Sunset COVID-19 pandemic procedures — CleanPowerSF Sfpuc Commission, November 12, 2024

Customer Assistance Program Update
& Request to End COVID Moratorium
November 12, 2024
Deidre Andrus, Customer Services Bureau Director
1 Outline
• Customer Assistance Program (CAP) Update
• Moratorium Timeline
• Arrearage Financial Impact
• Proposed Resumption Timeline
• Extenuating Circumstances Exemption
2 Customer Assistance Program (CAP)
Update
• Income verification required for enrollment
• Post Enrollment Verification – Crowe LLP selected as vendor • Denial Letters in Customer’s Preferred Language - Implemented in August 2024 • 3 Year Dedicated Customer Assistance Program Administrator  Financed through nonrevenue funds
 Data focused strategy
 Explore additional support for vulnerable populations  Federal, State, Local
 Develop nonprofit partnerships
 Find and align customers with available resources
 Design programs for
 Seniors
 Veterans
3 Fiscal Year Total $ Discounts Monthly Average Average Accounts
FY 22/23 $2,948,925.26 $245,743.77 6,100
FY 23/24 $4,760,377.83 $396,698.15 6,759
FY 24/25 YTD $875,184.91 $437,592.46 6,794
4 Moratorium Timeline
• Updated the discontinuation of water service policy per the requirement of the California Health and Safety
Code Section 116900
• Section 116900 was adopted by Commission
Resolution No 19-0237, December 10, 2019
• Suspended March 2020
• Request To Return To Full Resumption By January
2025
Financial Impact - Arrearages
5 Timeline for Resumption of Collections
Action Timeline Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Shut off avoidance
campaign outbound
calls
July -
September
Temp staff conducted
outreach to delinquent
customers
Communication’s
Outreach
Campaigns
July -
December Targeted Commercial and Residential Outreach
Resume collection
for Commercial
customers
September
onward Measured Resumption - 250 Accounts Monthly
Resume collection
for Residential
Multiple customers
over $25K and over
90 days past due
Measured
Resumption
Resume collection
for Residential
customers
January
2025
onward
Measured Resumption - 250 Accounts Monthly
Resume LPC July 2025 Resume
LPC
6 Extenuating Circumstances
Exemption Summary
• Commission adopted resolution 23-0074 to establish rules to temporarily exempt rules for residential single customers with extenuating circumstances from collection activities which include the shut-off of water service and the assessment of a lien on the property • Eligible household income should be between 51% and 80% of Area Median Income
• Once approved, the customer will be exempt from shut-off of water services or lien assessment on the property for six months 7 Extenuating circumstance Include
Death of spouse, partner, or a family member
Divorce
Loss of income or unemployment
Disability or injury
Medical treatment expenses
Other
Summary
• Restore pre pandemic collection procedures
including shut-offs and liens
• Establish $100 minimum account balance for
shut off or lien
• Establish exemptions for shut off and liens
• Customers enrolled in CAP Program
• Customers with Extenuating Circumstances
8 THANK YOU
9 AGENDA ITEM
Public Utilities Commission
City and County of San Francisco

DEPARTMENT Financial Services AGENDA NO. 13
MEETING DATE November 12, 2024

Calendar: Regular Calendar
Project Manager: Deidre Andrus

Sunset COVID-19 pandemic procedures for customer bill collection and delinquency actions and amend shutoff and lien exemptions for qualifying water and sewer customers

Summary of
Proposed
Commission Action:

Sunset COVID-19 pandemic procedures for water and sewer customer bill collection and delinquency actions, and resume normal business practices for shutoffs, liens, and fines; amend wastewater and water shutoff and lien policies to provide exemptions, subject to limitations, to (1) customers with an outstanding bill balance of $100 or less, (2) customers enrolled in the Customer Assistance Program, and (3) customers within defined Area Mean Income limits who qualify for extenuating circumstances.

Background:

On March 13, 2020, as directed by Section 2 of the Mayor’s Second Supplement to Mayoral Proclamation Declaring the Existence of a Local Emergency Dated February 25, 2020, and in response to the COVID-19 pandemic, the San Francisco Public Utilities Commission (SFPUC) first suspended shutoffs of water and sewer service and prohibited the imposition of late payment penalties, fees, or charges (Shutoffs, Liens, and Fines Moratorium).

