Madera Municipal Code Ch. 7 Municipal Utilities

This chapter shall be known as "Municipal Utilities". It shall contain the ordinances regulating the collection of revenues for the providing of water, sewer, drainage, garbage collection and street cleaning services by the city.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 919 C.S., passed 5-20-15)

The purpose of this chapter is to unify and update policies for billing and collection of municipal utility revenues for water, sewer, drainage, garbage collection and street cleaning services.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 919 C.S., passed 5-20-15)

The Finance Director, or his or her designee, shall:

(A) Perform all functions and duties relating to the administration of all provisions, rules, and regulations, as described in this chapter, and Chapters 3, 4 and 5 of Title V of the Madera Municipal Code; garbage collection, sewer, storm drainage and water utility services hereinafter referred to as "Municipal Utilities".

(B) Make such forms, rules, regulations, and decisions as may be necessary to aid in the administration or enforcement of provisions related to municipal utilities in this chapter and Chapters 3, 4 and 5 of Title V of the Madera Municipal Code.

(C) Apply all utility charges to customer accounts, and collect all fees owed to the city as prescribed by applicable approved minute orders, resolutions, and/or ordinances of the City Council.

(D) Collect all other charges and deposits as directed by applicable approved minute orders, ordinances, or resolutions adopted by the Council, or other statutory mandates.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 919 C.S., passed 5-20-15)

(A) Applicants for municipal utility services may be required to guarantee with a security deposit the payment of municipal utility services. Residential accounts shall deposit with the city the amount required by the city's Master Fee Schedule. All other accounts including multi-family will deposit with the city a sum equal to three months average monthly billing.

(B) A deposit for residential municipal services may be waived if the applicant is creditworthy and meets one of the following criteria:

(1) If the owner of the service location is the applicant, a deposit shall be required, unless it can be determined that the applicant has not previously been delinquent in the previous 12 months at another service location. If a deposit is waived, it shall be on the condition that the applicant remains current on all future utility bills; or

(2) If the applicant has a previous credit history with the city, and can demonstrate that there have been no delinquencies on his or her account.

(C) In the event of non-payment of all or a portion of the utilities bill, after notice is given the deposit may be applied against delinquent charges or against outstanding charges upon termination of service, as deemed necessary by the Finance Director or his or her designee.

(D) Deposits shall be automatically applied to a customer's account after a one-year period.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 898 C.S., passed 7-5-12; Am. Ord. 919 C.S., passed 5-20-15; Am. Ord. 975 C.S., passed 8-19-20)

(A) Applications for municipal utility services shall be in writing on a form prescribed by the Finance Director.

(B) Utility services can be initiated by written application or by telephone. If utility services are activated by telephone, a written application and either deposit or waiver verification must be received by the City Finance Department within five business days of service activation, otherwise the utility services may be discontinued.

(C) A non-refundable application fee shall be collected from each applicant for municipal utility services for each service location. The amount of the application fee will be as set by resolution of the Council.

(D) Deposit requirements unless waived as provided in this chapter shall be determined by the Finance Director based on the applicant's past municipal utility account history and any other pertinent information pursuant to this chapter.

(E) Accepted applications will be set up as utility accounts and thereafter billed accordingly as set forth by resolutions, ordinances, and/or policies in effect at the time of application, and at all times of service.

(F) Municipal utility policies shall govern the obligations and rights of municipal utility customers. The municipal utility policies shall consist of ordinances, City Utility Services Policy, resolutions, and shall be consistent with applicable sections of the California Public Utilities Code, and administrative directives applying to municipal utilities.

(G) A customer whose application is accepted shall be responsible for the utility bill at the service location until a request for termination of service, or other written notice is received in the Department of Finance office, as prescribed in § 8-7.12 of this chapter.

