Chowchilla Municipal Code Ch. 13.16 Billing and Collection Procedures for Municipal Utility Services

A. Unless the particular provision or the context requires otherwise, the definitions and provisions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter, and, except to the extent that a particular word or phrase is otherwise specifically defined in this section, the definitions and provisions contained in Title 13 (commencing with Chapter 13.04) and Chapter 8.04 of Title 8 of this code shall also govern the construction, meaning, and application of words and phrases used in this chapter. The definition of each word or phrase shall constitute, to the extent applicable, the definition of each word or phrase which is derivative from it, or from which it is a derivative, as the case may be.

B. "Bill" means an invoice or statement of account for utility service charges, rentals, or fees or other municipal charges or fees.

C. "Bimonthly" means every two months.

D. "Charges" means charges, rentals, fees and other debts incurred by reason of the rendering of a utility or other municipal service or privilege.

E. "Customer" means a person, on an application for service as responsible for payment of charges.

F. "Day" means a calendar day.

G. "Month" or "monthly" means a calendar month.

H. "Premises" mean a tract of real estate, including adjoining lots or parcels under the same ownership or control and the improvements thereon, which is determined by the city to be a single unit for purposes of receiving, using and paying for service.

I. "Property" has the same meaning as "premises."

J. "Quarterly" means every three months.

K. "Utility service" or "utility services" means water service, or refuse disposal service, or sewer service, or any combination thereof, or privileges connected with water, refuse disposal, or sewer service.

(Ord. 407-98 § 1 (part), 1998)

The city council may make such rules and regulations which are consistent with the provisions of this chapter as may be necessary or desirable to aid in the administration or enforcement of the provisions of this chapter.

(Ord. 407-98 § 1 (part), 1998)

A. Application Necessary. Each applicant for municipal utility services will be required to make an application in writing for the service or services desired. An application may be for more than one service.

B. Temporary Service on Telephone Order. Preliminary applications may be received by telephone, but any service granted thereby will be temporary only, with continued service conditional upon the receipt, within ten days of the start of service, of a written application therefor along with any required reports. If the written application is not so received, the service shall be discontinued or disconnected.

C. Form of Application. The form of the application shall be designated by the city. It shall set forth the location of the premises to be served, the date service is to commence, the name, address and telephone number of the customer designated thereon as the one responsible for the payment of bills, the name, address and telephone number of the applicant (if different) that such service is to be used under and subject to the rules and regulations of the city in respect thereto as from time to time may be in force, and other information concerning the applicant's identity or financial status as may be required by the city.

D. Conditions Precedent to Final Acceptance of Application.

1. No application for municipal utility service shall be finally accepted from any customer who is delinquent on any bill with respect to any premises located in the city, unless the bill is disputed under the provisions of Section 13.16.040(H) of this chapter or an agreement for payment thereof has been entered into under the provisions of Section 13.16.070 of this chapter.

2. The city may receive an application for utility service and may provide commencement of the service or services applied for, all subject to a check of utility service records to determine whether the city will finally accept the application. If it is determined that the application cannot be accepted, written notice of this fact shall be given to the applicant, with not less than ten days to correct the defect. If the defect is not corrected, service shall be discontinued.

3. The city may, at its option, require that all utility services rendered at a single service location be billed to one applicant who shall be responsible for payment of all charges. For the purpose of this section, "single service location" shall be defined to include, but not be limited to: a single living unit, a single waste disposal service location, combined units served through a single service pipe, or contiguous commercial locations which are separately metered but share a common owner.

(Ord. 407-98 § 1 (part), 1998)

A. Charges. Charges for municipal utility services, fiscal service charges, and minimum charges shall be in the amounts designated by resolution of the city council. Any delinquent charges and penalties thereon shall be recorded and shall constitute a lien upon the real property served. The lien shall continue until the charge and all penalties thereon are fully paid or the property sold.

B. Applicant's Responsibility. No municipal utility services shall be provided without an application by the owner of the premises to be served or the authorized agent of the owner. Any person in lawful possession of the premises shall be deemed to be the agent of the owner. Billings for service will be to the owner unless otherwise provided on the application, but the municipal utility services are to the premises and the owner thereof is responsible. The application shall signify the applicant's willingness and intention to comply with this and other ordinances or regulations relating to the regular municipal utility services and to make payment for the services.

C. Due and Delinquency Dates. The minimum guidelines are:

1. Bills for flat rate utility services will be rendered at the conclusion of the service period designated in any such bill.

2. Bills for metered service will be rendered as soon as practicable after the reading of the meter.

3. Bills for municipal utility services shall be due and payable nineteen days from the date of depositing the bill for services in the United States mail or upon presentation to the customer.

