Loading...
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