AgdaPkt 2013-05-20 Closed Cancelled and Special

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7.A. - Page 49 Attachment 6 Billing and Collection Procedures The City of Redwood City issues a combined utility bill to each of its customers for water, sewer, and solid waste collection services (the City acts as the billing and collection agent for the private company, Recology San Mateo County, which performs solid waste collection services under a franchise agreement with the City) on a bi-monthly basis for residential customers and monthly basis for commercial customers. The utility bills are due and payable within 30 days of the bill date. If not paid within 30 days, the utility bill is delinquent, a 10 day reminder notice is mailed to the customer and assessed a 1.5% interest charge, and if still unpaid 40 days after the initial bill has been issued, a 7 day notice is mailed indicating that water will be shut off if the bill remains unpaid and another 5% interest charge is assessed. If the utility bill continues to be unpaid after the 5% interest charge, water service will be disconnected until payment is made. Prior to disconnecting water service, the City provides the affected customer with forty eight hour notice of possible disconnection. The reconnection fee ranges from$20 to$100 if paid during business hours and$320 is paid after business hours. Current Water Rates,Fees and Charges Water rates are based on the City's costs for operating and maintaining the Enterprise, and on projected amounts required for the Enterprise capital improvement program. Current Water Rate Structure. There are three components of the water utility bill for all customers,which work independently of each other: • A fixed, monthly basic service charge that provides the financial support for the operations and maintenance of the City's water system, i.e.; salaries, benefits, equipment, supplies and services,which are within the direct control of the City Council. • A variable usage rate has been in existence since the drought of 1989, created for the purpose of promoting conservation. This component provides the financial support for purchase of wholesale water, electrical power from PG&E, capital improvements, conservation rebate programs and related costs. • A water capacity charge (established in 2007). This component was established to provide for capital facilities that improve the City's ability to provide water within the service area. This one time charge is$11.58 per gallon per day of projected net consumption of water on the property to be connected to the Enterprise. -26-