HomeMy WebLinkAbout06/01/1992, 1A - LOW INCOME ASSISTANCE PROGRAM FOR CITY UTILITIES II����Ip�lllulll,l�llll�IIIIII MEETING.OATE:
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City 7 of san pais oBispo
COUNCIL AGENDA REPORT ITEM NUMBER: /
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FROM: William C. Statler, Director of Finance
Prepared by: Linda Asprion, Revenue Manager-,%
SUBJECT: LOW INCOME ASSISTANCE PROGRAM FOR CITY UTILITIES
CAO RECOMMENDATION
Direct staff to prepare a low income assistance program for our
water and sewer customers consisting of the following elements:
15% rate reductions, one-time payment assistance, and hardware
retrofit.
DISCUSSION
Background
One of the key Council goals for 1991-93 is to develop a program
to assist low-income customers afford City utilities (pages D-36
and D-109 of the 1991-93 Financial Plan) . On March 11, 1992 , City
staff from seven Departments - Administration, Finance, Utilities,
Community Development, Police, Recreation and Public Works - met
to discuss ideas for such a program. Representatives from Pacific
Gas and Electric (PG&E) and Southern California Gas Company (The
Gas Company) provided the group with an overview of the low-income
assistance programs these other utility companies offer.
While both PG&E and The Gas Company offer a variety of low-income
assistance programs, ranging from appliance repair and replacement
programs to various forms of rate assistance, there were two
programs which both utility companies have experienced as most
successful. These two programs are described below.
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■ Low-Income Rate Assistance (LIRA) . Allows eligible customers
to receive a 15% reduction on their monthly utility bills for
all charges with no consumption limits. To qualify for the
program one member of the household must receive one or more
of the following: Aid to Families with Dependent Children
(AFDC) , Veterans and Survivors Pension Benefits, Supplemental
Security Income/State Supplement Payment (SSI/SSP) , or food
stamps. Households may also qualify for the program based
upon their total gross household annual income. PG&E requires
customers to submit an application to the California
Department of Economic Opportunity while The Gas Company
administers the program themselves.
■ Assistance Fund. This program is designed specifically for
income-eligible customers experiencing difficulty is paying
their utility bills. The assistance fund consists of
privately donated funds which are matched by the utility
company shareholders up to a predetermined dollar amount.
Eligible customers may use this program once during a 24 month
period. The Salvation Army administers this program for PG&E
and United Way administers the program for The Gas Company.
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COUNCIL AGENDA REPORT
What Types of Assistance Can The City Provide?
Participants at the meeting discussed various alternatives for a
City sponsored low-income assistance program. Consideration was
given to the burden of administering such programs and also to the
cost of implementing and maintaining viable programs. But perhaps
most importantly, consideration was given as to the type of program
that would actually provide the assistance most needed by our low-
income customers.
Taking the three criteria of cost effectiveness, ease of
administration, and most assistance to the low income customer as
their goals, the participants felt that the programs (LIRA and
Assistance Fund) which are so successful with PG&E and The Gas
Company should be modeled by the City. With these programs already
successfully established by the other utility companies there would
be continuity and familiarity if similar programs were established
for water and sewer billings. Provided in Attachments 1 and 2 are
summaries of the assistance programs offered by PG&E and The Gas
Company.
In addition to these two programs, the participants also
recommended a greater retro-fit assistance program to assist low-
income households in consumption reduction which may also reduce
their billings. As such, the following three programs are proposed
for implementation.
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■ Rate Assistance Program
Implementing a rate assistance program for water and sewer
billings would be very similar to the other utility companies.
The customer applying for the program would be required to
provide a copy of their documentation showing that they
receive AFDC, Veterans and Survivors Pension Benefits,
SSI/SSP, food stamps, or have been determined to be eligible
for participation in either the Gas Company' s or PG&E' s
program. The customer's water and sewer account would then
be reduced by 15%, both on the base charges and the
consumption charges. The City's current utility billing
system can accommodate this program without additional
programming or other costs.
