Water Service Discontinuation Policy (SB 998)

Discontinuation of Residential Water Service
Administrative Regulation No. 5.01.002

1. Overview of Purpose and Scope of this Regulation.

1.1. This Administrative Regulation for the Discontinuation of Residential Water Service (which may be referred to herein as “this Regulation”) documents the City’s administrative actions for the collection of delinquent residential water service accounts, including notifications, charges, and discontinuation of service.

1.2. This Regulation implements the requirements and limitations of state law that were enacted by Senate Bill No. 998 (Chapter 891, effective January 1, 2019), as codified at California Health and Safety Code Sections 116900 – 116926 (also known as the “Water Shutoff Protection Act”).

1.3. This Regulation will be made available to the public on the City of Napa’s web site. Any questions regarding this Regulation can be directed to 707-257-9508 or to the City of Napa Finance Director, 955 School Street, Napa CA 94559.

2. Delinquent Accounts. Delinquent accounts are hereafter identified as any account (for residential water service from the City) that remains unpaid (and without having made payment arrangements or established an alternative payment schedule) by close of business 21 days after issuance of the water bill. The following rules apply to the collection of delinquent accounts:

2.1 Small Balance Accounts: Any balance on a bill of $14.99 or less may be carried over, and added to, the next billing period without being assessed a late charge or incurring further collection action.

2.2 Late Charge: If payment for a bill is not received by close of business on the 21st day after the bill is issued, a late charge will be assessed in the amount listed in the Master Schedule of City Fees, Fines, and Charges. The due date and late charge will be displayed prominently on the next bill.

2.3 Waiver of Late Charge: At the request of the customer, the City will waive the late charge if the customer demonstrates to the reasonable satisfaction of the Finance Director that the delinquency was caused by extenuating circumstances and the customer has not been assessed a late charge for delinquent payment in the preceding 12 months; provided however, the Finance Director, may waive late fees more frequently than once every 12 months if he or she determines that such waiver is warranted due to circumstances beyond the control of the customer.

2.4 Amortization Plan Arrangements: Any residential customer who is financially unable to pay for residential water service within the normal payment period may request an amortization plan to avoid disruption of service by contacting the Revenue Division at 707-257-9508. To be considered for an amortization plan, a customer will be required to provide documentation that the customer is financially unable to pay as defined below.

A residential customer is deemed financially unable to pay if either of the following criteria are met: (a) any member of the customer’s household is a current recipient of CalWORKS, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants and Children; or (b) the customer declares that the household’s annual income is less than 200 percent of the federal poverty level. The Finance Director will consider the request and the supporting information provided by the customer and make a determination as to whether the customer qualifies for an amortization plan

An amortization plan, which must be in writing and signed by the customer, will amortize the unpaid balance over a period defined by the customer, not to exceed 12 months from the original date of the bill. The amortized payments will be transferred to an invoice with the due dates listed on the invoice. The customer must comply with the terms of the amortization plan and remain current on their water account as charges accrue in each subsequent billing period. The customer may not request further amortization of any subsequent unpaid charges while paying delinquent charges pursuant to an amortization plan. Failure to comply with the terms of an amortization plan for 60 days or more or failure to pay the customer’s current service charges for 60 days or more will result in the issuance of a written disconnection notice and a fee for each missed payment in the amount listed in the Master Schedule of City Fees, Fines, and Charges (“Failure to Pay Delinquent Water Bill”). The disconnection notice will be in the form of a door hanger delivered to the premises no less than 5 business days in advance of discontinuance of service.

A residential customer will automatically qualify for an amortization plan if the customer satisfies the following conditions:

a. The customer submits a primary care provider certification, as defined in Welfare and Institutions Code Section 14088(A)(1)(b), that discontinuation of service would be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where the service is provided.

b. The customer demonstrates that he or she is financially unable to pay for service within the City’s normal billing cycle. A customer is deemed financially unable to pay if either of the following criteria are met:

i. Any member of the customer’s household is a current recipient of CalWORKS, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants and Children; or

ii. The customer declares that the household’s annual income is less than 200 percent of the federal poverty level.

c. The customer agrees to enter into the amortization plan offered by the City, governed by the policies described in this Regulation.

