California Water and Wastewater
Arrearage Payment Program
Stockton City Council
Agenda Item 15.5
March 1, 2022
Important Dates
• March 10, 2021: SB‐46 signed into law.
• July 23, 2021: Governor signs AB‐148.
• Allocated $985M to the State Water Resources Control Board (State Board) in American Rescue Plan Act (ARPA) funds to cover customer water and wastewater arrearages resulting from the COVID‐19 pandemic emergency.
• September 21, 2021: State Board published guidelines for the California Water and Wastewater Arrearage Payment Program (Program).
• December 6, 2021: City provided report of eligible water arrearages to the State Board.
• February 16, 2022: City received $1,623,889.31 in Program funds.
Program Background
• Eligible arrearages include all active or inactive residential and commercial accounts 60 days or more behind on payments for debt accrued between March 4, 2020, and June 15, 2021.
• City must allocate payments as bill credits to eligible accounts and notify customers within 60 days of receiving Program funds. • A payment plan must be offered for customers with remaining water arrearages after credit is applied.
• Customers have 30 days to enroll.
• City must waive customer late fees and penalties for qualifying arrearages.
Determination of Eligibility
• In accordance with Program guidelines, a report of
past‐due water bills was used to determine eligible
accounts:
• Included past‐due water bills for residential, commercial and institutional customer accounts.
• Removed ineligible bills accrued outside the eligible pandemic relief period between March 4, 2020, and June
15, 2021.
Program Impact
• Total Program funds received: $1,623,889.31.
• Total in arrearages: $1,576,591.57.
• 3% administrative cost: $47,297.74.
• Funds benefit 4,305 residential accounts, totalling
$1,551,174.29.
• Funds also benefit 52 commercial and institutional
accounts, totaling $25,417.29.
• Total in late fees and penalties required to be waived by the City: $324,103.
Recommendation
• Accept and appropriate funds from the State Board for the Program in the amount of $1,623,889.31.
• Approve the allocation of funds in accordance with all Program requirements.
• Approve a waiver of customer late payment fees eligible for the Program.
Next Steps
• Credit eligible accounts.
• Mail a notification to eligible customers within 60 days of receiving funds. Notice must include:
• The amount credited to water account;
• Information about the Program funding sources;
• Instructions to contact the City with questions, to enroll in a payment plan, or to appeal or contest utility bill charges; and • Ar e f e r r a l statement regarding additional assistance that may be available through the Low‐Income Household Water Assistance Program (LIHWAP), scheduled to be available in May 2022. • Waive late fees and penalties related to eligible arrearages. • Prepare required report for the Wastewater Arrearage Payment Program.