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5.2. ERMUSR 06-14-2016 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Jennie Nelson—Customer Service Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: June 14th 2016 5.2 SUBJECT: Deposits and Related Services Policies BACKGROUND: At the May commission meeting,the commission directed staff to revise the Deposits and Related Services Policies. There is a section about the disconnect/trip charge and the commission wanted the language strengthened to clarify the timeframe in the disconnect/reconnect process that the fee will be incurred. DISCUSSION: Staff worked with legal counsel to revise the disconnect/trip charge section clarifying that the $50 fee will be charged at the time the disconnect list is prepared. Other minor changes were also made to the policy. ACTION REQUESTED: Staff recommends approving the revised Deposits and Related Services Policies. ATTACHMENT: • Proposed Deposits and Related Services Policies Eg PONEIEO IT Page 1 of 1 NATURE Reliable Public Power Provider P O W E R E D T o S ERV E 287 Elk River -�-1 Municipal Utilities A.1 —Deposits & Related Services Policies 1.0 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 time. 2) All applications for utility service; made after the approved date of this policy; must be made by telephone, in writing, electronically, 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 (ERMU) must be paid in full before a new service will be setprovided. 4) Any residence serviced by ERMU which has not applied for service, after tho approvede-of as required by this policy, and complied with the requirements contained herein, shall be considered an unauthorized user of ERMU services; and subject to immediate disconnect without notice. 5) A new application for service will be required any time a residence changes owners orand occupants. 6) Identification suitable to ERMU may be required for any application for service. 7) Rented occupiedUnoccupied rental properties and rental properties without a current ERMU account in the name of a tenant shall be billed in the name of the owner and the owner shall be liable for payment of charges_ ' _'_ - . .- . - . -• -• 7) 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. 288 2) All applications for utility service;made after the approved date of this policy, must be made by telephone, in writing, electronically, 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 numbers(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 incurred obligations or delinquent bills to ERMU must be paid in full before-a new service will be provided. set up. 4) Any business serviced by ERMU that has not applied for service, e approved date of as required by this policy, and complied with the requirements contained herein, shall be considered an unauthorized user of ERMU services;and subject to immediate disconnect without notice. 5) A new 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 ERMU may be required for any application for service. 7) Rented-essupied Unoccupied commercial rental properties and commercial properties without a current ERMU account shall be billed in the name of the owner and the owner shall be liable for payment of charges, - '_ _ . ._ . _ . ..- _• _•. that has applied for service. 2.0 Cold Weather Rule/Extreme Heat Conditions A) ERMU abides by the Cold Weather Rule as stipulated in the-stateMinnesota statutes Chapter NoSection- 216B.097. For customers meeting the qualification requirements of the Cold Weather Rule, ERMU will not disconnect service during the period between October 15th and April 15th B) ERMU abides by the Disconnections During Extreme Heat Conditions as stipulated in the statcMinnesota statutes Chapter NoSection-216B.0975. ERMU will not disconnect service during an extreme heat condition as defined by the statute. 3.0 Disconnection of Service with Notice A)With notice, ERMU 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 ERMU's 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 the ERMU policies, rules and regulations. 289 5)Failure of the customer to provide ERMU reasonable access to itsERMU's meters or other equipment and property(ERMU shall not allow more than two consecutive estimated billings). 6) Customer's breach of the agreement for service between ERMU and the customer. 7) When necessary for ERMU to comply with any order or request of any governmental authority having jurisdiction. 8) 8)Issuance of repeat NSF (Non-Sufficient Funds) check(s) in payment of a bill or required deposit. S)9) Failure to pay all amounts due on an account, including any miscellaneous receivables invoice. 4.0 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 ERMU in his/her/their name and is an owner of the property for which disconnection is requested. 5.0 Disconnection of Service without Notice A)Without notice, ERMU may disconnect service to any customer for any reason stated below: 1) In the event of an unauthorized use of, or tampering with, ERMU's equipment. 2) In the event of a condition determined to be hazardous to the customer, to the equipment, or to the public. 6.0 Notice of Disconnection of Service A)Except as otherwise provided in this Policy, ERMU 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 Ddisconnection of service for any cause shall not release than 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. 