City of Lathrop
PUBLIC HEARING (PUBLISHED NOTICE) ORDINANCE TO ADOPT
AMENDMENTS TO THE LATHROP MUNICIPAL CODE (LMC) TO
UPDATE CHAPTER 13.04 WATER SERVICE SYSTEM, CHAPTER
13.16 SEWER SERVICE SYSTEM AND CHAPTER 13.20 UTILITY
RATES AND CHARGES IN TITLE 13, PUBLIC SERVICES.
OCTOBER 14, 2024
ITEM #5.4
Background
◦ On September 9, 2024 the City Council
received a referral to discuss the potential of
the City reducing late fees for utility bills and
the possibility of offering a discount for
veterans. At that meeting staff was directed
to evaluate areas where the fees could
potentially be reduced and to develop a
veteran discount program.
Veteran Discount
◦ This Municipal Code Text Amendment
intends to update Sections 13.04 and
13.16 of the Lathrop Municipal Code
(LMC) to include language that would
provide current military personnel and
veterans presenting proper documentation
a 10% reduction to the fixed meter
charge for water and a 10% reduction in
the flat monthly service charge for
wastewater.
◦ The 10% reduction for current military
and veterans aligns with the City’s support
of the military community and aims to
extend gratitude to those who have
served or are currently serving in the US
armed forces
Fee Reduction
◦ The proposed Municipal Code Text Amendment to update Section 13.20 of the Lathrop Municipal Code (LMC) would revise the fee currently charged of $30 for suspension/termination of services and $30 for service reconnection to a one-time charge of $35 to restore services to the same user when it is discontinued for failure to pay a delinquent account.
◦ Staff also compared the City’s utility fees to surrounding agencies and found that the City lacked a cut lock fee to recuperate costs associated with the physical locks and utility staff time to reinspect meter boxes that have been locked due to the delinquency and the lock is subsequently found damaged or cut, if approved, will establish a $50 fee for locks found to be damaged or cut.
◦ An additional Municipal Code update is being presented to Council this evening, the replacement of “unpaid balance” in 13.20.050 with “unpaid utility charges” would allow for the assessment of penalties on only the utility charges and not the prior months penalty fees if they were to remain unpaid.
Current Monthly Billing Process
Bills Posted
Laptop Reads
Manual Reads
Contact Customers
with High
Bills/Consumption
Assess Penalties
(10% of unpaid
balance)
Turned off
at meter Disconnections
• Verify meters are
still turned off
• If water is on,
meter is
padlocked and
stop and contact
notice left in
meter box
7 Days Post
Disconnections
• Verify if still
padlocked
• If padlock
broken,
meter is
removed.
Following
Month
Disconnection
Bill is 60 days
past due Proposed change:
(10% of unpaid
utility charges)
Proposed change:
Current $30 suspension of service/
$30 service connection = $60 Total
Proposed $35 to restore service
Proposed change:
$50 cut lock/
meter tampering
Establishment of Late Fee Structure
It's important to strike a balance between encouraging on-time payments and maintaining a fair and customer-friendly approach. The penalty fee structure should aim to incentivize prompt payments without overly burdening customers, while still covering the costs associated with late payments. During the pandemic no late penalties or utility shutoffs were performed and the City accumulated over $550,000 in arrearages.
Funds collected through late fees and disconnect/ reconnect fees are the sole source of funding for the City’s current billing assistance program and proposed veteran assistance program. Proposition 218 does not allow rate revenue to be used for these types of rate reduction programs. Late payments and delinquency charges are separate fees exempt from the requirements of Proposition 218.
Council Action
1. Hold a Public Hearing; and
2. First Reading and Introduction of an Ordinance to Adopt Amendments to the Lathrop Municipal Code (LMC) to Update Chapter 13.04 Water Service System, Chapter 13.16 Sewer Service System and Chapter 13.20 Utility Rates and Charges in Title 13, Public Services, including:
o Chapter 13.04 (Water Service System): Add (D) to 13.04.155 to read “A water service customer who presents a current military identification card or veterans identification card shall receive a 10% reduction in their monthly service charge by meter size. The commodity rate shall not be reduced.” o Chapter 13.16 (Sewer Service System): Add (D) to 13.16.255 to read “A sewer service customer who presents a current military identification card or veterans identification card shall receive a 10% reduction in their flat monthly service charge.”
o Chapter 13.20 (Utility Rates and Charges): Revise 13.20.020 (E) to read “A fee [of] Thirty-five and no/100ths ($35.00) dollars shall be charged for restoring water service to the same user when it is discontinued for failure to pay a delinquent account.”
o Chapter 13.20 (Utility Rates and Charges): Add (F) to 13.20.020 to read “In the event it is necessary to lock a water meter because of a delinquency and the lock is subsequently found damaged or cut, a fee of Fifty and no/100ths ($50.00) dollars shall be charged in addition to the fee set forth in subsection (E) of this section.
o Chapter 13.20 (Utility Rates and Charges): Revise 13.20.050 to replace “unpaid balance” with “unpaid utility charges”