DATE:
April 18, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Mohamed Alaoui, Director of Public Works
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Execute The Sewer Service Charge Billing And Collection Agreement With East Bay Municipal Utility District (EBMUD) And Implement A Customer Assistance Program (CAP) For Certain Low-Income Residents Recommendation
Staff recommends that the City Council of the City of Emeryville adopt the above-titled resolution.
Background
In 1982, the City established sewer service charges for the use of sewer facilities owned and operated by the City (Resolution 82-137). Multiple renewals and versions of the agreement have resulted since that date, and most recently, in 2013, the City Council approved a new agreement (Agreement) for 10 years through June 2023 (Resolution 13-067) (Attachment A). This agreement permitted EBMUD to bill and collect the City’s charges for sewer services on behalf of the City. As part of this agreement, the City pays EBMUD for its administrative costs on a per-billing basis.
In 2021, EBMUD worked with the Public Works Department to submit a proposal to implement a Customer Assistance Program (CAP), based on EBMUD’s own existing CAP. This CAP provides assistance to low-income Emeryville residents with single family residential EBMUD account, by subsidizing a portion of their City sewer service charges. This program was approved by City Council on November 2, 2021, Resolution No. 21-118.
Discussion
The 2013 agreement, which expires in June 2023, is being proposed for renewal for another 10-year term with the CAP program added to the new agreement. The City benefits from EBMUD administering the CAP program because the Agency has the organization, experience, and staffing to perform the billing and to administer the CAP.
Fiscal Impact
Per the Billing and Collection Agreement, EBMUD bills bi-monthly single-family residential customers a flat fee on behalf of the City for Sewer Collection Services. From these collected fees, EBMUD deducts the amount owed by the City for administering the billing agreement. The amount deducted is $0.4545 per bill at a rate of approximately 30,000 bills per year which is equal to approximately $14,000. This annual cost is consistent with the historical costs of the current agreement. These funds are remitted to the City’s Sewer Services Charges Account (510/510/61150).
The General Fund (101), Public Works Department (4060), and Utilities (76000) account will be used to cover the discounted portion of the Emeryville CAP participants’ bill. This will be done through internally transferring funds from the General Fund Utilities Account (101/4060/76000) to the Sewer Services Charge Account (510/510/61150). CAP shall be implemented with no expenses charged to the City’s Sewer Fund.
Staff Communication with the Public
East Bay Municipal Utility District staff contacted the City and requested the City’s participation in a CAP on behalf of the City’s residents. There was no additional communication with the public regarding this item.
Conflict of Interest
None.
Conclusion
Staff recommends that the City Council adopt the above-titled resolution.
PREPARED BY: Nik J. Ignacio, Associate Civil Engineer
Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachments
Attachment A – 2013 Sewer Agency Charge and Billing Collection Agreement Attachment B – 1st Amendment approved by Resolution No. 21-118 Draft Resolution
Exhibit A – 2023-2033 Sewer Service Billing Agreement with EBMUD Exhibit B – Customer Assistance Program (CAP) Brochure
Renewal of the Sewer Service Charge Billing and Collection Agreement with East Bay Municipal Utility District (EBMUD) and Adoption of a Customer Assistance Program (CAP) City Council Meeting | April 18, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM