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HomeMy WebLinkAboutReso 96-207 - Amending its policy No. 1402 Entitled Collection of Delinquent Utility Accounts� , � . _ � • RESOLUTION NO. 96- Z O A RESOLUTION OF THE CITY COUNCII. OF THE CITY OF REDDING AMENDING ITS POLICY NO. 1402 ENTITLED COLLECTION OF DELINQUENT IJTILITY ACCOUNTS. WHEREAS, on February 18, 1992, by Resolution 92-66, the City Council adopted Policy No. 1402 entitled Collection of Delinquent Utility Accounts; and WHEREAS, staff has determined that it would be more efficient if fmal notices of termination of service were mailed 48 hours in advance of termination, rather than by personal service; IT IS THEREFORE RESOLVED by the City Council that its policy on the collection of delinquent utility accounts be amended to read as set forth in Council Policy 1402 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 �9tn day of November , 1996, by the following vote: AYES: COiJNCIL MEMBERS: P• Anderson, R. Anderson, Kehoe, Murray and McGeorge NOES: COUNCIL MEMBERS: None ABSENT: COUNCII, MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None � ' G DAV . cGE GE, ayor � � Attest: Form Approved: 9ti v ' ,� ;��z����Z �,� � � Connie Strohmayer, City lerk W. Leonard Wingat(, City Attorney Amended 08/03/99 by Resolution No. 99-109 ITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBaJECT RESOLUTION POLICY EFFECTIVE PAGE NUMBER NUMBER DATE COLLECTION OF DELINQUENT UTILITY ACCOUNTS 92-66 1402 02/18/92 1 �ACKGROUND The Customer Service Department is charged with the responsibility of administering the utility billing and collection system for the electric utility, water utility, wastewater and solid waste. PURPOSE The purpose of this policy is to formalize procedures for 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 unified bill for all utility services provided. Delinquency: All bills so rendered shall become and be deemed delinquent if unpaid 20 days after the date of mailing during the period in which the customer is establishing credit with the City. A credit code, based on the customer's payment record, will determine when delinquency reminders, demands, and notices shall be executed and when delinquent penalties shall be imposed. Bills for new customers will be deemed delinquent if unpaid 20 days after the date of mailing and the customer will be assigned a credit code of 0. New customers who do not pay utility statements within 20 days after the date of mailing for six consecutive months will be assigned a credit code of 2. Credit code 2 accounts will be deemeddelinquent if unpaid 20 days after the date of mailing. Customers paying bills within 20 days after the mailing date for six consecutive months will be assigned a credit code of 4. Credit code 4 accounts will be deemed delinquent if their bill remains unpaid for 30 days. Customers paying bills within 20 days after the mailing date for 12 consecutive months will be assigned a credit code of 6. Credit code 6 accounts will be deemed delinquent if their bill remains unpaid for 60 days. Bills for governmental agencies will be deemed delinquent if the bill remains unpaid for 60 days after date of mailing and will be assigned a credit code of 8. ITY OF REDDING, CALIFORNI COUNCIL POLICY SUBaJECT RESOLUTION POLICY EFFECTIVE PAGE NUMBER NUMBER DATE COLLECTION OF DELINQUENT UTILITY ACCOLTNTS 92-66 1402 02/18/92 2 Notification of Termination of Services: In compliance with Public Utilities Code Section 10010.1, all accounts deemed to be del.inquent will be given a ten-day demand notice. This notice will be sent by first class mail to the customer' s current mailing address, allowing an additional five days for mailing. If the delinquent bill has not been paid and an extension has not been approved by the utility department within the fifteen-day period, in compliance with the Public Ut.ilities Code Section 10010.1, a written notice of termination of service w.ill be mailed or delivered to the customer's premises at least 48 hours prior to termination, or the customer will be so notified through personal contact by telephone or in person at least 24 hours prior to termination, Whenever a 48-hour notice of termination is mailed or delivered to the customer's premises, a delinquent fee will be imposed. If the bi]_1 remains unpaid and a payment extension has not been authorized by the utilit:y department at the conclusion of the 24- or 48-hour period as specified to the customer, utility services will be terminated on the following working day. Third Party Notification: A third-party notification service will be provided by the City for all residential customers who are 65 years of age or older, or who are dependent adults as defined in Section 15610 of the Welfare and Institutions Code. The City util_'_ty department will attempt to notify a person so designated by the customer when the customer's account is past due and subject to termination. The notif.ication shall specify information on what is required to prevent termination of service. Dispute of Utility Billing: Whenever a customer has issued a complaint or requested an investigation into his or her utility charges within five days of receiving the disputed bill, utility se�rvices will not be terminated for nonpayment while such complaint or investigation is pending. The customer will be contacted by the City utility department by telephone, in person, o�_ via first class mail with an explanation of the disputed charges within ten days after receiving the complaint or request for investigation. If, after receiving said explanation, the customer still believes the bill