HomeMy WebLinkAbout2022-03-24; Utility Customer Debt Water Shutoffs and COVID-19 Arrearages Relief Update (Districts - All); Gomez, PazCcarlsbad
Municipal Water District
. To the memb~rs of the:
CITY COUNCIL
Date 3/a.4 / 'la CA __i_ CC ✓
CM L ACM L DCM (3) ✓
Council/CMWD Board Memorandum
March 24, 2022
To: Honorable Mayor Hall and Members of the City Council
Carlsbad Municipal Water District Board of Directors
From: Paz Gomez, Deputy City Manager, Public Works
Vicki Quiram, Utilities Director/General Manager
Via: Geoff Patnoe, Assistant City Manager/ Assistant Executive Manage
{city of
Carlsbad
Memo ID #2022035
Re: Utility Customer Debt, Water Shutoffs and COVID-19 Arrearages Re 1ef Update
(Districts -All)
This memorandum provides an update on outstanding utility customer debt, water shutoffs
and COVID-19 arrearages relief.
Background
On Sept. 28, 2021, the Carlsbad Municipal Water District, or CMWD, Board approved Resolution
No. 1663,which was a plan for the reinstatement of late fees and shutoffs for customers over
60 days late on their utility bill payments who have not set up a payment plan or received other
relief. Before that plan was to take effect, CMWD determined that it would be possible to apply
for financial aid from the California State Water Resources Control Board, or State Water Board,
for direct credits to eligible customer bills in arrears.
On Nov. 18, 2021, the CMWD Board received a memorandum communicating the intent to
apply for funding from the State Water Board Water and Wastewater Arrearage Payment
Program, or Program. This Program funnels federal funds directly to individual customer
accounts for those customers who incurred arrearages during a specific COVID-19 pandemic
time period. Customer debt had accumulated during the Governor's moratorium on shutoffs,
which has since ended.
Discussion
The CMWD applied for and received $223,290.81 from the Program, including administrative
costs, and has distributed the funds to customer accounts. Per the Program guidelines,
customers had 30 days from notification to either pay off any remaining arrearage or set up a
payment plan. Credits from the Program were applied to customer accounts on Feb. 3, 2022,
and customers had until March 5, 2022, to set up a payment plan or pay off their remaining
debt.
Carlsbad Municipal Water District
Public Works Branch
Utilities Department
5950 El Camino Real I Carlsbad, CA 92008 I 442-339-2722 t
Council/CMWD Board Memo -Utility Customer Debt and COVID-19 Arrearages (Districts -All)
March 24, 2022
Page 2
Based on the CMWD Board plan approved on Sept. 28, 2021, and in compliance with the
Program, those customers who had outstanding debt by March 7, 2022, were notified via door
hanger and a phone call that they had 10 days before their water would be shutoff due to
nonpayment. The first day of water shutoffs was March 17, 2022. The shutoff process due to
nonpayment is a return to prior CMWD practice that existed before the COVID-19 pandemic
and is needed to avoid providing water to some customers at the expense of others. Door
hangers and shutoffs will happen gradually as the city and CMWD staff move through the
different meter reading cycles, as was the practice before the COVID-19 pandemic.
Because the Program credits could only be applied to water bills between March 2020 and June
2021, the federal funds did not cover all arrearages. After the applicable Program credits were
applied, there was still $234,000 in remaining debt owed to the CMWD and the Utilities
Department. Currently, 320 accounts remain in arrears because of water debt that was not
eligible for reimbursement under the Program. The $234,000 of remaining debt also includes
wastewater debt, none of which is eligible for reimbursement under the Program.
For customers who do not pay these debts in arrears and do not set up a payment plan,
shutoffs are being scheduled in accordance with the CMWD policy. The Finance Department's
Utility Billing Division works with each customer who is facing water shutoff to make payment
or establish a payment plan to avoid shutoff. As of March 17, 2022, there were three customers
who had not paid their water and wastewater bill or worked out a payment plan in the first
cycle for shutoffs.
Since the original Program application began for water arrearages, the State Water Board has
created a similar program for wastewater arrearages and the California Department of
Community Services and Development created a one-time supplemental 'program for
arrearages for low-income customers called the Low-Income Household Water Assistance
Program. Staff will monitor the remaining customer debt as the shutoffs continue to determine
whether the CMWD should apply for these programs.
Next Steps
Staff will continue implementing CMWD Board Resolution No. 1663, which the CMWD Board
approved on Sept. 28, 2021, regarding late fees and shutoffs for customers over 60 days late on
their utility bill payments.
Attachments: A. Staff report dated Sept. 28, 2021 (Due to the size of Attachment A, a hardcopy
is on file in the Office of the City Council, as reference)
B. CMWD Board memorandum dated Nov. 18, 2021
Council/CMWD Board Memo -Utility Customer Debt and COVID-19 Arrearages (Districts -All)
March 24, 2022
Page 3
cc: Scott Chadwick, City Manager/Executive Manager
Celia Brewer, City Attorney/General Counsel
Laura Rocha, Deputy City Manager, Administrative Services
Robby Contreras, Assistant City Attorney/ Assistant General Counsel
Zach Korach, Finance Director
Kristina Ray, Community & Engagement Director
Cheryl Gerhardt, Finance Manager
Eric Sanders, Utilities Manager
CA Review __RMC__
Meeting Date: Sept. 28, 2021
To: Mayor and City Council/President and Board Members
From: Scott Chadwick, City Manager/Executive Manager
Staff Contact: Vicki Quiram, Utilities Director/General Manager
vicki.quiram@carlsbadca.gov, 760-438-2722
Ryan Green, Finance Director
ryan.green@carlsbadca.gov, 760-602-2414
Subject: Utility Billing Water Service Shutoff and Late Fee Update
Districts: 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 June 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
ATTACHMENT AJOINT CI TY COU NCIL AND,
CARLS BAD MUN ICI PA IL WAJ ER DI STR ICT
Staff Report
Shutoff Protection Policy, approved by CMWD Resolution 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. 9, 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 the 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 pandemic. 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 financial 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. If 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 contained 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 Residential 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 revenue 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 action 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:
1.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
Exhibit 1
RESOLUTION NO. .
