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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

www.tdhca.state.tx.us
Rick Perry GOVERNOR BOARD MEMBERS C. Kent Conine, Chair Gloria Ray, Vice Chair Leslie Bingham Escarefio Tom H . Gann Lowell A. Keig Juan S. Mufloz, Ph.D.

Michael Gerber

EXECUTIVEDIRECTOR

June 28, 2010 Mr. Karl R. Rabago VP for Distributed Energy Services Austin Energy 721 Barton Springs Rd. Austin, Texas 78704 Re: DOE/ARRA Weatherization Assistance Program Contract #16090000753 Dear Mr. Rabago: Enclosed is a report that details the monitoring o f the City of Austin (COA) Weatherization Assistance Program contract with the Texas Department of Housing and Community Affairs (The Department). This information is provided to ensure that compliance with the contract is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical marmer. The monitoring report includes four (4) findings resulting in questioned costs and one (1) recommended improvement. Please submit a response to this report to this office within thirty (30) days of the date of this letter. If we can be of any assistance, please feel free to contact J.R. Mendoza, Senior Program Officer, at (512) 936-7811. The assistance provided to the Program Officers by the agency is greatly appreciated. Sincerely,

Sharon D. Gamble Manager Energy Assistance Section Cc: Mr. Marc A. Ott, City Manager

221 EAST 1 1 Th • P . O .

Printrd recycled paptr

2009 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN

Directory of Monitoring Sections Section 1. Financial Reporting Section IL Travel and Timesheets Section III. General Liability and Pollution Occurrence Insurance Section IV. Property Management Section V. Procurement Section VI. A u d i t Section VII. Personnel Policies and Practices Section VIII. Performance Review Section IX. .Administration Section X. Multifamily Section XL Denied Files

2009 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN

Dates of Review:

M a y

17-20, 2010

F o c u s OF REVIEW

CONTRACT NAME

CONTRACT NUMBER 16090000753

CONTRACT AMOUNT $5,964,892.00

CONTRACT DATES 9/1/2009 to 8/31/2011

DOE ARRA

PROGRAM EVALUATION

The May 17-20, 2010 on-site monitoring consisted of a review of the City of Austin (COA) implementation o f the Department o f Energy's ARRA Weatherization Assistance Program. Specific areas o f review included Financial Reporting, Contract Agreements, Procurement, Personnel, and the Management of the Department of Energy and Low Income Home Energy Assistance Program contracts. The evaluation of the program consisted of: interviews with the COA personnel, analysis of the fiscal system, review o f programmatic records, on-site inspections, client interviews, and inventory review. This is the first year that COA has operated a Weatherization Program from TDHCA. The process to obtain the weatherization contract was lengthy as there were protocols that required review by several City Departments and ultimately the City Council approval. Shortly after the contract was approved and signed by the council, Austin Energy commenced the procurement process t o acquire sub contractors to complete unit assessments, final inspections and to install the weatherization measures. This process was completed in March 2010 and contracts were approved in the subsequent month. At the time of monitoring, COA had weatherized five (5) units, but had not reported them to the Department since the contractors had not provided invoices; therefore no Building Weatherization Report had been completed. As a result, there were no expenditures reported to the Department. The following was noted during the review: • L a c k of production of weatherized units • L a c k of documentation of compliance with Weatherization Material Standards • W o r k Orders did not detail where air infiltration measures were to be completed. • Income documentation was missing on two of five client files • F i l e s contained excess forms

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2009 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN Section I. Financial Reporting EXPENDITURES AS OF MARCH 2010 CONTRACT

NAME DOE ARRRA

YEAR-TO-DATE EXPENDITURES $O

% OF ORIGINAL
CONTRACT

# UNITS

# UNITS IN

COMPLETED 0

PROGRESS 5

AMOUNT 0%

Finding #1: A t the time of monitoring, COA had not reported any completed units. Whereas, the contract period ends August 31, 2011, COA faces deobligation o f funds i f minimum completion benchmarks are not met throughout the program year. Two benchmarks include COA reporting 100 (cumulative) completed units, at an average unit expenditure rate of $5,380.00, by June 30, 2010 and 371 (cumulative) units by August 31, 2010. In addition, COA must have expended at least 20% ($538,000) of its original contract by June 30, 2010 and 35% ($1,995,980) by August 31, 2010.
Action

Required: A s part of the response to this report, COA must document a plan of action that will detail how it will assure units will be weatherized and how it anticipates meeting the production schedule that was submitted to the Department (June 10, 2010 production schedule). At a minimum, specifics of the plan of action should include Outreach, Intake, Assessments, Contractors, Final Inspections, Financial payments and Reporting. COA must understand that providing the required response does not guarantee its DOE ARRA contracted funds w i l l not be deobligated.
Reference: DOE ARRA contract section 4

Finding #2: A t the time o f monitoring, C O A d i d n o t have documentation that a l l weatherization materials installed by its contractors met the minimum standards as required by DOE. Failure to ensure each product meets DOE requirements may result in questioned or disallowed costs.
Required

Action:

A

copy of data sheets for all material products used by each of contractor must be maintained. I n addition, each product must conform to the DOE minimum standards. As part of the response to this report, COA must provide a copy of the materials specifications from each contractor. In addition COA must provide an assurance that a file will be maintained to ensure all materials installed meet DOE requirements.
Reference: DOE 10 CFR 440 Appendix A

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2009 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN

Finding 143: A review o f work orders for the weatherized units revealed generic details on which air infiltration measures should be taken. Having a generic work order may lead to work that may not be required and may result in over expenditure of air infiltration measure funds. A thorough unit assessment must detail what air infiltration measures will be required. I n turn, this detail will allow COA to determine which measures are most cost effective and i f the cost is over the maximum allowable expenditure. A n y costs over the maximum allowable expenditure will be disallowed.
Required

Action: A s part of the response to this report, COA must provide an assurance and detail what steps will be taken to guarantee all future work orders will be detailed as to the specific need for any weatherization measure.
Reference: DOE ARRA Contract Section 11

Finding #4: A review o f five (5) client files revealed two (2) files missing income documentation f o r certain individuals within the household. Client f i l e EVILIA402 was missing income documentation for the wife and file LRIBB0408 had two (2) individuals within the household missing income documentation. All encumbered weatherization expenses ($2,896.00) f o r these t w o units are considered questioned until the income documentation is obtained.
Action

Required: A s part of the response to this report, COA must obtain and provide the missing income documentation for each file noted above. COA must also provide the existing client income information on file and verify i f the household is still eligible to receive DOE ARRA weatherization services. COA must provide an assurance on how it will ensure all weatherization client files will have income documentation for each household member over eighteen (18) years of age.
Reference: DOE ARRA Contract Section 13 Recommended

Improvement: A review of the client files revealed excess documents in each file. COA had copies of the Priority Rating Sheet Instructions and the Blower Door Standard Instructions in each client file. Whereas these instructions are important to ensure the priority rating sheet and the Blower Door Standard are followed correctly, copies are not required to be in each file. It is recommended that each assessor, final inspector and quality assurance staff member have a central file containing a copy of these instructions.

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2009 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN

Texas Department of Housing and Community Affairs representative, J.R. Mendoza participated in an exit conference with Mr. Steven Saenz and Joseph Guerrero.

Celedonio Mendoza Jr. Senior Program Officer

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e

6 / z s l z , o / o

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2009 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN AT TA C H M E N T A

JAMAD3409 LRIBB04-08 SBR004905 • EVILLA4402

ARRA ARRA ARRA ARRA

Clean fan in the Central System air handler Insulate the attic hatch No Return No Return

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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
www.tdhca.state.mus
Rick Perry GOVERNOR Michael Gerber EXECUTIVE DIRECTOR B C T L o w o e O A . m l R D MEMBERS Kent Conine, Chair Gloria Ray, Vice Chair Leslie Bingham Escarefio H . Gann l A. Keig Juan S. Munoz, Ph.D.

September 28, 2010 Mr. Karl R. Rabago VP for Distributed Energy Services Austin Energy 721 Barton Springs Rd. Austin, Texas 78704 Re: D O E / A R R A Weatherization Assistance Program Contract #16090000753 Dear Mr. Rabago: Enclosed is a report that details the monitoring review of City of Austin (COA) Weatherization Assistance Program contract with the Texas Department of Housing and Community Affairs (The Department). This information is provided to ensure that compliance with the contracts is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical manner. The monitoring report includes two (2) findings. Please submit a response to this report to this office within thirty (30) days of the date of this leiter. I f we can be of any assistance, please feel free to contact Celedonio (J.R.) Mendoza, Jr., Sr. Program Officer, at (512) 936-7811. T h e assistance provided to the Program Officer by the agency is greatly appreciated. Sincerely,

Sharon D. Gamble Manager Energy Assistance Section cc: Mr. Marc A. Ott, City Manager

221 EAST 1 1 T 11 • P . O .

Printed en recycled paper

2009 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN

Dates of Review: A u g u s t 16-17, 2010

F o c u s OF REVIEW

CONTRACT NAME DOE/ARRA

CONTRACT NUMBER 16090000753

CONTRACT AMOUNT $5,964,892.00

CONTRACT DATES 9/1/2009 to 8/31/2011

PROGRAM EVALUATION

The evaluation of the program consisted of client file reviews, on-site inspections, interviews with clients, and analysis of both quality of subcontractor workmanship and final inspection techniques.
The following was noted during the review:

• L o w expenditure rates, and low production: • Subcontractor workmanship deficiencies on seven (7) client Units inspected.
Financial Review

Finding #1:

A

s

of the July-2010 Monthly Expenditure Report, the City of Austin had only expended 4.08% of total ARRA WAP contract funds. The July-2010 Monthly Expenditure Report also reported that only 34 units had been completed, and only 244 units were in-progress.

Action Required: C i t y of Austin must submit with its response to this report a detailed action plan that will outline action steps that will be implemented to increase unit production and also increase contract expenditures. Failure to submit a plan to the Department may result in suspension of ARRA
WAP contract funds. Reference: A R R A Contract Section 4

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2009 WEATHERIZATION UNIT INSPECTION REPORT
C I T Y OF A U S T I N

Performance Review Finding #2: Onsite home inspection of weatherized units revealed that seven (7) of the units inspected would require a return t o address deficiencies i n subcontractor workmanship. City of Austin must return to the client units listed in Attachment A and address the deficiencies noted on each unit. City o f Austin must also include in its response to this report, a summary of all actions taken to address the deficiencies noted in Attachment A. City of Austin must also assure the Department in its response to this report that proactive measures will be taken to prevent future instances o f poor workmanship from its subcontractors. Those measures a t a minimum should include both periodic visits to client units while work is in progress and ensure that final inspections will be conducted once all work is finished, to ensure that the quality o f work that is being performed meets City o f Austin's requirements, and the Department's expectations. Reference: 10 CFR Part 440; §440•16 (g)

Action Required:

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2009 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN

Texas Department o f Housing and Community Affairs representative David Escamilla participated in an exit conference with City of Austin representatives; Mr. Steve Saenz, Mr. Joe Guerrero, and Mr. Jack Pittala.