The City may, in its discretion, offer to customers any other payment schedule as authorized by California Health and Safety Code Sections 116900, et seq.

If a customer fails to comply with an amortization plan for delinquent charges for 60 days or more, or while undertaking an amortization plan for delinquent charges, the customer does not pay his or her current residential service charges for 60 days or more, the City may discontinue water service 5 business days after it posts a final notice of intent to disconnect in a prominent and conspicuous location at the property.

3. Additional Notifications. As a courtesy, the City will make a reasonable, good faith effort to notify the customer that the account remains past due and further collection action will be forthcoming approximately 60 days after bill due date. The means of notification will be in the form of a delinquent notice.

4. Written Disconnection Notice. If a residential customer’s account remains unpaid for 60 days or more after the bill due date, the City may discontinue water service for non-payment in accordance with this Regulation. The City will contact the customer in writing at least 7 business days before discontinuation of water service for non‐payment. The written disconnection notice will be mailed to the mailing address designated on the account. The written disconnection notice will include:

• Customer’s name and address;
• Amount of the delinquency;
• Payment deadline to avoid termination of services;
• The process to apply for a payment extension;
• The process to petition for bill review and appeal;
• The process to apply for an amortization plan; and
• The telephone number of a City representative who can provide additional information or institute arrangements for payment.

If a customer fails to comply with an amortization plan for delinquent charges for 60 days or more, or while undertaking an amortization plan for delinquent charges, the customer does not pay his or her current residential service charges for 60 days or more, the City may discontinue water service 5 business days after it posts a final notice of intent to disconnect in a prominent and conspicuous location at the property.

a. Notice to Residential Tenants/Occupants in an Individually Metered Residence

The City will make a reasonable, good faith effort to inform the occupants, by means of written notice, when the water service account is in arrears and subject to disconnection at least 10 days before water service is shut off. The written notice will advise the 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 that address. In order for the amount due on the delinquent account to be waived, the tenant/occupant must provide verification of tenancy in the form of a rental agreement or proof of rent payments.

b. Notice to Tenants/Occupants in a Multi‐Unit Complex Served through a Master Meter

The City will make a reasonable, good faith effort to inform the occupants, by means of written notice hung on the door of each residence, when the water service account is in arrears and subject to disconnection at least 10 days before water service is shut off. The written notice will advise the tenant/occupant that they may 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 the master meter. If one or more of the occupants are willing and able to assume responsibility for the subsequent charges for water service to the satisfaction of the City, or if there is a physical means, legally available to the City, of selectively terminating service to those occupants who have not met the requirements for service, the City will make service available to the occupants who have met those requirements.

If a written disconnection notice is returned through the mail as undeliverable, the City will make a reasonable, good faith effort to visit the residence and leave a notice of discontinuance for non‐payment.

5. Forty‐Eight (48) Hour Notice of Termination. The City will make a reasonable, good faith effort to notify the customer 48 hours in advance of disconnection of water service for non‐payment. The means of notification will be a visit to the residence to leave a notice of impending termination of service (Red Tag).

6. Disconnection Deadline. All delinquent water service charges and associated fees must be received by the City’s Finance Department by 12 Noon on the date specified in the written disconnection notice.

7. Disconnection of Water Service for Non‐Payment. The City will disconnect water service by turning off and locking off, the meter. The customer will be charged a non-payment fee in the amount listed in the Master Schedule of City Fees, Fines, and Charges (Failure to Pay Delinquent Water Bill) if the customer does not pay the past due or arrears portion of their bill by noon on the date specified in the written disconnection notice.

