HomeMy WebLinkAboutReso 05-20 discontinuation of water service SB 98RESOLUTION NO. 05-20
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
ADOPTING A DISCONTINUATION OF RESIDENTIAL WATER SERVICE FOR NON-PAYMENT
POLICY PURSUANT TO SENATE BILL 998
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, The City of Morro Bay provides water services to over 5,000 customers; and
WHEREAS, the City of Morro Bay discontinues water service when payment is not made; and
WHEREAS, the State of California has passed Senate Bill 998 outlining procedures that must
be taken before a utility provide may discontinue residential water service for non-payment; and
WHEREAS, The City of Morro Bay is required to adopt a written policy that is compliant with the
requirements of Senate Bill 998.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,
that the "Discontinuation of Residential Water Service for Non -Payment" policy that is pursuant to
Senate Bill 998 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 regular meeting
thereof held on this 28th day of January 2020, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
Headding, Addis, Davis, Heller,
None
None
DA SWANSON, City Clerk
McPherson
Resolution No. 05-20
t~
Exhibit A
COUNCIL POLICY
Discontinuation of Residential Water Service for Non -Payment (Senate Bill 998)
Policy Statement
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. As an urban water supplier
the City is governed by Senate Bill No. 998, codified in Health and Safety Code section 116900 et
seq., and Public Utilities Code section 10009-10011, which establish specific requirements for the
discontinuation of residential water service for non-payment.
Purpose
This Discontinuation of Residential Water Service for Non -Payment policy is designed to comply
with the requirements of Senate Bill 998 by enumerating the City's administrative procedures for
discontinuation of water service for non-payment, including notifications, alternative payment
arrangements, and reduced fee charges.
City Contact Information
The City can be contacted by phone at 805-772-6222 to discuss options for averting
discontinuation of water service for non-payment under the terms of this policy.
Policy and Notices Available in Multiple Languages and On City Website
This policy and all notices issued to customers under this policy shall be provided in English,
Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by at least 10
percent of Morro Bay residents.
This policy shall also be made available on the City's website.
Definitions
Delinquency Date —.The 31St day after the water bill is issued to the customer, as determined by
the issuance date stated on the bill.
Financially Unable to Pay — A customer is financially unable to pay if any member of the
customer's household (i.e. someone that demonstrates that they reside at the account's address)
is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental
Security Income/State Supplemental Payment Program, or California Social Supplemental Nutrition
Program for Women, Infants, and Children, or the customer declares the household's income is
less than 200% of the federal poverty level.
Water Shutoff Date The 61s' day after the Delinquency Date. However, if the Water Shutoff Date
falls on a weekend, legal holiday, or any other day on which the City's offices are closed, the Water
Shutoff Date will be postponed until the next regular business day.
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Resolution No. 05-20
Exhibit A
Policy
Water bills are issued at the beginning of the month for usage during the previous month and
become delinquent if not paid within 30 days after the date the bill is issued. If a water bill is
delinquent for 60 days the City will discontinue the water service, subject to the requirements
below. Water service will be subject to shutoff on the Water Shutoff Date or as soon thereafter as
City staff are able to shut off the water service. The following rules and procedures apply to
delinquent bills and termination of water service:
1. Delinquency Notice: Approximately 2 weeks after the Delinquency Date, the City will mail a
delinquency notice to the customer notifying the customer that their account is past due and
late penalties will be applied to their account.
2. Discontinuation Notice: At least 15 days prior to the Water Shutoff Date, the City will give
the customer a second notice of delinquency and impending discontinuation of services by
mailing notice to the customer's address. If the customer's address is not the address of the
property to which residential service is provided, the notice will also be sent to the address
of the property to which residential service is provided, addressed to "Occupant." If the
mailed notice is returned to the City as undeliverable, the City will post the notice at the
residence where service is provided. The Discontinuation Notice will include the following:
a. Customer's name and address.
b. Amount that is past due.
c. Date by which payment or payment arrangements are required to avoid
discontinuation of service.
d. Description of the process to apply for an Alternative Payment Arrangement as
described in section 7 below.
e. Description of the process to dispute or appeal a bill a described in section 11.
below.
f. The procedure for the customer to obtain information on the availability of financial
assistanceI including private, local, state, or federal sources, if applicable.
g. City's phone number and a web link to the City's Discontinuation of Residential
Water Service for Non -Payment policy.
