Agenda

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City Council Regular Meeting

Meeting Date:

01/10/2023

BACKGROUND

Texas Utility Help is a state administered program to help citizens with low income by making payments directly to utilities on behalf of account holders. This program is administered by the Texas Department of Housing and Community Affairs (TDHCA) and is funded by the federal Low Income Home Energy Assistance Program and the federal Low Income Household Water Assistance Program.

TDHCA partnered with Yardi Systems, who designs software solutions for real estate, to make it easy for customers and vendors to participate in the program.

Schertz must sign up with the program by signing an agreement to be a listed vendor and receive payments from TDHCA. Staff was made aware of this program by a representative of Yardi Systems in November and has been reviewing and validated the proposal during this time.

This program will not cost the City to participate, and it will allow eligible Schertz citizens to apply for aid. Payments would then be make out to the City on behalf of those residents.

While no City funds are expended to participate and no liability is placed on the city by applying, staff felt the agreement is set up like a grant which would need Council's approval before being executed.

This agreement would allow TexasUtilityHelp to request resident information about usage and bill history with the permission of the resident. Other areas of the agreement that include providing continued service to customers, working out payments plans, and not apply payments to already written off amounts are all services that are currently offered to our residents and will not change staff's operations.

This aid agreement is for residential accounts only, commercial accounts are ineligible for the program.

This agreement can be terminated by either party at any time with written notice.

Once approved, staff will advertise the program TexasUtlityHelp.com on the website, social media, and on utility bills.

Council in the past has encouraged staff to find utility bill aid programs and TexasUtilityHelp.com would qualify.

Currently, staff works with customers with large balances attempting to get them on a payment plan or try to get some payment toward their outstanding balance. Staff will turn off services only if no payments are being made and is a tool to start a conversation with residents on how to take care of their balances going forward.

GOAL

To provide another option for financial aid to low income Schertz utility customers.

COMMUNITY BENEFIT

This agreement will aid community members in need.

SUMMARY OF RECOMMENDED ACTION

Staff recommends approving this agreement and allowing customers to apply for aid.

FISCAL IMPACT

Quarterly, Schertz writes off $20,000 to $30,000 in unpaid utility bills when residents leave the city. This program will allow citizens with large balances on their utility account pay some of those old charges.

If even half of those residents qualify, it would be an additional $60,000 the city would otherwise not be able to collect.

There is no cost to the City to participate, and the City could see additional revenue come in instead of writing balances off in the future.

RECOMMENDATION

Staff recommends approving Resolution 23-R-05.

Attachments
Resolution 23-R-05
Utility Management Agreement