09-16-11 BPU RPT 12 - Laserfiche WebLink

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W A T E R E N E R G Y I i F F RIVERSIDE PUBLIC UTILITIES - ._ Board Memorandum P U 9 L I C U T I L I T I f 5 BOARD OF PUBLIC UTILITIES DATE: September 16, 2011 ITEM NO: 12 SUBJECT: LOW INCOME ASSISTANCE — SHARING HOUSEHOLDS ASSIST RIVERSIDE'S ENERGY (SHARE) PROGRAM CONTRACT AMENDMENT ISSUE: That the Board of Public Utilities consider approval of a one year extension, from July 1, 2011 through June 30, 2012 for the Sharing Households Assist Riverside's Energy (SHARE) contract. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve an eleventh amendment to the SHARE contract with the County of Riverside Department of Public Social Services — Department of Community Action (County) to extend the SHARE program from July 1, 2011 through June 30, 2012 in the amount of$1.9 million; and 2. Authorize the City Manager, or his designee, to approve payments up to 25 percent, or $475,000, above the SHARE contract amount if allocated funds are depleted before the contract term ends. BACKGROUND: The SHARE program, established in 1989, is a Riverside Public Utilities (RPU) Public Benefit program that provides low-income residents with utility bill assistance. Originally supported by direct customer contributions, in 1999 under the guidelines of Assembly Bill (AB) 1890, which authorizes local utilities to spend Public Benefits Charge funds for low-income assistance, Public Benefits funds were added to support the electric portion of the program. On July 1, 1999, the City of Riverside entered into an agreement with the County to administer the program. The original agreement has been extended 10 times as the program has been working effectively, and the program has assisted approximately 57,000 residential customers. The SHARE program continues to successfully fulfill the AB1890 obligation and, therefore, an eleventh amendment that extends the contract for one year is justified. The funding will remain at $1.9 million, with approximately $1.633 million towards customer assistance and approximately $267,000 for the County's administration fee to continue assisting low-income residents that apply for the aid. Assistance will be $150 per eligible low-income customer for the electric portion of their utility bill on a one-time per "anniversary" year basis from receiving the aid. Staff recommends that the City Council approve change order authority to the City Manager of up to 25 percent, or $475,000, above the contract amount In previous years, especially those during times of economic hardship, this additional funding was necessary to cover the cost for all applicants that applied. While staff anticipates that the allocated funds will be sufficient, RPU wants to ensure that its low-income customers can receive assistance without delay if demand for the SHARE program is higher than anticipated during the duration of the SHARE contract.