PG&E and The Gas Company have . provided us information
regarding the percentage of their customers who participate
in the rate assistance program. Based upon this information,
staff approximates 4% of the City's residential customer base
would participate in a City rate assistance program. Using
the 15% rate reduction, the City's Water Fund revenue would .
be reduced by approximately $3 , 000 annually and the Sewer Fund
revenue would be reduced by approximately $1,200 annually.
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COUNCIL AGENDA REPORT
■ Assistance Fund
Implementation of the assistance fund requires citizen
involvement in the form of contributions and an outside agency
to administer the distribution of the funds. The citizen
contributions would be matched up to a predetermined dollar
amount from both the water and sewer funds. Based upon i
information from The Gas Company and PG&E, their shareholder
match to citizen contributions is approximately $ .06 per
customer. This proposal provides for the City contribution
to be $ . 13 per residential customer, which requires
allocating $700 from the Water Fund and $300 from the Sewer
Fund to be used as matching funds for citizen contributions.
While this is twice the other utility companies household
contribution rate, the City's residential customer base is
much smaller (7 , 500 residential customers) and the City needs
to establish its matching fund rate at a sufficient level to
accommodate the needs of our low-income customers.
To implement the program, citizens will be notified of the
Assistance Fund and that the City will match these
contributions up to $1, 000 each year. This would provide up
to $2, 000 annually to assist low-income customers.
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Restrictions would be placed on these funds, such as
qualifying as income-eligible, only receiving assistance when
the water is going to be shut-off due to non-payment, and only
receiving assistance once every 24 months. These restrictions
and proper distribution of the funds would be handled by an
outside agency. The agency would receive reimbursement for i
their costs to administer the program - these costs should be
nominal.
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■ Retro-fit Assistance Program
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Implementation of this program would involve close cooperation
with Water Conservation. Once the customer received
assistance from either the Rate Assistance Program or the
Assistance Fund, their account would be forwarded to Water
Conservation for review and scheduling of a home water
consumption survey. Based upon their review, Water
Conservation may recommend ultra low-flow toilets and
showerhead and faucet restrictors. Additionally, information
regarding water usage would be provided to the customer to
assist them with planning their daily water needs, including
any landscaping or irrigation.
Water Conservation will return to Council in the near future
with alternatives for a long term rebate program which will
include benefits for low-income customers.
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COUNCIL AGENDA REPORT
Program Implementation
I.f approved by the Council, the following administrative issues
would have to be resolved prior to program implementation:
■ Should eligibility for the 15% rate reduction be
determined by City staff (The Gas Company approach) or
an outside agency (PG&E's approach) ?
■ What outside agency should administer the payment
Assistance Fund?
■ Other rules and guidelines regarding eligibility and
program administration as necessary to ensure appropriate
management and communication of the programs to our
customers. j
It is anticipated that these guidelines can be prepared within 60
days after conceptual Council approval of this program.
FISCAL IMPACT
I
Based upon the recommended matching contribution for the Assistance
Fund and the anticipated reduced revenue from the Rate Assistance
Program, the impact on the water fund would be approximately $3 ,700
annually and on the sewer fund approximately $1, 500 annually.
These amounts are nominal and have no major impact on either fund
balance.
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SUMMARY
One of Council ' s key goals for 1991-93 is to implement a program
to assist our low-income customers who have difficulty affording
City utilities. The proposed program offers a 15% rate reduction
for customers receiving Federal and State aid, a one time assist
to customers who are experiencing financial difficulty and just
need a little help, and assistance in retro-fitting and maintaining
conservative water usage within their homes. By offering this
multi-faceted program, the City is able to assist their low-income
customers in a manner that other utility companies have found
successful .
ATTACHMENTS
1. Pacific Gas and Electric 1992 Residential Services Programs
2 . Southern California Gas Company Services Available
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PACIFIC GAS AND ELECTRI
1992 RESIDENTIAL SERVICES PROGRAMS
HOME ENERGY SURVEY An in-home energy survey designed to provide valu-
able information to the consumer about specific conservation measures
that could result in energy cost savings. The survey also focuses on
individual energy conservation habits and practices. For further
information, call Residential Services at 595-6306.
