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6.A. - Page 15 of 27 CITY COUNCIL POLICY NO. Redwood EFFECTIVE: , 2020 CityI California J F-dW1867 SUBJECT: Utility Delinquent Accounts Collection & Service Discontinuation Policy PURPOSE/BACKGROUND This policy enumerates the City of Redwood City's ("City') process for the collection of delinquent utility accounts, including notifications. This policy also sets forth the process for the discontinuation of water service. This policy is available to the public on the City's website. DELINQUENT ACCOUNT Delinquent accounts are defined as any account that remains unpaid after 30 calendar days of issuance of the utility bill by the City. The following rules apply to the collection of delinquent accounts: 1. Notifications: The City will make a reasonable, good faith effort to notify a customer that their account is due by mailing them notifications. The means of notification will be based on the notification preference (mail or email) selected by the customer. Customers who have not selected a means of notification will be notified by mail. The City assumes no responsibility for contact information that has not been kept up-to-date by the customer. a. Utility Bill —The full amount on the utility bill must be paid within 30 calendar days of the issuance of the utility bill to avoid delinquent status. The due date will be displayed prominently on the bill. b. First Delinquency Notice — The City will make a reasonable, good faith effort to notify a customer that their account is past due by mailing a first delinquency notice approximately 30 calendar days after the issuance of the utility bill. If payment for a utility bill is not received within 30 calendar days of the bill issuance, an interest charge will be assessed. The due date and interest charge will be displayed prominently on the bill. c. Second Delinquency Notice/Written Disconnection Notice — The City will make a reasonable, good faith effort to notify a customer that their account remains past due and further collection action will be forthcoming by mailing them a second delinquency notice approximately 40 days after the bill issuance. If payment for a utility bill and any assessed interest charge is not received within 40 days of the bill issuance, a penalty charge will be assessed. The due date and penalty charge will be displayed prominently on the bill. ATTY/DOCS-POLICIES/RWC UTILITY DELI NQUENTACCOUNTS COLLECTION & SERVICE DISCONTINUATION POLICY REV: 01-14-20 EI Page 1 of 5 19