately $45,000, RECOMMENDATION: Staff recommends that the Board pass a motion to authorize the Chair to sign the proposed revised lnterlocal Agreement for Resource Conservation Management Services with the City of Port Townsend, Port Townsend School District, Chimacum School District, and Fort Worden State Park, REVIEWED BY: , . -L &:,} L' Z ,-( .Co'urity Admintstl;ator \_~.-./ / ~// 7/; Date June 14,2010 Interlocal Agreement - ReM Services Page 1018 INTERLOCAL AGREEMENT BETWEEN JEFFERSON COUNTY; the CITY OF PORT TOWNSEND; the PORT TOWNSEND SCHOOL DISTRICT; the CHIMACUM SCHOOL DISTRICT; AND FORT WORDEN STATE PARK FOR RESOURCE CONSERVATION MANAGEMENT SERVICES This Intergovernmental Agreement is made and entered into this 14'h day of June 20 10, by and between Jefferson County Washinb>1on, a municipal corporation (hereinafter referred to as "Jefferson County"), the City of Port Townsend, Washington, a municipal corporation (hcrcinafter referred to as "the Citv"), the Port Townsend School District, Washington, a school district (hereinafter referrcd to as "PTSD"), the Chimacum School District, Washington, a school district (hereinafter referred to as "CSD") and Fort Worden State Park, a state agency, (hereinafter referred to as "the Fort") (hereinafter collectively referred to as "thc Parties"). WHEREAS, the Parties are forming a partnership for resource conservation management services 111 order to materially reduce operating costs through resource conservation; and WHEREAS, the Parties are forming a partnership for resource conscrvation management services in connection with the award of a 2-year Resource Conservation Management Grant from the Washington State Department of Commerce; and WHEREAS, the Parties may elect to participate in a Resource Conservation Manager scrvices agreement with Puget Sound Energy (PSE), as set forth and under the terms and conditions of an Energy Conservation Grant for Resource Conservation Manager Services; and WHEREAS, Washington State University Extension Energy Program (WSU) will provide program and technical support to assist with the shared resource conservation manager program; and WHEREAS, Jefferson County is willing to be the lead partner for administrative oversight of the grant program on behalf of the partnership formed by the six aforementioned agencies; and WHEREAS, this interlocal agreement is entered into for the mutual benefit of the parties and is specifically authorized by the lnterlocal Cooperation Act set forth in Chapter 39.34 of thc Revised Code of Washington; now therefore, for and in consideration of the services to be rendered, resources to be shared, and the payments to be made, the parties hereby recite, covenant and agree as follows: 1. Resource Conservation Mana!!er Position & Work Plan. If the Grants are received, a Resource Conservation Manager (RCM) will be contracted or hired as a full-time equivalent (FTE) to provide RCM services to the Parties, Prior to advertising for an RCM, the Parties shall meet to prepare a Work Plan for the RCM, RCM program services will meet the requirements for the grants and will minimally cover additional requiremcnts and details set forth in Allachment A: Program Requirements and Statement of Work At the minimum, the Work Plan shall address, and the RC\1 is expected to implement, the following: June 14, 2010 INTERLOCAL AGREEMENT - RCM SERVICES Page 1 of 8 June 14, 2010 Interlocal Agreement - ReM Services Page 2 01 8 . Energy Accounting (utilizing software provided underthe Grant) . Basic utility efficiency and resource management action plan for facilities . Review of resource use and potential actions . Implementation of low-cost/no-cost measures and activities, and measurement of results . Assisting the Parties in securing additional grant funding and assisting in finding rebate programs that support relevant energy efficiency projects, . Participating in technical and software training . Reporting of results to all Parties' administrations . Reporting ofresults and successes to Commerce, the WSU Extension Energy Program, and to Puget Sound Energy, as appropriate 2, Selection of RCM, Jefferson County will take the lead in contracting with or hiring the individual or firm selected to do the work on behalf of the Parties. Jefferson County will assemble and advertise an employee recruitment or Request for Proposals, with the assistance of WSU and the Parties. The Parties shall have the option to attend interviews conducted to evaluate candidate contractors or individuals, and provide opinions to Jefferson County as to the most qualified candidate or contractor. 