HomeMy WebLinkAbout065 - 06/07/2016 - CODIFYING THE UTILITIES PAYMENT ASSISTANCE PROGRAM AND AMENDING CHAPTER 26 OF CITY CODE TO AUTHORIZEORDINANCE NO. 065, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CODIFYING THE UTILITIES PAYMENT ASSISTANCE PROGRAM
AND AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO AUTHORIZE EXPENDITURE OF AMOUNTS DONATED
TO THE PROGRAM AND FORFEITED UNCLAIMED AND ABANDONED
INTANGIBLE PERSONAL PROPERTY HELD BY THE UTILITIES
PURSUANT TO DIVISION 4, ARTICLE IV OF CHAPTER 23 OF THE CODE
WHEREAS, in 2004, the City began a utility payment assistance program for the City's
residential electric and water service customers who meet certain financial criteria, known as the
Payment Assistance Program (the "Program"); and
WHEREAS, the purpose of the Program is to provide financial assistance to residential
utility customers experiencing a financial crisis so they may remain current with their utility bills
and avoid the shut-off of utility services; and
WHEREAS, the Colorado Low-Income Energy Assistance Act, codified at Colorado
Revised Statutes Sections 40-8.7-101 et seq., requires investor-owned utilities to contribute to a
state low-income energy assistance payment program(LEAP), and calls for municipal utilities to
create their own local payment assistance programs; and
WHEREAS, the Program qualifies as a local energy assistance payment program under
the Low-Income Energy Assistance Act; and
WHEREAS, the City administers the Program through a services agreement with a third
party -- Catholic Charities Northern from January 2004 through 2015, and currently Energy
Outreach Colorado; and
WHEREAS, until recently, the City has funded the Program exclusively through
donations from Fort Collins Utilities customers, and beginning in 2016, the Program has also
received matching funds from Energy Outreach Colorado, with one hundred percent of the funds
donated being used to administer emergency financial assistance for City utility customers; and
WHEREAS, the Program financial criteria direct temporary residential assistance to
financially-challenged customers who have received a past due utility bill notice, including but
not limited to seniors on fixed incomes, disabled customers, and low-income individuals; and
WHEREAS, the Program grew from helping 218 customers with $16,680 in donations in
2004, to the current five-year average (for 2011 through 2015) of helping 339 customers
annually with approximately $36,475 in annual donations; and
WHEREAS, in recent years, a continual increase in the number of utility customers
seeking utility bill assistance has out-paced the annual rate of donations.to the Program; and
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WHEREAS, consistent with the Unclaimed Property Act and Unclaimed Utility Deposit
Act, codified at Colorado Revised Statutes Section 38-13-101 et seq., and Section 40-8.5-106,
respectively, the City has adopted in Division 4 of-Article IV of the City Code Chapter 23
procedures for the disposition of unclaimed and abandoned intangible personal property held by
Utilities, such as account credit balances, escrows, overpayments, and deposits ("Unclaimed
Property Procedures"); and
WHEREAS, pursuant to the Unclaimed Property Procedures, the funds coming from the
utility service account credit balances, escrows, overpayments, deposits, and other intangible
personal property held by Utilities that are forfeited after the property owner is given notice and
a-significant period of time to claim the property, are transferred to the Program account and
become available for Program purposes, along with direct donations and other funds; and
WHEREAS, the Council desires to codify and authorize the.Utilities Executive Director
to administer the Program in accordance with the guidelines and criteria described herein; and
WHEREAS, the Council further desires to codify and authorize the amount and methods
for funding the Program, including the use of monies received through the Unclaimed Property
Procedures, as described herein; and.
WHEREAS, if the rate of donations; transfers under the Unclaimed Property Procedures,
and other financial contributions to the Program exceed customer demand for payment
assistance, Council may authorize use of Program funds for other purposes that advance utility
conservation and efficiency programs for low-income customers.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any .and all determinations and
findings contained in the recitals set forth above.
Section 2. That the Council hereby finds that a Utility Payment Assistance Program
administered by the City, directly or through a third party, to assist residential customers that
meet certain financial criteria to remain current with City utility bills serves important utility
purposes and objectives, including but not limited to reducing administrative expenses associated
with billing, collection, and shut-off activities; reducing sudden system demand increases upon
reconnection of 'services to customer premises; and stabilizing demand on other City and
regional utility public assistance programs.
Section 3. That the Utilities Executive Director is hereby authorized to administer
said Utility Payment Assistance Program directly or through a third party in a manner consistent
with the methods described herein.
Section 4. That Section 26-1 of the Code of the City of Fort Collins is hereby
amended by the adoption of a new definition "Payment assistance program" which reads in its
entirety as follows:
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Payment assistance program shall mean a financial assistance program implemented by
the utilities to provide temporary financial assistance to qualified utility customers in
paying utility service account balances, funded by donations from other City utility
customers, unclaimed funds held by the utilities forfeited to the City under Division 4 of
Article IV of Chapter 23 of the Code, and such other funds as may be made available for
such purposes from time to time.
Section 5. That Chapter 26, Article XII of the Code of the City of Fort Collins, is
hereby amended by the addition of a new Section 26-722 which reads in its entirety as follows:
Sec. 26-722. Utility Payment Assistance Program; purpose; funding; qualifications
for assistance.
a) The Utility Payment Assistance Program, is hereby formally established for the
purpose of providing temporary financial assistance to qualified utility customers in
paying past-due utility bills: For purposes of this Section, "past-due" shall mean a utility
bill that has not been paid by the customer within twenty three (23) days after the printing
of such utility bill.
b) All deposits, bill credits, refunds,.donations, escrows, and any other intangible
personal property, held by the utilities and forfeited under §23-137, together with all
donations from City utility customers and such other funds as may be made available
from time to time for the Utilities Payment Assistance Program, shall be deposited into
the Utilities Payment Assistance Program.
c) Balances in the Utilities Payment Assistance Program account may be used only
to pay all or a portion of the monthly utility bill of qualified electric and water utility
customers, and only consistent with the following conditions:
1) the subject service account must be in the applying customer's name;
2) the monthly bill to which funds are applied must.be past-due;
3) the applying customer must not have previously received financial
assistance from the Program within the current program cycle (Oct. 1-Sept. 30);
4) no financial assistance provided through the Program may be applied to a
service account deposit; and
5) the applying customer must comply with all other conditions and
qualifications set forth in guidelines adopted by the Utilities Executive Director,
consistent with the purposes of the Program.
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d) The operation of the Program is contingent upon appropriation of funds for the
Program.
Introduced, considered favorably on first reading, and ordered published this 17day of
May, A.D. 2016, and to be presented for final passage on the 7th day of June, A.D. 2016.
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ATTEST:
City Clerk
Passed and adopted on final reading on this 7th day of June, A.D. 2016.
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