AGENDA
ITEM
17 AGENDA
ITEM
CALEXICO California
WHERE CALIFORNIA AND MEXICO MEET 17
CITY COUNCIL
AGENDA STAFF REPORT
DATE: May 8, 2024
TO: Mayor and City Council
PREPARED BY: Esperanza Colio Warren, City Manager
sand Fors and Morage Morager ma Cale n
APPROVED BY: Esperanza Collo Warren, City Manager
SUBJECT: Second and Final reading consideration of an Ordinance Amending Chapter 13.01 of the Municipal Code Relating to Water Service, a Resolution Updating Late Fees for Utility Bills, and Adoption of a Policy on Discontinuation of Residential Water Service for Compliance with SB 998, the Water Shutoff Protection Act Recommendation:
Second and Final reading consideration of an Ordinance Amending Chapter 13.01 of the Municipal Code Relating to Water Service, a Resolution Updating Late Fees for Utility Bills, and Adoption of a Policy on Discontinuation of Residential Water Service for Compliance with SB 998, the Water Shutoff Protection Act.
It is recommended that the City Council:
1. Introduce an Ordinance of the City Council of the City of Calexico, California Amending Title 13, Chapter 13.01 of the City of Calexico Municipal Code, Relating to Water Service.
2. Adopt a Resolution No. _, a Resolution of the City Council of the City of Calexico, California, Establishing Updated Late Fees/Penalties fol Delinquent Utility Bills
3. Adopt the attached Policy on Discontinuation of Residential Water Service by motion.
8121100109142118150.1
Background/Discussion:
In 2018, the California Legislature approved Senate Bill 998, the Water Shut-Off Protection Act ("SB 998). SB 998 provides new and enhanced protections for residential water service customers relating to billing and disconnection of water service for nonpayment. The requirements of SB 998 include:
• All urban and community water systems, including the City, must have a written policy on discontinuation of residential water service that addresses certain subjects required by SB 998. The policy must be posted on the water system's website and be available in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by 10% or more of the water system's service area.
• Residential water service cannot be disconnected for nonpayment until a payment by a customer has been delinquent for at least 60 days. • Specific notice procedures for residential customers and occupants. All notices must be provided in the languages mentioned above. In addition, under certain circumstances, the water system must provide a written copy of its policy on discontinuation of water service before disconnecting service for nonpayment. • SB 998 prohibits water systems from discontinuing service to customers who meet certain medical and financial hardship requirements and are willing to enter into a payment arrangement for full repayment of the delinquent charges. • SB 998 requires water systems to have an established policy for how all residential customers may request a payment arrangement, and the system's written policy must describe this process.
• SB 998 requires water systems to report the number of annual discontinuations of residential service for inability to pay on its website and to the State Water Resources Control Board.
Prior laws concerning discontinuation of residential water service (Public Utilities Code § 10009 et seq.) continue to remain in effect and are supplemented by SB 998.
Municipal Code Updates
Currently, the City's rules and procedures regarding customer billing, fees and charges, complaints and disputed bills, and disconnection for nonpayment are addressed in various sections of Chapter 13.01 of the City's Municipal Code. The attached Ordinance has been drafted to revise these Municipal Code provisions to comply with SB 998 and provide even further protection to City customers.
Update to Utility Bill Late Fees
81211.00109\42118150.1
Currently, the City charges a late fee of $13.19 for all delinquent utility bill payments.:
The proposed Resolution would update the City's late fee to 5% of the charges on a delinquent utility bill. This change would reduce the burden of late fees for customers with low or modest bill amounts, while maintaining an incentive for all customers to pay on time.
As an example, for an average customer with a utility bill of $100.00 per month, the current late fee represents a charge of over 13% for late payments. By shifting to a late fee of 5%, the same customer would pay a $5 late fee, and all customers will be treated equally by paying a late tee based on the amount of their utility bill.
Policy on Discontinuation of Residential Water Service
Finally, attached is a proposed Policy on Discontinuation of Water Service ("Policy").
