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Request to Change the Scope of Homeowner Assistance Programs Funded by Water Operating BudgetCity of Dubuque City Council CONSENT ITEMS # 6. Copyrighted January 6, 2025 ITEM TITLE: Request to Change the Scope of Homeowner Assistance Programs Funded by Water Operating Budget SUMMARY: City Manager recommending City Council approval to combine and revise the scope of the homeowner assistance programs offered by the Water Department, and to proceed with the implementation of the Leaking Lead Service Line Replacement Program, as outlined in the attached document. SUGGUESTED Receive and File; Approve DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Leaking Lead Service Line Program Request MVM Memo 12.16.2024 3. Leaking Lead Service Line Replacement Program 01.06.2025 Page 133 of 366 Dubuque THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Request to Change the Scope of Homeowner Assistance Programs Funded by Water Operating Budget DATE: December 19, 2024 Water Department Director Christopher Lester is recommending City Council approval to combine and revise the scope of the homeowner assistance programs offered by the Water Department, and to proceed with the implementation of the Leaking Lead Service Line Replacement Program, as outlined in the attached document. I concur with the recommendation and respectfully request Mayor and City Council approval. 1�,A� k�4 S��' Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Christopher Lester, Water Department Director Jennifer Larson, Chief Financial Officer Carl Plumley, Water Distribution Supervisor Darrin Homb, Lead Distribution Maintenance Worker Deb Searles, Confidential Account Clerk Page 134 of 366 THE COF DtUB E Masterpiece on the Mississippi TO: Micheal C. Van Milligen, City Manager FROM: Christopher Lester, Water Department Director SUBJECT: Request to Change the Scope of Homeowner Assistance Programs Funded by Water Operating Budget DATE: December 16, 2024 Dubuque JUI-PAIMU Clp TIl Yvll_i nk:l F.41Y 2007-2012.2013 2017*2019 INTRODUCTION This memorandum requests review and approval to combine and revise the scope of the homeowner assistance programs offered by the Water Department for the replacement of damaged or leaking lead service lines. BACKGROUND The Water Department's annual operating budget includes $35,000 allocated for homeowner assistance programs aimed at replacing lead water service lines impacted by resiliency infrastructure projects or improving water services, by means such as replacement. These programs previously provided zero -interest, three-year forgivable loans and deferred payment loans for residents earning up to 80% of the area median income, with assistance of up to $4,999 per household. These programs were originally managed by the Housing & Community Development Department but have since been transferred back to the Water Department for administration. DISCUSSION As awareness of the City of Dubuque's Private Lead Service Line Replacement Pilot Program increases, Water Department staff have observed a rise in requests for assistance with lead service line replacements. In response, the Water Department has drafted a new Leaking Lead Service Line Replacement Program. This program will provide a forgivable grant of up to $4,999 to eligible residents who are pre -approved to replace a verified lead service line. The grant payment will be made after Water Department staff have verified that the line has been replaced with copper piping and confirm that the interior plumbing meets the requirements outlined in City Ordinance 14-1 H-1. The program was reviewed by Barry Lindahl from the Legal Department, who found no legal issues with offering a forgivable grant, recognizing it as a legitimate public purpose. Additionally, Water Department staff received income verification training from Madeline Haverland, Urban Development & Housing Rehabilitation Project Manager with the Housing and Community Development Department, enabling them to administer the program effectively within the Water Department. BUDGET IMPACT The Fiscal Year 2025 Operating Budget includes $35,000 in available funding under account 600- 42-0000-81-810-4231-00-01-64135 Leak Repair Grant. This funding can provide assistance for up to seven (7) lead service line replacements this fiscal year and each fiscal year funding is made available going forward. Page 135 of 366 REQUEST I respectfully request your review and approval to combine and revise the scope of the homeowner assistance programs offered by the Water Department, and to proceed with the implementation of the Leaking Lead Service Line Replacement Program, as outlined in the attached document. Attachment: Leaking Lead Service Line Program cc: Jennifer Larson, Chief Financial Officer Carl Plumley, Water Distribution Supervisor Darrin Homb, Lead Distribution Maintenance Worker Deb Searles, Confidential Account Clerk Page 136 of 366 THE CITY OF DUB E Masterpiece on the Mississippi Dubuque ll� AF1�7Cq - 2007.2012.2013 2DI7+2�19 EQUAL HOUSING OPPORTUNITY Water Department — Distribution Division 925 Kerper Ct. Dubuque, IA 52001 Office (563) 589-4291 LEAKING LEAD SERVICE LINE REPLACEMENT PROGRAM This program provides a forgivable grant to homeowners to assist with the replacement of a leaking lead service line that has been confirmed by City of Dubuque Water Department staff. This program is designed to assist income -qualified homeowners mitigate hazards to health, safety, and violations of City Ordinance that need immediate attention. Requirements Location ➢ Any owner -occupied single-family or duplex home, within the City of Dubuque. 2. Income ➢ A household is eligible if total household income does not exceed 80% of area median income, adjusted for family size, as follows: Household Size Income Max. Household Size Income Max. 1 $51,900 5 $80,050 2 $59,300 6 $86,000 3 $66,700 7 $91,900 4 $74,100 8 $97,850 3. Terms ➢ This is a forgivable grant. ➢ Grants are awarded based on available funding. ➢ Reimbursement must be obtained prior to replacement of lead service line. ➢ New service line material must be copper, and interior plumbing must be brought up to code per City Ordinance 14-1 H-1. ➢ Payment is subject to in -home verification of replacement by City of Dubuque Water Department staff. 4. Loan Amounts ➢ A maximum of $4,999 may be awarded per dwelling. 5. Eligible Costs ➢ Excavation, plumber and plumbing materials, permits and tapping fees and restoration of are eligible costs. F:\Users\Water\DISTRIBUTION\Service Lines\Service Line Leaks\Service Line Assistance/Leaking Lead Service Line Replacement Program Page 137 of 366