Agenda Item No. 8C November 18, 2014 TO: Honorable Mayor and City Council
Attention: Laura Kuhn, City Manager
FROM: Jeremy Craig, Interim Assistant City Manager/Director of Finance and IT SUBJECT: ORDINANCE AMENDING SECTIONS 13.08.190.A, 13.08.200, 13.12.060.A,
AND 13.12.120 OF THE VACAVILLE MUNICIPAL CODE RELATING TO SEWER AND WATER SERVICE BILLINGS
BACKGROUND:
On a periodic basis, the ordinances governing billing and collection of Sewer and Water fees are reviewed for best practices and efficiency. A recent review highlighted a few issues which need to be addressed to ensure efficient and effective collection of fees.
The first requested change is to add language to the ordinance which indicates what constitutes an actual billing. This is to clarify a bill produced and placed into the U.S. Mail or emailed electronically to a customer-provided address is considered properly billed and not receiving said bill does not relieve the customer from their liability to pay.
The second requested change is to define a deposit program for individuals unable to establish an adequate credit history. In nearly all cases, adequate history exists and no deposit is required, however, the Finance Department has continued to see increases in new accounts opened without adequate credit history and the account defaulting. For example, the City lost approximately $176,000 in unpaid accounts in FY 2013-14. The new process would allow the Finance Director to establish guidelines for an adequate deposit to protect the City from an account being opened for service with no intent to pay. After a year of timely payment, the deposit would be credited back to the account.
Finally, a change is requested to remove language in the ordinance that defines a specific range of days the bill will contain. Due to the way dates fall in a given year, the bills currently fall outside of the period once or twice per year on one cycle. The cost to pay for special programming of the utility billing software to accommodate the date specificity exceeds the value of the requirement. The new language removes the definitive number of days to prevent the City from being accused of violating its own policy.
It is important to note provisions for billing and collection of water and sewer fees is located in different areas of the City ordinances, so the ordinance titles refer to multiple areas of the ordinance, but relate only to the three changes discussed.
FISCAL IMPACT:
Implementation of these changes will prevent expenses for software programming and will reduce the amount of unpaid accounts, which were approximately $176,000 in FY 2013-14.
RECOMMENDATION:
By simple motion and by title only, introduce the subject ordinance. ATTACHMENTS:
ORDINANCE NO.
ORDINANCE AMENDING SECTIONS 13.08.190.A, 13.08.200, 13.12.060.A, AND 13.12.120 OF THE VACAVILLE MUNICIPAL CODE RELATING TO THE BILLING AND COLLECTION
OF SEWER AND WATER SERVICE FEES
WHEREAS, the City of Vacaville provides water and sewer services to properties located within or about the city as permitted under Section 9 of Article XI of the California Constitution; and
WHEREAS, in order to provide such services, the City is empowered to establish and
collect fees for such services; and
WHEREAS, in order to ensure the effective collection of such fees, the City has enacted
provisions for the payment and collection of such fees as set forth in Chapters 13.08 and 13.12 of the Vacaville Municipal Code; and
WHEREAS, in order to increase the effectiveness of the collection of such fees, the City
Council hereby amends Chapters 13.08 and 13.12 as set forth below.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VACAVILLE DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 13.08.190.A Amended. Section 13.08.190.A of the Vacaville Municipal Code is amended to read in full as follows:
A. All sewer charges shall be due at the commercial office upon presentation of the bill and shall become delinquent fifteen (15) days after presentation. All charges may be combined with charges for water service on bills or statements rendered by the commercial office for premises connected to the city water system. The bills shall state their purpose (sewer service), shall give the name and last known address of the person responsible for payment (as provided in this chapter), and shall list separately the charges for each service and the total charge for all services. No charge may be paid separately from the others. If the premises with sewer service are not connected with the water system, a separate bill shall be rendered for sewer service. All bills shall be for monthly or bimonthly periods or for such other period as shall be determined by resolution of the City Council; provided, however, that the Director of Public Works shall have the power to require any user to pay bills monthly if, in the Director of Public Works’ opinion, monthly payments shall be required for the protection of the City. Failure to receive a bill does not relieve a customer of the liability for payment.
SECTION 2. Section 13.08.200 Amended. Section 13.08.200 of the Vacaville Municipal Code is amended to read in full as follows:
13.08.200 Service deposit.
A. Deposits shall be required when a customer is unable to establish a satisfactory credit history as set forth in Section 13.08.200 E of this code.
1. The minimum required deposit amount shall be set by the Finance Director or his or her designee in accordance with rules established by the Finance Director.