The Policy has been drafted to implement the proposed provisions of Municipal Code Chapter 13.01, to meet the requirements of SB 998, and to provide further protection to City customers. In compliance with SB 998, the proposed Policy includes the City's contact information, billing procedures, discontinuation of service procedures, notification process, restoration of service procedures, information on how to contest or appeal a bill, provisions concerning extensions or other alternative payment arrangements, and other related items.
Attachments:
1) Ordinance of the City Council of the City of Calexico, California Amending Title 13, Chapter 13.01 of the City of Calexico Municipal Code, Relating to Water Service 2) Resolution No. _ a Resolution of the City Council of the City of Calexico, California, Establishing Updated Late Fees/Penalties for Delinquent Utility Bills 3) Policy on Discontinuation of Residential Water Service 81211.00109\42118150.1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CALEXICO, CALIFORNIA, AMENDING TITLE 13,
CHAPTER 13.01, RELATING TO WATER SERVICE
The City Council of the City of Calexico, California, does hereby ordain as follows:
SECTION 1. Amendment to Municipal Code. Calexico Municipal Code Section
13.01.270, Charges for Water Service, is hereby amended to read as follows:
13.01.270 Charges for water service.
A. Water Fees. The city council shall by resolution or ordinance set the amount of charges, fees, and assessments that include, but are not limited to the following:
1. Base rate or fixed component water service charge.
2. Water usage charge or variable component charges based upon billing units used by the customer. A billing unit equals one hundred cubic feet or seven hundred forty-eight gallons of water.
3. Service charges other than the base rate.
4. Late fees.
5. Return-check fees.
6. Development water impact fees.
7. Water connection fees.
8. Shut-off notice processing fee.
9. Reconnection fees during regular business hours after water shut off.
10. Reconnection fees during non-regular business hours after water shut off.
11. Fire hydrant water use fees from construction or roving meters.
12. Fire line fee.
13. Fee for water used by contractors in new construction.
14. Meter tampering fee.
15. Missed appointment fee after second missed appointment. 81211.00100\42001242.3
16. Penalty fee for unauthorized water connections and use of city water by the use of "cheater pipes, "straight lines," "hoses" or other means.
17. Other fees as determined by the city council.
B. Water Billing Duration. The city shall determine the duration of the billing period and may change the duration of the billing period from time to time. If the due date is a Saturday, Sunday or legal holiday, charges shall become delinquent at the close of business on the next business day after said Saturday, Sunday, or legal holiday. Postmarks will not be accepted as the date the payment was received.
C. Unified Billing. Municipal utility services shall be billed under a unified bill which includes water, sewer, garbage collection charges and other charges as the city designates.
D. Unpaid Water Bills are Liens. All unpaid accounts for water delivered at any premises shall constitute a lien against the same and shall be subject to collection all as provided by the Revenue Bond Law of 1941 as found in Title 5, Division 2, Part 1, Chapter 6 of the California Government Code.
E. The city council may, by resolution or motion, adopt or amend a policy on discontinuation of residential water service, which will comply with the provisions of Health & Safety Code Section 116900, et seq., and Public Utilities Code Section 10009, et seq. The policy may include, but may not be limited to, provisions concerning discontinuation of service, notification, restoration of service, procedures to contest or appeal a water bill, extensions or other alternative payment arrangements, protections available to qualified low-income consumers, procedures for becoming a consumer under specified circumstances, and related matters.
SECTION 2. Amendment to Municipal Code. Calexico Municipal Code Section
13.01.290, Application of Utility Bill Payments, is hereby amended to read as follows:
13.01.290 Application of utility bill payments.
Any payments received by the city for the payment of utility bills shall be applied to the outstanding balances of service charges in the following order:
A. Water (fixed and variable charges), refuse, and sewer, B. Fire line,
C. Fines, penalties, fees, charges, or assessments,
D. Deposit.
81211.00100\42001242.3
Payments applied to water, refuse and sewer shall be applied proportionally among the three services. Moneys paid where any portion of an account is delinquent shall first be credited to the delinquent portion of the bill and then to the current billing.
