California Water and Wastewater
Arrearage Payment Program
Stockton City Council
Agenda Item 15.3
April 19, 2022
Important Dates
• 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. • December 6, 2021: City submitted eligible water arrearages to the State Board.
• February 1, 2022: State Board opened the program for wastewater arrearages.
• March 31, 2022: City submitted application to receive funding up to $2,253,527.34 for wastewater arrearages.
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 wastewater 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 wastewater bills was used to determine
eligible accounts:
• Included past‐due wastewater bills for residential,
commercial and institutional customer accounts.
• Removed ineligible bills accrued outside the eligible pandemic relief period of March 4, 2020, through June
15, 2021.
Program Impact
• Total Program funds requested: $2,253,527.34.
• Total in arrearages: $2,187,890.63.
• 3% administrative cost: $65,636.71.
• Funds benefit 11,348 residential accounts, totaling
$2,033,089.92.
• Funds also benefit 394 commercial and institutional
accounts, totaling $154,800.71.
• Total in late fees and penalties required to be waived by the City: $250,000.
Recommendation
• Accept and appropriate funds from the State Board for the Program in the amount of $2,253,527.34.
• 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 wastewater 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.