8. Reconnection of Service. In order to resume or continue service that has been disconnected for non‐payment, the customer must pay a non-payment fee in the amount listed in the Master Schedule of City Fees, Fines, and Charges (Failure to Pay Delinquent Water Bill) and the past due or arrears portion of their bill. The City will endeavor to reconnect service as soon as practicable but, at a minimum, will restore service before the end of the next regular working day following payment of any past due amount, delinquent fees attributable to the termination of service, and a deposit for reconnection of the account if a deposit is not currently on file. Water service that is turned on by any person other than City personnel or without City authorization may be subject to fines or additional charges or fees. Any damages that occur as a result of unauthorized restoration of service are the responsibility of the customer.

9. Reconnection of Service After Business Hours. Service restored after 4:30 pm Monday through Friday, or on weekends or holidays will be charged an after‐hours reconnection fee in the amount listed in the Master Schedule of City Fees, Fines, and Charges. Service will not be restored after regular business hours unless the customer has been informed of the after‐hours reconnection fee and has agreed in writing to pay the fee after-hours reconnection fee to the City’s billing department no later than noon the following business day. The after‐hours reconnection fee is in addition to the regular reconnection fee in the amount listed in the Master Schedule of City Fees, Fines, and Charges (Failure to Pay Delinquent Water Bill) and the late charge for a past due account. City staff responding to service calls are not permitted to collect payment but will instruct the customer to contact the billing department before noon the following business day.

After-hours reconnection (Turn-on Outside Normal Working hours) fee amounts are listed in the Master Schedule of City Fees, Fines, and Charges. For residential customers who demonstrate that their household income is below 200 percent of the federal poverty line, this fee is capped at $150.

Sometimes water service is discontinued because the service is a new account and the City has not received a request to establish service. If service is being restored after regular business hours because the customer has yet to establish service, the customer must agree to contact the billing department to establish service the next business day and the after‐hours reconnection fee will be charged.

10. Notification of Disposition of Returned Check. Upon receipt of a returned check taken as payment of water service or other charges, the City will consider the account not paid. The City will make a reasonable, good faith effort to notify the customer by letter of the returned check. If valid payment is not made within 60 days following the due date, the City may discontinue water service for non-payment in accordance with this Regulation.

Water service will be disconnected if the amount of the returned check and the returned check charge are not paid on or before the date specified in the notice of termination. All amounts paid to redeem a returned check and to pay the returned check charge must be in cash, credit card, or certified funds.

11. Returned Checks for Previously Disconnected Service. In the event a customer tenders a non‐negotiable check as payment to restore water service previously disconnected for non‐payment and the City restores service, the City will visit the residence and leave a notice of termination of service 48 hours before termination of service.

Any customer issuing a non‐negotiable check as payment to restore service turned off for non‐ payment will be required to pay cash, credit card, or certified funds to restore future service disconnections for a period of 12 months from the date of the returned payment.

12. Disputed Bills. Customers may contest or appeal a bill in accordance with Napa Municipal Code section 3.04.050. Residential water service will not be shut off while an appeal is pending.

If a customer claims his or her bill is incorrect, he or she may request a review of his or her claim by the Deputy Utilities Director. If the claim is not adjusted between the customer and the manager in accordance with Utilities Department policies, he or she may request further review of his or her claim by the Utilities Director. If the customer is not satisfied with the administrative decision, he or she may appeal the decision to an administrative hearing officer in accordance with Napa Municipal Code section 3.04.050 and Chapter 1.26. The action by the hearing officer shall be final and conclusive.

13. Translations. Translations of this Regulation and all written notices issued under this Regulation are available in Spanish, Chinese, Tagalog (Filipino), Vietnamese, or Korean by visiting the City of Napa web site, www.cityofnapa.org, the Finance Department at 955 School Street, or the Utilities Department at 1700 Second Street, Suite 100.

Please visit our office or web site for a translation of this Regulation.

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