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Home My WebLink AboutReso 99-108 - Amending Policy 1404, Late Fees & Utility Deposits, Eff 08-03-99 , ., ; t . ` ' ' � • RESOLUTION NO. 99- /08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING POLICY 1404, LATE FEES AND UTILITY DEPOSITS, EFFECTIVE AUGUST 3, 1999 WHEREAS, on September 15, 1992, the City Council adopted Policy 1404 to provide guidelines on late fees and utility deposits,which policy was amended on Apri16, 1993,and on September 2, 1997;and WHEREAS, the City Council wishes to further amend the policy to implement a progressive late fee policy; NOW,THEREFORE,IT IS RESOLVED by the City Council that effective August 3, 1999,the City's Policy 1404 entitled Late Fees and Utility Deposits be amended as set forth in the update attached hereto and made a part thereof. I HEREBY CERTIFY that the foregoing resolution was introduced,read,and adopted at a special meeting of the City Council on the 3`d day of Au¢ust , 1999, by the following vote: AYES: COUNCIL MEMBERS: Cibula, Kight , McGeorge, Pohlmeyer and Anderson NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None � w.�J OBERT C. ANDERSON, MAYOR Attest: Forrri Approve�l: . � � �. � �� Connie Sti•ohmayer, Cl�rk W. Leonarcl Wingate, 'ty Attorney � � � � � ,'�� , , . • � - CI TY OF REDDING, CALIFORNIA � � Council Policy SUBJECT Resolution Policy Effective Number Number Date Page LATE FEES AND UTILITY DEPOSITS 99- 1404 08/03/99 1 BACKGROUND Due to a dramatic increase in bankruptcies and the number of delinquent accounts in recent years, it is fiscally responsible and appropriate that the City Council adopt a policy governing utility deposits and late fees. PURPOSE The purpose of this policy is to provide uniform and consistent guidelines for the assessment of late fees on delinquent utility accounts and the payment of utility deposits. POLICY I. Late Fees. A. All residential utilitv accounts will be assessed a late fee of$12.00, to be ap�lied to anv unpaid delinquent balance when the 10 dav delinquent notice is created. _"_�� . ^ . � . � b � � B. All commercial utility accounts will be assessed a late fee of 6%to be applied to anv unpaid delinquent balance at the time the 10 day delinquent notice is created. �-�e � � • � � � • � � , � A customer may request a hearing with a customer service supervisor to review the customer's payment history. The review shall include consideration of whether the customer has been assessed the appropriate late fee or whether the late fee should be waived for any�iven month. The determination by the customer service supervisor may be appealed to the Director of Customer Service. F-0091 -7/93 .+s ', • � � � _CITY OF REDDING, CALIFORNIA ' Council Policy SUBJECT Resolution Policy Effective Number Number Date Page LATE FEES AND UTILITY DEPOSITS 99- 1404 08/03/99 2 II Deposits. . A. New commercial accounts may be required to pay a deposit of twice the estimated average aggregate bill, but not less than $100. The deposit will be waived far a commercial account operating a like business . � � ��uU�� ` -- �"' - '----'-----within the previous 12-18� months, if one of the following occurs: 1. The customer of record presents a valid letter of credit from another utilitv. 2. The customer of record has previouslv established and maintained a good credit history with the ReddinQ's utilitv for a like business 3. The customer of record authorizes Reddina's Customer Service Division to run a_credit scoring report, and aarees to pav a subsec�uent fee for such report. B. New residential accounts may be required to pay a deposit of twice the estimated average aggregate utility bill,but not less than$50. , � b, . The deposit will be waived for a residential account if one of the followina occurs: 1. The new customer presents a valid letter of credit from another utilitv far services received in the previous 12 months. 2. The new customer has previouslv established and maintained a Qood credit history with Reddin�'s utilitv within the �ast 18 months. 3. The new customer authorizes Reddin�'s Customer Service Division to run a credit scorina report, and a�rees to pav subsequent fee for such report. 4. An adult, meetin� Reddina's credit criteria has signed a Bill Guarantee form aareeinQ to be co-responsible for utilitv charaes durina the time credit is bein� established for the primarv customer. C. Utility accounts turned off for nonpayment of account will be required to pay a deposit, all fees and penalties assessed, and the entire delinquent balance. D. Utility accounts with three(3) or more returned checks in a twelve-month period and no deposit is currently held by the City. F-0091 -7/93 -- �, 1'FV � A .. � � � - ° CI TY OF REDDING, CALIFORNIA ' Council Policy SUBJECT Resolution Policy Effective Number Number Date Page LATE FEES AND UTILITY DEPOSITS 99- 1404 08/03/99 ; E. Accounts delinquent three (3)or more times in the last twelve months and no deposit is currently held by the City. (For this purpose, a customer will be considered delinquent when a - Final Notice has been�� received.) F. If no deposit is currently held and a customer's utility credit ratinQ has declined to the point that the Director of Customer Service determines that it is in the best interest of the utilit ty o require a deposit. ' � • II Interest may be earned on the deposit amount required by the City in the followin� manner: A. A customer may provide the City with a certificate of deposit in the amount of the required utility deposit. B. A customer may present the City with a savings passbook in the amount of the required utility deposit. IV After maintaining a good credit rating for twelve months,utility deposits will be applied to the customer's utility account, certificates of deposit or passbooks will be returned to the customer and any Bill Guarantee aareements will be canceled. V. A customer may request a hearing with a customer service supervisor to review the customer's payment history or the estimated deposit amount. The review shall include consideration of whether the customer shall be permitted to amortize the payment of the deposit over a reasonable period of time. The determination by the customer service supervisar may be appealed to the Director of Customer Service. Amended on 4-6-93 by Resolution No. 93-115 Amended on 9-2-97 by Resolution No. 97-153 Amended on 8-3-99 bv Resolution No. 99-xxx F-0091-7/93