5.1. ERMURSR 07-13-2010UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski -Finance Director/Office
John Dietz, Chair Manager
Jerry Gumphrey, Vice Chair
D 1 Thom son, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
June 13, 2010 5.1
SUBJECT:
Review and Consider De osits & Related Services Policies
BACKGROUND:
A few months ago the commission approved a change to our deposit policy (to hold until
service is terminated rather than return to the customer after three yeazs of satisfactory
payment history.) At that meeting it was stated that the policy manual of the utility
contained a Meter Deposits and Policies document that should be updated and would be
brought back to the commission to review and approve. The policies have now been
renamed (Deposits and Related Services Policies) and revised, as well as reviewed by our
attorney, Peter Beck.
DISCUSSION:
These referenced policies aze a broad overview that encompasses many individual
policies throughout the policy manual, most notable the policy for being reconnected
after being disconnected, and the deposit policy.
As mentioned, Peter Beck has reviewed these policies. Additionally, a comprehensive
review of state codes and statutes should be done to ensure alignment with the city
ordinances for maximum enforceability. Due to time constraints, this part of the review
was not able to be completed, but will be completed as soon as time allows. The approval
of these polices do not need to wait for that comprehensive review. If there is any re-
alignment to occur, it would be in the form of an ordinance to take to the City Council for
passing.
ACTION:
Staff recommends approval of attached policies.
ELK RIVER MUNICIPAL UTILITIES
OPERATION & MAINTENANCE MANUAL
6.0
DEPOSITS & RELATED SERVICES POLICIES
Effective: November l2, 2002
Adopted: November 12, 2002
Revised: June 8, 2010
TABLE OF CONTENTS
1. PROCEDURE FOR APPLYING FOR SERVICE
2. COLD WEATHER RULE /EXTREME HEAT
3. DISCONNECTION OF SERVICE
4. CUSTOMER REQUEST TO DISCONNECT
5. DISCONNECTION WITHOUT NOTICE
6. NOTICE OF DISCONNECTION OF SERVICE
7. CONDITIONS FOR RECONNECTION
OF SERVICE
8. BILLING DATES
9. BUDGET HELPER PLAN
10. CREDIT AND COLLECTION POLICIES
11. DELIQUENCY NOTICE
12. DISPUTED BILLS
13. HARDHSIP CASE
14. COLLECTION OF UNPAID ACCOUNTS
Attachments
I.Billing form
2.Delinquency form
3.Cold Weather Rule statute
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4.Disconnections During Heat Conditions statute
S.Payment arrangement agreements
6.Automatic Bill Payment form
1. PROCEDURE FOR APPLYING FOR SERVICE (for existing
facilities)
A. RESIDENTIAL SERVICE
1. The provision of utility service shall be contingent upon customer's
compliance with these policy provisions and as amended from time to
rime.
2. All applications for utility service, after the approved date of this policy,
must be made by telephone, in writing, or in person and the following
information is required:
a) Date service is required.
b) Name of person(s) responsible for service.
c) Social Security numbers and Date of Birth for all persons responsible
for service.
d) Telephone numbers, home and work.
e) Mailing address, if different than service address.
f) Garbage container size, if applicable.
g) Deposit, if necessary per Deposit Policy.
3. All of the customer's previously incurred obligations or delinquent bills to
the Elk River Municipal Utilities must be paid in full before a new service
will be set up.
4. Any residence serviced by the Elk River Municipal Utilities which has not
applied for service, after the approved date of this policy, and complied
with the requirements contained herein, shall be considered an
unauthorized user of Elk River Municipal Utilities services, and subject to
immediate disconnect without notice.
5. Anew application for service will be required any time a residence
changes owners or occupants.
6. Identification suitable to the Elk River Municipal Utilities maybe required
for any application for service.
7. Rented occupied properties shall be billed in the name of the owner and
the owner shall be liable for payment of charges if the Elk River
Municipal Utilities does not have a current tenant that has applied for
service.
B. COMMERCIAL SERVICE
1. The provision of utility service shall be contingent upon customer's
compliance with these policy provisions and as amended from time to time.
