TO: LINDA REICH, CITY MANAGER
FROM: NADYNE LOWRY, ACTING DIRECTOR OF FINANCE
SUBJECT
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California Extended Water and Wastewater Arrearage Payment Program Grant Acceptance.
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RECOMMENDATION
1) Accept and approve the use of $241,324.30 of grant funds (G3241) as outlined by the State of California under the California Extended Water and Wastewater Arrearage Payment Program to pay past due monthly bills for water (drinking) and wastewater service; and 2) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Appropriate revenue in the amount of $241,324.30 to the Water Fund 520. Acceptance of the grant proceeds will allow the City’s Water Utility to collect $234,295.44 in water (drinking) and wastewater usage charges on behalf of customers that might not otherwise be collected due to COVID-19 related impacts, plus administration charges of $7,028.86.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Public Service Excellence through Internal and External Partnerships
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Revenue: 5203100-59500-G3241 |
Expenditure: |
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BACKGROUND
The COVID-19 pandemic has made it challenging for our residents to pay their utility bills due to job loss and other hardships. Through federal funding allocated by the state legislature, the State Water Board has developed the California Extended Water and Wastewater Arrearage Payment Program to provide relief to water systems for unpaid bills related to the pandemic. Funding will cover water debt from residential and commercial accounts accrued between June 16, 2021, and December 31, 2022. The program will cover all water (drinking) and wastewater arrearages for residential and commercial accounts and 3% in administrative costs.
In compliance with the Program guidelines and SB155, staff has offered Chino residents the opportunity to enroll in a payment plan to aid those in need and decrease their delinquent balance.
There are accounts with outstanding balances that have accrued water (drinking) and wastewater debt within the specified time frame of June 16, 2021, and December 31, 2022. Of these accounts, there is $178,268.61 requested for residential debt and $56,026.83 requested for commercial debt. Also requested is $7,028.86 for Administrative Costs. The total award is $241,324.30.
Any funds received by the City and not credited to customer accounts or used by the City as administrative costs to apply for funding with the California Extended Water and Wastewater Arrearage Payment Program, must be remitted back to the State Water Board within six months of receiving payment. Staff will notify customers in writing of the amount credited and indicate the credited amount is being provided through the California Extended Water and Wastewater Arrearage Payment Program through funding from the State Water Resources Control Board using federal America Recovery Plan Act (ARPA) funds, as is required by the provisions of this grant.
ISSUES/ANALYSIS
Water (drinking) and wastewater systems that participate in the Program must:
1) Waive customer late fees for any arrearages accrued during the COVID-19 pandemic bill relief period in their entirety;
2) Allocate payments as bill credits to customer accounts within 60 days of receiving payment;
3) Notify customers of the amount credited, and if splitting the credit between tax years, when the second credit will be applied;
4) Offer to enroll customers with remaining debt into a payment plan by direct notification to each customer;
5) Allow customers 30 days to enroll in a payment plan;
6) Not discontinue water (drinking) and wastewater service until the customer defaults on the payment plan or misses the deadline to enroll in the payment plan;
7) Not discontinue water (drinking) and wastewater service prior to the date established in Health and Safety Code Section 116733.4 (e)(2)(A);
8) Comply with all terms and conditions of payment; and
9) Report on expenditures and customer credits.
Staff believes that the provisions of the grant are acceptable and within normal operating procedures. Therefore, acceptance and application of the grant proceeds is recommended.