Submitted By
Ahmad Zayyad, Deputy Village Manager
Reviewed By
CLP
Agenda Item Title
Title
A Motion to Approve Recommendations for Use of Sustainability Funds in Fiscal Year (FY) 2021 and Direct Staff to Prepare the Necessary Actions Including the Issuance of a Request for Qualifications (RFQ)/Request for Proposals (RFP) for Consultant Services and Submission of an Amendment to the Fiscal Year 2021 Budget to Appropriate Funding from the Sustainability Fund for Marketing, Residential Retrofit Grants, Energy Efficiency Rebates, Consultant Services and Additional Sustainability Staffing
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Overview
Overview
As directed by the Village Board on February 8, 2021, staff will present recommendations to address the necessary actions needed to move forward with work related to the recommendations from the Ad-Hoc community group for sustainability action planning in Oak Park as well as preliminary fiscal recommendations.
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Recommendation
Recommendation
Approve the motion.
Fiscal Impact
Subject to Board approval of the motion, a budget amendment will be presented to the Village Board for consideration. Preliminary estimates are for:
Sustainability Fund balance available: $ 2,341,000
-1- Increase External Support - Account No. 2310.41020.101.530667 - $35,000
-2- Increase Energy Efficiency Grant Program - Account No. 2310.41020.101.570668 - $200,000
-3- Increase On-site Solar - Account No. 2310.41020.101.570850 - $225,000
-4- Increase External Support - Account No - 2310.41020.101.530667 - $125,000
-5- Increase of Staff Salaries Account No. 2310.41020.101.510501 for the hiring of one full-time staff and one part-time staff - $120,000
Subject to Board consensus, a budget amendment could be presented for consideration on April 19, 2021.
Background
On February 8, 2021, the Village Board received recommendations from the Ad-Hoc community group for sustainability action planning in Oak Park related to five specific policies and funding needs:
1. A public relations campaign to educate, encourage and incentivize Energy Efficiency Audits and Retrofits: $75,000
2. Creation of a Residential Retrofit Grant Fund: $500,000
3. Creation of a Reduce energy/Encourage Solar program (aka solar rebates): $225,000
4. Contract short-term, one-time specialized expertise: $50,000
5. Hire a permanent, full-time staff person: $115,000
Staff has reviewed the recommendations carefully and is generally supportive of the concepts presented in the recommendations. In order to accomplish the actions proposed, staff has developed below modified recommendations and funding needs.
1. Public information campaign to market Energy Efficiency Audits and Retrofits: $35,000
Staff proposes funding the program for approximately July - December or one-half of a fiscal year, and subject to review of its success, full funding could be included in FY22. The public information campaign could be done through a combination of staff and professional services.
2. Modification of existing CDBG/Sustainability Residential Retrofit Grant Fund: $200,000
Staff requests approximately 90 days to bring back to the Village Board parameters for modification of this program and proposed a reduction in funding at this time, to allow for evaluation of such a grant.
As background, the Village Board adopted a program on February 10, 2020, whereby $220,000 of Sustainability Funds were appropriated for the Village’s single-family rehabilitation loan and grant program along with updated program guidelines.
The updated program was modeled after a successful energy efficiency grant program that the Village participated in with the Chicago Metropolitan Agency for Planning as part of President Obama’s federal stimulus program in 2010. Applicants of the Village’s single-family and small rental rehab grant programs were able to apply for additional funds to improve energy efficiency. The single-family and small rental rehab programs are designed to help owners rehab their homes to improve safety and ensure basic livability standards. Energy efficiency improvements are often not able to be funded. Simple efficiency enhancements can improve occupant comfort and reduce energy costs. As an example, newer LED lights use about 75 percent less energy and last 15 times longer than incandescent bulbs. Heating and cooling upgrades improve and reduce energy costs while providing more efficient temperature control, all while utilizing less energy. Following extensive Village Board discussion, the final program provided for Owner(s)/Applicant(s) to apply for up to a $10,000 grant under the Program for purposes of increasing building energy efficiency by adding any or all of the following: (1) Installation of insulation; (2) Installation of energy-efficient lighting, including automatic light sensors or timed light sensors; (3) Installation or upgrade of heating, venting and air conditioning (HVAC) and high-efficiency shower/faucet upgrades, including thermostat upgrades; (4) Upgraded water heater; (5) Air sealing; and/or (6) Installation of solar panels.
