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2009-203-1149 - Energy Retrofit Program CDBG‐R EE Retrofit Program ‐Page 1 of 3 City of Miami Gardens Agenda Cover Memo Council Meeting Date: October 28, 2009 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: Community Dev G elopme Block rant (CDBGR) nt Advertising Requirement: (Enter X in box) Yes No X Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #: N/A Sponsor Name Dr. Danny Crew, City Manager Department: Community Development Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE EXPENDITURE OF APPROXIMATELY THREE HUNDRED SEVENTY‐ONE THOUSAND, TWO HUNDRED AND SEVEN DOLLARS ($371,207.00) FROM THE CITY’S FOURTH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG‐R) FUNDING, TO ESTABLISH THE CDBG‐R ENERGY EFFICIENT RETROFIT PROGRAM AND ITS IMPLEMENTATION; PROVIDING FOR INSTRUCTIONS TO THE CITY MANAGER; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING AN EFFECTIVE DATE Staff Summary: Background On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009 (Recovery Act), under which $1 billion in Community Development Block Grant (CDBG‐R) funds was appropriated for local governments to carry out eligible activities on an expedited basis. The City of Miami Gardens was allocated $371,207, and the Council approved the City’s application to HUD on May 27, 2009. The budget for the use of the CDBG‐R funds is as follows: Housing Rehab (Energy Efficient Retrofits) $205,681 Infrastructure Improvements (Drainage/Paving) $128,405 Administration (10%) $ 37,121 Total CDBG‐R $371,207 Current Situation ITEM J-8) CONSENT AGENDA RESOLUTION Energy Efficient Retrofit Program 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 CDBG‐R EE Retrofit Program ‐Page 2 of 3 Improved energy efficiency and job creation and retention are two of the overarching goals of the Recovery Act. The CDBG‐R Energy Efficient Retrofit Program is designed to accomplish both. It will provide grants to low‐income homeowners (up to 80% of area median income) for energy efficient retrofits to owner occupied housing. These retrofits may include, but are not limited to, insulation or reflective roof painting and air conditioning and/or water heater replacement. The program will be implemented in three phases: • Phase 1 Insulation Installation – Inadequate home insulation is the leading cause of home energy waste and contributes to higher energy costs. Insulation installation is one of the least expensive and easiest ways to improve the energy efficiency of homes. Eligible homes will be inspected to determine if adequate insulation exists. If insulation is lacking, new insulation will be installed. In the cases where flat roofs exist, reflective roof paint will be used instead of insulation. • Phase 2 Air Condition Replacement – Heating and cooling can be up to 50% of a home’s energy expense. Upon completion of Phase 1 and depending on funding availability, Phase 2 will commence. Homes that have been determined to be eligible, following the inspection of the current air conditioning unit, will then be qualified to receive a high‐efficiency air conditioning replacement unit. • Phase 3 Water Heater Replacement – Water heating is the second largest energy expenditure after heating and cooling. Subject to funding availability and after the completion of Phase 2, eligible homes, following the inspection of the current water heating unit, will then be qualified to receive a more efficient water heater replacement. To kickoff the program, only applications for Phase 1 will be accepted. Then, based on program interest and funding availability Phases 2 and 3 will be launched. Every effort will be made to give priority to local vendors in the specified trades of insulation installation, plumbing, electrical, mechanical, and painting; and to those that will create or retain jobs. An Invitation To Bid (ITB) will be issued to solicit vendors from each of the previously mentioned trades. Local vendors who respond to the ITB will be given priority during the selection process. The Department of Community Development will administer this program and a budget of $205,681 has been established. Assistance will be in the form of a grant of up to $10,000 per home. A notice of application period will be advertised for two weeks beginning November 2, 2009. The notice will be advertised in the Miami Herald Neighbors Section for Miami Gardens and on the City’s website. Applications will be accepted for a period of two weeks opening November 16, 2009 and will close November 30, 2009. Applications will be available at the Department of Community Development’s office and online on the City’s website. This program will follow follow the City’s existing Housing Program Policy unless otherwise specified. For more information on the programs terms and eligibility, please