TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Peter Fernandez, PE, Public Works Director
SUBJECT:
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Extension of Emergency Utility Assistance and update on outreach and assistance provided to customers during the pandemic.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Strong and Diverse Economy; Welcoming and Livable Community
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ISSUE:
Shall Council adopt Resolution 2021-10 restating the terms of the Emergency Utility Assistance Program and extending the effective date for the increase in maximum annual assistance to December 31, 2021?
RECOMMENDATION:
recommendation
Adopt Resolution 2020-10 restating the terms of the Emergency Utility Assistance Program and extending the effective date for the increase in maximum annual assistance to December 31, 2021.
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SUMMARY:
The proposed resolution restates the terms of the Emergency Utility Assistance Program to include expanded pre-qualification eligibility criteria adopted in April 2020. The resolution extends the assistance effective date through December 31, 2021, increases the maximum annual assistance to $500 from $150, and allows customers who received assistance in 2020 to requalify in 2021 without waiting an additional twelve months.
FACTS AND FINDINGS:
1. The proposed resolution and exhibit (Attachments 1 and 2):
a. Restate the terms of the program and incorporates the expanded pre-qualification criteria based on Salem Housing Authority (SHA) and Mid-Willamette Valley Community Action Agency (MWVCAA) programs as permanent changes;
b. Establish an annual limit on assistance rather than a 12-month rolling period, allowing an additional $500 of assistance for qualified customers in 2021; and
c. Extend the increase in maximum annual assistance to $500 through December 31, 2021.
2. Assistance Provided to Residents. Since the expanded qualification criteria went into effect in May 2020, assistance has been provided to 764 customers in the amount of $135,442. A balance of $452,061 remains available and donations continue to increase the balance. The Emergency Utility Assistance Program is funded by donations from customers matched by up to $10,000 annually in utility rate revenue, a $37,903 MWVCAA donation, and an additional $500,000 of utility rate revenue approved by Council in April 2020.
3. Outreach Efforts. The Emergency Utility Assistance Program is managed in cooperation with St. Vincent DePaul, the Salvation Army, and (MWVCAA). The City initially partnered with SHA and MWVCAA to expand the identification of customers in need. In addition, the following outreach activities have been undertaken:
a. Billing assistance inserts were included in all customer utility bills in May 2020, December 2020, and February 2021 (Attachment 3 and 4).
b. Billing assistance inserts are included in all past due notices beginning February 22, 2020. (Attachment 4)
c. Low Income Assistance Program Donation inserts were included in all customer utility bills in March, May, July, September, and November 2020 (Attachment 5)
d. Past due notices and shutoff doorhangers were updated to include additional information about payment assistance programs in January 2021. Doorhangers are in English and Spanish.
e. Information about assistance programs was provided in the 12-month payment plan notices in August 2020, December 2020, and with the first 12-month payment plan invoice in February 2021. All notices were in English and Spanish.
f. Payment assistance information has been shared with the Statesman Journal in December 2020 and February 2021.
g. Promotional payment assistance information was shared on KBZY on February 18, 2021.
h. Promotional spots for utility assistance programs have been shared on social media and Stay Connected. (Attachment 6 and 7)
i. Promotional spots with the utility assistance information have been running prior to the City Council meetings beginning February 22, 2021. (Attachments 8 and 9)
j. The City webpage was updated on February 12, 2021 to make billing payment assistance information more prominent on the City’s homepage.
k. Staff has met with interested community members to identify and act on additional outreach opportunities including attendance at community meetings.
4. Payment Plan. On January 29, 2021, 2,270 accounts valued at $1.3 million were transferred from the City’s utility billing system to the accounts receivable system in the Finance Department and placed on a 12-month equal payment, no-interest plan. They included 2,087 residential, 49 multi-family, and 134 commercial accounts.
At the end of the first billing cycle, payments were received from 143 accounts for a total of $20,118.85. Of these, 17 accounts were paid in full. Payment was not received on 2,095 accounts that are currently considered past due. These may be eligible for referral to a contracted collection service on June 6, 2021, if payment is not made in the next 95 days. The remaining invoices were returned as undeliverable for various reasons. These accounts have been either closed, rebilled, or referred to a collection service.
5. Return to Standard Enforcement Practices. The City returned to standard collection practices, including shutoff for nonpayment, in January 2021 after delinquencies accumulating between March 2020 and December 2020 were placed on a payment plan.
All accounts that are not paid by the due date receive a payment reminder notice providing an additional seven days to pay. If payment is not received, customers are mailed a past due/shutoff notice and provided an additional seven days to pay. Accounts are not disconnected on Fridays or the business day prior to a City-observed holiday.
Since the return to standard enforcement practices, the first accounts aged to enforcement on January 25, 2021. A total of 455 accounts have been shut off. As of March 5, 2021, 46 remain disconnected from service. A total of 630 accounts have been referred to a collection service.
6. Current Delinquent Balances. As of February 28, 2021, a total of 1,934 customer accounts were delinquent in the total amount of $267,532.39. As of February 28, 2021, a total of 1,131 accounts were eligible for shutoff but had not been disconnected due to weather and workload associated with return to standard collection practices.
BACKGROUND:
1. Suspension of Disconnections. As a result of the health and economic impacts of COVID-19, the City temporarily stopped disconnecting utility services on March 13, 2020, and restored utility services to recently disconnected accounts, ensuring residents had access to clean and safe drinking water during the pandemic. Suspension of disconnections also occurred from February 11 through February 19, 2021, due to the ice storm and the associated emergency declarations.
2. Emergency Utility Assistance Program. On April 27, 2020, Council adopted Resolution 2020-22 including actions and assistance designed to help customers experiencing economic hardship as a result of COVID-19. Resolution 2020-40 (Attachment 10) extended these program changes through July 31, 2021. Expanded provisions adopted in April 2020 included:
a. An increase in utility assistance program funding by $500,000;
b. An increase in the maximum annual assistance per account to $500; and
c. Expansion of eligibility criteria to include prequalification of customers who receive assistance from other income-based programs such as those administered by SHA and MWVCAA.
Alicia A. Blalock
Administration Division Manager
Attachments:
1. Resolution 2021-10
2. Exhibit A - Emergency Utility Assistance Program, March 2021
3. Billing Utility Assistance Insert
4. Billing Assistance Program Insert (English/Spanish)
5. Low Income Utility Assistance Donation Program
6. Stay Connected Utility Assistance Promotion
7. Social Media Utility Rate Relief Program Promotion
8. Utility Assistance Council Meeting Promotion 1
9. Utility Assistance Council Meeting Promotion 2
10. Resolution 2020-40 with Exhibit