DEPARTMENT: Human Services
DEPARTMENT HEAD: Melody Woosley
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Revised contract for Residential Energy Assistance Partnership (REAP) utility assistance and amendment to contract for Kinetech electronic emergency utility bill application for resident assistance
SUMMARY:
This ordinance authorizes an agreement with the Residential Energy Assistance Partnership, Inc. (REAP) for the issuance of utility assistance credits in a projected amount of $800,000.00, and authorizes an amendment to an agreement with Kinetech Cloud, LLC to host and maintain an emergency utility bill assistance software application to electronically process up to 30,000 applications at a cost of $36,250 annually, and to provide enhancements to the electronic application process as requested by the Department of Human Services (DHS) at a cost of up to $20,000 through November 20, 2022.
BACKGROUND INFORMATION:
In 2002, the City of San Antonio, Bexar County, and CPS Energy established REAP as a method to help local economically disadvantaged families in need of utility assistance. Specifically, REAP provides direct utility bill credits to income qualifying CPS Energy customers living within the City of San Antonio and Bexar County. REAP funds are raised locally, financed by donations from CPS Energy customers and trust investment income.
CPS Energy provides $800,000 annually to the City of San Antonio Department of Human Services for the REAP utility assistance program. In addition to the $800,000, the City may request additional disbursement of funds from the REAP corpus. The current estimated balance of the corpus is $3.2 million. During calendar year 2019, an additional $1 million has been transferred from the corpus, and $2.2 million in credits have been utilized overall to provide assistance to CPS Energy customers. Area residents can utilize an electronic application developed by Kinetech Cloud, LLC to apply for the utility assistance and upload the required income and energy bill documentation using a scanner or smart phone camera. Community Services Specialists are funded through the City’s general fund to support CPS Energy bill assistance to determine program eligibility. Eligible participants must be at or below 125% of the federal poverty guidelines ($32,188 annually for a family of four), and may receive up to $400.00 in credits per year for REAP.
Through these credits, DHS anticipates providing CPS utility assistance through REAP to 9,000 households during 2019.
In 2018, the Department of Human Services entered an agreement with Kinetech Cloud, LLC to create, host and maintain a mobile phone based DHS utility service software application that has improved the ability of area residents to electronically apply for emergency utility bill assistance. By using their desktop computers, and mobile devices such as smart phones and tablets, residents can now easily apply for assistance and utilize their phone’s camera to upload the required identification, income and account documentation.
ISSUE:
This Council action authorizes a revised agreement with REAP for the issuance of utility assistance in the amount of $800,000.00 annually through calendar year 2020, with two automatic annual renewals for CY 2021 and 2022. Below is an explanation on the changes to the REAP Agreement from the prior version:
This agreement includes the following revised criteria:
• Assists first responder burn victims injured while on duty with energy costs
• Provides funds to cover the costs of purchase, installation, operation and maintenance of products targeting or promoting energy efficiency, safety or security including residential solar security lights for low-income individuals and families.
• Adds that up to $1 million of REAP funds can be used to reimburse CPS Energy for costs associated with the purchase and installation of solar security lights
• Adds the following exception to existing low-income eligibility requirement: First responder with severe burns.
Furthermore, the REAP contract revision adds that the eligibility criteria may be renegotiated for each of the renewal terms; staff may approve without governing body approval if in the best interest of City residents and they satisfy the charitable purposes listed above.
An approved revised REAP contract would terminate the old agreement if the new one is executed.
This ordinance includes authorization to amend the Kinetech Cloud, LLC contract to increase the City’s usage capacity from 15,000 applications to up to 30,000 applications for an annual amount of $36,250. The amendment will also provide authorization for enhancements to the DHS utility service application software to allow DHS to work with Kinetech Cloud, LLC to implement enhancements as requested by DHS through November 20, 2022.
ALTERNATIVES:
If this ordinance is not approved, CPS Energy would need to identify an alternate provider to ensure qualification assistance is provided uninterrupted; and without an amendment to the agreement with Kinetech Cloud, LLC, the Department of Human Services would not be able to process more than 15,000 electronic applications and would have no ability to make enhancements to the existing application process. After exceeding 15,000 applications, a paper-based application would be needed for emergency utility bill assistance applicants.
FISCAL IMPACT:
This ordinance authorizes an agreement with the Residential Energy Assistance Partnership, Inc. for the issuance of utility assistance credits in a projected amount of $800,000.00 annually for the REAP utility assistance program through December 31, 2020 with two successive annual renewal terms ending on December 31, 2021 and December 31, 2022 respectively, and authorizes a revised agreement with Kinetech Cloud, LLC to host and maintain an emergency utility bill assistance application to electronically process up to 30,000 applications at a cost of $36,250 annually, and to provide enhancements to the application software as requested by the Department of Human Services at a cost of up to $20,000 through November 20, 2022.
RECOMMENDATION:
Staff recommends approval of an agreement with CPS Energy and Residential Energy Assistance Partnership, Inc. (REAP) for the issuance of utility assistance credits through the REAP program, and approval of an amendment to the agreement with Kinetech Cloud, LLC to host, maintain and provide enhancements to the DHS utility service application software for the electronic processing of emergency utility bill assistance.