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HomeMy WebLinkAboutMemo - Read Before Packet - 10/11/2022 - Memorandum From John Phelan And Jc Ward Re: October 11, 2022 Work Session Item #1 2023-2024 Biennial Budget - Mobile Home Budget Offers 1.10 And 24.12 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 1 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation MEMORANDUM DATE: October 11, 2022 TO: Mayor Arndt and City Councilmembers THRU: Kelly DiMartino, City Manager Tyler Marr, Interim Deputy City Manager Caryn Champine, Director, Planning, Development & Transportation Kendall Minor, Executive Director, Fort Collins Utilities FROM: John Phelan, Energy Services Manager and Policy Advisor, Fort Collins Utilities JC Ward, Sr. City Planner, Neighborhood Services RE: October 11, 2022 Work Session Item #1 2023-2024 Biennial Budget - Mobile Home Budget Offers 1.10 & 24.12 The purpose of this memo is to provide Councilmembers an updated option for funding two offers of interest to City Council. This is an update to the Work Session Agenda Item Summary provided in Council packets for the October 11, 2022 Work Session. The Bottom Line Council Interest in Funding Mobile Home Park Related Offers : Several City Councilmembers expressed interest in funding the following two unfunded offers because of their role in safety and health of community members living in mobile home communities. Both offers are reflected in the AIS. NLSH Offer 24.12 - Mobile Home Park Code Compliance Program include for 1st ENV Offer 1.10 - Manufactured Home Efficiency Acceleration Initiative (currently categorized in the AIS recommended to stay unfunded relative to other priorities ) Proposed Option for Council Consideration: If there is Council interest in funding both offers, there is not sufficient funding to support the full scope and cost. However, staff confirmed these offers could be combined to share a staff position, scale the scope of work and program funding, and therefore lower the total cost per year for the offers. The total cost per year for the combined offer would include a contractual 1.0 FTE and program funding for $250,000 in 2023 and 2024. Offers to include for 1st Reading funded by options available to Council Proposed Funding: If there is Council interest in funding this combined offer, there are a few funding sources staff can discuss at the work session. Below is a summary of potential funding sources and is dependent upon approval of the City Manager, Chief Financial Officer, and Utilities Executive Director: 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 2 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation ARPA: The majority of the scope is eligible for ARPA (specifically Offer 1.10). Offer 24.11 ARPA Backflow Preventer Funding for Mobile Home Parks is currently funded, but we recently learned that it is not feasible to implement this program due to the lack of contractor interest. If supported by Council, staff recommends UNFUNDING this offer and applying $132,500 (total over two years) to partially fund the new, combined offer ($500,000 total over two years). General Fund Reserves Utility Fund Reserves Revised Offer Detailed Description The following is a more detailed description of the scope for a new offer. 1.0 contractual FTE 2023: $250,000 2024: $250,000 (Annual Cost Breakdown: $73,300 personnel; $50,000 Code mitigation grant funding; $126,700 Mobile Home Energy Efficiency Initiatives) Funding this offer will support improvements in livability for mobile home residents through enhanced engagement, code compliance and a demonstration of comprehensive home energy upgrades. This offer facilitates understanding and addressing the unique needs of MHP communities, building relationships with residents, and developing strategies for increasing livability. The staff funding will enable improved code inspection and resolution and detailed evaluation of energy retrofit opportunities while recognizing the unique and dynamic needs of each MHP. Code Compliance Scope Proactive inspection in mobile home park neighborhoods has been suspended for years. The complaint-based inspection system left many MHPs with numerous long -term code violations with costly mitigation for residents and owners. This offer will fund assistance for residents and MHP owners to come into compliance through community cleanups, educational resources and home repair events. Throughout 2021/2022, a needs assessment of MHPs has been conducted to identify the extent of current noncompliance; highest resource/assistance needs; and the practicality, equity and compatibility of City Code with community priorities. Funding this offer will support the Mobile Home Park (MHP) Code program to conduct community engagement and educational outreach with MHP residents, owners and managers. Energy Efficiency Scope This project will demonstrate a program delivery model that will fully subsidize home energy upgrades for low-income households living in manufactured homes, providing direct cost, carbon, health and resilience benefits for residents and filling a gap in Utilities efficiency programs portfolio. The goal is to gain experience with this housing type to understand implementation models for this housing segment, leveraging local, state and federal funding sources. The efficiency scope includes providing zero-cost weatherization and beneficial electrification services for up to 10 households over the two-year period. Weatherization measures will create a high-performance building envelope by air sealing, adding insulation, and replacing windows. Electrification will transition homes off gas and propane powered heating and cooling sources using high-performance heat pumps. High efficiency appliances, lighting and water fixtures along with comprehensive education round out the package. 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 3 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation Seeking more equitable outcomes for energy performance in housing, this Offer will determine what can reasonably be accomplished from a technical perspective (building science), how much it will cost (finance) and who is qualified and able to complete the upgrades (workforce). This Offer will identify business models to implement energy solutions for this historically excluded housing segment. 