Between 2020 and 2023, through a series of resolutions, this Commission periodically extended and modified the Temporary Emergency Customer Assistance Program (E-CAP), and Shutoffs, Liens, and Fines Moratorium as follows:

• On May 26, 2020, by Resolution No. 20-0099, this Commission first authorized the E-CAP for residential and commercial ratepayers. E-CAP provided the same levels of discounts as the Customer Assistance Program (CAP) (15 percent discount on water charges, 35 percent discount on wastewater charges), but was extended to be available to any single-family residential ratepayer with household income below 200% of the Area
Median Income (AMI) experiencing a loss of income due to COVID-19 or stay-at-home orders.

Agenda Title: Sunset COVID-19 pandemic procedures for customer bill collection and delinquency actions and amend shutoff and lien exemptions for qualifying water and sewer customers
Commission Meeting Date: November 12, 2024
Page: 2

• On July 28, 2020, by Resolution No. 20-0162, this Commission extended the Shutoffs, Liens, and Fines Moratorium through January 15, 2021.
• On August 25, 2020, by Resolution No. 20-0185, this
Commission extended the E-CAP through December 31, 2020. • On December 8, 2020, by Resolution No. 20-0238, this
Commission extended the E-CAP through June 30, 2021.
• On April 27, 2021, by Resolution No. 21-0063, this Commission extended the E-CAP and the Shutoffs, Liens, and Fines
Moratorium through March 31, 2022.
• On February 22, 2022, by Resolution Nos. 22-0043 and 22- 0044, this Commission authorized the General Manager to make changes to the CAP to incorporate practices from E-CAP, and extended the Shutoffs, Liens, and Fines Moratorium through August 31, 2022.
• On September 13, 2022, by Resolution No. 22-0157, this Commission extended the Shutoffs, Liens, and Fines
Moratorium through June 30, 2023.
• On April 11, 2023, by Resolution No. 23-0074, this Commission approved an increase of the maximum income eligibility for the CAP to 50% AMI. This Commission further approved
exemptions from disconnections of water and sewer service and liens due to unpaid bills for households enrolled in the CAP, and for customers who fall between 51 to 80% of AMI who
experience extenuating circumstances.

Resolution No. 23-0074 further directed that the water and sewer shutoff and lien exemptions set forth in that resolution would remain in place for at minimum one year, and until the General Manager or his designee returned to this Commission to recommend continuing or amending these policies. Staff are now therefore proposing amendments to the shutoff and lien exemptions as set forth in Resolution No. 23- 0074.

Fiscal Impact
To date, 8,800 accounts have accrued and unpaid water and/or sewer bills totaling, in aggregate $20 million.

Responses to the COVID-19 pandemic, including the Shutoffs, Liens, and Fines Moratorium, while necessary for a time, are now affecting the financial success of the Water and Wastewater Enterprises. Normalizing ratepayer payment patterns and timely payment for services delivered is key for these two enterprises.

Ongoing risks and potential challenges arising from continuing the Shutoffs, Liens, and Fines Moratorium in its current form may include a variety of financial and service impacts, including revenue shortfalls from unpaid bills; deferred maintenance and delayed projects; decreased ability to address the needs of vulnerable water customers and their neighborhoods; and, higher future water rates.

Returning to normal, pre-COVID-19 collection activities will bolster the fiscal viability of the SFPUC. This revenue will support utility services to ratepayers across both enterprises. Ensuring the financial viability of SFPUC is crucial for maintaining reliable service and investing in infrastructure. At the same time, the SFPUC seeks to support all ratepayers and acknowledges the needs of vulnerable populations.

Public Hearing Notice
Pursuant to Charter Section 4.104, Staff posted a Revised Notice of Public Hearing on the SFPUC and City’s website and at the San Francisco Public Library on October 31, 2024. SFPUC Staff further caused the Notice of Public Hearing to be published in the official newspaper of the City and County of San Francisco.