3. Comuensation, Jefferson County will make payments due to the contractor under their RCM contract, or shall pay the FTE's salary if an employec is hired, and shall prepare annual billing statements for distribution to the Parties, The County shall work with the other Parties to prepare an annual RCM Program budget. The City, PTSD, CSD, and the Fort shall be billed and shall pay Jefferson County for their share of the annual budgeted expenditures in excess to the Grant funds in proportion to their utility costs, at the percentages shown in AUachmenl B, The County will send the invoice at the beginning of each year. Since this is a community effort, if the grant revenues arc reduced, thc county will invoice the Parties for the reduced funding proportional to their participation, 1n no event shall a Party's proportion of contributions exceed the percentage shown on the attached RCM Funding Caleulator, unless due to time the RCM spent focusing on the Party's needs in excess of that Party's proporrion of costs, 4, Allocation of RCM time, 1n year one, the RCM shall allocate his or her time according to the amount each Party expends on utilities from all sources (water, sewer, electricity, oil, and natural gas, etc, as identified in the Statement of Work) in 2009 in relation to the other Parties, in the percentages shown in AUachment B. For example, if Jefferson County expends 26% of the sum total of utility expenses of the six Parties combined, the RCM will spend 26% of his/her time performing RCM services on behalf of Jefferson County consistent with the duties outlined in the RCM contract, Thereafter, the allocation shall be recalculated annually during tlie budget process based on the previous full year of each Party's utility expenditures, The RCM shall document time spent with appropriate time records. 5. Status and Workspace. The Parties specifically agree that the RCM will provide professional services for the proportional benefit of all partners. Workspace, to inclllde a desk, chair, and access to standard office equipment and computer connections, shall be made available and provided by Jefferson County, if and as necessary. June 14, 2010 INTERLOCAL AGREEMENT - RCM SERVICES Page 2 of 8 June 14, 2010 Interlocal Agreement - ReM Services Page 3 018 6, Additional Responsibilities of All Parties, As the lead Party, Jefferson County shaJJ have the following additional rcsponsibilities: . Rcpresent all Parties in communication with the Washington State Department of Commercc (Commerce), Washington State Cniversity Extension Energy Program (WSU Energy) and Puget Sound Energy (PSE). . Provide WSU Energy with summarized monthly activity rcports, showing activitics associated with the minimal program requirements as stated abovc, . Providc WSU Energy with quarterly reports indicating resource usagc and savings, rcsource expcnditure amounts and savings, . Provide Commerce with reports as per thc anticipated agreement betwecn Commerce and Jefferson County, acting as lcad for the Parties. . Provide PSE with reports as per thc anticipated agreement betwecn PSE and Jefferson County, acting as lead for the Parties, 7, Support and Monitorinl! of ReM, The Parties shall support and monitor the performancc and progress ofthe RCM in the foJJowing ways: . Meet at regular intervals to assess RCM progress, . Seek support of the Puget Sound Energy RCM Support Services program, Each Party must provide data and application materials to Jefferson County if necessary to apply for grant funds in connection with the PSE program or its renewal aftcr three years. . Establish a performancc evaluation process for the RCM. . Provide acccss of all owned facilities to RCM, . Provide access to Revl of all utility bills, statements, and data. . Facilitate meetings between RC\1 and facilities managers, and RCM and other appropriatc staff. 