SECTION 3. Amendment to Municipal Code. Calexico Municipal Code Chapter Section 13.01.300, Payment Delinquency, is hereby amended to read as follows:
13.01.300 Payment delinquency.
Penalties shall be charged on all delinquencies as established by resolution of the city council. All delinquent charges are considered liens against the property and the city manager, finance director or their designees are empowered to file liens against the appropriate premises for charges as set forth in this chapter. For the purposes of this chapter, a water bill will be delinquent if a user is withholding all or portions of said water bill pending resolution of a dispute regarding said water bill. The city reserves the right to refer accounts to a collection agency when past- due balances exceed one hundred twenty calendar days.
SECTION 4. Amendment to Municipal Code. Calexico Municipal Code Chapter
13.01.310, Water Service Shut-Off Notice, is hereby amended to read as follows:
13.01.310 Water service shut-off notice.
A. Notices to Non-Residential Customers. If a service charge remains unpaid for one complete billing period, the financial services department shall notify in writing by mail the customer of the premises at least nineteen days after the delinquent bill is sent, that the water service will be discontinued if payment is not made within fifteen calendar days after the date on the shut-off notice. A shut-off notice processing fee as determined by resolution of the city council may be charged at the time that the notice is sent. In addition to the fifteen day termination notice, a final forty-eight hour termination notice shall be given to the customer if a water service charge remains unpaid.
B. Notices to Residential Customers. If a service charge remains unpaid for one complete billing period, and the amount of the delinquency exceeds $150 for the water portion of the service charges, the financial services department shall notify in writing by mail the customer of the premises at least nineteen days after the delinquent bill is sent, that the water service will be discontinued if payment is not made within ninety calendar days after the date the charges became delinquent. The notice shall be sent at least fifteen calendar days prior to shut-off.
A shut-off notice processing fee as determined by resolution of the city council may be charged at the time that the notice is sent. In addition to the fifteen day termination notice, a final forty-eight hour termination notice shall be given to the customer if at least $150 of water service charges remain unpaid. The city shall provide additional notices to residential customers as provided in its policy on discontinuation of residential water service. The notices shall comply with all 81211.00100\42001242.3
applicable provisions of the City's policy on discontinuation of residential water service.
SECTION 5. Amendment to Municipal Code. Calexico Municipal Code Section
13.01.320, Water Service Shut-Off, is hereby amended to read as follows:
13.01.320 Water service shut-off.
Except for shut-down of services related to those violations set forth in Section
13.01.330, for which no notice is required, notice must be provided to customers prior to a shutdown of services in accordance with Section 13.01.310. No service shall be disconnected on a Thursday, Friday or the day before a holiday. However, notwithstanding the foregoing provisions of this section, financial services department authorized personnel under the direction of the city manager may, at their discretion, agree to forbear discontinuance of water service for a limited period of time and by special, written agreement with the water user in arrears. For non-residential customers, failure of the water customer to keep future charges current and fulfill all the terms of the agreement may make the agreement null and void and make all charges in arrears due immediately. Failure of non-residential customers to pay immediately all charges in arrears will result in discontinuance of water service. For residential customers, failure of the water customer to keep future charges current and fulfill the terms of the agreement will be subject to shutoff as provided in the policy on discontinuation of residential water service.
Water services shall be restored within two working days at such time as the financial cause for termination or discontinuance has been rectified and payment has been made of all proper charges due, including any reconnection charges and meter tampering charges approved by resolution of the city council. If water service has been shut-down due to some physical cause, water service shall be restored upon such cause being rectified.
SECTION 6. Amendment to Municipal Code. Calexico Municipal Code Section
13.01.340, Appeals, is hereby amended to read as follows:
13.01.340 Billing Disputes and Appeals.
A. Disputed Bills. A customer may initiate a complaint or request an investigation regarding the amount of a bill prior to the date the bill becomes delinquent.
Any amounts withheld by the customer pending resolution of said dispute shall be considered delinquent to the extent said amounts are withheld after they have become due. Notwithstanding, the city will not discontinue water service for nonpayment during an investigation by the city of a complaint or request for investigation that was timely received by the city before the bill becomes delinquent, or during the pendency of a timely appeal.