4. Bills for municipal utility services shall become overdue and delinquent when payment is not made by the date specified thereon at the close of business hours. The date specified thereon shall be at least nineteen days after the Post Office cancellation date for the billing.

5. In the absence of a specified date, rates and charges which are not paid within nineteen days after the Post Office cancellation date of the billing shall be subject to a basic penalty of ten percent. In addition a penalty of one-half of one percent per month shall be added to the bill for every month of nonpayment for the charges and penalties. Service may be discontinued until payment is made in full. If due date falls on a weekend or holiday, payment is due on the next working day.

D. Municipal Service Bills. The city shall have the power to combine bills for utility services rendered to any one customer or bill separately therefor, as in the city's discretion it may deem to be in the best interests of the city. The city shall have the power to bill for regular service or special services rendered to regular service customers or consumers, upon a monthly, bimonthly, quarterly, or other basis, as in its discretion it may deem to be in the best interest of the city. For billings periods other than monthly, the charge for flat rate service will be computed by multiplying the monthly charge by the number of months in the billing period.

E. Payments.

1. Place of Payment. Bills are payable at the office of the city, 145 Robertson Boulevard, Chowchilla, California, or to an authorized city collector or city collection agent.

2. Credit to Account. Payments shall be credited to a customer's account only when actually received by an employee of the city in the utility billing department or such collector or collection agent. Payments shall be received "on account" of the customer and shall not apply to charges for any particular period.

3. Checks. If a remittance tendered in payment of any account fails to clear through the banks and is returned, the account shall be considered unpaid, any receipts issued therefor shall be void, and the indebtedness shall be restored to the account.

4. Service Charge for Returned Checks. The service charge for returned checks designated in the city resolution on rates and charges for utility services shall be assessed when the check or other commercial paper fails to clear through the banks and is returned to the city. This charge shall be made against the account originally credited, shall be added to the amount of the bill, and shall become a part thereof. This charge is in addition to any collection, restoration or reconnection charges which may otherwise become due and payable. Assessment of this service charge shall not relieve the maker of any criminal or civil liability provided by law.

F. Proration of Bills. The charges applicable to opening periods and closing bills rendered for periods less than the regular billing cycle will be computed as follows:

1. Metered Service. The amount of the minimum charge (and the quantity allowed therefor) or the readiness to serve charge will be prorated on the basis of the ratio of the number of days in the period to the number of days in the established billing period. The measured quantity of usage will be applied to such prorated amounts and quantities. In general, meters shall be read on a monthly, bimonthly, quarterly, or other basis. The period between reading dates may vary and still be considered as one or more whole amounts for billing purposes.

2. Flat Rate Service. The billing period charge will be prorated on the basis of the ratio of the number of days in the period to the number of days in the established billing period.

3. Established Billing Period. The number of days in billing periods will be considered as thirty days for those accounts on a monthly cycle, as sixty days for those accounts on a bimonthly cycle, and as ninety days for those accounts on a quarterly cycle.

4. Rounding Off. Any flat rate charge may be rounded off to the nearest multiple of five cents. Charges based on volume may be rounded off only to the nearest multiple of one cent. Parcel size may be rounded off to the nearest one hundred square feet.

G. Disputed Bills. Should the amount of any bill for service be questioned, the customer should promptly request an explanation. If the explanation is not satisfactory or is not understood, the customer must initiate a complaint or request an investigation within five days of receiving the dispute bill, or within thirteen days of mailing of the notice required by Section 13.16.060(D) of this chapter, make a request for extension of the payment period of a bill asserted to be beyond the means of the customer to pay in full during the normal period for payment. The review shall include consideration of whether the customer shall be permitted to amortize the unpaid balance of the account over a reasonable period of time, not to exceed twelve months. No termination of service shall be initiated for any customer during the pendency of an investigation by the city of a customer dispute or for any customer complying with the amortization agreement, if the customer also keeps the account current as charges accrued in each subsequent billing period.

Any customer whose complaint or request for an investigation pursuant to the above has resulted in an adverse determination by the city administrator may appeal the determination to the city council.

H. Failure to Receive Bills. Municipal service bills shall be mailed to the premises served and/or other address known to the city. The applicant, property owner, or his authorized agency may list a mailing address with the city for use in mailing bills. Failure to request such listing or to receive any bill, invoice, or notice shall not relieve responsibility for timely payment as required.

I. Computation When Meter Cannot Be Read. Whenever for any reason a meter is inaccessible and cannot be read or fails to register, water consumption at the metered premises for the purpose of calculating charges based thereon shall be estimated by one or more of the following methods as the city may deem to be the best indicators of actual water consumed or actual charges due:

1. Previous actual consumption at said premises as shown by previous meter readings;

2. Previous average actual consumption for corresponding billing periods in previous years during which the meter is known to have registered correctly;

3. Consumption as registered by a later substituted meter;

4. Consumption based upon the nature of use, volume of business, seasonal demand, and similar factors that may indicate consumption.

