5.2. ERMUSR 03-18-2003 Elk River
Municipal Utilities
322 King Avenue phone: 763.441.2020
Elk River,MN 55330
Fax.763 441 8099
February 24, 2003
To: Elk River Municipal Utilities Commission
James Tralle
John Dietz
Jerry Takle
From: Bryan C. Adams
Subject: Penalty On Delinquent Bills
Section 11 of our"Meter Deposits and Related Services Policies" states:
11. DELINQUENCY NOTICE
Bills are mailed on the 25th of the month, due on the 15th 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 17th day a Notice of Delinquency is mailed to customers who are past due.
The notice contains the following message, "Please contact our office if you are
not making payment, to avoid further charges and inconvenience due to
disconnection." 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. If service is disconnected there is a $20.00
reconnection charge within the normal working hours of 8:00 a.m. —4:30 p.m.
Monday-Friday. The reconnection charge after normal working hours is $100.00.
Reconnection will only occur before 8:00 p.m.
It has been this commissions position that the 10% penalty should not apply to churches,
and staff has carried out this policy as such.
One of our churches continues to exhibit payment difficulties. Attached is a letter dated
6-9-00 addressing this churches' difficulties in paying. This letter corrected the problem
for a short period of time, but now they are slipping into their old payment patterns. In
the last 12 months, this church has made it's payment on time only once. This church has
3 separate accounts; church, parish house, and staff house.
No other church in our service area is late in their monthly utility payments. Does this
commission desire to continue the policy of not charging a 10% penalty to churches for
late payments?
June 9`h, 2000
Mr. Kyle Smith
Solid Rock Church
11820 - 196th Ave NW
Elk River, MN 55330
Subject: Payment Delinquencies
Dear Mr. Smith:
Solid Rock Church has three electric utility accounts with the Elk River Municipal
Utilities (ERMU). There has been an unpleasant history of poor payment of these
electric bills on your part. On June 8`h, 2000, you paid your April invoices just as the
power was being disconnected from your facility.
If Solid Rock Church desires the convenience of uninterrupted electrical service, timely
payment of your monthly utility bill is required. For instance, the April bill which is
mailed to you on approximately April 25th reflects March consumption. This April bill is
payable no later than May 15`h. Delinquent notices are mailed May 17th with shut off to
take place on May 22nd if payment is not received or special payment arrangements are
not made. After disconnection notices and numerous discussions regarding disconnect,
you have made special payment arrangements but failed to follow through. Payments
made after the 15th of the month due date are subject to a 10% penalty. Our Utility
Commission has elected to forego this penalty for churches, but this may be reconsidered
if this payment pattern continues.
Due to your past payment history, the special treatment Solid Rock Church has received
from ERMU can no longer continue. We will expect in the future your utility payments
will be made on time.
Best Regards,
Bryan C. Adams P.E.
General Manager
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