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03/11/2022
T-42417.001\1904808 1
Council Agenda: 4/12/2022
Item No.: 6.2(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE AUTHORIZING ACTIONS RELATED TO THE
STATE OF CALIFORNIA’S LOW INCOME HOUSEHOLD
WATER ASSISTANCE PAYMENT PROGRAM
WHEREAS, the San José Municipal Water System (“SJMWS”), a rate-funded utility intended to operate at full cost recovery, provides water to approximately 26,000 customer accounts and serves a population of about 130,000 people in the North San José, Alviso, Evergreen, Edenvale, and Coyote Valley areas ; and
WHEREAS, water customers are billed on a bimonthly basis and charged a flat service charge based on the size of the water meter, as well as a quantity charge per unit of water used; and
WHEREAS, the economic hardships caused by the COVID-19 pandemic have led to an increase in unpaid water bills ; and
WHEREAS, in January 2022, the Council of the City of San José (“City”) approved City participation in the California Water and Wastewater Arrearage Payme nt Program (“CWWAP”), and on January 31, 2022 the City received $643,419 in CWWAP funding to distribute as bill credits to eligible residential and commercial customers affected by the COVID-19 pandemic, plus an additional 3% for the City’s administrative costs of implementing the CWWAP; and
WHEREAS, established by Congress in December 2020, the federal Low Income Household Water Assistance Program (“LIHWAP”), which is scheduled to commence in May-June 2022 and operate through August 2023, will provide financial assistance to NVF:CDW:KML
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Council Agenda: 4/12/2022
Item No.: 6.2(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
low-income households to help manage their residential water utility costs and pay outstanding water bills; and
WHEREAS, eligible households can receive a one -time payment of up to $2,000 to be credited to their water account, which can cover a customer’s past due balance, current charges, late fees and taxes, ensuring low-income households have access to safe and clean drinking water; and
WHEREAS, where eligible, California residents can potentially receive util ity bill assistance from both the CWWAP and LIHWAP ; and
WHEREAS, the Department of Community Services and Development (“CSD”) has been designated the administering agency for LIHWAP in California , and the City is required to register in CSD’s Direct Payment program in order to participate in the LIHWAP, since approved benefit payments will be provided directly to utilities ; and
WHEREAS, Sacred Heart Community Services will be the State-designated Local Service Provider for the Santa Clara County area and will be responsible for conducting outreach to low-income households, confirming household eligibility, collecting all information required for the LIHWAP application, and determining LIHWAP benefit payment amounts for households; and
WHEREAS, the City will accept LIHWAP payments on behalf of approved households within the SJMWS service area, apply funds to the water account serving the approved household, and notify the customer when the LIHWAP credit h as been applied to their account; and
NVF:CDW:KML
03/11/2022
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Council Agenda: 4/12/2022
Item No.: 6.2(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, staff recommends that the City Council authorize the actions required for participation in the LIHWAP so the City can provide customer relief for unpaid utility bills; and
WHEREAS, it is unclear if additional State or Federal programs will become available to assist customers with utility bills in the future, and in order to move quickly on potential funding sources, especially when there are short deadlines or limited funds, staff seeks authorization to apply for and execute any documents necessary for the City and its customers to receive this funding and participate in these programs, if any become available;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
A. The City of San José’s application to participate in the Low Income Household Water Assistance Payment Program is hereby ratified, and the City Manager, Director of Finance, or their designees are hereby authorized to negotiate and execute the necessary agreements, including the Direct Payment Agreement with Horne, LLP, and any amendments or revisions, and other actions, to execute the participation agreement and fulfill associated participation requirements.
B. The City Manager, Director of Finance, or their designees are hereby authorized to apply for, negotiate and execute any documents, and take other actions necessary to receive and distribute funds for any other State or Federal assistance programs designed to assist customers with payment for water utility bills.
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Council Agenda: 4/12/2022
Item No.: 6.2(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk