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Home My WebLink AboutReso 99-109 - Amending Policy 1402, Collection of Delinquent Utility Accts, Effective 08-03-99 . r � • , _ ro RESOLUTION NO. 99-�' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING POLICY 1402, COLLECTION OF DELINQUENT UTILITY ACCOUNTS, EFFECTIVE AUGUST 3,1999 WHEREAS, on November 19, 1996, the City Council adopted Policy 1402 to provide guidelines for the collection of delinquent utility accounts,; and WHEREAS, the City Council wishes to further amend the policy for the collection of delinquent utility accounts; NOW,THEREFORE,IT IS RESOLVED by the City Council that effective August 3, 1999,the City's Policy 1402 entitled Collection ofDelinquent UtilityAccounts 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 � OBERT C. ANDERSON, MAYOR Attest: Form Approvecl: ' %� � �� ° /°l/'v ytr7itC--r� Connie Stro imayer, City ler W. Leonard Wingate, �i Attorney �� C \` � � � `l!; , _• • • _ � CI�TY OF REDDING, CALIFORNIA ' Council Policy SUBJECT Resolution Policy Effective COLLECTION OF DELINQUENT Number Number Date Page UTILITY ACCOUNTS 99- 1402 08/03/99 1 BACKGROUND The Customer Service Division is char�ed with the responsibility of administerin�the utilitv billin� and collection system for the electric utility, water utility, wastewater, solid waste and storm drain utilitv. PURPOSE The purpose of this policy is to formalize procedures far the collection of delinquent utility accounts. POLICY Utility bills for services rendered by the City of Redding utilities shall be mailed to customers on a monthly basis as a unitied bill for all utility services provided. Delinquency: All bills so rendered shall be deemed delinquent if unpaid 20 days after the date of mailing�ring ' � and subject to late fees and penalties if utilitv bill remains un�aid after 30 davs with the followina e�ceptions: l. A customer has selected a preferred due date. Such accounts will be deemed delinquent 10 da�s after the preferred due date if the bill remains unpaid. 2. Bills far Qovernmental agencies will be deemed delinquent if the bill remains unpaid for �0 da_ys after the date of mailina. � � > > , . _ b � F-0091-7/93 • • :- � CiTY OF REDDING, CALIFORNIA � Council Policy SUBJECT Resolution Policy Effective COLLECTION OF DELINQUENT Number tvumber �ate Page UTILITY ACCOUNTS 99- 1402 0$/03/99 2 � - � , � -- � - � • � � ��__ a��-�-.,_-- _ ._a _ ._„ ,_ _ _� - --�� -- �- -r� � -- - ----�-- -- . Notification of Termination of Services: In compliance with Public Utilities Code Section 10010.1,all accounts deemed to be delinquent will be given a ten-day demand notice. This notice will be sent by first class mail to the customer's current mailin� address, allowing an additional five days for mailing. Late fees will be assessed at the time the ten-dav demand notice is mailed. If the delinquent bill has not been paid and/or an extension has not been approved by the u�itq t��rr�Customer Service division within the above fifteen-day period, � T ' ' ' . , a written notice of termination of service �Final Notice�Qivin�the customer seven additional davs will be mailed to the customer's current mailingLaddress A Final Notice of termination can be delivered to the customer's premises at least 48-hours prior to termination or the customer will be so notified throu�h personal contact bv tele�hone or in person at least�4-hours�rior to termination. Whenever a seven day,48-hour or 24- hour final notice of termination is mailed or delivered to the customer. the appropriate delinquent fee will be assessed. If the bill remains unpaid and a payment eYtension has not been authorized by th Customer Service division at the conclusion of the seven dav,24-hour or 48-hour period as specified to the customer,utility services will be terminated on the following working day with the followina exceptions: Third Party Notification: A third-party notification service �vill be provided by the City for all residential customers who are 6� years of aQe or older, or who are dependent adults as defined in Section 1�610 of the Welfare and Institutions Code. The City t��;�ekpar�ment Customer Service division will �tt�mpt-t� notify the third party�rers�r�c�designated by the customer-�r�r�ke of record. if that customer's account is past due and subject to termination. A du�licate F-0091-7/93 _. ' • • _ � �C�'TY OF REDDING, CALIFORNIA - Council Policy SUBJECT Resolution Policy Effective