Emosimmisi David Escamilla, TDHCA Pro tram Officer lipp ly - l i r r a n o u l l i m i l l i m i m i l l i o n

1 1 12EF 11 AZIE
Da e:

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2009 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN

AT TA C H M E N T A

Total Number of Units Inspected 12

Fund Source of Units Inspected

ARRA

Units Re uirin Return: Client Unit Fund Source 2010-00A-0054 ARRA 2010-00A-0009 ARRA 2010-00A-0036 ARRA 2010-00A-0018 ARRA 2010-00A-0044 ARRA 2010-00A-0034 2010-00A-0051 ARRA ARRA

Comments Address: Cook-stove (High CO). Address: Cook-stove (High CO), Address: Cook-stove (High CO), Address: Insulation Certificate, and Weatherstrip Attic Hatch. Address: Attic Insulation (Fan Area), Block Heat Source, and Install Vapor Barrier. Address: Block Heat Source in Attic. Address: Front Door Weatherstrip and Water Heater Closet Weatherstrip.

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TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
www.tithca•state.tx.us
Rick Perry GOVERNOR Michael Gerber EXECUTIVE DIRECTOR B C T L o o w O A . r e n l R D MEMBERS Kent Conine, Chair Gloria Ray, Vice Chair Leslie Bingham Escarefio H, Gann l A. Keig Juan S. Mufioz, Ph.D.

January 11, 2011 Mr. Karl R. Rabago VP for Distributed Energy Services Austin Energy 721 Barton Springs Rd. Austin, Texas 78704 Re: D O E / A R R A Weatherization Assistance Program Contract #16090000753 Dear Mr. Rabago: Enclosed is a report that details the unit inspection monitoring review conducted 11/15-19/2010 of City o f Austin (COA) Weatherization Assistance Program contracts with the Texas Department of Housing and Community Affairs (the Department). This information is provided to ensure that compliance with the contracts is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical manner. The monitoring report includes five (5) findings. Please submit a response to this report to this office within thirty (30) days of the date of this letter. I f we can be o f any assistance, please feel free to contact Giovani (Gio) Giunea, Program Officer, at (512) 475-3861. The assistance provided to the Program Officers by the agency is greatly appreciated. Sincerely,

Sharon Gamble Program Manager Energy Assistance Section Cc: Mr. Mare A. Ott, City Manager

221 EAST 1 1 " • P. O . B o x 13941 • AUSTIN, TEXAS 78711-3941 • ( 8 0 0 ) 525-0657 • ( 5 1 2 ) 475-3800
tro Printed on recycled paper

2010 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN

Dates of Review:

N o v e m b e r

15-19, 2010

FOCUS OF REVIEW

CONTRACT NAME

CONTRACT NUMBER 16090000753

CONTRACT AMOUNT $5,964,892.00

CONTRACT DATES 9/1/2009 to 8/31/2011

DOE/ARRA

PROGRAM EVALUATION

The evaluation of the program consisted of client file reviews, on-site inspections, interviews with clients, and analysis o f both quality of subcontractor workmanship and final inspection techniques. The following was noted during the review: • Incomplete Blower Door Data Sheet • Incomplete Building Weatherization Reports • Incomplete assessment form • Subcontractor workmanship deficiencies in thirteen (13) client units inspected • Improper client qualification determinations
Client File Review

Finding #1:

A

t

the time of monitoring, a review of COA client files noted deficiencies: • B l o w e r Door Data Sheet for file131734 improper target reduction calculation. • Assessment Forms for file 131734 and 134921 were incomplete, not signed and/or dated. • B W R ' s files 131734, 123599, 14687, 56128, were incomplete, missing pre/post CO readings, improper fuel identification COA is reminded that all client files must contain, at minimum, the list of record keeping requirements found in the Weatherization ARRA contract.
Reference: WAP ARRA Contract, Section 13.

Action Required:

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2010 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN

Finding 142: I n a d e q u a t e Client Eligibility Determination:

A review of multifamily client files 38052 and 38051 revealed units were weatherized even though income verification exceeds the 200% Federal Income Guidelines. COA did not verify fifty percent o f the building qualified for weatherization services. Questioned Cost $4, 219.18
Action Required:

In order to provide evidence that the above client files qualify based on building eligibility, COA must build a comprehensive multifamily master file with all the proper forms and attachments. Further, the Department requires COA to develop a written plan detailing how COA will assure compliance w i t h multifamily building eligibility. Copies o f t h e multifamily master file and written plan must be provided t o the Department i n the response to this report. I f COA cannot provide sufficient evidence that the weatherized units qualify, the units are subject
to disallowed costs. Reference: Texas Administrative Code; Title 10; Part 1; Chapter 5; Subchapter E; Rule §5.507, Rule §5.525 Performance Review

Finding #3:

Inadequate Final Inspection Techniques:

Onsite home inspection of weatherized units revealed that thirteen (13) of the units inspected would require a return to address deficiencies in final inspections. Deficiencies included and not limited to: missing tape and mastic at HVAC systems, reducing air infiltration, missing insulation at attic. Action Required: C O A must return to the client units listed in Attachment A and address the deficiencies noted on each unit. COA must also assure the Department in its response to this report that proactive measures will be taken to prevent future instances of poor final inspections. To ensure that the quality of work that i s being performed meets C O A requirements, and the Department's expectations, those measures should include at a minimum both periodic visits to client units while work is in progress and final inspections conducted once all work, is finished,. Reference: 10 CFR
Part 440; §440.16 (g) Finding H4: Health and Safety Issue:

Onsite inspection revealed health and safety issues requiring attention. Client files 131734, 14687 CO level at stove above allowable limit. See Attachment A Action Required: C O A must return to the above units and address the health and safety issue. COA must implement a department policy that clearly states processes and procedures for the final inspector/assessor to address Health

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2010 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN

and Safety issues. Reference: Texas Administrative Code; Title 10; Part 1; Chapter 5; Subchapter E; Rule 0.528 Finding #5: Inadequate Energy Audit Procedures: A) Energy audits reviewed during monitoring visit. Review o f NEAT audits in seventeen (17) client files revealed that weatherization measures were being installed without ranking on the energy audit with a savingsto-investment ratio (SIR) of 1.0 or greater. See Attachment B. Questioned Costs $3,587.92 B) Review of NEAT audit on client file 14687 revealed that refrigerator replacement had a Measure Savings ($/yr) o f $34,688 and an SIR o f 724.7, questioned cost $1,702.99. Review of NEAT audit on client file 59695, revealed that refrigerator replacement had a Measure Savings ($/yr) o f $89,358 and an SIR o f 1788.5, questioned cost 2,599.62. Questioned Costs $4,552.61 C) Review of NEAT audits in seventeen (17) client files revealed that weatherization measures (heating and cooling units) were being installed without proper justification. Client files 134934, 134922 and 134921 assessment of the heating unit states unit condition "Fair" with comments such as "Clean and Service HVAC" and comments related to ductwork. Assessment of the cooling unit comments "Clean and Service HVAC. Replaced units have been disposed of hence reassessment will not be an option. Disallowed Costs $12,441.69 Action Required: A) and B) As part of the response to this report, COA must return to the energy audits for the files listed in Attachment B, review and revise the audits with all the measures listed. Copies of the revised audits must be provided to the Department in the response to this report. Any measures that do not rank 1 or greater SIR on the submitted audits are subject to disallowed costs. COA must also assure The Department that proper procedures will be followed to ensure the proper inputting of information into the energy audits. The Department does appreciate COA's effort to begin working with the NEAT audit. Reference: A R R A Contract Section 11 (B); DOE and LIHEAP Contracts Section 9 (B); 10 CFR Part 440; 040.21 (d) C) As part o f this response COA must reimburse the ARRA / WAP program $12,441.69. Evidence o f this reimbursement, in the form o f a check, must be submitted as part o f the response t o this report. Reference: 10 CFR Part 440; 040.16 (g)

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2010 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN

Texas Department o f Housing and Community Affairs representative Giovani (Gio) Giunca participated in an exit conference with City of Austin representatives Steve Saenz, Joe Guerrero, Fred Yebra, Jack Pittala and Irene Avina.

Signature: Signature: Signature:

, Sharon D. Gamble, Manager, Energy Assistance Section 6Am 4,, J.R. oM " ndo a, Senior erogram Officer )-e/ r 1 Ye---- 6 . ( 0 4 - A F e R Giovani (Gio) Giunca, Program Officer ,-N, . , _- - - _ .4 .1 .

/0 1/4 Date: / 5:4.s 1 Date: t" 1 - 1 1 - i f Date: f7
/ I A 1 1 /

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2010 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN

AT TA C H M E N T A

DOE/WAP Units Inspected DOE/ARRA Units Inspected — 14 ARRA/LIHEAP Units Inspected —

DOE/WAP Unit Returns — DOE/ARRA Unit Returns — 13 ARRA/LIHEAP Unit Returns -

Units Inspected 134933

Fund Source ARRA

Return Yes

Comments Return and address the followings: 1. HVAC, partially missing mastic at plenum 2. HVAC, gaps at plenum to ceiling 3. Soffit at hallway (hvac duct work pass through) missing tape and bed 4. Multiple holes at bathroom wall 5. Water Heater, missing drain line at TPRV valve 6. H VA C condensing unit, missing insulation at pressure line Return and address the followings: 1. HVAC, partially missing mastic at plenum 2. HVAC, loose tape at plenum 3. HVAC, no drain line at secondary condensation drain pan 4. Attic, partially missing insulation 5. Chase from first floor t o second floor attic not properly seal to prevent air infiltration 6. Insulation baffles not installed at roof decking to wall joint 7. Second floor, air infiltration at HVAC ductwork, ducts not sealed Return and address the followings: 1. HVAC, partially missing mastic at plenum 2. HVAC, loose tape at plenum 3. Attic, partially missing insulation 4. Chase from first floor t o second floor attic not properly seal to prevent air infiltration 5. Insulation baffles not installed at roof decking to wall joint Return and address the followings: 1. HVAC, partially missing mastic at plenum 2. H VA C , loose tape at plenum

