RESPONSE TO COUNCIL QUESTIONS RE: 4/4/23 AGENDA
Agenda Item 5.D: Action on an Agreement with Ray Klein Inc., dba Professional Credit to Provide Collection Services to the City for Bad Debt and Delinquent Accounts
Council Question:
1. About how much total money typically requires such collections actions?
2. Of that, how much is typically recovered versus written off?
3. What is the average size in dollars of a collection event?
4. I know we had utility arrearage grants during covid. Are those done?
5. How do we handle hardship cases?
6. What has been recovery rate in the past?
7. What has been gross and %age bad debts in that past year or few years?
Staff Response:
Thank you for your question. I would like to note that the City stopped sending overdue accounts to collections starting in March 2020. This was one of the many programs that the City implemented to help our residents and business community at the onset of the COVID-19 emergency. The Finance Department plans to restart the collection effort again after we complete notifying and outreaching to residents and businesses with delinquent balances.
Below are the responses to your questions based on the most current collection data we have on file:
1. About how much total money typically requires such collections actions? We typically send delinquent accounts that are above $100 to our collection agency. In fiscal year 2018- 19, the last year delinquent accounts were sent to collections, the City sent approximately $133,167 to our collection agency. Of this amount, about $31,220 was collected by the collection agency for that year.
2. Of that, how much is typically recovered versus written off? Amounts sent to the collection agency typically stays with the collection agency for a few years before the City deem it uncollectable and writes it off. The City wrote off $75,581 from the balances we sent to the collection agency in fiscal year 2018-19.
3. What is the average size in dollars of a collection event? The average size in dollars varies depending on the volume and dollar amount we send to our collection agency. The majority of the transaction that we send to our collection agency averages around $100.
4. I know we had utility arrearage grants during covid. Are those done? Yes, we’ve completed applying all the credits from the arrearage grants we received for Water, Sewer, and Electric CAPP grants.
5. How do we handle hardship cases?
We offer payment arrangements to customers in arrears and provide multiple rate assistance programs as well as a Help Your Neighbor Program for hardship assistance. We also direct customers to outside agencies. Example- Sacred Heart for Liheap/Lihwap Programs.
6. What has been recovery rate in the past?
Prior to the pandemic, the City’s past recovery rate of bad debt for Utility was 95% for in-house,
4.6% for collection agency, and 0.40% for write-off.
2 7. What has been gross and percentage bad debts in that past year or few years? We do not have an accurate gross and percentage of age bad debts available because the City suspended sending overdue accounts to collections starting in March 2020. This was one of the many programs that the City implemented to help our residents and business community at the onset of the COVID-19 emergency. The Finance Department plans to restart the collection effort again after we complete notifying and outreaching to residents and businesses with delinquent balances.
Agenda Item 5.H: Action to Adopt a Resolution Approving the Water Supply Assessment for Mission Point - 3005 Democracy Way
Council Question:
Since we have recycled water for Related and Levi’s Stadium, why did we not extend recycled water to Tasman East?
Staff Response:
Tasman East Development project will be extending the recycled water line on Lafayette Street from Tasman Drive to Calle De Luna and Calle Del Mundo and installing recycled water lines on Calle Del Mundo and Calle De Luna streets and will be using recycled water.
Council Question:
What is the mechanism to charge developers to extend the purple pipe network?
Staff Response:
Currently we are asking the developers to extend the recycled water line where feasible and connect their development to the recycled water system. Pursuant to Chapter 13.15, Water, Article IV. Regulation of Recycled Water Service and Use, of the Municipal Code, the project is required to use recycled water for all non-potable uses where recycled water is made available and where provided for by Recycled Water regulations.
Council Question:
Can we require the Mission Point development to use a closed loop cooling system for any data centers so data centers don’t have a big water load?
Staff Response:
This project at Mission Point doesn’t have data centers at this stage of the process based on information provided in their Water Supply Assessment but does have residential office, retail, childcare facility and community amenity space. Most of the datacenters are focused on using the water in a most efficient way based on their needs. The Water Department will review the uses and recommend efficiencies during the Water Supply Assessment and the design of onsite cooling system design.
Agenda Item 6.A: Action on a Resolution of the Santa Clara Stadium Authority Authorizing the Deposit of Stadium Authority Funds Into the State's Local Agency Investment Fund and Authorizing Staff to Deposit and Withdraw These Funds
Council Question:
I understand that the yield curve is inverted but, since we won’t need the demolition fund for at least 30 years, I’m concerned about the statement: “LAIF staff has managed to achieve exceptional yields over the life of the investment pool considering its emphasis on safety and liquidity.”
