Agenda Report
Fullerton City Council
MEETING DATE: FEBRUARY 15, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
FROM: JEFFREY W. COLLIER, ACTING CITY MANAGER
PREPARED BY: MEG MCWADE, PUBLIC WORKS DIRECTOR
ELLIS CHANG, DIRECTOR OF ADMINISTRATIVE SERVICES
RAMONA CASTANEDA, REVENUE MANAGER
CINNDY BARRIOS, BUDGET ANALYST II
SUBJECT: CALIFORNIA WATER AND WASTEWATER ARREARAGES PAYMENT PROGRAM GRANT
SUMMARY
Request to accept and appropriate $150,417.64 in grant funds from the California State Water Resources Control Board for unpaid water utility customer debt accrued as a result of the COVID-19 pandemic.
RECOMMENDATION
Ratify grant application with the California State Water Resources Control Board.
Accept and appropriate receipt and uses of $150,417.64 grant award.
Authorize City Manager, or designee, to execute agreement and sign all documents related to the grant.
BUDGET POLICY PRIORITY STATEMENT
This item matches the following Budget Policy Priority Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
No matching funds required. Staff will adjust the Water Fund (Fund 44) budget by grant award amount.
The grant will provide financial relief to approximately 337 residential accounts and 27 eligible commercial accounts in arrears between March 4, 2020 through June 15, 2021, as specified in the grant application. As a result, the City of Fullerton will credit eligible customer accounts in the amount of the water arrearage during the specified time-period.
DISCUSSION
The COVID-19 pandemic has made it difficult for many Californians to pay their bills due to job loss and other hardships. As part of the state’s efforts to help Californians recover from the pandemic, the State Water Resources Control Board (State Water Board) offered financial relief to wastewater agencies for unpaid customer debt accrued between March 4, 2020 and June 15, 2021. The program provides funding to community water systems, wastewater treatment providers and wastewater billing entities. The funding is part of the California Water and Wastewater Arrearages Payment Program. The funding comes from the federal American Rescue Plan Act of 2021 authorized by Governor Newsom and the California State Legislature.
The City submitted the grant application by the December 6, 2021 due date, identifying 337 residential accounts and 37 commercial accounts as eligible per the grant application requirements. The grant amount equals $146,036.54 plus $4,381.10 of allowable administrative costs for a total of $150,417.64. Customer accounts had to be in arrears between March 4, 2020 and June 5, 2021. Delinquency fee / charges were not eligible. Once the City receives the grant funds, in approximately four to six weeks, the City will notify eligible customers and apply a credit to their accounts.
The grant only applies to water charges on the eligible customer delinquent utility bills which also includes sewer, sanitation and trash charges. Because the grant does not cover sewer, sanitation and trash charges, these charges remain outstanding.
Attachments:
Attachment 1 – Water Arrearages Disbursement Request Form California Water and Wastewater Arrearages Grant
February 15, 2022 - Page 2