B. City Review. A timely complaint or request for investigation will be reviewed by a manager of the city, who will provide a written determination to the customer. The review will include consideration of whether the customer may 81211.00100\42001242.3
receive an extension, amortization, alternative payment schedule, or payment reduction. The city may, in its discretion, review untimely complaints or requests for investigation; however, such complaints or requests are not subject to appeal. After reviewing the disputed bill, the city will:
1. Issue a corrected bill or reflect the corrections on the bill in a subsequent billing period; or
2. Advise the customer that the bill is correct as presented, in which case the customer may choose to have the meter removed for testing at the customer's own expense, or may appeal the city's determination.
C. Appeal to City Manager. Any customer whose timely complaint or request for an investigation has resulted in an adverse determination may appeal the determination to the city manager or his or her designee, who are hereby authorized to hear appeals regarding water service bills and make any corrections of any assessments or charges that he or she believes is just and appropriate under the circumstances. The appeal may be made by filing a written notice of appeal with the city clerk within ten (10) business days of the city's mailing of its initial determination. The decision of the city manager or his or her designee shall be final as to non-residential customers.
D. Appeal to City Council. Any residential customer whose timely complaint or request for an investigation has resulted in an adverse determination from the city manager or his or her designee may appeal the determination to the city council by filing a written notice of appeal with the city clerk within ten (10) business days of the city manager or his or her designee's mailing of their determination. Upon receiving the notice of appeal, the city clerk will set the matter to be considered at an upcoming city council meeting and mail the customer written notice of the time and place of the meeting at least ten (10) days before the meeting. The decision of the city council shall be final as to residential customers.
SECTION 7. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.
SECTION 8. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this Ordinance is found to be invalid by a court of competent jurisdiction, the balance of this Ordinance shall not be affected
8121100100142001242 3
SECTION 9. Certification and Publication. The City Clerk of the City of Calexico shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under California Government Code Section 36933.
SECTION 10. CEQA. The City Council finds that adoption of this Ordinance is not a "project," as defined in the California Environmental Quality Act because it does not have a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and concerns general policy and procedure making.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Calexico, California on the day of _ 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
GLORIA ROMO, MAYOR
ATTEST:
VERONICA L. ALVARADO, CITY CLERK
APPROVED AS TO FORM:
CARLOS CAMPOS, CITY ATTORNEY
81211 00100142001242 3
State of California
County of Imperial) s.s.
City of Calexico
1, Veronica Alvarado, City Clerk, hereby certify that the foregoing is a true copy of Ordinance No. _ _ introduced at a regular meeting held on theM. _day of 2024, and duly adopted by the City Council of the City of Calexico, California at a regular meeting thereof held the _day of. , 2024.
AYES:
NOES:
ABSTAIN:
ABSENT:
VERONICA L. ALVARADO, CITY
CLERK
812110010042001242 3
RESOLUTION NO. _
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALEXICO, CALIFORNIA, ESTABLISHING AN UPDATED LATE
FEE / PENALTY FOR DELINQUENT UTILITY BILLS
WHEREAS, Section 13.01.270(C) of the Calexico Municipal Code provides that the City's municipal utilities shall be billed on one bill that includes water, sewer, garbage collection, and other charges as the City designates; and
WHEREAS, Section 13.01.300 of the Calexico Municipal Code provides that the City may charge a penalty on all delinquencies, as established by a resolution of the City Council; and WHEREAS, the City currently charges a flat fee / penalty of $13.19 for delinquent utility bills; and
WHEREAS, the City desires to update the late fee / penalty as further provided below.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of Calexico as follows:
SECTION 1. Incorporation of Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
SECTION 2. Adoption of Updated Late Fee / Penalty for Delinquent Utility Bills. The City Council hereby adopts the following revised late fee / penalty for all delinquent municipal utility bills pursuant to Municipal Code section 13.01.300:
Late Fee / Penalty Notes
5% of the delinquent utility bill The late fee / penalty will be computed based on charges for the billing cycle shown on the
delinquent bill, and not cumulatively with
previous delinquent balances.
SECTION 3. California Environmental Quality Act ("CEQA"). The City Council hereby finds and determines that this Resolution relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of CEQA and the State CEQA Guidelines, section 15378(b)(5).