(H) A residential property owner shall be responsible for utility services to the unoccupied property, if any, during the time period in which the Finance Department receives a termination of service request from the previous tenant and the time the Finance Department receives a request for service from the subsequent tenant. The property owner will not be responsible for the utility services if it can be established that another tenant occupied the property between the time a termination of service request was received and the time a request for service was received. During such time period, the tenant occupying the property shall be responsible for the utility service.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 919 C.S., passed 5-20-15)

(A) Rates. Charges, fees, and assessments for municipal utilities shall be in the amounts and times designated by City Council resolution, or ordinance, and shall constitute a debt owing and payable to the city.

(B) Billing. Regular municipal utility services shall be issued according to the billing dates established by the Director of Finance.

(C) Unified billing. Municipal utility services shall be billed under a unified bill which includes water, sewer, drainage, street cleaning, garbage collection charges and other charges as the Council designates.

(D) Payment. All charges for utility services shall be due and payable on the billing date. All unpaid utility charges shall become delinquent at the close of business on either the 7th, the 14th, the 21st, or the 28th of the current month, depending on billing dates established by the Director of Finance as allowed in § 8-7.08(B) and at the discretion of the same. The specific due and payable date selected by the Director of Finance for each account will be identified on each unified bill. The Director of Finance may also update the specific due and payable date identified herein for any account upon 60 days prior notice to the utility customer in the unified bill. If the delinquent date falls on a Saturday, Sunday or legal holiday, charges shall become delinquent at the close of business on the next business day after said Saturday, Sunday or legal holiday. Postmarks will not be accepted as the date the payment was received.

(E) Proration. For the first and last months of active utility service, the utility charges shall be prorated beginning with the first day of service in the current billing cycle, until the last day of the billing cycle or the last day of utility services if the Finance Director has been notified in advance of the proposed termination.

(F) Meter failures. If a meter fails to register during any billing period or is known to register inaccurately, the customer shall be charged on the basis of the average monthly consumption for a period of one year as shown by the meter when in use and registering accurately or, in the event the customer has not received water for a period of one full year, then over such lesser period based on the average monthly consumption.

(G) Disputed meter reading. In case of a disputed meter reading, the customer may make a written complaint to the Director of Finance, together with a deposit of a fee as set by Council resolution. The deposit will be returned and the utility bill equitably adjusted for a period of not to exceed the prior 12 months in any case where the meter shall be tested and found to register flows demonstrating more than 3% over or under the amount of water which actually passes through the meter. If it is determined that no error occurred, the customer shall receive credit on his utility account in the amount of the difference between the amount to be charged to the city for the testing of the disputed meter and the amount of deposit.

(H) Billing errors. In the event a clerical error or other circumstance occurs which creates an inaccurate billing for service charges, an adjustment shall be made in the customer's bill for a period not to exceed the preceding 36 months, either in the customer's favor or the city's favor as appropriate.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 919 C.S., passed 5-20-15; Am. Ord. 1005 C.S., passed 2-21-24)

(A) Residential utility accounts remaining unpaid for at least 60 calendar days after the due date shall be subject to disconnection from water utility services in the manner prescribed in the City Utility Services Policy and consistent with applicable sections of the California Public Utilities Code.

(B) Commercial utility accounts remaining unpaid after the due date shall be subject to disconnection from water utility services in the manner prescribed in the City Utility Services Policy and consistent with applicable sections of the California Public Utilities Code.

(C) Where more than one residence is billed under one multi-unit account, including but not limited to apartment units, mobile home parks, etc., accounts remaining unpaid for at least 60 days after the due date shall be subject to disconnection from water utility services in the manner prescribed in the City Utility Services Policy and consistent with applicable sections of the California Public Utilities Code.

(D) In order to restore service to an account with discontinued service, payment in the form of check will not be accepted. Cash, debit, credit, or money order will be accepted.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 919 C.S., passed 5-20-15; Am. Ord. 969 C.S., passed 2-19-20)

(A) In the event that a utility bill is not paid on or before the delinquent date, the following additional charges shall be added to each delinquent billing:

(1) The amount determined by resolution or, in the absence of such resolution, 10% of the delinquent balance of all utility charges.