Proposed
Amendments:

Staff proposes the following:
(1) Restore pre-COVID-19 pandemic collection procedures, including authority to discontinue water service for non- payment of water bills more than 60 days past due;
(2) Establish the minimum balance for a shutoff or an assessment of a lien to a balance of greater than $100, including by adding Rule 9, subdivision (a) to Section D for the Rules and
Regulations Governing Water Services (Water Service
Regulations);
(3) Exempt from shutoffs and liens due to nonpayment any customer who is either (a) actively enrolled in CAP, or (b) who lives in a household with incomes between 51% and 80% AMI and who demonstrate they qualify for one or more listed extenuating circumstances, including by adding Rule 9,
subdivisions (b) and (c) to Section D of the Water Service Regulations; and
(4) Add Rule 9, subdivisions (d) and (e), to the Water Service Regulations to confirm that Rule 9 is in addition to, and not exclusive of, all other SFPUC policies and regulations
governing collections, shutoffs, and discontinuations, and that Rule 9 shall govern in the event of a conflict, and that customers remain responsible for unpaid bills notwithstanding their qualifying for an exemption.

These changes may go into effect immediately at the discretion of the General Manager and must become effective no later than January 1, 2025.

Attachment: Proposed Amendments to Revised Section D of the Rules and Regulations Governing Water Service to Customers

Recommendation: SFPUC Staff recommends that the Commission adopt the attached Resolution.

PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.:

WHEREAS, The COVID-19 pandemic created an emergency that necessitated the San Francisco Public Utilities Commission (SFPUC) to assist ratepayers suffering from the devastating economic impact of the pandemic; and

WHEREAS, Per Section 2 of the March 13, 2020, Mayor’s Second Supplement to Mayoral Proclamation Declaring the Existence of a Local Emergency Dated February 25, 2020, SFPUC suspended shutoffs of water service and prohibited the imposition of late payment penalties, fees, or charges (Shutoffs, Liens, and Fines Moratorium); and

WHEREAS, This Commission, through Resolution Nos. 20-0099, 20-0162, 20-0185, 20- 0238, 21-0063, 22-0043, 22-0044, 22-0157, and 23-0074, continued to address the impact of the COVID-19 emergency on SFPUC ratepayers and approved and extended the Shutoffs, Liens, and Fines Moratorium; and;

WHEREAS, More than four years have passed since the SFPUC initially implemented the Shutoffs, Liens, and Fines Moratorium; and

WHEREAS, SFPUC currently has approximately 8,800 accounts with accrued and unpaid water and/or wastewater bills totaling, in aggregate, $20 million; and

WHEREAS, All state and federal programs that provided COVID-19 pandemic related arrearage relief have ended; and

WHEREAS, SFPUC S taff recommend that SFPUC amend its policies regarding collections and disconnections of water and sewer service and resume its normal pre-pandemic collections and discontinuation of service policies; and

WHEREAS, Pursuant to Charter Section 4.104, a revised notice of public hearing was posted on the SFPUC and San Francisco’s website and at the San Francisco Main Library on October 31, 2024, and published newspaper notice on November 6, 2024; now, therefore, be it,

RESOLVED, This Commission hereby sunset any COVID-19 pandemic procedures still in effect regarding water and sewer customer bill collection and delinquency actions, including the Shutoffs, Liens, and Fines Moratorium; and be it

FURTHER RESOLVED, That, effective January 1, 2025, or at a sooner date at the discretion of the General Manager, this Commission directs the General Manager to resume normal collection and discontinuation of service practices against non -exempt water and sewer customers; and be it

FURTHER RESOLVED, T his Commission hereby modifies the exemptions set forth in Resolution No. 23- 0074, dated April 11, 2023, as follows: (1) establish a minimum account balance of over $100 for SFPUC to proceed with lien or discontinuation of service proceedings; (2) exempt from lien and discontinuation of service proceedings accounts enrolled in the Customer Assistance Program (CAP), but that any such acc ount that is delinquent for more than one year shall only continue to qualify for this exemption if the customer enters into and remains current on an SFPUC -approved repayment plan; ( 3) exempt for six months from lien, shutoff, or other discontinuation proceedings any account for a customer between 51% and 80% of Area Median Income (AMI) where such customer demonstrates the customer qualifies for an extenuating circumstances exemption, further subject to a one -time six-month extension if the customer can demonstrate they qualify for a continuing extenuating circumstances exemption; and (4) that any customer who qualifies for an exemption remains responsible for any outstanding and unpaid balance on their account, inclusive of any unpaid account balance that accrues while an exemption is in effect; and be it