see the attached Program Information Sheet. Proposed Action: 1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 CDBG‐R EE Retrofit Program ‐Page 3 of 3 Staff recommends approval of the proposed resolution establishing the CDBG‐R Energy Efficient Retrofit Program and its implementation. Attachment: • CDBG‐R Energy Efficient Retrofit Program Information Sheet – Phase 1 Insulation • Fact Sheet about benefits of insulation Department of Community Development ∙1515 N.W. 167 Street, Bldg. 5, Suite 200, Miami Gardens, FL 33169 ∙ (305)622‐8041 CITY OF MIAMI GARDENS CDBG‐R Energy Efficient Retrofit Program Program Information Sheet – Phase 1 Insulation Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the City of Miami Gardens has been awarded $371,205 of additional Community Development Block Grant (CDBG‐R) funds. Energy Efficiency is one of the overarching goals of the Recovery Act and HUD is encouraging CDBG‐R projects that promote energy efficiency and conservation. The Department of Community Development will administer the Energy Efficient Retrofit Program and a budget of $205,681 has been established. Eligible Applicants: • Must meet low‐income guidelines (up to 80% of area median income) • Must be the owner of the residence • Must occupy the residence • Must be a resident alien • Must be current with existing mortgage and real estate taxes • Must have homeowners insurance Eligible Properties: • Must be located in the City of Miami Gardens • Single Family, Townhomes, Condominiums Eligible Repairs: • Insulation Installation • Reflective Roof Paint (in cases of flat roofs) Income Categories to be served: Family Size 1 2 3 4 5 6 7 8 Maximum Income $37,750 $43,100 $48,500 $53,900 $58,200 $62,500 $66,850 $71,150 Assistance: • Up to $10,000 per home Terms, Recapture and Default: • The City of Miami Gardens will provide the award in the form of a grant. • The assistance will have a recapture provision of a period of 3‐years. Unless specifically detailed above, the Energy Efficient Retrofit Program will revert to existing Housing Program Policies. Every effort will be made to give priority to local vendors in these specified trades: insulation installation, plumbing, electrical, mechanical, and painters. **Terms and conditions are subject to change. Additional eligibility criteria may apply. Eligible homes will first receive insulation installation or reflective roof paint in cases of flat roofs under Phase 1. This program is subject to funding availability. Department of Community Development ∙1515 N.W. 167 Street, Bldg. 5, Suite 200, Miami Gardens, FL 33169 ∙ (305)622‐8041 CITY OF MIAMI GARDENS CDBG‐R Energy Efficient Retrofit Program Fact Sheet ‐Insulation Heating and cooling account for 50 to 70% of the energy used in the average American home. Inadequate insulation and air leakage are leading causes of energy waste in most homes. Insulation: • Saves money and our nation’s limited energy a uniform temperature throughout the house, and resources, • Makes your house more comfortable by helping to maintain • Makes walls, ceilings, and floors warmer in the winter and cooler in the summer. How Insulation Works: You need insulation in your home to provide resistance to heat flow. The more heat flow resistance your insulation provides, the lower your heating and cooling costs. Heat flows naturally from a warmer to a cooler space. In winter, the heat moves directly from all heated living spaces to the outdoors and to adjacent unheated attics, garages, and basements basements – wherever there is a difference in temperature. During the summer, heat moves from outdoors to the house interior. To maintain comfort, the heat lost in winter must be replaced by your heating system and the heat gained in summer must be removed by your air conditioner, causing higher electric bills. Insulating ceilings, walls, and floors decreases the heating or cooling needed by providing an effective resistance to the flow of heat, and can help reduce your energy consumption, thereby reducing your electric bill. Adding Insulation to an Existing Home: Unless your home was specially constructed for energy efficiency, you can usually reduce your energy bills by adding more insulation. Many older homes have less insulation than homes built today. Properly insulating and air sealing your attic will help reduce your energy bills. Attics are often one of the easiest places in a house to insulate, especially if you'd like to add insulation. Loose‐Fill Insulation: Loose‐fill insulation consists of small particles of fiber, foam, or other materials. These small particles form an insulation material that can conform to any space without disturbing any structures or finishes. This ability to conform makes loose‐fill insulation well suited for retrofits and also usually provides better coverage.