(A) Policy. Under the holdings in a State Court of Appeals case, the city is required to follow the termination procedure set forth in the Cal. Public Utilities Code Division 5, §§ 10001 et seq., governing the operation of utilities owned by municipal corporations, specifically including charter cities. The procedures set forth herein comply with the minimum statutory requirements set forth in Cal. Public Utilities Code §§ 10010 and 10010.1, and SB 998, the Water Shutoff Protection Act (Cal. Health and Safety Code §§ 116900 et seq.).
(B) Disconnection of residential water service for nonpayment. If the delinquent customer does not make the required payment, request an appeal or request a payment agreement for the unpaid charges, water service shall be terminated on the date specified in the final notice. The date of discontinuation of service shall be at least 60 calendar days from the date on the initial bill and at least seven business days from the date of the final notice.
(C) Discontinuation of residential water service for nonpayment prohibited. Discontinuation of residential water service for nonpayment is prohibited in the following instances:
1. While an appeal is pending;
2. During a pending investigation by the city of a customer complaint;
3. When the customer has been granted an extension of the period for payment of a bill; or
4. When there exists a primary care provider certification of threat to life or serious threat to health and safety of a resident of premises, including:
(a) The customer, or a tenant of the customer, submits the certification of a primary care provider that discontinuation of residential service would be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises and where residential service is provided;
(b) (1) The customer demonstrates that he or she is financially unable to pay for the service within the normal billing cycle, and the customer is willing to enter into an amortization agreement, alternative payment schedule, or a plan for deferred or reduced payment with respect to all delinquent charges.
(2) The customer is deemed financially unable to pay for residential service within the normal billing cycle if any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, a supplemental security income/state supplementary payment program, or a state special supplemental nutrition program for women, infants and children, or the customer declares that the household’s annual income is less than the 200% federal poverty level.
(c) If the conditions of (C)4.(b)(1) and (C)4.(b)(2) above are met, the city shall offer one of the following:
(1) Amortization of the unpaid balance;
(2) Participation in an alternative payment schedule;
(3) A partial or full reduction of the unpaid balance financed without additional charges to other rate payers;
(4) Temporary deferral of payment;
(5) The city may choose which of the payment options the customer may undertake and set parameters for that payment option with repayment within 12 months unless a longer period is necessary to avoid undue hardship to the customer based upon the circumstances of the individual case;
(6) Service may be disconnected no sooner than five business days after a final notice is posted in a prominent and conspicuous location at the property under either of the following circumstances:
a. The customer fails to comply with an amortization agreement, an alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges for more than 60 days or more; or
b. While undertaking an amortization agreement, an alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges, the customer does not pay his or her current residential service charges for 60 days or more.
(7) On any Saturday, Sunday, legal holiday or at any time which the Finance Department office is not open to the public.
(D) Multi-unit or multi-tenant residential structures.
1. Multi-unit or multi-tenant residential structures or mobilehome parks where water service is provided through a master meter will be held to the same delinquency process as the single residential customers.
2. Multi-unit customers will receive all three past due and termination/discontinuation of service notices. The Public Works Department shall post an additional notice of delinquency and impending termination on the door of each residential occupant at least 15 days prior to actual termination.
3. If it is not reasonable or practicable to post the notice on the door of each residential unit under (D)2. above, the Public Works Department shall post five copies of the notice of delinquency and impending termination in each accessible common area and at each point of access to the structure or structures.
4. The notice of delinquency and impending termination for multi-unit and multi-tenant residential structures or mobilehome parks shall further include the following information:
(a) When the account is in arrears;
(b) The service will be terminated on the specified date;
(c) The residential occupants may become customers, and, if so, the occupants will be billed for water services. To do so, the occupants must agree to the terms and conditions of service and meet the requirements of the city’s rules and tariffs;
(d) The occupants will not be required to pay the delinquent amount;
(e) What the residential occupants are required to do to prevent termination or reestablish the service;
(f) The title, address and telephone number of a representative of the Finance Department who could assist the residential occupants in continuing service; and
(g) The address and telephone number of a legal services project recommended by the local county bar association.
5. Residential water service may be discontinued no sooner than seven business days after the city posts a final notice of intent to disconnect service in a prominent and conspicuous location of the property under either of the following circumstances:
(a) The customer fails to comply with the alternative payment schedule for the delinquent charges for 60 days or more; or
(b) While undertaking the alternative payment schedule, the customer does not pay his or her current residential charges for 60 days or more.
6. Any residential customer who has initiated a complaint, requested an appeal or made a request for a payment agreement shall be given the opportunity for review of said complaint, investigation or payment agreement by the Finance Department.
7. The review under (D)6. above shall include consideration of whether the customer shall be permitted to start a payment agreement of the delinquent balance of the account over a reasonable period of time, not to exceed 12 months.
8. No termination of service shall be effected for any customer complying with the payment agreement, provided that the customer also keeps the account current as charges accrue in each subsequent billing period.
(E) Restoration of service. In order to restore terminated service, a service fee up to $75 must be paid. If a deposit is not currently on the account, a three-month security deposit may be required.
(F) Options to avert discontinuation of residential water service. In order to assist customers in averting the discontinuation of residential water service, the city is willing to discuss the following options:
1. Alternative payment schedules;
2. Deferred payments;
3. Minimum payments; and/or
4. Amortization of unpaid balances.
(Ord. 576, passed 12-16-2008; Ord. A-33, passed 2-1-2020)
Editor’s note:
Any update to the United States Code or other state or federal regulations that impact the provisions and enforcement this section shall be implemented automatically upon passage and approval.
Statutory reference:
Related provisions, see California Apartment Association v. City of Stockton (2000) 80 Cal., App. Fourth 699