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RESTART UTILITY BILL REPAYMENT
PROGRAM
City Council
May 17, 2022
Riverside Public Utilities
RiversideCA.gov
2 1. COVID-19 Local Emergency Declared
a. City Declared an Emergency on March 17, 2020
b. Included direction to suspend utility shutoffs for all customers from the start of the statewide emergency for non-payment (effective, March 1, 2020)
c. The City cannot waive any payments
2. City Council on May 5, 2020
a. Approved ERAP for residential customers who had lost jobs or had wages reduced
b. Approved the concept of the Restart Program
3. City Council on October 6, 2020
a. Approved an increase in the ERAP customer credit from $250 to $400 b. Approved the Restart Program, and associated agreements
BACKGROUND
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3 4. July 12, 2021 - the Board of Public Utilities approved the Restart program updates including:
a. Repayment contracts for commercial customers only
b. Options for non-equal repayment schedules
5. August 3, 2021- City Council tabled the Restart Program discussion
a. At the meeting, it was discussed that in July 2021, the CA Legislature passed nearly $2 billion in funding to address statewide energy, water, and wastewater utility arrearages b. Staff reported an estimated total delinquency of $26,322,826
BACKGROUND
RiversideCA.gov
4 1. Duration of the impacts from the COVID-19 Pandemic have been prolonged
2. City has experienced significant increases in customer accounts receivable
a. A/R increased by 59% or $18 million from March 2020
to March 31, 2022
b. During the same period, delinquent accounts
receivable has increased 488% or $24 million
3. City Council’s delay to resume utility shut-offs allowed for customers to receive state funding for arrearages
PANDEMIC IMPACT
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5 CALIFORNIA ARREARAGE PAYMENT PROGRAMS
1. California Arrearage Payment Program ( CAPP), administered by the California Department of Community Services &
Development for funding electric utility customer arrearages.
2. On December 16, 2021, the following CAPP benefits were applied for RPU customers:
Account Type Number Of Accounts CAPP Benefit
Residential 11,148 $8,707,442
Low Income Residential 775 495,449
Commercial 676 1,873,165
Total 12,599 $11,076,056
RiversideCA.gov
6 CALIFORNIA ARREARAGE PAYMENT PROGRAMS
1. California Water and Wastewater Arrearage Management Program ( CWWAPP)i sf o r water/wastewater utility customer arrearages. The State Water Resources Control Board is
administrating these programs.
2. On December 22, 2021, the following CWWAPP Drinking Water benefits were applied for RPU customers:
Account Type Number Of Accounts CWWAPP Benefit
Residential 4,264 $1,757,642
Commercial 126 123,160
Administrative Costs 3% 63,440
Total 4,390 $1,944,242
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7 CALIFORNIA ARREARAGE PAYMENT PROGRAMS
1. California Water and Wastewater Arrearage Management Program ( CWWAPP)i sf o rw a t e r /wastewater utility customer arrearages. The State Water Resources Control Board is
administrating these programs.
2. On February 9, 2022, RPU applied for the following CWWAPP benefits on behalf of wastewater customers:
Account Type Number Of Accounts CWWAPP Benefit
Residential 8,132 $2,443,484
Commercial 99 108,053
Administrative Costs 3% 76,546
Total 8,231 $2,628,083
RiversideCA.gov
8 CALIFORNIA ARREARAGE PAYMENT PROGRAMS
1. The California Low-Income Household Water Assistance Program (LIHWAP) is administered by the California Department of Community Services & Development and is expect to start accepting applications in May 2022
2. This program provides financial assistance to low-income customers where qualified. Low-income households can apply to their Local Service Provider to receive a one-time credit (up to $2,000) on their water or wastewater bill
3. The Local Service Provider for RPU customer is Community Action Partnership of Riverside County.
4. RPU is participating in program to ensure access for our customers. 7 8
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9 TOTAL ACCOUNTS RECEIVABLE COMPARISON
As of March 31, 2022
0%
10%
20%
30%
40%
50%
60%
70%
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Mar 2020
Jun 2020
Sep 2020
Dec 2020
Mar 2021
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Delinquent Account Balance Total Amount Billed Delinquent as %Billed RiversideCA.gov
10 DELINQUENT ACTIVE RECEIVABLE CUSTOMERS
As of March 31, 2022
6,894
3,228
1,558
2,512
4,356 4,369
632
208
83 137
200 264
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
30 to 59 days 60 to 89 days 90 to 119 days 120 to 179
days
180 to 359
days
360+ days
Delinquent Balance
Customer Count
Residential Delinquent Accounts Commercial Delinquent Accounts Delinquent Balance 9 10
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11 AVERAGE ACCOUNT DELINQUENT BALANCE
As of March 31, 2022
$147 $281 $465 $704
$1,290
$2,179
$892
$2,131
$1,471 $1,731
$4,824
$5,461
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
30 to 59 days 60 to 89 days 90 to 119 days 120 to 179 days 180 to 359 days 360+ days
BASED ON THE OLDEST UNPAID BILL
Residential Avg Delinquent Balance Commercial Avg Delinquent Balance RiversideCA.gov
12 1. SHARE Sharing Households Assist Riverside Energy Program - an income- qualified program and provides emergency/deposit and monthly bill credit assistance.
