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Home My WebLink AboutStaff Report 2993 City of Palo Alto (ID # 2993) City Council Staff Report Report Type: Consent Calendar Meeting Date: 9/4/2012 Summary Title: Low Income Home Energy Assistance Program Title: Adoption of a Resolution Approving and Authorizing the Execution of the State of California Department of Community Services and Development 2012-2014 Direct Payment Program Agreement No. 12Y-1418 Governing the City of Palo Alto Utilities Department's Administration of Home Energy Assistance Program Funds From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council adopt the attached resolution authorizing the City Manager or his designee to execute Direct Payment Agreement No. 12Y-1418 between the California Department of Community Service and Development (State CSD) and the City of Palo Alto for the purpose of making direct payment from State CSD to the Utilities accounts of qualifying low-income residents. Executive Summary The United States Department of Health and Human Services annually distributes authorized funds under the Low-Income Home Energy Assistance Program (LIHEAP) to states to assist eligible low-income households with payments for heating and/or cooling energy expenses. The State CSD then distributes these funds, under its Home Energy Assistance Program, to energy providers under the LIHEAP terms and conditions. LIHEAP eligibility is based on the combined household income of the residence and provides financial assistance of up to $290 annually per qualifying Utilities account. Background LIHEAP financial assistance is based upon the poverty guidelines used by the United States Department of Housing and Urban Development and other federal and state agencies. These guidelines are published annually in the Federal Register by the United States Department of Health and Human Services under the authority of Title 24, United States Code, 9902(2). The current LIHEAP administrator for Santa Clara County is the Sacred Heart Community Service, headquartered in San Jose. The county’s LIHEAP allocation, in combination with a small-scale utility payment assistance program offered by the Society of Saint Vincent de Paul, the ratepayer-supported City of Palo Alto Utilities (CPAU) Rate Assistance Program, and the utility customer-supported voluntary contribution PROJECT PLEDGE program, are the currently available sources of financial assistance for Palo Alto residents with qualifying accounts. Since October 2003, State CSD has required that the City of Palo Alto’s executed LIHEAP Agreement be accompanied by a resolution or ordinance authorizing CPAU participation and execution of the provisions of the Agreement. Discussion LIHEAP payments are restricted to the electric and/or natural gas portion of the CPAU customer bill, and the Agreement with State CSD provides for one energy payment per funding year to qualifying low-income families. Although the LIHEAP agreement refers to both the Home Energy Assistance Program and the Energy Crisis Intervention Program, the City is only participating in the Home Energy Assistance Program at this time. State CSD, through its county administrator, provides the applying utility customer with program intake services, including verification of eligibility and determination of allowable LIHEAP payment. CPAU is provided with the names of applicants determined to be eligible for LIHEAP assistance, and maximum payment to be applied to the Utilities account. The elapsed time from CPAU customer initial LIHEAP application to Sacred Heart Community Service, verification of program eligibility, determination of funding amount, and direct payment by State CSD to CPAU, averages eight weeks. In Fiscal Year 2011-12, there were 103 Palo Alto Utility residential accounts receiving $22,838 in LIHEAP direct payments (averaging $221.73 per customer). The Direct Payment Agreement is a no-cost contract, but participartion by the City in LIHEAP results in a minor workload impact for CPAU Customer Service and Credit and Collection staffs for local program administration (including coordination with other local financial assistance programs), customer contact and referral, and payment tracking, investigation and reconciliation. Resource Impact The estimated impact of LIHEAP on the Utilities Department staff is less than 50 hours per fiscal year. Policy Implications The recommendation is consistent with the Council approved Utilities Strategic Plan Strategic Plan Strategy BP6. “Offer programs to meet the needs of customers and the community.” Environmental Review The adoption of this resolution does not meet the definition a project under Public Resources Code Section 21080 or Section 15378 of the CEQA Guidelines, and therfore no California Enviromental Quality Act assessment is required. Attachments:  Attachment A: Resolution (PDF)  Attachment B: City of Palo Alto Direct Payment Agreement No. 12Y-1418 (PDF) Prepared By: Raveen Maan, Senior Resource Planner Department Head: Valerie Fong, Director City Manager Approval: ____________________________________ James Keene, City Manager *NOT YET APPROVED* 1 120815 dm 6051765 Resolution No. ____ Resolution of the Council of the City of Palo Alto Approving and Authorizing the Execution of the State of California Department of Community Services and Development 2012-2014 Direct Payment Program Agreement No. 12Y-1418 Governing the City of Palo Alto Utilities Department's Administration of Home Energy Assistance Program Funds R E C I T A L S A. The City of Palo Alto (“City”), a California charter city, has offered energy assistance to families of low-income since 1981 as a part of the City’s Low Income Home Energy Assistance Program; and B. The United States Department of Health and Human Services annually distributes authorized funds under the Low-Income Home Energy Assistance Program (“LIHEAP”) to states to assist eligible low-income households with payments for heating and/or cooling energy expenses. The State of California Department of Community Services and Development (“State CSD”) then distributes these funds, under its Home Energy Assistance Program, to energy providers under the LIHEAP terms and conditions; and C. The City has a contract (the "Direct Payment Program Agreement") with the State of California to provide direct credit to the accounts of Palo Alto residents who have been identified by the State CSD as recipients of payments to be made under and in accordance with LIHEAP, which includes the Home Energy Assistance Program; and D. The Direct Payment Agreement No. 12Y-1418 is for the term July 1, 2012 through September 30, 2014; NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby authorizes the City of Palo Alto to enter into and execute with the State of California Department of Community Services and Development the 2012-2014 Direct Payment Program Agreement. // *NOT YET APPROVED* 2 120815 dm 6051765 SECTION 2. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21080 or Section 15378 of the CEQA Guidelines and, therefore, no California Environmental Quality Act environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: ______________________________ ______________________________ City Clerk Mayor APPROVED AS TO FORM: ______________________________ City Manager ______________________________ Sr. Deputy City Attorney ______________________________ Director of Utilities ______________________________ Director of Administrative Services