HomeMy WebLinkAboutHorne LLP 2022-04-13DIRECT PAYMENT AGREEMENT
THIS DIRECT PAYMENT AGREEMENT (Agreement) is made and entered into effective as of the
date signed below (the “Effective Date”), by and between
the Water System”),
and HORNE LLP, a Delaware limited liability partnership, having a place of business at 661 Sunnybrook
Road, Suite 100, Ridgeland, MS 39157 (“HORNE”).
WHEREAS, the California Department of Community Services and Development (“CSD”) is
authorized to administer the Low-Income Household Water Assistance Program (“LIHWAP” or
Program”) to provide financial assistance to help low-income Californians manage their residential
water utility costs;
WHEREAS, CSD has contracted with HORNE to disburse direct payments to water systems to
apply a LIHWAP credit to households identified as eligible for LIHWAP assistance by CSD or its Local
Service Providers (LSPs);
WHEREAS, CSD has authorized HORNE to enter into this Agreement with Water System; and
WHEREAS, the Water System desires to enroll in LIHWAP and participate in the direct payment
service established by the Direct Payment Program.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Water System
agrees to receive direct payments from HORNE for the benefit of California residents who qualify for
LIHWAP and agrees to abide by all terms and conditions below:
COU 2122-221
CITY OF UKIAH
Direct Payment Program General Terms and Conditions
1.1 To participate in the Direct Payment Program, a Water System must be defined as a “Community
Water System” or “Community Water System Billing Entity”, “Wastewater Treatment Provider”
or “Wastewater Billing Entity” (collectively referred to as a “Water System” in this Agreement).
1.2 A “Community Water System” means a public water system with at least 15 service connections
used by yearlong residents or regularly services at least 25 yearlong residents.
1.3 A “Community Water System Billing Entity” means a third-party entity that is the designated
billing entity for a community water system.
1.4 A “Wastewater Treatment Provider” means a city, county, special district, or joint powers
authority that provides wastewater collection, treatment, or disposal service through a publicly
owned treatment works.
1.5 A “Wastewater Billing Entity” means a local government entity (city, county, or special district)
that is the designated billing entity for a wastewater treatment provider .
1.6 The Water System enrolled in the Direct Payment Program must be the responsible entity for
applying the LIHWAP credit to customer accounts.
1.7 Qualified low-income residential customers will be identified by CSD and its LSP partners. CSD
will provide HORNE with a direct pay file that contains customer account information as well as
the amount for the direct payment to the Water System for each customer. Commercial
customers are not eligible for the program.
1.8 HORNE will provide the Water System a direct pay file 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 Water System who have been identified as
eligible for water assistance payments under LIHWAP by CSD or its LSPs.
1.9 HORNE will establish a secure method to provide the direct pay file and customer information to
the Water System and a secure method to receive the Direct Payment Summary from the Water
System as described in 2.11.
1.10 The Water System 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.
Obligations of the Water System
2.1 Water System shall provide water and/or wastewater services to each eligible and approved
residential household for which payment is provided under LIHWAP.
2.2 Water System shall charge LIHWAP residential households using the Water System’s normal
billing process, the difference between the actual amount due and the amount of the payment
made by the LIHWAP payment.
2.3 Water System shall restore water services on a timely basis or remove disconnection status upon
payment, if applicable, and shall confirm this action to HORNE by submission of the Direct
Payment Summary report as specified in provision 2.11.
2.4 Water System shall charge all LIHWAP eligible residential households the same rates charged for
home drinking water and/or wastewater services billed to other similarly situated residential
households that are non-eligible, as determined by the approved rate setting process.
2.5 Water System shall not apply LIHWAP payments to account balances that have previously been
written off or paid off with other customer assistance program funds. The Water System shall
return issued LIHWAP payments to HORNE within 15 business days of receipt for accounts where
the owed balance has been paid off with other customer assistance program funds or discharged
written off) in its entirety by the Water System along with the Direct Payment Summary specified
in 2.11.
2.6 Water System shall apply the LIHWAP benefit to closed accounts to cover the pending balance
and shall return any remaining amount of the LIHWAP payment to HORNE within 15 days of
receipt along with the Direct Payment Reconciliation Summary specified in 2.11.
2.7 Water Systems shall adhere to existing credit return policies when returning funds to a customer
that received a LIHWAP benefit, and the account is later closed and there is a remaining LIHWAP
credit balance on the account.
2.8 Water systems that include other services on the customer’s bill shall only apply LIHWAP
payments towards the water, wastewater, and/or storm water amount owed including any
applicable late fees, reconnection fees, taxes, and other charges.