Where a meter cannot be read without undue difficulty because of an obstruction, the customer will be notified and requested to correct the condition. The city has the right to discontinue the service if the condition is not corrected. Where service is turned off for such cause, the city may require payment of a turn-on charge as provided for in this chapter.

(Ord. 407-98 § 1 (part), 1998)

A. Master-Metered Apartment Buildings, Commercial and Industrial Accounts. An applicant for any utility service for a master-metered apartment building, commercial or industrial establishment or for any measured or metered water service shall establish his credit to the satisfaction of the city. An applicant's credit will be deemed to be established if the applicant:

1. Subject to amount determination as hereinafter provided, makes a cash deposit with the city or makes an assignment to the city of a saving and loan certificate or passbook, or a commercial bank savings or time deposit certificate, or furnished a two-party guaranty or corporate surety bond satisfactory to the city administrator to secure the payment of charges for municipal utility services;

2. Is, or is an agency of, the federal, state or other government;

3. Furnishes evidence acceptable to the city administrator of favorable credit worthiness;

4. Has previously been a utility service customer of the city within one year of the application for service and has paid all bills promptly for the last twelve-month period prior to the date of the discontinuance of service.

B. Residential and Tenant Accounts. A residential or tenant applicant may be required to deposit a sum of money with the city prior to establishing an account and furnishing service. The decision to require a deposit shall be based solely upon the credit worthiness of the applicant as determined by the city. In determining the credit worthiness of an applicant, the city may consider the credit history of the applicant for the past three years, and shall not discriminate based on the location of the premises or on the race, color, religion, sex, national origin, or ancestry of the applicant.

C. Amount of Security. Service deposits, bonds or other security when furnished by a residential customer to guarantee payment of utility bills, shall be made in an amount not to exceed twice the estimated average periodic bill or three times the estimated average monthly bill.

D. Return of Security. If a residential customer's account has not been delinquent in twelve consecutive months, any service deposit or other security for said account shall be returned to the depositor upon application for refund of said security. If a customer who has established credit, or whose deposit has been returned as provided herein, fails to pay his bill promptly as required under this chapter, the city may demand as a condition precedent to further service and as security for the payment of bills thereafter to be incurred, security in the maximum amounts set forth in subsection C of this section.

E. Closing of Account. The balance of the security of any account remaining after the closing bill for service has been paid, and less any city offsets, shall be returned to the customer. No interest shall be paid by the city on any such balance. In the event the customer fails to leave a forwarding address, and no such address is received in one year, said balance shall be forfeited to the city.

F. In no event shall the city seek to recover any charges or penalties for the residential use to a tenant under an account established by a tenant for the furnishing of services to or for the tenant's residential use from any subsequent tenant or the property owner due to nonpayment of charges by a previous tenant. "Subsequent tenant" shall not include any adult person who lived at the residence during the period that the charges or penalties accrued. The city will not require that service to subsequent tenants be furnished on the account of the landlord or property owner unless the property owner consents through a written agreement.

(Ord. 407-98 § 1 (part), 1998)

A. Service Charge. Whenever a payment of any bill for municipal utility services is not received by the specified delinquent date, the delinquency service charge designated in the applicable city resolution shall be, without notice, added to the amount of such bill and become part thereof. This subsection shall not apply to payments due from any government or governmental agency.

B. Delinquency Notice. A delinquent bill notice or reminder, stating the amount past due and remaining unpaid and the service charge due and payable, may be mailed to the customer, occupant and to the owner of the premises.

C. Collection of Restoration Charge. Upon any of the following listed occurrences, the city may send a representative to discontinue the utility service, and the service charge designated in the applicable city resolution shall be charged for this delinquency follow-up and/or any restoration or reconnection of service during normal working hours. This amount shall be in addition to the service charge imposed under subsection A of this section:

1. When a delinquent bill remains unpaid more than ten days after the bill becomes delinquent;

2. When a written application for service is not received as provided in subsection B of Section 13.16.030 of this chapter;

3. When final acceptance of the application (and continuance of service) cannot be made and the defect is not corrected as provided in subsection D of Section 13.16.030 of this chapter;

4. When service has been discontinued for violation of other sections of this code, or of lawful rules and regulations issued as authorized in this code.

D. Disconnection to All Premises of Customer for Nonpayment. No municipal utilities to residential service on account of nonpayment of a delinquent account may be terminated, unless the city gives notice of the delinquency and impending termination at least ten days prior to the proposed termination, by means of a notice mailed, postage prepaid, to the customer to whom the service is billing. The notice of delinquency may not be mailed earlier than nineteen days from the date of mailing the municipal utility bill for services. Furthermore, the ten-day period shall not commence until five days after the mailing of the notice.

