1 STAFF REPORT
DAT
E: December 12, 2023
T
O: Justin Hess, City Manager
F
ROM: Dawn Roth Lindell, General Manager, Burbank Water and Power VIA: Sean Aquino, Assistant General Manager , Customer Service Operations
BY: Arineh Sarkissian, Manager Customer Service Operations S
UBJECT: Adoption of a Resolution Authorizing the Participation and Application to the California State Water Resources Control Board for the Extended California Water and Wastewater Arrearage Payment Program
RE
COMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AUTHORIZING
THE PARTICIPATION AND APPLICATION TO THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD’S EXTENDED CALIFORNIA WATER AND WASTEWATER ARREARAGE PAYMENT PROGRAM (EXTENDED CWWAPP);
AUTHORIZING THE BURBANK WATER AND POWER GENERAL MANAGER, AS
DESIGNEE OF THE CITY MANAGER, TO EXECUTE AN APPLICATION FOR THIS
AND ALL SUBSEQUENT CWWAPP, AND UPON RECEIPT OF FUNDS, APPLY
CREDITS TO DELINQUENT RESIDENTIAL AND COMMERCIAL WATER AND WASTEWATER ACCOUNTS (Attachment 1).
BACKG
ROUND
The COVID-19 pandemic has made it difficult for many Californians to pay their bills due to job loss and other hardships. As a result, $985 million of funding was allocated in 2021 by the state legislature; the California State Water Resources Control Board (State Water Board) created the California Water and Wastewater Arrearage Payment Program (CWWAPP) to provide relief to community water and wastewater systems for unpaid bills related to the pandemic. The CWWAPP disbursed $385 million of the funding to eligible entities to cover water debt from residential and commercial customers accrued between March 4, 2020, and June 15, 2021.
O
n November 16, 2021, the City Council approved the City of Burbank’s participation in the CWWAPP. Through this program, the city provided $597,004.79 in bill credits to approximately 2,169 water and wastewater customers.
WATER AND
POWER
Sean Aquino
Arineh Sarkissian
2 On July 10, 2023, Governor Newsom signed a budget trailer bill expanding the arrearages program. This new Extended CWWAPP extends the COVID r elief period to December 31, 2022. The new Extended CWWAPP will include both water and wastewater debt from residential and commercial customers.
DISCUSSION
The State Water Board has received $600 million appropriated by the Budget Act of 2021 (Senate Bill 129) and the Budget Act of 2023 (Assembly Bill 102) from the Coronavirus State Fiscal Recovery Fund, established by the American Rescue Plan Act (ARPA) of 2021. These dollars are the remaining funds after the implementation of the original Water and Wastewater Arrearages Programs.
The Extended CWWAPP program provides funds to residential and commercial water and wastewater accounts. Below are the program phases and due dates.
1) Application – Utilities may submit an application for funding request; the application period will be open from November 1, 2023 – January 1, 2024, for 60 days.
2) Benefit Delivery – Utilities will be responsible for disbursing benefits to eligible customers within 60 days of receiving payment from the Extended CWWAPP. 3) Report – Utilities that receive funds through Extended CWWAPP are responsible for submitting a report to the State Water Board on the total amount credited, the number of customers enrolled in a payment arrangement, and any administrative costs within 6 months of receiving Extended CWWAPP funding.
Program Requirements:
Utilities that participate in the Extended CWWAPP must:
• Waive customer late fees for any arrearages accrued during the COVID -19 pandemic bill relief period in their entirety;
• Allocate payments as bill credits to customer accounts within 60 days of receiving payment;
• Offer to enroll customers with remaining debt into a payment plan by direct notification to each customer;
• Allow customers 30 days to enroll in a payment plan; and • Not discontinue water service until the customer defaults on the payment plan or misses the deadline to enroll in the payment plan.
BWP is able to meet the program requirements and desires City Council adoption of this resolution so it may apply for the Extended CWWAPP funding. The BWP Board has reviewed this item and recommends that the City Council adopt this resolution.
ENVIRONMENTAL REVIEW
“The creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment ” are not projects under the California Environmental Quality Act (CEQA). (14 CCR § 15378(b)(4).) This activity 3 involves applying for and adm inistering governmental funding. As a result, no further environmental review is required.
FISCAL IMPACT
Funding via the Extended CWWAPP will reduce unpaid past-due balances for Burbank customers and reduce cost impacts on other ratepayers. The current total water and wastewater debt beyond 91 days past due is $125,906. If approved, staff will review all accounts to determine program eligibility.
CONCLUSION
Staff recommends that the City Council approve, by resolution, the filing of the application for the Extended CWWAPP , authorize the BWP General Manager to participate and execute any future applications and to apply for credits from funds received from the California Water Board, and allow BWP to make direct payment assistance via bill credits to residential and commercial ratepayers with outstanding balances due to the COVID - 19 pandemic.
ATTACHMENTS
Attachment 1 – Resolution