HomeMy WebLinkAbout199-22 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 199-22
File Number: 2022-0762
LOW-INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM:
A RESOLUTION TO APPROVE A VENDOR AGREEMENT THAT WILL ENROLL THE CITY
OF FAYETTEVILLE IN THE LOW-INCOME HOUSEHOLD WATER ASSISTANCE
PROGRAM THROUGH THE ARKANSAS DEPARTMENT OF ENERGY AND
ENVIRONMENT
WHEREAS, the Low -Income Household Water Assistance Program is a federal grant program
administered by the Arkansas Department of Energy and Environment that will allow eligible
low-income users of the City's sewer and water system to apply for assistance in paying past due
balances on their accounts.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to execute the Vendor Agreement attached to this Resolution that will enroll the City of Fayetteville in
the Low -Income Household Water Assistance Program administered by the Arkansas Department of
Energy and Environment to allow eligible water and sewer customers to apply for assistance with
paying their past due balances on water and sewer accounts.
PASSED and APPROVED on 9/6/2022
Page 1 Printed on 917122
Resolution: 199-22
File Number: 2022-0762
Attest:
i���tii r r rri»��►r
7*9 [&L& 6d"— 0
FgYFnj�VI q
Kara Paxton, City Clerk Treasure'y: y <<E
� w
��• {] • ti
. L c .4.
Page 2 Printed on 917122
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
Text File
File Number: 2022-0762
Agenda Date: 9/6/2022 Version: 1 Status: Passed
In Control: City Council Meetinq File Type: Resolution
Agenda Number: A.9
LOW-INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM:
A RESOLUTION TO APPROVE A VENDOR AGREEMENT THAT WILL ENROLL THE CITY OF
FAYETTEVILLE IN THE LOW-INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM
THROUGH THE ARKANSAS DEPARTMENT OF ENERGY AND ENVIRONMENT
WHEREAS, the Low -Income Household Water Assistance Program is a federal grant program administered
by the Arkansas Department of Energy and Environment that will allow eligible low-income users of the City's
sewer and water system to apply for assistance in paying past due balances on their accounts.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to
execute the Vendor Agreement attached to this Resolution that will enroll the City of Fayetteville in the
Low -Income Household Water Assistance Program administered by the Arkansas Department of Energy and
Environment to allow eligible water and sewer customers to apply for assistance with paying their past due
balances on water and sewer accounts.
City of Fayetteville, Arkansas Page 1 Printed on 91712022
City of Fayetteville Staff Review Form
2022-0762
Legistar File ID
9/6/2022
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Paul Becker 8/16/2022 UTILITIES FINANCIAL SVCS (710)
Submitted By Submitted Date Division / Department
Action Recommendation:
To authorize the Mayor to sign and submit the attached Vendor Agreement which would allow eligible water and
sewer customers to apply for assistance in paying their past due outstanding balances for water and sewer services
by the Low -Income Household Water Assistance Program contractor for the Arkansas Energy Office.
Budget Impact:
N/A N/A
Account Number
N/A
Project Number
Budgeted Item? No
Current Budget
Funds Obligated
Current Balance
Does item have a cost? No Item Cost
Budget Adjustment Attached? No Budget Adjustment
Remaining Budget
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Fund
N/A
Project Title
$ -
Previous Ordinance or Resolution #
Approval Date:
V20210527
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF SEPTEMBER 6, 2022
TO: Mayor and City Council
FROM: Paul A. Becker, Chief Financial Officer
DATE: August 16, 2022
CITY COUNCIL MEMO
SUBJECT: City Council Approval of the submission of a vendor agreement to enroll in
the Low -Income Household Water Assistance Program (LIHWAP)
RECOMMENDATION:
To authorize the Mayor to sign and submit the attached Vendor Agreement which would allow
eligible water and sewer customers to apply for assistance in paying their past due outstanding
balances for water and sewer services by the Low -Income Household Water Assistance
Program contractor for the Arkansas Energy Office.
BACKGROUND:
The City has become aware of a federal grant program available to our low-income water and
sewer customers administered by HORNE functioning as a contractor for the Arkansas Energy
Office which is a sub -grantee of the U.S. Department of Health and Human Services.
