HomeMy WebLinkAboutStaff Report 290-10TO: HONORABLE CITY COUNCIL
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FROM: CITY MANAGER DEP ARMENT: UTILITIES
DATE: JULY 12,2010
REPORT TYPE; INFORMATIONAL
SUBJECT; Update on the ProjectPLEDGE Program
RECOMMEI\l)A TION
. This report is informational only and no Council action is required.
BACKGROUND
CMR: 290:10
ProjectPLEDGE disburses funds voluntarily donated by Utilities customers monthly which are
applied to the Utilities accounts of qualifying residential i:ustomershaving difficulty paying their
Utilities bill due to fmancial hardship. On May IS, 2009, the City Council voted unanimously to
approve changes to ProjectPLEDGE (CMR: 240:09), which clarified customer eligibility criteria
and frequency of participation for ProjectPLEDGE.
While approving the changes, however, Council noted that staff planned to seek additional
donations from the community and to increase community awareness of the program. Council
directed staff to return in one year and report on the success or failure of participation by both
donor and recipients and overhead administrative costs of the program, including marketing
costs. This update responds to Council's directive to staff on May 18,2009.
DISCUSSION
Administration
The Utilities Department currently administers ProjectPLEDGE on behalf of those customers
donating funds through their Utilities bill, and ensures that the funds reach those that need them.
Because there are fewer than 30 customers who annually receive funding from ProjectPLEDGE,
the incremental labor costs associated with ProjectPLEDGE are not considered material, since
ProjectPLEDGE participants are usually already involved in one or more of other current
utilities-funded services for late or non-payment of bills, creation of payment arrangements, or
participation in the low-income Residential Energy Assistance Program.
CMR: 290:10 Page 1 of3
Funding
ProjectPLEDGE funding is provided by interested Utilities customers as voluntary contributions
on their own monthly Utilities bill, made in addition to their regular charges. ProjectPLEDGE is
not funded in the Utilities Operating Budget for labor, material, marketing support or other
resources. One hundred percent of the donated funds are disbursed to customers experiencing
financial crises without dilution for program administration or overhead.
Marketing
Between 1996 and 2009 when Council approved program changes, there had been no marketing
effort for ProjectPLEDGE since program initiation. As a result, the original pool of donors
remained fairly static for a time, and then slowly decreased as customers who were once donors
left Palo Alto or closed their Utilities accounts.
In order to increase program awareness and generate additional revenue through donations, a
portion of a Utilities bill insert "vas dedicated to ProjectPLEDGE program education in
September 2009. The $2,000 expense for artwork and printing ofthe total insert was absorbed
by two other Utilities low· income programs included in the insert (Residential Energy Assistance
and Rate Assistance Programs).
The net ProjectPLEDGE donor change from this 30-day, 25,000 Utilities bill effort, was a single
new donor. This poor showing was likely attributable to the downturn of the economy and the
timing of the solicitation. Because of the minimal results from this outreach, staff identified
alternative marketing channels to make program infortnation, materials, and applications more
routinely accessible to both donors and participants. A link to Utilities Financial Assistance
Program was created on the Utilities Department Home Page and staff conducted outreach
through other City departments including Community Services.
In the meantime, annual ProjectPLEDGE funding, applications and disbursements remain steady
with a fund capitalization of roughly $10,000 per year, approximately 100 donors, and 25-30
applicants/recipients.
RESOURCE IMPACT
Donated ProjectPLEDGE funds are held in an account separate from the Utilities Operating
Budget and not comingled with Operating funds. All donated ProjectPLEDGE funds are
distributed to qualifYing applicants consistent with program guidelines. Staff labor is considered
non-material because the time required to administer this particular program is minimal.
POLICY IMPLICATIONS
This report is consistent with the Council's policy direction provided to staff.
ENVIRONMENTAL REVIEW
The update described in this report does not meet the definition of a project pursuant to Public
Resources Code Section 21065, thus no California Environmental Quality Act review is
required.