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
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 Utility 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 __ day of ________, 2021, by the
following vote, to wit:
AYES:
NAYS:
ABSENT:
_____________________________________
MATT HALL, Mayor
______________________________________
FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
Sept. 28, 2021 Item #2 Page 7 of 51
EXHIBIT 2
Sept. 28, 2021 Item #2 Page 8 of 51
EXECUTIVE DEPARTMENT
STATE OF CALIFORNIA
EXECUTIVE ORDER N-42-20
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 disconnectio ns, during the COVID-19
emergency; and
WHEREAS more than 100 public and private water systems have volunta rily
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
Sept. 28, 2021 Item #2 Page 9 of 51
service, as defined in Health and Safety Code section 1 1 6902,
subdivision (c), for non-payment.
3) Water systems shall restore any reside ntial service to occupied
residences that has been discontinued for nonpayment since March 4,
2020.
4) Water systems sha ll not discontinue service to any busin ess in the
critical infrastruc ture 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 b usiness under 13 C.F.R. § 121.201
of the Small Bu siness Administration's regulations.
5) The State Water Resources Control Board sha ll 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 water 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 Water 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 w idespread publicity and
notice be g iven of this Order.
This Order is not intended to, and does not, create any rights or benefits,
substantive or procedural, e nforceable at law or in equity, against the State of
California, its agencies, departments, entities, officers, employees, or any other
person.
NESS WHEREOF I have hereunto set
nd and cau d the Great Seal of the
of California be affixed this 2nd
f April 2020.
rnor of California
ATTEST:
ALEX PADILLA
Secretary of State
May 5, 2020 Item #5 Page 4 of 5
Exhibit 3
Sept. 28, 2021 Item #2 Page 10 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 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
District of the City of Carlsbad, California, as follows:
May 5, 2020 Item #5 Page 5 of 5Sept. 28, 2021 Item #2 Page 11 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:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, President
~t.CbL: ~ti':
BARBARA ENGLESON, Secr~ry
(SEAL)
EXHIBIT 4
Sept. 28, 2021 Item #2 Page 12 of 51
EXECUTIVE DEPARTMENT
STATE OF CALIFORNIA
EXECUTIVE ORDER N-08-21
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 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 back 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.
~64
Sept. 28, 2021 Item #2 Page 13 of 51
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 1; 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 l;
b. Paragraph 2;
c. Paragraph 3;
d. Paragraph 5;
e. Paragraph 6; and
f. Paragraph 7.
4) Executive Order N-27-20:
a. 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 l; and
b. Paragraph 2.
7) Executive Order N-35-20:
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;
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;
Sept. 28, 2021 Item #2 Page 14 of 51
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.
l 0) Executive Order N-40-20:
a. Paragraph l. For rulemakings published in the California Regulatory
Notice Register pursuant to Government Code section l l 346.4(a)(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 l 0). Notwithstanding the expiration of this
provision, state employees subject to these training requirements
shall receive the benefit of the 120-day 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 date;
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
timeframes 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
Sept. 28, 2021 Item #2 Page 15 of 51
d. Paragraph 12. For vacancies occurring prior to June 30, 2021, 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 l; 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 l;
b. Paragraph 3. For determinations made on or before June 30, 2021,
the discharge date sha ll 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 an individual has commenced a training
program prior to June 30, 2021, that was interrupted by COVID-19,
that individual shall be entitled to the extended 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, Paragraph 10,
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 1. Statutory deadlines related to cost reports, change in
scope of service requests, and reconciliation requests occurring on
Sept. 28, 2021 Item #2 Page 16 of 51
or before June 30, 2021 shall remain subject to the extended
deadline in the aforementioned order;
b. Paragraph 4;
c. Paragraph 5;
d. Paragraph 6;
e. Paragraph 8;
f. Paragraph 9;
g. Paragraph 1 O;
h. Paragraph 13;
i. Paragraph 14. 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 16. 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 l;
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 B(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
Sept. 28, 2021 Item #2 Page 17 of 51
issue any citation under the Labor Code, including a civil wage and
penalty assessment pursuant to Labor Code section 1741, 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;
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 sha ll
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 sha ll 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.
Sept. 28, 2021 Item #2 Page 18 of 51
27} Executive Order N-68-20:
a. Paragraph 1. 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 to '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 openin,g 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 Department of
Alcoholic Beverage Control suspends deadlines for renewi~g
licenses upon payment of annual fees on or before June 30, 2021,
the extension sha ll remain valid until the effective expiration;
Sept. 28, 2021 Item #2 Page 19 of 51
b. Paragraph 5 (which repealed and replaced N-71-20, Paragraph 19,
which extended N-52-20, Paragraph 1, 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 dated March 4, 2020:
a. Paragraph 3; and
b. Paragraph 14. 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 Department 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.
Sept. 28, 2021 Item #2 Page 20 of 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 lqw (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:
Sept. 28, 2021 Item #2 Page 21 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 time of, and post the agenda
for, each public 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, section 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 1;
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:
a. Paragraph 2;
b. Paragraph 3; and
c. Paragraph 6.
Sept. 28, 2021 Item #2 Page 22 of 51
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:
a. Paragraph 2;
b. Paragraph 3;
c. Paragraph 7. All on-site licensing visits which would have been due
on or before September 30, 2021 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, sha ll
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
47 604.1 (b).
53) Executive Order N-58-20 (as extended by N-71-20, Paragraph 29).
54) Executive Order N-59-20:
a. Paragraph 1. 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 within 30
Sept. 28, 2021 Item #2 Page 23 of 51
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, 2021, absent the extension in the
aforementioned order, they sha ll 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:
a. Paragraph l;
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 later than
September 30, 2021, or per existing requirements, whichever date is
later.
b. Paragraph 4.