FURTHER RESOLVED, This Commission amends Section D of the Rules and Regulations Governing Water Service to add Rule 9 to incorporate the discontinuation of service and lien exemption policy as set forth in this Resolution, effective January 1, 2025, or at a sooner date at the discretion of the General Manager.

I hereby certify that the foregoing was adopted by the Public Utilities Commission at its meeting of November 12, 2024.

Director of Commission Affairs
San Francisco Public Utilities Commission

ATTACHMENT
[Proposed] Amendments to Revised Section D of the
Rules and Regulations Governing Water Service to
Customers

(additions in underline)

REVISED SECTION D – METER READING, BILLING

AND COLLECTION

Rule 1.

Billing Periods

Under ordinary conditions meters will be read either monthly or bi-monthly as determined by the Department on approximately the same day of the month and bills will be issued showing the period covered by the meter readings, the quantity of water delivered and the total charge for the service rendered. Bills will also be rendered upon termination of service.

Service periods up to 40 days will be considered as one month and those up to 70 days will be considered as two months when computing charges.

Rule 2.

Billing for Two or More Meters

For the purpose of making charges, all meters will be billed separately, and the readings will not be combined except that where the Department shall, for operating necessity, install two or more meters in place of one meter, then the readings of such meters will be combined for billing purposes.

Where the Department, for operating necessity, decides to supply a customer taking water for wholesale through more than one connection at different points on the same transmission main

instead of at one point, the readings of the meters at the several connections may be combined for billing purposes. Such
combinations will not be made unless the water is for use within the limits of a single municipality or well-defined community and the Department’s system is the sole source of supply, and will be limited to three in number each not less than four inches in size.

Rule 3.

Size of Meter for Billing

The scheduled rate for service charge based on the size of the meter shall apply to disc or other displacement type meters, and to compound meters. Where current, velocity or magnetic meters are installed, the service charge shall be based on the size of compound meter or meters of equivalent delivery capacity.

Rule 4.

Presentation and Payment of Bills

Unless the applicant specifies otherwise, bills will be mailed to the premises.

Bills are due and payable on presentation, i.e., when mailed or upon delivery in any manner and become delinquent fifteen days thereafter. Service may be discontinued for non-payment of a delinquent bill or for any other infraction of the rules.

Discontinuation of residential water service for nonpayment shall be conducted in accordance with the SFPUC’s “Policy on
Discontinuation of Residential Water Service for Nonpayment,” a copy of which shall be available on the SFPUC’s website.

(Rule as amended December 10, 2019. Resolution No. 19-0237)

Rule 5.

Proper Charges – Time Limit

Any bill for water supplied or service rendered will be considered a proper charge unless protest is made to the Department within fifteen (15) days after presentation.

In the event that a customer receives a notice of discontinuation of residential water service for nonpayment, the customer may contest or appeal a bill in accordance with the procedures set forth in the SFPUC’s “Policy on Discontinuation of Residential Water Service for Nonpayment,” a copy of which shall be available on the SFPUC’s website.

In case of dispute as to payment of a bill, the customer will be required to present the receipted bill, cancelled check or other evidence of payment.

The Department will, upon request of the customer or for other reason, make an inspection of the premises on account of apparently excessive bills. After the Department has made a complete inspection, no further inspection will be made for a period of six (6) months provided, however, the Department may order an inspection at any time if conditions warrant.

(Rule as amended on December 10, 2019. Resolution No. 19-0237)

Rule 6.

