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Home My WebLink About2021-11-18; California Water Arrearage Payment Program (Districts - All); Gomez. PazTq the members of the: CITY COUNCIL Oat~~ CA J CC V CM ~A.6-Jt~DCM {3) ~ Nov. 18, 2021 CMWD Board Memorandum To: Carlsbad Municipal W er D trict Board of Directors From: Paz Gomez, Deputy City a r, Public Works Vicki Quiram, General ana Via: Scott Chadwick, Executi\,__ma_ · r Re: California Water Arrearage Payment Program (Districts -All) Ccarlsbad Municipal Water District Memo ID# 2021215 This-memorandum provides information on the Carlsbad Municipal Water District's (CMWD) application to the State of California for funding to assist the CMWD's water customers that need assistance due to COVID-19 impacts. This potential funding source for outstanding customer debt was discussed in a staff report dated Sept. 28, 2021, Utility Billing Water Service Shutoff and Late Fee Update (Attachment A). Background The California State Water Resources Control Boa_rd's Water and Wastewater Arrearage Payment Program {Program) is now a(:cepting applications from water agencies for water customer arrearages that are outstanding for the bilfing period from March 4, 2020, through . June 15, 2021. Customer debt remains from this time period and indudes more recent debt in part due to Senate Bill {SB} 1~5, which Governor Newsom signed to extend ,the shutoff for nonpayment prohibition through Dec. 23, 2021, in response to the COVID-19 emergency. The application is due Dec. 6, 2021. The CMWD expects to get a response on how much will be awarded in the next few months. This Program will distribute funds received from the federal. government via the American Rescue Plan Act to water agencies !or customer debt that accrued during the specified COVID- 19 time period. If the CMWD receives funding, it will be applied against the customer accounts in arrears in accordance with th_e Program guidelrnes. The Program is initially providing funds for water arrearages only, though it is expected that funding will be available for wastewater arrearages within the next six months. - Until the CMWD confirms what funding will be received, staff will continue to implement the shutoff and late fee plan (Attachment A), that the City Council' approved on Sept. 28, 2021. State arrearages funding will be applied to any customers with remaining qualifying arrearages at the time of funding receipt. Per the Program guidelines, any unused funds must be returned to the State. Carlsbad Municipal Water District 5950 El Camino Real I Carlsbad, CA 92008 I 760-438-2772:t Board Memo -California Water Arrearage Payment Program (Districts -All) Nov. 18, 2021 Page 2 . ,,- Discussion ;• .... I t • On Sept. 28, 2021, the City Council and the CMWD Board voted to reestablish late fees and shutoffs for customers that are over 60 days late on their utility bill payments and have not setup a payment plan as of Dec. 31., 2021. As of that staff report, there were more than 400 customers over 60 days past due in paying their bills and a total past due amount of about $450,000, which included water and wastewater. Since September 2021, the CMWD staff have informed customers with outstanding debt via mailers and door hangers that they risk water shutoff if their accounts are not paid or a payment plan is not established before Jan. 1, 2022. As a result of this effort, some customers have paid back water and wastewater debt, reducing revenue loss for the CMWD and the Utilities Department. Even when customers do not pay, the·CMWD must still pay the San Diego County Water Authority for purchased water and the Utilities Department must still pay the Encina Wastewater Authority ·for wastewater treatment. Staff anticipate applying for $200,000, which would be applied to qualifying water accounts. If received, the arrearages funding would be added to customer accounts that qualify under the terms of the state program. Since the CMWD cannot guarantee what funding will be received, if any, staff are continuing to notify customers of potential shutoffs. The current program is for water arrearages only, but the state plans to open a funding opportunity for wastewater arrearages in the coming months. Next Steps Staff will complete the application by the deadline of Dec. 6, 2021, and will continue to monitor for an opportunity to apply for wastewater arrearages should that arise. If funding is awarded, it will be distributed toward outstanding customer debt and staff will inform those customers who are affected. Attachment: A. Staff Report, dated Sept. 28, 2021 (Due to the size of Attachment A, a hardcopy i-s on file in the Office of the City Council, as reference) cc: Geoff Patnoe, Assistant Executive Manager Celia Brewer, General Counsel Laura Rocha, Deputy City Manager, Administrative Services Robby Contreras, Assistant General Counsel Kristina Ray, Community & Engagement Director Ryan Green, Finance Director Cheryl Gerhardt, Finance Manager JO INT CITY COUNCIL AND ATTACHMENT A C ARLSBAD MUNICI PAL WATER D I STR I CT Staff Report CA Review RMC Meeting Date: To: From: Staff Contact: Subject: Districts: Sept. 28, 2021 Mayor and City Council/President and Board Members Scott Chadwick, City Manager/Executive Manager Vicki Quiram, Utilities Director/General Manager vicki.quiram@carlsbadca.gov, 760-438-2722 Ryan Green, Finance Director ryan.green@carlsbadca.gov, 760-602-2414 Utility Billing Water Service Shutoff and Late Fee Update All Recommended Action Adopt a resolution approving an implementation plan to reestablish late fees and shutoffs for customers that are over 60 days late on their utility bill payments, have not set up a payment plan or received other relief per the city's Residential Water Service Shutoff Protection Policy, or received available financial aid as of Dec. 31, 2021. Executive Summary On March 4, 2020, Governor Newsom declared a state of emergency as a result of the COVID- 19 pandemic. The Governor issued Executive Order N-42-20 (Exhibit 2), which prohibited discontinuation of water service, or shutoffs, during the COVID-19 emergency. On April 14, 2020, staff presented a report to the Carlsbad Municipal Water District Board on potential funding programs for water service customers who cannot pay their water bills due to financial hardship. This presentation also noted that staff would continue to analyze additional funding options and return to the Carlsbad Municipal Water District Board in one year to give an update. On May 5, 2020, the CMWD Board adopted Resolution No. 1639 (Exhibit 3), which confirmed the Executive Manager's previous COVID-19 temporary customer financial relief measures and extended them through June 30, 2020, or the end of the state of emergency. Although it was not required by the Governor's executive order, the CMWD Board resolution also suspended late fee charges until the end of the state of emergency. The city's Finance Department Utility Billing Division and CMWD have not performed water service shutoffs or charged late fees since March 2020. Currently, there are more than 400 customers who are over 60 days past due in paying their bills, for a total past due amount of approximately $450,000. On Ju ne 11, 2021, Governor Newsom issued Executive Order N-08-21 (Exhibit 4). This order set an expiration of Sept. 30, 2021, for Executive Order N-42-20. If directed by the CMWD Board, staff could start shutoff procedures in accordance with CMWD's Residential Water Service Sept. 28, 2021 Item #2 Page 1 of 51 Shutoff Protection Policy, approved by CMWD Resolutlon No. 1625 (Exhibit 5), beginning on Jan. 1, 2021. This course of action assumes the Governor will issue no further executive orders on the subject. However, staff recommend a past due water bill implementation plan, which will provide customers ample time to apply for financial assistance and/or arrange to pay past-due amounts. If the board approves the recommended action, late-fee charges and shutoffs will resume on Jan. 1, 2022 for customers in arrears who do not arrange payment plans with the Utility Billing Division. This plan was developed assuming that the Governor would not issue further executive orders that extended the shutoff prohibition. However, it can still be applicable if the budget trailer bill Senate Bill 155, approved by the legislature on Sept. 9l 2021, is signed by the Governor as expected. This bill contains an extension of the shutoff prohibition until Dec. 31, 2021. Like the Governor's original executive order, it does not prohibit charging late fees. Staff's plan recommends the same date of Dec. 31, 2021 for extension of the shutoff prohibition and resuming shutoffs and late fees on Jan. 1, 2022. Discussion The city's Finance Department Utility Billing Division manages the CMWD water billings and collections. Because of the State of California Executive Order N-42-20 and the Board's Resolution No. 1639, the Utility Billing Division and CMWD have not performed water service shutoffs or charged late fees since March 2020. There was no requirement in t he executive order to stop charging late fees. The city continues to issue past-due notices and phone alerts to customers whose accounts are over 60 days past due. This encourages customers to pay as much as possible to avoid large balances that will be subject to a late fee and/or water shutoff in the future. Staff have also provided information on applying for utility bill assistance programs to help residents pay for utility bills. CMWD and the city wastewater utility cannot forgive the debt of any of their customers because they are public entities subject to Proposition 218. (Article XIII of the California Constitution). Under this proposition, customer rates must be proportional to the costs of providing water and wastewater to each customer. In other words, no customer may be charged more than the actual costs to provide water and wastewater service to that individual customer. Forgiveness of water and wastewater bills would therefore mean that some customers would pay more than the actual costs to provide them water or wastewater service, which in effect would be subsidizing nonpaying customers. Unless state, federal or local programs are implemented to cover these costs, each customer must ultimately pay for the services that they use. On May 4, 2021, the CMWD Board received a report regarding information on customer water bill assistance programs that were available at that time (Exhibit 6). Since then, more money has become available for rent and utility-bill assistance. In August 2021, CMWD and the city received information on the California Water and Wastewater Arrearage Payment Program, passed as part of Assembly Bill 148. The program does not offer assistance to customers directly, but is being developed to provide funding for "community water systems" that have experienced revenue shortfalls and arrearages on water and wastewater bills during the COVID- Sept. 28, 2021 Item #2 Page 2 of 51 19 pandem1c. Community water systems must follow the state,.s guidance and take steps to qualify for funding. CMWD and the city's Utility Billing Division submitted the data required in the initial survey for qualification before the Sept. 10, 2021 deadline. At this time there is no way to know if CMWD will qualify for funding, but staff are pursuing this option. It is likely that much of the money will go to underserved communities. The state plans to begin to disburse funds by Nov. 1, 2021. Should CMWD and the city be eligible for funding under this program, staff will apply for and distribute the relief in line with state guidelines. The recommended implementation plan to reestablish late fees and shutoffs for customers that are over 60 days late on their utility-bill payments will provide customers ample time to apply for financial assistance, arrange to pay past-due amounts, or if eligible, establish a formal payment plan under the guidelines contained in the Residential Water Service Shutoff Protection Policy. This plan is as follows: • In October 2021, door hangers will be issued to customers who are over 60 days past due and have not pursued an alternative procedure for payment by contacting the Utility Billing Division or available f inancial aid programs. The door hangers will inform customers that CMWD will resume charging late fees and shutoffs in January 2022. o The door hangers will include information on the website for the San Diego County's Emergency Rental and Utility Bill Assistance Program, which still has money available for qualifying households, information on any other state and federal assistance programs that become available, and on how to contact 2-1-1 San Diego to be referred to local nonprofit organizations for financial help and to obtain financial assistance for other needs such as rent, food and electric utility bills. o The city will not charge a door hanger fee for this initial service. • By Nov. 1, 2021, at a minimum, the state is to provide information on what, if any, funding will be provided to CMWD to cover a portion of arrearages. lf the funds are available and provided, staff will follow the state's guidelines for distribution of the funds and customer bills may be subsidized, resulting in fewer late fees and shutoffs in January 2022. • Customers will have until Dec. 31, 2021, to bring their accounts current or if eligible, establish a formal payment plan under the guidelines co ntained in the Residential Water Service Shutoff Protection Policy before late fees and shutoff procedures will begin. • For those accounts that are not current or on a payment plan by Dec. 31, 2021, late fees will start accruing and the water service shutoff procedures will begin on Jan. 1, 2022. • All notices and procedures that staff will follow for shutting off water service are described in the Residential Water Service Shutoff Protection Policy for Nonpayment of Charges (Exhibit 7). • Once a customer's water service is shutoff, the customer must pay a disconnection fee of $44, along with any balance over 