HomeMy WebLinkAboutItem 3B - PresentationFranchise Agreement:Solid Waste CollectionAgenda Item #3B
June 30, 2022
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Item 3B - 1
Franchise Agreement
•Modifications to agreement, rate schedule accepted at meeting of June 16, 2022
•Remaining discussion point: Discount program for low-income customers
•Issues:How to fund and amount of funding neededEligibility requirements and discount offeredHow to administer
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Item 3B - 2
Discount Programs and Funding
Examples of discount programs and funding:
•Gas and electric utilities: CARE and FERAprograms, funded by surcharges (PUC §739.1)
•DWA: Help2Others program, LIHWAP program(funded by contributions, grants, County)
•Solid waste program discounts: None inCoachella Valley; others offered to seniors
•Sewer discounts: No discounts offered locally
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Item 3B - 3
Discount Programs
•Proposition 26 and Proposition 218 limit how discount programs can be funded for gas/electric utilities, property related fees (water, solid waste, sewer)
•Discount program for PSDS services may be funded through:PSDS profitsCity of Palm Springs general fund
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Item 3B - 4
Discount Program –How to Fund
•PSDS has offered to contribute $25,000 annually from its profits (note that PSDS has already reduced its rates and profit margin)
•City would need to contribute the balance
•Amount needed for program based on # of eligible customers (percentage of discount, eligibility requirements)
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Item 3B - 5
Discount Program –% of Discount
•CARE Program: 20%-35% for electricity20% for gas
•FERA Program:18% for electricity
•Solid waste discount programs for seniors10%-20%
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Item 3B - 6
Discount Program –% of Discount
With $25,000 in funding, the program could serve:
•30% discount = 268 customers
•20% discount = 402 customers
•18% discount = 447 customers
•10% discount = 804 customers
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Item 3B - 7
Discount Program –Eligibility
•CARE Program: Up to 200% of federal poverty guidelines (based on household size)
•FERA Program: 200%-250% of federal poverty guidelines (based on household size, 3 or more)
•Housing programs: Based on AMI (based on household size)
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Item 3B - 8
Discount Program –Administration
•PSDS does not have staff resources/training toadminister program; City would need toadminister program
•Use of Sustainability staff would detract from theimplementation of other programs and projects
•It is recommended that applicants reapply or arerecertified every year
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Item 3B - 9
Discount Program – Recommendations:
•$25,000 is probably not adequate to fund program; difficulty in estimating the # of customers
•City staff will be needed to administer program
•If City is to implement program, need direction on:Discount % to offerEligibility requirements/threshold
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Item 3B - 10
Franchise Agreement:Solid Waste CollectionAgenda Item #3B
June 30, 2022
DEVELOPMENT
SERVICES
DEPARTMENT
Item 3B - 11