2. ERAP Emergency Recovery Assistance P rogram - established in response to COVID-19, provides $400 bill credit assistance for residential customers whose incomes have been negatively impacted due to the pandemic.
3. ERA Emergency Rental Assistance Program - established through US Treasury funding to assist in paying past due rent and utilities to low- income residents (80% of area median income) whose incomes were negatively affected due to the pandemic. Program funds were exhausted April 16, 2021, now administered through United Lift.
CURRENT CUSTOMER BENEFIT PROGRAMS
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13 1. Customers that are currently
unable to pay their monthly utility
bills due to COVID-19 continue to
receive utility services
2. Restart Repayment Program
establishes the process to help
customers repay their bills as the
economy recovers from the
pandemic
RESTART REPAYMENT PROGRAM PURPOSE
RiversideCA.gov
14 As of October 6, 2020
The program will be offered at no
additional cost to the customer
and will ensure a customer’s credit
is not negatively impacted by late
bill payment. Restart agreements
will be at no additional cost and
no interest.
RECOMMENDED PROGRAM UPDATES
Recommendation
NO changes
RESTART – NO COST OR PENALTY
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15 As of October 6, 2020
RPU shall provide customers with a
6-month delay before their first
payment towards their outstanding
balance is due. Customers may sign
up for this program from the time that
City Council approves the agreement
through two months after RPU resumes
utility disconnections.
Recommended Update
RPU customers be provided with a
60-day delay from the end of the
March 2020 Local Emergency
Declaration to sign up for the
program.
RESTART – DELAY TO START REPAYMENTS
RiversideCA.gov
16 As of October 6, 2020
Customers will enter into agreements with
RPU to repay unpaid balances on their
accounts. This repayment agreement will be
a standardized formal agreement for
commercial customers and a standardized
letter agreement for residential customers .
Having a standardized repayment
agreement process will streamline the
process both for RPU and City staff as well as
for the customers.
Recommended Update
All residential payment arrangements to be
conducted via the current administrative
process.
All commercial payment arrangements to
include the Board of Public Utilities and City
Council approved standard agreement.
RESTART – REPAYMENT AGREEMENTS
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17 As of October 6, 2020
Customers will be provided 12-months to
repay their outstanding bill balance.
Twelve equal monthly payments will be
established for the customers. Customers
may repay their outstanding balances
early. For the agreement to remain valid
and for the customer to avoid
disconnection, customers must pay their
monthly utility bills plus the agreed upon
monthly payment.
RECOMMENDED PROGRAM UPDATES
Recommended Update
Customers will be provided up to 18 months from
the City Council directive to City Manager to
reverse the March 17, 2020 suspension of
discontinuing utility service for non-payment to
repay their outstanding bill balance. Regular,
equal monthly payments will be established
however a customer may request an alternative
“ramp up” schedule .C u s t o m e r s m a y r e p a y
their outstanding balances early. For the
repayment agreement to remain valid and for
the customer to avoid utility disconnection,
c u s t o m e r sm u s tm a k eo nt i m ep a y m e n t sf o rt h e current monthly utility bills plus the agreed upon
amount for the past due balance.
RESTART – REPAYMENT TIMELINE
RiversideCA.gov
18 Additional staff recommendation:
Customers requesting enrollment in the Restart Utility Bill Repayment Program delinquent repayment plan provide a
down payment of 10% of the outstanding utility account
balance to enroll in the program.
Note: Low-income qualified customers are eligible to enroll in the SHARE program and upon approval for SHARE may be eligible for a $250 emergency deposit credit.
RESTART - DOWN PAYMENTS
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19 Additional Staff recommendation:
The program is for delinquent utility bill amounts as defined in the March 2020 Local Emergency Declaration. Any additional account delinquency amounts outside of this defined period of the Local Emergency are not eligible for the Restart Program.
RESTART – ELIGIBILITY DATES
RiversideCA.gov
20 Economic Opportunity
Goal 3.4 to implement policies and programs that promote growth and ensure equitable opportunities for all.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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21 That the City Council:
1.Approve the Public Utilities Restart Utility Bill Repayment Program for customers who were unable to pay their
Riverside Public Utilities bills due to the ongoing COVID- 19 pandemic; and
2.Direct the City Manager to reverse the March 17, 2020 suspension of discontinuing water electric, sewer and
refuse utility service for non-payment.
RECOMMENDATIONS
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