SECTION 4. Severability. The City Council declares that, should any provision, section, paragraph, sentence, or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, or words of this Resolution shall remain in full force and effect.
SECTION 5. Supersession of Conflicting Resolutions or Motions. This Resolution shall supersede any conflicting provisions contained in previous Resolutions, motions, or similar enactments of the City Council.
SECTION 6. Effective Date. This Resolution shall take effect immediately upon its adoption and shall apply to bills issued after its effective date. 8121100100\42177343.1
PASSED, APPROVED AND ADOPTED at a special meeting of the City Council of the City of Calexico held on the day of _ 2024, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Gloria Romo, Mayor
City of Calexico
ATTEST:
Veronica L. Alvarado, City Clerk
City of Calexico
APPROVED AS TO FORM:
Carlos Campos, City Attorney
City of Calexico
81211.00100\42177343.1
POLICY ON DISCONTINUATION OF RESIDENTIAL WATER SERVICE
Application of Policy. This Policy on Discontinuation of Residential Water Service (this "Policy") shall apply to all City accounts for residential water service, but shall not apply to any accounts for non-residential service. To the extent this Policy conflicts with any other rules, regulations, or policies of the City, this Policy shall control.
2. Contact Information. For questions or assistance regarding your water bill, the City's Customer Service staff can be reached at (760) 768-2120 or (760) 768-2122.
Customers may also visit the City's Customer Service desk in person Monday through Thursday and every other Friday, from 8:00 a.m. to 5:00 p.m., except on City holidays.
3. Billing Procedures and Late Fees.
3.1 Billing Procedures. Water service charges are payable to the City once every month or at such other frequency as determined by the City Council from time to time. All bills for water service are due and payable 30 days after mailing or e-mailing by the City. Any bills not paid within such period are considered delinquent.
3.2 Late Fees. Delinquent bills are subject to a late fee of five percent (5%) of the delinquent utility service charges. The late fee shall only apply to the portion of the bill for delinquent utility service charges, but not to other fees or charges included on the bill.
No late fee will be assessed or collected until the bill is at least 30 days delinquent. In addition, no late fee will be assessed if: (1) the customer makes a payment of $10.00 or more on the bill by the due date; (2) the customer requests and enters into a payment plan under Section 6 prior to the due date; (3) the customer has an abnormally large bill of at least five (5) times the average bill during the previous 12 months due to a leak or other water delivery issue on the premises that was identified and timely addressed as shown by documentation provided to the City.
4. Discontinuation of Water Service for Nonpayment. If a customer's delinquency for the water-service portion of a bill is at least $150, and has been delinquent for at least 90 days, the City may discontinue water service to the service address.
4.1 Written Notice to Customer. The City will provide a mailed notice to the customer of record at least fifteen (15) days before discontinuation of water service. The notice will contain:
(a) the name and address of the customer;
(b) the amount of the delinquency;
(c) the date by which payment or payment arrangements must be made to avoid discontinuation of service;
(d) the procedure by which the customer may initiate a complaint or request an investigation or appeal concerning service or charges; 1 81211.00109\40929785.2
(e) a description of the procedure by which the customer may request an alternative payment arrangement, which may include an extension, amortization, or alternative payment schedule, or if available, a flat-rate payment plan for future bills;
the City's standard fees and charges for delinquent bills or disconnection of service, including late fees, disconnection fees, and reconnection fees;
(g) the procedure for the customer to obtain information on financial assistance, if applicable; and
(h) the telephone number where the customer may request a payment arrangement or receive additional information from the City.
