REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
June 22, 2021
FROM
BRENDON BIGGS, Director, Department of Public Works - Special Districts
SUBJECT
Title
Payment Arrangement Fee Waivers and Continued Suspension of Water Shutoffs for Customers Impacted by COVID-19
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the Board Governed County Service Areas and their Zones, authorize the Director of the Department of Public Works to:
1. Waive payment arrangement fees on unpaid balances, as described in the adopted fee ordinance for the Board Governed County Service Areas and their Zones, until December 31, 2021 for water and sanitation customers adversely impacted by COVID-19.
2. Continue suspension of water shutoffs through December 31, 2021 for nonpayment of customers adversely impacted by COVID-19.
(Presenter: Brendon Biggs, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). With approval of this item, the Board Governed County Service Areas providing water and sanitation services (CSAs) will not receive any payment arrangement fee revenue through December 31, 2021 from their customers adversely impacted by COVID-19. Since a very small percentage of the annual budget for the CSAs is funded through this revenue, the financial impact from this fee waiver will be minimal.
BACKGROUND INFORMATION
On March 4, 2020, the State of California declared a state of emergency as a result of COVID-19. This was followed by the County declaring a local emergency due to COVID-19 approved by the Board of Supervisors (Board) on March 10, 2020 (Item No. 75).
COVID-19 resulted in several State and local orders in an effort to protect the public from any possible spread of the virus. This included the County’s Acting Health Officer ordering the cancellation of all gatherings of any number starting March 17, 2020. The Governor’s March 19, 2020 Stay at Home Order (Executive Order N-33-20) directed all individuals to stay at their place of residence except as needed to maintain continuity of operations in specified critical infrastructure sectors. These actions had an adverse economic impact on some of the tenants and customers of the CSAs.
Stay at home orders and social distancing requirements resulted in temporary business closures, reductions of permissible services at leased premises, employee layoffs, reduced work hours, and reduced business receipts among other adverse effects. To help alleviate financial difficulties during this time, the Board on March 24, 2020 (Item No. 57) approved the temporary suspension of water shutoffs due to non-payment during the COVID-19 crisis. In addition, on April 2, 2020, the Governor’s Stay at Home Order (Executive Order N-42-20) prohibited water service disconnections for non-payment of fees. The Department of Public Works - Special Districts (Department) also began not applying late payment charges on water and sanitation customers impacted by COVID-19. This action was based on the Board declaring COVID-19 a local emergency and the fee deferral serving a public purpose by supporting those individuals struggling financially from the pandemic. Other public utility agencies across the State also ceased charging penalties at the onset of the pandemic. Late payment charges will begin to be assessed on customers’ bills starting July 1, 2021. This fee will not apply to any delinquent balances from April 2020 through June 2021.
Approval of Recommendation No. 1 would allow the Department to further assist water and sanitation customers impacted by COVID-19 through payment arrangement fee waivers until December 31, 2021. In addition, customers who remain in good standing on a payment plan will not be subject to water shutoff. The Department will continue to bill customers for normal usage and will charge late payment penalties associated with delinquent water and sewer fees beginning on July 1, 2021. Approval of Recommendation No. 2 would continue the suspension of water disconnects due to non-payment through December 31, 2021, which would be needed in the event that Executive Order N-42-20 is rescinded before the end of the year. After January 1, 2022, all customers who are delinquent for 60 days or greater and not in good standing on an active payment plan will be subject to disconnect. Should there be a future need to extend authorization of the fee waivers and/or suspension of water shutoffs beyond December 31, 2021, the Department will return to the Board for approval of new recommendations.
Between now and December 31, 2021, the Department will continue to proactively reach out to customers with delinquent balances to offer interest and penalty free payment arrangement options. The Department will also take proactive measures, such as informing residents of the San Bernardino County Rent Relief Partnership (RRP). Although the RRP currently does not provide funding to residents for payment of past due utility bills, these costs may be eligible for RRP funding in the very near future.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Dawn Martin, Deputy County Counsel, 387-5455) on June 4, 2021; Finance (Tom Forster, Administrative Analyst, 387-4635) on June 7, 2021; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on June 7, 2021.