(2) In addition, the delinquent balance, including additional charges, shall be charged interest at the rate of 1 ½% per month.

(B) If water service had been discontinued for failure to pay a utility bill as set forth in § 8-7.09 of this chapter, the entire amount of the utility bill including all applicable penalties, interest, and deposit shall be paid before water service is restored, unless an amortization agreement for payment of the delinquent balance consistent with the Public Utilities Code and the city policy under California Water Shut Off Act (SB 992: Cal. Health and Safety Code §§ 116900 to 116926) is arranged with the Finance Director or his or her designee. The city policy is established by City Council Resolution as "City of Madera Utility Service Policy for Residential and Multi-Family Customers").

(C) A charge as determined by resolution of the Council shall be charged on all returned checks, plus any service charges assessed by the bank. Accounts shall be subject to the following payment restrictions.

(1) Checks will not be accepted as payment when service has been interrupted because of a returned check.

(2) If account holder has two checks returned to the city from the issuing bank within a six- month period, no checks will be accepted as payment on that account for the six months following the last returned check.

(D) In addition to any other fees or charges provided in this section, any customer requesting a utility service, including but not limited to application for water service, service turn-on, or shut-off, on any Saturday, Sunday, legal holiday, or before the hour of 8:00 a.m. or after the hour of 5:00 p.m. of any day, shall pay an additional charge as determined by resolution of the Council for after hours or weekend or holiday service.

(E) Accounts shall be subject to collection of any delinquent fees and charges in the following manner:

(1) At the time the fees become delinquent and until such time as they are fully paid, the delinquent account balance, including late charges, shall constitute an unrecorded lien against the property and, as such, may be identified during a title search. In addition, commercial businesses' delinquent account balances, including late charges, may be considered an unrecorded lien against the business and/or owner of the business except that all procedures under the City of Madera Utility Service Policy for Residential and Multi-Family Residential Customers shall be followed first.

(2) Once a year, the Council shall cause to be prepared a report of current delinquent fees, including late charges, for that year. The Council shall fix a time, date and place for hearing the report and receiving any objections or protests thereto.

(3) The Council shall cause notice of the hearing to be mailed to the landowners listed on the report not less than 15 calendar days prior to the date set for hearing.

(4) At the hearing, the Council shall hear any objections or protests of landowners liable to be assessed for delinquent fees including late charges and administrative fees. The Council may then make revisions or corrections to the report as it deems just, after which, by resolution, the report shall be affirmed.

(5) The delinquent fees set forth in the report as confirmed shall constitute a lien against the respective parcels of land and are a lien on the property for the amount of such delinquent fees, including interest and late charges. A certified copy of the resolution affirming the assessments shall be filed with the County Recorder and the County Auditor-Controller/Tax Collector for the amounts of the respective assessments against the respective parcels as they appear on the current assessment roll. The lien created attaches upon filing. The assessments shall be collected at the same time and in the same manner as other property taxes and shall be subject to the same penalties and the same procedures and sale in case of delinquency as provided for such taxes. All laws applicable to the levy, collection and enforcement of property taxes shall be applicable to such assessments. However, if during the first year for which the charges are prescribed, the property served by the city has been transferred or conveyed to a bona fide purchaser for value, and attached thereon, prior to the date on which the first installment of county taxes would become delinquent, the charge shall not result in a lien against the real property, but shall become transferred to the unsecured roll for collection.

(6) In addition to, or alternatively to, imposing a lien, the city may file an action for the collection of any amounts due and unpaid. In any such action, the delinquent balances may also be processed through a collection agency.