134937

ARRA

Yes

134934

ARRA

Yes

134936

ARRA

Yes

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2010 WEATHERIZATION MONITORING REPORT CITY OF AUSTIN

3. A t t i c hatch not boxed 4. Chase from first floor t o second floor attic not properly seal to prevent air infiltration 5. Insulation baffles a t r o o f decking t o w a l l joint improperly installed 134920 ARRA Yes Return and address the followings: 1. H VA C , partially missing mastic at plenum 2. HVAC, loose tape at plenum 3. HVAC, missing mastic at duct joints 4. Attic, partially missing insulation 5. Chase from first floor t o second floor attic not properly seal to prevent air infiltration 6. Insulation baffles not installed at roof decking to wall joint Return and address the followings: 1. A i r infiltration at windows, tub surround, wall cracks, door frames, behind the recently installed vented space heater 2. Space heater not operational at time of monitoring 3. Improper insulation certificate at attic area 4. Health and Safety, stove rear left burner CO reading at 32ppm, above the 25ppm limit Return and address the followings: 1. Attic, missing insulation certificate 2. Attic, partially missing insulation 3. Attic, missing insulation shield at vent 4. HVAC, missing mastic a t duct w o r k and u n i t connections 5. A i r infiltration at wall cracks and wall joints, target not reached Return and address the followings: 1. Attic, partially missing insulation 2. Chase from first floor t o second floor attic not properly seal to prevent air infiltration 3. Insulation baffles not installed at roof decking to wall joint 4. H VA C , missing mastic at duct work 5. A t t i c access hatch not properly insulated 6. Need caulking at window frame 7. Missing sweep at front door 8. Entry door weatherstrip not properly adjusted

131734

ARRA

Yes

23865

ARRA

Yes

134922

ARRA

Yes

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2010 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN 134921

ARRA

Yes

Return and address the followings: 1. HVAC, partially missing mastic at plenum 2. H VA C , loose tape at plenum 3. H VA C , missing mastic at duct joints 4. Attic, partially missing insulation 5. Chase from first floor t o second floor attic not properly seal to prevent air infiltration 6. Insulation baffles not installed at roof decking to wall joint 7. Water Heater TPRV drain line not draining downhill 8. Cracked condensing unit pad

Return and address the followings: I. A i r infiltration at floor, cabinets, floor to wall joints 2. Water Heater, loose insulation at water lines 3. A t t i c inaccessible a t time o f inspection, provide pictures o f the installed weatherization measures at attic to include however not limited to insulation, rulers, insulation shield . 4 Health and Safety, stove rear left burner CO reading at 5. . 35ppm, above the 25ppm limit N EE-754BS ARRA Yes Return and address the followings: e 1. e HVAC, loose insulation at ducts 2. Exhaust fan does not vent to exterior d i3. Attic, missing insulation 4. Attic, hatch not boxed n s ME' ARRA Yes Return and address the followings: u Attic, insulation inconsistent, piled and spotty 755BS 1. l MMARRA No No a return warranted t 4803DS 59695 ARRA Yes i Return and address the followings: o H VA C , seal off existing units 1. n City of Austin must return and address alla units as indicated and include in it's response to this report a summary of all actions and measures taken to address the units indicated above. t e x t e r i o r w PAGE 8 OF 10 a l

14687

ARRA

Yes

2010 WEATHERIZAT1ON MONITORING REPORT CITY OF AUSTIN

AT TA C H M E N T B

1. 2.

1. 2.

1. 2.

1. 2.

1. 2. 3.

Client File # 134933 Install new A/C disconnect and whip. Install new condensing unit pad. Client File # 134937 Install new A/C disconnect and whip. Install new condensing unit pad. Client File # 134936 Install new A/C disconnect and whip. Install new condensing unit pad. Client File # 134920 Install new A/C disconnect and whip. Install new condensing unit pad. Client File # 23865 Install new A/C disconnect and whip. Fix other problems (walls) Replace or repair window

Questioned Cost: $694.23

Questioned Cost: $694.23

Questioned Costs; $694.23

Questioned Costs; $694.23

Questioned Costs; $811.00

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2010 WEATHERIZATION UNIT INSPECTION REPORT CITY OF AUSTIN

**THIS SECTION IS NOT TO BE INCLUDED IN THE MONITORING REPORT** In an effort to preserve client confidentiality, references made in this report in association with clients' multifamily dwelling units and addresses have been coded for clarification purposes. This coding system utilizes the multifamily complex's first letter o f the first word, first letter o f the last word and the complete number of the address or the client's first letter of the first word, first letter of the last word and the complete number of the address, Example John Doe Apartments are located at 123 Easy Street, The reference for this complex shall read JD123.

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TEXAS DEPARTMENT O HOUSING AND COMMUNITY AFFAIRS F
www.tellica.state.tx.us Rick Perry GOVERNOR BOARD MEMBERS C. Kent Conine, Chair Tom H. Gann, Vice Chair
Leslie B i n g h a m Escarefio Lowell A. Keig

Michael Gerber

EXECUTIVE DIRECTOR

Juan S. Munoz, Ph.D.
J. P a u l O x e r

April 11, 2011 Mr. Karl R. Rdbago VP for Distributed Energy Services Austin Energy 721 Barton Springs Road Austin, Texas 78704 Re: A R R A Weatherization Assistance Program Contract #16090000753 Dear Mr. Rabago: Enclosed is a report that details the March 21-25, 2011 monitoring review of City of Austin (COA) Weatherization Assistance Program contract with the Texas Department of Housing and Community Affairs (the Department). This information is provided to ensure that compliance with the contract is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical manner. The monitoring report includes one (1) finding. Please submit a response to this report to this office within thirty (30) days of the date of this letter. If we can be of any assistance, please feel free to contact David Escamilla, Senior Program Officer, at (512) 475-3859. The assistance provided to the Program Officers by the agency is greatly appreciated. Sincerely,

Sharon D. Gamble Manager Energy Assistance Section Community Services Division cc: Mr. Marc A. Ott, City Manager

221 EAST 1 1 111 • P . O .

0 Printed an recycled paper

WAP MONITORING REPORT FOR CITY OF AUSTIN

Directory of Monitoring Sections Section I. F i n a n c i a l Review Section II. T r a v e l and Timesheets Section III. G e n e r a l Liability and Pollution Occurrence Insurance Section IV. P r o p e r t y Management Section V. Procurement Section VI. A u d i t Section VII. Personnel Policies and Practices Section VIIL Performance Review/Onsite Inspections Section IX. Administrative Section X. C l i e n t File Review/Multifamily Review Section XL D e n i e d Files

RAGE 2 OF 8

WA P MONITORING REPORT FOR CITY OF AUSTIN

DATES OF REVIEW: M A R C H 21 - MARCH 25, 2011

F o c u s OF REVIEW
CONTRACT NAME ARRA CONTRACT NUMBER 16090000753 CONTRACT AMOUNT $5,969,774.00 CONTRACT DATES 9/1/2009 to 8/31/2011

On-site review of City of Austin's (COA) implementation of the Department of Energy's ARRA Weatherization Assistance Program (WAP). Specific areas o f review included Financial Reporting, Contract Agreements, Procurement, Personnel, and the Management o f WAP contract.

PROGRAM EVALUATION
The evaluation of the program consisted of interviews with City of Austin personnel, analysis of the fiscal system, review of programmatic records, on-site inspections, client interviews, and inventory review.

The following issue was noted during the review:
• Inadequate final inspection procedures.

PAGE 3 OF 8

W A P MONITORING REPORT FOR CITY OF AUSTIN

Section I. Financial Review
EXPENDITURES AS OF FEBRUARY 2 0 11

CONTRACT NAME ARRA

YEAR-TO-DATE EXPENDITURES $3,087,662.59

% OF ORIGINAL CONTRACT AMOUNT 51.72%

# UNITS COMPLETED 619

# UNITS IN PROGRESS 205

Section VIII. Performance Review
Finding #1: Inadequate Final Inspection Procedures

Onsite inspection of weatherized units revealed that eleven (11) of the forty-one (41) units inspected would require a return t o address deficiencies i n subcontractor workmanship. Deficiencies include but were not limited to: no heat shields at combustible vents in attic, insulation in contact with heat source vents, and Blower Door reading variances in duplex units inspected.
Action

Required: C O A must return to the client units listed in Attachment A and address the deficiencies noted on each unit. If further final inspection training is needed, COA should contact the Department's training staff immediately. Further, the Department requires that COA develop, implement and monitor procedures to ensure that final inspections will detect future instances o f poor workmanship from its subcontractors. Those measures at a minimum should include both periodic visits to client units while work is in progress and ensuring that final inspections conducted once all work is finished, verify that the quality of work that is being performed meets COA requirements and the Department's expectations. After such procedures arc developed, COA must train all relevant weatherization staff. A s part of the response to this report, COA must provide to the Department written documentation of the procedures and training.
Reference: 10 CFR Part 440; 040.16 (g).

PAGE 4 OF 8

W A P MONITORING REPORT FOR CITY OF AUSTIN

Texas Department of Housing and Community Affairs representatives; David Escamilla, John Nunley, and Paul Arriola, participated in an exit conference with Mr. Karl Rabago, Mr. Fred Yebra, Mr. Stephen Leinweber, Mr. Steve Saenz, Mr. Joe Guerrero, Mr. Jack Pinala, Mr. Everett Mead, Mr. Rusty Smith, Ms. Irene Avifia, and Ms. Darlene Berghammer.

Signature: David Escamilla, CGAP, Senior Program Officer

/ O / D i / Date

Signature: Nunley, Inspection S p e c i i D a t e

Signature:

6 ul • i la, Inspection Specialist

-b/ Date I ,;o //

PAGE 5 OF 8

WA P MONITORING REPORT FOR CITY OF AUSTIN

COA is reminded that pursuant to Weatherization Program Notice 11-03: Policy Regarding the use of DOE Program Funds to Pay for Call-back/Add-on Work after Reported to DOE as a Completed Unit, DOE funds may only be used to complete required return work on units completed prior to January 10, 2011.

