AGENDA
MUNICIPAL SERVICES COMMITTEE
MEETING NOTICE
JUNE 13, 2023
PUBLIC MEETING 4:00 P.M.
MEMBERS
Felicia Williams, Chair/Vice Mayor, District 2
Tyron Hampton, Councilmember, District 1
Justin Jones, Councilmember, District 3
Jason Lyon, Councilmember, District 7
STAFF
Sidney Jackson, General Manager
Lisa Hosey, Assistant City Attorney
Garrett Stevenson, Recording Secretary
MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.
In compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device.
Language translation services are available for this meeting by calling (626) 744-4124 at least 24 hours in advance.
Habrá servicio de interpretación disponible para éstas juntas llamando al (626) 744-4124 por lo menos con 24 horas de anticipación.
Items on the agenda may not be called in order listed.
Agendas and supporting documents are available on the Internet at http://www.cityofpasadena.net/commissions/city-council-municipal-services-committee/ Materials related to an item on this Agenda submitted to the Municipal Services Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”.
PUBLIC COMMENT AT THE MUNICIPAL SERVICES COMMITTEE MEETING FOR JUNE 13, 2023 AT 4:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.
Link to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy
TO VIEW A LIVE STREAM OF THE MEETING:
http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND
WWW.PASADENAMEDIA.ORG
In order to facilitate public participation at meetings the City will accept public comment in the following manner:
1. Whether participating in-person or virtually at the meeting, members of the public may provide public comment by submitting a speaker card prior to the start of public comment on that item, at the following webpage:
www.cityofpasadena.net/commissions/public-comment/
If a public comment speaker wishes to speak on more than one agenda item, please indicate which items on the online form (multiple item speakers will be handled according to the process posted on the agenda and as specified in the City meeting policy). Public comments are limited to 3 minutes each, and the Chair and Committee may limit this time if reasonable under the circumstances.
2. In-person Meeting Participation: Complete an online speaker card at the following website: www.cityofpasadena.net/commissions/public-comment/ After submitting a public speaker card, members of the public may attend the meeting in-person by coming to the Pasadena City Council Chamber, Room S249 at City Hall at the date and start-time of the posted meeting.
Virtual Meeting Participation: For virtual participants, you may attend by connecting to the meeting using a computer, other electronic device, or by telephone. Please review the agenda to identify the published start time for the meeting and connect to the meeting just prior to, or at the start of the meeting.
To participate in public comment for an item and to be recognized to speak, it is required that the speaker login to the meeting using the same name or telephone number used on the Speaker Card form. This will allow City staff to locate and promote the speaker into the meeting when it is time for their public comment.
Participants’ phone calls to the Committee meeting will be recorded as part of the Committee meeting. By staying on the line and making public comment during the Committee meeting by phone, you are agreeing to have your phone call recorded. Following is the connectivity information for virtual participation:
Computer or electronic devices, join the meeting at: cityofpasadena.net/cczoom Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446
3. Speaker Card Help Line: If a public comment speaker needs assistance in completing a speaker card, please call the City Clerk’s Office at: (626) 744-4124. Help line will open 30 minutes prior to the posted start time of the meeting.
4. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:
Correspondence will be forwarded to the Committee prior to the start of the meeting, posted online, and made part of the legislative record for the item.
LIVESTREAM WITH CAPTIONING IS AVAILABLE AT WWW.PASADENAMEDIA.ORG, AND ALSO AT WWW.CITYOFPASADENA.NET/COMMISSIONS/AGENDAS,
IF YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION PURSUANT TO THE
AMERICANS WITH DISABILITIES ACT
BECAUSE YOU ARE UNABLE TO PARTICIPATE ELECTRONICALLY AS SET FORTH ABOVE, CONTACT THE CITY CLERK’S OFFICE
AS SOON AS POSSIBLE AT (626) 744-4124 OR [email protected].
CITY OF PASADENA
MEETING OF
THE MUNICIPAL SERVICES COMMITTEE
JUNE 13, 2023
PUBLIC MEETING: 4:00 PM
PASADENA CITY HALL, COUNCIL CHAMBER
100 NORTH GARFIELD AVENUE, ROOM S249
NOTICE IS HEREBY GIVEN that the regular meeting of the Municipal Services Committee will be held on Tuesday, June 13, 2023, at 4:00 p.m., to discuss matters on the attached agenda.
I HEREBY CERTIFY that this agenda in its entirety, was posted on the Internet at https://www.cityofpasadena.net/commissions/city-council-municipal-services-committee/ and on the
Council Chamber Bulletin Board, Room S249, and the Bulletin Board in the rotunda area; City Hall, 100 North Garfield Avenue, this June 8, 2023 by 6:30 p.m. and that copies hereof were faxed, emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution herein below.