8. Term, This agreement shall becomc effectivc upon the award of scparate Resource Conservation Manager grants by the WSU Enerb'Y Office and Puget Sound Encrgy, and the execution of grant agreements with both grantors. This agreement shall continue in force and effect for the duration of the 2-year grant program from WSU and the 3-year grant program tram PSE, Withdrawing from the partnership would result in unanticipated cost incrcases for the remaining partners, Thercfore, this agrecment constitutes each partner's commitment to reimburse to Jeffcrson County the amounts described in Section 3, Compensation, of this agreement Extension of thc terms of this agrecment beyond the initial 3-year grant pcriod may bc effected by writtcn agreemcnt ofthc parties, (PSE currcntly offers the opportunity to renew its grant for an additional 3-year period.) 9, Termination, Any partner may tcrminate their receipt of RCM services at any timc for any reason by providing at least sixty (60) days advance noticc oftermination in writing to the other partners, However, as statcd in Section 8 Term, the partner requesting termination must continuc their payment to Jefferson County until completion of the grant program unless all remaining Partics agrec on the new payment responsibilities and amounts rcsulting from updated proportions, 10, Modification. This Agreement may only be modified or amcnded in writing representing the mutual acceptance by all parties of said amcndment or modification. June 14. 2010 INTERLOCAL AGREEMENT - RCM SERVICES Page 3 of 8 June 14, 2010 Interlocal Agreement - ReM Services Page 4 01 8 1 L Hold Harmless. Each party to this Agreement shall defend, indemnify and hold the other party, its appointed and elected officers and employees, harmless from claims, actions, injuries, damages, losses or suits including attorney fees, arising or alleged to have arisen directly or indirectly out of or in consequence of the performance of this Agreement to the extent caused by the fault or negligcnce of the indemnitor, its appointed or elected officials, employees, officers, agents, assigns, volunteers or representatives. 12, Applicable Law and Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington, In the event ora dispute, such dispute shall be litigated in the Superior Court of Jefferson County, Washington, 13, :'Ion-Discrimination. Parties shall not discriminate in any manner related to this Agreement on the basis of racc, color, national origin, sex, religion, age, marital status or disability In employment or thc provision of services, 14, Severability, 1f any provision of the Agreement shall be held invalid, the remainder of this Agreement shall not bc affected thereby if such remainder would then continue to serve the purposes and objcctives of all parties. lS, Entire A!!reement. This Agreement constitutes the entire agreement bctween the parties, Any modifications or amendmcnts to this Agreement shall be in writing and shall be signed by each party, 16, Comvliance with RCW 39.34.040. Pursuant to RCW 39.34.040, this agrecment shall be filed with the Jefferson County Auditor or alternativcly, listed by subjcct on thc public web site of thc Parties hercto or on other electronically retrievable public source. DATED this 14th day of June 2010. COUNTY OF .JEFFERSON CITY OF PORT TOWNSEND David Sullivan, Board of County Commissioners David Timmons, City Manager ATTEST: ATTEST: Erin Lundgren, Deputy Clcrk ofthe Board Pamela Kolacy, M MC, City Clerk APrROVED AS TQ FORNI: APPROVED AS TO FORM: , ,','i. q \ , .'c" _ .1.... ..' ~,(.,., :_,f David Alvarcz, Deputy Proserilting Attorney \~ John Walts, City Attorney June t4. 