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HomeMy WebLinkAboutAgenda - 01-21-2003-9aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 21, 2003 Action Age a Item No. -,cL SUBJECT: Social Safety Net Transfer to Supplement Emergency Assistance Funding DEPARTMENT: Social Services PUBLIC HEARING: (YIN) No ATTACHMENT(S): INFORMATION CONTACT: Emergency Energy Assistance Report Nancy Coston, ext. 2802 Sharron Hinton, ext. 2302 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To provide updated information on emergency assistance programs and on the relationships with the utility companies and service providers, and to request supplemental funds for emergency assistance payments during this budget year. BACKGROUND: Last year, the Board received a preliminary report on the work of a committee formed by the County Manager to review and improve the procedures used to help families with financial crises, particularly crises related to utility costs. This group has continued to work on the issues identified last year and a report on its efforts is attached for BOCC review. Some highlights from that report include: Social Services is now the guarantor for utility deposits (rather than paying those funds upfront); financial counseling is being offered to families receiving emergency assistance; and there is an ongoing effort to identify ways to improve the community's response to these needs. Social Services is also requesting additional funds to assist families in crises. The current budget for emergency assistance is significantly less than the amount spent last year. The budget was developed before the impact of several changes in the program were known. Economic conditions have also resulted in more families losing wages and needing assistance. Therefore the agency is requesting that $61,735 be made available from the social safety net contingency fund set aside in the annual budget to address these needs. Some of these funds ($35,000) will assist families with children using the Work First guidelines and will therefore count as part of the Maintenance of Effort requirement for the Work First Block Grant. This would increase the budget for this item from $65,000 to $100,000. Last year's expenditures totaled $180,944. The other requested funds ($26,735) will be used for families without minor children through the County General Assistance program. This would increase this program's budget to $112,000 compared to expenditures of $110,502 during last year. 2 FINANCIAL IMPACT: The County's current 2002-03 fiscal year budget includes a "reserve fund" totaling $300,000 to be used as a funding "safety net" to cover some of the State budget cuts that County departments may experience. To-date, no funds have been appropriated from the reserve fund. On October 21, 2002, staff presented an updated list totaling about $95,000 related to funding cuts that County departments anticipated as a result of the approved State budget. Staff also indicated to the Board at that time that DSS would potentially need to tap into the reserve to fund additional emergency energy assistance for clients. Funding needs identified to-date total $157,124. The chart below outlines the State budget cuts identified for the Board in October along with the funding needs identified in the background section above: Needs Identitifed October 21, 2002 to Offset State Budget Cuts DSS Local DSS Administration - offsets costs of public assistance programs $15,000 State Management Services for Children & Adults - decrease in Medicaid reimbursement rate $45,000 State Aid to Counties - offsets overall departmental costs $8,740 Health Temporary Assistance for Needy Families (TANF) - funding for "Out of Wedlock Births" program elimination at state level $10,000 Health Promotions - program funding reduced $2,500 Increase in lab rates (for pap smears) charged by State labs $4,500 Library Reduction in State Aid to Libraries $9,649 Needs Identified October 21, 2002 $95,389 Additional DSS Emergency Energy Assistance Needs Assistance for Work First families with minor children $35,000 Assistance for families without minor children $26,735 Needs Identified January 21, 2002 $61,735 Total Needs Identified To-Date $157,124 It is important to note that the list above is a compilation of items that staff is aware of at this point and is not meant to be an all-inclusive list. Staff will continue to update the Board as additional information becomes available regarding additional funding reductions. RECOMMENDATION(S): The Manager recommends that the Board accept the report and appropriate $61,735 from the social safety net reserve fund to Social Services to meet emergency needs. ORANGE COUNTY EMERGENCY ENERGY ASSISTANCE PROGRAMS STATUS REPORT January 2003 PURPOSE On November 14, 2001, the Orange County Manager organized a work session with local utility companies, the Department of Social Services and non-profit agencies to identify the current needs and issues related to providing emergency services, particularly utilities, to low-income residents. The representatives at the meeting discussed the current economic situation in the county, the demand for emergency services, the actions being taken by utility companies to address the need and the resources available from charitable and public organizations to serve these families. As a goal of the group, representatives were asked to outline their operating procedures and eligibility requirements for their current emergency assistance programs. A draft report was presented to the Board in January 2002. Since that time, the work group has convened twice and provides the following updated information. SERVICE PROVIDERS A. Orange County Department of Social Services The Orange County Department of Social Services is the primary county agency providing for the financial needs of low-income families. Demand for all public assistance programs has been increasing (about 10% overall. in this calendar year). Requests for emergency assistance payments were over 85% higher in October of 2001 compared to October 2000. 1. Crisis Intervention Program (CIP) - provides financial help to households that are in a heating or cooling-related emergency. (NOTE: In January 2002, the Department of Social Services depleted its allocation of federal Crisis Intervention Funds for energy assistance. As a result, the Department used Work First funds and a special allocation from the Board of County Commissioners in the amount of $30,000 to assist persons in emergency situations.) Program Eligibility Household must meet an income test (150% of the poverty level) Household must be in a heating or cooling- related emergency Household experiencing unusual and/or unexpected expenses ¦ Decrease in the household's income ¦ Fuel supply is exhausted or terminated ¦ Notice has been received notifying household of termination of heating/cooling source ¦ Outside temperature is severe; or the 2 to 3 day forecast predicts severe temperatures ¦ The heating or cooling source is in need of repair ¦ Lack of a heating or cooling source places someone's life at risk (infant, young child, disabled or elderly person, or household member who is ill and susceptible to a health- related emergency if heating or cooling needs are not met) ? Program Update: Eligibility criteria, which are set by the state, remain the same although there has been an increase in the annual maximum household benefit from $300 to $600. These are 100% federal funds and must be used for heating and cooling crises. Benefit Level: $300 per application and $600 per household per year 2. Temporary Assistance for Needy Families-Emergency Assistance (TANF-EA) - provides assistance to families primarily for utilities and housing needs. Funds can also be used for transportation, and medical services. ? Program Update: Eligibility remains the same but families are limited to $100 instead of the previous $200 in any six-month period. All recipients are referred for financial counseling and must have met with a financial counselor prior to applying for assistance a second time within a twelve-month period. Program Eligibility ¦ Families must meet an income test (200% of poverty and asset limit of $3000) ¦ Families must include at least one child under the age of 18 who lives with a specified relative (includes parents, blood, half blood, step or adoptive relatives up to 2nd cousins) ¦ Families must be involved in an emergency situation, e.g. catastrophic illness, natural or man-made disaster ¦ There must be destitution of needy child/family; loss of supporting relative, child at risk of removal from home or return to home of a child may create an emergency Benefit Level: $100 per household per year (Must be used within a 30-day period) 2 5 3. County General Assistance -provides same assistance as CIP and TAN F- EA ? Program Update: The same rules and limits apply to these funds as apply to the Emergency Assistance through the Work First Block Grant. Work First funds, however, can only be used for families with minor children whereas the County General Assistance funds can be used for all populations. Program Eligibility ¦ Family must meet an income test (130% of Poverty and asset limit of $1500) ¦ Family must be involved in an emergency situation as described above for CIP and TANF-EA Benefit Level: $100 per family per 6 months 4. Update: Guarantor Program - Last year the County established a guarantor program with the utility providers. This allows the County to guarantee payment of deposits if families default rather than paying the deposits to initiate service. The County is released as the guarantor after the family establishes a successful payment history with the utility company (usually 12 months). Program Budgets and Expenditures Program Budget 2000-2001 Expenditures 2000-2001 Budget 2001- 2002 Expenditures 2001-2002 (thru 11101) Expenditures 2001-2002 CIP $130,000 $276,626.77 $130,000 $22,792 $130,994 TANF-EA $61,000 $ 83,368.70 $ 65,000 $62,968 $180.944 GA $75,265 $116,126.55 $ 85,265 $67,886 $110,502 TOTAL $266,265 $476,122.02 $280,265 $153,646 $422,220 Program Budget 2001-2003 Expenditures Nov 2002 Expenditures 2002-2003 through 12/1 Projected Expenditures For FY 2003 CIP $133,217 $28,054 $39,609 $133,217 TAN F-EA Work First $ 65,000 $ 6,868 $42,741 $100,000 Count GA $ 85,265 $11,534 $31,259 $112,000 TOTAL $283,482 $46,456 $113,609 $345,217 Causal Factors Related to Increase: ¦ PSNC Energy charges a $250 deposit to reconnect gas service that was turned off due to non payment in addition to the existing bill ¦ Heating costs have increased an average of 43% ¦ Town of Hillsborough had two increases in water bills during the last year ¦ OWASA had increases of 6% for water and 3% for sewer service last year ¦ Due to the economy, there are more people out of work or experiencing reduced work hours Summary Update ? From July 1, 2002 to present, 1,082 families have received emergency energy assistance; of that, 128 families (or 12%) have received financial counseling. ? Families have generally been able to adjust to the lower payment by combining the DSS funds with other resources ? The Guarantor Program has been effective and will be continued by DSS ? The overall changes have contained the growth in costs, although DSS may still exhaust available funds before the end of the fiscal year ? Additional analysis of the effectiveness of the financial counseling requirement needs to occur as more history becomes available ? Computerized tracking of all client requests needs to become available to help DSS staff and for planning data. B. Orange Congregations In Mission (OCIM) Samaritan Relief Ministry ¦ The Samaritan Relief Ministry (SRM) has seen a 27% increase in individuals receiving overall assistance from 2001 to 2002. ¦ The SRM has seen a 42% increase in food assistance from 2001 to 2002. The SRM has seen a 9% decrease in the dollar amount provided for utility assistance. Starting in August 2002, the SRM was limited to a maximum of $50.00 per household for financial assistance; previously, it was a maximum of $150.00 per household. This reduction was due to the overall reduced financial donations and increased need to purchase non-perishable food items. Relationship to Utility Companies: ¦ The SRM currently has no formal arrangements with utility companies. However, the agency is able to call the utility companies to commit a dollar amount towards the client's utility bill. This insures that the SRM's portion of the needed amount will immediately go towards keeping a utility connected. ¦ The SRM's commitment is honored when the remainder needed to avoid disconnection or for reconnection has been committed to or paid in full. ¦ The SRM does have the authorization to be a Guarantor for deposits to Piedmont Electric; but a contract has not been initiated. There is a concern regarding essentially "escrowing" funds to cover the guarantees. Escrowing money for guarantees makes money unavailable for other emergency needs. At this time, the SRM does not assist with initial utility deposits unless granted money is received and designated for deposits. Samaritan Relief Ministry Dependable Funding Sources as of January 2003 Funding Source Amount FEMA $8,208 food only) Duke Power - "Share the Warmth" $7,158 (heating and coolin only) United Way $26,585 Local Grants(include Orange County and Town of Hillsborough) $16,000 *Other TOTAL $57,951 *Other grants, fundraising and contributions are not dependable as to the amount received each year. These sources of revenue would normally go towards the SRM general fund. C. Inter-Faith Council for Social Service (IFC) *(Note: Updated information from draft report not yet received) Current Needs: As reported at the November 14th meeting, IFC staff and volunteers began to experience disturbing trends affecting their clients and those who are in greater need as early as last year. Recently IFC has noticed that these trends are not only continuing but also expanding in scope. The economic realities for their clients seem to be moving in the wrong direction. Crisis Intervention Policies and Practices: ¦ Inter-Faith Council's Crisis Intervention Program has a financial assistance limit of $250 per household per 12-month period. Most financial requests are related to either rent/mortgage or utility needs. 4'50 ¦ IFC serves clients that work in or have a Chapel Hill or Carrboro address. ¦ IFC provides services by appointments (food, financial assistance and clothing vouchers) that usually take an hour once all of the information is gathered. ¦ Staff does everything possible to consider walk-ins requesting groceries if the schedule permits. ¦ Because of the increased demand for services, particularly among the working poor, IFC expanded services to evening hours beginning in January 2002 in partnership with the NC Hillel Foundation. Attachment 1 represents an existing Crisis Intervention Budget showing the minimum-projected costs based on this arrangement. ¦ Attachments II and 111 are sample forms that are used by IFC staff and volunteers for various requests. Economic Points to Consider: ¦ One out of six American children lived in poverty last year when the economy was flourishing ¦ 6.6 million North Carolinians live in poverty; and 13% of those living in poverty are below the poverty level. ¦ In Orange County an hourly wage of $14.94 is now needed to afford a two bedroom dwelling unit ¦ Two out of three North Carolina children living in poverty are hungry ¦ 203,117 households (470,000 individuals) are receiving food stamps in North Carolina ¦ One out of eight North Carolinians and one out of five children are now enrolled in Medicaid ¦ One in six low-income households in North Carolina and 42% of all adults on Work First, the state's welfare program, do not have bank accounts ¦ Social Security Income (SSI) recipients receiving a monthly income of $512 can afford monthly rent of no more than $154, while the fair market rent for a one-bedroom unit in Orange County is now $662; the income needed for the one bedroom fair market rate is now $26,480 ($12.73 per hr.) ¦ In North Carolina, 39% of renter households pay more than 30% of their income for rent ¦ A full-time minimum wage job in Orange County keeps a homeless person below the government's official poverty line ¦ Social Service dollars are decreasing at state and federal levels. We have also experienced a greater number of contradictions with a number of governmental programs that restrict opportunities for affordable housing, universal health care, safeguarding our social security program for older adults and paying living wages for all Americans. We applaud Orange County for taking the lead in recommending a "Living Wage" of $9.11 per hour, an economic principal that we advocate for continually in our discussions with others. 5 IFC Support ¦ Although food donations valued at $229,400 were donated last year in response to local hunger, IFC's Food Pantry shelves are rarely full ¦ Although restaurants, businesses and individuals donated perishable food and other items valued at $611,740 last year, the client demand for hot, nutritious meals at the Community Kitchen has increased ¦ Last year the costs of public utilities skyrocketed, including a 65% increase in natural gas for low-income consumers. Even though consumption is currently down and rates have decreased in recent weeks, utility requests by IFC clients have increased by 29% ¦ Due to a greater number of client requests, IFC has increased its FY2001- 2002 Crisis Intervention Budget to $143,725---an additional $62,725 ¦ Comparing a seven-month period (July---January) to the same period last year; 18% more clients have been served (2,473) ¦ 63% more requests for groceries have been requested from IFC's Food Pantry ¦ 43% more requests have been made for assistance with utilities and rent; ¦ 20% more clients are working compared to last year ¦ 26% more clients are without any income or are now receiving some form of governmental assistance ¦ 22% of IFC clients during this period are new clients Funding Source Amount FEMA $4,868 food only) Duke Power "Share the Warmth" $24,089 (heating and cooling only) OWASA $3,000 sewer and water Congregations / Individuals $76,768 Foundations $35,000 *TOTAL $143,725 *Figures do not include guarantees by Piedmont Electric or PSNC Energy; or additional amounts provided by congregations. Salvation Army in Durham provides financial assistance for PSNC Energy. Relationship with Utility Companies: 1. PSNC Energy a. IFC can guarantee client's deposit amount and pay only if client defaults b. PSNC has been very willing to lower deposit amounts c. Always very helpful to IFC and want to make sure their systems are easy for us to access d. Really care about clients and their situations, try to hold off cutoffs if we cannot see client before the cutoff date e. Specialized reps to take agency calls Io 2. Piedmont Electric Membership Corporation a. IFC can guarantee client's deposit amount and pay only if client defaults b. Really cares about clients and their situations, try to hold off cutoffs if we cannot see client before the cutoff date 3. Duke Power a. IFC can guarantee client's deposit amount and only pay if client defaults b. Customer service reps trained to take agency calls c. Provides $20,000 of Share the Warmth to IFC for client assistance and they instituted a new cooling program providing another $4,000 last summer d. Sometimes willing/able to hold off cutoffs 4. OWASA a. OWASA began the "Taste of Hope" program several years ago that addresses rent and utility needs experienced by IFC clients. OWASA has reimbursed IFC up to $3,000 each year for client assistance. OWASA is seeking to expand the number of donors in order to increase available funding for the "Taste of Hope" program. Relationship with Congregations: Member congregations provide tremendous annual support for the Crisis Intervention Program and Inter-Faith Council on the whole. It is IFC's position that clients should be referred to the IFC so that needs are evaluated. Clients and service providers should use all available agency resources first. IFC does not refer clients to congregations and recommends that this should be a standard practice by all service providers. IFC staff and volunteer interviewers will call individual congregations for additional assistance with clients when needed. Relationship with Other Agencies: 1. Department of Social Services - DSS has an excellent, cooperative working relationship, staff very helpful and together we try to minimize client's running back and forth as much as possible. 2. JOCCA - JOCCA does not always have funding available for emergency assistance but does make referrals to other agencies including IFC. 3. Salvation Army - There is not interaction since many of our clients cannot get to their office in Durham or cannot be seen before utility cutoffs. 4. OCIM - Their staff serves residents from northern Orange and works by referral from DSS and congregations. Occasionally IFC and OCIM will confer or collaborate on a special case. 8 Suggestions to Better Meet the Needs of our Clients: 1. Suggestion: Strengthen the partnership between OWASA and IFC by: training customer service representatives on how to work with IFC and other agencies; developing a process where IFC can guarantee OWASA deposit fees similar to other utility company arrangements; and ask for increased support among OWASA customers for the "Taste of Hope" program. (IFC has seen an increase in the number of clients requesting assistance with their OWASA bill). 2. Suggestion: Design a streamlined eligibility process between DSS and IFC about client eligibility and coordinate services when both agencies are assisting. These efforts will help clients to access services more easily. 3. Suggestion: Support IFC efforts to work closely with congregations, develop a process to best serve IFC clients and discourage efforts by organizations to involve congregations without going through IFC crisis intervention staff. 4. Suggestion: Join with other agencies and utilities in publicizing the needs of clients and hopefully securing new/additional resources. 5. Suggestion: IFC recommends the pursuit of collaborative workshops/seminars for clients who can benefit from information about utility practices and agency criteria. 6. Suggestion: Additional financial resources need to become available to match the current demand for services. (IFC's budget is a minimum response that can be provided to respond to community needs). 7. Suggestion: Find available resources to provide financial counseling for clients that experience on-going problems with rent and utility bills. D. Joint Orange-Chatham Community Action (JOCCA) ¦ Number of individuals/families assisted with FEMA funds last year- 43 for phase 20 ending December 31, 2002 ¦ Number of individuals/families assisted this year with FEMA funds - Have not received funds for phase 21 9 is ¦ Number of individuals/served this year (to date) with CSBG funds for emergency assistance - 55 What is the procedure with utility companies to guarantee that client services will not be cut off? Once a client has been approved for emergency assistance, CSBG staff will call the vendor and make a pledge to assure that the client services will not be disconnected. ¦ Has there been an increase in the number of individuals in need of emergency assistance? YES. Due to underemployment and unemployment, there has been an increase in the number of individuals/families in need of emergency assistance. In Orange County, there is an average of 8 walk-ins per day in need of emergency assistance. JOCCA receives an average of 10 calls per day from individuals who are in need of assistance. UTILITY COMPANIES A. Duke Power 1. Economic indicators from 10/00 to 10/01: ¦ Arrears - up over 10% ¦ Charge-offs - up near 70% ¦ Unemployment rate - was 3.95% in January'01 for our service area; it was 5.16% in September'01; and forecasted to be 5.73% by year end '01 2. Share the Warmth contributions for the 2000- 2001 season ¦ Share the Warmth is a heating bill assistance program funded by Duke Power customers and Duke Energy shareholders. The Duke Energy Foundation matches individual contributions, dollar-for-dollar up to $50, for a maximum corporate contribution of $500,000 annually. Contributions are tax deductible and customers may designate the county to which they wish to have the funds donated. In Orange County, IFC and OCIM have been selected to distribute the funds and to determine family eligibility criteria. The funds may be used for the payment of heating costs, regardless of energy source. ¦ IFC contributions - $ 18,868.30 ¦ OCIM contributions - $ 6,289.44 3. Information on energy savings tips, loan options, etc. ¦ Duke Power website: www.dukepower.com 10 l3 Go to "For Your Home" section and click on "Manage Your Energy" 4. Information on credit procedures ¦ Payment options -Bank draft and Equalized Payment Plan info is found on the Duke Power website: www.dukepower.com/ForYourHome/CustomerService. ¦ Click on Payment Options 5. Timing of arrears: ¦ Good pay customers - 30-day bill. If no pay or insufficient partial pay, 60-day bill rendered with prior account balance due. If no pay or insufficient partial pay, 90-day bill is rendered with a prior account balance due and the final notice message included and a potential disconnect date 25 days out. If no pay or insufficient partial pay within 25 days (or 115 days of service), then 24-hour notice is hand delivered. In the event of a no pay or insufficient partial pay situation, then a non-pay disconnection would apply. ¦ Poor pay customers - same as above - final notice message and potential disconnect date 25 days out are included in the 60-day bill. The 24-hour notice is delivered at 85 days instead of 115. ¦ Late payment charges - accrue at rate of 1.5% after 25 days from billing ¦ Deferred Payment Arrangements - Customers must be in arrears and have received the arrears letter. Two options are available: 1) 5 day DPA; or 2) suggested DPA (which can extend payback for over one month, but usually no more than two), depending on past payment history of customer. No DPA is offered if: no payment in last 60 days; returned check received within last 6 months; customer is taken off of our Equalized Payment Plan option. ¦ Reconnect fees - $25.75 if from 8am to 5pm Monday thru Friday; and $77.25 if after hours or on weekend Deposit info - $100 for basic service; and $250 for all electric. In some situations, may require two months bill. Third Party notification - Duke adds third party contact information. If customer is in arrears, the third party receives a copy of the arrears letter also. This is usually good for elderly or severely ill customers. Call the Duke Power local number to sign up. 6. Consumer Education II 14 Due to the success of the 24/7 Customer Service Center and website, there has been a significant reduction in the need for public speaking opportunities. Consequently these are done on a very selected basis. Most requests for consumer education result in directing the customer to the website. If the customer does not have a computer nor access to one, the requested information is printed and mailed to the customer. B. PSNC Energy Helping Customers Current economic conditions and last year's record prices for natural gas are impacting the abilities of some of our customers to meet their financial obligations. Customers who had their natural gas service turned off last spring for non- payment are required to pay their past debt, a deposit and a reconnection fee. To help ease this requirement, PSNC Energy made the following changes: • North Carolina Utility Commission (NCUC) regulations allows the company to require the past debt, the entire deposit and the reconnection fee prior to reactivating a customer's service. This fall PSNC is working with customers by allowing half of the deposit (the cost of two months of consumption in the winter) to be paid prior to reactivation and half to be paid 30 days later. • PSNC also bills the reconnection fee ($48.39), so customers have an additional 30 days to pay this fee. Working with Agencies This fall PSNC Energy installed an automated voice response system that provides agencies with immediate access to customer information. Through the toll-free number agencies can now get information about customer accounts without waiting to speak with a representative. Contributions: Heat Care Fund In a partnership with the Salvation Army, PSNC Energy sponsors the Heat Care Fund. The Heat Care Fund is administered by the Salvation Army and provides heating assistance, regardless of the type of heating used, to those in need in PSNC Energy's service territory. For the 2001-02 heating season, PSNC Energy made an initial contribution of $20,000 to the Heat Care Fund and matches 50 cents for every $1 contributed by customers, up to an additional $15,000. To encourage customer involvement, PSNC Energy promotes the program through a bill insert, bill messages and through public relations efforts. Last year, approximately $100,000 was raised for 12 1the Heat Care Fund. Customer contributions are distributed to those in need from the same community they were donated from. Contributions from Orange County are sent to the Durham Salvation Army office and used to help people in Orange County. Last year, the Interfaith Council and the Durham Salvation Army made arrangements so IFC clients did not have to travel to Durham to seek assistance from the Heat Care Fund. Payment Plans Customers can sign up or get additional information about our payment plans by calling PSNC Energy's 24-hour Customer Care Center toll-free at 1-877-776- 2427. 1. Easy Payment Plan - EPP allows customers to pay the same amount on their gas bill every month. This allows for better budgeting and alleviates bill fluctuations due to weather. Energy usage is estimated based on historical data from the previous 12 months (if available), and divided into 12 equal payments. 2. Automatic Bank Draft - Allows customers to pay their gas bill through automatic drafting of their bank account. Combined with the Easy Payment Plan, customers know exactly how much the bank draft will be every month. 3. Phone Charge - Payment by credit card is accepted for a fee of 2.8% of the total amount billed by calling (888) 664-9809. (Note: In mid- December this fee will change to $3 per transaction.) 4. Customer Service Locations - PSNC Energy payments are accepted at the locations listed on the back of our bill statement. In Orange County PSNC Energy customers may pay their bill Mon. - Fri. from 8 a.m. - 5 p.m. at the Utility Payment Center/2700 Homestead Road/Chapel Hill, NC 27515. Credit Establishment by Means of Guarantor At any point during the life of a customer's account, PSNC Energy may require some form of security due to the customer's credit history. From requiring an initial deposit due to a less than favorable credit score to disconnection for non- payment, a cash deposit may be required. In the event a cash deposit is not feasible for the customer, PSNC Energy must provide other options of securing accounts. One such option, mandated by the North Carolina Utilities Commission, is establishing a guarantor in lieu of a cash deposit. The guarantor is a different customer who has an active account with a good pay record or is a regional Help Agency. The guarantor guarantees payment for the customer for the required deposit amount in the event the customer fails to pay the final bill. 13 14 When the customer goes off service payment arrangements are available. However, any charges remaining at final bill day 39 (up to the guaranteed amount) are transferred to the guarantor, regardless of arrangements. Release of Guarantor due to Guarantee Establishing Good Pay Record The guarantor is released when the customer achieves no more than two arrears and no disconnection activity within twelve consecutive months. The system will generate a letter to the guarantor, notifying them of their release. How Would a Regional Help Agency be Set Up to Act as Guarantor for Customers? A specific non-utility account would be set up for the Help Agency on PSNC Energy's customer information system. This account would be used to document the accounts being guaranteed and to bill the guarantor if any of the guaranteed accounts go off service without full payment on the account. This account will not incur any charges, other than the agreed amounts of guarantor arrangements. To guarantee a customer's account, an 'Agreement in Lieu of Deposit' form must be signed by the agency's designated representative and mailed or faxed back to PSNC Energy. (PSNC Energy Receivables Management/PO Box 1398/Gastonia, NC 28053-1398 or fax: 704-810-3306) The agreement will remain in effect for the life of the service unless the guaranteed customer is able to establish credit by means of a good pay record (no more than two arrears and no disconnection activity within twelve consecutive months of service). C. OWASA OWASA is the public, non-profit water and sewer agency that serves the Carrboro-Chapel Hill area. OWASA's nine-member Board of Directors is appointed by the elected governing boards of Carrboro, Chapel Hill and Orange County. OWASA began serving the community in February 1977 when the University and the two Towns sold their water and wastewater assets to OWASA. In addition to State law regarding water and sewer authorities, OWASA is subject to the terms of purchase and sale agreements with the University and the Towns, and the OWASA Bond Order, which in part: ¦ Limit OWASA's services to water and sewer-related operations and projects. ¦ Prohibit OWASA from providing free service. ¦ Require OWASA set rates and fees based on the cost of our various services. 14 1.? Unlike a private, for-profit utility, OWASA cannot use utility revenues for purposes such as subsidizing or assisting in payment of bills for low-income families. Unlike a local government with an elected governing board, OWASA cannot do community development projects or provide subsidies for affordable housing in the form of reduced or waived connection fees, etc. Nevertheless, OWASA has come up with some innovative initiatives of interest that are consistent with their legal parameters: ¦ OWASA has a system of tiered residential connection or "service availability" fees based on square footage of a residential unit. This approach has resulted in lower fees for smaller homes and apartments but is legally justified and defensible based on research documenting a relationship between demand on water and sewer system capacity and residential unit size. ¦ The seasonal water conservation rates, which will go into effect next May and which will be higher from May through September and then lower from October through April, can be expected to shift more costs to customers who use much more water in the summer for purposes such as lawn watering. Typically, these customers are those with single-family homes and large yards. Many apartment and smaller-home residents will pay less over the course of a full year than with the present year-round water rate. However, seasonal water rates are also calculated based on costs of water service (taking into account capital or facility costs) at different times of year. They cannot be arbitrarily set as indicated above. Seasonal Water Conservation rates effective May and October 2002 ? The OWASA Board in June, 2001 approved new seasonal water rates that went into effect on May 1, 2002 and October 1, 2002. ? For the five months of May through September, the "peak" seasonal water rate increased from the previous year-round rate of $2.90 per 1,000 gallons to $4.08 per 1,000 gallons. ? The water rate dropped on October 1, 2002 to an off-peak seasonal rate of $2.16 per 1,000 gallons. An off-peak seasonal rate (which may be adjusted in November after an annual rate review) is then to remain in effect through April. ? The purposes of the seasonal rates are to send a "price signal" encouraging conservation and to charge for water service more accurately based on system needs at different times of year. 15 11 ? Because of peak demands in the warm to hot months of the year, the water system capacity requirements and related facility costs are highest in the summer months. A schedule of rates and charges is included as Attachment IV. ¦ Customers are encouraged to voluntarily have their monthly water bills rounded up (to the nearest dollar) to provide funds for the "Taste of Hope" program. Developed in 1997, the "Taste of Hope" program is an optional, voluntary way for OWASA customers to assist in providing temporary assistance to low- and moderate-income families with water and sewer bills in Carrboro-Chapel Hill. The "Taste of Hope" program is administered by the Inter-Faith Council. Consistent with our legal parameters, "Taste of Hope" funds are voluntary donations from participating customers and are kept separate from revenues for services. Water Partners International, which does water resource projects in developing nations, also receives some of the donations from OWASA customers. In short, although OWASA operates within some legal constraints that make them different from many public and private agencies, they have been able to make some innovations as discussed above. D. Piedmont Electric Membership Corporation Policies-DisconnecbCollections/New Service ¦ Accounts that are subject to disconnection are notified with each monthly bill of the amount past due and the pending disconnect date. A separate notice is not sent prior to disconnection. PEMC plans to begin a phone notification process in the near future. ¦ Accounts that are disconnected are charged $15.00 for each trip to their meter during daytime business hours (a total of $30.00 if they are cut off/cut on during the day). If an account is reconnected after business hours, an additional $45.00 is added to the charges for reconnection (a total of $75.00). ¦ Accounts that are disconnected for non-pay are required to pay a deposit. The minimum deposit that is required to be held on the account is twice the average monthly bill. PEMC can charge a deposit amount equal to the two highest bills on the account in the last 12 months. This maximum deposit is usually reserved for problem accounts or those involved in meter tampering or power diversion. "First time disconnect deposit fees can be waived as a courtesy unless meter tamper/power diversion has occurred. 16 iq ¦ PEMC will work with any account with a payment problem provided we have not had problems on the account in the past (broken agreements, meter tamper, etc.). With regard to new accounts, new members pay a $5.00 membership fee and a deposit unless we can get information showing their creditworthiness through a credit check or a letter of credit from a former electric utility. A PEMC member can act as guarantor for a new member as long as the guaranteeing member has excellent credit. We have arranged a guarantor process with Inter-Faith Council for their clients. IFC will guarantee the account holders deposit if the account is disconnected and remains unpaid. IFC will only guarantee up to the minimum amount. If the deposit is higher, the client will have to provide the difference. Summary of Charges*** ¦ Membership Fee $5.00 ¦ Security Deposit (min) $175.00 ¦ Security Deposit (max) limited to the sum of the two highest bills in last 12 months ¦ Late Penalty .5% of unpaid past due balance ¦ Disconnect Fee $15.00 ¦ Reconnect Fee (day) $15.00 ¦ Reconnect Fee (night) $60.00 ¦ Meter tamper/divert Bill paid in full (including estimated kWh stolen), maximum deposit, pay all charges required to secure meter base. No deals. ***PEMC is reviewing some of these charges and may increase them in the near future. E. Town of Hillsborough Water/Sewer General Policies ¦ Bills are mailed the 1St day of the month ¦ Bills are due the 25th day of the current month ¦ Penalty is applied at 6pm on the 25th day of the month ¦ Penalty amount is 15% of the balance ¦ No 2nd notice is mailed ¦ Delinquent fee is applied at 6pm on the 25th day of the second month ¦ Delinquent fee amount is $75 - all meters will be locked or removed ¦ Locks broken or straight-piping - 1 st time/$250 tampering fee; 2 or more times/$1000 each time ¦ No reconnections will be made after 5pm, Monday through Friday, weekends or holidays related to non-payment. 17 a ¦ All customers, including businesses, will be treated equally when related to disconnection. ¦ The Town no longer stays open until 6pm on the 15th of each month since payment is not due until the 25th of the current month. The Town will stay open until 6pm on the 25tH ¦ All requests for new service with the Town must provide two forms of identification: driver's license and social security numbers. ¦ All requests for new service at a rental property must also provide a copy of the lease agreement with the service address verified. All rental accounts must be in the same name as the lessee. ¦ Leak adjustment requests are considered only after the leak has been corrected and a copy of the plumber's invoice provided or receipt of parts purchased to correct the leak. Only two leak adjustments are permitted in a 12-month period. ¦ Deposits on water and sewer services are as follows: ? In-Town (own) $25.00 ? In-Town (rent) $50.00 ? Out-of-Town (own) $50.00 ? Out-of-Town (rent) $100.00 ¦ Water and Sewer Rate Codes are provided as Attachment V. (At the Board's request, Attachment VI is a chart summarizing the policies of utility companies regarding deposits, late fees, etc.) IMPORTANT NOTE: The increasing cost of LP gas experienced last year is not occurring this year. In fact, the current LP gas price is about 36% less than last winter. NEXT STEPS (As Identified from the November 14, 2001 Meeting) Compile service information made available from the agencies and utility companies (completed) 2. Identify partnerships, agreements, cut-offs, etc. (completed) 3. Determine the feasibility of establishing DSS as a guarantor for utility deposits (completed - established program) 4. Develop educational efforts and/or plans for consumer education (completed/ on-going program)** 5. Reconvene group to discuss draft report; identify potential collaborative strategies, program enhancements and additional partners (completed) **A small task group, chaired by Nancy Coston, is continuing to meet to follow-up on financial counseling efforts. 18 al ATTACHMENTS Attachment I Inter-Faith Council Crisis Intervention Budget Attachments II and III Inter-Faith Council Sample Forms Attachment IV OWASA Schedule of Rates and Charges Attachment V Town of Hillsborough Water/Sewer Rates Attachment VI Chart: Summary of Policies of Utility Companies Attachment I ?Q CRISIS INTERVENTION - EXTRA HOURS CURRENT ANNUAL BUDGET INCREASE TOTAL BUDGET Wages 64,620 10,546 75,166 Benefits 17,491 1,080 18,571 Assistance Housing 51,000 10,800 61,800 Electricity & Gas 35,418 9,000 44,418 Duke Power-Coolin 5,000 5,000 Water & Sewer 3,000 2,400 5,400 Telephone 500 500 Transportation 41000 4,000 Clothin 2,000 2,000 Medical Care 1,000 1,000 Child Care 1,500 1,500 ID Cards 500 600 1,100 Misc Asst. 1,000 1,000 Food 350 350 Total Assistance 105,268 22,800 128,068 TOTAL 187,379 34,426 221,805 CRISIS INTERVENTION INTAKE NAME DATE / / SS# - - Last First ADDRESS: ZIP NO PHONE REQUEST: FOOD RENT UTILITY CLOTHING TRANSPORT ID OTHER COMPLETE THIS SECTION FOF How long have you lived in this area? Reason for coming to this area? Name of family/friend in the area? Work Experience? Relationship? Degrees/Cert? GENDER: MALE FEMALE ID ID TYPE(#) ETHNICITY: African-American Asian-American Caucasian Hispanic Native American Other_ u.,..?eh.,1.J !`n.,,nn?itinn• Mirnhnr in hnucahnlrl' Number of Children FIRST NAME MI LAST NAME DOB SEX RELATION Sources of All Household Income: EMPLOYER (S) TYPE OF WORK: JOB: Hours/Wk /Wk UNEMPLOYMENT $ /Mo. SOC SEC $ /Mo. Pay rate /Hr CHILD SUPPORT $ /Mo. DISABILITY $ /Mo. Take Home /Mo. WORK FIRST $ /Mo. SSI $ /Mo. FOOD STAMPS $ /Mo. WIC (Y/N) $ /Mo. CLIENT RELEASE OF INFORMATION: I hereby give the Inter-Faith Council permission to contact, discuss, or otherwise secure information from any person, agency, or business necessary for the purpose of reviewing my case. Any information or records so obtained may be used or communicated by the Inter-Faith Council to any person, agency, or business for any reasonable purpose. Client/Representative Signature A Attachments II & III APPT. TIME DOB I I - Chapel Hill Carrboro Other HAVE YOU BEEN HERE BEFORE? YES or From? How long there? MI Years Education? Attachments II & III Monthly Expense Average Past Due Total Balance Balance Housin_ _ Rent/Mortcage Lot rent Electricity Gas (to heat & cook) Oil/Kerosene Water & Sewer Telephone Car Phone/Pa er TV Cable/Satelite Food: Groceries Lunch at work School lunches -Eating out Child care: Tuition School expenses Sitter/After School Diapers Child Support Transport: Car Pa ment (s) _____ Auto Insurance Gasoline Taxi/Bus/Parkin Creditors: Credit Card (s) Lay Away Furniture/Appliance Bank/Credit Union Bankruptcy Medical: Doctor & Hospital Dental bills Medications Life/Med. Insurance Personal: Drug store items Laund /cleaners Barber/Beaut Shop _ Clothin Contributions Misc. Other: Attachments II & III CRISIS: CAUSE OF CRISIS: NOTES FROM INTERVIEWER: PS INTERVIEWER'S SIGNATURE REFERRALS MADE: ASSISTANCE GIVEN: INTERVIEW ONLY LOAN & GRANT FOOD ( BAGS) Name of Payee: Name of Payee: For: $ For: $ Attachments II & III Total Expenses I CRISIS INTERVENTION BUDGET WORKSHEET DATE: INCOME INFORMATION (For all adults in household) CLIENT: EMPLOYER INTERVIEWER Position DATE OF LAST PAY AMOUNT $ Date hired NEXT PAY JOB: Hours/Wk. /wk UNEMPLOYMENT $ /mo. SOC. SEC. $ /mo. Pay rate /hr. CHILD SUPPORT $ /mo.. DISABILITY $ /mo. Take home /mo. AFDC $ /mo. SSI $ /mo. FOOD STAMPS $ /mo. WIC (Y/N) $ /mo. PLOYER LENGTH OF EMPLOYMENT LAST EM how lon ble li If has this individual been receiv ing disability? g , ca app OTHER ADULT: EMPLOYER DATE OF LAST PAY / /. Position AMOUNT $ Date hired NEXT PAY / JOB: Hours/Wk. /wk UNEMPLOYMENT $ /mo. SOC. SEC. $ /mo. Pay rate /hr. CHILD SUPPORT $ /mo.. DISABILITY $ /mo. Take home /mo. AFDC $ /mo. SSI $ /mo. FOOD STAMPS $ /mo. WIC (Y/N) $ /mo. LAST EMPLOYER LENGTH OF EMPLOYMENT If applicable, how long has this individual been receiving disability? TOTAL HOUSEHOLD INCOME: $ TOTAL MONTHLY EXPENSES: $ INTERVIEWER NET: $ C 14 and Sewer Kate Adlustments tttective in November. 