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CMR: 290:10 Page 2 of 3
ATTACHMENTS
A: June 2,2010 UAC Memo: "Update on the ProjectPLEDGE Program"
B: Extract of Council Minutes 5/18/09 Discussing CMR: 240:09
C: FY 2008-09 ProjectPLEDGE Summary
D: FY 2009-10 ProjectPLEDGE Summary
E: Sept 2009 ProjectPLEDGE Bill Insert
PREPARED BY:
Assistant Director, Customer Support Services
DEPARTMENT APPROVAL: VAi~~~G
Director of Utilities
CITY MANAGER APPROVAL:
CMR: 290:10 Page 3 of3
ATTACHMI<:NT A
MEMORANDUM
TO: UTILITIES ADVISORY COMMISSION
FROM: UTILITIES DEPARTMENT
DATE: JUNE 2, 2010
SUBJECT: UPDATE ON THE PROJECT PLEDGE PROGRAl'Vl
This update on ProjeetPLEDGE is for the Commission's information only. No action is required.
The same information will be provided to the City Council on July 12,2010.
SUMMARY:
This update is to respond to Council's directive to staff on May IS, 2009, when it approved the
changes to ProjectPLEDGE recommended by the Utilities Advisory Commission (UAC). While
approving the changes, however, Council notcd that staff planned to seek additional donations
from the community and to increase community awareness of the program. Council directed staff
to return in one year and report on the success or failure of participation by both donor and
recipients and overhead administrative costs of the program, including marketing costs.
BACKGROUND:
On December 16, 1996, the Council approved the implementation of ProjectPLEDGE as a one
year pilot program (CMR:49S:96). The program's goal was to target and assist Palo Alto
residents who are elderly, handicapped, working low-income families or individuals, and public
assistance families and individuals experiencing unusual hardship such as medical problems, loss
of employment, abandonment, or other situations. ProjectPLEDGE was continued beyond the
pilot period to the current date.
ProjectPLEDGE disburses funds voluntarily donated by Utilities customers monthly which are
applied to the Utilities aceounts of qualifying residential customers having difficulty paying their
Utilities bill due to financial hardship. Ovcr time, the line between the long-term, rate discounted
Rate Assistance Program (RAP) and the crisis-driven ProjectPLEDGE became blurred, with
RAP customers who were experiencing chronic financial hardship, rather than a onc-time crisis,
seeking and receiving ongoing assistance from ProjectPLEDGE. This practice of blending the
two programs affected staffs ability to budget and dispense ProjeetPLEDGE funds to customers
experiencing a one-time crisis.
On May 6,2009, staff requested that the UAC recommend program changes to the City Council
that would more accurately separate and differentiate the goals and objectives between the crisis
Page 1 of3
intervention purpose of ProjectPLEDGE and the long-tenn fmancial support offered under the
rate-discounted "Rate Assistance Program." Those proposed changes for ProjectPLEDGE
included:
Project PLEDGE PROGRAM EUGIBIUfY:
• Recent unemployment by both the account holder and working spouse/domestic
partner;
• Recent unemployment by the account holder, if the spouse/domestic partner does not
work;
• Recent acute medical condition or unreimbursed medical expenses;
• Recent death by either the account holder or spouse/domestic partner
FREQUENCY OF FUNDING:
• One time on!y, for each unique event
RECIPIENT FUNDING LL\fITS:
• Up to $750 (no change from then current practice)
The UAC voted unanimously (4-0, I absent) to recommend staff"s changes to ProjectPLEDGE
to the City Council for approval, after amending the "Frequency of Funding" to read "One time
only, for each unique event", ensuring that recipients would remain eligible for program
assistance more than once, but not for the same event.
On May 18, 2009, the City Council voted unanimously to approve the changes to
ProjectPLEDGE (CMR:240:09), with the stipulation that staff return in one year and report on
the level of participation by both donor and recipients, and on the overhead administrative costs
of the program, including marketing.
DISCUSSION:
Funding
ProjectPLEDGE funding is provided by interested Utilities customers as voluntary contributions
on their own monthly Utilities bill, made in addition to their regular charges. ProjectPLEDGE is
not funded in the Utilities Operating Budget for labor, material, marketing support or other
resources. One hundred percent of the donated funds are disbursed to customers experiencing
financial crises without dilution for program administration or overhead.
Administration
The Utilities Department currently administers ProjectPLEDGE on behalf of those customers
donating funds through their Utilities bill, and ensures that the funds reach those that need them.
Because there are fewer than 30 customers who armually participate in ProjectPLEDGE, the
incremental labor associated with ProjectPLEDGE was considered to be very minimal,
particularly because ProjectPLEDGE participants are usually already involved in one or more of
other current utilities services concerning late or non-payment of bills, payment arrangements,
RAP, or the Residential Energy Assistance Program.