Susana Castro
DISTRIBUTION:
MSC Committee Members Central Library General Manager Pasadena Weekly City Council City Clerk Director of Planning and Permitting Pasadena Star-News City Manager Director of Public Works Los Angeles Times Pasadena Now City Attorney Public Information Officer La Opinion Pasadena Journal
In compliance with the Americans with Disabilities Act of 1990, listening assistive devices are available from the City Clerk's Office with a 24-hour advance notice.
Please call (626) 744-4124 to request use of a listening device. Language translation services may be requested with 24-hour advance notice.
Habra servicio de interpretacion disponible para estas juntas llamando al (626) 744-4124 por lo menos con 24 horas de anticipación.
MEETING AGENDA
MUNICIPAL SERVICES COMMITTEE
JUNE 13, 2023
Public Meeting: 4:00 P.M.
Council Chamber, Pasadena
City Hall 100 North Garfield Avenue, Room S249
APPROVAL OF MINUTES
1. THE FEDERAL INFLATION REDUCTION ACT AND THE INFRASTRUCTURE
INVESTMENT AND JOBS ACT
2. PASADENA WATER AND POWER CREDIT AND COLLECTIONS UPDATE TO
RESIDENTIAL, COMMERCIAL AND INDUSTRIAL ACCOUNTS
PUBLIC MEETING - 4:00 P.M.
ROLL CALL
PUBLIC COMMENT
INFORMATION ONLY
ADJOURN
NEW BUSINESS
1 ITEM #1
2 P ASADENA WATER AND POWER
MEMORANDUM
June 13, 2023
To: Municipal Services Committee
From: Sidney Jackson
General Manager
Subject: The Federal Inflation Reduction Act and the Infrastructure Investment and Jobs Act
This report is for information only.
BACKGROUND:
This report provides an informational update to the Municipal Services Committee (“MSC”) about funding opportunities available through the federal Inflation Reduction Act (“IRA”) and the Infrastructure Investment and Jobs Act (“IIJA”).
In August 2022, President Biden signed the IRA, which provides $500 billion in new spending and tax breaks that aim to boost clean energy, reduce healthcare costs, and increase tax revenues. Of this amount, the IRA includes $369 billion toward, “energy security and climate change.” Much of the IRA climate-related funding is in the form of tax credits and financing for businesses and individuals, and smaller amounts are available as grants or direct payments to governments and other entities.
The IIJA (also known as the bi-partisan infrastructure bill) was signed into law in November 2021, and provides $1 trillion in investments for broadband, rail and transit, clean energy, and water. Of this amount, the IIJA includes $77.5 billion for power and electric vehicle infrastructure.
The U.S. Department of Energy estimates the IRA, in tandem with the IIJA, will help the nation achieve an estimated 40% reduction in gas emissions by 2030 (compared to 2005 levels).
Federal advocacy consultant, The Ferguson Group will present an overview of each law as it relates to funding opportunities specific to Pasadena Water and Power.
3 Federal Funding Overview: Inflation Reduction Act
and Infrastructure Investments & Jobs Act
Chris Kearney
The Ferguson Group, Washington, D.C.
City of Pasadena
Municipal Services Committee Meeting
June 13, 2023
Background
Top Biden Administration Priority: Ambitious “Build Back Better (BBB) Agenda”
Hard Infrastructure Overhaul/ Social Safety Net
Expansion/Clean Energy Transformation
Executive Branch Actions and 2-Part Legislative Initiative 4 Administration and Congressional Action
Nov 2021 - $1 trillion Infrastructure Investment and Jobs Act (IIJA) signed into law.
August 2022 - Senate and House passed the $900 billion Inflation Reduction Act (IRA), the legislative “successor” to BBB IRA is a scaled-back version of BBB
Slimmed down to approximately $1 trillion: environmental spending provisions; $300+ billion renewable energy tax credits
IIJA – Climate Provision Examples
• Administration’s goal is 500,000 EV charging stations nationwide. • New $7.5 billion annual EV infrastructure funding established. • Program example: $1.2 billion Charging and Fueling Infrastructure Grants. • 80-20 federal/recipient match, to be used by state or local government to establish EV charging infrastructure.
• Funding though existing programs (Bureau of reclamation & US EPA) • WaterSMART water and energy efficiency grants
• Drinking water and clean water state revolving loan funds 5 IRA – Energy Provisions
Approximately $500 billion in guaranteed financial assistance Not subject to annual appropriations
Grants, loans, tax credits (lionshare of assistance), and technical assistance Primary agencies delivering assistance include DOE, DOT, and Treasury Intended recipients - Individuals, Non-Profits, States, Local Governments, and Tribes. Focus - Achieving President’s Goal of a Decarbonized Economy by 2050 Energy Tax Credits: A “Game Changer” for public power After 20-year effort, Public Power and Rural Co-ops now eligible via “Direct Pay” Among new uses: energy credits expanded to include battery storage and hydrogen IRA Energy Credits
Treasury is actively working on rulemakings, guidance etc. The most critical proposed rulemaking – on “direct pay” expected this Spring Lesser guidance on domestic content and unionized labor “bonus” elements associated with eligible projects have been released.