4.2 Written Notice to Occupants or Tenants.
(a) The City will also send a notice to the occupants living at the service address at least ten (10) days before discontinuation of water service under the following circumstances: (1) the City furnishes individually metered service to a single-family dwelling, multi-unit residential structure, mobile home park, or farm labor camp and the owner, manager, or operator is the customer of record; or (2) the customer of record's mailing address is not the same as the service address. The notice will be addressed to "Occupant," will contain the information required in Section 4.1 above, and will inform the residential occupants that they have the right to become customers of the City without being required to pay the amount due on the delinquent account. Terms and conditions for occupants to become customers of the City are provided in Section 7 below. (b) If the City furnishes water through a master meter in a multi-unit residential structure, mobile home park, or permanent residential structures in a labor camp and the owner, manager, or operator is the customer of record, the City will make a good faith effort to inform the occupants, by means of written notice posted on the door of each residential unit at least 15 days prior to termination, that the account is in arrears and the service will be terminated on a date specified in the notice. If it is not reasonable or practicable to post the notice on the door of each unit, the City will post two (2) copies of the notice in each accessible common area and at each point of access to the structure or structures. The notice will inform the residential occupants that they have the right to become customers of the City without being required to pay the amount due on the delinquent account. The notice will also specify what the occupants are required to do in order to prevent termination of, or to reestablish service; the estimated monthly cost of service; the title, address, and telephone number of a representative of the City who can assist the occupants in continuing service; and the address or telephone number of a qualified legal services project that has been recommended by the local county bar association. Terms and conditions for occupants to become customers of the City are provided in Section 7 below.
2 81211.00109\40929785.2
4.3 Posting of Notice at Service Address. The City will leave a notice of imminent discontinuation of residential service and a copy of this Policy in a conspicuous place at the service address at least 48 hours before discontinuation of service. The notice will include:
(a) the name and address of the customer;
(b) the amount of the delinquency;
(C) the date by which payment or payment arrangements must be made to avoid discontinuation of service;
(d) the City's standard fees and charges for delinquent bills or disconnection of service, including late fees, disconnection fees, and reconnection fees;
(e) the procedure for the customer to obtain information on financial assistance, if applicable; and
the telephone number where the customer may request a payment arrangement or receive additional information from the City.
4.4 Circumstances Under Which Service Will Not Be Discontinued. The City will not discontinue residential water service for nonpayment under the following circumstances:
(a) When the delinquency for the water-service portion of a bill is less than $150 or less than 90 days delinquent;
(b) During an investigation by the City of a timely customer dispute or complaint under Section 5.1 below;
(c) During the pendency of a timely appeal under Sections 5.3 or 5.4 below; or
(d) During the period of time in which a customer's payment is subject to a City-approved extension, amortization, or alternative payment schedule under Section 6, and the customer remains in compliance with the approved payment arrangement.
4.5 Circumstances Under Which Service Through a Master Meter Will Not Be Discontinued. If the City furnishes water through a master meter in a multi-unit residential structure, mobile home park, or permanent residential structures in a labor camp and the owner, manager, or operator of the dwelling, structure, or park is the customer of record, the City will not discontinue residential water service for nonpayment under the following circumstances:
3 81211.00109\40929785.2
(a) When the customer's indebtedness is owed to another public agency, or when the obligation represented by the delinquent account or indebtedness was incurred with any public agency other than the City's water utility; (b) If a delinquent account relates to another property owned, managed, or operated by the customer;
(c) If a public health or building officer certifies that termination would result in a significant threat to the health or safety of the residential occupants or the public.
4.6 Special Medical and Financial Circumstances Under Which Services Will Not Be Discontinued
(a) The City will not discontinue water service if all of the following conditions are met:
The customer, or a tenant of the customer, submits to the City the certification of a licensed primary care provider that discontinuation of water service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided;
(ii) The customer demonstrates that he or she is financially unable to pay for residential service within the City's normal billing cycle. The customer is deemed financially unable to pay during the normal billing cycle it: (a) any member of the customer's household is a current recipient of CalWoRks, CalFresh, general assistance, MediCal, Supplemental
Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for
Women, Infants, and Children, or (b) the customer declares under penalty of perjury that the household's annual income is less than 200 percent of the federal poverty level; and (iii) The customer is willing to enter into an alternative payment arrangement, including an extension, amortization, or
alternative payment schedule with respect to the delinquent charges.
(b) For any customers who meet all of the above conditions, the City shall offer the customer one of the following options, to be selected by the City in its discretion: (1) an extension of the payment period; 2) amortization of the unpaid balance; or (3) an alternative paymer schedule. The City's Finance Director will select the most appropriat payment arrangement, taking into consideration the information and 4 81211.00109\40929785.2
documentation provided by the customer, as well as the City's payment needs.
