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Home My WebLink AboutCC Reso 2025-41 - Amending Reso 2010-44 Establishing Utility Payments Fees and RulesRESOLUTION NO.2025-0 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING RESOLUTION NO. 2010-44 ESTABLISHING UTILITY PAYMENT DUE DATES, DELINQUENCY DATES, DEPOSITS, FEES, RULES GOVERNING UTILITY DEPOSITS, AND ENSURING CALIFORNIA SB 998 COMPLIANCE WHEREAS: i. Ukiah City Code §§ 3901 and 3903 authorizes the City Council to establish utility payment due dates, fees and deposits, and regulations governing utility deposits; and 2. The City Council has determined that certain deposits and rules are necessary and reasonable to ensure that customers of utility services furnished by the City of Ukiah pay for the services provided so that each City resident who benefits from City furnished utilities pays his or her fair share of the cost of providing those services; and 3. The City Council intends to ensure compliance with California Senate Bill 998 (Water Shutoff Protection Act), codified at Health and Safety Code §§ 116900-116926, which governs residential water service discontinuation due to nonpayment. 4. In order to ensure compliance with the Water Shutoff Protection Act, the City Council intends to adopt the Shut Off Policy that sets forth utility service billing, payment due dates and related notice procedures and is incorporated in this Resolution as Exhibit A hereto. NOW, THEREFORE, BE IT RESOLVED that: Section 1. Utility Deposits. Utility service deposit requirements are based on collection risk information provided by a Credit Reporting Agency. Prior to connecting utility services to any property, the applicant for service must complete an application for service and deposit funds with the City's Finance Department in the amount specified unless a deposit is excused. a. Property Owner Exception: Deposits may be waived for any applicant who is the owner of record of the property to be served unless any service has been previously disconnected for nonpayment. b. Residential Water Service Deposit Requirement: (1) New service applicants who pose no credit risk may have deposit requirements waived. (2) New service applicants who pose minimal risk: The greater of the estimated average monthly bill, averaged over a 12-month period, or a minimum of $50.00 deposit. (3) New service applicants who pose substantial credit risk: The greater of twice the average monthly consolidated bill for water averaged over a 12-month period, or a minimum of $100.00. C. Commercial Water Service. The greater of twice the estimated average monthly Page 1 of 4 bill of a similar business, averaged over a 12-month period, or a minimum of $100.00, d. To restore disconnected service: Residential and commercial customers utility service that has been disconnected due to non-payment will be required to provide or increase the current deposit to equal the greater of twice the average monthly consolidated bill for service averaged over a 12-month period or a minimum of $150. e. Domestic Electric Service Deposit Requirement: (1) New service applicants who pose no credit risk may have deposit requirement waived. (2) New service applicants who pose minimal risk. The greater of the estimated average monthly bill, averaged over a 12-month period, or a minimum of $75,00. (3) New service applicants who pose substantial credit risk. The greater of twice the average monthly consolidated bill for electric averaged over a 12-month period, or a minimum of $150.00. Commercial service. The greater of twice the estimated average monthly bill (4} of a similar business, averaged over a 12-month period, or a minimum of $150, 00. Section 2. Rules Governing Utility Deposits. a. Deposits required. Prior to connecting any property to the municipal water or electric systems or to furnishing any property with water or electricity service, the applicant shall deposit funds with the Finance Department in the amount specified in these regulations, unless a deposit is excused. (1) Property owner exception. Deposits may be waived for any applicant for utility service who is the owner of record of the property to be served, unless service to the applicant has been previously disconnected for nonpayment of utility bills or within the 12-month period preceding the application the applicant has been issued a Final Notice of Possible Disconnection. (2) Satisfactory credit exception. Deposits may be waived for an applicant for utility service who has received utility service for a period of one year without having service disconnected for nonpayment or having received no more than one Final Notices of Possible Disconnection. b. Return of Utility Deposits. (1) Return of deposit. The customer's utility deposit will be returned after one year of service, if the customer has never had service disconnected for nonpayment of a bill for utility service and within the year has not received more than two Final Notices of Possible Disconnection. (2) Required deposit after disconnection. If, after the return of a deposit, service is disconnected because a customer has failed to pay a utility bill when due, service shall not be restored until the customer pays a new deposit equal to the greater of twice the average monthly consolidated bill for all City furnished utilities, averaged over a 12-month period, or a minimum of $150.00. C. Use of deposits. (1) Use upon termination of service. When utility service to a customer is Page 2 of 4 discontinued for any reason, the deposit shall reduce or eliminate any balance owing for utility service. If the deposit exceeds the balance owing, any remaining amount shall be refunded to the person who furnished the deposit. (2) Use upon filing a petition in bankruptcy. If a customer files a petition with the United States Bankruptcy Court to discharge his or her debts, and the court properly assumes jurisdiction in the case, the deposit shall be considered part of the bankruptcy estate. The customer shall be notified that due to the Bankruptcy notice, a deposit of or payment of an amount to bring the deposit up to an amount equal to the greater of twice the average monthly consolidated bill for all City furnished utilities, averaged over a 12-month period, or $150.00. If the required amount is not paid within 20 day of Notice of Additional Deposit, utility service will be disconnected. Section 3. Billing and Payment Deadlines Utility service billing, payment due dates and related notice procedures will be required by the Water Shutoff Protection Act (Health and Safety Code sections 116900-116926) are outlined in the Shut Off Policy included as Exhibit A to this Resolution. Section 4. Fees and Other Charges. a. New Utility Account Application Fee: In addition to any other deposits or fees required for New Service Utility Connections, an applicant shall pay to the Finance Department prior to receiving utility service: Commercial and Domestic Service: Water: $38.00 Electric: $38.00 If both water and electric are connected, the application fee will still be $38 dollars and split between the two utilities. b. Delinquency and Disconnection Penalties: Payment Reminder Notice: $1.00 Final Notice: $2.00 48-Hour Notice: $6.00 48-Hour Notice Door Hanger: $47.00 Disconnection and Reconnection Fees: Service Disconnect Fee: $49.00 Premium Disconnect Fee: $197.00 Service Reconnect Fee: $58.00 Premium Reconnect Fee: $174.00 Section 5. Effective Date. This Resolution shall take effect 60 days after adoption. Customers shall be notified through Page 3 of 4 bill inserts, email, and other outreach, including targeted communication with customers in arrears. 0 PASSED AND ADOPTED this 20th day of August, 2025, by the following roll call vote: AYES: Councilmembers Rodin, Criss, Orozco, Sher, and Mayor Crane. NOES: None. ABSENT: None. ABSTAIN: None. ATTEST: kA4,'Vtft,-- Kristine Lawler, City Clerk Douglas F Crane, Mayor Page 4 of 4 Fl