Sept. 28, 2021 Item #2 Page 24 of 51
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 law 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
Dec. 10, 2019 Item #9 Page 79 of 90
Exhibit 5
Sept. 28, 2021 Item #2 Page 25 of 51
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.
WHEREAS, on Sept. 28, 2018, 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, 2020, containing specific provisions protecting qualifying low-
income households from having potable water service disconnected for nonpayment due to
financial hardship; and
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: None.
M
V BARBARA ENGLESON,
(SEAL)
I-It . ~, G-t,,'11t z I u f.11 !J
ECRETARY C 1~
cuu'
Dec. 10, 2019 Item #9 Page 80 of 90Sept. 28, 2021 Item #2 Page 26 of 51
Attachment A
{earls bad
Municipal Water District
RESIDENTIAL WATER SERVICE SHUTOFF
PROTECTION POLICY FOR NONPAYMENT OF CHARGES
1 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.
15 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 116900-116926)
Effective: February 1, 2020 Page 1 of 5
Last Updated: February l, 2020 Printed on: December 3, 2019
Dec. 10, 2019 Item #9 Page 81 of 90Sept. 28, 2021 Item #2 Page 27 of 51
(Carlsbad
Municipal Water District
25 NOTinCATIONS
RESIDENTIAL WATER SERVICE SHUTOFF
PROTECTION POLICY FOR NONPAYMENT OF CHARGES
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 (Health and Safety Code sections 116900-116926)
Effective: February I, 2020 Page 2 of S
Last Updated: February 1, 2020 Printed on: December 3, 2019
Dec. 10, 2019 Item #9 Page 82 of 90Sept. 28, 2021 Item #2 Page 28 of 51
(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 (10) 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 (5) 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
73 request must be submitted within ten (10) business days after the bill is mailed to the customer or
74 within five (5) 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 ( I 0) 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 (5)
81 business days of the response, appeal the matter to the deputy city manager, administrative services,
82 or a designee. Within ten (IO) 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 (Health and Safety Code sections ll 6900-ll6926)
Effective: February I, 2020
Last Updated: February I , 2020
Page 3 of 5
Printed on: Dece~ber 3, 2019
Dec. 10, 2019 Item #9 Page 83 of 90Sept. 28, 2021 Item #2 Page 29 of 51
(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 was correct, the customer must pay the bill in full within five
92 (6) 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
96 and service shutoff.
96 To qualify for an alternate payment arrangement, the customer must meet BOTH of the following
97 requirements:
98
99
100
101
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.
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
I 06 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
I 08 than 200% of the federal poverty level.
109 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 up on 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 l 16900-116926)
Effective: February 1, 2020 Page 4 of 5
Last Updated: February l, 2020 Printed on: December 3, 2019
Dec. 10, 2019 Item #9 Page 84 of 90Sept. 28, 2021 Item #2 Page 30 of 51
(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 current water service charges for sixty (60) days or more, CMWD will shut off the customer's
120 water service. At least five (5) 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 $50 for same day and next day service during normal busir_i.ess 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 116900-116926)
Effective: February I, 2020 Page 5 of 5
Last Updated: February I, 2020 Printed on: December 3, 2019
Meeting Date: May 4, 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
May 4, 2021 Item #8 Page 1 of 16
Exhibit 6
Sept. 28, 2021 Item #2 Page 31 of 51
(i) . .
MUNICIPAL WATER DISTRICT
Staff Report
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 Proposition 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 5, 2020, meeting, the CMWD board 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 (Resolution No. 1639). These provisions are
currently in effect.
Local programs providing pandemic-related assistance have used a variety of funding 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 San 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 H2O 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.
May 4, 2021 Item #8 Page 2 of 16Sept. 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 costs, implementation timelines and
funding recommendations
May 4, 2021 Item #8 Page 3 of 16Sept. 28, 2021 Item #2 Page 33 of 51
Pros
• Currently, the Finance Department staff refers ratepayers in need of
assistance to 2-1-1 San 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 current 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 determine
eligibility for aid.
Cons
• There 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.
May 4, 2021 Item #8 Page 4 of 16Sept. 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:
1. Make appropriation from city funds – general fund, COVID-19 relief funds (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 operations 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
May 4, 2021 Item #8 Page 5 of 16Sept. 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 COVID-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 provide 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.
May 4, 2021 Item #8 Page 6 of 16Sept. 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
May 4, 2021 Item #8 Page 7 of 16Sept. 28, 2021 Item #2 Page 37 of 51
May 4, 2021 Item #8 Page 8 of 16Sept. 28, 2021 Item #2 Page 38 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,
May 4, 2021 Item #8 Page 9 of 16Sept. 28, 2021 Item #2 Page 39 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, 2021, by the following
vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, PRESIDENT
~r?Z> ft,c
BARBARA ENGLESON, SECRETARY
(SEAL)
Meeting Date: May 5, 2020
To: President and Board Members
From: Scott Chadwick, Executive Manager
Staff Contact: Mario Remillard, Meter Services and Customer Service Supervisor
mario.remillard@carlsbadca.gov, 760-603-7343
Vicki Quiram, General Manager
vicki.quiram@carlsbadca.gov, 760-438-2722
Subject: 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 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.
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.
EXHIBIT 2
May 4, 2021 Item #8 Page 10 of 16Sept. 28, 2021 Item #2 Page 40 of 51
(i) . .
MUNICIPAL WATER DISTRICT
Staff Report
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 COVID-19 pandemic state of emergency, the executive
manager extended the suspension of potable water shutoffs and late fee charges until May 31,
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 II, 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 businesses 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
May 4, 2021 Item #8 Page 11 of 16Sept. 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
May 4, 2021 Item #8 Page 12 of 16Sept. 28, 2021 Item #2 Page 42 of 51
May 4, 2021 Item #8 Page 13 of 16Sept. 28, 2021 Item #2 Page 43 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 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
District of the City of Carlsbad, California, as follows:
May 4, 2021 Item #8 Page 14 of 16Sept. 28, 2021 Item #2 Page 44 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:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, President
~t.CbL: ~ti':
BARBARA ENGLESON, Secr~ry
(SEAL)
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.