2. The Finance Director or his or her designee may reduce the deposit amount if, at the time of application, the applicant agrees to participate in the City’s automatic electronic payment program. If the applicant subsequently terminates participation in the program or if the applicant’s payment to the City is rejected or not otherwise honored by the applicant’s financial institution, the applicant shall, within fifteen (15) days of receipt of notice from the City, increase the deposit by the amount of the reduction previously allowed.
C. Payment of Deposit
Deposits are due upon application for service and delinquent fourteen (14) days thereafter. If not received within that time period, service will be disconnected without further notice.
D. Refund or Credit of Deposit
1. Upon discontinuance of service, the City shall refund all deposits to the customer without interest, less any charges then unpaid, provided the refund is more than ten dollars or, if less than ten dollars, the customer requests a refund; and, conversely, if there is a balance due the City of less than ten dollars, the City shall not bill for the unpaid balance.
2. After a customer has maintained a good payment record for twelve (12) consecutive months, the City shall apply the deposit without interest to the customer’s then-current bill.
E. Establishment of Credit
No deposit shall be required for customers having a satisfactory credit history, which shall include all of the following:
1. Having been a customer of record for city-provided water or sewer service for one (1) year or more within the past two (2) years without a history of delinquent payments in such customer’s name,
2. Having no history of service disconnection for nonpayment of a bill or deposit within the past twelve months (12), and
3. Having no history of a returned check or failed electronic fund transfer to the City within the past twelve (12) months.
SECTION 3. Section 13.12.060.A Amended. Section 13.12.060.A of the Vacaville Municipal Code is amended to read in full as follows:
A. Bills for services by city will be presented by city for payment at regular intervals and all of said bills will be due and payable upon presentation of said bill to the customer.
Bills shall be considered presented when: (i) Delivered personally to the customer; (ii) Deposited in the United States mail, postage prepaid and addressed to the customer at the address provided by the customer during the application process for water service; or (iii) Delivered electronically to the customer to the electronic mailing address provided by the customer. Failure to receive a bill does not relieve a customer of the liability for payment. SECTION 4. Section 13.12.120 Amended. Section 13.12.120 of the Vacaville Municipal Code is amended to read in full as follows:
A.
Deposits shall be required when a customer is unable to establish a satisfactory credit history as set forth in section 13.12.120.E of this code.B. Amount of Deposit to Establish Service
1. The minimum required deposit amount shall be set by the Finance Director or his or her designee in accordance with rules established by the Finance Director.
2. The Finance Director or his or her designee may reduce the deposit amount if, at the time of application, the applicant agrees to participate in the City’s automatic electronic payment program. If the applicant subsequently terminates participation in the program or if the applicant’s payment to the City is rejected or not otherwise honored by the applicant’s financial institution, the applicant shall, within fifteen (15) days of receipt of notice from the City, increase the deposit by the amount of the reduction previously allowed.
C. Payment of Deposit
Deposits are due upon application for service and are delinquent fourteen (14) days thereafter. If not received within that time period, service will be disconnected without further notice.
D. Refund or Credit of Deposit
1.
Upon discontinuance of service, the City shall refund all deposits to the customer without interest, less any charges then unpaid; provided the refund is more than ten dollars ($10) or, if less than ten dollars, the customer requests a refund; and, conversely, if there is a balance due the City of less than ten dollars, the City shall not bill for the unpaid balance.2.
After a customer has maintained a good payment record for twelve (12) consecutive months, the City shall apply the customer’s deposit without interest to the customer’s then-current bill.E. Establishment of Credit
No deposit shall be required for customers having a satisfactory credit history, which shall include all of the following:
1. Having been a customer of record for city-provided water or sewer service for one (1) year or more within the past two (2) years without a history of delinquent payments in such customer’s name,
2. Having no history of service disconnection for nonpayment of a bill or deposit within the past twelve (12) months, and
3. Having no history of a returned check or failed electronic fund transfer to the City within the past twelve (12) months.
SECTION 5. Severability. If any section, subsection, phrase, or clause of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance.
The City Council hereby declares that it would have passed this ordinance and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared unconstitutional.
SECTION 6. Effective Date. This ordinance shall take effect thirty (30) days after passage thereof.
SECTION 7. Publication. This ordinance shall be published in accordance with the provisions of Government Code Section 36933.
I HEREBY CERTIFY that this ordinance was INTRODUCED at a special meeting of the City Council of the City of Vacaville, held on the 18th day of November, 2014, and ADOPTED and PASSED at a regular meeting of the City Council of the City of Vacaville, held on the _____ day of __________, 2014, by the following vote:
AYES: NOES: ABSENT:
ATTEST: APPROVED:
______________________________ ______________________________ Michelle Thornbrugh, City Clerk Steve Hardy, Mayor