ENERGY CONSERVATION EDUCATION Helpful energy conservation habits and
practices are promoted through educational presentations and workshops
targeted towards schools and community organizations.
RESIDENTIAL ENERGY ASSISTANCE THROUGH COMMUNITY HELP (REACH) . A residen-
tial energy assistance program administered through the Salvation Army;
designed specifically for income-eligible customers experiencing diffi-
culty paying their utility bill. Privately donated funds are matched by
PG&E shareholders up to $2.0 million annually. For further information,
call Salvation Army.
RESIDENTIAL ACCOUNT REPRESENTATIVE Residential Service experts provide
a complete array of in-home energy and customer-related services at no
added cost. Services include: energy education, billing information,
energy assistance and customer service programs. For further informa-
tion, call 595-6306.
FURNACE/AIR CONDITIONER FILTER COUPONS Two furnace/air conditioner fil-
ters can be purchased at a cost reduction of $1.00 when accompanied by
company sponsored coupons.
TARGET CUSTOMER APPLIANCE PROGRAM (TCAP) Income-eligible customers may
receive, at no cost, new energy efficient refrigerators to assist energy
conservation efforts. For further information, call Residential Services
at 595-6306.
ENERGY-EFFICIENT APPLIANCE REBATES Monetary rebates are offered to cus-
tomers to promote the purchase of energy efficient refrigerators
(June through September 1992) on qualifying models through participating
EGTA dealers. For information, call 1-800-652-1080.
E•F4=RIC AND GAS _INDUSTRIES ASSOCIATION (EGIA) CEILING INSULATION REBATE
EGIA, in cooperation with PG&E, offers a $200. rebate from January 1
through March 10, on the minimus installation of 600 sq. ft. of insula-
tion. The materials must be purchased and installed by a participating
contractor in the program. After March 10, the rebate drops to $100.
For information, call 1-800-652-1080.
EGIA REBATE COUPONS EGIA also offers rebate coupons for the purchase
of energy efficient water heater blankets and showerheads.
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1992 RESIDENTIAL SERVES PROGRAMS - Page 2
TIME OF MU Consumers can significantly reduce their electrical bills
by not using electricity from noon to 6:00 p.m. Monday through Friday.
For further information, call Residential Services at 595-6306.
MEDICAL BASELINE ALLOWANCE Customers who have medical problems which
require them to use more energy than normal should contact the Utility
Office to see if they qualify for any additional discounts in their
energy rates. For information, call Customer Services at 595-6400.
LOW-INCOME RATE ASSISTANCE (LIRA) Customers who qualify for PG&E LIRA
Program can receive a 15 percent discount on their monthly energy bills.
For information, contact a Customer Services Representative at 595-6400.
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Attachment 2
SOUTHERN CALIFORNIA GAS COMPANY
SERVICES AVAILABLE
FOR INFORMATION IN ENGLISH OR SPANISH:
IN VENTURA COUNTY CALL: 1-800-292-9786
LOCATIONS NORTH OF GAVIOTA CALL: 1-800-479-4472
SANTA BARBARA,. GOLETA, CARPINTERIA CALL 805-964-7851
24-HOUR RESPONSE-FOR A GAS EMERGENCY, SERVICE OR BILLING, 24
HOURS A DAY, 7 DAYS A WEEK, GIVE US A CALL.
APPLIANCE SERVICE AT NO ADDITIONAL COST TO CUSTOMER,
APPLIANCES ARE CHECKED FOR SAFETY AND CORRECT OPERATION WITH
IN STOCK PARTS SUPPLIED AT A MINIMAL CHARGE.
APPLIANCE CONNECT SERVICE-FOR A CHARGE, GAS COMPANY FIELD
PERSONNEL WILL CONNECT GAS APPLIANCES.
BASELINE RATE-THERMS TO SERVE MINIMUM BASIC NEEDS ARE
AVAILABLE TO ALL CUSTOMERS AT BELOW THE COST OF PROVIDING THE
GAS. ABOVE THIS VOLUME THE RATE IS HIGHER. THE PURPOSE IS TO
ENCOURAGE CONSERVATION. CHECK INFORMATION ON YOUR GAS BILL.