60 days past due and a water service reconnection fee (currently $72 for next-day service). Sept. 28, 2021 Item #2 Page 3 of 51 Options Staff provide the following options for the City Council/CMWD Board's consideration: 1. Approve an implementation plan to reestablish late fees and shutoffs for customers who are over 60 days late on their utility bill payments, have not set up a payment plan or received other relief per the city's Residential Water Service Shutoff Protection Policy, or received available financial aid as of Dec. 31, 2021 Pros • Customers will be given ample time to pay their bills or if eligible, establish a formal payment plan under the guidelines contained in the Reside ntial Water Service Shutoff Protection Policy • CMWD and the city will start collecting past~due amounts to fund essential water and wastewater services • Resuming late-fee charges may encourage customers to apply for utility bill assistance and/or pay to become current on their bills Cons • None identified 2. Do not approve an implementation plan to reestablish late fees and shutoffs for customers that are over 60 days late on their utility bill payments, have not set up a payment plan or received other relief per the city's Residential Water Service Shutoff Protection Policy, or received available financial aid as of Dec. 31, 2021 Pros • Approximately 400 customers will continue to have uninterrupted water service without making payments or paying late fees until the COVID-19 state of emergency is completely lifted by the Governor, at which time they will need to pay the arrearages using procedures in the CMWD shutoff policy Cons • Customers that do not pay their bill or set up a payment plan will continue to accrue arrearages • CMWD will continue to purchase water for customers while not receiving payment, negatively impacting revenl.le and reserves • As outlined in Proposition 218, customers must pay their own bills back per the Residential Water Service Shutoff Protection Policy (other customers cannot subsidize past-due bills), unless federal, state or local aid is obtained • Extending prohibition of water shutoffs would encourage customers' continued delay to apply for utility bill assistance Staff recommend Option 1 for the City Council/CMWD Board -Approve an implementation plan to reestablish late fees and shutoffs for customers that are over 60 days late on their utility bill payments, have not set up a payment plan or received other relief per the city's Residential Water Service Shutoff Protection Policy, or received available financial aid as of Dec. 31, 2021. Fiscal Analysis Proceeding with the recommended action is expected to result in increased receipts and revenue for the Utilities Department and CMWD in the form of payments for bills in arrears, late fees, and shutoff and turn-on fees. The amount of increased revenue will not be known Sept. 28, 2021 Item #2 Page 4 of 51 until the action is implemented. Existing staff will implement the acti'on as part of their regular duties, so no other expenses are expected. Next Steps Staff will continue to monitor the Governor's executive orders regarding the COVID-19 state of emergency and discontinuance of water service. On Jan. 1, 2022, staff will resume the charging of late fees and shutoffs for those customers that are 60 days past due on their utility bill payments as of Dec. 31, 2021, and who do not pay their arrearage or if eligible, establish a formal payment plan by Dec. 31, 2021. This course of action assumes: L The CMWD Board approves staff's recommended implementation plan 2. The Governor's executive order prohibiting the discontinuation of water service during the COVID-19 emergency is not extended past Dec. 31, 2021 Environmental Evaluation This action does not constitute a "project" within the meaning of the California Environmental Quality Act under Public Resources Code section 21065 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 environmental review. Public Notification and Outreach Public notice of this item was posted in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. CMWD Board resolution 2. State of California Executive Order N-42-20 3. CMWD Board Resolution No. 1639 4. State of California Executive Order N-08-21 5. CMWD Board Resolution No. 1625 6. May 4, 2021, CMWD staff report 7. Residential Water Service Shutoff Protection Policy for Nonpayment of Charges Sept. 28, 2021 Item #2 Page 5 of 51 RESOLUTION NO. 1663 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING AN IMPLEMENTATION PLAN TO REESTABLISH LATE FEES AND SHUTOFFS FOR CUSTOMERS THAT ARE OVER 60 DAYS LATE ON THEIR UTILITY BILL PAYMENTS Exhibit 1 WHEREAS, on March 4, 2020, Governor Newsom declared a state of emergency as a result of the COVID-19 pandemic; and WHEREAS, on April 14, 2020, the Carlsbad Municipal Water District, or CMWD, staff presented a report to the CMWD Board on potential funding programs for water service customers that cannot pay their water bills due to financial hardship and also providing that staff would continue to analyze additional funding options and return to the CMWD Board in one year to give an update; and WHEREAS, on May 5, 2020, the CMWD Board adopted Resolution No. 1639, which confirmed the Executive Manager's previous COVID-19 temporary customer financial relief measures and extended them through June 30, 2020, or the end of the state of emergency, thereby suspending potable water shutoffs; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21. This executive order set an expiration of Sept. 30, 2021, for Executive Order N-42-20, which prohibited water shutoffs during the COVID-19 emergency; and WHEREAS, on Sept. 9, 2021, the legislature approved budget trailer bill, Senate Bill (SB) 155, which is expected to be signed by the Governor, and contains an extension of the shutoff prohibition until Dec. 31, 2021 but does not prohibit charging late fees; and WHEREAS, staff propose an implementation plan to reestablish late fees and shutoffs as of Jan. 1, 2022, for customers that are 60 days late on their utility bill payments as of Dec. 31, 2021, and do not pay their arrearage or if eligible, establish a formal payment plan or receive other relief under the guidelines contained in the Residential Water Service Shutoff Protection Policy or receive financial aid. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of the City of Carlsbad, California, as follows; 1. That the above recitations are true and correct. 2. That, as of Jan.1, 2022, the City of Carlsbad's Finance Department Ut ility Billing Division and CMWD will resume charging late fees and shutoffs for customers that are 60 days late on their Sept. 28, 2021 Item #2 Page 6 of 51 Exhibit 1 utility bill payments as of Dec. 31, 2021, and who do not pay their arrearage or if eligible, establish a formal payment plan or receive other relief under the guidelines contained in the Residential Water Service Shutoff Protection Policy or receive financial aid by Dec. 31, 2021. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 281h day of September, 2021, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Acosta, Norby. NAYS: None. ABSENT: None. Sept. 28, 2021 Item #2 Page 7 of 51 EXECUTIVE DEPARTMENT STATE OF CALIFORNIA EXECUTIVE ORDER N-42-20 EXHIBIT2 WHEREAS on March 4, 2020, I proclaimed a state of emergency to exist in California as a result of the threat of COVID-19; and WHEREAS it is the established policy of the State under Water Code section 106.3 that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes; and WHEREAS to limit the spread of COVID-19 it is crucial that Californians wash their hands regularly and thoroughly; and WHEREAS many Californians are experiencing or will experience substantial losses of income as a result of business closures, the loss of work hours or wages, or layoffs related to COVID-19, which may hinder their ability to make payments for water service and subject them to water shutoffs due to non- payment; and WHEREAS many small businesses that provide services essential to the health and well-being of Californians have experienced substantial reductions in income, which may hinder their ability to make payments for water service and subject them to water shutoffs due to non-payment; and WHEREAS the California Public Utilities Commission has directed private water utilities under its jurisdiction to implement customer service protections, including a moratorium on service disconnections, during the COVID-19 emergency: and WHEREAS more than JOO public and private water systems hove voluntarily agreed to halt disconnections as well; and WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with the various statutes and regulations concerning water shutoffs specified in this order would prevent, hinder, or delay appropriate actions to prevent and mitigate the eff_ects of the COVID-19 pandemic. NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and the statutes of the State of California, and in particular, Government Code sections 8567, 8570, 8571, and 8627, do hereby issue the following order to become effective immediately: IT IS HEREBY ORDERED THAT: 1) The authority of urban and community water systems, as defined in Health and Safety Code section 116902. subdivision (d), to discontinue residential service, as defined in Health and Safety Code section 116902, subdivision (c), for non-payment under Health and Safety Code sections 116908 and 116910, is suspended. 2) Water systems not subject to the requirements of Health and Safety Code sections 116908 and 116910 shall not discontinue residential Seot. 28 2021 ftpm #J Oc,no Rof c;1 service, as defined in Health and Safety Code section 11 6902, subdivision (c), for non-payment. 3) Water systems shall restore any residential service to occupied residences that has been discontinued for nonpayment since March 4, 2020. 4) Water systems shall not discontinue service to any business in the critical infrastructure sectors designated by the State Public Health Officer as critical to protect the health and well-being of all Californians that qualifies as a small business under 13 C.F.R. § 121.201 of the Small Business Administration's regulations. 5) The State Water Resources Control Board shall identify best practices, guidelines, or both to be implemented during the COVID-19 emergency '(i) to address non-payment or reduced payments, (ii) to promote and to ensure continuity of service by water systems and wastewater systems, and (iii) to provide measures such as the sharing of supplies, equipment and staffing to relieve water systems under financial distress. Nothing in this Order eliminates the obligation of water customers to pay for water service, prevents a wafer system from charging a customer for such service, or reduces the amount a customer already may owe to a water system. Nothing in this Order modifies the obligations of urban and community waters systems to comply with provisions of the Wafer Shutoff Protection Act not specifically addressed by this Order or other applicable laws, regulations, and guidelines. IT IS FURTHER ORDERED that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order. This Order is not intended to, and does not, create any rights or benefits. substantive or procedura l, enforceable at law or in equity, against the State of California, ifs agencies, departments, entities, officers, employees, or any other person. ATTEST: ALEX PADILLA Secretary of State ~~M d the Great Seal of the be affixed this 2nd RESOLUTION NO. 1639 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT (CMWD BOARD} OF THE CITY OF CARLSBAD, CALIFORNIA, CONFIRMING THE EXECUTIVE MANAGER'S TEMPORARY RELIEF MEASURES IN RESPONSE TO THE COVID-19 PANDEMIC STATE OF EMERGENCY AND AUTHORIZING THE EXECUTIVE MANAGER TO EXTEND THESE MEASURES THROUGH JUNE 30, 2020, OR THE END OF THE STATE OF EMERGENCY, IF NECESSARY. WHEREAS, there is currently a COVID-19 pandemic state of emergency; and Exhibit3 WHEREAS, on Dec. 10, 2019, the CMWD Board adopted Resolution No. 1625, approving a Residential Potable Water Service Shutoff Protection Policy for Non-Payment of Charges in compliance with California Senate Bill 998, the W~ter Shutoff Protection Act, enacted on Sept. 28, 2018; and WHEREAS, in addition to the measures outlined in the Senate Bill 998 policy, and due to the transition to a new utility billing system as well as the current COVID-19 pandemic state of emergency, the Executive Manager implemented the following temporary relief measures: (1) Potable water service will not be discontinued due to non-payment through May 31, 2020 {2) late fees will not be assessed on all utility bills for March, April and May 2020 {3} Potable water business customers that have closed their accounts due to the COVID-19 pandemic state of emergency may contact the Finance Department Utilities Billing Division to discontinue water service, which will stop the accrual of any monthly fees associated with having an active potable water service account, and then, when ready to reopen, may have water service reestablished without paying a reconnection fee; and WHEREAS, after implementation of these temporary relief measures, California's Governor issued Executive Order No. N-42-20, which prohibits residential potable water shutoffs during the COVID-19 pandemic state of emergency, requires restoration of water service for residential water shutoffs occurring after the state of emergency began on March 4, 2020, and prohibits commercial water shutoffs if the business is in a critical infrastructure sector; and WHEREAS, staff recommends the CMWD Board confirm the temporary relief measures implemented by the Executive Manager; and WHEREAS, staff recommends the CMWD Board authorize the Executive Manager to extend the temporary relief measures through June 30, 2020, or the end of the state of emergency, if necessary. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water Di5!~pl.°.fa,~cfiiiY of Carlsbad, California, as follows; Item #2 Page 10 of 51 l. That the above recitations are true and correct. 