(c) The customer is responsible for demonstrating that the conditions in subsection (a) have been met. Upon receipt of documentation trom the customer, the City will review the documentation within seven (1) days and: (1) notify the customer of the alternative payment arrangement selected by the City and request the customer's signed assent to participate in that alternative arrangement; (2) request additional information from the customer; or (3) notify the customer that he or she does not meet the conditions in subsection (a). (d) The City may discontinue water service if a customer who has been granted an alternative payment arrangement under this section fails to do any of the following for sixty (60) days or more: (a) to pay his or her unpaid charges by the extended payment date; (b) to pay any amortized amount due under the amortization schedule; (c) to pay any amount due under an alternative payment schedule; or (d) to pay his or her current charges for water service for ninety (90) days or more and the water service delinquency exceeds $150. The City will post a final notice of intent to disconnect service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the City.
4.7 Time of Discontinuation of Service. The City will not discontinue water service due to nonpayment on a Thursday, Friday, Saturday, Sunday, legal holiday, or at any time during which the City's office is not open to the public.
4.8 Restoration of Service. Customers whose water service has been discontinued may contact the City by telephone or in person regarding restoration of service. Restoration shall be subject to payment of: (a) any past-due amounts, including late fees; (b) any disconnection or reconnection fees, if applicable; (c) and a security deposit, if required by the City. Notwithstanding the above, the City will restore service to a customer following the discontinuation of water service for nonpayment if the customer agrees to enter into a payment plan under Section 6 and, under such payment plan, the customer immediately pays at least one-twelfth (1/12th) of the amounts due and will pay the remaining amounts in equal payments over the next 11 months, or another schedule agreed to by the customer and the City. A customer is entitled to receive a payment plan to restore service only once in any 12 month period.
5. Procedures to Contest or Appeal a Bill.
5.1 Disputed Bills. A customer may initiate a complaint or request an investigation regarding the amount of a bill prior to the date the bill becomes delinquent.
Any amounts withheld by the customer pending resolution of said dispute shall be considered delinquent to the extent said amounts are withheld after they have become 5 81211.00109\40929785.2
due. Notwithstanding, the City will not discontinue water service for nonpayment during an investigation by the City of a complaint or request for investigation that was timely received by the City before the bill becomes delinquent, or during a timely appeal.
5.2 City Review. A timely complaint or request for investigation will be reviewed by a manager of the City, who will provide a written determination to the customer. The review will include consideration of whether the customer may receive an extension, amortization, or alternative payment schedule. The City may, in its discretion, review untimely complaints or requests for investigation; however, such complaints or requests are not subject to appeal. After reviewing the disputed bill, the City will:
(a) Issue a corrected bill or reflect the corrections on the bill in a subsequent billing period; or
(b) Advise the customer that the bill is correct as presented, in which case the customer may choose to have the meter removed for testing at the customer's own expense, or may appeal the City's determination.
5.3 Appeal to City Manager. Any customer whose timely complaint or request investigation has resulted in an adverse determination may appeal the determination to the City Manager or his or her designee, who are hereby authorized to hear appeals regarding water service bills and make any corrections of any assessments or charges that he or she believes is just and appropriate under the circumstances. The appeal may be made by filing a written notice of appeal with the City Clerk within ten (10) business days of the City's mailing of its initial determination.
5.4 Appeal to City Council. Any residential customer whose timely complaint or request for an investigation has resulted in an adverse determination from the City Manager or his or her designee may appeal the determination to the City Council by filing a written notice of appeal with the City Clerk within ten (10) business days of the City Manager or his or her designee's mailing of their determination. Upon receiving the notice of appeal, the City Clerk will set the matter to be considered at an upcoming City Council meeting and mail the customer written notice of the time and place of the meeting at least ten (10) days before the meeting. The decision of the City Council shall be final as to residential customers.