Every notice of termination of service shall include all of the following information:

1. The name and address of the customer whose account is delinquent;

2. The amount of the delinquency;

3. The date by which payment or arrangements for payment is required in order to avoid termination;

4. The procedure by which the customer may initiate a complaint or request an investigation concerning service or charges;

5. The process for the customer to request amortization of the unpaid charges;

6. The procedure for the customer to obtain information on the availability of financial assistance, including private, local, state or federal sources, if applicable;

7. The telephone number of an employee of the city who can provide additional information or institute arrangements for payment;

8. The right of a tenant to open his or her account without being responsible for the owner's or prior tenant's unpaid bill.

The city shall make a reasonable attempt to contact an adult person residing at the premises of the customer by telephone personal contact, at least twenty-four hours prior to any termination of service, except that, whenever telephone or personal contact cannot be accomplished, the city shall give by mail and either in person, or by posting in a conspicuous location at the premises, a notice of termination of service, at least forty-eight hours prior to termination.

(Ord. 407-98 § 1 (part), 1998)

Whenever a delinquent current or former customer desire's continuance of a municipal utility service discontinued under this chapter or new utility service for which an application cannot be finally accepted under this chapter, service may be extended to the customer on a temporary basis until such delinquency is cured, providing that the customer enters into an agreement with the city for the payment of the delinquency. The agreement may be made by the city administrator and shall provide for the regular repayment of the delinquent amount. The terms of the agreement shall be determined by the city administrator with the approval of the city attorney, shall include simple interest charges established by the city administrator, and shall be reasonably calculated to ensure payment and collection of the delinquent amount. Failure to make a scheduled payment shall result in discontinuance of service without further notice. General terms for such agreements shall be set forth in the resolution establishing fees and charges for utility services.

(Ord. 407-98 § 1 (part), 1998)

No allowance reducing a utility service charge shall be made for vacancies in either single or multiple dwelling units in the computation of charges for utility services thereto unless the water service to the property is turned off by the city, except when premises are physically disconnected from the sanitary sewer system.

(Ord. 407-98 § 1 (part), 1998)

Charges for utility services shall continue to accrue and be in full force and effect until the customer or consumer shall have given the city at least twenty-four hours' written notice at the City Hall in Chowchilla that such service is no longer desired, provided that the city administrator may declare the account is closed and that the charges have ceased to accrue if he finds from a written notation in the city records that discontinuance of service has been requested, that another customer has properly requested service, or that the customer has moved from the premises. When advance notice of desired discontinuance is not given, the customer will be required to pay for service until such time as the utility billing department has knowledge that the customer has vacated the premises or otherwise has discontinued use of service.

(Ord. 407-98 § 1 (part), 1998)

A. Refuse Disposal Service. When refuse disposal service is stopped or varied and is then resumed by the same customer at the same premises within sixty days, the special service charge designated in the applicable city fee resolution shall be made.

B. Water Service. When water service is discontinued with the intent of stopping charges and is then resumed by the same customer at the same premises within thirty days, the special service charge designated in the applicable city fee resolution shall be made. This is in addition to any service charge required to be made under subsection A of this section, unless both water and refuse disposal are discontinued and resumed at the same time, in which case only said service charge for water is applicable.

(Ord. 407-98 § 1 (part), 1998)

A. Whenever water service is requested to be turned off for other than repairs, or on at any time, other than during normal city working hours, a special service charge shall be paid by the water customer or consumer. This charge shall be established by the utility billing department at an amount to reimburse the city for the direct and indirect costs of providing this special service.

B. Section 8.04.050 of this code is amended to read as set out in that section.

(Ord. 407-98 § 1 (part), 1998)

The city shall not terminate residential service for nonpayment in any of the following situations:

A. During the pendency of an investigation by the city of a customer dispute or complaint and any appeal;

B. When the customer has been granted an extension of the period for payment of a bill;

C. On the certification of a licensed physician and surgeon that to do so will be life threatening to the customer and the customer is financially unable to pay for service within the normal payment period and is willing to enter into an amortization agreement with the city with respect to all charges that the customer is unable to pay prior to delinquency.

(Ord. 407-98 § 1 (part), 1998)

The city will make available to its residential customers who are sixty-five years of age or older, or who are dependent adults as defined in paragraph (1) of subdivision (b) of Section 15610 of the Welfare and Institution Code, a third-party notification service, whereby the city will attempt to notify a person designated by the customer to receive notification when the customer's account is past due and subject to termination. The notification shall include information on what is required to prevent termination of service. The residential customer shall make a request for third-party notification on a form provided by the city, and shall include the written consent of the designated third party. The third-party notification does not obligate the third party to pay the overdue charges, nor shall it prevent or delay termination of service.

(Ord. 407-98 § 1 (part), 1998)