AT TA C H M E N T A

DOE ARRA Units Inspected —41 Units Fund Source Return Inspected 31558 ARRA Yes

DOE ARRA Unit Returns — 11 Comments Return and address the following: Insulation i n contact w i t h combustible vents i n attic. Install heat shields around vents and allow for at least 2" (inch) clearance. Return and address the following: Batt insulation used as dams at combustion vents and are touching vents with no clearance. M o v e Batt insulation away from vents and allow for at least 2" (inch) clearance. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. Return and address the following: Batt insulation touching combustible vents in attic. Move Batt insulation away from vents and allow for at least 2" (inch) clearance. No Return Required. Return and address the following: Insulation touching heat source vents in attic. Install heat

129950

ARRA

Yes

106043 121981 135608 134223 136088 136039 136455 136198 136456 136038 136034 136146 136324 38057

ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA

No No No No No No No No No No No No No Yes

135866 107457

ARRA ARRA

No Yes

PAGE 6 OF 8

WAP MONITORING REPORT FOR CITY OF AUSTIN

135791 63145 120341

ARRA ARRA ARRA

No No
Yes

shields around vents and allow for at least 2 " (inch) clearance. No Return Required. No Return Required.
Return and address the following:

1.. Block all heat source vent pipes in attic, and insure at least 1" (inch) clearance at roof. . 2 . Unclog furnace hi/lo vent pipes, and insure clearance from insulation. 17532 ARRA ARRA ARRA
Yes Return and address the following:

15607 135941

No
Yes

Block all heat source vent pipes in attic, and insure at least 1" (inch) clearance at roof No Return Required.
Return and address the following:

127264
45214

136682 129972 129956 136149 135839 135838 13 6327 129955 135879 135365 136120

ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA 'ARRA ARRA ARRA ARRA

No

No No No No No No No No No Yes

1. Block all heat source vent pipes in attic and insure at least 1" (inch) clearance at roof 2. Install lo vent pipe. -3. Repair torn duct. 4. Caulk cracks; front in bedroom, furnace closet, wall plate behind stove, and kitchen cabinets, and medicine cabinets i n bath. Note: Monitoring Blower Door reading was 1550 CFM @ 50 Pa, which was higher than Pre-WX reading of 1000 CFM @ 50 Pa, and Final Inspection reading of 862 CFM @ 50 Pa. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required. No Return Required.
Return and address the following:

Block all heat source vent pipes in attic, and insure at least 1" (inch) clearance at roof.
Yes Return and address the following:

Block all heat source vent pipes in attic, and insure at least 1" (inch) clearance at roof ARR,A Yes
Return and address the following:

1. Block all heat source vent pipes in attic, and insure at least 1" (inch) clearance at roof. 2. Install two (2) window panes; one in Living Room

PAGE 7 OF 8

~ Ͳ

W A P MONITORING REPORT FOR CITY OF AUSTIN

56836 24867 135869

ARRA ARRA ARRA

No No
Yes

and one in 2 have cardboard panes. nd 3. Installd r o B e additional insulation up to R-38. 4. Insulate water heater lines. o m ; 5. Seal crack between furnace closet doors. b o Questioned Costs: t h BWR reflected charge o f $70.00 for low-flow shower w i head installation. However, item was not installed. COA n to must return d install item and provide the Department o w evidence documentation of installation. s No Return Required. c u No Return Required. Return rand raddress the following: I. Seal furnace closet. e n 2. Install additional insulation up to R-38. N o t e : t l Current insulation level is R-30. y

Action Required: COA must return and address all units as indicated above and include in its response to this report a summary of all actions and measures taken to address the units indicated above.

PAGE 8 OF 8

TEXAS DEPARTMENT OF HOUSING AND COMMUNI1Y AFFAIRS
Rick Petty mari ghib ea.s l ate. txd u

BOARD MEMBERS
C. Kent Conine, Chair To m IT. Gann, Vice Chair Leslie Binghatn-Esearetio Lowell A. Keig Juan S. Mutioz, P11.1) J. Paul axes

GOVERNOR

512-475-0471 Email: sharon.gamble@tdhca.state.tx.us

July 14, 2011 Mr. Karl R. Rabago VP for Distributed Energy Services Austin Energy 721 Barton Springs Road Austin, Texas 78704 Re: D O E / A R R A Weatherization Assistance Program Contract #16090000753 Dear Mr. Rabago: Enclosed is a report that details the monitoring review conducted June 20-24, 2011 of City of Austin's Weatherization Assistance Program contract with the Texas Department of Housing and Community Affairs (the Department). This information is provided to ensure that compliance with the contracts is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical manner. The monitoring report includes three (3) findings and one (1) recommended improvement. Please submit a response to this report to this office within thirty (30) days of the date of this letter. If we can be of any assistance, please feel free to contact Kevin Glienke, Program Officer, at (512) 4753852. The assistance provided to the Program Officers by the agency is greatly appreciated. Sincerely,

Sharon D. Gamble Manager Energy Assistance Section Community Affairs Division Cc: M a r c A. Ott, City Manager Joe Guerrero, Program Manager
221 E a s t i l t h - P. O . B o x 13941 - A u s t i n , Te x a s 78711-3941 - (800) 5 2 5 - 0 6 5 7 - (512) 4 7 5 - 3 8 0 0

Directory of Monitoring Sections
Section Section Section Section IV. Section V. Financial Reporting Travel and Timesheets General Liability and Pollution Occurrence Insurance Property Management Procurement

Section VI. A u d i t Section VII. Personnel Policies and Practices Section VIII. Performance Review Section IX. Administration Section X. Section XI. Section XII. Multifamily Denied Files Board Composition

2010 MONITORING REPORT
City of Austin

Dates of Review: J u n e 20—24, 2011
FOCUS OF R E V I E W

CONTRACT NAME DOE/ARRA

CONTRACT NUMBER 16090000753

CONTRACT AMOUNT $8,089,744.00

CONTRACT DATES 9/1/2009 to 8/31/2011

On-site review of City of Austin's (COA) implementation of the Department of Energy's and Low Income Home Energy Assistance Program's Weatherization Assistance Program (WAP). PROGRAM EVALUATION The evaluation o f the program consisted of: interviews with COA personnel, analysis o f the fiscal system, review of programmatic records, inventory review, review of client files, and onsite unit inspections.
The following was noted during the review:

• Inadequate final inspection techniques. • Inadequate support documentation. • C l i e n t File Documentation Inconsistencies.
EXPENDITURES AS OF M AY 2011 CONTRACT NAME YEAR-TO-DATEEXPENDITURES % OF TOTAL CONTRACT AMOUNT 56.13% # UNITS COMPLETED # UNITS IN PROGRESS

DOE/ARRA #16090000753

$4,541,061.27

892

295

Section VIII. On-Site Inspections
Finding in: Inadequate Final Inspection Techniques:

Upon review and inspection of thirty-eight (38) units, it was revealed that COA is not thoroughly conducting final inspections: which includes both subcontractor workmanship deficiencies and failing t o conduct CO tests o n combustion appliances. A) Onsite inspection of weatherized units revealed that twenty-two (22) o f the units inspected would require a return to address deficiencies i n final

PAGE 2 OF 9

2010 MONITORING REPORT City of Austin

inspection techniques and subcontractor workmanship. Deficiencies included: high CO readings, inconsistent blower door readings that led to inadequate air sealing techniques, measures billed that were not installed, and issues with the water heater. B) Review o f client files revealed that COA was not performing carbon monoxide tests o n a l l combustion appliances during final inspections, regardless of appliance replacement or not. The Department recognizes that COA is documenting CO tests of all combustion appliances from the initial assessment, but without documentation of a CO test at the final inspection, there is no documentation that the appliances remained at a safe level for the client when the weatherization work was completed. The Department also reminds COA that there are spaces on the BWR, which is a program-required form, for the results of CO tests from the final inspection. Action Required: A s part of the response to this report, COA must: A) Return to the client units listed in Attachment A and address the deficiencies noted on each unit. COA must also assure the Department in its response to this report that proactive measures will be taken to prevent future instances of poor workmanship from its subcontractors. Those measures at a minimum should include periodic visits to client units while work is in progress, to ensure that the quality o f work that i s being performed meets COA's requirements, and the Department's expectations. The Department requires COA have a process to verify all measures installed in the house, including duct sealing. Reference: 10 CFR Part 440; 040.16 (g) B) The Department requires that C O A develop, implement and monitor procedures to ensure that final inspections will detect future instances o f health and safety issues. A f t e r such procedures are developed, COA must train all relevant weatherization staff and provide to the Department written documentation o f t h e procedures a n d training. Reference: Te x a s Administrative Code, Rule §5.528 Recommended Improvement #1: The Department reminds COA that it is required to conduct a whole house assessment for each and every unit. In instances where certain measures are not applicable or unable to be installed, for whatever reason, COA should document the file thoroughly to explain those cases to show that every potential opportunity has been considered and initially assessed. Possible opportunities for additional work consideration that were noted during the monitoring trip could include: additional air sealing measures; window sealing. Reference: OMB Circular A-110; Texas Administrative Code §5.524, §5.526, §5.527, and §5.529 Finding #2: Inadequate Support Documentation on units inspected during monitoring visit result in questioned and/or disallowed costs. Review of client files and subsequent unit inspection visits revealed that there were multiple measures paid for with ARRA funds without proper justification. Questioned and Disallowed costs are outlined by unit in Attachment B.

PAGE 3 OF 9

2010 MONITORING REPORT City of Austin (A) Total Disallowed Cost: $653.17.

Reason for disallowed costs is contractor charge for the installation of a new stove that was replaced by the client's daughter.
(B) Total Questioned Cost: $1,861.89.

Reasons for questioned costs are as follows: (1) Replacement of measures, such as: appliances, attic hatches, doors without proper justification in client file or the measures were not installed in the house at time of monitoring. (2) Discrepancies in square footage between billed installation of solar screens and amount o f installed square footage installed at time o f monitoring.
Action

Required: ( A ) For disallowed costs, COA must submit a check to the Department for those unjustified measures outlined in Attachment B. This amount will be credited back to the Health & Safety line item of contract #16090000753. The contract number and Budget Line Item for this Health & Safety issue must be labeled on the check
as disallowed costs. Reference: O M B Circular A-110; Subpart A; Section 2 (k); Texas Administrative Code 0 . 1 (c)

(B) For questioned costs, COA must submit to the Department, as part of the response to this report, either: (1) a check to the Department reimbursing for those unjustified measures outlined in Attachment B; or (2) sufficient documentation that the measures questioned are properly justified. Sufficient documentation that the all the measures that were installed were properly justified should include photographic documentation whenever applicable. Reference: 10 CFR Part 440,
§440.18; 10 CFR Part 000.121 (3); DOE ARRA Contract Section 11; Texas Administrative Code §5.1 (c); Texas Administrative Code §5.606

Section IV. Client File Review
Finding #3: Inconsistent Client File Documentation:

A review o f thirty-eight (38) COA client files revealed inconsistencies in the required documentation for client files. (A)One (1) file (2010-00A-0960) had an incomplete application. (B) One (1) file (2010-00A-0960) had income documentation that was more than a year old. (C) Three (3) files (2010-00A-0740, 2010-00A-0738, 2010-00A-1198) had incomplete assessments. Issues with the assessments were as follows: incomplete documentation regarding replacement of a stove and/or door, and assessment forms not signed or dated. (D) Nine (9) files (2010-00A-1179, 2010-00A-0923, 2010-00A-1338, 2010COA-0738, 2010-00A-1055, 2010-00A-0634, 2010-00A-1124, 2010COA-0990, 2010-00A-0515) were missing the signature date on the BWR certification page. (E) One (1) file (2010-00A-1179) was missing a blower door sheet.