2. All applications for utility service, after the approved date of this policy,
must be made by telephone, in writing, or in person and the following
information is required:
a) Date service is required.
b) Name of person(s) responsible for service.
c) Social Security numbers and Date of Birth for all persons responsible
for service, or guarantor form signed.
d) Telephone number(s.)
e) Mailing address, if. different than service address.
f) Deposit, if necessary per Deposit Policy.
g) Service Agreement.
3. All of the customer's previously incun•ed obligations or delinquent bills to
the Elk River Municipal Utilities must be paid in full before a new service
will be set up.
4. Any business serviced by the Elk River Municipal Utilities that has not
applied for service, after the approved date of this policy, and complied
with the requirements contained herein, shall be considered an
unauthorized user of Elk River Municipal Utilities services, and subject to
immediate disconnect without notice.
5. Anew application for service and service agreement will be required any
time a commercial property changes ownership, changes tenants, or a new
or different person or business entity is requesting service to the property.
6. Identification suitable to the Elk River Municipal Utilities may be required
for any application for service.
2. COLD WEATHER RULE /EXTREME HEAT CONDITIONS
A. Elk River Municipal Utilities abides by the Cold Weather Rule as
stipulated in the state statutes Chapter No. 216B.097. The full ruling is
attached. For customers meeting the qualification requirements of the
Cold Weather Rule, ERMU will not disconnect service during the period
between October 15 and April 15.
B. Elk River Municipal Utilities abides by the Discommections During
Extreme Heat Conditions as stipulated in the state statutes Chapter No.
216B.0975. The full ruling is attached. ERMU will not disconnect
service during. an extreme heat condition as defined by the statute.
3. DISCONNECTION OF SERVICE WITH NOTICE
A. With notice, the Elk River Municipal Utilities may disconnect service
to any customer for any reason stated below.
1. Failure of the customer to pay a bill for utility service.
2. Failure of the customer to meet the Elk River Municipal Utilities
deposit and/or credit requirements.
3. Failure of the customer to make proper application for service, and,
if required, enter into a service agreement.
4. Customer's violation of any of the Elk River Municipal Utilities'
policies, rules and regulations.
5. Failure of the customer to provide the Elk River Municipal Utilities
reasonable access to its equipment and property (the Elk River
Municipal Utilities shall not allow more than two consecutive
estimated billings.)
6. Customer's breach of the agreement for service between the Elk
River Municipal Utilities and the customer.
7. When necessary for the Elk River Municipal Utilities to comply with
any order or request of any governmental authority having
jurisdiction.
8. Issuance of repeat NSF (Non-Sufficient Funds) check(s) in payment
of a bill or required deposit that brings balance to an unacceptable
amount.
4. CUSTOMER REQUEST TO DISCONNECT
A. Utility services may be disconnected upon a customer's request, provided
that said customer has an application for service or service agreement with
the Elk River Municipal Utilities in his/her/their name and is an owner of
the property for which disconnection is requested.
5. DISCONNECTION OF SERVICE WITHOUT NOTICE
A. Without notice, the Elk River Municipal Utilities may disconnect service
to any customer for any reason stated below:
1. In the event of an unauthorized use of, or tampering with, Elk
River Municipal Utilities equipment.
2. In the event of a condition determined to be hazardous to the customer,
to other customers of the Utilities, to the Utilities equipment or to the
public.
6. NOTICE OF DISCONNECTION OF SERVICE
A. Except as otherwise provided in this Policy, the Elk River Municipal
Utilities shall,. before disconnection, attempt to give the customer
reasonable advance notice of such disconnection. The nature of the notice
required and the period of time before disconnection shall be reasonable
under the particular circumstances with special consideration for the
potential dangers to life and property. The disconnection of service for any
cause shall not release the customer from any previous obligation to pay
for utilities or services received or amounts specified in the Utilities
Service Policies, or any written contract with the customer. Should a
disconnected customer fail to pay the outstanding bill within 30 days, the
bill will be subject to collection procedures.
7. CONDITIONS FOR RECONNECTION OF SERVICE
A. Any customer, residential or commercial, who is in arrears before
disconnection shall be required to post an additional deposit equal to twice
the highest monthly bill, rounded to the neazest ten dollazs.
B. Payment of any prior billing, in full, shall be made before service will be
restored.
C. Reconnection charges shall be paid before reconnection.
D. Payment of all amounts required for reconnection must be made in the
office (there will be no payments collected in the field) during the hours of
8:00 am and 3:30 pm, and only cash, money order, or credit card will be
accepted.