Many, many, questions – and concerns – remain regarding implementation of the direct pay option.
Administration’s goal is to finalize direct pay requirements by summer 2023. 6 IRA –Water Provisions
$550 million over 10 years for reclamation domestic water supply projects All funding is designated to support activities in “disadvantaged communities.” $4 billion over 5 years for drought mitigation in the reclamation states Priority given to the Colorado River Basin and other basins experiencing similar levels of long-term drought.
$1 billion over 6 years to improve energy or water efficiency or climate resilience of affordable housing
Intended for owners of public or affordable housing properties PWP Opportunities
Charging & Fueling Infrastructure (CFI) Discretionary Grant Program Potential regional collaboration with SCPPA agencies – In process/pending Energy Efficiency & Conservation Block Grant
Additional public charging infrastructure in Pasadena parks – In process/pending FEMA Hazard Mitigation Grant Program
Regional drought resiliency – In process/pending
Bureau of Reclamation
WaterSMART and Energy Efficiency Program –Ongoing opportunities Direct Pay-Energy Credits
Renewable energy investment and/or production tax credits – Future consideration Grid Innovation & Resiliency
Battery energy storage systems –Future consideration
Smart Grids
Advanced Metering Infrastructure (AMI) – Future consideration 7 Implementation – Administration Priority
• President Biden and team are laser-focused on achieving climate goals IIJA and IRA are directly tied to meeting them.
• White House IRA Implementation Office and Climate Policy Office have been established.
• They are led and staffed by experienced DC “insiders” who know how government works and how to break down bureaucratic hurdles. • Hundreds of new staff hired across key agencies to develop regulations and guidance.
Thank you.
8 ITEM #2
9 P ASADENA WATER AND POWER
MEMORANDUM
June 13, 2023
To: Municipal Services Committee
From: Sidney Jackson
General Manager
Subject: Pasadena Water and Power Credit and Collections Update to Residential, Commercial, and Industrial Accounts
This memorandum is for information only and provides an update on the resumption of the collection of late fees and service interruptions for non-p ayment which were suspended during the COVID-19 pandemic.
BACKGROUND:
On April 12, 2021, the City Council authorized the resumption of late fees and service interruptions for n on-payment. Furthermore , t he California Arrearage Payment Program required a moratorium of late fees and service interruptions for non-payment for 90 days after t he last c redit was posted to customer accounts. The last of these credits were applied to customer accounts in late February 2023.
Resumption of collection efforts will be performed under internal controls whereby all customers with past due balances will be allowed to enroll in payment arrangements or restart broken payment arrangements. In addition, late fees will only apply to b ills generated on or after July 1, 2023, and will not be applied to prior balances.
Due to the volume of customers currently in arrears, support staffing levels will be augmented to ensure ample staff is available to assist customers. The P asadena Water and Power (“PWP”) will evaluate the volume of customer calls and may extend the Call Center hours if necessary . Additional considerations include not performing service interruptions for non- payment on Fridays and the worki ng day before a holiday.
A pr oactive communication campaign will inform customers of the availability of assistance program s, payment ex tensions, and long- term payment plans. Outreach will include direct mail, social media, City Manager Newsletter, PW P e-newsletters (residential and co mmercial), bill messa ges, web announcements, and coordinat ion with the City Council District Liaisons.
10 PWP Credit and Collections Update to Residential, Commercial, and Industrial Accounts June 13, 2023
PWP provides billing services for all City utility services, including refuse, sewer, electric, and water utilities, and applicable taxes , including the Utility Underground Surtax and utility user’ s tax. Due to the COVID-19 pandemic, many utility customers were f inancially impacted by the loss of work, in come, sales revenues, and local health emergency orders to close or reduce business operations.
In tw o separate actions on March 17, 2020, and April 6, 2020, the Pasadena City Council authorized the following actions to provide financial relief to PWP customers:
• Refund the past two years of Utility Underground Surtax collections totaling approximately $11.4 million
• S uspend collection of Utility Underground Surtax for six months totaling approximately $2 million
• Suspend collection of late fees and service interruptions for non-payment
The State of California ran several federally funded programs to provide a one -time credit relief for eligible residential customers’ past -due energy utility bills that increased during the COVID -19 pandemic. PWP actively sought out, applied for, and received funding from the following programs:
Program Amount
California Arrearage Payment Program ("CAPP") $4.2M
California Water and Wastewater Arrearage Payment
Program (“CWWAPP”) Drinking Water Assistance $2.0M
California Water and Wastewater Arrearage Payment
Program (“CWWAPP”) Wastewater Assistance $35K
California Arrearage Payment Program ("CAPP") 2.0 $1.7M Housing is Key $1.0M
Total $8.9M
In addition to the S tate programs, PWP applied $2.7M in deposits on hand to both delinquent and non-delinquent utility account balances in April 2021. This served the dual purpose of reducing arrears and returning deposits to customers with g ood payment histories . In the past , t hese deposits were refunded to the customer upon request after a good payment history had been established or after the account was closed in good standing.
