AgdaPkt 2008-02-11 Clsd and Reg - Laserfiche WebLink

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REPORT 6.28 Page 1 T o the tfollorable Maypr anct City Council .. ,. . .'.FfQnltneCit . ,.n~er February 11, 2008 SUBJECT Advance Deposits for Opening Utility Accounts and Shutting Off Services on Delinquencies RECOMMENDATION Approve by resolution a policy of collecting a $100.00 deposit to open new utility accounts, sending reminder notices to customers after 30 days of issuance of utility bills, and shutting off utility services if the accounts are delinquent after 47 days. BACKGROUND Staff recommends memorializing the requirement of a $100.00 deposit from customers who want to open new accounts for utility services and the authority to shut off their accounts if they are delinquent. Utility services accounts include water, sewer, and garbage collection. The Revenue Services division of the Finance Department is responsible for overseeing these utility accounts, including deposits, from the inception to the closing of these accounts. The City requires an advance deposit of $100.00 before we start servicing these accounts. Such deposits are returned to the customers upon the closing of these accounts, less any bill remaining unpaid. An account may be closed voluntarily by the customer or involuntarily, if the account is delinquent. The City bills commercial customers monthly and residential customers every other month (60-day cycle) for utility services. Each customer receives a common bill for water, sewer, and garbage service which constitutes utility services. Each billing period represents, as near as possible, one month's service and two month's service, commercial and residential customers respectively, except for new services which may have been connected during the billing period. These utility bills include current utility service charges in addition to any past due amounts from the customer's prior unpaid utility services. If a customer relocates to a new location in Redwood City, the previous account balances, if any, are transferred to the new account. Customers have 30 days to pay their bills without any penalties. If not paid within this time frame, as a courtesy, a 10-day reminder notice is mailed to the customer with a 1.5% interest charge. If the account is still outstanding 10 days after this reminder notice was sent, a second reminder notice is conspicuously posted at the customers premises. This is a 48-hour pre-shut off notice. If the account is still not brought to current status after 42 days, the utility services are discontinued. The attached flow chart illustrates the proposed billing process including the discontinuation of water service if required.