8. BILLING DATES
A. Bills are due and payable on the 15s' of the month. Bills become past due
on the 16s' day of the month, or the next business day. Any bill not paid by
the due date receives a penalty amount of 10% of the original billing.
B. Bills are payable at the offices of the Elk River Municipal Utilities, 13069
Orono Parkway, Elk River during normal business hours of 8:00 a.m. to
4:30 p.m., by mail, or in provided drop boxes 24 hours per day. Drop
boxes are provided outside the offices of the Elk River Municipal Utilities,
and beside the post office boxes on Railroad Drive. Automatic payment
plans are available with Bank Pay. Drop box locations may be changed
from time to time.
9. BUDGET HELPER PLAN
A. Qualified customers may, if they request and Elk River Municipal Utilities
approves, bebilled under Elk River Municipal Utilities' budget helper
plan. Such plan shall provide for 12 equal monthly payments based on the
customer's anticipated annual billing. The Elk River Municipal Utilities
will review the account at July 15`h or December 15`s to ascertain the
reasonableness of the budget under current rates or conditions of use of
service, and the monthly payment will be adjusted accordingly.
1. Budget plan is only upon request and approval by the Elk River
Municipal Utilities.
2. Budget plan requires payment through automatic bill pay.
3. Any NSF payment will negate the plan and the customer will
automatically return to standard billings.
10. CREDIT AND COLLECTION POLICIES
A. Bills Paid after the 15`h of the month are considered late and may subject
customers to additional deposit requirements.
B. Any checks given in payment for services that are returned by the bank
marked NSF, (non-sufficient funds) shall be imposed a $20.00 chazge
and/or any electronic processing fees.
11. DELINQUENCY NOTICE
A. Bills are mailed on approximately the 25`h of the month, and are due on
the 15~' of the next month. On the 16`h the bills become past due and a
penalty of 10% is added to net bill. On the 17`h day (or next business day)
a Reminder Notice/Notice of Delinquency is mailed to customers who are
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past due. The notice contains the following message, To avoid additional
charges or the inconvenience of disconnection, please contact our office
before the due date above if you aze unable to pay." It further states that no
further notice will be given. Customers are encouraged to make
arrangements for payment of their bills with the Customer Service
Representative(s). If service is disconnected there is a reconnection charge
within the normal working hours of 8:00 am - 3:30 pm Monday-Friday. If
payment is made before 3:30 pm, reconnection will occur that day. No
reconnects are done after 3:30 pm.
12. DISPUTED BILLS
A. A customer who disputes the amount of his hill or is unable to pay the full
amount of the bill due to temporary financial difficulties shall have the
right to an informal conference with the Customer Service Representative
in the Elk River Municipal Utilities offices on business days, during
normal working hours. Said employee shall have the authority to make
arrangements with the customer for the deferred payment schedule of that
bill, and shall also have the authority to review and recommend
adjustments concerning the amount of the bill.
13. HARDSHIP CASE AND TEMPORARY FINANCIAL DIFFICULTIES
A. The Customer Service Representative will make every effort to arrange a
reasonable and feasible deferred payment program for a customer with a
legitimate financial difficulty. Size of the delinquent account, the time the
bill has been overdue and other relevant credit factors presented by the
customer will be considered.
1. In evaluating whether the financial difficulties of a particular customer
aze "temporary", the Customer Service Representative may consider
the past credit history of the customer as well as other appropriate
factors. For example, a customer who has been financially unable to
pay a bill on previous occasions may be considered a repetitive credit
risk and said customer's financial difficulties may not be considered to
be temporary and service may be disconnected.
14. COLLECTION OF UNPAID ACCOUNTS
A. The Elk River Municipal Utilities may employ any and all reasonable
methods for collecting unpaid accounts, including assignment to collection
agencies, or legal actions against the delinquent customer. If the Elk River
Municipal Utilities believes a customer is insolvent, is in financial
difficulty or considering banlavptcy, the Utilities may take appropriate
action to secure payment of previous and present charges for utilities
(water and electric) services. Such action may include obtaining an
adequate security deposit, collecting payment on a weekly basis, or other
such actions as may be deemed necessary and reasonable under the
circumstances.
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