2. That the CMWD Board confirms the temporary relief measures implemented by the Executive Manager. 3. That the CMWD Board authorizes the Executive Manager to extend the temporary relief measures through June 30, 2020, or the end of the state of emergency, if necessary. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad Municipal Water District of the City of Carlsbad on the 5th day of May, 2020, by the following vote, to wit: AYES: NAYS: ABSENT: Sept. 28, 2021 Hall, Blackburn, Bhat-Patel, Schumacher. None. None. MATT HALL, President {SEAL) Item #2 Page 11 of 51 EXECUTIVE DEPARTMENT STATE OF CALIFORNIA EXECUTIVE ORDER N-08-21 EXHIBIT4 WHEREAS on Morch 4, 2020, I proclaimed o State of Emergency to exist in California as a result of the threat of COVID-19; and WHEREAS since March 2020, the State has taken decisive and meaningful actions to reduce the spread, and mitigate the impacts, of COVID-19, saving an untold number of lives; and WHEREAS as a result of the effective actions Californians have taken, as well as the successful and ongoing distribution of COVID-19 vaccines, California is turning a corner in its fight against COVID-19; and WHEREAS on June 11, 2021, I issued Executive Order N-07-21, which formally rescinded the Stay-at-Home Order (Executive Order N-33-20, issued on March 19, 2020}, as well as the framework for a gradual, risk-based reopening of the economy (Executive Order N-60-20, issued on May 4, 2020); and WHEREAS in light of the current state of the COVID-19 pandemic in California. it is appropriate to roll bock certain provisions of my COVID-19-related Executive Orders; and WHEREAS certain provisions of my COVID-19 related Executive Orders currently remain necessary to continue to help California respond to, recover from, and mitigate the impacts of the COVID-19 pandemic, including California's ongoing vaccination programs, and the termination of certain provisions of my COVID-19 related Executive Orders during this stage of the emergency would compound the effects of the emergency and impede the State's recovery by disrupting important governmental and social functions; and WHEREAS under the provisions of Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Order would continue to prevent, hinder, or delay appropriate actions to prevent and mitigate the effects of the COVID-19 pandemic. NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes of the State of California, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately: IT IS HEREBY ORDERED THAT: The following provisions shall remain in place and shall have full force and effect through June 30, 2021, upon which time they will expire subject to individual conditions described in the enumerated paragraphs below. Sept. 28, 2021 Item #2 Page 12 of S1 1) State of Emergency Proclamation dated March 4, 2020: a. Paragraph 10. Any facility operating under a waiver pursuant to this provision, memorialized in an All Facilities Letter, may operate pursuant to such a waiver through the stated expiration in the All Facilities Letter or September 30, 2021, whichever occurs first; b. Paragraph 11; c. Paragraph 12; and d. Paragraph 13. 2) Executive Order N-25-20: a. Paragraph l; and b. Paragraph 7, and as applicable to local governments per Executive Order N-35-20, Paragraph 3. Effective July 1, 2021, the waivers in Executive Order N-25-20, Paragraph 7, and Executive Order N-35-20, Paragraph 3, of reinstatement requirements set forth in Government Code sections 7522.56(f) and (g) are terminated. 3) Executive Order N-26-20: a. Paragraph 1: b. Paragraph 2; c. Paragraph 3; d. Paragraph 5; e. Paragraph 6; and f. Paragraph 7. 4) Executive Order N-27-20: o. Paragraph 1; b. Paragraph 2; and c. Paragraph 3. 5) Executive Order N-28-20: a. Paragraph 3; and b. Paragraph 6. 6) Executive Order N-31-20: a. Paragraph 1; and b. Paragraph 2. 7) Executive Order N-35-20: a. Paragraph l. Any facility operating under a waiver pursuant to this provision, memorialized in an All Facilities Leiter, may operate pursuant to such o waiver through the stated expiration in the All Facilities letter or September 30, 2021, whichever occurs first; b. Paragraph 4; c. Paragraph 6. To the extent the Director exercised their authority pursuant to this provision on or before June 30, 2021, the extension shall remain valid until the effective expiration; d. Paragraph l 0. The State Bar shall receive the time extension in the aforementioned order for any nomination submitted to the State Bar by the Governor on or before June 30, 2021; and e. Paragraph 11 (as extended and clarified by N-71-20. Paragraph 6). Claims accruing before June 30, 2021 will remain subject to the 120- day extension granted in the aforementioned orders. 8) Executive Order N-36-20. Paragraph 1. To the extent the Secretary exercised their authority pursuant to this provision, the Secretary shall allow each facility to resume intake in a manner that clears intake backlog as soon as feasible. 9) Executive Order N-39-20: a. Paragraph 1. Any facility operating under a waiver pursuant to this provision, memorialized in an All Facilities Letter, may operate pursuant to such a waiver through the stated expiration in the All Facilities Letter or September 30, 2021, whichever occurs first; b. Paragraph 4; and c. Paragraph 7. The leases or agreements executed pursuant to this provision shall remain valid in accordance with the term of the agreement. 10) Executive Order N-40-20: a. Paragraph 1. For rulemakings published in the California Regulatory Notice Register pursuant to Government Code section 11346.4(0) (5) prior to June 30, 2021, the deadlines in the aforementioned order shall remain extended in accordance with the order; b. Paragraph 2 (as extended and clarified by N-66-20, Paragraph 12, and N-71-20, Paragraph 10). Notwithstanding the expiration of this provision, state employees subject to these training requirements shall receive the benefit of the 120-doy extension granted by the aforementioned orders. All required training due on or before June 30, 2021 must be completed within 120 days of the statutorily prescribed due dote; c. Paragraph 7 (as extended and clarified by N-66-20, Paragraph 13 and N-71-20. Paragraph 11 ). With regard to appeals received on or before June 30, 2021, the State Personnel Board shall be entitled to the extension in the aforementioned order to render its decision; d. Paragraph 8. To the extent the deadlines specified in Government Code section 22844 and California Code of Regulations, title 2, sections 599.517 and 599.518 fell on a date on or before June 30, 2021 absent the extension, they shall expire pursuant to the limeframes specified in the aforementioned orders; e. Paragraph 16; f. Paragraph 17; and g. Paragraph 20. 11) Executive Order N-45-20: a. Paragraph 4; b. Paragraph 8; c. Paragraph 9; and l•om w, P:,a" 14 of S1 d. Paragraph 12. For vacancies occurring prior to June 30, 202 l, the deadline to fill the vacancy shall remain extended for the time period in the aforementioned order. 12) Executive Order N-46-20: a. Paragraph 1; and b. Paragraph 2. 13) Executive Order N-47-20: a. Paragraph 2; and b. Paragraph 3. 14) Executive Order N-48-20, Paragraph 2 (which clarified the scope of N-34- 20). 15) Executive Order N-49-20: a. Paragraph 1; b. Paragraph 3. For determinations made on or before June 30, 202 l, the discharge date shall be within 14 days of the Board's determination; and c. Paragraph 4. 16) Executive Order N-50-20, Paragraph 2. 17) Executive Order N-52-20: a. Paragraph 6; b. Paragraph 7. To the extent on individual has commenced a training program prior to June 30, 2021, that was interrupted by COVID-19, that individual shall be entitled lo the ex1ended timeframe in the aforementioned order; and c. Paragraph 14; and d. Paragraph 16. 18) Executive Order N-53-20: a. Paragraph 3; b. Paragraph 12 (as extended or modified by N-69-20, Parograph l 0, and N-71-20, Paragraph 27); and c. Paragraph 13 (as extended or modified by N-69-20, Paragraph 11, and N-71-20, Paragraph 28). 19) Executive Order N-54-20, Paragraph 7. To the extent the date governing the expiration of registration of vehicles previously registered in a foreign jurisdiction falls on or before June 30, 2021, the deadline is extended pursuant to the aforementioned orders. 20) Executive Order N-55-20: a. Paragraph I . Statutory deadlines related to cost reports, change in scope of service requests, and reconciliation requests occurring on r--.6. 'lo 1{YJ1 D""" 1 c; nf c;1 or before June 30, 2021 shall remain subject to the extended deadline in the aforementioned order; b. Paragraph 4: c. Paragraph S; d. Paragraph 6; e. Paragraph 8; f. Paragraph 9; g. Paragraph 10; h. Paragraph 13; i. Paragraph 1 4. Statutory deadlines related to beneficiary risk assessments occurring on or before June 30, 2021 shall remain subject to the extended deadline in the aforementioned order; and j. Paragraph 1 6. Deadlines for fee-for-service providers to submit information required for a Medical Exemption Request extended on or before June 30, 2021 shall remain subject to the extended deadline granted under the aforementioned order. 21) Executive Order N-56-20; a. Paragraph 1; b. Paragraph 6; c. Paragraph 7; d. Paragraph 8; e. Paragraph 9; and f. Paragraph 11. 22) Executive Order N-59-20, Paragraph 6. 23) Executive Order N-61-20: a. Paragraph 1; b. Paragraph 2; c. Paragraph 3; and d. Paragraph 4. 24) Executive Order N-63-20: a. Paragraph B(a) (as extended by N-71-20, Paragraph 40). The deadlines related to reports by the Division of Occupational Safety and Health (Cal/OSHA) and the Occupational Safety & Health Standards Board on proposed standards or variances due on or before June 30, 2021 shall remain subject to the extended timeframe; b. Paragraph 8(c). To the extent the date upon which the Administrative Director must act upon Medical Provider Network applications or requests for modifications or reapprovals falls on or before June 30, 2021 absent the extension in the aforementioned order, it shall remain subject to the extended timeframe; c. Paragraph 8(e). To the extent filing deadlines for a Return-to-Work Supplement appeal and any reply or responsive papers fall on or before June 30, 2021 , absent the extension in the aforementioned order, they shall remain subject to the extended timeframe; d. Paragraph 9(a) (as extended and modified by N-71-20, Paragraph 39). Any deadline setting the time for the Labor Commissioner to c-...,n• 10 ")ff)1 ••~~ .,, P::iao 1 /; nf t;1 issue any citation under the Labor Code, including a civil wage and penalty assessment pursuant to Labor Code section 17 41, that, absent the aforementioned order, would have occurred or would occur between May 7, 2020 and September 29, 2021 shall be extended to September 30, 2021 . Any such deadline that, absent the aforementioned order, would occur otter September 29, 2021 shall be effective based on the timefrome ih existence before the aforementioned order; e. Paragraph 9(b) (as extended and modified by N-71-20, Paragraph 41 ]; f. Paragraph 9(c) (as extended and modified by N-71-20, Paragraph 39). Any deadline setting the time for a worker to file complaints and initiate proceedings with the labor Commissioner pursuant to Labor Code sections 98, 98.7, 1700.44, and 2673.1, that, absent the aforementioned order, would have occurred or would occur between May 7, 2020 and September 29, 2021 shall be extended to September 30, 2021. Any such deadline that, absent the aforementioned order, would occur after September 29, 2021 shall be effective based on the timeframe in existence before the aforementioned order; g. Paragraph 9(d) (as extended and modified by N-71-20, Paragraph 39). Any deadline setting the time for Cal/OSHA to issue citations pursuant to Labor Code section 6317, that, absent the aforementioned order, would have occurred or would occur between May 7, 2020 and September 29, 2021 shall be extended to September 30, 2021 . Any such deadline that, absent the aforementioned order, would occur after September 29, 2021 shall be effective based on the timeframe in existence before the aforementioned order; h. Paragraph 9(e) (as extended and modified by N-71-20, Paragraph 41 ); i. Paragraph 1 O; j. Paragraph 12. Any peace officer reemployed on or before June 30, 2021 pursuant to the aforementioned order shall be entitled to the extended reemployment period set forth in the order; k. Paragraph 13; I. Paragraph 14; and m. Paragraph 15 (as extended by N-71-20, Paragraph 36). 25) Executive Order N-65-20: a. Paragraph 5 (as extended by N-71-20, Paragraph 35; N-80-20, Paragraph 4; and N-01-21). Identification cards issued under Health and Safety Code section 11362.71 that would otherwise have expired absent the aforementioned extension between March 4, 2020 and June 30, 2021 shall expire on December 31, 2021; and b. Paragraph 7. 26) Executive Order N-66-20: a. Paragraph 3; b. Paragraph 4; and c. Paragraph 5. l+nm HJ Pa!!e 17 r.f c;1 27) Executive Order N-68-20: a. Paragraph l. Notwithstanding the expiration of the aforementioned order, temporary licenses granted on or before June 30, 2021 shall be valid through September 30, 2021; and b. Paragraph 2. Renewal fee payments otherwise due lo the to the California Department of Public Health absent the extension in the aforementioned order on or before June 30, 2021, shall be entitled to the extensions of time set forth in the aforementioned order. 28) Executive Order N-71-20: a. Paragraph 1; b. Paragraph 4; c. Paragraph 16. Where the statutory deadline for opening or completing investigations is set to occur on or before June 30, 2021. the deadline shall remain subject to the extension in the aforementioned order; and d. Paragraph 17. Where the statutory deadline for serving a notice of adverse action is due on or before June 30, 2021, the deadline shall remain subject to the extension in the aforementioned order. 