DISCUSSION:
By signing this Vendor Agreement, the City will enroll in the program which would allow eligible
low-income users of the sewer and water system to apply for assistance in paying past due
balances on water and sewer accounts, City participation in this program will require some
special handling and tracking of these payments because the payments can only be applied to
water and sewer past due balances not trash and recycling balances and any amounts
received over those specific balances must be returned to the contractor. However, this
program will provide much needed assistance to eligible customers which should more than
offset the additional work required.
BUDGET/STAFF IMPACT:
Although the terms of this agreement will require staff time to account for, record and monitor
payments received, it will not require additional budgetary expenditures.
Attachments:
Vendor Agreement for Low -Income Household Water Assistance Program
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
ASPS DEPARTM
F
C TARKANSAS
T
O
qND EN`��A
LOW-INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM (LIHWAP)
VENDOR AGREEMENT
Public Law No: 116-260 signed on December 27, 2020, included funding with instructions for the
Administration for Children and Families (ACF) within the U.S. Department of Health and Human
Services (HHS) to cant' out grants to assist low-income households, particularly those with the lowest
incomes, that pay a high proportion of household income for drinking water and wastewater services,
by providing funds to owners or operators of public water systems or treatment works to reduce
arrearages of and rates charged to such households for such services. This act requires that certain
assurances be satisfied before assistance payments are made, on behalf of eligible individuals, to
suppliers of drinking water and wastewater services. This agreement defines the conditions that the
Vendor must agree to so that the Arkansas Energy Office (AEO) or its Contractor (HORNE) can make
assistance payments to the Vendor on behalf of eligible households.
Statutory language authorizing and appropriating funds for Low -Income Household Water Assistance
Program (LIHWAP) specifies that assistance to households must be paid to public water utilities for
household arrearages and rate reductions related to charges for water and wastewater services.
This Agreement shall govern the purchase of water services from the Vendor on behalf of households
eligible for the LIHWAP as set by Term Eleven in the Supplemental Terms and Conditions
nromulvated by ACF.
LIHWAP Payment Program General Terms and Conditions
1. The Vendor enrolled in the LIHWAP Payment Program (Program) must be the responsible
entity for applying the LIHWAP credit to customer accounts.
2. HORNE will provide the Vendor a pay file, via secure portal, that contains customer
account information and the LIHWAP benefit amount for the purpose of crediting the
accounts of qualified low-income residential customers of the Vendor who have been
identified as eligible for water assistance payments under LIHWAP by AEO. Commercial
customers are not eligible for the program.
3. HORNE will establish a secure method to provide the pay file and customer information to
the Vendor and a secure method to receive the Direct Payment Summary from the Vendor
as described in paragraph 17.
4. The Vendor is encouraged to offer a payment plan or other forms of assistance to customers
who have a remaining balance after the LIHWAP benefit is applied to support the
continuation of services or the restoration of services for accounts where services are
terminated due to nonpayment.
ARKANSAS DEPARTMENT OF ENERGYAN❑ ENVIRONMENT
Vendor Obligations:
1. Acknowledge and comply with applicable state and federal laws and regulations in accordance
with the LIHWAP.
2. Keep customer records confidential and shall comply with all federal and Arkansas privacy laws
and shall take all necessary steps to protect the confidentiality of the information provided by
HORNE to the Vendor. Vendor agrees to provide required security to ensure the confidential,
physical security and safekeeping of all data, information files, and documents ("customer
information") pertaining to the recipients of LIHWAP utility assistance payments, while such
customer information is in its possession. Vendor will, in accordance with applicable law and the
terms of this Agreement, protect from unauthorized use and disclosure all sensitive data,
documentation, or other customer information provided to Vendor by HORNE or AEO for
purposes of this Agreement.
3. Vendor shall provide water and/or wastewater services to each eligible and approved residential
household for which payment is provided under LIHWAP.
4. Restore, reconnect, deliver, or continue customer's household water service upon receiving from
AEO or HORNE a pledge to pay or payment of the LIHWAP benefit amount, whichever comes
first and shall confirm this action to HORNE by submission to the Direct Payment Summary as
specified in paragraph 17.
