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W A T E R I E N E R G Y I l I E E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T T l I T I F S BOARD OF PUBLIC UTILITIES DATE: July 16, 2010 ITEM NO: 15 SUBJECT: LOW INCOME ASSISTANCE — SHARING HOUSEHOLDS ASSIST RIVERSIDE'S ENERGY (SHARE) PROGRAM CONTRACT AMENDMENT ISSUE: Approval of a one year extension, from July 1, 2010 through June 30, 2011 for the Sharing Households Assist Riverside's Energy (SHARE) contract. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve a tenth amendment to the SHARE contract with the Community Action Partnership Of Riverside County to extend the SHARE program from July 1, 2010 through June 30, 2011 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 was established in 1989. SHARE provides low-income residents with utility bill assistance and was originally supported by direct customer contributions that assisted approximately 1,200 households by December 1998. In July 1999, funds allocated from the Low-Income Assistance Public Benefits Program were added to the program. To date, more than 50,000 households have been assisted. The program, along with other county assistance programs, is administered by the County of Riverside Department of Public Social Services— Department of Community Action. Riverside Public Utilities (RPU) entered into a two-year agreement with the County on July 1, 1999 through June 30, 2001. The funding for the original agreement was $345,000. The contract states the City and Grantee may change the level of funding upon mutual agreement. On January 25, 2001, the first amendment to the original agreement was made and entered into to increase the funding to $402,500. A second amendment, entered into on July 25, 2001, addressed the need to extend the term limits and increase funding levels to $690,000 through June 30, 2003. A third amendment addressed extending the agreement until June 30, 2006. The fourth amendment from July 1, 2006 through June 30, 2007, extended the agreement and added $57,500 in funding to assist low-income water utility customers. The SHARE program continued without change through June 2008 under the fifth amendment. The total funding for electricity increased to $900,000, and water funding to $62,500 in the sixth amendment. Funding remained the same under the seventh amendment. Under the eighth amendment, water funding was eliminated and the Public Works Department provided funding in the amount of $102,695 to assist customers in paying the sewer portion of the utility bill. In February 2010, due to an unanticipated increase in demand, $1 million was added to the SHARE funding under the ninth amendment bringing the amount of the contract to $1.9 million in assistance for the electric portion of the utility bill.