29) Executive Order N-75-20: a. Paragraph 7. Children placed in foster care on or before June 30, 2021 shall receive such examinations on or before July 31, 2021; b. Paragraph 8; c. Paragraph 9; d. Paragraph 10. Any facility operating under a waiver pursuant to this provision may operate pursuant to such a waiver through the expiration as set forth by the California Department of Public Health, or September 30, 2021 , whichever occurs first; and e. Paragraph 13. 30) Executive Order N-7 6-20, Paragraph 3. 31) Executive Order N-77-20: a. Paragraph 1; b. Paragraph 2; and c. Paragraph 3. 32) Executive Order N-78-20 (as extended and modified by N-03-21 ): a. Paragraph 1; and b. Paragraph 2. 33) Executive Order N-83-20: a. Paragraph 3. To the extent the Director of the Deportment of Alcoholic Beverage Control suspends deadlines for renewing licenses upon payment of annual fees on or before June 30, 2021, the extension shall remain valid until the effective expiration; b. Paragraph 5 !which repealed and replaced N-71-20. Paragraph 19, which extended N-52-20, Paragraph l, and N-69-20, Paragraph 3); c. Paragraph 6 (which repealed and replaced N-71-20, Paragraph 20. which extended N-52-20, Paragraph 2, and N-69-20, Paragraph 4); and d. Paragraph 7 (which repealed and replaced N-71 -20, Paragraph 21, which extended N-52-20. Paragraph 3, and N-69-20, Paragraph 5). 34) Executive Order N-84-20: a. Paragraph 1; b. Paragraph 2; c. Paragraph 3; and d. Paragraph 5. The following provisions shall remain in place and shall have full force and effect through July 31, 2021, upon which time they will expire subject to individual conditions described in the enumerated paragraphs below. 35) Executive Order N-39-20, Paragraph 8 (as extended by N-69-20, Paragraph 2 and N-71-20, Paragraph 8). 36) Executive Order N-53-20, Paragraph 11 (as extended or modified by N-68- 20, Paragraph 15, and N-71-20, Paragraph 26). 37) Executive Order N-71-20, Paragraph 25. 38) Executive Order N-75-20: a. Paragraph 5; and b. Paragraph 6 The following provisions shall remain in place and shall have full force and effect through September 30, 2021, upon which time they will expire subject to individual conditions described in the enumerated paragraphs below. 39) State of Emergency Proclamation doted Morch 4, 2020: o. Paragraph 3; and b. Paragraph 14. Any facility operating under o waiver pursuant to this provision may operate pursuant to such a waiver through the expiration as set forth by the Deportment of Social Services, or September 30, 2021, whichever occurs first. 40) Executive Order N-25-20: a. Paragraph 2; b. Paragraph 3; and c. Paragraph 4. 41) Executive Order N-28-20: a. Paragraph 4; and b. Paragraph 5. Item li1 P;ia<> 19 nf 51 42) Executive Order N-29-20, Paragraph 3, is withdrawn and replaced by the following text: Notwithstanding any other provision of state or local law (including, but not limited to, the Bagley-Keene Act or the Brown Act), and subject to the notice and accessibility requirements set forth below, a local legislative body or state body is authorized to hold public meetings via teleconferencing and to make public meetings accessible telephonically or otherwise electronically to all members of the public seeking to observe and to address the local legislative body or state body. All requirements in both the Bagley-Keene Act and the Brown Act expressly or impliedly requiring the physical presence of members. the clerk or other personnel of the body, or of the public as a condition of participation in or quorum for a public meeting are hereby waived. In particular, any otherwise-applicable requirements that (i) state and local bodies notice each teleconference location from which a member will be participating in a public meeting; (ii) each teleconference location be accessible to the public; (iii) members of the public may address the body at each teleconference conference location; (iv) state and local bodies post agendas at all teleconference locations; (v} at least one member of the state body be physically present at the location specified in the notice of the meeting; and (vi) during teleconference meetings, a least a quorum of the members of the local body participate from locations within the boundaries of the territory over which the local body exercises jurisdiction are hereby suspended. A local legislative body or state body that holds a meeting via teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically, consistent with the notice and accessibility requirements set forth below, shall have satisfied any requirement that the body allow members of the public to attend the meeting and offer public comment. Such a body need not make available any physical location from which members of the public may observe the meeting and offer public comment. Accessibility Requirements: If a local legislative body or state body holds a meeting via teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically, the body shall also: l•a~ ff"> Page 'JO of 51 (i) Implement a procedure for receiving and swiftly resolving requests for reasonable modification or accommodation from individuals with disabilities, consistent with the Americans with Disabilities Act and resolving any doubt whatsoever in favor of accessibility; and (ii) Advertise that procedure each time notice is given of the means by which members of the public may observe the meeting and offer public comment, pursuant to subparagraph (ii) of the Notice Requirements below. Notice Requirements: Except to the extent this Order expressly provides otherwise, each local legislative body and state body shall: (i) Give advance notice of the lime of, and post the agenda for, each publlc meeting according to the timeframes otherwise prescribed by the Bagley-Keene Act or the Brown Act, and using the means otherwise prescribed by the Bagley-Keene Act or the Brown Act, as applicable; and (ii) In each instance in which notice of the time of the meeting is otherwise given or the agenda for the meeting is otherwise posted, also give notice of the means by which members of the public may observe the meeting and offer public comment, As to any instance in which there is a change in such means of public observation and comment, or any instance prior to the issuance of this Order in which the time of the meeting has been noticed or the agenda for the meeting has been posted without also including notice of such means, a body may satisfy this requirement by advertising such means using "the most rapid means of communication available at the time" within the meaning of Government Code, seclion 54954, subdivision [e); this shall include, but need not be limited to, posting such means on the body's Internet website. All of the foregoing provisions concerning the conduct of public meetings shall apply through September 30, 2021. 43) Executive Order N-32-20: a. Paragraph l ; b. Paragraph 2; and c. Paragraph 3. 44) Executive Order N-35-20: a. Paragraph 2; and b. Paragraph 12. 45) Executive Order N-39-20: o. Paragraph 2; b. Paragraph 3; and c. Paragraph 6. 46) Executive Order N-40-20: a. Paragraph 12 (as extended or modified by N-66-20, paragraph 16, N-71-20, paragraph 14, and N-75-20, Paragraph 12). To the extent the Director exercised their authority pursuant to this provision on or before September 30, 2021, the extension shall remain valid until the effective expiration of the applicable waiver; and b. Paragraph 18. 47) Executive Order N-42-20. 48) Executive Order N-43-20. 49) Executive Order N-49-20, Paragraph 2. 50) Executive Order N-54-20: a. Paragraph 8 (as extended by N-80-20, Paragraph 6); and b. Paragraph 9. To the extent any timeframe within which a California Native American tribe must request consultation and the lead agency must begin the consultation process relating to an Environmental Impact Report, Negative Declaration, or Mitigated Negative Declaration under the California Environmental Quality Act extends beyond September 30, 2021, the tribe and lead agency will receive the benefit of the extension so long as the triggering event occurred on or before September 30, 2021. 51) Executive Order N-55-20: o. Paragraph 2; b. Paragraph 3; c. Paragraph 7. All on-site licensing visits which would have been due on or before September 30, 202 l shall occur before December 31, 2021; d. Paragraph 11; and e. Paragraph 12. 52) Executive Order N-56-20, Paragraph 10 is withdrawn and superseded by the following text: Paragraph 42 of this Order, including the conditions specified therein, shall apply to meetings held pursuant to Article 3 of Chapter 2 of Part 21 of Division 3 of Title 2 of the Education Code and Education Code section 47604.l(b). 53) Executive Order N-58-20 (as extended by N-71-20, Paragraph 29). 54) Executive Order N-59-20: a. Paragraph l. The sworn statement or verbal attestation of pregnancy must be submitted on or before September 30, 2021 and medical verification of pregnancy must be submitted .;..,,ithin 30 r-.-,o ...,,,,.,1 lt om #J working days following submittal of the sworn statement or verbal attestation for benefits to continue; b. Paragraph 2 (as extended and modified by N-69-20, Paragraph 14, and N-71-20. Paragraph 31); c. Paragraph 3 (as extended and modified by N-69-20, Paragraph 15, and N-71-20, Paragraph 32); and d . Paragraph 4 (as extended and modified by N-69-20, Paragraph 16, and N-71-20, Paragraph 33). 55) Executive Order N-63-20: a. Paragraph 8(b). To the extent filing deadlines for claims and liens fall on or before September 30, 202 l, absent the extension in the aforementioned order, they shall remain subject to the extended timeframe: and b. Paragraph 11. 56) Executive Order N-66-20, Paragraph 6. 57) Executive Order N-71-20: a. Paragraph 15; b. Paragraph 22; and c. Paragraph 23. 58) Executive Order N-75-20: o. Paragraph 1; b. Paragraph 2; and c . Paragraph 4. 59) Executive Order N-80-20: a. Paragraph 3; and b. Paragraph 7. 60) Executive Order N-83-20 a. Paragraph 2 is withdrawn and replaced by the following text: The deadline to pay annual fees. including any installment payments, currently due or that will become due during the proclaimed emergency, as specified in Business and Professions Code sections 19942. 19951, 19954, 19955, 19984, and any accompanying regulations is September 30. 2021: the deadlines for submission of any application or deposit fee, as specified in Business and Professions Code sections 19951 [a). 19867, 19868, 19876, 19877. 19942, 19984. and any accompanying regulations is no laier than September 30, 2021, or per existing requirements, whichever date is later. b. Paragraph 4. 61) Executive Order N-03-21, Paragraph 3, is withdrawn and replaced by the following text: As applied to commercial evictions only, the timeframe for the protections set forth in Paragraph 2 of Executive Order N-28-20 (and extended by Paragraph 21 of Executive Order N-66-20, Paragraph 3 of Executive Order N-71-20, and Paragraph 2 of Executive Order N-80-20) is extended through September 30, 2021. IT IS FURTHER ORDERED that, as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order. This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at low or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person. IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 11th day of June 2021 . GAVIN NEWSOM Governor of California ATTEST: SHIRLEY N. WEBER, PH.D. Secretary of State RESOLUTION NO. 1625 A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING RESIDENTIAL POTABLE WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES. Exhibit 5 WHEREAS, on Sept. 28, 20181 the state of California enacted Senate Bill No. 998 (SB 998), Water Shutoff Protection Act (Health and Safety Code, § 116900 et seq.); and WHEREAS, SB 998 requires Carlsbad Municipal Water District (CMWD) to develop and implement a policy by Feb. 1, 20201 containing specific provisions protecting qualifying low- income households from having potable water service disconnected for nonpayment due to financial hardship; ahd WHEREAS, CMWD developed a policy which describes the Residential Potable Water Service Shutoff Protection Policy for Nonpayment of Charges to ensure implementation by Feb. 1, 2020, attached hereto as Attachment A. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The attached Residential Potable Water Service Shutoff Protection Policy for Nonpayment of Charges is approved. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 10th day of December 2019, by the following vote to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher. NAYS: None. ABSENT: Nohe. Sept. 28, 2021 M ~co-+<-~-=----'-----'-"c.....+-....:..../--t..:.w...,,o.. -"-~I &v,tritz I Uf.11!} c,/ BARBARA ENGLESON, ECRETARY C 1~ (SEAL) CJt1✓ Attachment A (Carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES INTRODUCTION 2 Carlsbad Municipal Water District (CMWD) developed this policy to help residential water service 3 customers prevent shutoff of water service for nonpayment of charges due to hardship. 4 This policy is not applicable when water service is shutoff due to unauthorized action by a customer. 5 This policy is available on the City of Carlsbad's website (https://www.carlsbadca.gov/water). The 6 number of annual shutoffs for nonpayment is noted on the website. A paper copy of the policy is 7 available upon request at the City's Utility Billing Offices at 1635 Faraday Avenue, Carlsbad., CA 8 92008. 9 For more information, contact the City's Utility Billing Office by phone at 760-602-2420 or by email at 10 water@carlsbadca.gov. 11 DEFINITIONS 12 Water Bills -Monthly statements sent to customers indicating the amount of water used during the 13 billing cycle, rate charged for the water, amount the customer must pay for the water and date on 14 which the payment is due. 1S Delinquent Accounts -Delinquent accounts are those that remain unpaid by the due date. An 16 account paid with a check that is returned by the bank upon which the check was drawn is 17 considered nonpayment of the bill and may result in a delinquent account. 18 Late Fee -A fee charged for payments not received by the due date. The late fee is 10% of the 19 unpaid bill amount. 