San Jose Municipal Code Part 2.5 Rates and Charges for Potable Water Service

The purpose of the provisions of this Part 2.5, and the potable water rates and charges to be established pursuant to this Part 2.5, is to generate revenue sufficient to make the expenditures required under subsections A., B. and C. of Section 4.80.630 of this Code and to generate such additional revenue as may be allowable under subsection D. of Section 4.80.630 of this Code. Any rate increase for the express purpose of increasing transfers to the general fund to meet the maximum amounts allowed in Section 4.80.630D.2. is prohibited.

(Ord. 26903.)

A. Rates and charges for potable water service, including meter charges and quantity rates, shall be established from time to time by resolution of the city council.

B. Rates and charges for potable water service may vary by water service area, and by zone within a water service area.

C. Written notice of any proposed increase in rates and charges for potable water services shall be provided in advance of approval of any rate or charge increase, as follows:

1. Notice shall be published in a newspaper of general circulation at least fifteen days in advance of city council consideration of such increase.

2. Notice shall be sent directly to the customer with the customer's regular water bill if a bill is due to be sent to the customer between the time an increase is proposed and the increase is scheduled to be considered by the city council.

(Ord. 26903.)

A. Any bill for municipal water service not paid by the due date specified in the bill shall be deemed delinquent.

B. If any bill for municipal water service becomes delinquent, a late charge in an amount set forth in the Schedule of Fees established by resolution of the City Council shall be added to the bill. The late charge shall be in addition to any administrative charges imposed for reconnection of service in the event of service shut-off due to non-payment.

C. Notwithstanding subsection B. above, the Director of Finance may cancel the late charge for municipal water service if:

1. The person whose name appears on the bill can demonstrate that, prior to its due date, the bill was not received for the billing period for which the late charge is imposed; and

2. The person whose name appears on the bill files a request for cancellation with the Director of Finance within ninety (90) days of receiving notice of the late charge.

D. Notwithstanding subsection B. above, if the Director of Finance determines that a late charge was erroneously added to a bill for municipal water service, the Director may:

1. Cancel the late charge in any case where the error is discovered prior to the payment of the late charge; or

2. Refund the late charge in any case where the error is discovered after the late charge has been paid.

E. Notwithstanding subsection B above, the Director of Finance may cancel any late charge imposed on a bill for municipal water service, in an amount not to exceed Five Hundred Dollars ($500) if:

1. The person whose name appears on the bill requests a cancellation within thirty (30) days of receiving notice of the late charge; and

2. During the twenty-four-month (24) period immediately preceding the billing date on the bill on which the late charge first appears, the person whose name appears on the bill has not been granted any other cancellation of a late charge for municipal water service provided to the premises for which the bill was issued; and

3. Prior to the cancellation of the late charge, the person whose name appears on the bill pays the delinquent bill for which the late charge was imposed.

F. Notwithstanding the foregoing, the Director of Finance may cancel the interest charges and late fees on residential municipal water services for those financially unable to pay as set forth and defined in the San José Municipal Water System Rules and Regulations or the City's administrative policies regarding water services.

(Ord. 27709, 30318.)