3. 48-Hour Notice: The City will give the customer a final notice of termination at least 48
hours prior to the Water Shutoff Date, containing the same information in the
Discontinuation Notice. This notice will be provided by posting a Discontinuation Notice at
the residence receiving service. The City will also make a reasonable attempt to contact an
adult residing at the customer's residence by phone at least 24 hours prior to the Water
Shutoff Date.
4. Third -Party Notification Service: Customers who are 65 years of age or older, or who are
dependent adults as defined in Welfare and Institutions Code section 15610.23, may
designate a third party to receive notice of delinquency and pending termination on behalf
of the customer by filing a Third -Party Notice form with the City, which shall be signed by
both the customer and the third party. The designation will be for purposes of notification
only and will not obligate the third party to pay delinquent charges. Third -Party Notice
forms are available on the City's website at morrobayca.gov and a customer may obtain
more information by calling 805-772-6222.
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Resolution No. 05-20
Exhibit A
5. Waiver of Late Penalties and Tag Fees: Pursuant to Resolution 63-18 and Council Policy
entitled Penalty Waiver Policy for Utilities, a customer is entitled one waiver of a late penalty
or tag fee one time in a 24-month period, at the request of the customer. All tag notice fees
will be waived for customers who can demonstrate that they are financially unable to pay.
6. Prohibition of Water Service Shutoff: The City of Morro Bay will not discontinue residential
service if all of the following conditions are met:
a. The customer, or a tenant of the customer, submits to the City the certification of a
primary care provider stating that the discontinuation of residential service will be life
threatening or pose a serious threat to the health and safety of a resident of the
premises where the service is provided;
b. The customer demonstrates he or she is financially unable to pay for residential
service within the normal billing cycle.
c. The Customer is willing to enter into an alternative payment arrangement.
7. Alternative Payment Arrangements: Any customer who is unable to pay for water service
within the normal payment period may request an alternative payment arrangement to
avoid late fees or disruption of service. The City will not discontinue water service for non-
payment if a customer has requested and entered into an alternative payment arrangement
and remains current on payment plan. The City offers the following alternative payment
arrangement options:
a. Promise to Pay —Pursuant to Resolution 65-19 and Council Policy entitled Utility Bill
Payment Extension Policy a customer with an outstanding balance after 60 days
may request a payment extension to avoid a penalty, tag notice or shut off. The
payment extension can be for no more than 5 business days and an account can be
approved for up to two payment extensions in a 12-month period. A payment
extension will be approved as long as it is requested by the primary account holder,
is not a third request within a 12-month period and a previous payment extension
commitment has not been broken in the past 24-months. If the payment extension
due date commitment is not met, the account will not be eligible for another payment
extension for a 24-month period.
b. Payment Arrangement Plan —Pursuant to Resolution 81-19 and Council Policy
entitled Payment Arrangement Policy for Utilities a customer with an outstanding
balance after 60 days may request a payment arrangement plan. The customer is
required to make monthly, reduced payments under the plan which can extend the
payment period from three to nine months ,depending on the outstanding balance
due. When a payment arrangement is agreed upon, the account will not be
penalized or subject to shut off for outstanding balances as long as payments are
received by the due date. A customer may enter into a payment arrangement once
during a twelve-month period. If payment is not received by the due date a 10%
penalty will be assessed. If payment is 30 days late, the city has discretion to
discontinue the payment arrangement plan. If a customer has a payment
arrangement discontinued, they are not eligible for another payment arrangement
for 24-month period.
