FOR: Water Subcommittee Meeting [January 24, 2024]
TO: Honorable Water Subcommittee Members
APPROVAL: Stephen Dopudja, P.E., Interim Utilities Manager
Toyasha Sebbag, Assistant to the City Manager
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Update on the placement on the City Council’s agenda: 1) the Ratification of Accepting $402,237.74 for Water and $5,677,933.19 for Wastewater from the State Water Resources Control Board’s California Water and Wastewater Arrearage Payment Program and Authorizing $13,168.01 in Water and $28,843.59 in Wastewater to return unused funds; and 2) Accepting $1,824,579.14 from the State Water Resources Control Board’s California Extended Water and Wastewater Arrearage Payment Program.
(RECEIVE AND FILE)
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BACKGROUND:
In 2021, funding was established by Assembly Bill No. 135 (Chapter 85, Statutes of 2021) for the California Water and Wastewater Arrearage Payment Program (CWWAPP). This program was administered by the State Water Board (SWRCB). The program allowed utility providers to apply directly to the SWRCB for their eligible residential and commercial customers. The funding covered water debt from residential and commercial customers accrued between March 4, 2020, and June 15, 2021. The application period for these funds ended on April 1, 2022, and the SWRCB disbursed over $385 million of the $985 million federal allocation to water and wastewater systems for residential and commercial arrearages.
Rialto Water and Wastewater Arrearages Allocation
As authorized by staff, Rialto Water Services (RWS)/Veolia identified 1,119 water accounts and 70 commercial accounts eligible for the program, for a total request of $402,237.74 submitted to the SWRCB for water accounts. This check was issued to the City on January 12, 2022. The check included a maximum of 3%, up to 1 million dollars, whichever was less, as administrative reimbursable costs. After the disbursement of money to the water accounts and administrative overhead costs, $13,168.01 was returned to the SWRCB on March 14, 2022.
As authorized by staff, RWS/Veolia identified 1,394 wastewater accounts and 67 commercial accounts eligible for the program, for a total request of $567,793.19 submitted to the SWRCB for wastewater accounts. This check was issued to the City on May 20, 2022. The check included a maximum of 3%, up to 1 million dollars, whichever was less, as administrative reimbursable costs. After the disbursement of money to the wastewater accounts and administrative overhead costs, $28,843.59 was returned to the SWRCB on August 2, 2022.
The processing of funds, including acceptance, disbursement, and return, was not formally presented to the City Council for staff authorization. Staff requests feedback to officially acknowledge and endorse this procedure in an upcoming City Council Agenda to contribute to our financial processes of continued transparency and efficacy.
ANALYSIS/DISCUSSION
On July 10, 2023, Governor Newsom signed a budget trailer bill expanding the Arrearages Program. This new Extended Water and Wastewater Arrearage Payment Program extended the COVID-19 Relief Period from June 16, 2021, to December 31, 2022, with the state legislature allocating the remaining $600 million in federal funding for this Program. The new Extended Arrearage Program allows utility providers to include both water and wastewater debt from residential and commercial customers.
As authorized by staff, RWS/Veolia identified $760,272.59 in residential water accounts, $73,452.68 in commercial water accounts, $881,002.39 in residential wastewater accounts, and $94,258.47 in commercial wastewater accounts, $15,593.01 in 3% allocation of total arrearage request for a total of $1,824,579.14 in arrearages payment amount requested. This amount was submitted to the SWRCB on December 13, 2023.
The Extended Arrearage Program had a 60-day application period running from November 1, 2023, through December 31, 2023, for both water and wastewater arrearages. Disbursement of these funds is scheduled to begin immediately after.
Acceptance of these funds and their allocation to water and wastewater arrearages accounts is proposed to be formally presented to the City Council for staff authorization in an upcoming City Council Agenda to contribute to our financial processes of continued transparency and efficacy.
RECOMMENDATION:
Update on the placement on the City Council’s agenda: 1) the Ratification of Accepting $402,237.74 for Water and $5,677,933.19 for Wastewater from the State Water Resources Control Board’s California Water and Wastewater Arrearage Payment Program and Authorizing $13,168.01 in Water and $28,843.59 in Wastewater to return unused funds; and 2) Accepting $1,824,579.14 from the State Water Resources Control Board’s California Extended Water and Wastewater Arrearage Payment Program.