I. RECOMMENDATION:
It is recommended that the City Council adopt Resolution No.3947 to establish a Municipal Utility Billing & Collection Policy, incorporating current practices and revisions necessary to be compliant with requirements set forth in Senate Bill (SB) 998 that are effective February 1, 2020. Adoption of Resolution No. 3947 will also allow staff to make non-substantive revisions to the policy during the implementation period.
II. BACKGROUND:
The City is required to comply with SB 998 by February 1, 2020. With multiple changes required to policies, ordinances, billing and operation practices. The changes required to bring the City into compliance are as follows:
- Provide a written policy for discontinuation of residential service printed in English, Spanish, Tagalog, Vietnamese, Korean and any other language spoken by 10% or more of the people residing within the service area.
- Make significant changes to the utility billing practices
- Create new Deferred Payment Plan Agreement for Delinquent Balances
- Provide alternative payment schedules when a financial hardship exists as set forth in SB 998
- Provide formal mechanism for customers to contest or appeal bills
- Provide customer notification by phone or in writing at least 7 business days before shut-off
- Annually report the number of utility shut-offs on the City's website
- Policy changes will be posted on the City's website in the following languages: English, Spanish, Tagalog, Vietnamese, Korean and any other language spoken by 10% or more of the people residing within the service area
III. DISCUSSION:
IV. ALTERNATIVES:
V. FISCAL IMPACT:
The eventual fiscal impact of implementation of SB 998 is unknown at this time. Staff anticipates an increase in requests for repayment arrangements, which will inevitably impact cash flow to the utility enterprise funds. Staff further anticipates situations of non-payment will potentially increase if a customer defaults on their alternative payment arrangement, which will add to the amount of uncollectible revenue that the City is forced to write off each year. | | |