5. Continue the customer's household water service for at least ninety (90) days upon receiving
from AEO or HORNE a pledge to pay or payment of the LIHWAP benefit amount, whichever
comes first.
6. Assure that no LIHWAP payment will be applied to charges for utilities or services not related to
household drinking water or wastewater services.
7. Credit only the account designated by AEO or HORNE.
8. Charge LIHWAP households using the Vendor's normal billing process. Vendor shall charge
LIHWAP residential households the same rates charged for home drinking water and/or
wastewater services billed to their similarly situated residential households that are non -eligible,
as determined by the approved rate setting process.
9. Charge LIHWAP residential households using the Vendor's normal billing process, the
difference between the actual amount due and the amount of the payment made by the LIHWAP
payment
10. Assure that no customer will be treated adversely because of LIHWAP assistance.
11. Post all payments to customer accounts within five (5) business days.
12. Notify the customer of the amount of benefit payment applied to the customer's billing in a
manner which identifies the payment as received from LIHWAP.
13. Provide written reconciliation and confirmation as required that benefits have been credited
appropriately to households and their services have been restored on a timely basis or
disconnection status has been removed if applicable.
14. Not apply LIHWAP payments to account balances that have previously been written off or paid
with other funds however, if payment of previously written -off amounts will enable the applicant
to re-establish water service, then payment may be authorized by LIHWAP.
15. Return any unexpended portion of the benefit identified by AEO or HORNE as an overpayment
upon request by AEO or HORNE and apply the LIHWAP benefit to cover the past -due balance
2
and return any remaining amount of the LIHWAP payment to HORNE within 30 calendar days
of receipt along with the Direct Payment Summary specified in paragraph 17.
16. Return to AEO or HORNE the amount of benefit payment that cannot be credited to a designated
account and clearly identify which LIHWAP household account(s) could not be credited.
17. Vendor shall submit to HORNE a Direct Payment Summary (in a format provided by HORNE)
that reconciles the associated pay file and return payments that could not be credited to customer
accounts within 30 calendar days of receipt of payment. The Direct Payment Summary must
contain information on the date the credit was posted, direct pay file date; the total number of
customer accounts that the Vendor was successful in fully crediting; and the total number of
customer accounts that the Vendor was not successful in crediting. For those customer accounts
that were not credited, the Vendor shall reflect in the Direct Payment Summary the customer
accounts that were not credited to include customer account information (customer name,
account number, account address, benefit amount), and reason why the LIHWAP benefit was
unable to be applied to the customer's account. The Vendor shall use customer and account
information contained in the pay file to complete the reporting and identification of customer
accounts that were not credited.
18. Accept financial liability for any misuse or misapplication of payments due to failure by the
Vendor to perform any of the terms of this agreement.
19. Report any financial fraud or abuse or misconduct in the administration of LIHWAP funds to
AEO.
20. Maintain records of assistance benefits for a period of at least five (5) years from the date such
benefits were received by the Vendor.
21. Maintain accounting records in such a manner that will ensure that LIHWAP payments made on
any customer's account can be readily identified and audited.
22. Maintain accounting records in such a manner that will ensure that any balance which remains
after a payment is applied can be traced until it has been expended.
23. Make records available for review by authorized staff of AEO, HORNE, and the U.S.
Department of Health and Human Services and cooperate with any Federal or State investigation,
audit, or program review related to the administration of LIHWAP to ensure funds are accurately
applied to customer accounts in compliance with this Agreement, including allowing AEO and
its designated representatives access to all books and records related to the receipt and posting of
LIHWAP benefits under review.
24. Vendor is informed that failure to cooperate with any Federal or State investigation, audit, or
program review may result in the immediate suspension or disqualification from participation in
LIHWAP.
25. Vendor shall take corrective action in the time frame specified by AEO if violations of this
Agreement are discovered. Corrective action may include, but is not limited to, providing
detailed documentation of changes made.
26. Acknowledge that failure to implement corrective actions may result in the immediate
disqualification from participation in LIHWAP.
TERM
The term of this agreement shall be the execution date of this contract through November 30, 2023.
3
DUE AUTHORIZATION
The person executing this Agreement on behalf of a party represents and warrants that he or she
has been duly authorized by such party to so execute this agreement.
%- (a ' 22
Date