7.0 Conditions for Reconnection of Service A) —If a customer is placed on ERMU's list for disconnection,the ERMU disconnect/trip charge will apply and be due. Management can remove the charge at their discreetion. BA)Any customer,residential or commercial, who is in arrears before disconnection shall be required to post an additional deposit :- .. - •- .• - • , rounded to the nearest ten dollars. per the Deposit Policy. 14C) Payment of all amounts due to ERMU, including disconnect and reconnect trip charges, any prior billing shall be made in full before service will be restored. C)Reconnection charges shall be paid before reconnection. 13D) Payment of all amounts required for reconnection must be made in the office or 290 oOnline_;Oenly cash, money order, or credit cards will be accepted. There will be no payments collected by field staff. 8.0 Billing Dates A) Bills are due and payable on the 15th of the month. Bills become past due on the 16th day of the month, or the next business day. Any bill not paid by the due date reeeives will be charged a penalty amount equal toef 10%of the original billing. B) Bills are payable at the offices of ERMU located at 13069 Orono Parkway in Elk River during the normal business hours of 8:00 a.m. to 1:30 p.m.regular business hours, by mail, online, or in provided drop boxes 24 hours per day. Drop boxes are provided outside the ERMU office and beside the post office boxes located off Freeport Street in the strip mall parking lot, north of the post office. Drop box locations may be changed from time to time. Automatic payment plans are available with Bank Pay. 9.0 Budget Plan A) Customers that have a year's worth of history at their current location can request to be put on the budget payment plan. Budget payments will be due on the 15th of each month and will be 12 equal monthly payments based on the customers' previous utility history. ERMU will review all accounts on an annual basis to ascertain the reasonableness of the budget under current rates or conditions of use of service, and the monthly payment will be adjusted accordingly. The following criteria must be met in order to qualify for the budget program_,- 1) The budget payment plan is available upon request, along with a signed and dated application form and approval by ERMU. 2) Budget customers are required to be enrolled in the "automatic bill payment" program. 3) Account status must be at a zero balance prior to starting the budget payment plan. 4) If at any time a payment is unable to clear your bank account for any reason(NSF), this will result in the cancellation of the budget payment plan and automatic bill payment. The Budget Payment Plan and automatic bill payment will be cancelled, effective immediately, if any payment made is unable to clear the bank for NSF or any other reason. 10.0 Credit and Collection Policies A) Bills paid after the 15th of the month are considered late and may subject customers to additional deposit requirements. B)Any checks given in payment for services that arois returned by the bank marked NSF, • •- -- . !.!! -• - • • • - - . - - •• •- .a NSF fee per the ERMU fee schedule will be added to the account. 11.0 Delinquency Notice A) Bills are mailed on approximately the 25th of the month, and are due on the 15th of the next month. On the 16th the bills become past due and a penalty of 10% is added to net bill. On the 17th day(or next business day) a Reminder Notice/Notice of Delinquency is mailed to customers who are past due. The notice contains the 291 following message, "To avoid additional charges or the inconvenience of pay." It also 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 per ERMU fee schedule. If payment is made before 3:00 p.m., reconnection will occur that day. No reconnects are done after 3:00 p.m. 12.0 Disputed Bills A)A customer who disputes the amount of their bill 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 a Customer Service Representative in the Elk River Municipal UtilitiesERMU offices on business days, during normal working hours. Said employee shall have the authority to make arrangements with the customer onr the deferred payment schedule of that bill, and shall also have the authority to review and recommend adjustments concerning the amount of their bill. 13.0 Hardship Case and Temporary Financial Difficulties A)The ERMU Customer Service Representatives will make every effort to arrange-a reasonable and feasible deferred payment programs for-a customers 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 aro "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. 14.0 Collection of Unpaid Accounts A)ERMU may employ any and all reasonable methods for collecting unpaid accounts, including assignment to collection agencies, or legal actions against the delinquent customer. If ERMU believes a customer is insolvent, is in financial difficulty or considering bankruptcy, the UtilitiesERMU 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. B) ERMU may provide a list of unpaid fees, charges and costs charged to a property and unpaid for 30 days after the due date to the City Clerk with a request that the unpaid amounts be certified by the City Clerk to the County for collection with real estate taxes, as authorized by Minnesota Statutes and the City of Elk River Code of Ordinances. 292 Effective: November 12,2002 Adopted= November 12,2002 Revised= July 13,2010 Revisedri Revision: October 8,2013 Revised June 14,2016 293