HomeMy WebLinkAboutAgenda Report - May 16, 2007 E-13AGENDA ITEM �•
4DCITY OF LODI
COUNCIL COMMUNICATION
7M
AGENDA TITLE: Adopt resolution authorizing the City Managerto execute a professional
services contract with the Lodi Salvation Army tD administer the "SHARE
Customer Verification and Certification Program" (a pilot project), and
allocate $14,500 in Public Benefit Programfunds to complete this project
(EUD)
MEETING DATE: May 16,2007
PREPARED B Y Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Managerto execute a
contractwith the Lodi Salvation Army to administerthe "SHARE
Customer Verification & Certification Program", and allocate
$14,500 in Public Benefit Program funds to complete this pilot
project.
BACKGROUND INFORMATION: There are currently (as of April 1, 2007), 2,024 residential customers
participating in the Lodi SHARE Electric Rate Discount program.
For eligible customers, this rate relief program provides a 30%
monthly discount off the published, standard EA (Residential
Service) electric rate.
In order to ensure that all current participantscf the program are presently eligible to receivethis rate
relief, the Electric Utility Department (EUD) is proposing a pilot project: the "SHARE Customer
Verification and Certification Program." To successfully achieve the goal of this program, the EUD is
proposing to enlist the professional services of the Salvation Army" (S.A.). The S.A. will randomly select
675 current SHARE customers. and then verify and confirm that all 675 customers (households) are s&
eligible to receive the aforementioned rate relief. If the customer meets the existing eligibility
negimerneril tr S.A. will notify the EUD. Likewise, if a customerfails to meet said requirements, the
S.A. will notify the EUD and that customer's rate relief will be discontinued.
The S.A., as stipulated in the attached contract, will charge the EUD $20 per customer
verification/certification (675 customer screenings `x' $20.00 = $13,500). NOTE: the total requested
allocation for this program is $14,500; of this amount, $1,000 is earmarked for customer
outreach/notification, brochure and verification/certification applications and other materials as needed)
During the first six months of the 2006-2007 fiscal year, $230, 000in rate relief was provided to customers
on the SHARE Electric Rate Discount. This rate relief is funded via Lodi's Public Benefits Program, and
is considered a qualifying expenditure cf Public Benefits funds. Byway of this proposed certification and
verification program, the EUD is simply ensuring that those customers most in need of rate relief are truly
receiving the assistance currently available through this program.
APPROVED:
BlairXft, City Manager
Adopt resolution authorizing the City Manager tD execute a professional services contractwith the Lodi SalvationArrny
to administer the "SHARE" Customerverification and Certification Program" (a pilot project), and allocate $14,500 in
Public Benefit Programfunds to completethis project(EUD)
May 16, 2007
Page 2 of 2
After the 'pilot project` is completed (the first 675 customers have been screened by the S.A.), EUD will
review and assess the results and may recommend proceeding —with Council approval — tothe next
phase of the projectwhich will be the verificationlcertification of the remaining customers in the program.
Ultimately, the EUDwill require re -verification and re -certification every two years in orderfor a customer
to retain the rate relief. However, step one is to verify and confirm that existing customers do still qualify.
The EUD respectfully recommends approval of this professional services contract with the Salvation
Army, as well as the $14,500 allocation of Public Benefit Program funds.
'In order to qualify for the SHARE Rate Discount, the customer is required to certify income eligibility. The income
levelsfor 1 to 4 persons in a household range from $22,000 to $31,100, and customers must show all proof of
income for all members (when applicable) of the household. In addition, the customer must sign a statement upon
application indicatingthat the COL mayverify the customers eligibility at any time. Ifit is determined during the
verification process that a customer is not eligible to receivethe discount, the customerwill be removedfrom the
program and the COL may render corrective billing.
'The S.A. was selected to Serve as the screening agent for this program for two reasons: 1) their experience and
expertise in providing services of a similar nature for other entities (PG & E, San Joaquin County); and 2) the SA
has served successfully as the administrator of the "Lodi C.A.R.E. Package Program" since 2005 —this is a utility
grant payment program funded through Lodi's Public Benefits Program.
FISCAL IMPACT Requires an expenditure of $14,500 in Public Benefitfunds.
FUNDING: 164606 — Public Benef (Category: Low -Income Customer Assistance)
sic Evans, Budget Manager
.1 OL
Geo a F. Morrow
Electhc Utility Director
Prepared By: Rob Lechner. Manager, Customer Service & Programs
GFMftlftt
Attachments
SHARE Customer Verification/Certification
EXHIBIT "A"
Eli ig bility Requirements:
➢ Must meet income guidelines —
- 1-2 persons in household: $22,000 max. annual household income
- 3 persons in household: $25,900 max. annual household income
- 4 persons in household: $31,100 max. annual household income
- Each additional member: $5,200
➢ Customer must present (in person) appropriate documentation of the following in
order to qualify for the SHARE program -
- current City of Lodi utility statement (if currently a City of Lodi utility
customer);
- ID/Social Security Cards for ALL members of the household, and driver's
license or California ID card of the person listed on the utility account OR
account to be established;
- proof of current fixed income (interest income, AFDC/TANF, food stamps,
SSI/SSP, SSA, pensions/annuities/401K/IRA, ), AND non -fixed income
(wages/commissions, stocks/bonds income, business income, all other
income); and,
- copy of property rental agreement (if appropriate).