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 4 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation Appendix BFO 2023/2024 Mobile Home-Related Offers Offer 1.10 Manufactured Home Efficiency Acceleration Initiative Offer Type: ARPA 1.0 FTE Contractual Project Manager 2023: $400,000 2024: $400,000 Offer Summary Funding this offer will demonstrate a program delivery model that will fully subsidize home energy upgrades for low- income households living in manufactured homes, providing direct cost, carbon, health and resilience benefits for residents and filling a gap in Utilities efficiency programs portfolio. This initiative will provide free weatherization and beneficial electrification services for 15-25 households annually. Weatherization measures will create a high-performance building envelope by air sealing, adding insulation, and replacing windows. Electrification will transition homes off gas and propane powered heating and cooling sources with high-performance heat pumps. High efficiency appliances, lighting and water fixtures along with comprehensive education round out the package. Manufactured homes are not eligible for participation in face long waitlists and limited decision-making agency when seeking services through state and federal weatherization he Weatherization Assistance Program (WAP). There is significant need for this work with nearly 4,000 manufactured homes in Fort Collins. Many local manufactured homes communities are characterized by low-income households and median resident age greater than 60 years old. Weatherization improves comfort in the home environment, reduces environmental pollutants entering the home, and improves occupant resilience to climate change impacts like wildfire smoke events. Electrification reduces fossil fuel pollutants within the home and enables the addition of air conditioning, which is only present in an estimated 17% of local manufactured homes and also increases resilience to extreme heat for vulnerable populations. This initiative will serve as a demonstration as a basis for future ongoing efforts to improve homes for this historically underserved segment. Additional Information o This Offer includes one contractual FTE to manage and document the program. All remaining funds (approximately $600k) will go directly towards completing projects with associated contractor management. o This Offer centers equity by creating a new program that provides fully subsidized home efficiency and electrification services specifically to groups that have been historically underserved by or excluded from LatinX population lives in manufactured homes, which are not eligible building types for Utilities Epic Homes program. o People of color in Fort Collins are disproportionately exposed to environmental pollutants and disproportionately lack access to air conditioning in their homes. Energy burden is estimated to be 8% higher for Black, Native American, and LatinX households than white households. 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 5 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation o This Offer helps address those disproportionate burdens by providing home upgrade services that will increase the comfort of the home during extreme cold and heat, improve indoor environmental quality, reduce indoor air pollutants, and create access to air conditioning where needed. o This program will identify and serve low-income residents by first sourcing participants from the pool of Utilities customers enrolled in the Income Qualified Assistance Program who live in manufactured homes. The program will also prioritize enrollment of Spanish-speaking households and households with people over 60 and children under 18 in order to benefit vulnerable residents. Links to Further Details o https://ourcity.fcgov.com/ourclimatefuture o https://collective.coloradotrust.org/stories/utility-bills-burn-through-paychecks-for-thousands-of- coloradans/ o https://www.washingtonpost.com/climate-solutions/2022/01/21/mobile-home-efficiency- climate/?utm_source=pocket_mylist Scalability This pilot provides the opportunity to assess customer interest and priorities, work with new trade allies, and figure out have historically served. The Offer could be scaled to not less than two-thirds in order to effectively demonstrate the initiative in at least 10 homes. After the ARPA-funded pilot, Utilities will seek to identify ongoing funding to continue the program. Linkage to Strategic Objectives ENV 4.1 Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. o This Offer will demonstrate improving climate, energy, equity and resilience outcomes in an underserved segment and housing type. ARPA Funding Recovery Theme Equity and Community Resilience o This Offer enhances equity by focusing on providing services to groups who have historically iciency services and who live in underperforming and inefficient housing. This offer enhances community resilience by upgrading homes to be healthier and more resilient to climate and extreme weather events like extreme heat and wildfire smoke. ARPA Funding Recovery Theme Health o This Offer enhances health by upgrading homes to reduce indoor pollutants from burning fossil fuels and better seal homes to prevent outdoor pollutants from entering. Weatherization and electrification have been linked to better indoor air quality and comfort, particularly during extreme cold and heat, and may promote better health in the elderly, children, and people with respiratory ailments. Performance Metrics ENV 163. Annual number of home energy upgrade projects o https://publish.clearpointstrategy.com/594/Measures/scorecardId=105090&object=measure&o bjectId=833682.html o Performance Measure Reason: This measure will reflect the results of the program funded by this Offer. 