HomeMy WebLinkAboutMemo - Mail Packet - 11/3/2020 - Memorandum From Gretchen Stanford And Lance Smith Re: Resuming Utility Disconnects On November 13
Utilities
electric · stormwater · wastewater · water
222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: October 29, 2020
TO: Mayor Troxell and Councilmembers
FROM: Gretchen Stanford, Interim Customer Connections Deputy Director
Lance Smith, Utilities Strategic Finance Director
THROUGH: Darin Atteberry, City Manager
Theresa Connor, Interim Utilities Executive Director
RE: Resuming Utility Disconnects on November 13
Bottom Line: As our community continues to navigate the effects of the COVID-19 pandemic,
Fort Collins Utilities is resuming normal operations. Like many utilities, we have not turned off
utility services due to non-payment since March 2020. Payments for utility service are essential
for us to continue delivering reliable and high-quality electric, water, wastewater, and
stormwater services. Notifications and outreach have been occurring on a regular basis with our
delinquent (non-payment) customers that disconnects (shut offs) will resume November 13.
Fort Collins Utilities’ priority has been to provide delinquent customers with access to resources,
financial assistance, and payment arrangements during this challenging time.
Background: When COVID-19 began, the Governor issued and extended an executive order
that provides relief to public utility customers affected by COVID-19. It bans the imposition of
reconnection and/or late fees for utility payments. While we have been assessing late fees
consistent with City Code, Utilities is reversing any assessed late fees and crediting all accounts
that have already paid any late fees for the period of March through November. This executive
order does not pertain to disconnections for non-payment, which expired in July.
The existing disconnect process during normal operations is based on the following schedule:
During COVID-19, this schedule has not been in place. As we resume normal operations again,
we will be sending our first disconnect notice starting November 13 based on Utility cycles.
DocuSign Envelope ID: 6688722C-9E8F-4878-95CC-4393817C7063
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There are nine Utility cycles based on customer type and address. Once a customer receives a
disconnect notice, they typically have 7-10 days before their utilities are actually shut off giving
them additional time to call Utilities to either pay their bill or make a payment arrangement.
Based on the account holder and the services provided, electric and/or water services could
possibly be turned off. Some utilities are turned off remotely and some are not, this is decision is
made based on quantity, resources, timing, weekends, holidays and more.
As you can see from the graph below, the total number of delinquent accounts had been trending
slowly downward since a peak in May, even though mailing of disconnect notices was
suspended. Due to peak season for property move ins and outs, September shows a notable
increase in the number of eligible accounts. It is important to note that less than 1% of the
delinquent accounts are on Utilities’ Income Qualified Assistance Program (IQAP).
In regards to communications to our customers, our approach has been to educate our deliquent
customers with resources, payment assistant options and encouraging them to call Utilities to set
up a payment arranagment. As you can see from the timeline below, we have provided three
letters to customers outlining awareness that they are late on their utility bill. Additional outreach
was also conducted to commercial customers with delinquent balances.
DocuSign Envelope ID: 6688722C-9E8F-4878-95CC-4393817C7063
On October 12, our CARES Act Utility Bill Assistance program
launched, utilizing $400,000 in funding, with $350,000 allocated
for residential customers and $50,000 allocated for commercial
customers. Based on $3.1M in past due revenue, we anticipate
these funds to help approximately 900 customers (850
residential, 50 commerical).
The program provides up to $600 in assistance to residential
customers and up to $1,200 in assistance to small business
customers, which will be applied as a bill credit directly to a
customer’s account. The average payment for deliquent
residential customers is $75/month and is variable for
commercial customers based on business size and type of
operation. To date, ~300 residential customers have received
$119,500 in assistance and ~2 commercial customers have
received $1,895 in assistance.
The week of October 12, customers with deliquent accounts
received a postcard in the mail (see below) notifying them of the
program. The week of October 19, this program and other
assistance programs were also referenced in the letter customers
received notifying them that disconnects would resume
November 13 (on the right). Applications are being accepted until November 12 on a first-come,
first-served basis. Disconnects will resume after this program closes to give customers ample
time to apply for assistance.
DocuSign Envelope ID: 6688722C-9E8F-4878-95CC-4393817C7063
For your information, a story is expected to run in the Coloradoan this week on this topic.
CC: Lori Clements, Utilities Customer Care & Technology Manager
Heather Young, Utilities Education Supervisor
DocuSign Envelope ID: 6688722C-9E8F-4878-95CC-4393817C7063