2oul t er Wa nal Water Conservation Rates to be Effective in May and October, 20_&2; S easo Many of OWASA's water and sewer rates increased on November 151. However, seasonal water conservatidrl r2W: t " A ,p er water me will go into effect in May, 2002 and October, 2002 as shown below: For a typical customer with a 5/8 C the following rates apply as of November 1, 2001: Basic monthly fee-water service increased 6.5% from $7.27 to $7.74 or 47 per month on November 1 st 000 gallons continues through April 30, 2002; 90 per 1 te of $2 t C Water charge per 1,000 gallons , . ra urren New rate of $4.08 May 1-September 30, 2002 ("warm" or peak season rate) New rate of $2.16 effective October 1, 2002 "cool" or off-peak season rate Basic monthly fee-sewer service increased 6% from $5.05 to $5.35 or 30 per month on November 1" 000 gallons on November 1, 2001 70 per 1 55 to $2 d 6% from $2 Sewer charge per 1,000 allons , . . increase Summary of rate changes Service Old New rate Service Old Rate New rate Rate Nov. 1, Nov. 1, gnnt 2001 Monthl Service Char a for Water Service, b Meter Size Nonresidential Water Serv ice Availabiut I-ee- 5/8" meter $ 7.27 $ 7.74 5/8" meter $1,906.00 2,087.00 1^ 14.59 15.54 V 4,765.00 5,216.00 1-1/2 31.57 33.62 1-1/2 9,530.00 10,433.00 2•• 47.63 50.73 2" 15,248.00 16,692.00 3" 97.94 104.31 Y 30,496.00 33,385.00 4 159.90 170.29 4" 47,650.00 52,164.00 6" 348.21 370.84 6" 95,300.00 104,328.00 g 495.02 527.20 1 152,480.00 166,925.00 _,Vc_ . ce a A-ii.hilif. FOP Monthly Service Char a for Irri ation-unl service 12 39 R??,.,?,,,,a, ??••? -- ° for a 5/8" meter at a detached - - -- sin le-famiI - residence 5/8" meter 11.63 25 23 . 76 24 300 s uare foot home < 1 1,349.00 1,189.00 1-1/2" . 43.04 . 45.84 , 1,300 - 1,700 square-toot home 1,349.00 1,437.00 2 66.20 70.50 1,701 - 2,400 s uare-foot home 1,372.00 1,462.00 3 131.02 139.54 2,401 - 3,100 s uare-foot home 1,670.00 1,791.00 4^ 201.14 214.21 3,101 - 3,800 s uare foot home 1,806.00 1,935.00 6" 395.65 421.37 >3,800 s uare-foot home 2,061.00 2,199.00 8^ 629.22 670.12 5/8" meter, multifamily residential 1,213.00 1,288.00 000 Gallons: er 1 e Char dit C Nonresidential Sewer Service Availability tee , p g y ommo Plus a Water 5/8" meter 2,372.00 2,558.00 t d Current rate of 2.90 1" 5,930.00 6,394.00 ra e Uniform year roun continues through April 30, 2002 1-1/2" 11,860.00 12,788.00 Seasonal rates Effective May 1, 2002 - Sept. 30, 2002 4.08 Effective October 1, 2002 2.16 2" 3" 4" 6" 18,976.00 37,952.00 59,300.00 118,600.00 20,460.00 40,920.00 63,928.00 127,876.00 Monthly Service Charge for Sewer Service, b Meter Size 8" 189,760.00 204,601.00 5/8" meter 5.05 5.35 1„ 8.68 9.20 Service Extensions 1-1/2" 2 3" 4" 14.95 22.62 42.75 65.35 15.85 23.98 45.32 69.27 Water service installation Com lete service, 5/8" meter 1,725.00 1,850.00 Meter onl , 518" 135.00 140.00 Water to 195.00 200.00 6^ g" 127.21 204.46 134.84 216.73 Sewer to Deposit for meter 230.00 600.00 250.00 1,000.00 Plus a Sewer Commodity Rate Per 1,000 Gallons lies to monthly volumes 2.55 2.70 e a (Char High Strength Wastewater Treatment Surcharges per pound; for wastewater exceeding the limits for parameters below pp g from water meter readings.) Biolo ical Ox en Demand 0.17 0.18 Residential Water Service A vailability Fee Suspended Solids Ammonia Nitro en 0.10 1.69 0.11 1.79 for a 5/8" meter at a detached in le-famil residence Phosphorus 4.73 5.01 < 1,300 s uare foot home 790.00 713.00 1,300 - 1,700 square-foot home 790.00 870.00 it th A d S 1,701 - 2,400 square-foot home 1,016.00 1,102.00 y or ewer u Orange Water an 2,401 - 3,100 s uare-foot home 1,720.00 1,884.00 3,101 - 3,800 square-foot home 2,290.00 2,561.00 400 Jones Ferry Road, Carrboro, NC 27510 >3,800 square-foot home 3,867.00 4,299.00 telephone: 919-968-4421; fax: 968-4464 e-mail: webmaster@owasa.org 5!8" meter, res. irrigation-only 1,720.00 1,884.00 web site: www.owasa.org 5/8" meter, multifamily residential 702.00 768.00 For a complete schedule of our rates and charges, please contact OWASA at 968-4421 or see our Web site, www.owasa.org. Attachment V-A NEW RATE CODE Effective August 1, 2001 Billing Town of Hillsborough Water/Sewer Rate Schedule Effective July 1, 2001 IN-'SOWN Water (0-3,000 gal.) $19.08 (Over 3,000 gal.) $ 6.36 per 1,000 gal. Sewer (0-3,000 gal.) $17.31 (Over 3,000 gal.) $ 5.77 per 1,000 gal. IN-TOWN WATER AND SEWER 0-3.000 GAL. -536.39 ($12.13 PER 1,000 GAL. AFTER MINIMUM) OUT-OF-TOWN Water (0-3,000 gal.) (Over 3,000 gal.) $38.16 $12.72 per 1,000 gal. Sewer (0-3,000 gal.) $34.62 (Over 3,000 gal.) $11.54 per 1,000 gal. OUT-OF-TOWN WATER AND SEWER 0-3,000 GAL.=372.78 (324.26 PER 1,000 GAL. AFTER MIMMUAO Attachment V-B ??q Effective November 1, 2000 Billing NEW RATE CODE Town of Hillsborough Water/Sewer Rate Schedule Effective October 1, 2000 IN-'SOWN Water (0-3,000 gal.) (Over 3,000 gal.) $16.89 $ 5.63 per 1,000 gal. Sewer (0-3,000 gal.) (Over 3,000 gal.) $15.33 $ 5.11 per 1,000 gal. IN-TOWN WATER AND SEWER 0-3,000 GAL =$32.22 ($10.74 PER 1,000 GAL AFTER MINIMUM) OUT-OF-TOWN Water (0-3,000 gal.) $33.78 (Over 3,000 gal.) $11.26 per 1,000 gal. Sewer (0-3,000 gal.) $30.66 (Over 3,000 gal.) $10.22 per 1,000 gal. OUT-OF-TOWN WATER AND SEWER 0-3,000 GAL =$64.44 ($21.48 PER 1,000 GAL AFTER MINIMUM) Attachment V-C NEW RATE CODE effective August 1, 2000 Billing Town of Hilbborough Water/Sewer Rate Schedule Effective July 1, 2000 IN WN Water (0-39000 gal.) (Over 3,000 gal.) $14.22 $ 4.74 per 1,000 gal. Sewer (0-3,000 gal.) (Over 3,000 gal.) $12.90 $ 4.30 per 1,000 gal. 1N--TOWN WATER AND SEWER 0-3,000 GAL =S27.12 (59.04 PER 1,000 GAL AFTER MINIMUM) OUT-OF-TOWN Water (0-3,000 gal.) (Over 3,000 gal.) $28.44 $ 9.48 per 1,000 gal. Sewer (0-3,000 gal.) $25.80 (Over 3,000 gal.) $ 8.60 per 1,000 gal. OUT-OF-TOWN WATER AND SEWER 0-3,000 GAL=S54.24 ($1&08 PER 1,000 GAL AFTER MINIMUM) Attachment V-D NEW RATE CODE Effective August 1, 1998 Billing 'd'own of Hillsborough Water/Sewer Rate Schedule Effective July 1, 1998 fix-TOM 512.36 Wailer (0-3,000 gal) $ 4.12 per 1,000 gal (ever 3,000 ga>) $11.22 Sewer (0-3,000 gal) 3.74 per 1,000 gal (Over 3,000 gal) IN--TOWN WATU AND SK F.R 04.0M GA/. = $23.38 ($786 PM 1.000 GAL AFTER MMIM(IM) $24.72 Water (0-3,000 gal) 5 8.24 per 1,000 gal (Over 3,000 gal) Sewer (0-3,000 gal) $22.44 (Over 3,000 gal) 0MOr TOWN WATER AND SEWER 0-3.600 (;,IL = S/7.16 (315.72 PER 1.V M GAL AFTER MINIMUM) 3)