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 6 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation Related Ongoing Offer This Offer leverages the ongoing Energy Services offer, and, if successful, Utilities could expand the portfolio of residential efficiency services to include the services contained within this offer. Offer 24.12 - Mobile Home Park Code Compliance Program Offer Type: 1-Time Enhancement 2023: $106,494 and 1.00 FTE (excluding hourly staffing) 2024: $114,548 and 1.00 FTE (excluding hourly staffing) Offer Summary Funding this offer will support a contract code position and Mobile Home Park (MHP) Code program to conduct community engagement and educational outreach with MHP residents, owners and managers. Proactive inspection in mobile home park neighborhoods has been suspended for years. The complaint-based inspection system left many MHPs with numerous long -term code violations with costly mitigation for residents and owners. This offer will fund assistance for residents and MHP owners to come into compliance through community cleanups, educational resources and home repair events. Throughout 2021/2022, a needs assessment of MHPs is being conducted to identify the extent of current noncompliance; highest resource/assistance needs; and the practicality, equity and compatibility of City Code with community priorities. Building inspection schedules and content with associated public engagement will be the primary focus in 2023. In 2024, the program would focus on continued engagement and compliance practices in MHPs across Fort Collins. This work will inform the continuing evolution and cost estimates for Code Compliance inspections in mobile home parks into the future. The ultimate goal of this offer is to understand and address the unique needs of MHP communities, build relationships with residents, and develop strategies for increasing livability while supporting residents into compliance. The engagement funding will enable the code inspector and cross-departmental nimble and responsive to the unique and dynamic needs of each MHP. and assistance to MHPs, such as informational workshops, clean up event, and listening sessions. Funding this offer will enable us to continue the momentum we have created while incorporating a designated Code Inspector who can ensure an increase in neighborhood livability, safety & customer service. Linkage to Strategic Objectives This Offer supports the following Strategic Objectives: NLSH 1.8 - Preserve and enhance mobile home parks as a source of affordable housing and create a safe and equitable environment for residents. NLSH 1.5 - Enhance the quality of life and sense of belonging in neighborhoods by connecting neighbors to City services, building community, and fostering harmonious relationships. NLSH 1.1 - Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 7 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation Additional Information The engagement conducted will prioritize outreach to communities of color and underrepresented social identities. MHPs are more likely than other neighborhood types to be home to these populations. We will continuously adapt our strategies to increase accessibility, build trust, and prioritize the highest need neighborhoods. We will continue our practices of inclusive, accessible engagement with MHP residents to collaboratively determine what resources and events should be implemented to support each service-all conducted with accessibility prioritized- we will continue this responsive, cooperative work. We continue to include Spanish language access for written and spoken outreach for City MHP events and activities. An objective criteria matrix based on neighborhood demographics is applied when determining whether to host in-person or virtual/hybrid events to mitigate impacts of the digital access divide. $50,000 per year of this offer would be used for programmatic needs like community clean-up events, renting dumpsters, home repair day, and educational materials. The remainder is the personnel cost for 1.0 contract FTE Code Inspector, who would specialize in MHP issues, inspection, and engagement. Impact to Ongoing Expenses - Funding this Offer will increase future ongoing expenses by an estimated annual amount of: $0 Scalability and explanation This offer is scalable down in both the personnel line item and the program funds. In 2023, the Code Inspector could be a seasonal hourly position for $28,000 in 2023 and the 1.0 contract FTE for $63,500 for total offer personnel cost of $91,500. Program funds could also be reduced to $25,000 per year for a total of $50,000. This decrease would reduce the service delivery of all program components to two community clean-up events per year. Total scaled down offer = $141,500 for 2023/2024 Links to Further Details: - https://www.fcgov.com/neighborhoodservices/mobile-home-park-communities Performance Metrics - NLSH 1. Voluntary Code Compliance https://publish.clearpointstrategy.com/594/Measures/scorecardId=6276&object=measure&objectId=91249. Html Performance Measure Reason: Historically, Code Compliance officers have not conducted proactive patrols in MHPs; only responding to complaints received. This offer will support our MHP Enforcement Program and 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.221.6376 970.224.6134 - fax 8 Read Before Memo Mobile Home Combined Offers 1.10 & 24.12 Planning, Development & Transportation enable proactive code compliance with a community engagement lens. This will substantially increase voluntary code compliance rates in MHPs. - NLSH 64. % of residents responding very good/good - Your neighborhood as a place to live https://publish.clearpointstrategy.com/594/Measures/scorecardId=7718&object=measure&objectId=10986 4.html Performance Measure Reason: MHPs have historically been treated differently than other neighborhood types within the city- fewer services, less attention and response to emerging needs, etc. This has resulted in landlord practices and concerns and supporting MHP initiatives, we are changing the tide on this important sector of our city. - NLSH 104. % of neighborhoods participating in Neighborhood Services programming https://publish.clearpointstrategy.com/594/Measures/scorecardId=6276&object=measure&objectId=86754 7.html building with MHP residents and landlords, adapting programs to meet MHP needs, and creating responsive, equity-driven initiatives for these neighborhoods. This offer will allow this work to continue and to grow, increasing the number of MHPs and residents we directly work with and provide services to.