Allowances

The customer has sole control of the water delivered beyond the Department’s meter and the Department is not responsible for maintenance and repairs of the pipes and fixtures beyond the meter. In order to encourage prompt repairs of leaking pipes or fixtures the Department may, under certain conditions, grant allowances for apparently excessive bills resulting from leakage beyond the meter. All risk of loss beyond the point of delivery shall be borne by the customer, except as otherwise provided

herein.

a) Allowance may be granted only when claim has been received as provided in Rule of this Section and evidence clearly shows that the apparently excessive bill is due to
leaking pipes or fixtures and not wasteful use and then only when repairs have been promptly made and reported to the Department. The allowance, if granted, will be for not more than two billing periods including that in which the claim was made.

b) Allowance ordinarily may be granted on the basis of one-half of the excess delivery due to leakage but in the case of
concealed leaks in underground or unexposed pipes, full excess may be allowed.

c) Outside San Francisco no allowance will be made on account of leakage except when in the judgment of the Department exceptional conditions justify allowance and then only for concealed leaks in underground or unexposed pipes. In that event allowance may be granted based on from fifty to one hundred percent of the excess delivery. No allowance shall apply to customers taking water for wholesale.

The Department shall be the sole judge in determining the excess delivery due to leakage.

(Rule 6 as amended April 8, 1997. Resolution No. 97-0090)

Rule 7. Meter Tests

If the customer questions the accuracy of a meter the Department will, upon written request, test the meter. The customer should be present to witness such meter test.

If the customer requests a meter test, they will be charged for the first test and for any subsequent test within a 24-month

period. For applicable fees, refer to current Rates Schedules and Fees for Water, Power and Sewer Service (Schedule W-44).

If the meter is found to register more than two percent fast the testing fee, if deposited, will be returned together with any overcharge based on correct meter readings.

Such overcharge may be allowed for the twelve months next preceding the test or as much of the twelve months as the customer had been paying bills on the fast meter.

If the meter registers within the limit of error specified above, the testing fee, if deposited, will be applied by the Department to partially offset the costs of making the test.

Rule 8.

Non-Registering Meters

If a meter fails to register or to properly indicate the flow of water, a bill will be rendered on the basis of the average consumption of three preceding billing periods during which the meter was presumed to be functioning properly.

Bills rendered under the provisions of this rule will be subject to adjustment to give consideration to volume of business, seasonal demand, subsequent reading of a new meter, or other factors which may aid in making a proper charge.

Rule 9
Exemptions from Liens and Discontinuations of Service

a) A customer shall be exempt from discontinuation of service or lien proceedings so long as the outstanding balance on the customer’s water account remains less than or equal to $100.

b) Any account that is actively enrolled in the SFPUC’s Customer Assistance Program shall be exempt from discontinuation of service and lien proceedings. A customer’s water account that

has remained delinquent for more than one year shall no longer qualify for this exemption unless the customer enters into and remains current on an SFPUC-approved payment
plan.

c) A customer with income between 51% and 80% of current Area Median Income may qualify for a temporary exemption of up to six months from discontinuation of service or lien proceedings. A customer who seeks such an exemption shall submit to the SFPUC in writing a description of any
Extenuating Circumstances that the customer believes would qualify them for a temporary exemption. For purposes of this Rule 9, Extenuating Circumstances means death of a spouse, partner or family member; divorce; loss of income or
unemployment; disability or injury; medical treatment
expenses; or any other circumstances that materially impact the customer’s ability to pay the customer’s water bill in full.

Upon the expiration of a temporary exemption authorized under this subdivision (c), a customer may apply to SFPUC for a one-time extension of no more than six months by
submitting proof of continuing Extenuating Circumstances.

d) Any customer that obtains an exemption under this Rule 9 shall remain responsible to pay SFPUC any unpaid or
outstanding account balance, including any unpaid or
outstanding account balance that may accrue while the
exemption is in effect.

e) The exemptions in this Rule 9 are in addition to, and not exclusive of, all other SFPUC policies, rules, and regulations regarding collections and discontinuations of service, including, but not limited to SFPUC’s Policy on Discontinuation of Residential Water Service for Nonpayment. This Rule 9 shall govern in the event there is a conflict between this Rule 9 and any other SFPUC policy, rule, or regulation.

CleanPowerSF Sfpuc CommissionNovember 12, 2024

CleanPowerSF Sfpuc Commission
November 12, 2024