AGENDA CAPTION:
Title
Receive a Staff presentation and hold discussion regarding the utility disconnections for non-payment and late fees, and provide direction to Staff.
Body
Meeting date: March 16, 2021
Department: Finance, Marie Kalka
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Fiscal Note:
Prior Council Action: Council agreed to halt utility service disconnections during the COVID emergency in March 2020. On July 7, 2020 council approved extending the freeze on disconnects through the end of September 2020. Again in November, Council directed extended the halting of disconnections through March 31, 2021. At the March 2, 2021 Council meeting there was discussion with the direction to come back on March 16, 2021 for further discussion and direction.
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Background Information:
In March, 2020 the City Council agreed to halt utility service disconnections for non-payment for 90 days due to difficulties our community has been experiencing from the COVID-19 pandemic. In July 2020, council supported extending this date through Sept. 30, 2020. Currently, utility disconnections remain on hold through March 31, 2021 as directed by Council in November 2020. In December 2020, staff recommended, and Council approved, setting the late fees suspension to same date as nonpayment disconnection hold of March 31, 2021.
At the December 2020 meeting Council directed staff to bring this item back before March 31, 2021 for further discussion based on the current state of the COVID pandemic.
At the March 2, 2021 Council meeting, staff presented an update and recommended the extending of late fees and disconnects until July 1, 2021. Council discussed and directed staff to gather additional information and come back to staff at the March 16, 2021 meeting for further discussion and direction.
At this time, staff recommends extending the late fee and disconnection date until August 1,2021. In addition, staff recommends committing up to a total of $1,000,000 of Coronavirus Relief General Fund Funds and Community Action funds to provide assistance to customers that are in need and apply through a one-page short application process with up to a maximum of $1,500 per customer. Priority would be given to the oldest accounts (greater than 60 days behind) who provide documentation that they are unemployed or behind in rent/bills on a first come first serve basis while funds last.
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Alternatives:
Continue to not terminate services for a set period of time.
Recommendation:
Increase community outreach, expand customer communications and continue promoting utility assistance.
Staff recommends extending the late fee and disconnection freeze date until August 1,2021 with increased community outreach, expanded customer communication and continued promotion of utility assistance. In addition, staff recommends committing up to a total of $1,000,000 of Coronavirus Relief General Fund Funds and Community Action funds to provide assistance to customers that are in need and apply through a one-page short application process with up to a maximum of $1,500 per customer. Priority would be given to the oldest accounts (greater than 60 days behind) who provide documentation that they are unemployed or behind in rent/bills on a first come first serve basis while funds last.