PAGE 4 OF 9

2010 MONITORING REPORT City of Austin

(F) Two (2) files (2010-00A-1077, 2010-00A-0776) had an incomplete blower door sheet. (G)Two (2) files (2010-00A-1172, 2010-00A-1176) had miscalculated Building Tightness Limits. (H)Nine (9) files (2010-00A-1198, 2010-00A-0634, 2010-00A-0960, 2010COA-0553, 2010-00A-0923, 2010-00A-0515, 2010-00A-0807, 2010COA-0212, 2010-00A-0807) had incomplete attic and/or wall inspection forms. (I) A l l files reviewed were missing signatures on the mold/moisture assessment form.
Action

Required: A s part of the response to this report, COA must: (A)For the file listed in parts (A) and (B) above, provide copies of the completed application and the proper income documentation or the funds used for those homes may be subject to disallowed costs. This client application is without a date, so determination of client eligibility was not possible with an application
date to refer to. Reference: Texas Administrative Code, Rule §5.19; Rule 0.507

(B) Continue to develop and update their client file documentation standards to ensure that all forms addressed in parts (A) —(1) are completed fully and any omissions are clearly explained and recorded i n each file. COA should develop a policy to ensure that all information from the unit that will be inputted into the NEAT are supported with documentation in the client file.
Reference: ARRA Contract Section 13; 10 CFR Part 440; §440.24; Texas Administrative Code Rule 0 . 1 (c); §5.522; §5.523; §5.526; §5.529; §5.530; W P N 09-6; E PA Final Rule; Building Weatherization Report Instructions

Texas Department of Housing and •Community Affairs representatives: Kevin Glienke, Ruben Mercado, and Mike Missler participated in an exit conference with COA representatives: Karl Rabago, Steve Saenz, Joe Guerrero, Stephanie Koudelka, Jack Pittala, Marie Hernandez, Fred Yebra, Stephen Leinweber, Irene Avina, and Rusty Smith. Signature: Kevin Glienke, Program Officer Date

/

PAGE 5 OF 9

2010 MONITORING REPORT City of Austin

AT TA C H M E N T A
DOE WAP Units Inspected—0 DOE ARRA Units Inspected - 38 LIHEAP Units Inspected—0
T O TA L Units INSPECTED —38

DOE WAP Units Returns— N/A DOE ARRA Units Returns - 20 LIHEAP Units Returns —N/A
T O TA L Returns — 20

Units Inspected 201000A-1250 201000A-0020

Fund Source ARRA ARRA

Return

Comments

201000A-0640

ARRA

201000A-0227 201000A-1249 201000A-0923 201000A-0738

ARRA ARRA ARRA ARRA

201000A-0740

ARRA

201000A-097 I

ARRA

Units Inspected by MM No No return required. Yes Return to address the following: Baffles not installed around new heater flue pipe. *Note - Target blower door reading is 2655 cfm @ -50pa. Monitoring blower door reading i s 3550 cfrn @ -50. Infiltration voids are present at the following areas: sides of windows, around scuttle hatch, interior doors missing c a s i n g s , sheetrockbeneaththenewheater. Yes Return to address the following: 1. A non-programmable thermostat was installed. 2.Attic access hatch is caulked/sealed shut. Ve r i f y that proper levels o f insulation were installed along with proper baffling, markers, and certificate. *Note - Target blower door reading is optional. Initial cfm is 1892 @ -50pa. Monitoring blower door reading is 2765 cfm @ -50. H o u s e is 873 cfm higher than initial cfm reported. No No return required. Yes Return to address the following: A low flow shower head was not installed as per the BWR. Yes Return to address the following: A/C condenser pad was not replaced as per the BWR. Yes Return to address the following: The stove had high CO readings at time of monitoring. RR burner—41ppm *Return to clean or repair cook top burner. Yes Return to address the following: Insulation was not installed on the water heater piping as per the BWR. *Note - Target blower door was not achieved. Target is 2366 cfm @ -50 pa. Blower door at monitor visit was 2898 @ -50pa. Yes Return to address the following: Initial blower door was incorrectly reported as 1052 cfm @ -50pa. Blower door at monitor visit was 2205 efm @ -50pa. Infiltration voids are present at the following areas: • Gaps are present at the wall/ceiling transitions o f the master bedroom and at the brick/wall transitions of the fireplace.

PAGE 6 OF 9

2010 MONITORING REPORT
City of Austin

201000A-1077 201000A-1338

ARRA ARRA

No No

201000A-0553 —

ARRA

No

201000A-1165 201000A-1169 201000A-1170 201000A-1171 201000A-1176 201000A-1172

ARRA ARRA ARRA ARRA ARRA ARRA

No No No No No Yes

201000A-1 179 201000A-1175 201000A-1173 201000A-1162

ARRA ARRA ARRA ARRA

No No No Yes

No return required. No return required. *Note - Target blower door was not achieved. Target is 2214 cfm @ -50 pa. Blower door at monitor visit was 2620 @ -50pa. No return required. *Note - Target blower door reading is optional. Initial cfm is 1920 @ -50pa. Monitoring blower door reading is 2388 efm @ -50. H o u s e is 468 cfm higher than initial cfm reported. No return required. No return required. No return required. No return required. No return required. Return to address the following: BTL is improperly calibrated. House is below BTL. BTL is 1212 cfm @ -50pa. Blower door at monitor visit is 1001 efm @ -50pa. *Return to address BTL issue with additional venting to return unit above BTL. No return required. No return required. No return required. Return to address the following: 1. Baffling was not installed around the attic access. 2. Broken glass was not replaced (right front window).

2010-00A-0984

ARRA

Yes

2010-00A-0679 2010-00A-0212

ARRA ARRA

Yes Yes

Units Inspected by RM Return to address the following: The stove/oven had high CO readings at time of monitoring. RR burner—79pprn Oven—208ppm *Return to clean or repair cook top burner and oven.
Return to address the following:

CO detector not working properly.
Return to address the following:

2010-00A-1124

ARRA

Yes

2010 00A 0807

ARRA

Yes

I. The stove had high CO readings at time of monitoring. LR burner—37ppm 2. Installed wall heater is not level on wall. Return to address the following: Furnace access door was sealed shut with caulking; client not able to access to change filter. Return to address the following: The stove had high CO readings at time of monitoring.
RR burner—44ppin *Return to clean or repair cook top burner.

PAGE 7 OF 9

2010 MONITORING REPORT City of Austin 2010-00A-0960 2010-00A-0961 2010-00A-1055 ARRA ARRA ARRA No Yes Yes

No return required. Return to address the following: No baffling around heat sources in the attic. Return to address the following:
The stove had high CO readings at time of monitoring. RR burner—60ppm Center burner—92ppm *Return to dean or repair cook top burner.

2010-00A-0634 2010-00A-0515 2010-00A-1127 2010-00A-1217 2010-00A-0801 2010-00A-1240 2010-00A-1241

ARRA ARRA ARRA ARRA ARRA ARRA ARRA

Yes Yes No No No No Yes

Return to address the following: 1. No baffling around heat sources in the attic. Return to address the following: No baffling around heat sources in the attic. No return required. No return required. No return required.
No return re•uired.

Return to address the following: The stove had high CO readings at time of monitoring. LR burner—45ppm
*Return to clean or repair cook top burner.

2010-00A-0776

ARRA

Yes

Return to address the following: According to client, replacement DWH pilot turns off 4-5 times per month. Re-inspect DWH.

COA must return and address all units as indicated and include in its response to this report a summary o f all actions and measures taken to address the units indicated above. COA is reminded that pursuant to Weatherization Program Notice 11-03: Policy Regarding the use of DOE Program Funds to Pay for Call-back/Add-on Work after Reported to DOE as a Completed Unit, DOE funds may only be used to complete required return work on units completed prior to
January 10, 2011.

PAGE 8 OF 9

2010 MONITORING REPORT City of Austin

AT TA C H M E N T B Unit Inspected 2010-00A-1250 Questioned $$$ Amount
$67.92

Comments Solar screen amount on the BWR is 33.67sq/11. Solar screens verified on site are 6,5sq/ft. Question cost of difference for 27.17 square feet. Solar screens were not installed on south facing windows as per the work order instructions and BWR — 43.12 sq feet not installed. Question cost of difference, 1. O v e n w a s replaced w i t h o u t proper documentation for high CO readings - $653.17 2. Refrigerator was not replaced as per the BWR - $583.00 Rear d o o r w a s replaced without proper approval. The attic access was billed for replacement. The homeowner verified that it did not appear any different than prior t o the work being
performed.

Disallowed $$$ Amount $0.00

2010-00A-0020

$107.80

$0.00

2010-00A-1077

$1,236,17

$0.00

2010-00A-1338 2010-00A-0227

$367.00

$0.00 $0.00

$83.00

2010-00A-0801

$0.00

Disallowed cost for stove replacement. Client's daughter paid for the new replacement stove. Contractor invoiced for new stove. *All DOE ARRA funds*

$653,17

TO TA L

$1,861•89

$653.17

PAGE 9 OF 9

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
)1amaldheastate.txas BOARD MEMBERS

Rick Perry GOVERNOR

October 12, 2011

J. Paul Oxer, Chair Tom H. Gann, Vice Chair C. Kent Conine Leslie Bingham-Escarefio Lowell A. Keig Juan S. Mutioz, PhD

Writer's direct phone # 512-475-0471 Emall:sharon,gamble@tdhca,state,Ix,us

Mr. Karl R. Rabago VP for Distributed Energy Services Austin Energy 721 Barton Springs Road Austin, Texas 78704 Re: A R R A Weatherization Assistance Program Contract 1416090000753 Dear Mr. Rabago: Enclosed is a report that details the September 19-22, 2011 monitoring review of City of Austin (COA) Weatherization Assistance Program contract with the Texas Department of Housing and Community Affairs (the Department). This information is provided to ensure that compliance with the contract is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical manner. The monitoring report includes three (3) findings, two (2) recommended improvements and one (1) note. Please submit a response to this report to this office within thirty (30) days of the date of this letter. If we can be of any assistance, please feel free to contact Michael Podoloff, Program Officer, at (512) 936-7830. T h e assistance provided to the Program Officers by the agency is greatly appreciated. Sincerely, Sh o n D. Manager EnergyEAssistance Section n e r g y Community Services Division cc: Mr. Marc A. Ott, City Manager
SDGiMP