LEVEL PAYMENT PLAN-BY AVERAGING OUT PAYMENTS OVER A YEAR,
CUSTOMERS CAN SPREAD HIGHER WINTER BILLS OVER A 12-MONTH
PERIOD. THE BILL IS JUSTIFIED ONCE A YEAR.
PARTIAL PAYMENT PLAN-ALTHOUGH NOT FORMAL LIKE LEVEL PAY PLAN,
WHEN POSSIBLE, WE WILL WORK OUT SPECIAL PAYMENT ARRANGEMENTS
FOR PEOPLE HAVING DIFFICULTY PAYING THE TOTAL AMOUNT OF THEIR
GAS BILL.
THIRD PARTY NOTIFICATION-THROUGH THIS PROGRAM, A THIRD PARTY,
SUCH AS A CHILD, GUARDIAN OR SOCIAL AGENCY, IS PROVIDED A COPY
OF ANY TERMINATION NOTICES THAT ARE SENT TO THE PARTICIPATING
CUSTOMER. THIS HELPS AVOID THE POSSIBILITY THAT A CUSTOMERS
GAS SERVICE COULD BE SHUT OFF UNNECESSARILY. THE THIRD PARTY
IS NOT RESPONSIBLE FOR THE BILL.
LOW INCOME RATE ASSISTANCE PROGRAM-QUALIFIED LOW INCOME
CUSTOMERS CAN RECEIVE A 15% DISCOUNTED RATE ON THEIR GAS BILLS
INCLUDING THE CUSTOMER CHARGE AND THE COMMODITY CHARGE.
SPECIAL SERVICES CONSIDERATION-SPECIAL CONSIDERATION WILL BE
GIVEN TO SENIOR CITIZENS WHEN SCHEDULING SERVICE ORDERS, AS
LONG AS IT DOESN'T IMPACT OUR OPERATIONAL COST OR THE LEVEL
OF SERVICE PROVIDED TO ALL CUSTOMERS.
LOW INCOME ASSISTANCE REFERRAL-IN EVERY AREA WE SERVE, THERE
ARE COMMUNITY AGENCIES TO HELP CUSTOMERS WHO ARE HAVING
DIFFICULTY PAYING THEIR ENERGY BILLS.
GAS ASSISTANCE FUND-CONTRIBUTIONS MADE BY OUR CUSTOMERS ARE
MATCHED BY SHAREHOLDER FUNDS. THIS MONEY IS AVAILABLE THROUGH
SELECT UNITED WAY AGENCIES TO HELP ANY DELINQUENT GAS BILLS.
DIRECT ASSISTANCE PROGRAM-(DAP) -1. WEATHERIZE QUALIFYING
SINGLE AND MULTI-FAMILY DWELLINGS. 2. REPAIR OR REPLACE MAJOR
APPLIANCES TO QUALIFYING OWNER-OCCUPIED SINGLE-FAMILY
DWELLINGS. 3 . PROVIDE ENERGY EDUCATION. DAP PROVIDES
FUNDING TO LOCAL AGENCIES FOR QUALIFYING LOW-INCOME CUSTOMERS.
HOME ENERGY AUDIT-IN HOME AUDITS COMPLETED BY FIELD PERSONNEL
IN RESPONSE TO HIGH BILL COMPLAINTS AND SERVICE REQUESTS. "DO
IT YOURSELF" KITS SENT VIA MAIL.
RESIDENTIAL WEATHERIZATION REBATE PROGRAM-REBATE FOR REPLACING
GAS WATER HEATERS AND/OR FURNACES WITH HIGH EFFICIENCY UNITS,
WEATHERIZATION ITEMS SUCH AS DUCT INSULATION, WEATHER
STRIPPING, CAULKING AND/OR WATER HEATER WRAPS.
LIGHT OR CLOSE HEATER PILOT LIGHTS-TO CONSERVE ENERGY IN
SUMMER, PILOTS ARE TURNED OFF, AND IN THE WINTER THEY ARE
TURNED ON AT NO COST TO CUSTOMER.
EARTHQUAKE PREPAREDNESS-INFORMATION AND PROGRAMS ARE
AVAILABLE.