8. Disconnection for Failure to Comply with Payment Arrangement: If a customer who has
entered into an alternative payment arrangement (a) is delinquent on the payment
arrangement for 60 days, or (b) is delinquent on the current water bill for 60 days after the
Delinquency Date, the City may disconnect the water service without offering any further
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Resolution No. 05-20
Exhibit A
alternative payment arrangements, after posting a final notice of intent to disconnect service
on the property receiving service at least 5 business days prior to disconnection.
9. Service Fee Reduction: Pursuant to Resolution 64-19 adopting Council policy entitled
Utility Discount Program Enrollment, customers who demonstrate that they are eligible for
the PG&E Customer Care program will qualify for a discounted utility rates of up to 10% of
the utility bill per month.
10. Re-establishment of Service: When the City of Morro Bay has determined that the time
periods have been meet and an account is subject to or has had discontinuation of
residential service, the customer may reestablish the account by contacting City Hall at
805-772-6222. For reestablishing accounts under these conditions, a water customer will
be charged a fee as outlined in the City's Master Fee Study. For customers who can
demonstrate that they are financially unable to pay, the fee is capped at $50 during normal
operation hours and $150 during non -operation hours, but not to exceed the actual cost of
the reconnection fee. The City does not charge interest on delinquent accounts, only a late
penalty is assessed. A late penalty may be waived once in a 24-month period as described
in section 5.
11. Disputed Bills: If a customer disputes a bill, they must follow the outlined procedure below:
a. Appeals must be submitted, in writing, and must be filed no later than fifteen (15)
days after the delinquency notice has been issued (date on the issuance
notification). The Appeal must be submitted to the Finance Director and will be
reviewed by the Finance Director and City Manager for determination. If a customer
disputes the water bill and exercises their right to appeal to the Finance Director, the
City Water Department will not disconnect water service for non-payment while the
appeal is pending. The City will respond to the appeal, in writing, within 30 days of
receipt.
12. Special Rules for Service Recipients Who Are Not Customers:
a. Notice. If the City furnishes individually metered service or master -metered service
to residential occupants of a detached single-family dwelling, a multiunit residential
structure, mobilehome park, or permanent residential structure in a labor camp, and
the owner, manager, or operator of the dwelling, structure, or park is the customer of
record, the City will make a good faith effort to provide a written notice of
delinquency and pending termination to each occupant by posting a notice on the
door of each residential unit at least 15 prior to termination of services.
b. Contents of Notice. The notice will include the following information:
The written notice ,will inform the residential occupants that they have the
right to become customers, to whom the service will then be billed, without
being required to pay any amount which may be due on the delinquent
account.
Requirements for preventing termination of service and for reestablishing
service.
The title, address, and telephone number of a City representative who can
assist the residential occupants in continuing service.
Resolution No. 05-20
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iv. The address and telephone number of a qualified legal services project, as
defined in Section 6213 of the Business and Professions Code, which has
been recommended by the local county bar association.
c. The City is not required to make service available to the residential occupants
unless each residential occupant agrees to the terms and conditions of service and
meets the requirements of law. However, if one or more of the residential occupants
are willing and able to assume responsibility for the subsequent charges to the
account to the satisfaction of the City, or if there is a physical means legally
available to the City of selectively terminating service to those residential occupants
who have not met the requirements of the City's rules and tariffs, the City shall make
service available to those residential occupants who have met those requirements.
d. If prior service for a period of time is a condition for establishing credit with the City,
residence and proof of prompt payment of rent or other credit obligation acceptable
to the City for that period of time is a satisfactory equivalent.
e. Any residential occupant who becomes a customer of the City pursuant to this
section 12 whose periodic payments, such as rental payments, include charges for
residential water service, where those charges are not separately stated, may
deduct from the periodic payment each payment period all reasonable charges paid
to the City for those services during the preceding payment period.
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