HomeMy WebLinkAboutAgenda Report - August 1, 2007 E-13AGENDA ITEM ko I3
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Allocate $42,OD0 i n Public Benefit
Program Funds for the Lodi CARE Package Program and Execute a Contract With
the Lodi Salvation Army to Administer This Program (EUD)
MEETING DATE: August 1, 2007
PREPARED BY Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Managerto allocate $42,000
in Public Benefit Program funds for the Lodi CARE Package
Program and execute a contract with the Lodi Salvation Army to
administerthis program.
BACKGROUND INFORMATION: Since late 2004, the City of Lodi has provided a special grant
program designed to assist Lodifamilies in paying their monthly
utilitybill, To qualifyfor a grant, a customer mustearn lessthan the
published federal income guidelines. Specifically, the Lodi CARE Package Program will provide a relief
payment of up to $110,00* for eligiblefamiiies/customers. Other program specifics include:
➢ A customer in need will be interviewed by staff of the Lodi Salvation Army at the Lockeford Street
facility; the family/customer must meet eligibility requirements, as listed on'AttachmentA;'
➢ If approved for a relief payment, the Salvation Army will not i i the C i of Lodi Finance Department
of eligible customer name, and the exact amount of the relief payment;
➢ The Salvation Army will also notify the City of Lodi Electric Utility Department of approved
customers; these customers will automatically be enrolled in the Lodi EnergyAudit Program and
receive a free in-home energy audit;
➢ Customers are eligibleto receive a maximumgrant amount of $110 every six months;
➢ A set of income guidelines has been developed for this program, and will be utilized as part of the
assessment process conducted by the Salvation Army (please see 'Attachment B); and
➢ In order to receive the maximum relief payment of $110, a customer must have no past due
amounts owed to the City of Lodi, and must be able to pay the remaining portion of their current
C i of Lodi utility statement (the water and wastewater charges).
The following iwD e n t i i are providing the funds availablefor the relief payments:
➢ City of Lodi Electric Utility - $42,000 total; of this amount, up to $34,000 is earmarked for relief
payments to the customers in need. The $34,000 is ONLY for payment of the electric utility
component of the customer's bill. $7,500 is earmarked as the payment due to the Salvation Army
for their assessment services, and $500 is earmarked for customer outreach and material
preparation costs.
➢ WM0 Waste Management- $10,000 total; these funds will be designated solely for the purpose of
paying the refuse component of a customer's bill (maximum payment is $20 per customer; one
such payment every six months).
APPROVED:
B ing, City Manager
Adopt ResolutionAuthorizing the City Manager to Allocate$42,000In Public Benefit Program Fundsfor the
Lodi CARE Package Program and Execute a Contract With the Lodi Salvation Army to Administer This
Program (EUD)
August 1, 2007
Page 2 of 2
Since the program's inception, 669 Lodi customers have participated in the program and received a grant
payment. Based upon funds earmarked for the 2007-2008fiscal year program, up to 375 customers
could receive a relief payment (Note: based upon historical data and customer participation, it is
anticipated that up to 375 customerswill receive assistance during the course of the 2007-2008fiscal
year program). The intent of the Lodi CARE Package Program is to assist those customers— currently
living on wages 20 percent below the published federal income guidelines —in paying their monthly City
of Lodi utility bill, particularly when the customer is facing a difficult period. The program is a "safety net"
of sorts for customers experiencing a particularly difficult or unexpected financial hardship.
In order to adequately qualify customers for a r e I i payment, staff is recommending that the Lodi
SalvationArmy serve as the day-to-day administrator of the program. The Salvation Army will charge the
C i of Lcdi a fee of $20 per customer assessment (not to exceed $7,500during the 2007-2008fiscal
year). The Salvation Army has provided the assessment services since late 2004 for this program, as
well as other contractual services with the City of Lodi. For these reasons, staff requests that the Lodi
City Council dispensewith the bid process, pursuantto Lodi Municipal Code 3.20.070.
ElectricUtiiity staff' respectfully recommends approval d= this program for the fiscal year 2007-2008as a
qualifying expenditure of the C i cP Lodi Public Benefits Program.
This relief payment was derived by assessing the average bill of a utility customer currently receivinga rate
discount as part of the Lcdi SHARE Program (the SHARE rate discount provides eligible custon-erswitha monthly
30% rate break on their City of Lodi electric bill). Two months were used as part of the assessment (July and
November2006). Of these tm months, the average July utility bill for electric only was $91, while the average
November utility bill fix electric only was $47. Based upon this moment, it was determined that the electric
utility component of the relief payment be capped at $90. Also during this aforementioned assessment process, it
was determined that the average refuse component of a City of Lodi utility statement is $21 (hence, a cap of $20 is
recommended as the refuse component of the relief payment).
FISCAL IMPACT: The City will expend upto $42,000 in Public Benefit Programfunds to provideand
administer grants to customers in need.
FUNDING: 164606 — Public Benefits Program Fund (Category: Low -Income Customer
Gefte F. Mon -ow
Electric Utility Director
Prepared By.. Rob Lechner, Manager, Customer Service 8 Programs
GFM/RlJlst
Attachments
RESOLUTION NO. 2007-154
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ALLOCATE VARIOUS FUNDS FOR
THE LODI CARE PACKAGE PROGRAM, AND FURTHER
AUTHORIZING THE CITY MANAGERTO EXECUTEA
CONTRACT WITH THE SALVATION ARMY TO
ADMINISTER THIS PROGRAM
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to allocate Public Benefit Program funds for the Lodi CARE
Package Program in the amount of $42,000 as follows:
164606— Public Benefits (Category: Low -Income Customer Assistance)
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and
directed to execute a contract with the Salvation Army to administer this program.
Dated: August 1, 2007
hereby certify that Resolution No. 2007-154 was passed and adopted by the
Lodi City Council in a regular meeting held August 1, 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
JOHL
City Clerk
2007-154