WATCH FOR SENIORS IN TROUBLE-FIELD PERSONNEL, DURING THE
COURSE OF THEIR NORMAL WORK ROUTINE, WILL WATCH FOR SENIORS
WHO APPEAR TO BE IN NEED OF FINANCIAL AND/OR MEDICAL
ASSISTANCE. MEDICAL EMERGENCY NEEDS WILL BE REPORTED
IMMEDIATELY TO PARAMEDICS OR THE APPROPRIATE AUTHORITIES.
NON-EMERGENCY MEDICAL AND/OR FINANCIAL NEED WILL BE REPORTED
TO THE LOCAL AREA AGENCY ON AGING (AAA) .
WAIVING DEPOSIT REQUIREMENTS-SENIORS ARE NOT REQUIRED TO PAY
DEPOSITS TO ESTABLISH CREDIT FOR NEW SERVICE.
BASELINE MEDICAL ALLOWANCE-AN ADDITIONAL 25 THERMS PER MONTH
AT THE LOWER RATE IS AVAILABLE FOR PARAPLEGIC, QUADRIPLEGIC,
HEMIPLEGIC, MS, SCLERODERMA AND FOR THOSE WHO REQUIRE DAILY
USE OF GAS LIFE SUPPORT EQUIPMENT.
WATER HEATER WRAP & STRAP-FOR A CHARGE, THE GAS CO WILL
INSTALL WATER HEATER BLANKETS AND/OR ANCHOR WATER HEATER TO
STRUCTURES.
EXPANDED HOURS-FIELD SERVICE PERSONNEL ARE AVAILABLE MONDAY
THRU FRIDAY FROM 7:00 A.M. TO 8 : 00 P.M. TO SERVICE APPLIANCES.
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SOFT CLOSE POLICY-LEAVES GAS ON FOR 10 WORKING DAYS AFTER A
CUSTOMER HAS HAD SERVICE TAKEN OUT OF HIS/HER NAME. THIS
PROVIDES ADDITIONAL CUSTOMER CONVENIENCE. CUSTOMERS DO NOT
HAVE TO WAIT ALL DAY TO HAVE THE SERVICE TURNED ON.
AUTHORI2ED PAYMENT AGENCIES-THERE ARE 25 FULL SERVICE PAYMENT
AGENCIES IN OUR DIVISION WHICH ENCOMPASSES SAN LUIS OBISPO
COUNTY, SANTA BARBARA COUNTY AND VENTURA COUNTY.
CONTINUOUS SERVICE- GAS SERVICE WILL BE CONTINUED IN AN OWNERS
OR MANAGERS NAME WHENEVER A TENANT VACATES A PREMISE.
APPLIANCE REPAIR AND REPLACEMENT PROGRAM (ARRP) -THIS PROGRAM
PROVIDES FOR THE REPAIR OR REPLACEMENT OF WATER HEATERS,
RANGES AND FURNACES ON A NO COST BASIS TO QUALIFIED LAW INCOME
CUSTOMERS.
RESIDENTIAL REBATE PROGRAM (RRP) -THIS PROGRAM PROVIDES CASH
REBATES TO CUSTOMERS WHO INSTALL CERTAIN MODELS OF HIGH
EFFICIENCY GAS FURNACES AND/OR WEATHERIZATION ITEMS.
TIMED APPOINTMENTS-THERE IS A $25 CHARGE FOR A SPECIFIC TIMED
APPOINTMENT.
TIME COMMITTED ORDERS-YOU MAY MAKE AN A.M. (9-1) , P.M. (1-5)
OR EVENING APPOINTMENT (5-8) AT NO CHARGE.
HEARING OR SPEECH I"AIRED (TTY) -SERVICE IS AVAILABLE:
1-800-252-0259.
MULTI-LINGUAL SERVICE BUREAU- REPRESENTATIVES ARE AVAILABLE TO
ASSIST CUSTOMERS WHO SPEAK:
CANTONESE: 1-800-225-2302
MANDARIN: 1-800-635-8899
KOREAN: 1-800-225-2309
VIETNAMESE: 1-800-235-8844
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