HomeMy WebLinkAboutReso 63-18 Penalty Waiver for UtilitiesRESOLUTION NO. 63-18
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
ADOPTING A PENALTY WAIVER POLICY FOR UTILITIES
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, The City of Morro Bay charges a ten (10) percent penalty on late utility payments;
and
WHEREAS, the City of Morro Bay charges a "tag notice fee" for the delivery ofturn-off notices to
a customer's address; and
WHEREAS, staff recommends the City Council adopt the proposed Penalty Waiver Policy for
Utilities to formalize a policy for consistent administrative application by staff.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,
that the "Penalty Waiver Policy for Utilities" as documented in Exhibit A, attached hereto and
incorporated herein, is hereby approved.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a special meeting
thereof held on the 14th day of August 2018, by the following vote:
AYES: Irons, Davis, Headding, Makowetski, McPherson
NOES: None
ABSENT: None
ATTEST:
NA SV�ANSON, City Clerk
The City of Morro Bay (City) Public Works Department, Water and Sewer Divisions, are responsible for
the collection and treatment of wastewater for over 5,000 customers within City limits and delivery of
potable water to a similar number of customers.
The City Council sets legislative financial management policies, as recommended by staff and advisory
committees. This Penalty Waiver Policy for Utilities ("Policy") is designed to establish guidelines to allow
for utility customer penalty waivers under qualifying circumstances.
The Penalty Waiver Policy for Utilities establishes a mechanism and authority for providing billing
adjustments to forgive penalties and/or tag notice fees. An adjustment of the full amount of the penalty
or tag notice fee may be made one time during a twenty -four -month period.
Definitions
Penalty —ten percent (10%) of the unpaid, past -due balance on a utility account, assessed the first day
of the month following due date.
Tag Notice —fee charged for the physical posting of shut-off notices at the customer's location.
Waiver —forgiveness of the penalty or tag notice amount.
Waiver of Penalty
The City bills utility customers monthly for water and sewer services. For any account with an unpaid
balanceI a ten percent (10%) penalty on the unpaid balance is assessed starting the first day of the first
month following the due date. In addition, the City notices applicants that are delinquent that utilities will
be shut off via a "tag notice." Customers are assessed a fee for "tag notices" to recover the cost of staff
physically posting the shut-off notice at the customers location. The tag notice fee is identified in the
City's Master Fee Schedule which is updated and adopted annually.
One penalty or tag notice fee waiver may be offered to customers during atwenty-four-month period.
City staff, including Account Clerk staff working with customers to bring accounts current, may offer the
penalty forgiveness without further approval. Either the utility customer or associated customer may
request penalty forgiveness. Such approval will be documented in the customer's account notes with
the following information:
® Date of conversation with customer and customers name requesting waiver
® Notes regarding customer's request or circumstances
® Penalty waiver offered (either 1 st or Zed waiver)
® Date of waiver and amount
® Employee approving the waiver
This policy applies to all customers of the City of Morro Bay who have a utility billing account with the
City. The Finance Department is responsible for the administration and enforcement of this policy.