221 E a s t 11 th - P. O . B o x 13941 - A u s t i n , Te x a s 7 8 7 11 - 3 9 4 1 - (800) 5 2 5 - 0 6 5 7 - (512) 4 7 5 - 3 8 0 0

2 0 1 0 A R R A / W A P MONITORING REPORT

City of Austin

Dates of Review: S e p t e m b e r 19—22, 2011 Focus OF REVIEW CONTRACT NAME DOE/ARRA CONTRACT NUMBER 16090000753 CONTRACT AMOUNT $8,090,874.00 CONTRACT DATES 9/1/2009 to 12/31/2011

On-site review o f City o f Austin's (COA) implementation o f the Department o f Energy Weatherization Assistance Program (WAP).
PROGRAM E VA L U AT I O N

The evaluation of the program consisted of: interviews with Austin Energy personnel, review of client files, and on-site unit inspections.
The following was noted during the review:

• • • • •

Inadequate final inspection techniques. Inadequate support documentation. C l i e n t File Documentation Inconsistencies. Health and Safety—Lead. L a c k of documented procedures for handling WAP applications from employees
EXPENDITURES AS OF September 2011

CONTRACT NAME

YEAR-TO-DATEEXPENDITURES

% OF TOTAL CONTRACT AMOUNT 68.39%

fl UNITS COMPLETED 1139

# UNITS IN PROGRESS 280

DOE/ARRA #16090000753

$5,533,601.99

PAGE 1 OF 10

2 0 1 0 A R R A / W A P M O N I T O R I N G R E P O RT

City of Austin

Section VIII. On-Site Inspections
Finding #1: F i n a l Inspections:

Upon review and inspection of forty-four (44) units, it was revealed that COA is not thoroughly conducting final inspections: which includes both subcontractor workmanship deficiencies, failing to conduct duct blaster test outs and failing to conduct CO test outs on combustion appliances. A) Onsite inspection o f weatherized units revealed that six (6) o f the units inspected would require a return to addreSs deficiencies in final inspection techniques and subcontractor workmanship. Deficiencies included: UVSH left at residence, inadequate air sealing techniques, measures billed that were not installed, and flue vents not being installed properly. B) Review o f client files revealed that COA was not performing carbon monoxide tests o n a l l combustion appliances during final inspections, regardless of appliance replacement or not. COA was also not performing duct blaster testing after HVAC units were replaced. The Department recognizes that COA i s documenting duct blaster test results and CO tests o f all combustion appliances from the initial assessment, but without documentation of a CO test at the final inspection, there is no documentation that the appliances remained at a safe level for the client when the weatherization work was completed. There is no way to know i f the ducts were properly sealed without running the duct blaster at test out. The Department also reminds COA that there are spaces on the BWR, which is a program-required form, for the results of CO tests from the final inspection.
Action

Required: A s part of the response to this report, COA must: A) Return to the client units listed in Attachment A and address the deficiencies noted on each unit. Sufficient documentation, to be submitted with response to this report, should include photo documentation that COA has returned to the units and installed the measures properly. C O A must also assure the Department in its response to this report that proactive measures will be taken to prevent future instances of inadequate workmanship from its subcontractors and final inspections. Those measures at a minimum should include periodic visits to client units while work is in progress, to ensure that the quality of work that i s being performed meets COA's requirements, and t h e Department's expectations. The Department requires COA have a process to verify all measures installed in the house, including duct sealing. Reference:
10 CFR Part 440; 040.16 (g)

B) The Department requires that C O A develop, implement and monitor procedures to ensure that final inspections will detect future instances o f health and safety issues and ensure that duct blaster tests are being run at final inspections when the HVAC unit is replaced. After such procedures are

PA G E 2 OF 1 0

2 0 1 0 A R R A / W A P MONITORING REPORT City of Austin

developed, COA must train all relevant weatherization staff and provide to the Department written documentation of the procedures arid training. Reference:
Texas Administrative Code, Rule 0.528; IRC 2009 Section N1103 Finding #2: I n a d e q u a t e Support Documentation on units inspected during monitoring visit

result in questioned and/or disallowed costs. Review of client files and subsequent unit inspection visits revealed that there were multiple measure's paid for with ARRA funds without proper justification. Questioned and Disallowed costs are outlined by unit in Attachment B.
(A) Total Disallowed Cost: $779.73

Reason for disallowed costs is contractor charge for the installation of a digital thermostat when there was already a digital thermostat in the unit and a secondary unvented space heater with an oxygen depletion sensor was installed using DOE ARRA funds.
(B) Total Questioned Cost: $70,536.18

Reasons for questioned costs are as follows: (1) Replaced HVAC units but did not have Manual J's to justify sizing of replacement units. (2) Charged for installation of an item that was not present at time of monitoring
Action

Required: ( A ) For disallowed costs, COA must reimburse the ARRA WAP $779,73. Evidence of this reimbursement, in the form of a journal entry and/or general ledger transfer showing the costs removed from the ARRA WAP grant and charged to another funding source, must be submitted as part of the response to this report. Along with the journal entry, please submit the current chart of accounts that clearly identifies the funding source. Additionally the budget line item must be identified (Health and Safety) (Material and Labor) Reference:
O M B Circular A-110; Subpart A; Section 2 (k); Texas Administrative Code §5.1 (c)

(B) For questioned costs, COA must submit to the Department, as part of the response to this report, either: (1) evidence of reimbursement of $70,536.18 to the Department for those unjustified measures outlined in Attachment B; or (2) sufficient documentation that the measures questioned are properly justified. Sufficient documentation that all the measures that were installed were properly justified should include photographic documentation whenever applicable and properly run Manual J's justifying the sizing o f the H VA C replacements.
Reference: 1 0 C F R P a r t 440, 0 4 0 . 1 8 ; 1 0 C F R P a r t 000.121 (3); D O E ARRA Contract Section 11; Texas Administrative Code §5.1 (c): I R C 2009 M1401.3

Section IV. Client File Review
Finding #3: I n a d e q u a t e Support Documentation:

PAGE 3 OF 10

2010ARRA/WAP MONITORING REPORT
City of Austin

A review o f forty-four (44) COA client files revealed inconsistencies in the required documentation for client files. (A)One (1) file (7498) was missing the R value on the attic inspection form. (B)Five (5) files (137997, 137963, 138015, 138019, 138013) were missing window and/or foundation information on the assessment forms. (C)Four (4) files (137965, 137982, 137966, 91426) were missing the final duct blaster readings and the HVAC unit was replaced (D)Two (2) files (137978, 137974) had a final blower door reading after the BWR certification date (E) Twenty-two (22) files (138350, 137997, 138012, 138011, 138010, 138009,
137988, 137961, 138044, 138014, 137963, 138015, 137985, 137965, 137966, 137972, 137974, 1 3 7 9 7 8 , 1 3 8 5 7 4 , 1 3 7 9 8 2 , 137981, 138013) h a d

miscalculated Building Tightness Limits. (F) Nine (9) files (7498, 26925, 137246, 55380, 25295, 15985, 138265, 133866, 137474) had incorrect and/or were missing pre/post CO readings on BWR.
Action

Required: A s part of the response to this report, COA must continue to develop and update their client file documentation standards to ensure that all forms addressed in parts (A) - (F) are completed fully and any omissions are clearly explained and recorded in each file. A copy o f the policy must be submitted as part o f the
response to this report. Reference: A R R A Contract Section 13; 10 C F R Part 440; 0 4 0 . 2 4 ; Texas Administrative Code Rule §5.1 (c); §5.529; §5.530; Building Weatherization Report Instructions; IRC 2009 N1103

Recommended Improvement #1: N o files reviewed at COA required LSW practices to be followed. However, conversation with COA staff revealed a lack o f required EPA RRP documentation in the client files supporting the charges of Lead Safe work being applied to the applicable houses. The Department reminds COA, in order to be in compliance with EPA rules, all files in which Lead Safe Work practices are required must contain the following; the lead hazard form, a copy of the record keeping checklist and photos of the work site to include set up, posted warning signs and the clean-up process. Reference: Texas Administrative Code; Title
10; Part 1; Chapter 5; Subchapter E; Rule 0.524; Weatherization Program Notice 09-6; EPA Final Rule

Note #1: T h e Department reminds COA that i t i s required t o conduct a whole house assessment for each and every unit in a multifamily complex. Review of client files revealed the assessors were documenting "floor plan B", instead of sketches of the individual units in some instances. The sketch is needed in order to verify the orientation of the windows which helps the monitor verify if solar screens were needed.

Section I X Administrative
Recommended Improvement #2: Conversation w i t h C O A s t a ff revealed there i s n o documented procedure for handling WAP applications from their own employees. COA does require that applications for their own employees are both eligible and appropriately prioritized;

PAGE 4 OF 10

2 0 1 0 A R R A / WA P MONITORING REPORT

City of Austin

however there is no formal procedure. As a best practice, the Department recommends that COA develop a written policy detailing the procedures for handling WAP applications from their own employees to ensure consistency, and then have that policy approved by its board. Having such a policy in place will assist COA should questions about employee applications arise in the future. Reference: Texas Administrative Code §5.507; §5.504; ARRA Contract Section 26

Texas Department of Housing and Community Affairs representatives: Michael Podoloff, Abe Prugannan, and Mark Denton participated in an exit conference with COA representatives: Karl Rabago, Steve Saenz, Joe Guerrero, Jack Pittala, Stephen Leinweber, Irene Avina, and Rusty Smith.

Signature: * Michael Podoloff, Program Officer 7 1
Date

I° / 7 / 1 1

PAGE 5 OF 10

2 0 1 0 A R R A / WA P MONITORING REPORT

City of Austin

AT TA C H M E N T A
DOE WAP Units Inspected—0 DOE ARRA Units Inspected - 44 LIHEAP Units Inspected—0
T O TA L Units INSPECTED — 6

DOE WAP Units Returns— N/A DOE ARRA Units Returns - 6 LIHEAP Units Returns— N/A
T O TA L Returns — 6

Units Inspected 137524 25295 15985

Fund Source ARRA ARRA ARRA

Return

Comments

Yes

Single Family Units .
1. Co detector was not installed. Return to address the following: 1. Escutcheon is loose in HVAC closet and insulation is falling down into closet. Return to address the following: 1. Blower door target was not met: seal crack in floor between front bedroom and den, seal back bedroom closet and seal above door in hallway to back bedroom 2. Flue vent for wall furnace is coming apart at elbow. Needs to be re-attached. 3. Pipe insulation on water heater wasn't installed properly. Need to add zip ties and ensure actually around pipes 4. Unvented gas space heater with no oxygen depletion sensor was left at residence ***Contractor removed from
property on site and was visually inspected to no longer be present*** Return to address the following:

Yes Yes

138265

ARRA

Yes

Return to address the following:

I. Unvented gas space heater with no oxygen depletion sensor left in home. Space heater not in compliance with Department of Energy WPN 08-4. 2. Attic scuttle hole was screwed shut
133866 ARRA Yes Return to address the following: 1. Attic access stairs falling out o f ceiling; return to repair.