2.9 Water System shall not discriminate against a LIHWAP eligible household with respect to terms,
deferred payment plans, credit, conditions of sale, or discounts offered to other customers.
2.10 Water System shall post all payments to customer accounts with in 5 business days from receipt
of payment.
2.11 Water System shall submit to HORNE a Direct Payment Summary (in a format provided by
HORNE) that reconciles the associated direct pay file and return payments that could not be
credited to customer accounts within 15 business 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 Water System was successful in fully crediting; and
the total number of customer accounts that the Water System was not successful in crediting.
For those customer accounts that were not credited, the Water System 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 Water System
shall use customer and account information contained in the direct pay file to complete the
reporting and identification of customer accounts that were not credited.
2.12 Water System shall clearly enter, on the LIHWAP recipient’s bill, the amount of LIHWAP
payment(s) received and identify the payment was received from LIHWAP. The credit should
appear on the first billing statement after the credit has been posted. If posting on the LIHWAP
recipient’s bill is not feasible, the Water System shall send customers a notification of the LIHWAP
payment via phone call, letter, text, or email communication as soon as practicable.
2.13 Water System shall 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 CSD and its designated
representatives access to all books and records related to the receipt and posting of LIHWAP
benefits under review.
2.14 Water System 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.
2.15 Water System shall take corrective action in the time frame specified by the CSD if violations of
this Agreement are discovered. Corrective action may include, but is not limited to, providing
detailed documentation of changes made and detailed plans for future changes that will bring
the Water System into compliance.
2.16 Water System is informed that failure to implement corrective actions may result in the
immediate suspension or disqualification from participation in LIHWAP.
2.17 Water System shall comply with all federal and California privacy laws, and shall take all necessary
steps to protect the confidentiality of the information provided by HORNE to the Water System.
Water System 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. Water System 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 Water System by HORNE, CSD, or
CSD’s LSPs for purposes of this Agreement.
Term
3.1 The term of this Agreement shall be the effective date of this contract through October 31, 2023.
Project Coordinator
4.1 The Project Coordinator is designated to manage all HORNE inquiries regarding direct payments,
issues with the direct payment process, mishandled or incorrect payments, clarification and
updates of reports, and fraud and abuse. The Project Coordinator during the term of this
Agreement is listed below. The Water System may designate a different Project Coordinator by
notifying HORNE in writing.
Water System’s Project Coordinator
Name and Title: __________________________________________________________
Company Name: _________________________________________________________
Address: _______________________________________________________________
City, State, and ZIP Code: _________________________________________________
Email: _________________________________________________________________
Phone: (_______) ________-______________________
Additional Provisions
5.1 Amendment. All amendments to this Agreement shall be in writing, signed by HORNE and Water
System.
5.2 Assignment. Neither this Agreement nor any of the rights, interests, or obligations under this
Agreement shall be assigned by any party without the prior written consent of the other parties.
5.3 Merger/Entire Agreement. This Agreement (including the attachments, documents and
instruments referred to in this Agreement) constitutes the entire agreement and understandin g
of the parties with respect to the subject matter of this Agreement and supersedes all prior
understandings and agreements, whether written or oral, among the parties with respect to such
subject matter.
5.4 Nonwaiver. The waiver by either party of any b reach of any term, covenant, or condition
contained in this Agreement, or any default in the performance of any obligations under this
Agreement, shall not be deemed to be a waiver of any other breach or default of the same or any
other term, covenant, condition, or obligation; nor shall any waiver of any incident of breach or
default constitute a continuing waiver of the same. All waivers shall be in writing.
5.5 Severability. If any provision of this Agreement is found invalid or unenforceable in any resp ect
for any reason, the validity and enforceability of any such provision in any other respect and of
the remaining provisions of this Agreement will not be in any way impaired and shall remain in
full force and effect.
5.6 Venue. In the event that suit shall be brought by either party to this Agreement, the parties agree
that venue shall be exclusively vested in the State Courts of the County of Sacramento, or where
otherwise appropriate, exclusively in the United States District Court for the Eastern District of
California in Sacramento, California.
IN WITNESS WHEREOF, the parties hereto have signed this Agreement, or caused it to be signed by their
duly authorized representatives “below”.
HORNE LLP
By: ___________________________________
Name: __Loden Snell_____________ __________
Title: __Deputy Project Manager____ ________
Date: ___________________________________
Water System: [_______________]
By: ___________________________________
Name: ___________________________________
Title: ___________________________________
Date: ___________________________________
4882-0103-6556, v. 1
CITY OF UKIAH
SAGE SANGIACOMO
CITY MANAGER
4/13/2022