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AGENDA ITEM REVIEW FORM |
6.F.
Regular City Council Meeting
- Meeting Date:
- 08/26/2020
- Department Head:
- Jorge Perez
- Submitted By:
- Jorge Perez, Billing & Collections Manager, Finance Department, Billing & Collections
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2138. A resolution of the Mayor and Council of the City of San Luis, Arizona, temporarily suspending imposition of a late penalty charge on water utility accounts; temporarily suspending shut-off of water service for non-payment; and temporarily suspending imposition of shut-off fee due to declared COVID-19 virus emergency; repealing any conflicting provisions; providing for severability; and declaring an emergency. (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.
The aforementioned resolution states that water utility services shall not be discontinued nor penalty charges are 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 or September 1, 2020, whichever occurs first.
At this point, 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 personal protective equipment (PPE).
Since the first declaration of emergency in March of this year, the number of delinquent accounts each month had quadrupled in comparison to pre-pandemic months. Thus, Resolution No. 2138 extends the suspension of imposition of late penalty charge on water utility accounts; suspending shut-offs of water service for non-payment; and suspending imposition of shut-offs fees until the emergency proclamation of the City of San Luis issued as a result of the COVID-19 virus pandemic shall terminate or November 1, 2020, whichever occurs first.
Resolution No. 2138 also provides for a ceiling on delinquent amounts owed to the city on water utility accounts past November 1, 2020. After this date, customers with delinquent balances over two hundred dollars ($200.00) will be required to bring balances below this sum, pay all monthly bills regularly beginning with the November billing, and agree to a payment plan and payment schedule to retire the past due amount prior to June 30, 2021. This deferment program shall terminate on June 30, 2021.
The ceiling limit on delinquent amounts owed to the city was set at two hundred dollars ($200.00) considering that this is the deposit amount required to utility customers. In the event that customers terminate their accounts, past due amounts will be covered by the security utility deposit previously collected on their accounts.
The aforementioned resolution states that water utility services shall not be discontinued nor penalty charges are 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 or September 1, 2020, whichever occurs first.
At this point, 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 personal protective equipment (PPE).
Since the first declaration of emergency in March of this year, the number of delinquent accounts each month had quadrupled in comparison to pre-pandemic months. Thus, Resolution No. 2138 extends the suspension of imposition of late penalty charge on water utility accounts; suspending shut-offs of water service for non-payment; and suspending imposition of shut-offs fees until the emergency proclamation of the City of San Luis issued as a result of the COVID-19 virus pandemic shall terminate or November 1, 2020, whichever occurs first.
Resolution No. 2138 also provides for a ceiling on delinquent amounts owed to the city on water utility accounts past November 1, 2020. After this date, customers with delinquent balances over two hundred dollars ($200.00) will be required to bring balances below this sum, pay all monthly bills regularly beginning with the November billing, and agree to a payment plan and payment schedule to retire the past due amount prior to June 30, 2021. This deferment program shall terminate on June 30, 2021.
The ceiling limit on delinquent amounts owed to the city was set at two hundred dollars ($200.00) considering that this is the deposit amount required to utility customers. In the event that customers terminate their accounts, past due amounts will be covered by the security utility deposit previously collected on their accounts.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO ADOPT AND APPROVE RESOLUTION NO. 2138 AS PRESENTED.
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.
Suspending late charges is not giving away free water. The regular charges, which are set on the cost to provide service, remain in full force.
Suspending late charges is not giving away free water. The regular charges, which are set on the cost to provide service, remain in full force.