4.1 ERMUSR 05-08-2018 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Jennie Nelson—Customer Service Manager
MEETING DATE: AGENDA ITEM NUMBER:
May 8, 2018 4.1
SUBJECT:
Multi-Billing Cycle Grace Period
ACTION REQUESTED:
Approve the revised Service Policies Policy
BACKGROUND:
In January 2018, ERMU changed from one billing cycle to four, which resulted in customers'
due dates potentially fluctuating by a few days depending on how many days were in that month.
Currently,penalties are applied the next day following the due date.
DISCUSSION:
Staff recognizes that the due date change was a difficult change for some customers and is
recommending implementing a grace period of up to 6 days after the due date before applying
penalties. The proposed change is reflected in the attached draft.
ATTACHMENTS:
• Revised ERMU Policy—A.1 — Service Policies
Page 1 of 1
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Elk River
Municipal Utilities
A.1—Service 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 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 provided.
4) Any residence serviced by ERMU which has not applied for service 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 or occupants.
6) Identification suitable to ERMU may be required for any application for service.
7) Unoccupied 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.
B) COMMERCIAL SERVICE
1) The provision of utility service shall be contingent upon customer's compliance
with these policy provisions as amended from time to time.
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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 new service will be provided.
4) Any business serviced by ERMU that has not applied for service 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) 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.
2.0 Billing Due Dates
A) ERMU has four billing cycles. Each cycle is billed one time per month. Bills are due
on the due date specified on the bill,which will be approximately 20 days after the
bill is generated.
B) Bills are payable at the offices of ERMU located at 13069 Orono Parkway in Elk
River during 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,north of the post office. Drop box locations
may be changed from time to time. Automatic payment plans are available with
Bank Pay.
3.0 Penalties and Delinquent Notices
A) Bills are considered late the next business day following the due date_;at which time
An penalty of 10%of the original bill amount is added to the account. A Reminder
Notice/Notice of Delinquency is generated the same day penalties are assessed. A
grace period of up to 6 days may apply.
B) Any check given in payment for services that is returned by the bank marked NSF
(Non-Sufficient Funds), will be subject to a NSF fee per the ERMU fee schedule.
The NSF fee will be added to the account.
C) Customers will be subject to additional deposit requirements after having late
payments.
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4.0 Budget Plan
A) Customers that have one year's worth of timely payment history at their current
location can request to be put on a budget payment plan.
B) Budget payments are due on the due date specified in the bill.
C) Budget payments will be equal to 1/12 of the customer's prior years' average utility
bill plus five percent.
D) 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.
E) The following criteria must be met in order to qualify for and remain in the budget
program:
1) Customer must submit a signed and dated application form for approval by
ERMU.
2) Customer must have a payment history with ERMU of at least 12 consecutive
timely payments.
3) Budget customers must be enrolled in the "automatic bill payment"program.
4) Customer account status must be at a zero balance prior to starting a budget
payment plan.
5) Budget payment plans 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.
5.0 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 a Customer Service Representative in the ERMU office on business
days, during normal working hours. Said employee shall have the authority to make
arrangements with the customer on a deferred payment schedule of that bill, and
shall also have the authority to review and recommend adjustments concerning the
amount of their bill.
6.0 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.
7.0 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.
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4) Customer's violation of any ERMU policies, rules and regulations.
5)Failure of the customer to provide ERMU reasonable access to ERMU's meters or
other equipment and property(ERMU shall not allow more than two consecutive
estimated billings).
6) Customer's breach of an 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) Issuance of repeat NSF check(s) in payment of a bill or required deposit.
9) Failure to pay all amounts due on an account, including any miscellaneous
receivables invoice.
8.0 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. 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.
9.0 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, ori to the public.
1a0 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.
B)Any customer, residential or commercial, who is in arrears before disconnection shall
be required to post an additional deposit per the Deposit Policy.
C)Payment of all amounts due to ERMU, including disconnect and reconnect trip
charges, shall be made in full before service will be restored.
D)Payment of all amounts required for reconnection must be made in the office or
online. Only cash,money order, or credit cards will be accepted. There will be no
payments collected by field staff.
11.0 Hardship Case and Temporary Financial Difficulties
A) ERMU Customer Service Representatives will make every effort to arrange
reasonable and feasible deferred payment programs for 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.
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12.0 Cold Weather Rule/Extreme Heat Conditions
A) ERMU abides by the Cold Weather Rule as stipulated in Minnesota statutes Section
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 Minnesota statutes Section 216B.0975. ERMU will not disconnect service during
an extreme heat condition as defined by the statute.
13.0 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, ERMU may take appropriate action to secure payment of
previous and present charges for 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.
Adopted November 12, 2002
Revised July 13, 2010
Revised October 8, 2013
Revised June 14, 2016
Revised November 14, 2017
Revised May 8,2018
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