Purpose

That the City Council introduce and adopt an ordinance amending sections 30-201 and 30-206 of the Burbank Municipal Code in order to implement changes to Burbank Water and Power�s rate assistance programs approved by the City Council on July 19, 2005.

Background

On July 19, 2005, the City Council conducted a review of the rate assistance programs offered by Burbank Water and Power (�BWP�) and approved staff�s recommendation that �an income means test be added to qualify for the Life Support rate discount.�  The City Council also directed that an ordinance implementing this change be brought back to the Council at a future meeting.

Currently, B.M.C. sec. 30-206 authorizes lifeline service rates for BWP customers who qualify for exemptions from the City�s Utility User Tax (�UUT�).  Section 30-206, last amended in 1987, incorporates references to sections of the UUT ordinance that have since been renumbered and are now obsolete.

In order to correct that problem, and at the same time implement the change recently approved by the City Council, the City Attorneys Office has prepared the attached ordinance which would make the following changes to B.M.C. sections 30-201 and 30-206:

• Adds a definition of �Disabled Person� as sec. 30-201(e).  Under the definition, a person is �disabled� if he or she has a �physical disability� as defined by state law.  A person is also �disabled� is he or she �requires the use of an essential life support device that operates on household current.�

• Amends sec. 30-206(b) to prescribe the eligibility criteria for the Lifeline Service Rate.  Instead of relying on the exemption provisions in the UUT ordinance, this amendment sets forth the criteria directly.  The criteria are the same as have applied in the past, with the exception of the addition of the income means test for customers who otherwise qualify for the Life Support rate.  The amendment does this by making any �Disabled Person,� including one who �requires the use of an essential life support device,� subject to the income guidelines annually established in the Burbank Fee Resolution.

• Adds secs. 30-206(c) to establish the HUD Guidelines for Public Housing and Section 8 Programs as the basis for the income guidelines used to determine eligibility.  This is identical to the criteria the City currently uses for establishing exemptions from the UUT.

• Adds secs. 30-206(d) through (i).  These are necessary administrative procedures to enable BWP to process applications for Lifeline Service.

• Adds sec. 30-206(j), providing that anyone who knowingly applies for or receives the Lifeline Service Rate when he or she is in fact not eligible is guilty of a misdemeanor.  The intent, obviously, is to discourage persons who are not eligible from applying for such service.

In addition to the above, the proposed ordinance includes two �clean up� items.  First, it amends sec. 30-201(d) to change the definition of �Department� from �Public Service Department� to �Burbank Water and Power Department.�  It also adds a definition of �Utility Rate Resolution� as sec. 30-201(f).  This term is used throughout Chapter 30 of the code, and the purpose of the amendment is to make it clear that the term is synonymous with the annual Burbank Fee Resolution adopted by the Council at budget time.

Recommendation

If the Council concurs, the appropriate action is a motion to introduce the ordinance entitled, �AN ORDINANCE OF THE COUNCIL OF THE CITY OF BURBANK AMENDING SECTIONS 30-201 AND 30-206 OF THE BURBANK MUNICIPAL CODE PERTAINING TO THE LIFELINE SERVICE RATE FOR UTILITY CUSTOMERS.�

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