Page 2 00
Marketing
Between 1996 and 2009 when Council approved program changes, there was no marketing
program for ProjectPLEDGE since program initiation. As a result, the original pool of donors
remained fairly static for some period of time, and then slowly declined as customers who were
once donors either left Palo Alto or otherwise closed their Utilities accounts.
In order to increase program awareness and generate additional revenue through donations, a
section of a Utilities bill insert was dedicated to ProjectPLEDGE program education in
September 2009. Since two other programs were also included in the insert, the $2,000 total
expense for artwork and printing of the insert was charged to the two other rate assistance
programs. The net ProjectPLEDGE donor increase from this 30-day, 25,000 Utilities bill effort,
was a single new donor. Ibis was likely due in large part to the downturn in the economy.
Staff evaluated other marketing channels and created a new web page to combine all of the
Utilities Financial Assistanee Programs on a single page:
http://v,ww.citvofualoalto.org/depts/utllnews!
Staff has also conducted outreach and through other City departments and seetions, including
Community Services: Human Services.
In the meantime, ProjectPLEDGE applications and disbursements remain steady with roughly
100 donors and roughly 25 recipients per year, and with a fund of roughly $10,000 per year.
ATTACHMENTS:
A: Extract of Council Minutes 5/18/09 Discussing Cl'vlR: 240:09
B: FY 2008-09 ProjeetPLEDGE Summary
C: FY 2009-10 ProjectPLEDGE Summary
D: Sept 2009 ProjectPLEDGE Bill Insert
PREPARED BY:
APPROVED BY:
TOM AUZEI'o"NE
Assistant Director, Customer Support Services
V AI,ERIE O. FONG
Director of Utilities
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Page 3 00
ATTACHMENTB
t1 BC .. (Former .No. 5)· Utilities Advisory Commission Recommendation to
Approve Changes to the ProjectPLI:;DGE Program. .
Council Member Klein stated concern with the overhead costs outweighing
the size .of the program and questioned the plausibility of referring the
perSons In need of the program to another agency. .
Director of· Utilities, Valerie Fong stated the program had not been mar.,keted
or advertised. The object was tp gainparticipatiQn in. donors and
participants .. '
Assistant Director of Utilities Customer Service, Tom Auzenne stated the
program had operated on an Ad Hoc basis since 1996 and had supported
the least financially secure portions of the community.
MOTION: Council Member Burt moved, seconded by Council Member Yeh
to direct Staff to approve changes to the ProjectPLEDGE customerfinantial
assistance program. .
Council Member Yeh stated due. to the current eeonomic conditions there
may be an increase in participation.
INCORPORTATED INTO THE MOTION WITH THE CONSENT OF THE
MAKER AND SECONDER for Staff to do more marketing for the Program
and report back to Council ina year of the success or failure of participation.
by both donors· and recipients, and overhead administrative costs of the
program.
Council Member Kishimoto asked the number of participants in the Rate
Assistance Program (RAP) program. .
Mr. Auzeline stated the RAP program was designed for long term support
for chronic finance conditions and ProjedPLEDGE was designed for unique
occurrences. He stated the participation in the ProjectPLEDGE program
varied between twenty-five to fifty partiCipants whereas there was currently
2,500 on the RAP program.
Council Member Klshimotoasked how RAP was paid for.
Mr. AuzennE! stated the RAP program was paid for through the rate payers.
Council Member Espinosa asked for information on the costs for the
marketing pro!;lram.
7 , 05/18/09
· Mr. Auzenne stated there were multiple options to market the program with
minimal costs, He stated he would get the information to Council, .
