HomeMy WebLinkAboutMINUTES - 11052013 - HA SD.2RECOMMENDATIONS
ACCEPT report on the status of the Housing Authority's energy performance contract and public housing operating
subsidy.
BACKGROUND
On March 12, 2013 the Board received a presentation from Michael Levinson of Group 14 Engineering and Rich
Sissick of R. Sissick Consulting, Inc., regarding the Housing Authority's (HACCC) efforts to maximize the subsidies
received from the United States Department of Housing and Urban Development (HUD) for the agency's existing
energy performance contract (EPC). Implemented in 2003, HACCC's EPC financed energy savings improvements at
each of the agency's public housing properties. An overview of the energy-savings measures made by HACCC at
each property is attached.
As an incentive to encourage more agencies to participate in the EPC program, HUD will provide additional, ongoing
subsidies to help offset financing costs where energy cost savings can be proven. The extra EPC funding is added
onto an eligible housing authority's annual public housing operating subsidy. Staff have been working with HUD for
several years to stabilize HACCC's EPC subsidy. From 2003 through 2008, HACCC usually received no additional
EPC subsidies from HUD, despite staff's assertion that the agency was eligible for such. Since 2009, HUD has
provided an EPC subsidy to HACCC every year. However, staff still felt the agency was entitled to a larger EPC
subsidy than was being provided by HUD. In particular, it did not appear that HACCC was being fully compensated
for water savings. HACCC hired Group
Action of Board On: 11/05/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, District I
Commissioner
Candace Andersen, District II
Commissioner
Mary N. Piepho, District III
Commissioner
Karen Mitchoff, District
Commissioner
Federal D. Glover, District V
Commissioner
ABSENT:Geneva Green, Tenant Seat
Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: November 5, 2013
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc: HA Administration
SD.2
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:November 5, 2013
Contra
Costa
County
Subject:Energy Performance Contract and Public Housing Operating Subsidy Report
BACKGROUND (CONT'D)
14 and R. Sissick to help determine whether or not HACCC's water savings could be verified under the terms of
the contract. Once that task was complete, the contract called for Group 14 and R. Sissick to recalculate the
additional subsidy, if any, due HACCC from HUD. HACCC, Group 14 and R. Sissick all worked closely with
HUD staff during this process.
After reviewing HACCC's original EPC contract and baseline utility usage prior to 2003, verifying utility
consumption for the past year at all of HACCC's properties, conducting an investment grade (engineering) energy
audit, calculating new utility allowances for public housing tenants and recalculating the amount of EPC funding
that HACCC should receive from HUD, it was determined that HACCC should receive an additional $186,984
from HUD (assuming 100% program funding). The analysis conducted by Group 14 and R. Sissick Consulting
was reviewed by HUD's San Francisco Field Office and by HUD's Energy Performance Center. Both agreed with
the data indicating that HACCC is eligible for an additional $186,984 in funding this year and will be eligible for
the remaining term of the EPC contract to receive additional subsidies for verified water savings.
Housing authorities were notified on September 30, 2013 that after cuts from sequestration and pro-ration
(ongoing budget shortfalls separate from sequestration) were factored in, HUD would fund all housing authorities
at 81.86% of their eligible public housing operating subsidy for calendar year 2013. This same pro-ration was
applied to all additional subsidies such as those received for the EPC program. This means that HACCC will
receive an additional $153,065 in operating subsidy for 2013 based on increased EPC eligibility. However, this
still leaves HACCC with a budgeted shortfall of $222,807 and a shortfall in eligible funding of over $1 million.
FISCAL IMPACT
None. Information item only.
CONSEQUENCE OF NEGATIVE ACTION
None. Information item only.
CLERK'S ADDENDUM
ATTACHMENTS
EPC Chart