(7) If the account of a commercial customer who is not the property owner remains delinquent for over 90 days, a billing will be rendered to the property owner so as to provide notice of the delinquency and lien on the property, as mandated in subsection (1) of this section, such that payment of the account can occur prior to applying subsections (2), (3), (4), (5), and (6) of this section. The charges for utility service referred to herein shall constitute a lien against the lot or parcel of land against which the charge was imposed if such charge remains delinquent for a period of 90 days. In the event that utility services are provided to property occupied by a non-owner/tenant, and payment for such service had been guaranteed by the property owner, the Director of Finance is authorized and directed to notify such owner of any delinquencies hereunder upon their occurrence.

(8) The city shall have the right to require that commercial property owners guarantee tenant accounts that are delinquent or have a history of delinquency.

(9) The provisions of this section shall be applicable, in addition to the fees and charges arising from service provided under Chapters 5-3, 5-4, and 5-5 of this municipal code.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 898 C.S., passed 7-5-12; Am. Ord. 919 C.S., passed 5-20-15; Am. Ord. 969 C.S., passed 2-19-20)

(A) Any unauthorized use of utility services by failing to apply for service, or by tapping, opening, or connecting to another source for water or sewer service which has been interrupted due to non-payment shall pay an additional charge as determined by resolution of the Council. If it is determined that a neighboring address is supplying utility service to an address which has had service terminated due to non-payment, the account holder supplying such service will have an additional cost to their account in addition to the user who is not authorized to receive such service.

(B) The penalty for unauthorized use of utility services, shall include a monthly charge as set by resolution of the Council for each instance of unauthorized use of municipal utilities for a residential user, and 10% of the monthly charges of a commercial, industrial, or other non-residential user. This monthly penalty shall be in addition to the monthly utility charges for consumption, and any other charges approved by this chapter.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 898 C.S., passed 7-5-12; Am. Ord. 919 C.S., passed 5-20-15)

(A) Request for termination of service by the current customer shall be by advance written notice on a form provided by the Finance Department and signed by the account holder. The completed form should specify the date service is/was to be discontinued and the forwarding address for the closing bill. Otherwise, said customer shall be held responsible for utility services provided to the service location until the Finance Department receives a written request for termination.

(B) Temporary disconnection of service at the request of the customer requires an advance notice, as in division (A) of this section.

(C) Any account balance considered delinquent as set forth in § 8-7.10(A) may be disconnected from the water system for non-payment. Upon interruption of service the account will be charged a fee as set by the city's Master Fee Schedule. Residential services shall be given notice consistent with the applicable provisions of the California Public Utilities Code sections. Other accounts shall be notified pursuant to the City Utility Service Policy prior to disconnection for nonpayment of utility bill.

(D) Any customer request for service at another location when accompanied with a request for termination at a previous service location, shall be treated as a new account with prior service. In the case where a customer's prior account is delinquent, all past due amounts will be due in full, and a new deposit required, prior to activation of service at the new location.

(E) A violation of any of the sections of this chapter or other applicable law that prohibits, regulates, or authorizes water service may be grounds for service disconnection depending on the severity of the violation at the discretion of the Finance Director. Factors to be considered in determining severity of the violations include, but are not limited to, the nature of the offense, the number of prior, or repeated offenses, disregard for public safety, and disregard for public property.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 898 C.S., passed 7-5-12; Am. Ord. 919 C.S., passed 5-20-15)

All appeals under this chapter shall be in accordance with the City Utility Policy.

(Ord. 731 C.S., passed 5-16-01; Am. Ord. 919 C.S., passed 5-20-15)

(A) Delinquent residential accounts and properties without an active account.

(1) Ten calendar days before an account becomes delinquent, a notice is to be forwarded to the account holder by mail, to the service address. The notice will indicate that a penalty will be applied and the water will be shut off if the past due balance is not paid in full by the required payment date as established in the City of Madera Municipal Code. The notice is applicable to those accounts that are at least 60 days past due and are not already under a payment agreement. The notice will include (a) a customer's name and address; (b) amount past due; (c) date by which payment or payment arrangements are required to avoid termination of service; (d) description of the process to apply for payment arrangements; (e) description of the process to dispute or appeal a bill; and (f) City Finance Department's telephone number and a web link to the City Finance Utility Billing Department's written delinquent account policy.