Visit our Website
EXHIBIT 3
May 4, 2021 Item #8 Page 15 of 16Sept. 28, 2021 Item #2 Page 45 of 51
{b tyof
Carlsbad
County of San Diego
2021 Emergency Rental Assistance Program
Have you been financially impacted by
the COVID-19 pandemic?
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
•Coronado
•Del Mar
•El Cajon
•Encinitas
•Escondido
•Imperial Beach
•La Mesa
•Lemon Grove
•National City
•Oceanside
•Poway
•San Marcos
•Santee
•Solana Beach
•Vista
•Unincorporated
Communities
Eligibility Criteria:
•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 their portion of rent. ERAP assistance cannot
duplicate the assistance the household is currently receiving.
Apply Online Starting
March 2, 2021.
Apply at www.sdhcd.org. 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.org
San Diego County Income Limits (80% AMI)
Number of People in
Household
Income equal to or less
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.
May 4, 2021 Item #8 Page 16 of 16Sept. 28, 2021 Item #2 Page 46 of 51
EXHIBIT 4
LIVE WELL
SAN DIEGO
EXHIBIT 7
Sept. 28, 2021 Item #2 Page 47 of 51
{_earls bad
Municipal Water District
INTRODUCTION
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 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.
15 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 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 charges 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 Act (Health and Safety Code sections l 16900-116926)
Effective: February 1, 2020 Page 1 of 5
Last Updated: February 1, 2020 Printed on: November 21, 2019
Sept. 28, 2021 Item #2 Page 48 of 51
(_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 po_licy. 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 reriew 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 efforfto 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.
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 (10) days before water service is shut off. The written notice will advise the
Reference: Water Shutoff Protection Act (Health and Safety Code sections l l 6900-1 16926)
Effective: February I, 2020 Page 2 of 5
Last Updated: February I, 2020 Printed on: November 21 , 2019
Sept. 28, 2021 Item #2 Page 49 of 51
~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 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 (5) 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 b ill, 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 (5) 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 (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.
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 wiH 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
Reference: Water Shutoff Protection Act (Health and Safety Code sections 116900-116926)
Effective: February 1, 2020 Page 3 of 5
Last Updated: February 1, 2020 Printed on: November 21, 2019
Sept. 28, 2021 Item #2 Page 50 of 51
{_earls bad
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 fo r an alternate payment arrangement, the customer must meet BOTH of the following:
97
98
99
100
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.
o Demonstrate financial hardship by showing the customer is financially unable to pay for
101 service within CMWD's normal billing cycle. A customer will be deemed to have a
102 qualifying financial hardship if any member of the customer's household receives
103 CalWORKs, CalFresh, general assistance, Medi-Cal, Supplem ental Security Income/State
104 Supplementary Payment, or California Special Supplemental Nutrition Program for
105 Women, Infants, and Children. A customer will also be deemed to have a qualifying
106 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 arty 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
118 paying current water service charges for sixty (60) days or more, CMWD will shut off the customer's
119 water service. At least five (5) 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 l l 6900-1 16926)
Effective: February 1, 2020 Page 4 of 5
Last Updated: February 1, 2020 Printed on: November 21, 2019
Sept. 28, 2021 Item #2 Page 51 of 51
(_carlsbad
Municipal Water District
RESIDENTIAL WATER SERVICE SHUTOFF
PROTECTION POLICY FOR NONPAYMENT OF CHARGES
123 RE STORATION OF SERVICE
124 Deadline for Shutoff -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
129 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: February 1, 2020 Page 5 of 5
Last Updated: February 1, 2020 Printed on: November 21, 2019
ATTACHMENT B
To the members of the :
CITY COUNCIL
Date 1JllmlcA ./cc ~
CM _21af _____v0cM (3) L
CMWD Board Memorandum
Nov. 18, 2021
To: Carlsbad Municip ·strict Board of Directors
From: Paz Gomez, Depu r, Public Works
Vicki Quiram, Gene
Via: Scott Chadwick, Ex er
Ccarlsbad
Municipal Water District
Memo ID# 2021212
Re: .....,..,,__,_, .. hority Second Refund to Member Agencies (Districts -All)
This memorandum provides an update to a previous Board Memorandum dated April 8, 2021,
regarding a refund of $1,692,236.88 that the Carlsbad Municipal Water District (CMWD) received
from the San Diego County Water Authority (Water Authority) (Attachment A).
Background
On April 8, 2021, staff provided a Board Memorandum on the refund that represented CMWD's
share of funds awarded to the Water Authority for contract damages and interest from the
Metropolitan Water District of Southern California (MWD). The Water Authority received a
second award from the MWD for the same legal challenge and will be refunding the CMWD an
additional $1,362,940.86, bringing the total refund awarded to the CMWD to $3,055,177.74.
Both refunds are a result of the Water Authority's lawsuit with the MWD for unlawful rate
charges assessed between the years 2011 and 2014. On May 11, 2021, the CMWD Board
adopted Resolution No. 1653, authorizing use of the first refund to offset the rates that the
CMWD pays the Water Authority for water supply, which will result in offsetting customer rate
increases (Attachment B).
Discussion
On Oct. 28, 2021, the Water Authority announced a plan to distribute the second refund to its 24
member agencies (Attachment C). The CMWD will receive a second distribution in the amount of
$1,362,940.86, bringing the total refund to $3,055,177.74. While the damages and interest
award are important, particularly to the CMWD's rate payers, the judgment will also discourage
future overcharges and thereby minimize future disputes. The Water Authority and the MV\/D are
seeking to resolve remaining issues outside of court as they work together on the many water
issues affecting both agencies now and in the future.
In addition to the damages and interest, the rate case lawsuits generated other benefits
including increasing the Water Authority's preferential rights to MWD water and affirming the
Water Authority's access to MWD programs that support development of local supplies and
water efficiency measures.
