HomeMy WebLinkAboutReso 97-153 - Amending Policy 1404, Late Fes and Utility Deposits, Effective 01/27/98 ` � �
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RESOLUTION NO. 97-/,S3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF REDDING AMENDING POLICY 1404, LATE FEES
AND UTILITY DEPOSITS, EFFECTIVE JANUARY 27,
1998.
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 April 6, 1993; 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
January 27, 1998, 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 hereof.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted
at a regular meeting of the City Council on the 2nd day of septembe,r 1997, by the following
vote:
AYES: COUNCIL MEMBERS: Kehoe, McGeorge and Murray
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: P. Anderson and R. Anderson
ABSTAIN: COUNCIL MEMBERS: None
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PATRICIA A. ANDERSON, Mayor
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Attest:. Form Approved: �
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Connie Strohmayer, Clerk W. Leonard Wingat ity Attorney
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Amend�;�$ 08/03/99 by Resolution No. 99-108
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� CI TY OF REDDING, CALIFORN/A
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
LATE FEES AND UTILITY DEPOSITS 92-405 1404 09/15/92 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 assessment late fees
on delinquent utility accounts and the payment of utility deposits.
POLICY
I. Late Fees. All utility accounts will be assessed a late fee to be applied to the delinquent
unpaid balance at the time each customer's bill is mailed as follows:
A. A late fee of 1.5%, or$3.00,whichever is greater, will be assessed on the delinquent
unpaid balance if a customer has had only one late payment within the past twelve-
month period.
B. A late of 3%, or $6.00, whichever is greater, will be assessed on the delinquent
unpaid balance if a customer has had two late payments within the past twelve-
month period.
C. A late fee of 6%, or$12.00, whichever is greater, will be assessed on the delinquent
unpaid balance if a customer has had three or more late payments within the past
twelve-month period.
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 tier or whether the late fee should be
waived for any given month. The deternunation by the customer service supervisor may be
appealed to the Director of Customer Service.
II. Deposits. A utility deposit will be required as follows:
A. New commercial accounts may be required to pay a deposit of twice the estimated
average aggregate bill. The deposit will be waived for a commercial account
operating a like business who presents a valid letter of credit from another utility,
or one which has maintained a good credit history with the City of Redding for a like
business.
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C/TY OF REDDING, CALIFORNIA
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
LATE FEES AND UTILITY DEPOSITS 92-405 1404 09/15/92 2
B. New residential accounts may be required to pay a deposit of twice the estimated
average aggregate utility bill. If a customer presents a valid letter of credit from
another utility, or has maintained a good credit history with the City of Redding, the
deposit requirement will be waived.
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.
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 48-hour disconnection notice has been delivered.)
F. A deposit will be required if a customer's utility credit rating has declined.
III. Interest may be earned on the deposit amount required by the City in the following 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 and certificates of deposit or passbooks will be returned to
the customer.
V. A customer may request a hearing with a customer service supervisor to review the
customer's payment history or the estimated deposit account. 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
supervisor 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
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