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HomeMy WebLinkAboutReso 81-19 for Utility Billing PoliciesRESOLUTION NO. 81-19 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, RESCINDING RESOLUTION NO. 62-19 AND RE-ESTABLISHING THE CITY OF MORRO BAY'S ACCOUNTING AND FINANCIAL REPORTING POLICIES RELATED TO UTILITY PAYMENT ARRANGEMENT, LEAK REVIEW, APPROVED PAYMENT TYPES, AND CHANGE OF PRIMARY ACCOUNT HOLDER POLICIES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay wishes to establish Financial policies to direct staff and provide transparency to the Council and Community; and WHEREAS, those policies outline the City's utilities payment arrangement program, leak review procedures, approved forms of payment, and change of primary account holder; and WHEREAS, on June 25, 2019, the City Council adopted various policies demonstrating the City's commitment to fiscal responsibility and prudent management and is consistent with Government Accounting Standards; WHEREAS, staff recommends the City Council adopt a revised "Leak Review Policy" requiring a customer provide proof and documentation of repairs prior to consideration of a billing adjustment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that Resolution No. 62-19 is hereby rescinded, and the following policies, attached hereto and incorporated herein, are hereby approved: 1. "Payment Arrangement Policy," as set forth in Exhibit A, 2. "Leak Review Policy," as set forth in Exhibit B, 3. "Payment Type Policy," as set forth in Exhibit C, and 4. "Change of Primary Account Holder Policy," as set forth in Exhibit D. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8h day of October 2019, by the following vote: AYES: NOES: ABSENT ATTEST: one Headding, Addis, None N Gtwti�,1��,�G4ar• /� DANW SWANSON, City Clerk Davis, Heller, McPherson COUNCIL POLICY Payment Arrangement Policy for Utilities Policy Statement Resolution No. 81-19 Exhibit A 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 Payment Arrangement Policy is designed to resolve an outstanding balance on a Customer's account in a timely manner under qualifying circumstances. Purpose The Payment Arrangement Policy for Utilities establishes a mechanism and authority for aiding with an outstanding balance that the Customer is not able to pay with one payment. A payment arrangement may be used once during a twelve-month period. Definitions Outstanding Balance —any balance on a utility account that has not been paid by the due date. Penalty —ten percent (1004) of the unpaid, past -due balance on a utility account, assessed the first day of the month following due date. an Notice —fee charged for the physical posting of shut-off notices at the customer's location. Shut off due to non-payment —physical turning off the water and locking of the meter by a Technician due to non-payment. Payment Arrangement The City bills utility customers monthly for water and sewer services. For any account with an outstanding balance after 60 days is subject to shut off. • Policy Agreement form (attached) must be requested and signed by the Primary Customer. Once it is received by City Hall it will go in effect. • The Customer will be required to pay the monthly payment amount in addition to the current monthly charges. • The number of months of payments are three months, six months and a maximum of nine months. A Payment Arrangement can only be nine months if the outstanding balance is $1000 or over (usually from a leak review or excessive use of water). • When the signed Policy Agreement form is received, the account will not be penalized or subject to shut off for outstanding balance if payments are received by the due date. Page 1 Resolution No. 81-19 Exhibit A • If payments are not received by the due date, a 10% penalty of the overdue balance will be assessed. • If a monthly payment is 30 days late, the City shall discontinue the Payment Arrangement at its discretion. • If a Customer has had a Payment Arrangement discontinued, they will not be eligible for another payment arrangement for a 24-month period. 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. Page 2 COUNCIL POLICY Leak Review Policy for Utilities Policy Statement Resolution No. 81-19 Exhibit B 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. Section 2.12.160 of the Municipal Code states that it shall be the duty of the City Manager to', "investigate all complaints in relation to matters concerning the administration of the city government and in regard to the service maintained by public utilities in the city, ..." This Leak Review Policy for Utilities ("Policy") provides the City Manager to administer the City's policy in an efficient manner and to take such actions as are necessary to carry out the affairs of the city. Purpose The purpose of the Leak Review Policy is to resolve utility customer concerns regarding utility leaks in a fair and timely manner. Definitions Leak — A loss of water due to break, malfunction, damage or wear and tear. Penalty —ten percent (10%) of the unpaid, past -due balance on a utility account, assessed the first day of the month following due date. Posting of Notices —fee charged for the physical posting of shut-off notices at the customer's location. Discontinuation of Service —shut and lock off of water due to nonpayment of past due balance. Leak Review Assessment and Implication • The Leak review policy will only act when written requests is received from the primary utility customers with regard to water and/or