With the COVID-19 Pandemic impacting the community weeks after the Village Board’s approval of the new program, the funding was not spent in FY20 and was re-appropriated in the FY21 budget.
Based upon discussion with EEC Chair Laura Derks, staff understands the goal of the Ad Hoc group’s recommendation would be to increase income eligibility for the program and thereby expand the number of home participants with grants ranging from $2,000 - $5,000. Staff would like to ensure the administrative efficiency of such a grant administration program and this is the purpose for the request for additional time.
In addition, it would be the intent that staff would bring back to the ECC and HPAC recommendations for expansion of income eligibility for recommendation to the Village Board.
Finally, it is also proposed that as part of the development of the Sustainability Plan discussed below, a component should be the expansion of sustainability residential retrofits to rental properties in a manner that would provide economic benefit to renters.
3. Creation of a Reduce energy/Encourage Solar program (aka solar rebates): $225,000
Staff requests approximately 90 days to bring back to the Village Board parameters for this solar rebate program and timeframe for allocation of funds - which may span the FY21 and FY22 fiscal years.
4. Contract short-term, one-time specialized expertise: $125,000
Staff recommends proceeding with this action as a key priority. The process would include the selection of a consultant to develop a comprehensive Sustainability Plan which would include a Climate Action Plan as well as a Residential (owner and rental) Sustainability Retrofit Plan to address the Village’s residential housing stock.
Through the Village’s membership in ICLEI, the Village is eligible for professional services to support the development of the scope of services to be the foundation for a Request for Qualifications (RFQ)/Request for Proposals (RFP) within the Village purchasing policy procedures. ICLEI will be in attendance as a part of the meeting to provide the Board a review of their services.
It is noted that the work of the EEC and staff to date in Oak Park has been impactful and meaningful. Staff recognizes the need for additional expert advice in order to move forward as quickly as possible with the development of a comprehensive Sustainability Plan that includes an integrated Climate Action Plan. Leveraging the expertise of consultants trained in sustainability best practices, community engagement with an equity lens is critical to achieve a timely development and implementation of a successful Plan.
5. Hire a permanent, full-time staff person: $120,000
Staff concurs with the need for additional full-time staff to support the important sustainability work. Staff would modify this recommendation to include both an intern and a full-time project manager. These positions will support the development, coordination, and implementation of the recommendations contained herein and provide overall guidance to coordinate multifaceted sustainability efforts.
Subject to the Village Board’s concurrence, staff would present an amendment to the FY21 Sustainability Fund as early as April 19, 2021.
Staff developed its modification to the Ad Hoc group’s recommendation with consideration of the following:
• The Village of Oak Park has been a member of the Metropolitan Mayors Caucus’ (MMC) Greenest Region Compact 2 (GRC2) since 2018. There are more than 270 members of the MMC throughout the state of Illinois. The GRC2 compact aims to collectively navigate the consensus of sustainability initiatives and provide resources for participating municipalities to coordinate common environmental protections that strengthen the resiliency planning of their communities.
Since the adoption of the GRC2, a tool was developed to provide municipalities a framework on objectives and strategies from which a municipality can create a sustainability plan tailored to the community’s needs. The framework is a roadmap for municipalities and allows The Village of Oak Park to structurally align with the consensus goals of the GRC2. The GRC2 Framework is organized into ten (10) categories with subsequent goals and strategies for the Village. Staff will be reviewing the framework with the EEC at a future meeting and this will be additive to the development of a scope of service for the RFQ/RFP for a consultant to work with the staff and community in the development of a comprehensive Sustainability Plan.
• October 19, 2020, the Village Board received a report on the Greenhouse Gas Inventory Update, and Energy Benchmarking with Energy Star Portfolio Manager. At that time, it was noted that data accuracy continued to be reviewed, due to incomplete energy data provided by the electricity utility. The addition of sustainability staff will shorten the timeframe for review and updates to the Greenhouse Gas Inventory.
Alternatives
Defer action and seek additional information from staff or the Environment and Energy Commission (EEC).
Previous Board Action
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Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A