MOTION PASSED: 7-0 Barton, Morton absent
ATTACHMENT C
Beginning Balance $11,427.95
Total Number Average Number of Average
Monthly of Montly Contribution Monthly $
Contribution !l.Iln!m! per Doner Disbursements Disbursement per recipient
Jul·08 803.00 130 6.18 1,974.34 4 493.59
Aug-08 840.00 127 6.61 1,459.60 3 486.53
Sep-08 72300 117 6.18 0.00 0 0.00
Oct-08 843.00 136 6.20 0.00 0 0.00
Nov-DB 729.00 116 6.28 822.66 3 274.20
Dec-D8 809.00 133 6.08 150.00 1 150.00
Jan'()9 767.00 124 6.19 1,368.67 3 45622
Feb'()9 701.00 115 6.10 0.00 0 0.00
Mar-09 761.00 130 ·5.B5 2,671.35 4 667.84
Apr-09 1,523.00 133 11.45 1,789.80 3 596.60
May-09 720.00 48 15.00 1,512.39 4 378.10
Jun-OO 724.00 102 7.10 750.00 1 750.00
Total 9.943.00 12,498.75 26
Ending Balance $8,872.20
ATTACHMENT D
Beginning Ba $8,872.20
Tot.1 Number Average Number of Average
Monthly of Montly Contribution Monthly $
Contribution ponors perOODer Oisbursemel Disbursement per recipient
Jul-Oe 720.00 101 7.13 0.00 a 0.00
Aug-Oe 735.00 100 7.35 15.09 1 15.09
Sep-09 1.065.00 109 9.77 0.00 0 0.00
Oct-09 837.00 111 7.54 2,395.39 4 598.85
Nov-09 855.00 106 7.92 662.16 1 682.16
Dec-09 780.00 112 6.96 631.72 3 210.57
Jan-l0 855.00 85 10.06 182.93 1 182.93
Feb-tO 755.00 111 6.80 1,624.84 3 541.61
Mar-l0 7SO.00 122 6.15 2,775.72 4 693.93
Apr-l0 703.00 12t 5.81 0.00 a
May-1D 703.00 121 5.61 1,000.00 2 500.00
Jun-tO 703.00 121 5.81 I,SOO.OO 3 500.00
Total 9,461.00 10,607.65 22
Ending Balan, $7,525.35
Nole: Contribution and Disbursements estimated for the month of May & June 2010
IT coulo HAPPEN TO YOU
OR YOUR NEIGHBOR
• Sudden job loss for the family wage-earner(s)
• Acute medical emergency ,
• Unexpected non-reimbursed medical costs
• Recentdeath of a family wage-earner
WE CAN HELP EACH Ol'HER
PROJECT PLEDGE
Through the generosity of Palo Alto residents, the City
of Palo A~o Utilities is able to provide one-time utility
bill assistance of up to $750 when unexpected hard
ship strikes. This program, called Project Pledge, is
available to any residential customer who experiences
a sudden need. However, to continue to be effective
Project Pledge funds need to be replenished.
ATTACHMENT E
YOU CAN MAKE A BIG DIFFERENCE
'Please consider adding a mooest tax-dedudlble
donation to your utilities bill payment and help fund
Project Pledge SO that money can be there when you
or your neighbors unexpectedly fall on hard times.
TAKE ACTION TODAY
Choose to make a one-time donation, or pledge a
specific amount monthly, quarterly or annually. To find
out how simple itis to make arrangements for a donation,
email utililitlsoustomllrselVlce@cityofpaloalto.org, call
Utilities Customer Servicesat (650) 329-2161 or
download a pledge form from:
www,cityofpaloalto,orglprojectplellge
~r~ t{u: extfmt permitted fJy law; please con~ult wi~11 your t.ax advisor.
PROJECT PLEOGE-Neigbbors He/ping Neighbors!
" .. "" ....... "', ... , .............. "''',,, .... , .... ,,, ........ ,',, ...... ,,' ... " .. ", ............................. " ........................... " ..... .
The City of Palo Alto Utililies offers other programs of ongoing assistance for low-income customers which are not
supported with Project Pledge funds. For more information about these other services-such as the Rate Assistance
and Residertial Energy Assistance Programs--contact Utilities Customer Services at www.cityolpaloalto.orgfQtlllties
or call (650) 329·2261.
IndMduals wHit disebillUes who fe('lulre aceommodlltlons kll.lccess City fllCiI:tie.s. s~rv!ce,. or pf'tlgl'3ms, or who W<luld like Intorm!lkI~ on the CIty'S compliance with
the Amerlcat'lS with Olsabililles Act (ADA) of 1990, mlIj,-oontaet the City's ADA Coordinator at {650} 329-2550-('1011':6) or e-mail' ada@cil;lofpalOOllO.org
@prlntedon 100% po!£-<:on.umer re(y¢led paper, ~hed without chlorine, . 9{09