2010 INTERLOCAL AGREEMENT - RCM SERVICES Page 4 of8 June 14, 2010 Interlocal Agreement - ReM Services PORT TOWNSEND SCHOOL DISTRICT Tom Opstad, Superintendent ATTEST: Bobbie DuBois, Chair, PTSD School Board June 14, 2010 CHIMACUM SCHOOL DISTRICT Mike Blair, Superintendcnt ATTEST: Cammy Brown, Chair, Chimacum School Board INTERLOCAL AGREEMENT - RCM SERVICES Page 5 018 Page 5 of 8 June 14,2010 Interlocal Agreement - ReM Services Page 6 018 FORT WORDEN STATE PARK Kate Burke fort Worden Area Parks Manager APPROVED AS TO FOfu"\f: By: Assistant Attorney General Date: June 14, 2010 INTERLOCAL AGREEMENT - RCM SERVICES Page 6 of 8 June 14, 2010 Interlocal Agreement - ReM Services Page 7 018 Attachment A Minimal Program Requirements and Statement of Work Minimal program requirements At the minimum, the RCM is expected to implement the following: . Energy Accounting (software will be provided by the grantors) . Basic energy efficiency and resource management actian plan for facilities . Review of resource use and potential actions . Implementation of law-costlno-cost measures and activities, and measurement of results . Participation in technicol and software training . Reporting of results to all partner administrations . Reporting of results and successes to Commerce, the WSU Extension Energy Program and Puget Sound Energy, as appropriate Statement of Work: Lead Partner will: . Represent all Parties in communication with the Washington State Department of Commerce (Commerce), Washington State University Extension Energy Program (WSU Energy), and Puget Sound Energy (PSE), . Provide WSU Energy with summarized monthly activity reports, showing activities associated with the minimal program requirements as stated above . Provide WSU Energy with quarterly reports indicating resource usage and savings, resource expenditure amounts and savings . Provide Commerce with reports as per the anticipated agreement between Commerce and Jefferson County, acting as lead for the Parties . Provide PSE with reports as per the anticipated agreement between PSE and Jefferson County, acting as lead for the Parties . Lead the process to hire or contract with a RCM, and make payments according to contract, if the Parties decide to contract out . Prepare billing statements to the partners for payment of RCM costs, per allocation as stated under Services To Be Provided in 'nterlocal Agreement . Prepare statements and reimbursement requests to Commerce and to PSE, as appropriate . Manage the RCM according to job description and implementation expectations June 14, 2010 INTERLOCAL AGREEMENT - RCM SERVICES Page 7 of 8 June 14, 2010 Interlocal Agreement - ReM Services Page 8 018 Jefferson County will: . Provide RCM with desk, telephone, computer, etc, if needed, All six Parties will: . Develop a joint work plan for the RCM, including basic energy efficiency and resource management action plan for all facilities, Allocation of time spent at each of the partners facilities will be noted in the work plan, . Meet at regular intervals to assess RCM progress . Establish a performance evaluation process of the RCM . Provide access of all owned facilities to RCM . Provide access to RCM of all utility bills, statements, and data . Facilitate meetings between RCM and facilities managers, and RCM and other appropriate staff Payment Schedule: . Attachment B: Projected RCM Costs defines the proportional share of each Party to be billed for budgeted expenses above grant amounts during the 3-year grant period based on 2009 utility costs, . Payments to the Lead Party will be made annually as invoiced by the County for the proportionate share of budgeted expenditures above grant amounts and for any grant reduction invoice, as set forth in Section 3, Compensation of this Interlocal Agreement. . Payments to the Lead Party will be billed and paid as described in Section 3, Compensation of this Interlocal Agreement, June 14, 2010 INTER LOCAL AGREEMENT - RCM SERVICES Page 8 of 8 Jefferson County - Proposed RCM