sewer billing matters. • Once a written receipt is received from the primary customer, and consumption has returned down to normal for at least two reads, the account will be reviewed as soon as practical to address the customer's concern. • The customer will need to provide proof of repairs. (i.e, invoice from a company used to repair the leak or receipts of materials if the leak was repaired by the customer) • The leak review process will need to be completed within nine months. • A customer is limited to 2 reviews in a 5-year period that may be presented to the City on a single address. Page 1 Resolution No. 81-19 Exhibit B o Example: V leak reviewed 2014, customer then has until 2018 to submit 1 more leak letter for review. In 2019 the five-year time frame starts over again. • The City shall have the authority to make a billing adjustment, in the interest of fairness presented by the customer and the City's utility clerk. • If an adjustment is made, the following formula is used: o An annual average usage is determined for the customer. o Any consumption above the annual average for the account in tier 4 is adjusted off. o Any consumption above the annual average for the account in tier 3 is adjusted by half. o If the leak is determined to be a documented outside leak of a commercial account, the sewer is also adjusted based on the same annual average usage. • Decisions of the City shall constitute the final administrative review of the matter. • When a customer requests that his/her billing concern be addressed by the City, no further collection actions (i.e. penalties, posting of notices, discontinuation of service, etc.) shall be taken until the concern is reviewed, and a decision is rendered. The customer will be required to pay that portion of the bill that reasonably would be due and payable, aside from the contested portion. 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. Page 2 l� °k.._'WATS po COUNCIL POLICY Paymeht Type Policy for Utilities Policy Statement Resolution No. 81-19 Exhibit C 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 accepts payment for utility bills in the form of check, cash, credit/debit card, electronic payment or direct payment. Purpose The Payment Type Policy for Utilities establishes what payment types are accepted, and how the payment is considered on time. Utility bill payments are due on the last day of the month for current charges. Definitions Check —this includes money order, or cashier's check. Payments in check form can be mailed to City Hall, dropped off in the office or in the drop box outside of City Hall. The payment is entered and accounted for on the day it's received. The City will not accept a postdated check due to it not being legal tender. The check will be returned to sender if the check is: postdated, not endorsed to the City of Morro Bay, unsigned or incorrect legal description along with a letter from the City. Cash —the City does accept USD cash as a form of payment. This form of payment is made at City Hall at the front desk. We do not recommend mailing cash or depositing the cash payment into the drop box but will accept it. Credit/Debit Card —the City accepts card payments through our website and in City Hall. There is a 3% convenience fee for all card payments. Card payments through the website are entered the following business day from when the payment was made. Bank Draft/Direct Payment — is established when the Bank Draft form and a voided check or printout from the bank is provided. The bill will be paid on the 21St of every month, or next following business day if the 21 s' falls on a Holiday or weekend. Electronic Payment — a Customer's bank deposits payments electronically. These payments are posted as they are received by the City. Payment Types Utility customers who do not have their payment turned in by the last day of the month are subject to a 10% penalty on their remaining balance on the account. If the first day of the month falls on a weekend or holiday, payments received before City Hall opens on the following business day are considered on time. For example: if the 1st falls on a Saturday; and a payment is made before City Hall opens at 8 am on the following Monday, the payment is considered on time. Resolution No. 81-19 Exhibit C 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. Page 2 `yR)RATM JUL, 1� •�% Primary Account Holder Change Procedural Policy Policy Statement Resolution No. 81-19 Exhibit D 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 Primary Account Holder Change Procedural Policy ("policy") is designed to set forth procedures to best serve citizen and staff. Purpose The Policy is to provide the most efficient customer service to Citizens by setting procedures for the changing of primary account holder in the case of death, or no longer able to make executive decisions. Primary Account Holder Change Procedure A primary account holder change shall be requested by the next of kin or executor of Power of Attorney ("POA"). The requesting person must provide the following: • Verification of identity by either email or in person (acceptable formats provided below): • Legal photo ID • A copy of death certificate shown to Utility Clerk stating next of kin or a copy of POA stating executor Once the documentation is shown, a "Primary Account Holder Change" form (attached) will need to be completed and submitted. The application fee will be waived. 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. Page 1