137474

ARRA

Yes

2. Side door from garage conversion to outside was not weather stripped and sunlight is visible. . 3. Insulation was missing from underneath attic flooring areas
Return to address the following:

7498
26925

137246 55380

ARRA ARRA ARRA ARRA

No No No No

1. Attic hatch was not blocked and insulation is falling into household when opened. 2. Rain cap was missing on existing furnace vent.
No return required. No return required. No return required. No return required. Multi Family Units

PAGE 6 OF 10

2010ARRA/WAP MONITORING REPORT City of Austin
137961 138018 138036 137988 138009 138010 138011 138012 137997 138004 138350 137120 138013 138019 138021 138033 138020 138034 138035 137981 137982 138574 137978 137974 137972 137966 137965 137985 138015 137963 138014 91426 91436 138044 ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required.

COA must return and address all units as indicated and include in its response to this report a summary o f all actions and measures taken to address the units indicated above. COA is reminded that pursuant to Weatherization Program Notice 11-03: Policy Regarding the use of DOE Program Funds to Pay for Call-back/Add-on Work after Reported to DOE as a Completed Unit, DOE funds may only be used to complete required return work on units completed prior to January 10, 2011.

PAGE 7 OF 10

2 0 1 0 A R R A / W A P M O N I TO R I N G REPORT

City of Austin

ATTACHMENT B
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15985

2

137524

2

25295

- ' . . - . '.' . . . '';'' ' 41. ' 1 , . '''!' ' '. '' : 5 !!M11:1Ui,.,, . . . i 5' 1 ARRA #753 . i . ' •'.' . . ' . ' ARRA #753 „ . 4 , „ z ARRA #753 „ , . AREA #753 .

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M &L

M& L

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sailowe
'

.

$107•44

$672.29

M & L

$35.00

M& L

$3,237.27

2

138265

ARRA #753

M & Li H &S

$4,625.65

2

133866 ,

AREA #753

M &L

$3,101.38

2

137474

AREA #753

M & L

$3,130.38

2

138350

ARRA #753

M & L

$4,013.44

., — ..... .., ....„ .,„ . . . .„ . . . ... • .. ., Charged for . programmable thermostat but one . . already existed . Installed secondary space . heater with ARRA money . which is not compliant . with WPN 08-4 regarding Tace heater policy . . Charged for installation " of CO detector which was not present , Replaced HVAC unit but • ; no Manual J in file to justify replacement , (Manual : approximate and does l . noti satisfy 2009 IRC code ] n N E M1401.3) A Left unvented space T i heater without oxygen depletion sensor in house s and are not in compliance a with WPN 08-4 n Replaced HVAC unit but no Manual . justify replacement (Manual j in NEAT is an ] i n approximate and does f i l e not satisfy 2009 IRC code t o M1401.3) Replaced HVAC unit but no Manual) . justify replacement in (Manual J in N E AT is an f i l e approximate and does t o not satisfy 2009 IRC code M1401•3) Replaced HVAC unit but no Manual J in file to justify replacement (Manual j in NEAT is an s approximate and does

PAGE 8 OF 10

2 0 1 0 A R R A / W A P MONITORING REPORT City of Austin not satisfy 2009 IRC code M1401.3) Replaced HVAC unit but no Manual j in file to justify replacement (Manual J in N E AT is an approximate and does not satisfy 2009 MC code M1401.3) Replaced HVAC unit but no Manual J in file to justify replacement (Manual j in NEAT is an approximate anti does not satisfy 2009 IRC code 1\41401.3) Replaced HVAC unit but no Manual J in file to justify replacement (Manual J in NEAT is an approximate and does not satisfy 2009 IRC code M1401.3) Replaced HVAC unit but no Manual j in file to justify replacement (Manual j in NEAT is an approximate and does not satisfy 2009 IRC code M1401.3) Replaced FIVAC unit but no Manual j in file to justify replacement (Manual J in NEAT is an approximate and does not satisfy 2009 IRC code M1401,3) Replaced HVAC unit but no Manual j in file to justify replacement (Manual j in NEAT is an approximate and does not satisfy 2009 IRC code M14013) Replaced HVAC unit but no Manual j in file to justify replacement (Manual j in NEAT is an approximate and does not satisfy 2009 IRC code M1401,3)

2

138004

ARRA #753

M & L

$4,185.18

2

137997

ARRA #753

M& L

$4,342.34

2

138012

ARRA 4753

1\4 & L

$4,327.39

2

138011

ARRA #753 •

M &L

$4,327.39

2

138010

ARRA #753

M &L

$4,417,34

2

138009

AREA #753

M &L

$4,387,34

2

137988

ARRA #753

M (Sc L

$4,252•34

PAGE 9 OF 10

2010ARRA/WAP MONITORING REPORT
City of Austin 2 138036 ARRA #753 M& L $3,906.00 Replaced HVAC unit but no Manual' in file to justify replacement (Manual I in NEAT is an approximate and does not satisfy 2009 IRC code M1401,3) Replaced HVAC unit but no Manual I in file to justify replacement (Manual J in N E AT is an approximate and does not satisfy 2009 IRC code M1401,3) Replaced HVAC unit but no Manual J in file to justify replacement (Manual I in NEAT is an approximate and does not satisfy 2009 IRC code M1401.3) Replaced FIVAC unit but no Manual I in file to justify replacement (Manual I in NEAT is an approximate and does not satisfy 2009 IRC code M1401.3) Replaced HVAC unit but no Manual I in file to justify replacement (Manual I in NEAT is an approximate and does not satisfy 2009 IRC code M1401,3) Replaced HVAC unit but ' no ManualI in file to justify replacement (Manual J in NEAT is an approximate and does not satisfy 2009 IRC code M1401.3) Replaced HVAC unit but no Manual j in file to justify replacement (Manual j in NEAT is an approximate and does not satisfy 2009 IRC code M1401.3) $779,73

2 ,

138018

ARRA #753

M & L

$4,252.34

2

137961

ARRA #753

M (Sz L

$4,25234

2

7498

ARRA 4753

M& L

$1,686.64

2

26925

ARRA #753

M& L

$2,888.90

2

137246

ARRA #753

M & L

$2,037.29

2

55380

AREA #753

M& L

$3,130.23

TOTALS

$70,536.18

PAGE 10 OF 10

2 0 1 0 A R R A / WA P MONITORING REPORT City of Austin

Please select the appropriate Budget Category from the following lists: ARRA WAP & D O E WAP contracts — (1) Administration ("Admin"), (2) Liability/Pollution Occurrence Insurance ("Ins"), (3) Fiscal Audit ("Audit"), (4) Materials/Program Support/Labor ( " M & L " ) , (5) Health & Safety ("H&S"), (6) Training and Technical Assistance ("T&TA") L I H E A P contracts — (1) Administration ("Admin"), (2) Materials/Program Support/Labor ("M&L"), (3) Health & Safety ("H&S"), (4) Training and Technical Assistance ("T&TA") CEAP contracts —(1) Administration ("Admin"), (2) Assurance 16 ("Assurance"), (3) Direct Services — Energy Crisis ("Energy"), Direct Services — Co-payment ("Co-pay"), (4) Direct Services — Elderly and Disabled ("R&D"), (5) Direct Services — Heating/Cooling ("H&C"), (6) Direct Services — Direct Service Support ("Support")

PAGE 11 OF 10

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
IMPIP.Idhca•slate.tx.mr

BOARDMEMBERS
Rick Perry GOVERNOR
J. Paul Oxer, Chair

March 9, 2012

Torriff. Gann, Vice Chair Leslie B i n g h a r r i Lowell A. Keig Juan S. Mulloz, PhD Escarctio J. Mark McWatters

Writer's direct phone 11512-475-0471 Email: sharortgamble@tdhca.statebc.us

Mr. Larry Weis General Manager Electric Utility Austin Energy 721 Barton Springs Road Austin, Texas 78704 Re: ARRA Weatherization Assistance Program Contract #16090000753 Dear Mr. Weis: Enclosed is a report that details the February 13-17, 2012 monitoring review of City of Austin (COA) Weatherization Assistance Program contract with the Texas Department o f Housing and Community Affairs (the Department). This information is provided to ensure that compliance with the contract is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical manner. The monitoring report includes two (2) findings. Please submit a response to this report to this office within thirty (30) days of the date of this letter. If we can be of any assistance, please feel free to contact Doug Misenheimer, Senior Program Officer, at (512) 936-7824. The assistance provided to the Program Officers by the agency is greatly appreciated. Sincerely, ron D. Gamble J / Manager Energy Assistance Section Community Services-Division D cc: Mr. Marc A. Ott, City Manager SDGAIN 221 East l l t h - P.O. Box 13941 - Austin, Texas 78711-3941 - (800) 525-0657 - (512) 475-3800

2012 ARRA/WAP MONITORING REPORT
City of Austin

Dates of Review: F e b r u a r y 13-16 2012
FOCUS OF R E V I E W

CONTRACT NAME DOE/ARRA

CONTRACT NUMBER 16090000753

CONTRACT AMOUNT $8,090,874.00

CONTRACT DATES 9/1/2009 to 12/31/2011

An On-site review of City of Austin's (COA) implementation of the Department of Energy Weatherization Assistance Program (WAP) consisted of client file reviews as well as visiting completed units in the field.
PROGRAM EVALUATION

The evaluation of the program consisted of: interviews with Austin Energy personnel, review of client files, and on-site unit inspections. The following was noted during the review: • Missed opportunities to insulate sidewalls • F i n a l inspection deficiencies • Deficient BTL calculations for multifamily units

On-Site Inspections
Finding #1 Assessment not followed: Onsite inspection of weatherized units revealed that two (2) o f the six (6) single family units inspected did not receive sidewall insulation. The assessment identified on two homes that sidewall insulation could be added and therefore should have been entered into the NEAT software to be evaluated. Sidewall insulation in most cases is the most cost effective measure that can be done in weatherization and usually provides the most long term benefit to the clientele in reducing the heating/cooling loads on their homes, thus resulting in lowered utility costs for them.