COLLECTION OF DELINQUENT Number tvumber Date Page UTILITY ACCOUNTS 99- 1402 08/03/99 3 delinquent notice and final notice will be mailed bv first class mail to the third part.y and t-� ��T��ioirshall specify�rr�ar�n what is required to prevent termination of services. Dispute of Utility Billing: Whenever a customer has issued a complaint or requested an investigation into his or her utilitv charges��ithin€r�20 days of receivinQ the disputed bill, utiliry services will not be terminated for nonpaytnent while such comptaint or investigation is pending. The customer will be contacted by the ' Customer Service division by telephone,in person,or via first class mail with an explanation of the disputed charges within ten days after receiving the complaint or request for investiQation. If after receivin�� said eYplanation, the customer still believes the bill to be incorrect, the customer may request a hearing with a review mana�er of the ' crrt Customer Service division who shall make a determination on the customer's complaint or request for investi�ation. The review manager shall also consider whether the customer shall be permitted to amortize the unpaid amount over a reasonable period of time,but not to e�ceed twelve months. Permission to amortize the unpaid balance for more than twelve months must be approved by the Director of Utilitv Customer Service. Any customer whose request for a hearing by a � rrrerct Customer Service review mana�er has resulted in an adverse determination may appeal to the Reddin� City Council within 30 days of the review manager's determination. Master Meter Notification of Non-Payment Termination: Whenever electric or water services are furnished to customers through a master meter where the owner or manager is the utility's customer, the Customer Service division will make every good faith effort to inform the actual users of these services if the account becomes delinquent and subject to termination. Notification will be given to users at least ten days prior to the scheduled termination of services. The E�tt�-tt�i�i�t�Customer Service division will continue to provide service to the actual users if one or more are willing to assume responsibility for subsequent utilitv charQes for the entire premises and have met the t��:�r�men�`�conditions for utilitv service. The��-s tenants furnished utilitv services throu�h a master meter will not be required to pay the owner's or manager's delinquent account as a condition of establishina utility service. Medical Certification of Life-Threatening Situation, Lifeline Customers and Medical Facilities: Residential utility F-0091 -7/93 .I . � , . � � � ` � �Cf TY OF REDDING, CALIFORNIA ' Council Policy SUBJECT Resolution Policy Effective COLLECTION OF DELINQUENT Number Number Date Page UTILITY ACCOUNTS 99- 1=�02 08/03/99 4 � � . customers who assert that pavment of utilitv charaes w-ithin the normal period of time is bevond his or her means. and the customer has provided a si�ned statement from a licensed �hysician or sur�eon to the Customer Service division prior to termination that such action �vould result in a life-threateninQ situation to the customer will automaticallv receive a l� dav extension. Notice of this extension will be sent by certified mail to the customer of record, an,y known third partv. and a co�y of such notice forwarded to the Citv Attornev's office. Lifeline customers will automatically receive a 15 dav extension. Notice of this extension will be sent bvi certified mail to the customer of record. anv known third partv. and a copv of such notice will be forw-arded to the Citv Attornev's oftice. Medical Facilities for this�,umose of this policv will be defined as Hospitals, inpatient care clinics. rnirsing homes.outpatient clinics.and residential care facilities for decelopmentallv and phvsicallv disabled persons will automaticallv receive a 1� dav extension. Notice of this extension will be sent by certified mail to the customer of record.any known third partv.and a co�v of such notice will be forwarded to the Citv Attornev's office. Extreme and unusual hardship: In the case of extreme and unusual hardship as outlined in Reddina Municipal Code, Section 14.20.020 (E), utilitv services mav be continued for a desianated and limited period of time bv the Director of Customer Service or the Cit�Mana�er, but shall not exceed 90 davs. Inability to Pay Utility Bills: Any residential customer who has notified