6. Extensions and Other Alternative Payment Arrangements.
6.1 Time to Request an Extension or Other Alternative Payment Arrangement.
If a customer is unable to pay a bill during the normal payment period, the customer may request an extension or other alternative payment arrangement described in this Section
6. If a customer submits his or her request within 13 days after mailing of a written notice of discontinuation of service by the City, the request will be reviewed by a manager of the City. City decisions regarding extensions and other alternative payment arrangements are final and are not subject to appeal to the City Council. 6 81211.00109\40929785.2
6.2 Extension. If approved by the City, a customer's payment of his or her unpaid balance may be temporarily extended for a period not to exceed six (6) months after the balance was originally due. The City's Finance Director shall determine, in his or her discretion, how long an extension shall be provided to the customer. The customer shall pay the full unpaid balance by the date set by the City and must remain current on all water service charges accruing during any subsequent billing periods. The extended payment date will be set forth in writing and provided to the customer.
6.3 Amortization. If approved by the City, a customer's payment of his or her unpaid balance may be amortized over a period not to exceed 12 months, as determined by the City's Finance Director, in his or her discretion. If amortization is approved, the unpaid balance will be divided by the number of months in the amortization period, and that amount will be added to the customer's monthly bills for water service until fully paid.
During the amortization period, the customer must remain current on all water service charges accruing during any subsequent billing periods. The amortization schedule and amounts due will be set forth in writing and provided to the customer.
6.4 Alternative Payment Schedule. If approved by the City, a customer may pay his or her unpaid balance pursuant to an alternative payment schedule that will not exceed 12 months, as determined by the City's Finance Director, in his or her discretion. If approved, the alternative payment schedule may allow periodic lump-sum payments that do not coincide with the City's established payment date or may provide for payments made more or less frequently than the City's regular payment date. During the period of the alternative payment schedule, the customer must remain current on all water service charges accruing during any subsequent billing periods. The alternative payment schedule and amounts due will be set forth in writing and provided to the customer.
6.5 Failure To Comply. If a customer has been granted a payment arrangement under this Section 6 and fails to: (1) pay the unpaid charges by the extension date; (2) pay an amount due under an amortization schedule; or (3) pay an amount due under an alternative payment schedule; and such amounts remain delinquent for at least 30 days, then the City may terminate water service. The City may also terminate water service if the customer has been granted a payment arrangement under this Section 6 and fails to pay his or her current charges for water service and such delinquencies exceed $150.
The City will post a final notice of intent to disconnect service in a prominent and conspicuous location at the service address at least five (5) business days before discontinuation of service. The final notice will not entitle the customer to any investigation or review by the City.
7. Procedures for Occupants or Tenants to Become Customers of the City.
7.1 Applicability. This Section 7 shall apply only when the property owner, landlord, manager, or operator of a residential service address is listed as the customer of record and has been issued a notice of intent to discontinue water service due to nonpayment.
7 81211.00109\40929785.2
7.2 Agreement to City Terms and Conditions of Service. The City will make service available to the actual residential occupants if each occupant agrees to the terms and conditions of service and meets the requirements of the City's rules and regulations. i there is a physical means, is glay avalable
regulations, the City shall make service available to the occupants who have met those requirements.
7.3 Verification of Tenancy. To be eligible to become a customer without paying the amount due on the delinquent account, the occupant shall verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling.
Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code, at the discretion of the City.
8. Language for Certain Written Notices. All written notices under Section 4 and Section 6.6 of this Policy shall be provided in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by ten percent (10%) or more people within the City's service area.
Other Remedies. In addition to discontinuation of water service, the City may pursue any other remedies available in law or equity for nonpayment of water service charges, including, but not limited to: securing delinquent amounts by filing liens on real property, filing a claim or legal action, or referring the unpaid amount to collections. In the event a legal action is decided in favor of the City, the City shall be entitled to the payment of all costs and expenses, including attorneys' fees and accumulated interest.
10. Discontinuation of Water Service for Other Customer Violations. The City reserves the right to discontinue water service for any violations of City ordinances, rules, or regulations other than nonpayment.
11. Fees and Charges Incurred. Except as otherwise expressly stated in this Policy, any fees and charges incurred by a customer under any other rules, regulations, or policies of the City shall be due and payable as set forth therein.
12. Decisions by City Staff. Any decision which may be taken by the City's Finance Director under this Policy may be taken by his or her designee. 8 81211.00109\40929785.2