Carlsbad Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 760-438-2722 t
Board Memo -SDCWA Second Refund to Member Agencies (Districts-All)
Nov. 18, 2021
Page 2
Next Steps
Within the next few months, staff from the CMWD and the Finance Department will return to
the CMWD Board with information on options for use of the second refund of $1,362,940.86,
which the CMWD will receive, likely next week, from the Water Authority.
Attachments: A. CMWD Board Memorandum dated April 8, 2021
B. CMWD Resolution No. 1653
C. News Release dated Oct. 28, 2021
cc: Geoff Patnoe, Assistant Executive Manager
Celia Brewer, General Counsel
Laura Rocha, Deputy City Manager, Administrative Services
Robby Contreras, Assistant General Counsel
Ryan Green, Finance Director
Kim Riboni, Senior Accountant
Shoshana Aguilar, Senior Management Analyst
To the members of the:
CITY COUNCIL
Date 4-l'l l'-I CA .L CC ✓
CM ,/_ ACM _j/___ DCM {3) ..:L
CMWD Board Memorandum
April 8, 2021 _ -(\
To: Carisbad Municipal Water ~tri\ t Board of Directors
From: Paz Gomez, Deputy City Mana · , Public Works
Vicki Quiram, General Mana er' _ ......,
ATTACHMENT A
Ccarlsbad
Municipal Water District -
Memo ID #2021075
Vii;!: Scott chadwicl<; Executive ~~~ \. _ _ _ _
Re: Si;in Diego County Wi;iter Authority RefL!hd to Member Agencies (Districts -All)
This memorandum provides information on the $1,692,2~6.88 refund from the San Diego County
Water Authority (Water Authority) to. the Carlsbad Municipal Water Oistrict (CMWD), which
represents CMWD's share of contract damages awarded front the Metropolitan Water District of
Southern California (MWD) to the Water Authority.
Background
CMWD is one of the Water Authority's 24 member agencies. lh the Water Authority's effort to
ensure water reliability, it has continued to diversify the regi.on's water supply portfolio, reducing
its reliance on IV!WD to 11%.of its water supply. The WaterAuthority·filed lawsuits between 2010
and 2018 challenging MWD's water rates·and charges as they were imposed on the Water
Authority member agencies and their ratepayers. Attachment A summarizes past and present
litigation issues.
Discussion
On Jan. B, 2021., the San Francisco Superior Court entered a final judgment entitling the Water
Authority to $44,373,872 (hereafter referred to as "$44.4 million") in damages and interest in
addition to recovery of attorney's fees and costs in the first two lawsuits that challenged the
rates and charges set by the !V)WD.
The $44.4 million Judgment represents an award of contract damages for rate charges that had
been unlawfully assessed to the Water Authority between 2011 and 2014. Specifically, the MWD
ov_ercharged its:water steward Ship rates; Which account for the MW D's transport of the Water
Authoritfs independent waterthrough the MWD facilities; The attorney's fees and costs have
not yet been deterlilined. This final Judgment caps a 10-Y'ear effort by the Water Authority _Board
of Directors on behalf of San Diego County ratepayers. While the damages and interest award
. . . .
are important; the judgment will also discourage future overcharges and thereby minimize
future disputes. ·
On Feb. 25:, 2021, the Water Authofity Board voted to refund each member agency its
proportionate share of the $44.4 million received from the MWD for damages and interest. The
news release is included as Attachment B.
Carlsbad Municipal Water District
5950 El Camino Real I Carlsbad, CA 92008 I 760-438-2722 t
Board Memo -SDCWA Refund to Member Agencies (Districts -All)
April 8, 2021
Page 2
The. Water Authority calculated each member agency's refund based on the amount of munidpal
and industrial water each agency purchased from 2011 to 2014, when the MWD overcharged the
. Water Authority. On March 4, 2021, the CMWD received a one-time payment of $1,692,236.88.
To put this i.b context, the CMWD total projected revenue for fiscal year (FY) .2020 -2'1 potabl.e
water is approximately $40 million. Attachment C contains the MWD rate case total refund
allocations of the $44.4 million.
Me.rnber agencies, including CMWD, have worked with their attorneys to analyze options for the
use of the refunded money as Proposition 218 limits how each agency can use these funds. A list
of surveyed agencies, and their respective intended use ofthe refunded money is presented in
Attachment t , Of 18 agencies surveyed, 13 intend to use the refund to offset future rate
increases. Oth$r options mc;1y include dedicating the funds to the water Capital Improvement
Program (CIP) or refunding customers directly. A direct refund to customers would present a
heavy and perhaps infeas.ible administrative burden for CMWD staff since billing records are not
available and maintained frorn the full span of the refunded period, 2011-2014, and customers
Ii ave changed due to moves since thattime. While the office of CMWD's General Counsel
provided CMWD staff with preliminary advice on the matter, no written opinion has been issued
on the use of this refunded money. Accordingly, if the office of CMWD's General Counsel
concurs, the Board staff report will include options for use of the $1,692,236.88 refund but Will
recommend that the refund be used for offsetting future rate increases.
In their efforts to narrow other un-finalized lawsuits, th.e Water Authority's attorneys continue to
work with the MWD to resolve fhe remaining legal issues. The Water Authority will distribute the
attorney's fees and charges once the amounts are resolved.
The Water Authority is working collaborativeiy with the MWD member agencies across the
MWD' s six-county service are.as to update its long-term water resource and financial planning.
The NiWD's Integrated R.esources Plan, known as the IRP, will be its roadmap for the future,
factoring in updated data and plans by many MWD member agencies to develop local water
supplies.
Next Steps
Within the next few months, staff from CMWD and the Finance Department will return to the
C:MWD Board with information on options for use ofthe $1,692;236.88 refund that CMWD
receivedrrcimthe WaterAL!thority.