3 Staff Response:
Deposits into LAIF would not be held for a long-term horizon (eg. 30 years). It would serve as a temporary, higher, earning pool than what is currently available with our intent to transfer these funds to a higher earning investment manager. Additionally, a LAIF account opened by Santa Clara Stadium Authority (SCSA) keeps this fund segregated from all other cash pools.
Council Question:
Is the intent just to park the money in LAIF since we can withdraw at anytime while we: “issue a Request for Proposal (RFP) to procure an external investment manager to manage the Stadium Authority’s monies.. .”
Staff Response:
Yes, this is a safe and flexible option to hold these funds for the short term prior to securing an investment program manager.
Council Question:
Does council need to take action to initiate the RFP?
Staff Response:
No, the Council does not need to take action to initiate a RFP. Currently, staff is evaluating if a new RFP is necessary or whether the SCSA could use the same investment manager as the City that was selected as part of a competitive RFP conducted in 2020.
Agenda Item 11: Action on a Written Petition (Council Policy 030), Submitted by Mayor Gillmor Requesting to Place an Agenda Item on a Future Council Meeting for Council to Consider a Subpoena and Compel Production of a Full and Complete Set of FIFA World Cup 2026 Levi Stadium, Santa Clara Documents from the San Francisco 49er Management Company, Bay Area Host Committee or other 49er Entity as Appropriate
Council Question:
1. What information did we get so far from host committee/49ers?
2. What additional info staff has requested from host committee/ 49ers?
3. What level of info did we receive during Super Bowl 50 comparing to what we have received so far from FIFA host committee/49ers/Manco?
4. What documents has the City already received and who gets to look at them? Is there a hard policy for that?
5. What documents are missing (what do we still think we need)?
6. If the City subpoenas the “full set” of documents, how do we ensure some level of confidentiality? I don’t want to have a repeat of releasing how much Taylor Swift was paid.
Staff Response:
FIFA Documents:
The City is in possession of the combined North American bid book, which was produced prior to FIFA’s award, and has been in the public domain for some time. Additionally, in January 2023, the City received a copy of the Stadium Use Agreement from Stadium Manager. In its transmittal to the City, the Stadium Manager asserted that the entire document was confidential. Following a review by the Interim City Attorney, it appeared that there were a number of documents that should have been developed and or finalized referenced in the Stadium Use Agreement, but of which the City and Stadium Authority had no record, nor knowledge. On February 28, 2023 a follow up request was made to Stadium Manager to meet and discuss: 1) the status and availability of all documents to City/Stadium Authority and 2) the Stadium Manager’s position regarding document confidentiality.
That meeting has not yet occurred to allow for the new City Attorney to get up to speed and to be present at a meeting.
4 Referenced documents in the Stadium Use Agreement but not in City/Stadium Authority possession include: Host City Agreement, Project Management Plan, Hotel/Training Site Agreements, Stadium Construction & Renovation Plan.
Once the City Attorney’s office is able to meet with Stadium Manager and discuss whether or not any or all parts of the documents are confidential, staff will be able to better respond as to the public release of the document/document contents.
Super Bowl 60/FIFA and Bay Area Host Committee:
For Super Bowl 50 and 51, in late 2012 the NFL prepared a Bid Book with specifications to host a Super Bowl 50 (2016) or Super Bowl 51 (2017). Over the course of three months, staff worked with the Bid Committee to develop a budget for City staff costs (for planning and execution of the event), determine the level of City participation in the bid, and timing of payments to the City. The Council was briefed in closed session and provided direction to staff during this period. These efforts culminated with March 2013 Council/Board approval of Resolutions of support to provide public safety services, fire/medical services for either Super Bowl 50 or 51; approval a Government Services Agreement with the San Francisco Bid Committee; and approval a Stadium License MOU with the NFL. The Bid was submitted to the NFL in late March 2013.
The new President/CEO of the Bay Area Host Committee started her duties on March 20, 2023. Staff has participated in introduction meetings with Ms. Janmohamed but to date has not had any working meetings to discuss how City costs will be paid for as required under Measure J. The requirement for payment of City costs, along with the expectation that an Agreement must document services, timing of payment and overall City participation, has been clearly articulated to the Host Committee and Stadium Manager. It is our understanding that the Bay Area bid for Super Bowl 60 was submitted to the NFL on March 31, 2023. The City/Stadium Authority has not been privy to any of the Host Committee bid documents.
With regard to FIFA, as mentioned above, staff only has a copy of the bid book and Stadium Use Agreement. We have not been engaged by the Stadium Manager, Bay Area Host Committee, United States Soccer Federation or FIFA on any expectation related the provision of any public services and/or public safety requirements necessary to host World Cup matches in 2026. Without this information, staff cannot make an assessment of City funding needs and risk.