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Home My WebLink About2020-04-14; Municipal Water District; ; Potential future water customer bill financial assistance programCA Review _CKM_ Meeting Date: April 14, 2020 To: President and Board Members From: Scott Chadwick, Executive Manager Staff Contact: Mario Remillard, Meter Services and Customer Service Supervisor mario.remillard@carlsbadca.gov, 760-603-7343 Vicki Quiram, General Manager vicki.quiram@carlsbadca.gov, 760-438-2722 Subject: Potential future water customer bill financial assistance program Recommended Action Receive an update on a potential funding program for water service customers that cannot pay their water bills due to financial hardship. Executive Summary On Dec. 10, 2019, the Board of Directors of the Carlsbad Municipal Water District adopted Resolution No. 1625 approving a Residential Potable Water Service Shutoff Protection Policy for Non-Payment of Charges. This policy was in direct response to Senate Bill 998, the Water Shutoff Protection Act, which was signed into law by Governor Brown on Sept. 28, 2018. The Board also asked staff to return with information concerning the feasibility of creating a fund to assist water service customers that cannot afford to pay their water bills due to financial hardship. Since then, in response to the current COVID-19 state of emergency, CMWD has implemented the following temporary relief measures: •Water service will not be discontinued due to non-payment through May 31, 2020. •Late fees will not be assessed on utility bills for March, April or May 2020. •Business customers that have had to close to the public due to the COVID-19 pandemic may contact our Utilities Billing division to discontinue water service. This will stop any monthly fees associated with having an active water service account. When a restaurant or business establishment is ready to reopen, the fees to re-establish the account and to have the water turned back on will be waived. Additionally, on April 2, 2020, California’s governor issued Executive Order N-42-20. This Executive Order prohibits residential water shutoffs during the COVID-19 state of emergency and requires restoration of water service for residential water shutoffs occurring after the state of emergency began on March 4. The Executive Order also prohibits commercial water shutoffs if the business is in one of the critical infrastructure sectors. April 14, 2020 Item #6 Page 1 of 3 Discussion Staff has completed all necessary steps to comply with SB 998, which went into effect and were implemented by CMWD on Feb. 1, 2020. The required Senate Bill 998 payment processes complemented and enhanced CMWD’s existing efforts to assist people in need. Staff investigated other water agency processes in San Diego County to understand the level of assistance provided to customers struggling to pay water bills due to financial hardship. Based on information gathered, aside from the City of San Diego’s H2O SD program, no water district in San Diego County is operating a robust funding assistance program. Funded through charitable donations and run in partnership with 2-1-1 SD, the H2O SD program helps qualified low-income customers with their water and wastewater utility bill. Qualifying residents may receive a credit up to $100 on their utility bill once in a 12-month period. There is 2-1-1 SD referral information for CMWD customers on the back side of their printed water bills. Although CMWD water customers cannot receive financial assistance directly from 2-1-1 SD, 2-1-1 SD staff will take their information and refer them to one or more of the nonprofit agencies in San Diego County that could offer them financial assistance. Staff contacted 2-1-1 SD and they did not have specific information about callers from our city. Staff also contacted local nonprofits and one stated that it had given assistance with water bills in the past. In Carlsbad, the city Finance Department works closely with CMWD customers struggling to pay their bills. Currently, and in the past, staff call CMWD customers before the customers receive their final notice to pay before service is shut off. Staff also work with them to establish a timeline for repayment or set up a short payment plan. Under the new SB 998 water shutoff protection policy, if customers cannot arrange a short payment plan, they have the option of formally requesting one of the payment plan options in the policy. Staff will also give customers information about SD 211 and advise them to call to request assistance. Due to the current COVID-19 emergency, for the months of March, April and May, CMWD will not be assessing any late fees or discontinuing water services for residential customers due to non-payment. After a period of one year, staff plans to review how the SB 998 process has been implemented to determine whether a new need-based funding program is needed. Over the course of this first year with the new policy, staff will monitor the number of customers who cannot afford to pay their water bills due to financial hardship and the effectiveness of our new policy. The monitoring period will provide data regarding how much money a funding program would require annually. Staff will also continue to research what funding options might be available for CMWD customers including any new funding that may be available to address the COVID-19 emergency. Fiscal Analysis There is no fiscal impact to CMWD at this time. April 14, 2020 Item #6 Page 2 of 3 Next Steps 1. Monitor customer requests for assistance with water bill payment for one year. 2. Return to the board in one year with findings and recommendations regarding a potential future water customer financial hardship assistance program. Environmental Evaluation (CEQA) Under Public Resources Code section 21065, this action does not constitute a “project” within the meaning of the California Environmental Quality Act in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require further environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. April 14, 2020 Item #6 Page 3 of 3 Vicki Quiram, General Manager Cheryl Gerhardt, Finance Manager Mario Remillard, Meter Services Supervisor April 14, 2020 Potential Future Water Customer Bill Financial Assistance Program Recommended Action Accept an update on a potential funding program for water service customers that cannot pay their water bill due to financial hardship. Background •Senate Bill 998 Water Shutoff Protection Act -Signed into law on Sept. 28, 2019 •Carlsbad Municipal Water District Residential Shutoff Policy -Adopted by the Board of the Carlsbad Municipal Water District on Dec. 10, 2019 •Senate Bill 998 went into effect on Feb. 1, 2020 Potential Water Customer Bill Assistance •Staff conducted survey of other water agencies •City of San Diego program •H2O SD program •CMWD customers can apply with 2-1-1 SD •May be referred to other nonprofits for assistance Current Assistance From Billing Department •Staff shall contact customers prior to receiving final bill •Establish a timeline for payment or set up a short payment plan •Provide Senate Bill 998 information •Provide information about 2-1-1 SD Covid-19 Temporary Relief Measures •Water service will not be disconnected due to non- payment •Late fees will not be assessed •Special water service considerations to businesses •Executive order prohibiting water shut-offs Next Steps •Staff to review the Senate Bill 998 process after one year •Determine if need-based funding program is needed •Monitor number of customers who cannot pay their water bills due to financial hardship •Cost of funding an assistance program •Continue to research more funding options Recommended Action Accept an update on a potential funding program for water service customers that cannot pay their water bill due to financial hardship. 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