Program Support June 14, 2010 Attachment B - Projected RCM Costs Assumptions: WSU & PSE Grants Awarded - Minimum Grant Required Energy Savings Achieved Description Year 1 Year 2 Year 3 Jefferson County ReM Budget 5100,733 $97.889 5100.825 WSU Grant $50.000 525.000 50 PSE Grant 521,000 $21,000 $21.000 Notes Utility expenses are based on year 2009 in this analysis. Partner contributions will be based on each partner's percentage of total utility costs reported for 2009 - excluding swimming poo\' golf course and street lights. which are excluded from grant support. Some ReM program applicants are projecting a 2% reduction in energy costs in the first year, but in order to be conseNative, we have shown no reduction in savings the first year. The Jefferson County ReM Budget estimate was provided by Philip Morley based on using a contractor. Previous experience with ReM programs has shown that an average of 5% savings can be expected after the start-up year - and that this is a very conservative number. The "Annual Projected Benefits" column is predicated on that percentage. The "Cumulative Net Benefit" shows the project-Io- date projected benefit after contributions during the grant performance period. The PSE program reduces the grant amount proportionally if the targeted 5% is not made by the group in the aggregate~ it is not an all-or-nothing challenge. Thus, if the group only made a 4% reduction in the second year, the PSE award would be 80% of the full grant amount for that year. I WnhWSU, , Based on Jefferson County ReM PSE Budget Participation ReM funded by grant 1$ 71. 000 I Amount funded by partners $ 29,733 I RCM funded by grant $ 46.000 I Amount funded by partners $ 51.889 I IRCM funded by grant $ 21.000 I IAmoUnt lunued oy panners $ 79.825 I YEAR 1..With WSU & PSE Total Utility Perunt of YearJPCirtn& Year 1 Year 1 Net CumulatiVe Total Projected Notes contributions. Exj:Umse Expense Cost .. Benefit Benefit Net Benefit Jefferson County (2009) $ 532.660 22% $ 6.412 $0 $ (6.412) $ 16.412) Tn the first yeaL il is assumed that City of Port Townsend {2009 $ 451.283 18% $ 5,433 $0 $ (5,433) $ (5.433) there ,lIe no benefits due to the start- PT School Oist (2009) $ 463.065 19% $ 5.574 $0 $ (5,574 $ (5.574 up and tmining of the Rctvl. 'The Chimacum School Dist (2009) $ 461 .457 19% $ 5,555 $0 $ (5,555) S (5,555) grants are awarded without Fort Worden State Park (2009) $ 561.419 23% 5 6.758 $0 $ (6.758 $ 6.758 performance criteria other than a Totals $ 2,469,884 100% $ 29,733 $ - $ (29,733) $ (29,733) successful implementation in the first year. y -- I I ."'. 0 , y I In the second year and third years, there is a performance Jefferson County (2009) $ 532.660 22% $ 11.190 $26.633 $ 15.443 $ 9,030 target of 5% to get City 01 Port Towns.end (2009) $ 451,283 18% $ 9,481 $22.564 $ 13.083 $ 7.651 reimbursement from the PSE PT School Dist (2009) $ 463,065 19% $ 9,728 $23.153 $ 13.425 $ 7.850 grant. We have used this to Chimacum School Dist (2009) $ 461,457 19% $ 9.695 $23,073 $ 13,378 $ 7.823 show that the effort is net Fort Worden State Park (2009) $ 561.419 23% $ 11.795 $28.071 $ 16,276 $ 9.518 positive if we hit the targets Totals $ 2,469,884 100% $ 51,889 $123,494 $ 71,605 $ 41,872 YEAR 3..Wrth PSE contribution Total Utility Perc~ntof Year 3-Pa!"tMf Yeat-3 Year 3 Net Cumulative Total Projected Notes only. Expense Expense COst Benefit :Benefit Net Benefit Jefferson County (2009) $ 532,660 22% $ 17.215 $26,633 $ 9.418 $ 18.448 We have used 5% as the target benefit becaus.e this is what the grant contract with PSE will be City of Port Townsend (2009) $ 451.283 18% $ 14.585 $22.564 $ 7,979 $ 15,630 predicated on. Historically, 10% PT School Dist (2009) 5 463,065 19% $ 14.966 $23,153 S 8,187 $ 16,038 15% numbers have been Chimacum School Dist (2009) $ 461,457 19% $ 14,914 $23.073 $ 8.159 $ 15,982 achieved by existing ReM's. Fort Worden State Park (2009) $ 561.419 23% 5 18.145 $28.071 $ 9.926 $ 19,444 Totals $ 2,469,884 100% $ 79,825 $123,494 $ 43,669 $ 85,541 PARTNERSHIP FUNDING SCENARIOS