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AGENDA ITEM REVIEW FORM |
2.L.
Work Session
- Meeting Date:
- 08/05/2020
- Department Head:
- Jorge Perez
- Submitted By:
- Jorge Perez, Billing & Collections Manager, Finance Department, Billing & Collections
Action Requested:
Discussion Item - No Action to be Taken
ITEM:
Discussion and possible directions to staff on any and all matters regarding the temporary suspension of the imposition of a late penalty fee, including shut-off fees on utility accounts during the period of emergency due to the Coronavirus (COVID-19) pandemic. (Jorge Perez, Billing & Collections Manager)
SUMMARY:
Back in April of this year, City Council approved and adopted Resolution No. 2127. A resolution of the Mayor and City Council of the City of San Luis, Arizona, suspending imposition of late penalty charge on water utility accounts; suspending shut-offs of water service for non-payment; and suspending imposition of shut-offs fee due to the declared COVID-19 emergency.
This resolution states that water utility services shall not be discontinued nor penalty charges be imposed on utility accounts for late payment on or after March 13, 2020, until the emergency proclamations of the City of San Luis issued as a result of the COVID-19 virus pandemic shall terminate on September 1, 2020, whichever first occurs.
At this point, we are approximately a month away from the expiration of this resolution, and the COVID-19 pandemic continues to be a public health concern. Social distancing continues to be our best tool, along with the use of the appropriate PPE and face coverings.
Since the first declaration of emergency in March of this year, the number of delinquent accounts each month has quadrupled in comparison to pre-pandemic months. We understand the needs during these difficult times and that there are constituents that are struggling financially. Thus, we would like the Council’s guidance and direction on how to proceed with this matter.
This resolution states that water utility services shall not be discontinued nor penalty charges be imposed on utility accounts for late payment on or after March 13, 2020, until the emergency proclamations of the City of San Luis issued as a result of the COVID-19 virus pandemic shall terminate on September 1, 2020, whichever first occurs.
At this point, we are approximately a month away from the expiration of this resolution, and the COVID-19 pandemic continues to be a public health concern. Social distancing continues to be our best tool, along with the use of the appropriate PPE and face coverings.
Since the first declaration of emergency in March of this year, the number of delinquent accounts each month has quadrupled in comparison to pre-pandemic months. We understand the needs during these difficult times and that there are constituents that are struggling financially. Thus, we would like the Council’s guidance and direction on how to proceed with this matter.
RECOMMENDATION / SUGGESTED MOTION:
Discussion and possible direction to staff only, not an action item.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The fiscal impact is unknown, and will be determined by the amount of customers that fall behind on their utility bill that will not be charged the additional penalty fee.