REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Dahle Bulosan, Chief Financial Officer
Subject:
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Request for approval to suspend Water Shutoffs to Residential and Business Customers in Response to COVID-19 by adopting Resolution No. 2020-17
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Statement of Issue:
In response to the economic effects of the COVID-19 pandemic, formal City Council approval is requested to authorize the temporary suspension of water shutoffs, penalties and/or late fees to residential and business customers until May 31, 2020, unless extended by the Governor's orders, and to authorize staff to develop a no-interest payment deferral option for customers financially impacted by the COVID-19 situation.
Financial Impact:
While it is difficult to precisely estimate the revenue impact from a temporary suspension of water shutoffs for residential and business customers until May 31, 2020, initial analysis conducted by staff indicates a probable 10% delinquency rate, which would result in a $322,500 financial impact on various funds - Water Fund ($259,500), Water Master Plan ($4,000), Sewer Fund ($14,000), Refuse Fund ($30,000), and General Fund ($15,000). Of note, the utility bills less late fees are still considered an obligation that will need to be paid over time, and customers who request a payment deferral plan will be allowed a no-interest repayment plan that lasts up to two (2) years.
Recommended Action:
recommendation
Adopt Resolution 2020-17, "A Resolution of the City Council of the City of Huntington Beach Establishing City Policy on Termination of Residential and Business Water Service in Response to COVID-19."
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Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
The City of Huntington Beach (City) provides water service to over 45,000 single-family residential customers, 4,600 multi-family residential customers, and ...
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