(2) Ten calendar days prior to termination of service, a notice that water services will be discontinued is mailed to the customer. If the mailing address and the address of the property to which water service is provided are different, a second notice will be mailed to the service address and addressed to "occupant." If unable to reach customer by telephone or the mailed notice has been returned undeliverable, the city will make every effort to hand deliver or post a notice in a conspicuous place regarding the shut off process.

(3) City staff will proceed to shut off procedure if the account holder has made no response to the ten-day or 48-hour notices.

(B) Delinquent commercial accounts and properties without an active account.

(1) Ten calendar days prior to termination of service, a termination notice is to be forwarded to the account holder either by mail or posted in a conspicuous place at the service address. That notice will typically be provided on the customer's utility bill and will relate to the balance from the prior utility bill that has become delinquent. The notice will indicate that a penalty will be applied and the water will be shut off if the past due balance is not paid in full by the required payment date, as established in the City of Madera Municipal Code § 8-7.08(D). The ten-day notice is for those accounts that have not paid their balance from the prior utility bill and are not already under a special payment agreement. If the notice is mailed, the ten-day period will begin five days after the date of mailing the notice. If the notice is physically posted at the service address, the ten-day period will begin on the day of posting.

(2) Seven calendar days prior to termination of service, a 48-hour shut-off notice will be forwarded to the customer by mail. The 48-hour period will begin five days after the mailing of the notice. At least 48 hours prior to termination of service city staff will make a reasonable attempt to contact an adult person residing at the premises by phone. In certain instances, this notice may be hand delivered or posted in a conspicuous place to expedite the shut-off process once city staff has made a reasonable attempt to contact an adult at the premises by phone.

(3) Proceed to shut-off procedure if the commercial account holder has not made an attempt to contact the office or if the account has not been brought to a current status.

(C) Delinquent multi-family accounts and properties without an active account.

(1) Ten calendar days before an account becomes delinquent, a notice is to be forwarded to the account holder by mail to the service address. The notice will indicate that a penalty will be applied and the water will be shut off if the past due balance is not paid in full by the required payment date as established in the City of Madera Municipal Code. The notice is applicable to those accounts that are at least 60 calendar days past due and are not already under a payment agreement. The notice will include (a) a customer's name and address; (b) amount past due; (c) date by which payment or payment arrangements are required to avoid termination of service; (d) description of the process to apply for payment arrangements; (e) description of the process to dispute or appeal a bill; and (f) City Finance Department's telephone number and a web link to the City Finance Utility Billing Department's written delinquent account policy.

(2) Ten calendar days prior to termination of service, a notice that water service will be discontinued is mailed to the customer. If the mailing address and the address of the property to which water is provided are different, a second notice will be mailed to the service address and marked "occupant." If unable to reach customer by telephone or the mailed notification has been returned undeliverable, the city will make every effort to hand deliver or post a notice in a conspicuous place regarding the shut-off process.

(3) The notice will advise tenant/occupant that they have the right to become customers of the city without being required to pay the amount due on the delinquent account, as long as they are willing to assume financial responsibility for subsequent charges for water service at the address(es) served by master meters. Tenants must have the opportunity to transfer the account into their name.

(4) Proceed to the shut-off procedure if all monies, including penalty and interest have not been paid within the required time frame.

(D) Breached special payment agreements.

(1) At least 48 hours prior to termination of service, city staff will make a reasonable attempt to contact the account holder by phone. If a phone call is unable to be completed, then a 48-hour notice will be posted at the service address.

(2) Service will be shut off if the account holder has made no response to the 48-hour notice.

(Ord. 898 C.S., passed 7-5-12; Am. Ord. 919 C.S., passed 5-20-15; Am. Ord. 969 C.S., passed 2-19-20)