20 Water Disconnection or Shutoff -CMWD disconnects water service by turning off and locking the 21 water meter. If a customer's water service is disconnected or shutoff, the customer must pay a fee to 22 have CMWD reconnect the water service. Water service reconnected without CMWD authorization 23 may result in fines or additional charges or fees. Any damages caused by an unauthorized service 24 reconnection are the customer's responsibility. Reference: Water Shutoff Protection Act (Health and Safety Code sections l 16900-116926) Effective: February I, 2020 Page I of 5 Last Updated: February 1, 2020 Printed on; December 3, 8019 Sept. 28, 2021 Item #2 Page 26 of 51 l_carlsbad Municipal Water District RESIDENTmL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 25 NOTiflCATIONS 26 CMWD will not shutoff a residential customer's water service for nonpayment until the customer's 27 payment has been delinquent for at least 60 days. 28 First Written Shutoff Notice -At least seven (7) business days before shutting off a residential 29 customer's water service, CMWD will contact the customer by telephone or by mail. 30 If CMWD contacts the customer by telephone, CMWD will offer to provide the customer with this 31 policy. CMWD will also offer to discuss the customer's option for averting a shutoff for nonpayment, 32 including the procedures for amortizing the unpaid balance and for obtaining a bill review and 33 appeal. 34 If CMWD contacts the customer by mail, CMWD will send the customer written notice of the shutoff to 35 the billing address designated on the customer's account. If the billing address and the service 36 address are different, a second notice will be mailed to the service address and addressed to 37 "Occupant." 38 The written notice will include the customer's name and address, amount of the delinquent charges, 39 and the day by which the customer must pay or arrange to pay the delinquent charges to avoid a 40 shutoff. The notice will also include a description of the process to apply for an extension of time to 41 pay the delinquent charges, a description of the procedure to petition for a bill review and appeal, 42 and a description of the procedure by which the customer may request amortization of the delinquent 43 charges. 44 If the written notice is returned as undeliverable, CMWD will make a good faith effort to visit the 45 service address and leave, either with an adult occupying the residence or in a conspicuous place, a 46 written notice of the imminent shutoff and a copy of this policy. 47 Notice to Tenants/Occupants in an Individually Metered Residence -If the landlord of a 48 residence with individually metered service is the customer with the delinquent account, CMWD will 49 make a good faith effort to send a written notice to the tenants/ occupants of the residence at least ten 50 ( 10) days before water service is shut off. The written notice will advise the tenants/occupants that 51 they have the right to become customers of CMWD without being required to pay the amount due on 52 the delinquent account, as long as they are willing and able to assume financial responsibility for 53 subsequent charges for water service at the residence. The tenants/occupants must provide 54 verification of tenancy in the form of a lease or rental agreement, rent receipts, a government 55 document indicating the occupant is renting the property, or other acceptable proof. Reference: Water Shutoff Protection Act (llealth and Safety Code sections 116900-116926) Effective: February I, 2020 ~5p¥~1~~~o~ary 1, 2020 Page2of5 lterh~ on: 1Jriig~~36¥~1 l..carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 56 Notice to Tenants/Occupants in a Multi-Unit Complex Served through a Master Meter -If the 57 landlord of a multi-unit complex served through a master meter is the customer with the delinquent 58 account, CMWD will make a good faith effort to send a written notice to the tenants/occupants of each 59 unit at least ten (IO) days before water service is shut off. The written notice will advise the 60 tenants/occupants they have the right to become customers of the CMWD without being required to 61 pay the amount due on the delinquent account. If one or more of the occupants at the address served 62 by the master meter are willing and able to assume responsibility for the subsequent charges for 63 water service to the satisfaction of CMWD, or if there is a physical means legally available to CMWD 64 of selectively terminating service to those tenants/occupants who have not met CMWD's 65 requirements for service, CMWD will make service available to the occupants who have met the 66 requirements. 67 Final Written Shutoff Notice -The final written Water Shutoff notice will be delivered to the 68 premises no less than five (S) business days in advance of shutoff. CMWD will visit the residence and 69 leave the water shutoff notice and this policy. 70 OPTIONS AVAIL.ABLE TO CUSTOMER 71 Bill Review and Appeal -If a customer disputes the customer's water bill, the customer may make a 72 written request for the bill to be reviewed by the City of Carlsbad's finance director. The written 73 request must be submitted within ten (10) business days after the bill is mailed to the customer or 7 4 within five (S) business days after CMWD informs the customer by telephone or mail that the 75 customer's water service is subject to shutoff for nonpayment. A written request for a bill review must 76 identify what aspects of the water bill the customer believes are incorrect, what information and 77 documents the customer believes supports the customer's position, and what resolution the customer 78 seeks. Within ten ( 10) business days after receipt of the bill review request, the finance director, or a 79 designee, will review the water bill and provide a written response to the customer. \ 80 ff the customer disagrees with the finance director's response, the customer may, within five (5) 81 business days of the response, appeal the matter to the deputy city manager, administrative services, 82 or a designee, Within ten (10) business days after receiving the appeal, the deputy city manager, 83 administrative services, will consider the information and documents previously submitted to the 84 finance director, as well as any additional information or documents submitted with the appeal, and 85 will issue a written decision independently determining whether the bill is correct. The decision of 86 the deputy city manager, administrative services, is the final administrative decision. Reference: Water Shutoff Protection Act (lie al th and Safety Code sections l l 6900-116926) Effective:Februaryl,2020 Page 3 of5 ~p¥~~~6wary I. 2020 lte~ on: ~9~'183o¥~i l_carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 87 CMWD will not shutoff the customer's water service for nonpayment while the customer's request for 88 a bill review or appeal is pending. If the bill review or appeal results in a determination the 89 customer's water bill was incorrect, CMWD will correct the bill and the customer will have twenty- 90 one (21) calendar days to pay the corrected bill amount. If the bill review or appeal results in a 91 determination the customer's water bill wa.s correct, the customer must pay the bill in full within five 92 (S) business days unless the customer qualifies for an alternate payment arrangement. 93 Alternate Payment Arrangement -A qualifying customer unable to pay for residential water service 94 within the normal payment period may request an alternate payment arrangement to avoid late fees 9S and service shutoff. 96 To qualify for an alternate payment arrangement, the customer must meet BOTH of the following 97 requirements: 98 o Demonstrate a medical need for continued water service by providing certification from a 99 Primary Care Provider that water service shutoff will be life-threatening or pose a serious l 00 threat to the health and safety of any person residing at the service address. 101 o Demonstrate financial hardship by showing the customer is financially unable to pay for 102 service within CMWD's normal billing cycle. A customer will be deemed to have a 103 qualifying financial hardship if any member of the customer's household receives 104 CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State 10S Supplementary Payment, or California Special Supplemental Nutrition Program for 106 Women, Infants, and Children. A customer will also be deemed to have a qualifying 107 financial hardship if the customer declares that the customer's household income is less l 08 than 200% of the federal poverty level I 09 If the customer qualifies for an alternate payment arrangement: 110 A. The customer must sign an Alternate Payment Arrangement Agreement with CMWD to amortize 111 the unpaid balance over an agreed upon period, not to exceed twelve (12) months from the 112 original due date on the bill. 113 B. The agreed upon amount (amortized payments) will be added to the regular monthly bill to pay 114 off the previously unpaid balance. 115 C. The customer's account must remain current for all subsequent billing periods. 116 D. The customer cannot request further amortization of any subsequent unpaid charges while paying 117 delinquent charges from a previous bill. Reference: Water Shutoff Protection Act (Health and Safety Code sections 116900-116926) Effective:Februartl,2020 S'~iP.Jl2~;'.1=cf2j_ruary I, 2020 Page4 of5 ltem~d on: ~f~ t,f~lf (Carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 118 If the customer does not comply with the alternate payment arrangement or becomes delinquent in 119 paying cunent water service charges for sixty (60) days or more, CMWD will shut off the customer's 120 water service. At least five (S) business days beforehand, CMWD will post a final shutoff notice in a 121 prominent and conspicuous location at the service address. 122 If CMWD shuts off a residential customer's water service, CMWD will provide the customer with 123 information on how to restore service. 124 RESTORATION OF SERVICE 125 Deadline for Shutoff -All delinquent water service charges and associated fees must be received by 126 City of Carlsbad Finance Department by 3 p.m. on the day specified in the written disconnection 127 notice. 128 Reconnection Process -CMWD will reconnect service as soon as feasible but, at a minimum, will 129 restore service before the end of the next regular working day following payment of any past due 130 amount, delinquent fees and reconnection fee, on the account that was shutoff. 131 Reconnection Fee -For those who qualify for an alternative payment arrangement, the reconnection 132 fee is $SO for same day and next day service during normal business hours, and $150 for service 133 during non-operational hours. This rate is subject to annual adjustment based on the Consumer Price 134 Index. The cost to reconnect water service as applicable under this policy is published yearly in the 135 Master Fee Schedule (http://www.carlsbadca.gov/services/depts/finance/fees). Reference: Water Shutoff Protection Act (Health and Safety Code sections ll 6900-116926) Effective: February I, 2020 Page 5 ofS S'~~P.P1~;'2~~1:i_ruary I, 2020 lte~~d on: ~~fg~ bt<s1 Exhibit 6 MUNICIPA L WATER D ISTRICT Staff Report Meeting Date: May 41 2021 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: Financial Assistance Update for Customer Water Bills Districts: All Recommended Action Adopt a resolution directing staff to: • Continue to provide information to ratepayers on 2-1-1 San Diego for referral to local nonprofit organizations to give donations and distribute funds for water bill assistance • Continue to monitor county, state and federal COVID-19 programs related to water bill assistance and return to the Carlsbad Municipal Water District Board of Directors after these programs have been evaluated to provide a recommendation on other options, including costs, implementation timelines and funding recommendations Executive Summary Staff presented a report to the CMWD board on April 14, 2020, on potential funding programs for water service customers who cannot pay their water bills due to financial hardship. At that time, staff explained the City of San Diego's H2O SD program, the only such water bill assistance program found in San Diego County. Staff informed the board that although CMWD does not have an official customer bill assistance program, a phone number is provided on water bills that directs customers to call 2-1-1 San Diego to be referred to the County of San Diego or one of several local nonprofit assistance organizations for financial help. Staff reported they would continue to analyze additional funding options and return to the board in one year to give this update. On May 5, 2020, the water district board put temporary financial relief programs into place in response to the COVID-19 pandemic. These programs outlined in Exhibit 2 will remain in place as long as the state of emergency declared by the governor on March 4, 2020, remains in effect. This report provides a range of funding options to cover the cost of potable water bills that remain unpaid as a result of the emergency measures. As of April 2021, these outstanding bills Sept. 28, 2021 Item #2 Page 31 of 51 total approximately $410,000, which represents approximately 1 % of the annual budgeted potable water revenue for the current fiscal year, 2020-21. Discussion Background The conversation about water affordability is not unique to the COVID-19 pandemic. Water providers such as CMWD have long recognized the need for low-income or impacted ratepayer assistance programs. But water and wastewater ratepayer revenue cannot be used to fund such programs because of the restrictions set by Proposit ion 218. The state proposition, which passed in 1996, requires voter approval before local taxes can be increased. The governor's April 2, 2020, executive order (Executive Order N-42-20 prohibited water shutoffs during the COVID-19 emergency and required restoration of water service that had been shut off any time after the governor's March 4, 2020, emergency declaration. At its May S, 2020, meeting, the