Despite the vit al State assistance, a rrearage amounts continue to r ise. The total arrearage amount for customers with debt over 120 days climbed to $8. 8M as opposed to an average of less than $100K during pre- pandemic levels. However, low- income customers are only a small portion of the total arrearage. To remain fiscally viable, PWP must re sume late fees and service interruptions for non- payment. Given the arrearage balances , it could take over a year before a signif icant decrease is achieved.
11 Pasadena Water and Power
Pasadena Water and Power Credit and
Collections Update to Residential,
Commercial and Industrial Accounts
Municipal Services Committee
June 13, 2023
Pasadena Water and Power
Executive Summary
2 • Late fees and non-pay service interruptions suspended - March 2020 • State arrearage program funding applied to customers- $8.9M • Current arrearage amount 120+ days - $8.8M
> The 120+ day arrearage is typically under $100K pre-pandemic > Only a small portion of the arrearage is low-income
> Large/Key accounts maintained good payment histories
• Previous Council authorization to resume late fees and non-pay service interruptions – April 2021
> State energy programs required a 90-day moratorium on late fees and non-pay service interruptions once credits applied
• Long-term pay plans/arrangements available
• Onboarding and training are being conducted to have ample staff available to service customers
> Utilizing MASH employees for the Call Center
12 Pasadena Water and Power
State Arrearage Programs
• State arrearage program funding provided a one-time
credit applied to customer accounts - $8.9M
> Last of the credits were applied in late February 2023 > Total California Arrearage Payment Program (CAPP) - $4.2M Program for residential and commercial electric customers > CA Water & Wastewater Arrearage Payment Program (CWWAPP)- Drinking Water - $2M; Wastewater - $35K
Program for residential and commercial water customers > CAPP 2.0 - $1.7M
Program for only residential electric customers
> Housing is Key - $1M
Customers applied with the State for rent and utility assistance Utility assistance sent directly from the State to PWP 3 Pasadena Water and Power
PWP Actions
• Utility Underground Surtax refund for 2 years - $11.4M • Suspended collection of Utility Underground Surtax for 6 months - $2M
• Suspended all late fees effective March 2020
> Late fees typically collected and applied to the general fund - $1.1M annually
• Offer customers extended long-term payment plans
and one time payment extensions
> Payment plans created to date - 200
• Returned utility deposits to customers in good
standing - $2.7M
> Water deposit refunded - $0.4M
> Electric deposit refunded - $2.3M
4 13
Pasadena Water and Power
Receivables Over 120 Days
5 CAPP Electric $4.1M
CWWAPP Water $2.5M
CAPP 2.0 Electric
$1.7M
Deposit Returns
$2.7M
Suspension of Late
Fees and Shut-Offs
Pasadena Water and Power
6 2023
Today
Jun Jul Aug Sep Oct
Bill Generated
Jul 1
Late Fees Assessed
Aug 3
Send Final Notice of Service Interruption
Aug 18
Eligible for Power Service Interruption
Aug 23
Customer Postcard
Jun 14
Eligible for Water Commercial Service
Interruption
Aug 23
Eligible for Water Only Residential
Service Interruption
Oct 2
Send Final Notice of Service Interruption
for Residential Water Only
Sep 17
• Postcard to remind the customer of assistance programs and inform them of reinstatement of late fees and non-pay service interruption • Late fees apply to new charges on bills generated on or after July 1, 2023
Timeline
14 Pasadena Water and Power
Low-Income Customer Assistance
• EUAP low-income customers
• Cares - Age or disability qualification
• Cares Plus - Age or disability qualification for low-income customers at the lowest income levels
• Low-Income Household Energy Assistance Program (LIHEAP) > Federally funded program of a one-time payment to help pay heating or cooling bills
• Low-Income Household Water Assistance (LIHWAP)
> Limited time federally funded program of a one-time payment of up to $2,000
• Project APPLE
> Credit available once a year to customers eligible for non-pay service interruption
> Increased amount to $200 in April 2021
7 Pasadena Water and Power
Next Steps
• PWP will evaluate the volume of customer calls and
may extend the Call Center hours if necessary
• Service interruptions will not be performed on Fridays or days before a holiday
• Proactive communication campaign
> Customer postcard
> Bill messages
> Social media
> Direct calls to large/key accounts and customers with large debt 8 15