CONTRACT
BETWEEN
CITY OF LODI
AND
LODI SALVATION ARMY
This contract between the City of Lodi, a municipal corporation, (hereinafter "Lodi") and
the Salvation Army, a California Corporation (hereinafter "S.A."), sets forth the terms
and conditions under which S.A. will provide the services described herein. Lodi and
S.A. agree as follows:
SCOPE OF SERVICES
The S.A. agrees to administer the SHARE Customer Verification/Certification Program
for Lodi, in strict conformity with the terms and conditions of this contract. The S.A. will
provide the following services to Lodi under this agreement:
• Maintain and monitor a budget of $13,500 (675 total customer
verifications/certifications), which concludes when this total dollar amount
is exhausted;
• Provide all customer interface, which includes screening for customer
eligibility (pursuant to the eligibility requirements set forth in Exhibit "A")
and approval of customer participation in this electric utility rate discount;
• Notify the City of Lodi Electric Utility and Finance departments, through an
existing and agreed upon procedure of both telephone/fax communications
of any/all customers approved for participation in this program. The S.A.
will also notify Lodi of any/all customers who are removed from the
program for failing to meet the eligibility requirements as set forth in
Exhibit "A;"
• The S.A., in concurrence with the COL, will randomly select and screen 675
customers currently receiving the SHARE electric rate discount.
TERMS OF AGREEMENT
The term of this agreement shall be from May 17, 2007 until the entire $13,500 in
allocated funds for the program has been expended. It is anticipated that this pilot project
will be completed by September 1, 2007.
ADVERTISING, MARKETING AND PUBLIC RELATIONS
All advertising, marketing and/or public relations will be the sole responsibility of Lodi,
which includes all costs associated with any outreach or promotional material and/or ad
campaigns, as well as costs associated with the development and production of program
brochures and program participant applications. The S.A. agrees to provide consulting
services to Lodi on potential market groups or targeted audiences.
SHARE CUSTOMER VERIFICATION/CERTIFICATION
CONTRACT (continued)
INSURANCE
For actions performed under this agreement, the S.A. agrees to maintain all necessary
insurance requirements set forth by Lodi (as identified in the instructions/requirements
for insurance coverage page, attached hereto and incorporated herein).
CONTRACT PRICE AND TERMS
The S.A. will invoice for all administrative work performed at a rate of $20 per customer
verification/certification, with a cap of $13,500 (the funding allows for a total of 675
customer verifications/certifications in this pilot project). Invoices will be submitted to
Lodi the first of each month, payable within thirty (30) days of the invoice date.
COMPLIANCE WITH LICENSES
(Note: No additional licenses are required to comply with this program.)
INDEMNITY CLAUSE
The S.A. shall indemnify, defend and hold harmless the City of Lodi, the City of Lodi
Electric Utility, the City of Lodi Finance Department, its City Council, Directors,
Officers, Agents, and employees against all claims, loss, damage, expense, and liability
arising out of, or in any way connected with the performance of this contract and
excepting only such loss, damage or liability as may be caused by the intentional acts or
sole negligence of the City of Lodi, the City of Lodi Electric Utility, and the City of Lodi
Finance Department.
2
SHARE CUSTOMER VERIFICA TIONICER TIFICA TIONCONTRA CT
ACCEPTANCE
THE ABOVE TERMS AND CONDITIONS ARE AGREED UPON, AND ACCEPTED
ON THIS DAY OF MAY, 2007.
The Salvation Army Blair King, City Manager
Approved as to Form:
D. Stephen Schwabauer
City Attorney
ATTEST:
Randi Johl
City Clerk
RESOLUTION NO. 2007-90
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES
CONTRACT WITH THE LODI SALVATION ARMY TO ADMINISTER
THE SHARE CUSTOMER VERIFICATION AND CERTIFICATION
PROGRAM AND TO ALLOCATE PUBLIC BENEFIT PROGRAM
FUNDS TO COMPLETE THE PROJECT
----------__�_ -------------------------------------------------------
WHEREAS, as of April I, 2007, there are 2,024 residential customers participating in
the Lodi SHARE Electric Rate Discount program. For eligible customers, this rate relief
program provides a 30% monthly discount off the published, standard residential service
electric rate: and
WHEREAS, in order to ensure that all current participants of the program are
presently eligible to receive this rate relief, the Electric Utility Department (EUD) is proposing
the pilot project, "SHARE Customer Verification and Certification Program." EUD is
proposing to enlist the professional services of the Salvation Army, which will randomly
select 675 current SHARE customers and verify/confirm that all 675 customers (households)
are still eligible to receive the aforementioned rate relief. The Salvation Army will notify EUD
whether these customers meet or fail to meet the existing eligibility requirements, which may
result in the discontinuation of the rate relief for some; and
WHEREAS, the Salvation Army will charge EUD $20 per customer
verification/certification (i.e. 675 customer screenings x $20.00 = $13,500). The total
requested allocation for this program is $14,500, and, of this amount, $1,000 is earmarked
for customer outreach/notification, brochure and verification/certification applications, and
other materials as needed; and
WHEREAS, after the pilot project is completed, EUD will review and assess the
results and may recommend to City Council proceeding with the verification/certification of
the remaining customers in the program, after which EUD will require re -verification and
re -certification every two years in order for a customer to retain the rate relief.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a professional services contract with the Lodi
Salvation Army to administer the SHARE Customer Verification and Certification Program;
and
BE IT FURTHER RESOLVED that the City Manager is authorized to allocate Public
Benefit Program funds in the amount of $14,500 to complete the project.
Dated: May 16, 2007
----------------------------------------------------------------------
I hereby certify that Resolution No. 2007-90 was passed and adopted by the Lodi
City Council in a regular meeting held May 16, 2007, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Katzakian, Mounce, and
Mayor Johnson
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS— None
R OHL
City Clerk
2007-90