Attachments: A. Fact Sheet-Water Authoi'ity/MWD Litigation
B. News Release dated Feb. 25, 2021
C. MWD Rate Case Rebates and distribution of $44,373,872 for Local Water
Agendes
Board Memo -SDCWA Refund to Member Agencies (Districts -All)
April 8, 2021
Page 3
cc: Geoff Patnoe, Assistant Executive Manager
Celia Brewer, General Counsel
Laura Rocha, Deputy City Manager, Administrative Services
Robby Contreras, Assistant General Counse_l
Ryan G·reen, Fincince Director
Kim Riboni, Senior Accountant
Shoshanl;I Agµilar, Senior Management Analyst
.\
Our Re g io n 's Trusted Water Leader
San Diego County Water Authority
FACT SHEET-ISSUES IN SDCWA/MWD LITIGATION1
What's been decided so far?
ATTACHMENT A
a. MWD breached Exchange Agreement by charging its WSR2 on transportation (2011-14)
Darnages + interest = $48 mi/lion (appx.3}
Suspension of collection ofWSR (2018-2020) $45 million
b; MWD could include current SWP costs in its transportation rate (no damages c1warded)4
c. MWD miscalculated preferential rights, aboµt 100,000AF rights per year awarded to Water Authority5
d. MWD's RSl 6 clause illegal
Damages (restitution) TBD (stiil pending; see below)
What's still pending?
a. MWD breached Exchange Agreement by charging its WSR on transportation (2015-17).7
Damages+ interest -$32 million
b. Restitution for RSI years (2011-2017)8
Damages+ interest =
c. Offsetting benefits. of wheeled water suppHes9 (2011~2020; $250/AF I.ow estimate)
Damages+ interest =
e. WSR on supply purchases (2018~2020)1Q
Damages+ interest =
e. Attorney's fees/costs =
$64 million
$660 million
$14 milllon
$1.5 million
1 ivlWD's 998 offer proposes that the Water Authority agree to an amendment of the Exchange Agreement; however, no
amendment 1s at issue Tn the litigation, and thus is not shown here.
2Water Stewardship Rate.
3 All dollar numbers are approximate.
4The_ W<;1ter Authority had already paid the disputed .rates.
5 This i's not a damages issue; MWD has cotreded its calculation ofpreferential rights. As a comparable for valuation of the 100,000
AFYof water; the Carrsbad Desalination Project cost al:,out $11:iilHon to produce Lip to 5~,000 AFY. ·
6 Rate Str'Licture Integrity.
7This issue was decided against MWD ih the 2011-20i4 cases but MWD claims it now has a new administrat_ive recqrd and therefore
wants to try the issue again.
8 Repre~ents the difference between the Water Authority share of payments to fund WSR projects and benefits received with WSR
payments to Exchange Agreement netted outforthe.period indicated; does not include Wat~r Authority's claim for subsidies for
Carlsbad, though such LRP funding could be an alternative valu~ for the same period. Overall, prior to adjustment for damages a_nd
r:ecentLRP contrai;:ts, the Water Authqrity to date has paid $.170 mi/lion:rnore to fund WSlfprograms than it has received in
benefits.
9 The wheeling statute requires-MWD to calculate offsetting benefits but MWD refuses to do so even though the Court of Appeal
applied the wheeling statute to the Exchange Agreement.
10The claim forWSRon supply charges for2015~2017 is dupiicati\le ofthe (b) restitution claim and so is not listed separately.
ATTACHMENT B
Our Region's_ Trusted Water Leader
San Diego County Water Authority
4677 OverlandAvenue,San Diego, CA 92123
N ew s Rel ease
Ed Joyce
(949).276-1675 cell
Eioyce(@sdcwa.mg
$44.4 Million in MWD Overcharges Being Returned to Local Water Agencies
Rate c;ases move closer to ·closure with damages payment by MWD
Febmaty 25, 2021-The San Diego County Water Authority's Board of Directors today
announced a plan to distribute a rebate of $44.4 million to its 24 member agencies across the·
i'egion after receiving a check for that amount from the Los Angeles-based Metropolitan Water
District ofSoutheri1 California to pay legal damages and interest.
The money resulted from the Water
Authority'$ decade-long rate case
litigation in state Superior Court
. seeldng to compel MWD to set legal
rates and repay overcharges. The Water
Authority won sevetal critical issues in
cases covering 2011-2014 and was
deemed .the prevailing party; which
1neans the agency is also owed legal
fees and charges in addition to the
recent damages and interest payment
fromMWD.
The comi rulings will also help avoid
future overcharges and thereby
minimize future disputes .over MWD's
•it his day has been a Jong time coming. We
never wanted t o lit igate these issues -but
if we had not had the courage to do so,
MWD would still be collecting the illegal
fees and we would not have money to give
back to loc;:aJ ret;;lilwater agencies across
the region."
■ Gary Croucher, Board Chair
San -Diego Cou.nty Water Authority
unlawful Wate;r Stewardship Rate for transportb.1.g the Water Auth().tity ' s independent water
supplks through MWD facilities. Those charges ~ ifthey had continued -would have cost San
Diego County residents. more than $500 million over the life ofthe Water Authority's watei'
delivery contract with MWD.
"This day has been a long time coming," said Water Authority B<;mrd Chair Gary Croucher. "We
never wai1ted to litigate these issues -but if we had i10t had the coutage to do so, MWD would
still be coUectiilg the illegal fees and we would not have tppney to-give back: to local retail water
agencies across the region.''
Per today's decision by the Water A1.J.thority's Board, the $44.4 million will be returned to
membet agencies in proportion to their ovetpayme11ts between 2011-2014. the Water Authority .
does liQt have a say in how member agencies use the refunds. The amount of legal fees.and costs
owed to the Water Authority is yet to be determined.
In addition to damages and interest, the rate case lawsuits generated other substantial benefits,
such as requiring an increase in the Water Authority's preferential rights to MWD water by
approximately 100, Q00 acl'e-feet a yeai:, eq11ivalei1t to about twice the annual production of the
$1 billion Carlsbad Desalination Project.
