HomeMy WebLinkAboutI-6 UB Staff Report-Approve LIHEAP AgreementCONSENT ITEM
I-6
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: MAY 18, 2020
SUBJECT: APPROVAL OF A DIRECT PAYMENT AGREEMENT WITH THE STATE
OF CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND
DEVELOPMENT FOR THE RECEIPT OF LOW-INCOME HOME ENGERGY
ASSISTANCE PROGRAM PAYMENTS ELECTRONICALLY ON BEHALF
OF LIGHT AND WATER CUSTOMERS
BACKGROUND:
The State of California Department of Community Services and Development (CSD) operates a
Low-Income Home Energy Assistance Program (LIHEAP), which provides utility payment
assistance once within a 12-month period for qualifying customers. Azusa Light & Water (ALW)
last approved participation in this program in July 2017 and continues to receive payments from
the State on behalf of customers that apply and receive the LIHEAP program benefit. The
recommended action would approve the continued participation in the LIHEAP program and the
acceptance of direct payments from the State for low-income utility customer accounts.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1) Approve a Direct Payment Agreement with the Department of Community Services
and Development for continued participation in the Low Income Home Energy
Assistance Program (LIHEAP) for a period of three (3) years; and
2) Authorize the Director of Utilities to execute the Direct Payment Agreement.
APPROVED
UTILITY BOARD
5/18/2020
Special Meeting
LIHEAP Direct Payment Agreement
May 18, 2020
Page 2
ANALYSIS:
ALW has participated in the LIHEAP program since 2003, and low-income qualified customers
have benefitted from payment assistance toward their utility bills. Low-income customers are
referred to the State to submit applications to receive an annual assistance payment to cover their
electric utility costs. This is a federally-funded program and is administered by the CSD. During
the 2019-20 fiscal year, there were 169 customers who qualified for LIHEAP payment
assistance, and the average payment was approximately $306 per year.
FISCAL IMPACT:
The fiscal impact of this program on the utility is minimal and includes a minor amount of staff
time to promote the program to customers and process payment files received from LIHEAP
administrators. Benefits have ranged from $50,000 to $75,000 to customers on an annual basis.
Prepared by: Reviewed and Approved:
Alicia Holmes Manny Robledo
Assistant Director of Utilities Director of Utilities
Customer Care & Solutions
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) Direct Payment Agreement
Attachment 1