to be incorrect, the customer may request a hearing with a review manager of the utility department who shall make a determination on the customer's complaint or request for investigation. The review manager shall also consider whether the custom�er shall be permitted to amortize the unpaid amount over a reasonable . ITY OF REDDING, CALIFORNI� � ` COUNCIL POLICY • SUBJECT RESOLUTION POLICY EFFECTIVE PAGE NUMBER NUMBER DATE COLLECTION OF DELINQUENT UTILITY ACCOUNTS 92-66 1402 02/18/92 3 period of .time, not to exceed twelve months. Permission to amortize the unpaid balance for more than twelve months must be approved by the Director of Utility Customer Service. Any custom.er whose request for a hearing by a utility department review manager has resulted in an adverse determination may appeal to the Redding City Council within 30 days after 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 utility department: will make every good faith effort to inform the actual users of these ser�rices 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 City u.tility will continue to provide service to the actual users if one or more are �ailling to assume responsibility for the entire account and have met the utility department's conditions for service. The actual users will not be required to pay the owner's or manager's delinquent account as a condition of establishing utility service. Medical Certification of Life-Threatening Situation: Residenti�il utility services will not be terminated for nonpayment of any bill if the cu:stomer asserts that payment of such bill within the normal period of time is ��eyond his or her means, and the customer has provided a signed statement from a licensed physician or surgeon to the utility department prior to termination that such action would result in a life-threatening situation to the custom.er. Inability to Pay Utility Bills: Any residential customer who has notified the utility department prior to terminaticn for nonpayment that he or she is unable to pay within the normal payment pE�riod will be allowed to amortize the unpaid amount over a reasonable period of time, not to exceed 12 months. The customer will be required to pay the amort:Lzed amount plus the current utility charges each month. Failure to pay the amortized amount plus the current charges each month will nullify the amortizati.on agreement, 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 Utility Customer Service. _ , �ITY OF REDDING, CALIFORNIA• � � COUNCIL POLICY • SUBaJECT RESOLUTION POLICY EFFECTIVE PAC� NUMBER NUMBER DATE COLLECTION OF DELINQUENT UTILITY ACC:OUNTS 92-66 1402 02/18/92 4 Nonpaysnent Reconnection: Utility services disconnected for nonpayment will be reconnected upon payment of the entire amount due, which shall include all delinquent utility charges, fees, and ��enalties. Utility services will not be restored to a customer until all condit_Lons for service have been satisfied. All new customers applying for utility services at a location where utilities have been terminated as a result of nonpayment of account must provide the utility de�partment with proper identification and a signed rental agreement from the property owner or landlord. New customers will be required to sign a utility se�vice contract. Multiple TEanant Occupancy: The names of multiple tenants residing at the same residential location (roommates;l shall be provided to the utility department as a condition of receiving utility services. All occupants of legal age are jointly and severally responsible for the charges for utility services incurred while in residence. If the City has terminated utility services for nonpayment at a location where multiple t.enants had been occupying a single residential unit, such utility services will not be reinstated for a new customer until proof is provided by the owner ��r landlord that all the previous tenants financially responsible for the delinquent utility charges have moved. Whenever c�ne or more of those tenants responsible for the accumulation of outstanding utility charges continues to reside at such location, the delinquent charges 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 utility department will actively pursue collection procedures, up to and includ:ing termination of current utility services at the new location, from any and/o�_ all of those tenants who resided at the previous address where outstandin�3 utility charges were incurred. Closed Del:inquent Accounts: A closing statement is deemed delinquent if unpaid 20 days after the date of mailing. If the del:inquent bill has not been paid and an extension has not been approved by the uti:Lity department, accounts will automatically receive three successive pre-colleci:ion demand letters from a collection agency during a 30-day period. All monies and/or correspondence received during this 30-day period will be forwarded <�irectly to the City's utility. � . �ITY OF REDDING, CALIFORNI� � COUNCIL POLICY • SUBaIECT RESOLUTtON POLICY EFFECTIVE PAGE NUMBER NUMBER DATE COLLECTION OF DELINQUENT UTILITY ACCOUNTS 92-66 1402 02/18/92 5 At the conclusion of the 30-day pre-collection letter service period, the City's uti_lity will actively pursue collection through one or more of the following �?rocedures: 1. Skip tracing, running credit reports, verification of employment, and conta<�t with the customer via telephone and/or written correspondence. 2. Filing of small claims action seeking a judgement to garnish wages, lien persoilal or real property, or tap bank accounts and/or daily receipts. 3. Assigilment of the delinquent account to a collection agency.