HomeMy WebLinkAboutMemo - Mail Packet - 11/17/2020 - Memorandum From Lisa Rosintoski And Gretchen Sanford Re: Suspension Of Low-Income Energy Assistance Program (Leap) Vendor Agreement For 2020-2021 Season
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
DATE: November 5, 2020
TO: Mayor Troxell and Councilmembers
FROM: Lisa Rosintoski, Deputy Director, Utilities Customer Connections
Gretchen Stanford, Interim Deputy Director, Utilities Customer Connections
THROUGH: Darin Atteberry, City Manager
Mark Kempton, Acting Interim Utilities Executive Director
RE: Suspension of Low-Income Energy Assistance Program (LEAP) Vendor Agreement for
2020-2021 Season
Bottom Line: The purpose of this memo is to notify Councilmembers about the decision to suspend the
2020-2025 Low-Income Energy Assistance (LEAP) Vendor Agreement for the upcoming LEAP season
(November 1, 2020 – April 30, 2021).
Background: The Utilities Affordability Programs (UAP) are a suite of offerings to help low-income
customers reduce their utility burdens (the percentage of household income spent on utilities). Fort Collins
Utilities (FCU) became a LEAP vendor in 2016 as part of the UAP offerings. Acting as a LEAP vendor
enables Utilities to process direct assistance payments from LEAP on behalf of customers. LEAP is also tied
to other UAP programs that will not be impacted by this decision, e.g., FCU’s Income-Qualified Assistance
Program will not be affected by this temporary suspension with LEAP, as explained below.
The decision to suspend FCU’s LEAP vendor status arises from a condition of the 2020-2025 LEAP Vendor
Agreement that LEAP payments only be applied to customers’ electric service charges. With the current
utility billing system, utility bills are treated as a single, consolidated balance, irrespective of the line item
sums due to each utility.
Staff pursued Code Changes
(approved September 19,
2020 by Council) to allow
for LEAP payments to be
applied only to electric
charges; however, without
functionality that will be
available in the new utilities
billing system (OSF) it
would not be possible to
assure LEAP payments were
only applied to electric
service charges.
DocuSign Envelope ID: 677BFF80-9213-4C5C-AFA0-C4667DE0C9DE
11/4/2020
11/4/2020
11/6/2020
11/8/2020
Staff evaluated options to maintain LEAP vendor status for the 2020-2021 LEAP season and determined
each would be costly, time-intensive and could lead to payment processing errors. Temporarily suspending
the agreement will instead allow customers to continue receiving benefits and allow FCU teams additional
time to integrate the LEAP Vendor Agreement requirements in a more efficient and effective manner.
Program and Customer Impacts
Suspending the LEAP Vendor Agreement for one year will nominally impact 205+ customers that receive
LEAP payments through FCU. The suspension will impact the way customers receive LEAP assistance
payments and their benefit will be calculated in a slightly different manner.
When FCU serves as a LEAP vendor, the Utilities Billing team receives and processes direct LEAP
payments on behalf of customers. When the Utility is not a LEAP vendor, customers instead receive their
benefit individually on an Electronic Benefits Transfer (EBT) card or via their bank account. For customers
that receive their payments on an EBT card they must take additional steps to apply those funds to their
Utility account because Utilities does not currently accept EBT cards as a form of payment. Without the
vendor status with LEAP, FCU customers will need to use the EBT card to get cash out and pay their utility
bills using cash or another form of accepted payment.
Utilities explored becoming an EBT merchant to minimize impacts to customers and learned that the process
takes six months or longer to complete. Due to the LEAP season ending in April, staff determined it would
not be beneficial to pursue EBT merchant status at this time.
The following flow chart illustrates the difference in FCU acting as a LEAP vendor and not acting as a
LEAP vendor:
DocuSign Envelope ID: 677BFF80-9213-4C5C-AFA0-C4667DE0C9DE
FCU UAP programs not affected
The UAP has five main components, two of which are connected to LEAP. Being a LEAP vendor is not
required to continue administering any of the five key offerings. The Income-Qualified Assistance Program
(IQAP) uses LEAP enrollment as the qualifier for the reduced-rate received on applicable Fort Collins utility
services. Due to a separate Data Sharing agreement with LEAP though, the IQAP will continue to operate
without the Utility serving as a LEAP Vendor.
Next Steps
Utilities customers that received LEAP benefits through FCU during the 2019-2020 LEAP season have been
notified of the change via a letter (see attached). Utilities Customer Service Representatives have speaking
points so they can field questions about the change. Additionally, UAP staff are working with LEAP staff to
ensure a smooth transition for our customers.
CC: Pete Iengo, Interim Manager, Community Engagement
Jamie Gaskill, Program Specialist Supervisor, Community Engagement
Lori Clements, Senior Manager, Customer Care and Technology
DocuSign Envelope ID: 677BFF80-9213-4C5C-AFA0-C4667DE0C9DE
Esta información puede ser traducida, sin costo para usted. 970-212-2900
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
November 2, 2020
RE: Change in Low-Income Energy Assistance Program (LEAP) Payment Processing
Dear [NAME],
Our records indicate that you received LEAP payments via your utility bill during the 2019-2020 LEAP
season. For the 2020-2021 season, Fort Collins Utilities will not participate as a LEAP vendor. If you
apply for and receive LEAP benefits in the 2020-2021 season, this change will impact how you
receive your LEAP benefits.
Instead of LEAP benefits being applied directly to your Utilities bill, LEAP will issue the payments to
you via an Electronic Benefits Transfer (EBT) card or your bank account. Utilities is not currently
accepting EBT cards as a direct form of payment. Accepted payment types include cash, check,
credit/debit card or online withdrawal from a bank account.
Paying Your Bill
To apply your LEAP benefits to your Utilities account balance from an EBT card, withdraw the EBT
funds as cash at an EBT merchant such as a bank or grocery store and then pay your bill:
• In person at First National Bank drive-through locations
• At the counter at 222 Laporte between 8 a.m. and 5 p.m. Monday through Thursday
• In the drop box located in the alley just east of the 222 Laporte Ave. building with the bill stub
and envelope sent with your bill
If the LEAP benefits are issued to your bank account, the following methods to pay your bill are
available to you, in addition to the options above:
• By mail with the bill stub and envelope sent with your bill
• By phone 24/7 at 970-212-2900
• Online at fcgov.com/utilities
We regret any inconvenience this change causes you. If you have questions about the change, call us at
970-212-2900. If you have questions about LEAP and how the EBT card process works, contact LEAP at
866-432-8435. For additional information about LEAP, visit Colorado.gov/CDHS/LEAP.
Sincerely,
Fort Collins Utilities
970-212-2900
utilities@fcgov.com
fcgov.com/payment-options