the zerrt Customer Service division prior to termination for nonpayment that he or she is unable to pay within the normal payment period will be allowed to amortize the unpaid amount over a reasonable period of time,not to eYceed 12 months. The customer will be required to pay the amortized amount plus the current utility charges each month. Failure to pay the amortized amount plus the current charges each month�vill nullify the amortization a�reement, and the customer will be required to pay the entire outstanding balance. Amortization of an unpaid balance for a period of more than 12 months must be approved by the Director of Customer Service. F-0091 -7/93 �, + • • . ' CfTY OF REDDING, CALIFORNIA ' Council Policy SUBJECT Resolution Policy Effective COLLECTION OF DELINQUENT Number tvumber �ate Page UTILITY ACCOUNTS 99- 1402 08/03/99 5 Nonpayment Reconnection: Utility services disconnected for nonpayment will be reconnected upon payment of the entire amount due, which shall include all delinquent utility charbes,fees,penalties and deposits. Utility services will not be restored to a customer until all conditions for service have been satistied. New customers applying for utility services at a location where utilities have been terminated as a result of nonpayment of account, ma�t-prrr�i�e—mav be rec�uired to provide the � Customer Service division with proper identification and a si�ned rental agreement from the property owner or landlord. New customers mav�i�f be required to siQn a utility service contract. Multiple Tenant Occupancy: The names of multiple tenants residina at the same residential location (roommates) shall be provided to the utility department as a condition of receivina utility services. All occupants of leQal age are jointly and severely responsible for the charges for utility services incurred whilevin residence. If the City has terminated utility services for nonpayment at a location where multiple tenants had been occupying a single residential unit, such utility services will not be reinstated for a new customer until proof is provided to Customer Service by the owner or landlord that all the previous tenants who were financially responsible for the delinquent utility charges have move. Whenever one or more of those tenants responsible for the accumulation of outstanding utility char�es continues to reside at such location, the delinquent charges, all fees, penalties and deposit req,uirements must be paid in full before utility services will be reinstated. If those tenants move to another address within the City's utility service area, the Customer Service division will actively pursue collection procedures, up to and including termination of current utiliry services at the new location, from any and/or all of those tenants who resided at the previous address where outstanding utility charges were incurred. Closed Delinquent Accounts: A closing statement is due and pavable�0 days after the date of mailinQ and deemed delinquent and sub�,ect to late fees and penalties if closed statement remains 'r€unpaid after 30�days�fter-�� i�ir b. If the delinquent bill has not been paid and an eYtension has not been approved by �—ati�i� d�epar�m�r�-Customer Service division, accounts will automatically receive three successive pre- collection demand letters from Citv or a collection agency durin� a 30-day period. All monies F-0091 -7/93 , � � . � � � . ' ' CITY OF REDDING, CALIFORN/A ' Council Policy SUBJECT Resolution Policy Effective COLLECTION OF DELINQUENT Number ►vumber Date Page UTILITY ACCOUNTS 99- 1402 08/03/99 6 and/or correspondence received durin� this 30-day period will be forwarded directly to the City's �p Customer Service division. At the conclusion of the 30-day pre-collection letter service period, the ' � � , Customer Service division will actively pursue collection throuah one or more of the followina procedures: 1. Skip tracing, running credit reports, verification of employment, and contact with the customer via telephone and/or written correspondence. 2. Filing of small claims action seeking a judgement to garnish waaes, lien personal or real property, tap bank accounts and/or daily receipts. � 3. AssiQnment of the delinquent account to a collection aQency or attorne�to initial further le�al action to collect outstandin Lrtilitv charaes. � Amended on November 19, 1996, by Resolution No. 96-207 Amended on Au�ust 3. 1999, bv Resolution No. 99-YYx F-0091-7/93