HomeMy WebLinkAboutReso 2009-064 - Council Policy 1404
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RESOLUTION NO. 2009 - 64
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF REDDING AMENDING COUNCIL POLICY
NO. 1404 ENTITLED LATE FEES AND UTILITY
DEPOSITS
WHEREAS, on September 15, 1992, the City Council adopted Utilities Policy No. 1404
to set forth guidelines for the assessment of late fees on delinquent utility accounts and the
payment of utility deposits; and
WHEREAS, the City Council wishes to further amend its Late Fees and Utility Deposits Policy.
NOW, THEREFORE BE IT RESOLVED by the City Council that Council Policy No. 1404,
Late Fees and Utility Deposits, be amended as set forth in the policy attached hereto and made a part
hereof.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted
at a special meeting ofthe City Council on the 15th day of June, 2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Dickerson, Jones, McArthur, Stegall, and Bosetti
None
None
None
~Jv~'7JJ -
RICK BOSETTI, Mayor
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Attest:) )./ '/
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pi~~~A~~a~tCityc'erk
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Form Approved:
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RICHARD A DUVERNA , City Attorney
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Per approved June 15,2009, City Council minutes, the correct vote relative to Re~ol~~i~n-N~-
2009-64 is as follows: . . ,
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AYES: Council Members - Dickerson, McArthur, Stegall, and Bosetti
NOES: Council Members - Jones
ABSTAIN: Council Members - None
,ABSENT: Council Members - None
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SUBJECT
RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
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 past due accounts in recent years, it is fiscally
responsible and appropriate that the City Council adopt a policy governing utility deposits and late charges.
PURPOSE
The purpose of this policy is to provide uniform and consistent guidelines for the assessment oflate charges
on past due utility accounts and the payment of utility deposits.
POLICY
I. Late Charges:
A. All residential utility accounts, where payment is not received by the due date ofthe monthly
utility bill, will be assessed a late charge as determined by action of the City Council. This
charge will be applied to any unpaid past due balance when the Late Notice is generated,
providing ten (10) additional days and allowing an additional five (5) days for mailing (in
compliance with Public Utilities Code (PUC) Section 10010.1). If payment is not received
by the due date of this notice, a Final Disconnection Notice will be mailed to the customer
and the account will be assessed the corresponding fee.
B. All commercial utility accounts, where payment is not received by the due date of the
monthly utility bill, will be assessed a late charge to any unpaid past due balance or the
current Late Notice charge as determined by action of the City Council. The late charge will
be assessed at the time the Late Notice is generated. If payment is not received by the due
date of this notice, a Final Disconnection Notice will be mailed to the customer and the
account will be assessed the corresponding fee.
C. All late fees may be subject to increase as approved annually by the City Council.
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 charge or whether the late charge should be waived for any given month. The
determination by the Supervisor may be appealed to the Customer and Field Services Manager, or
designee.
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SUBJECT
RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTNE
DATE
PAGE
LATE FEES AND UTILITY DEPOSITS
92-405
1404
09/15/92
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 the current minimum deposit requirement as established by
the Electric Utility Director. The deposit may be amortized for a maximum of four (4)
installments. It will be waived for a commercial account operating a like business within
the previous twelve to eighteen (12-18) months, if one of the following occurs.
1. The customer of record presents a valid letter of credit from another utility.
2. The customer of record has previously established and maintained a good payment
history with Redding's Utilities for a like business.
3. The customer of record authorizes the Customer and Field Services Division to run
a credit scoring report. The customer must also agree to pay a subsequent fee for such
report and have a qualifying credit score.
B. New residential accounts maybe required to pay a deposit of twice the estimated average
aggregate utility bill, but not less than the current minimum deposit requirement. The
deposit may be amortized for a maximum off our (4) installments. It will be waived for a
residential account if one of the following occurs:
I. The new customer presents a valid letter of credit from another utility for services
received in the previous twelve (12) months.
2. The new customer has previously established and maintained a good payment history
with Redding's Utilities within the past eighteen (18) months.
3. The new customer authorizes the Customer and Field Services Division to run a credit
scoring report. The customer must also agree to pay a subsequent fee for such report
and have a qualifying credit score.
4. A current City of Redding customer meeting the City's credit criteria has signed an
Account Payment Guaranty form agreeing to be co-responsible for utility charges
during the time credit is being established for the primary customer.
C. Utility accounts scheduled for disconnection after the expiration of the Final Disconnection
Notice will be required to pay any outstanding or additional required deposit to avoid service
disconnection or to reconnect utility service.
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SUBJECT
RESOLUTION
NUMBER
POLICY
NUMBER
EFFECTIVE
DATE
PAGE
LATE FEES AND UTILITY DEPOSITS
92-405 .
1404
09/15/92
3
D. Utility accounts with a combination of three (3) or more Returned Payment Notices and/or
Final Disconnection Notices within a twelve (12) month period will be assessed the
appropriate deposit on file for that account.
III. Customers may earn interest 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 (12) months, effective after the full deposit is paid,
utility deposits will be applied to the customer's utility account, certificates of deposits or passbooks
will be returned to the customer, and any Account Payment Guaranty agreements will be terminated.
V. A customer may request a hearing with a Customer Service Supervisor to review the customer's
payment history, the estimated deposit amount, or whether the deposit payment may be amortized.
The determination by the Supervisor may be appealed to the Customer and Field Services Manager,
or designee.
Amended on 4-6-93 by Resolution No. 93-115
Amended on 9-7-97 by Resolution No. 97-153
Amended on 8-3-99 by Resolution No. 99-108
Amended on 6-15-09 by Resolution No. 2009-64