CMWD board confirmed the executive manager's previous COVID-19 temporary customer financial relief measures and extended them through Juhe 30, 2020, or the end of the state of local emergency (Resolution No. 1639). These provisions are currently in effect. Local programs providing pandemic-related assistance have used a variety of fundihg sources, including revenue from federal, state and county programs, COVID-19 relief programs, general funds, donations, land sales and other funding sources that do not include customer revenue. Administration of these programs is handled mostly through a partnership with Sah Diego County or nonprofit organizations, which have administrative infrastructure in place to manage such programs. Recent legislative actions, such as Senate Bill 222-Water Rate Assistance Program, have been proposed to explore funding for a statewide program. CMWD past-due accounts As of April 2021, CMWD had 425 water accounts that were over 60 days past due. The amount of this debt totals approximately $410,000, which averages $964 per past due customer. Prior to the COVID-19 pandemic, normal practice would have been to work on a payment plan with the customers and if they were not willing to do so, shut off water for those customers. Since this practice stopped due to the governor's Executive Order No. N-42-20, past due accounts have accumulated. Before this executive order, CMWD had suspended customers' late fee charges, understanding the immediate impact of COVID-19. Some water agencies in San Diego County have resumed charging late fees to encourage people to pay their bills and prevent customers from getting further in debt. CMWD has not resumed any charges but has been offering to set up longer term payment plans on late accounts Customers from the cities of Chula Vista and San Diego were excluded from the county program because of their city-specific federal funds received. Potential funding sources Over the past year, in addition to the City of San Diego's H20 SD program, the Helix Water District, City of Chula Vista and County of San Diego started rental and utility bill assistance programs. The Helix Water District created its own assistance program called Helix Helps. The Helix Helps program is for district customers only. It was funded through $500,000 from surplus land sales. Sept. 28, 2021 Item #2 Page 32 of 51 Each qualifying customer could receive up to $300 in water bill assistance. Customers apply to a third-party nonprofit organization that administers the program. In mid-March 2021, the City of Chula Vista launched the Chula Vista Emergency Rental Assistance Program, which will distribute $16.8 million in state and federal funds to qualifying renters in Chula Vista affected by the COVID-19 pandemic. A portion of that funding is available for past due and upcoming utility bills. The San Diego County Housing and Community Development Services Department has a COVID-19 emergency rental assistance program, which also assists with utility bills. CMWD customers are eligible to apply for the program. Applications will be accepted until funds run out. Information about how to access the application for assistance was sent to CMWD customers that were over 60 days late on their bills. To date, 580 Carlsbad residents have applied under the county's program. State and federal funding totaling $101.5 million was made available for pandemic-related assistance to eligible residents in the unincorporated areas of San Diego County, as well as all cities except San Diego and Chula Vista, which received relief funds directly. The program's primary funding focus was directed at household incomes at or below 50% of the area median income. Each qualified household could have received up to $3,000. There have been several financial assistance grants and loans for small water systems serving fewer than 15 connections and disadvantaged communities. The San Diego County water and wastewater professional associations, as well as state Senate and Assembly members continue to support and propose specific COVID-19 relief funding and legislation for water, wastewater customers and water agencies that have incurred losses during the pandemic. On March 11, 2021, President Joe Biden signed House Resolution 1319, the American Rescue Plan Act of 2021. This act includes local government assistance due to the impact of COVID-19, including revenue replacement and necessary investments in water and sewers. The bill contains other funding assistance that may take priority depending on the needs in the city. The bill included an additional provision for $500 million for low-income household drinking water and wastewater emergency assistance. The grants are awarded to the states by providing funds to owners or operators of public water systems or treatment works to reduce arrearages of and rates charged to such households for such services. Options Options for ratepayer assistance programs One program option and one funding option will combine to form each of these options for the board's consideration. 1. Continue to provide information to ratepayers on 2-1-1 San Diego for referral to local nonprofit organizations to give donations and distribute funds for water bill assistance. Continue monitoring county, state and federal COVID-19 programs related to water bill assistance and return to the board after these programs have been evaluated to provide a recommendation on other options including costs1 implementation timelines and funding recommendations Sept. 28, 2021 Item #2 Page 33 of 51 Pros • Currently, the Finance Department staff refers ratepayers in need of assistance to 2-1-lSan Diego, which is a countywide nonprofit organization that connects individuals to government financial assistance programs, San Diego Gas & Electric rate relief and local nonprofit programs. A phone number to call is included in every CMWD customer bill • This program does not require additional staff and meets Proposition 218 legal requirements • It would not exclude CMWD from any other federal, state or county water assistance programs available at a future date • The Finance Department staff also allows people to pay other customers' bills if they call in and know the customer's account information. This option has been available since before the COVID-19 pandemic. Staff cannot disclose a person's name, account number or amount past-due Con • Data is not available to measure the effectiveness of the curreht program specific to water bill assistance 2. Distribute additional aid via a local third-party nonprofit organization Pro • Third party nonprofit organizations already have methods to determ1ne eligibility for aid. Cons • Th ere is a burden on existing CMWD and city staff • Funding would depend on federal, state and county aid or donations, general fund, applicable COVID-19 relief or non-ratepayer money • Depending on the restrictions, CMWD could be excluded from future federal and state money that may become available if a City/CMWD program already exists, similar to what occurred with the cities of San Diego and Chula Vista 3 .. Distribute additional aid via a city program Pro • The board would have control over the distribution of fund Con • Likely cost-prohibitive Staff recommends Option 1 for the board's approval, continue to provide information to ratepayers on 2-1-1 San Diego for referral to local nonprofit organizations to give donations and distribute funds for water bill assistance, continue monitoring county, state and federal COVID- 19 programs related to water bill assistance and return to the board after these programs have been evaluated to provide a recommendation on other options including costs, implementation timelines and funding recommendations. Sept. 28, 2021 Item #2 Page 34 of 51 Options for funding a ratepayer assistance program Staff provides the following funding options for ratepayer assistance for the board's consideration: l. Make appropriation from city funds -general fund, COVID-19 relieffunds (if available), city reserves or other non-ratepayer funds Pros • Avoids Proposition 218 issues • Funding could be available quickly Cons • These funding options would compete with other City funding priorities. 2. Use revenue from the lease or sale of CMWD real estate Pros • CMWD received approximately $216,000 in cell site leases on water reservoirs in FY 2020-21 and expects this revenue source to be ongoing • Additionally, CMWD may have surplus property planned for current and future sale per city council-approved Real Estate Strategic Plan (Resolution No. 2017-200). Revenue from property sales could potentially be directed toward ratepayer assistance. Cons • The loss of CMWD funds toward normal operat1ons would result in future ongoing rate increases to make up the loss of this income. • Legal advice would be needed on the use of these funds for ratepayer bill assistance, particularly in the case of CMWD property, which was paid for by the ratepayers. 3. Use City of Carlsbad resident and/or employee donations Pro • Staff could develop a pay-it-forward program for board consideration in which members of the public and/or city employees could donate funds to pay directly to past due water bills, similar to the City of San Diego's H20 SD program Cons • Unknown level of participation • Depending on the type of program, administrative costs could exceed donations received 4. Seek funding from future federal, state and county relief programs Pro • While eligible relief funding for the City of Carlsbad may be forthcoming, competing needs for such funding must be utilized in the best possible way to not overlap with opportunities for other funding assistance. CMWD continues to monitor federal, state and county funding opportunities that are specific for ratepayer assistance Con • If ratepayers have already received assistance from other programs, they may be disqualified for additional assistance. If CMWD received Sept. 28, 2021 Item #2 Page ,35 of 51 assistance money, the share received could be smaller than those received by other cities in the region due to a focus of support to low- income areas 5. Take no action. Resume late fees when the local emergency is lifted and resume shut-off practices when the governor's executive order is lifted Pro • Customers are more likely to work with staff if their balance is increasing at a higher rate due to late fees Con • After the state of emergency is lifted and the governor's Executive Order is lifted, customers will still need assistance. If the board approves staff recommended program option 1, staff recommends funding option 4 for the board's approval, seeking funding from future federal, state and county relief programs. Program option 1 would have staff continue to provide information to ratepayers on 2-1-1 San Diego for referral to local nonprofit organizations to give donations and distribute funds for water bill assistance, continue monitoring county, state and federal COVID-19 programs related to water bill assistance and return to the board after these programs have been evaluated to provide a recommendation on other options, including costs, implementation timelines and funding recommendations. After COV ID-19 assistance program opportunities are exhausted, staff could research the distribution of additional aid from city funds, donations and administration of the funds through a partnership with a third-party nonprofit organization. If the board selects funding options 1, 2 or 3, CMWD staff will return at a future board meeting with a proposal that will include costs and an implementation timeline. Fiscal Analysis The fiscal impact will depend on which programs are pursued, but there is no fiscal impact to receiving this update. Next Steps If the resolution program option 1 is adopted, which includes funding option 4, CMWD staff will return to a future board meeting to prov'ide updates and additional information. If other funding options are chosen, staff will return at a future board meeting with a proposal, including costs and an implementation timeline for the option selected. Environmental Evaluation {CEQA) This action does not constitute a "project" within the meaning of the California Environmental Quality Act under Public Resources Code section 21065 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 environmental review. Public Notification Public notice of this item was posted in keeping with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Sept. 28, 2021 Item #2 Page 36 of 51 Exhibits 1. CMWD resolution 2. May 5, 2020 CMWD staff report 3. Email sent to past due registered on-line accounts 4. County of San Diego 2021 Emergency Rental & Utilities Assistance Program Flyer Sept. 28, 2021 Item #2 Page 37 of 51 RESOLUTION NO. 1652 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) DIRECTING STAFF TO CONTINUE TO PROVIDE INFORMATION TO RATEPAYERS ON 2-1-1 SAN DIEGO FOR REFERRAL TO LOCAL SAN DIEGO NONPROFIT ORGANIZATIONS AND SAN DIEGO COUNTY'S RENTAL AND UTILITY ASSISTANCE PROGRAM FOR FUNDS THAT PROVIDE WATER BILL ASSISTANCE; AND CONTINUE TO MONITOR COUNTY, STATE AND FEDERAL COVID-19 PROGRAMS RELATED TO WATER BILL ASSISTANCE, AND IF APPLICABLE TO CMWD CUSTOMERS, RETURN TO THE BOARD AFTER THESE PROGRAMS HAVE BEEN EVALUATED TO PROVIDE A RECOMMENDATION ON OTHER OPTIONS INCLUDING COSTS, IMPLEMENTATION TIMELINES AND FUNDING RECOMMENDATIONS WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency as a result of the COVID-19 virus pandemic; and WHEREAS, on April 14, 2020, CMWD staff presented a report to the Board on potential funding programs for water service customers that cannot pay their water bills due to financial hardship and that staff would continue to analyze additional funding options and return to the Board in one year to give an update; and WHEREAS, on May 5, 2020, the Board adopted Resolution No. 1639, which confirmed the Executive Manager's previous COVID-19 temporary customer financial relief measures and extended them through June 30, 2020, or the end of the state of local emergency; and WHEREAS, as of April 2021, outstanding bills for 425 accounts total approximately $410,000 for potable water, which represents approximately 1% of annual budgeted potable water revenue for the current fiscal year (FY) 2020-21; and WHEREAS, staff presented options for water bill assistance programs and potential funding sources for the Board's consideration. NOW, THEREFORE, BE IT RESOLVED by the CMWD Board of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That staff is directed to continue to provide information to ratepayers on 2-1-1 San Diego for referral to local nonprofit organizations and San Diego County's rental and utility assistance programs for funds that provide water bill assistance; and continue to monitor county, state and federal COVID-19 programs related to water bill assistance, and if applicable to CMWD customers, Sept. 28, 2021 Item #2 Page 38 of 51 return to the Board after these programs have been evaluated to provide a recommendation on other options including costs, implementation timelines and funding recommendations. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 4th day of May, 202-1, by the following vote, to wit: AVES: NAYS: ABSENT; Sept. 28, 2021 Hall, Blackburn, Acosta, Bhat-Patel, Schumacher. None. None. MATT HALL, PRESIDENT ~r~w BARBARA ENGLESON, SECRETARY (SEAL) Item #2 Page 39 of 51 MUN I Cl PAL WAl£R DIST RI CT Staff Report Meeting Date: To: From: Staff Contact: Subject: May 51 2020 President and Board Members Scott Chadwick, Executive Manager 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 Temporary Relief from Certain Potable Water Bill Fees in Response to the COVID-19 Pandemic State of Emergency Recommended Action Adopt a resolution of the Board of Directors of the Carlsbad Municipal Water District confirming the executive manager's temporary relief measures in response to the COVID-19 pandemic state of emergency and authorizing the executive manager to extend these measures through June 30, 2020, or the end of the state of local emergency, if necessary. Executive Summary On Dec. 10, 2019, the Carlsbad Municipal Water District Board adopted Resolution No. 1625 approving a Residential Potable Water Service Shutoff Protection Policy for Non-Payment of Charges. This was in direct response to Senate Bill 998, the Water Shutoff Protection Act, which was signed into law Sept. 28, 2018. In addition to the measures outlined in the Senate Bill 998 policy, and due to the transition to a new utility billing system as well as the COVID-19 pandemic state of emergency, the CMWD's executive manager implemented the following temporary relief measures: • Potable water service will not be discontinued due to non-payment through May 31, 2020 • Late fees will not be assessed for March, April and May 2020 • Potable water business customers who closed their accounts due to the COVID-19 pandemic state of emergency may discontinue water service, which w ill stop the accrual of any monthly fees associated with having an active potable water service account and then, when ready to reopen, may have water service reestablished without paying a reconnection fee. After the implementation of these temporary relief measures, on April 2, 2020, California's governor issued Executive Order No. N-42-20, which prohibits residential potable water shutoffs during the COVID-19 pandemic state of emergency and requires restoration of water service for residential water shutoffs occurring after the state of emergency began on March 4, 2020. The executive order also prohibits commercial water shutoffs if the business is in one of the critical infrastructure sectors. Sept. 28, 2021 Item #2 Page 40 of 51 EXHIBIT 2 Staff recommends the CMWD Board confirm the executive manager's temporary relief measures. Staff also recommends the CMWD Board authorize the executive manager to extend the temporary relief measures to June 30, 2020, or the end of the state of local emergency, if necessary. Discussion The Utilities Billing Division in the City of Carlsbad's Finance Department manages the Carlsbad Municipal Water District's water billings and collections. In March 2020, the city implemented a new utility billing system. Because of billing delays related to the system's implementation, water shutoffs and late fee charges were suspended in March and April. In addition, after the declaration of the COVlD-19 pandemic state of emergency, the executive manager extended the suspension of potable water shutoffs and late fee charges until May 311 2020. The executive manager also authorized a program allowing potable water business customers that closed their accounts due to the COVID-19 pandemic state of emergency to contact the Utilities Billing Division to discontinue water service. This action stops the accrual of any monthly fees associated with having an active potable water service account. When the business establishment is ready to reopen, the program allows the business customers to reestablish their accounts and have potable water service resume without paying reconnection fees. CMWD Ordinance No. 45 contains CMWD's water connection and rate rules, including CMWD's late fee rule. Article 11, Section 3 of Ordinance No. 45 allows the executive manager, from time to time, to issue rules and regulations to carry out the purposes of the ordinance. As the ordinance does not address states of emergency or authorize executive manager action in response to states of emergency, staff recommends the CMWD Board confirm the executive manager's decision to implement these temporary relief measures taken in response to the COVID-19 pandemic state of emergency. Staff also recommends the Board authorize the executive manager to extend the temporary relief measures to June 30, 2020, or the end of the state of local emergency, if necessary. Fiscal Analysis The foregone revenue from waiving potable water bill late fees for March, April and May 2020 is estimated at $52,000. To date, there are five busihesses that have asked to have their potable water service discontinued, The fiscal impact of waiving the discontinuation and re- connection fees for these five businesses is approximately $800. Staff will continue to track business requests that are received. Next Steps CMWD shall implement temporary relief measures as confirmed and authorized by the CMWD Board. 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 Sept. 28, 2021 Item #2 Page 41 of 51 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. Exhibits 1. CMWD Board resolution Sept. 28, 2021 Item #2 Page 42 of 51 RESOLUTION NO. 1639 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT (CMWD BOARD) OF THE CITY OF CARLSBAD, CALIFORNIA, CONFIRMING THE EXECUTIVE MANAGER'S TEMPORARY RELIEF MEASURES IN RESPONSE TO THE COVID-19 PANDEMIC STATE OF EMERGENCY AND AUTHORIZING THE EXECUTIVE MANAGER TO EXTEND THESE MEASURES THROUGH JUNE 30, 2020, OR THE END OF THE STATE OF EMERGENCY, IF NECESSARY. WHEREAS, there is currently a COVID-19 pandemic state of emergency; and WHEREAS, on Dec. 10, 2019, the CMWD Board adopted Resolution No. 1625, approving a Residential Potable Water Service Shutoff Protection Policy for Non-Payment of Charges in compliance with California Senate Bill 998, the Water Shutoff Protection Act, enacted on Sept. 28, 2018; and WHEREAS, in addition to the measures outlined in the Senate Bill 998 policy, and due to the transition to a new utility billing system as well as the current COVID-19 pandemic state of emergency, the Executive Manager implemented the following temporary relief measures: ( 1) Potable water service will not be discontinued due to non-payment through May 31, 2020 (2) Late fees w ill not be assessed on all utility bills for March, April and May 2020 (3) Potable water business customers that have closed their accounts due to the COVID-19 pandemic state of emergency may contact the Finance Department Utilities Billing Division to discontinue water service, which will stop the accrual of any monthly fees associated with having an active potable water service account, and then, when ready to reopen, may have water service reestablished without paying a reconnection fee; and WHEREAS, after implementation of these temporary relief measures, California's Governor issued Executive Order No. N-42-20, which prohibits residential potable water shutoffs during the COVID-19 pandemic state of emergency, requires restoration of water service for residential water shutoffs occurring after the state of emergency began on March 4, 2020, and prohibits commercial water shutoffs if the business is in a critical infrastructure sector; and WHEREAS, staff recommends the CMWD Board confirm the temporary relief measures implemented by the Executive Manager; and WHEREAS, staff recommends t he CMWD Board authorize the Executive Manager to extend the temporary relief measures through June 30, 2020, or the end of the state of emergency, if necessary. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water Di5!~floJa,hm1v of Carlsb ad, California, as follows: Item #2 Page 43 of 51 1. That the above recitations are true and correct. 2. That the CMWD Board confirms the temporary relief measures implemented by the Executive Manager. 3. That the CMWD Board authorizes the Executive Manager to extend the temporary relief measures through June 30, 2020, or the end of the state of emergency, if necessary. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad Municipal Water District of the City of Carlsbad on the 5th day of May, 2020, by the following vote, to wit: AYES: NAYS: ABSENT: Sept. 28, 2021 Hall, Blackburn, Bhat-Patel, Schumacher. None. None. MATT HALL, President Ntlli ~ f!,.t0 BARBARA ENGLESON, Seer ~ry (SEAL) Item #2 Page44 of 51 EXHIBIT 3 Dear Carlsbad Resident, Your water utility bill has a past due balance, and we wanted to make you aware of an emergency rental and utility bill. assistance program that the County of San Diego is currently offering to City of Carlsbad residents. Funding is available to help eligible households in qualifying areas who have been financially impacted by the COVID-19 pandemic. The program provides payment assistance for renters who need help with rent and utilities. For more information regarding this program, see the links listed below. Please note, program applications are due by March 16, 2021. • View the program flyer • View the FAQ sheet • Apply here See additional resources regarding utility assistance in the County of San Diego. The City of Carlsbad is here to help you during these unprecedented times. If you have questions or concerns, you can call the Finance Department at 760- 602-2420 for customer assistance. Sept. 28, 2021 {city of Carlsbad Visit our Website Item #2 Page 45 of 51 EXHIBIT 4 County of San Diego 2021 Emergency Rental Assistance Program Have you been financially impacted by the COVID-19 pandemic? LIVE WELL SAN DIEGO Do you need help with rent and utilities? The County of San Diego's Emergency Rental Assistance Program (ERAP) helps eligible households in qualifying areas who have been financially impacted by the COVID-19 pandemic. The program provides payment assistance for renters behind on rent and utilities. Areas Served: All areas of the San Diego region except for the cities of San Diego* and Chula Vista*. • Carlsbad • Imperial Beach • San Marcos • Coronado • Del Mar • El Cajon • Encinitas • Escondido Eligibility Criteria: • La Mesa • Lemon Grove • National City • Oceanside • Poway • Santee • Solana Beach • Vista • Unincorporated Communities • Household income must be at or below 80% Area Median Income (See chart below) • Household must have experienced a financial hardship directly or indirectly related to COVID-19. • Household is at risk of experiencing homelessness or housing instability. • Households currently receiving rental subsidies such as Section 8, rapid rehousing assistance, or rental assistance from non-profit agencies may apply to cover t heir portion of rent. ERAP assistance cannot duplicate the assistance the household is currently receiving. Apply Online Starting March 2, 2021. Apply at www.sdhcd.orq. Only one application per household will be processed. Applicants will be able to check their status on the application portal at any point in the process. If you do not have internet access and need assistance in completing an application, call (858) 694-4801. A County representative will be able to assist you. For more information on ERAP, visit www.sdhcd.orq San Diego County Income Limits (80% AMI) Number of People in Income equal to or less Household than the following: 1 $67,900 2 $77,600 3 $87,300 4 $97,000 5 $104,800 6 $112,550 7 $120,300 8 $128,050 *Residents of the cities of San Diego and Chula Vista can visit www.ERAPsandiego.org for information about rental assistance in their area. Sept. 28, 2021 Item #2 Page 46 of 51 l_carlsbad Municipal Water District INTRODUCTION EXHIBIT 7 RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 2 Carlsbad Municipal Water District (CMWD) developed this policy to help residential water service 3 customers prevent shutoff of water service for nonpayment of charges due to hardship. 4 This policy is not applicable when water service is shutoff due to unauthorized action by customer. 5 This policy is available on the City of Carlsbad's website (https:/ /www.carlsbadca.gov/water). The 6 number of annual shutoffs for nonpayment is noted on the website. A paper copy of the policy is 7 available upon request at the City's Utility Billing Offices at 1635 Faraday Avenue, Carlsbad, CA 8 92008. 9 For more information, contact CMWD's billing department by phone at (760) 602-2420 or by email at 10 water@carlsbadca.gov. 11 DEFINITIONS 12 Water Bills -Monthly statements sent to custom~rs indicating the amount of water used during the 13 billing cycle, rate charged for the water, amount the customer must pay for the water and date on 14 which the payment is due. 15 Delinquent .Accounts -Delinquent a.ccounts are those that remain unpaid by the due date. An 16 account paid with a check that is returned by the bank upon which the check was drawn, is 17 considered as nonpayment of bill, and therefore may result in a delinquent account. 