PAGE 1 OF 4

2012 ARRA/WAP MONITORING REPORT
City of Austin

A review o f the NEAT audits revealed that the sidewall insulation measure is turned off in the NEAT therefore even i f the data collected during the assessment is entered into the NEAT, the sidewall measure will not be recommended by the audit. Additionally water heater insulation is also disabled in the NEAT. These two energy saving measures should be left on so that NEAT can evaluate them.
Required Action:

The City of Austin must re-run the NEAT audit for Job Nos. 135670 and 119202 with the sidewall and water heater insulation measures clicked on in the NEAT Setup library and submit these with the response. This is mainly to demonstrate the value of adding these measures in the NEAT and how that affects the SIR. The COA must also identify how it plans to include these measures on any remaining homes it plans to weatherize
during the contract period. Reference: Texas Administrative Code Title 10; Part 1, Chapter 5, Subchapter E Rule §5.529, 2009 I R C Section N1102; CFR 440.21

Finding t12

Final Inspections: A final inspection on job # 119202 failed to recognize a contractor deficiency in maintaining clearances to combustion materials. Heat producing devices must be properly blocked to maintain a safe clearance to prevent fire hazards in a post-weatherized home. The COA must have the contractor return and address the fire hazards caused by not assuring safe clearances to combustible materials. Further definitions can be found in the International Residential Code 2009 (IRC).
Reference: Texas Administrative Code Title 10; Part 1, Chapter 5, Subchapter E Rule 0.525, 2009 IRC Section M1803.3.4

Action Required:

Recommended Improvement #1:

On 29 of the files the Building Tightness Limit (BTL) was not properly determined. The N factor used for multi-family buildings should reflect the number of stories of the actual building not whether the unit is a single story or not. This will change the calculation substantially and could result in units being brought below the BTL unintentionally. Since all the units reviewed had exhaust fans properly vented and on a motion sensor there is a minimal chance that the units would develop moisture issues in the future. I f the City of Austin is still unsure how to calculate the BTL it should contact the Department for further clarification.

PAGE 2 OF 4

2010ARRA/WAP MONITORING REPORT
City of Austin

Texas Department of Housing and Community Affairs representative John Nunley participated in an exit conference with COA representatives Stephen Lineweber, Joe Guerrero, and Rusty Smith. Signature:
A— l

Doug M . ‘ is A l A l e n h e i m e r , S e n i o r P r o g r a m O f f i c e r

Date
9 l i t 0 0 4 - ' 2 . ,

PAGE 3 OF 4

2012 ARRA/WAP MONITORING REPORT City of Austin

AT TA C H M E N T A
DOE ARRA Units Inspected - 33 DOE ARRA Units Returns - 1 T O TA L Returns — 1

TOTAL Units INSPECTED —33 Units Fund Return Source Inspected
137875 ARRA M u l t i Family Units No

Comments

Return to address the following:
1. Unit below BTL- at 510 cfrn's, BTL is 651 cfm's. On the blower door data sheet the wrong N factor was used. The correct N factor o f 17.8 w i l l actually lower the B T L . Reconfigure BTL and submit the new BTL in the response. This unit already contains mechanical ventilation. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required. No return required.

137872 137837 137860 137877 137835 137837 137838 137836 137840 137841 137843 137873 137758 137861 137862 137863 137864 137865 137866 137868 137869 137870 137875

ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA ARRA

No No No No No No No No No No No No No No No No No No No No No No No

PAGE 4 OF 4

2 0 1 0 A R R A / WA P MONITORING REPORT City of Austin

137878
137874

ARRA ARRA

No No

No return required. No return required.

17966 1088 947701 119202

ARRA ARRA ARRA ARRA

No No No Yes

No return required. No return required. No return required 1) B l o c k around furnace flue pipe in the attic to maintain 1" clearance to combustible material. (13vent) 2) C u t back pipe wrap on water lines in water heater closet to maintain 6" clearance to combustibles. (Draft diverter) No return required. No return required. No return required.

137844 137757 137871

ARRA ARRA ARRA

No No No

COA must return and address all units as indicated and include in its response to this report a summary o f all actions and measures taken to address the units indicated above. COA is reminded that pursuant to Weatherization Program Notice 11-03: Policy Regarding the use of DOE Program Funds to Pay for Call-back/Add-on Work after Reported to DOE as a Completed Unit, DOE funds may only be used to complete required return work on units completed prior to January 10, 2011.

PAGE 5 OF 4

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
!P abra.slate.t.v.lis AW.

BOARD MEMBERS
Rick Perry GOVERNOR J. Paul Oxer, Chair To m H. Gann, Vito Chair Leslie Bingham-Esearelio Lowell A. Keig Juan S. Mutioz, PhD J. Mark MeWatters

April 20, 2012

512-475-0471 sharongamble@tdhcastate, Ix. us

Mr. Larry Weis General Manager Electric Utility City of Austin; Austin Energy 721 Barton Springs Road Austin, Texas 78704 Re: D O E / A R R A Weatherization Assistance Program Contract 4/16090000753 Dear Mr. Weis: Enclosed is a report that details the fiscal and programmatic review conducted April 9-12, 2012, of the City of Austin's (Austin Energy) Weatherization Assistance Program contract with the Texas Department of Housing and Community Affairs (The Department). T h i s information is provided to ensure that compliance with the contract is maintained and that services to the poor, elderly, and disabled are offered in the most expeditious and economical manner. The monitoring report includes one (1) recommendation and two (2) notes. Please submit a response to this report to this office within thirty (30) days of the date of this letter. If we can be o f any assistance, please feel free to contact David Escamilla, Senior Program Officer, at (512) 475-3859. The assistance provided to the Program Officers by the agency is greatly appreciated. Sincerely,

r n D. Gamble Manager Energy Assistance Section Community Affairs Division SDG/de cc: M r . Marc A. Ott, City Manager, City of Austin

221 E a s t l l t h P . O . B o x 13941 - A u s t i n , Te x a s 7 8 7 11 - 3 9 4 1 - (800) 5 2 5 - 0 6 5 7 - (512) 4 7 5 - 3 8 0 0

2009 ARRA Weatherization Assistance Program Monitoring Report: City of Austin (Austin Energy) April 20, 2012 Page 2

Directory of Monitoring Sections Section I. F i n a n c i a l Review Section II. T r a v e l and Timesheets Section III. G e n e r a l Liability and Pollution Occurrence Insurance Section IV. P r o p e r t y Management Section V. P r o c u r e m e n t Section VI. A u d i t Section VII. P e r s o n n e l Policies and Practices Section VIII. P e r f o r m a n c e Review Section IX. A d m i n i s t r a t i v e Section X. C l i e n t File Review Section XI. D e n i e d Files Section XII. S u m m a r y

2009 ARRA Weatherization Assistance Program Monitoring Report: City of Austin (Austin Energy) April 20, 2012 Page 3

Dates of Review: A p r i l 9, 2012 — April 12, 2012 FOCUS OF REVIEW

CONTRACT NAME DOE/ARRA

CONTRACT NUMBER 16090000753

CONTRACT AMOUNT $9,190,874.00

CONTRACT DATES 9/1/2009 to 4/30/2012

Performance as of March, 2012

CONTRACT NAME

YEAR-TO-DATE EXPENDITURES

% OF ORIGINAL CONTRACT AMOUNT 86.08%

% OF CONTRACT PERIOD PASSED 97.56%

# UNITS COMPLETED

# UNITS IN PROGRESS

DOE/ARRA 16090000753

$7,911,255.61

1488

276

On-site review of the City of Austin's (Austin Energy) implementation of the ARRA Weatherization Assistance Program (ARRA WAP). Specific areas of review included Financial Reporting, Contract Agreements, Procurement, Personnel, and the Management of the ARRA Weatherization Assistance Program contract. PROGRAM EVALUATION The evaluation of the program consisted of: interviews with Austin Energy personnel, analysis of the fiscal system, review of programmatic records, inventory review, client file review, and on-site unit inspections.
The following issue was noted during the review:

• O n e (1) monthly expenditure report was submitted late. Financial Review Note 141: A review of Austin Energy's monthly expenditure report submissions revealed that one (1) monthly expenditure report (February-2012 report) was signed on March 28, 2012 which made the report submission 23 days late. During the monitoring review Austin Energy informed the Department that the reason for the late signature was due to a need to resolve a user access approval matter within the TDHCA contract system before the report could be signed. T h e Department appreciates Austin Energy providing information regarding the reason for the late report submission. However, Austin Energy is reminded that prompt monthly expenditure report submission is essential in insuring all incurred obligations are paid before the end of contract closeout period. Austin Energy is warned that unpaid payables after the end of the contract closeout period will be subject to disallowed costs.

2009 ARRA Weatherization Assistance Program Monitoring Report: City of Austin (Austin Energy) April 20, 2012 Page 4

Performance Review
Recommended Improvement #1: Currently there are five (5) units in the Treaty Oaks Apartment Complex that are undergoing asbestos abatement post weatherization. The Department would like to recommend that Austin Energy devise a plan of action on how they will ensure the units in Treaty Oaks are properly restored to the post weatherized condition. Note #2: A u s t i n Energy is reminded that they have 180 days from the completion date o f the weatherization work to ensure that the buildings contained in both Sierra Vista and Treaty Oaks Apartments are occupied with income eligible clients.

Texas Department of Housing and Community Affairs representatives: David Escamilla, and Rosy Falcon, participated in an exit conference with Austin Energy representatives: Mr. Joe Guerrero, Ms. Darlene Berghammer, Ms. Stephanie Koudelka, Ms, Monica Gonzalez, Ms. Hawa Jatmeh, Ms. Angie Newman, and Mr. Rusty Smith.

Signature:
1

David Escamilla, TDHCA Senior Program Officer

Date: (
7 7 0 / U ) 1 41?fOlatl Date: 2 . _

Signature: 1 Rosy L. Falco, D H C A Program Officer 1 1 , I

2

2009 ARRA Weatherization Assistance Program Monitoring Report: City of Austin (Austin Energy) April 20, 2012 Page 5

AT TA C H M E N T A
City of Austitz (Austin Energy) is reminded that pursuant to Weatherization Program Notice 11-03: Policy Regarding tile use of DOE Program Funds to Pay for Call-back/Add-on Work after Reported to DOE as a Completed Unit, DOE funds may only be used to complete required return work on units completed prior to January 10, 2011.

Units Inspected

ARRA Units Inspected —21

ARRA Unit Returns - 0

Fund Source
DOE ARRA DOA ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA DOE ARRA

Return
No No No No No No No No No No No No No No No No No No No No No No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required No Return Required

Comments

201000A1756 201000A1755 201000S1754 201000A1753 201000A1522 201000A1524 201000A1523 201000A1909 201000A1910 201000A1865 201000A1851 201000A1850 201000A1847 201000A1848 201000A1808 201000A1839 201000A1799 201000A1800 201000A1801 201000A1802 201000A1807

Action Required: None..