In February 2020, the Water Authority's Board of Directors voted to dismiss certain issues :from
the litigation after securwg more than $350 milli_on in local prqject subsidy benefits for the San
Diego region. In doing so, tbe Water Authority acknowledged the MWD Board action to stop
imposing its Water Stewardship Rate for :transportfog the Water Authority's independent
supplies, thµs tesolving for now that issue in future rate years.
As the laws.uits wind down, the Water Authority is worldng collaboratively with MWD member
agencies across Southem Califomia to update MWD' s long-te1m water resource and financial
plans. MWD's Integrated Resources Plan, known as the IRP, will be the agency's roadm1:1-p for
the future. The Water Authority is advocating forincl:usion of updated data and plans by many
MWD member agencies to develop iocal water suppiies such as the Water Authority and its
member agencies have done over the past two decades and will continue to do in the future-.
###
The San Diego County WaterAuthority sustains a $245 billion regional economy and the quality
of life for 3.3 million residents through a multi-decade water supply diversification plan, major
infrastructure investments and fotward'-fhinking policies that promote fiscal and envlronmental
responsibility. A public agency created in 1944, the WaterAuthority delivers wholesale water
supplies to 24 retail water providers; including c;itfes, special districts ancl a military base:
~
q,dfi9'1DJ"'WWW. instagram. com/sdcwa
. ·www. twitter.colil/sdcwa @sdcwa
www•.facebook.com/SanDiegoCountyWaterAuthority
YoufJll} www.youtube.com/SDCWAvideo
ATTACHMENT C
Agency Refund Amount Use of SDCWA Refund Payment
Carlsbad MWD $1,692,236.88 To be determihed
Del Mar, City of $108,025.65 Water Fund Contingency
Escondido, City of $1,754,022.94 CIP
Fallbrnok PUD $909,412.67 Offsetting future rate increases/local supply
development
Helix WD $2,847,389.34 Offsetting future rate increases
Lakeside WD $348,005.17 Capital Improvement Reserve Fund
Oceanside, City of $2, 351,413.99 Offsetting future rate increases
Olivenhain MWD $2,039,332.40 Offsetting future rate increases
OtayWD $3,162,939.58 Offsetting future rate increases
Padre Dahl MWD $1,157,551.53 Offsetting future rate increases
Pendleton Military Reserve $4,958.08 To be determined
Poway, City of $1,167,915.01 Offsetting future rate increases
Rainbow MWD $1,343,382.03 Offsetting future rate increases
Ramona MWD $596,663.83 To be determined
Rincon Del Diablo MWD $630, 780.62 To be determined
San Diego, City of $17,676,521.64 To be determined
San Dieguito WD $368,002.42 Offsetting future rate increases
Santa Fe ID $748,699.93 Offsetting future rate increases
Sweetwater Authority $874,367.74 To be determined
Vallecitos WD $1,590,623".74 Offsetting future rate increases
Valley Center MWD 1,332,471.26 Offsetting future rate increases
Vista ID $1,571,006.35 Offsetting future rate increases
Yuima MWD $98,149.47 Rate Stabilization
ATTACHMENT B
RESOLUTION NO. 1653
A RESOLUTION OF THE BQAE(D OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY PF CARLSBAD, CALIFORNIA,
AUTHORIZING USE OF THE SAN DIEGO COUNTY WATER AUTHORITY (WATER
AUTHORITY) REFUND TO OFFSET THE RATES THE CARLSBAD MUNICIPAL
WATER DISTRICT (CMWD) PAYS THE WATER AUTHORITY FOR WATER
SUPPLY~ WHICH WILL RESULT IN OFFS:ETING FUTURE CUSTOMER RATE
INCREASES
WHEREAS, on March 4, 2021, the Water Authority ref1.mded the CMWD an amount of
$1,692,237; and
WHEREAS, this amount represents CMWD;s share of contract. damages awarded from the
Metropolitan Water District of S01,.1thern Caiifomia {MWD) to the Water Authorityfor stewardship rate
charges that MWD unlawfully assessed to the Water Authority between 2011 and 2014; and
WHEREAS, the CM\ND Board of Directors {a-oard) 9f the City of Carlsbad~ California has
determined it necessary and in the public interest to appr9ve the use of the Water Authority refund to
offset the rates the CMWD pays the Water.Authorltyfor water supply, which wUI result in offsetting
future customer rate-increases.
NOW, THEREFORE, BE iT RESOLVED by the ·Boarcl ofDjrectors of the Carlsbad MunitipalWater
· DistrJct of the City of Carlsbad, California, as fo.llows:
1. That the above recitations are true and correct.
2. That the San Diego County Water Authority refund in the amount of $1,692,237 be used
to offset the rates the CMWD pays the Water Authority for water supply, Which will result in offsetting
future. customer rate increases.
II
II
II
II
II
II
II
II
May 11, 2021 Item #3 Page 5 of 10
PASS!:D, APPROVED AND ADOPTED at a Special Meeting of the Bo.ard of Directors of the
Carlsbad Municipal Water District of the City of Carlsbqd; California on the 11th day pf May, 2021; oV
the following-vote, to wit
AYES:
NAYS:
ABSENT:
May 11, 2021
Hall, Blackburn, Acosta, Bhat-Patel; Schumacher.
None.
None.
MATT HALL, PRESIDENT
~~ Tu,'Wlill'~ Tu<
BARBARA ENGLESON, SERETARY
(SEAL)
Item #3 Page 6 of 10 .
ATTACHMENT C
Our Region's Trusted Water Leader
San Diego County Water Authority
4677 Overland Avenue, San Diego, CA 92123
News Release
Ed Joyce
(949) 276-1675 cell
Ejoyce@sdcwa.org
$35.9 Million More in MWD Overcharges Being Returned to Local Water Agencies
Final settlement of litigation now in reach
Editor's Note: A table of distributions by agency follows the release.
October 28, 2021 -The San Diego County Water Authority's Board of Directors today
announced a plan to distribute $35.9 million to its 24 member agencies across-the region after
receiving a fund transfer from the Los Angeles-based Metropolitan Water District of Southern
California to pay legal damages and interest.