18 Late Fee -A fee charged for payments not received by the due date. The late fee is 10% of the 19 unpaid bill amount. 20 Water Disconnection or Shutoff -CMWD disconnects water service by turning off and locking the 21 water meter. If a customer's water service is disconnected or shutoff, the customer must pay a fee to 22 have CMWD reconnect the water service. Water service reconnected without CMWD authorization 23 may result in fines or additional cha.rges or fees. Any damages caused by an unauthorized service 24 reconnection are the customer's responsibility. 25 NOTIFICATIONS 26 CMWD will not shutoff a residential customer's water service for nonpayment until the customer's 27 payment has been delinquent for at least 60 days. Reference: Water Shutoff Protection Ji.ct (Health and Safety Code sections ll 6900-116926) Effective: February 1, 2020 Page 1 ofS Printed on: November 21, 2019 Last Updated: February l, 2020 Sept. 28, 2021 Item #2 Page 47 of 51 l_carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 28 First Written Shutoff Notice -At least seven (7) business days before shutting off a residential 29 customer's water service, CMWD will contact the customer by telephone or by mail. 30 If CMWD contacts the customer by telephone, CMWD will offer to provide the customer with this 31 policy. CMWD will also offer to discuss the customer's option for averting a shutoff for nonpayment, 32 including the procedures for amortizing the unpaid balance and for obtaining a bill review and 33 appeal. 34 If CMWD contacts the customer by mail, CMWD will send the customer written notice of the shutoff to 3S the billing address designated on the customer's account. If the billing address and the service 36 address are different, a second notice will be mailed to the service address and addressed to 37 "Occupant." 38 The written notice will include the customer's name and address, amount of the delinquent charges, 39 and the day by which the customer must pay or arrange to pay the delinquent charges to avoid a 40 shutoff. The notice will also include a description of the process to apply for an extension of time to 41 pay the delinquent charges, a description of the procedure to petition for a bill review and appeal, 42 and a description of the procedure by which the customer may request amortization of the delinquent 43 charges. 44 H the written notice is returned as undeliverable, CMWD will make a good faith effort to visit the 4S service address and leave, either with an adult occupying the residence or in a conspicuous place, a 46 written notice of the imminent shutoff and a copy of this policy. 47 Notice to Tenants/Occupants in an Individually Metered Residence -If the landlord of a 48 residence with individually metered service is the customer with the delinquent account, CMWD will 49 make a good faith effort to send a written notice to the tenants/occupants of the residence at least ten SO ( 10) days before water service is shut off. The written notice will advise the tenants/occupants that S l they have the right to become customers of CMWD without being required to pay the amount due on S2 the delinquent account, as long as they are willing and able to assume financial responsibility for S3 subsequent charges for water service at the residence. The tenants/occupants must provide S4 verification of tenancy in the form of a lease or rental agreement, rent receipts, a government SS document indicating the occupant is renting the property, or other acceptable proof. 56 Notice to Tenants/Occupants in a Multi-Unit Complex Served through a Master Meter -If the S7 landlord of a multi-unit complex served through a master meter is the customer with the delinquent 58 account, CMWD will make a good faith effort to send a written notice to the tenants/ occupants of each S9 unit at least ten (10) days before water service is shut off. The written notice will advise the Reference: Water Shutoff Protection Act (Health and Safety Code sections 116900-116926) Effective.; February 1, 2020 1s~Wf.~~,diffi'fary I. 2020 Page 2 ofS ltJ'&~1 on: No~e~s1 tff s8J. (Carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 60 tenants/occupants they have the right to become customers of the CMWD without being required to 61 pay the amount due on the delinquent account. If one or more of the occupants at the address served 62 by the master meter are willing and able to assume responsibility for the subsequent charges for 63 water service to the satisfaction of CMWD, or if there is a physical means legally available to CMWD 64 of selectively terminating service to those tenants/occupants who have not met CMWD's 65 requirements for service, CMWD will make service ava.ilable to the occupants who have met the 66 requirements. 67 Final Written Shutoff Notice -The final written Water Shutoff notice will be delivered to the 68 premises no less than five (S) business days in advance of shutoff, CMWD will visit the residence and 69 leave the water shutoff notice and this policy. 70 OPTIONS AVAILABLE TO CUSTOMER 71 Bill Review and Appeal -If a customer disputes the customer's water bill, the customer may make a 72 written request for the bill to be reviewed by the City of Carlsbad's finance director. The written 7 3 request must be submitted within ten (10) business days after the bill is mailed to the customer or 7 4 within five (S) business days after CMWD informs the customer by telephone or mail that the 75 customer's water service is subject to shutoff for nonpayment. A written request for a bill review must 76 identify what aspects of the water bill the customer believes are incorrect, what information and 77 documents the customer believes supports the customer's position, and what resolution the customer 78 seeks. Within ten (10) business days after receipt of the bill review request, the finance director, or a 79 designee, will review the water bill and provide a written response to the customer. 80 If the customer disagrees with the finance director's response, the customer may, within five (6) 81 business days of the response, appeal the matter to the deputy city manager, administrative services, 82 or a designee. Within ten (10) business days after receiving the appeal, the deputy city manager, 83 administrative services, will consider the information and documents previously submitted to the 84 finance director, as well as any additional information or documents submitted with the appeal, and 85 will issue a written decision independently determining whether the bill is correct. The decision of 86 the deputy city manager, administrative services, is the final administrative decision. 87 CMWD will not shutoff the customer's water service for nonpayment while the customer's request for 88 a bill review or appeal is pending. If the bill review or appeal results in a determination the 89 customer's water bill was incorrect, CMWD will correct the bill and the customer will have twenty- 90 one (21) calendar days to pay the corrected bill amount. H the bill review or appeal results in a Reference: Water Shutoff Protection Act (Health and Safety Code sections 116900-116926) Effective: February I, 2020 ~Jbt.'11f.~fff rary 1. 2020 Page3 of 5 lt/rt\nJM on; N~~~e4§1 bl°~ (Carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 91 determination the customer's water bill was correct, the customer must pay the bill in full within five 92 (5) business days unless the customer qualifies for an alternate payment arrangement. 93 Alternate Payment Arrangement -A qualifying customer unable to pay for residential water service 94 within the normal payment period may request an alternate payment arrangement to avoid late fees 95 and service shutoff. 96 To qualify for an alternate payment arrangement, the customer must meet BOTH of the following: 97 98 99 o Demonstrate a medical need for continued water service by providing certification from a Primary Care Provider that water service shutoff will be life-threatening or pose a serious threat to the health and safety of any person residing at the service address. 100 o Demonstrate financial hardship by showing the customer is financially unable to pay for 10 l service within CMWD's normal billing cycle. A customer will be deemed to have a l 02 qualifying financial hardship if any member of the customer's household receives 103 CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State 104 Supplementary Payment, or California SpecialSupplemental Nutrition Program for l OS Women, Infants, and Children. A customer will also be deemed to have a qualifying l 06 financial hardship if the customer declares that the customer's household income is less 107 than 200% of the federal poverty level. 108 If the customer qualifies for an alternate payment arrangement: 109 A. The customer must sign an Alternate Payment Arrangement Agreement with CMWD to amortize 110 the unpaid balance over an agreed upon period, not to exceed twelve ( 12) months from the 111 original due date on the bill. 112 B. The agreed upon amount (amortized payments) will be added to the regular monthly bill to pay 113 off the previously unpaid balance. 114 C. The customer must remain current on all subsequent billing periods. 115 D. The customer cannot request further amortization of any subsequent unpaid charges while paying 116 delinquent charges from a previous bill. 117 If the customer does not comply with the alternate payment arrangement or becomes delinquent in l 18 paying current water service charges for sixty (60) days or more, CMWD will shut off the customer's 119 water service. At least five (S) business days beforehand, CMWD will post a final shutoff notice in a 120 prominent and conspicuous location at the service address. 121 If CMWD shuts off a residential customer's water service, CMWD will provide the customer with 122 information on how to restore service. Reference: Water Shutoff Protection Act (Health and Safety Code sections 116900-116926) Effective:Februaryl,2020 Last Updated: February 1, 2020 Sept. 28, 2021 Page 4of5 Printed on: November 21, io19 Item #2 Page 50 ot 51 l_carlsbad Municipal Water District RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES 123 RESTORATION OF SERVICE 124 Deadline for Shuto.ff. All delinquent water service charges and associated fees must be received by 125 City of Carlsbad Finance Department by 3 p.m. on the day specified in the written disconnection 126 notice. 127 Reconnection Process. CMWD will reconnect service as soon as feasible but, at a minimum, will 128 restore service before the end of the next regular working day following payment of any past due I 29 amount, delinquent fees and reconnection fees, on the account that was shutoff. 130 Reconnection Fee -For those that qualify for alternative payment arrangement, the reconnection fee 131 is $50 for same day and next day service during normal business hours, and $150 for service during 132 non•operational hours. This rate is subject to annual adjustment based on the Consumer Price Index. 133 The cost to reconnect water service as applicable under this policy is published yearly in the Master 134 Fee Schedule (http:/ /www.carlsbadca.gov/services/depts/finance/fees). Reference: Water Shutoff Protection Act (Health and Safety Code sections l l 6900-116926) Effective:Februaryl,2020 !J_ast Up<!aled_;, Febniary 1, 2020 ~ept. 28, LQ21 Pages ofS ltemnlft on: Nf~g~~f 1ol0s1 RECOMMENDATION Adopt a resolution to: • Approve an implementation plan to re-establish late fees and shutoffs for customers that are: -over 60 days late on their utility bill payments -have not set up a payment plan per the city's Residential Water Service Shutoff Protection Policy -or received available financial aid as of Dec. 31, 2021 BACKGROUND March 4, 2020 May 5, 2020 June 11, 2021 Sept. 23, 2021 State of Emergency Declared Prohibited Water Shutoffs CMWD Resolution Confirmed prohibition and suspended late fee charges Governor set expiration date for the prohibition of water shutoffs for Sept. 30, 2021 SB 155 signed. Extended prohibition of shutoffs from Sept. 30, 2021 to Dec. 31, 2021 BACKGROUND • The CMWD Board resolution also suspended late-fee charges -not required by the Governor's executive order on shutoffs • There are currently over 400 customers that are over 60 days past due, for a total past due amount of approximately $450,000 DISCUSSION • Staff recommend a past due water bill implementation plan, which will provide customers ample time to apply for financial assistance and/or arrange to pay past-due amounts • Late-fee charges and shutoffs will resume in January 2022 for customers in arrears who do not arrange payment plans with the Utility Billing Division or apply for and receive aid OPTIONS 1. Approve an implementation plan to re-establish late fees and shutoffs for customers that are over 60 days late on their utility bill payments 2. Do not approve an implementation plan to reestablish late fees and shutoffs for customers that are over 60 days late on their utility bill payments NEXT STEPS • If the CMWD Board approves and the Governor's executive order is not extended, during October, CMWD will distribute door hangers that give customers information on obtaining aid and setting up a payment plan • Staff will do everything that we can to direct customers to assistance programs • On Jan. 1, 2022, staff will resume the charging of late fees and shutoffs. This will affect those customers that are 60 days past due on their utility bill payments as of Dec. 31, 2021, and who do not pay their arrearage or, if eligible, establish a formal payment plan by Dec. 31,2021 RECOMMENDATION Adopt a resolution to: Approve an implementation plan to re-establish late fees and shutoffs for customers that are over 60 days late on their utility bill payments, have not set up a payment plan per the city's Residential Water Service Shutoff Protection Policy, or received available financial aid as of Dec. 31, 2021 Thank you