Combined with a similar payment in
February, the Water Authority has
distributed more than $80 million to its
member agencies in 2021 as a result of
its successful rate litigation against
MWD. The two parties are seeking to
resolve the remaining issues outside of
court as they partner on water supply
reliability, conservation, affordability,
and climate change issues challenging
Southern California.
"The Water Authority is leading efforts in
San Diego County to maintain a reliable
and affordable water supply."
■ Gary Croucher, Board Chair
San Diego County Water Authority
"The Water Authority is leading efforts in San Diego County to maintain a reliable and
affordable water supply," said Water Authority Board Chair Gary Croucher. "While the rate
litigation was necessary to protect our ratepayers, we fully embrace the new spirit of
collaboration at MWD under General Manager Adel Hagekhalil and Board Chair Gloria Gray as
we focus on.the challenges ahead with a united front."
The payments approved by the Board today resulted from the Water Authority's rate case
litigation in state Superior Court asking MWD to set legal rates and repay overcharges.
The Water Authority won key issues in cases covering 2011-2014 and was deemed the
prevailing party by the Comi, which means it is also owed legal fees and charges in addition to
the recent damages and interest payment from MWD. In February, the Water Authority sent
_ checks totaling $44.4 million to its member agencies after it received a check for that amount
from MWD to remedy overcharges from 2011-2014.
Per today's decision by the Water Authority's Board, an additional $35.9 million will be returned
to member agencies in proportion to their overpayments between 2015-2017.
The court rulings will also help avoid future overcharges and thereby minimize future disputes
over MWD's rates charged to transport the Water Authority's Colorado River water supplies
through MWD facilities. Those charges -if they had continued -would have cost San Diego
County residents more than $500 million over the life of the Water Authority's water delivery
contract with MWD.
In addition to damages and interest, the rate case lawsuits generated other substantial benefits,
including an increase in the Water Authority's preferential rights to MWD water by
approximately 100,000 acre-feet a year, equivalent to about twice the annual production of the
$1 billion Carlsbad Desalination Project.
Another outcome of the lawsuits affirmed the Water Authority's access to MWD programs
supporting development of local supplies and water-efficiency measures. Since the court ruled it
was illegal for MWD to prohibit the Water Authority from accessing these programs, the Water
Authority has secured almost $500 million in local project benefits for the San Diego region.
###
The San Diego County Water Authority sustains a $253 billion regional economy and the quality
of life for 3.3 million residents through a multi-decade water supply diversification plan, major
infrastructure investments and forward-thinking policies that promote fiscal and environmental
responsibility. A public agency created in 1944, the Water Authority delivers wholesale water
supplies to 24 retail water providers, including cities, special districts and a military base.
e
1111>~www.instagram.com/sdcwa
. www.twitter.com/sdcwa @sdcwa
O www.facebook.com/SanDiegoCountyWaterAuthority
Youlfflffij www.youtube.com/SDCWAvideo
~ . -=--MeJn~r M:~UfY.~~--.aarn=··s"""'bjbutjgrutl
Carllsbad M. W. D., $,1, 6921236. 88,
Del Mar,. City of $ 1 QS 1,025.65
IEsioondf!do, cny of $·1., 7541022. 94
IFallbrook RU.U. $909ilt2..67
He[ix W~D. $2.:;847 ]'389.34
11..akeside W. D. . S3481005 .17
Oceansmde, C.11ty of . $,1.,351 1413. 99
OUv.enhain N\.W.D. S2,O39,J32.40
Otayw:o.. Si3i162,93'9.5,B
Padr,e Barn M. w. D.. $,1, 157} 551. 53
Pendl,eton NtiUtary Reserve .$41 95,S.. 08
.Pov1ay, City of . . $1,1671915.IJl
R2ti1111bow M. W. D". . $il, 3413:,382 .• 03
R.a1:mona M. W. °'" $5961663. 83
IR!i r,,con Del Dfablo N1. W.fJi. $63:0l' 780. 62
:San.Di,ego, City of St?,,6761521.64
San rn,eguito W.D~ $368)002.42
;Santa IFe I .ID. $7 4181699. 93
'SvieebNater Authority $874,.367. 7 4
VaUecitos W. D. S.1 ., 5'901,62.3. 7 4
Vatley Ce11te,r Nt. W. [t. $:1, 3'32,417·1 • 26,
V~:s.ta 11.D. S:1_,571'1006.35
Yunma M.W.D. . S:981149.47
Jot~l ~+.f,3,?3,,azi~.2~
J}.i,strii~utiqn #2_
:St,362, 9'410.86
SaB,358.85
·s1 , 2 9,1 , 8,96 •. 32
(" . -,,625 .,250. 63
$2~.42.5 ,22:8J~7
$237,868.80
$1, 93.8;202.. 155
St,.6'22,584.51
S2,SZ5, 9144."50
$846,518.19
$5,701.47
$837, 1-4-9.50
$908, 190,,96
$3;619, 1,81 .59
$4!68 ,066 .. 70
$14,990,2417.29
$366, 6,59. 60
$.646,4114 • .28
.· :$1,070, 9'31 .27
· $1,2.48,828..17
$682,215 .. 91
'$1 ,227,642,. 91
'$85, 129.98
SJ,~_, ~l't 1. 5:3:.~.?0
liotarr
~ m-stribu~tiqp~-,
S.3-10:55, 177.74
$.196,38-4.50
$3:,045, 919 .26
$1 r 534,663.30
$_51272., 618-.21·
$.585,873.97
$4,289',61,6.54
$'3;,,661, 916.91'.
55 ,,688.,.884-.0B
s2,004,0o9.n
$10,659.55
$1~005, 064-. 5 t
s2,21s1,5,n.99.
$965,&45.42
$1:,.098, 847. 32
$321,666, 76,B .93
.S:734,66,2.02
$1]'395, 1141-.211
$'11'945' 2 99 .01:
$2.,,839',45,1.91'
$1,014, 68,7. 17
$1~798.,649.26
S:183,279.4-5
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