CC 2020-01-14_08d Adopt Ordinance SB 998
MEMORANDUM
TO: CITY COUNCIL
FROM: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF ADOPTION OF AN ORDINANCE AMENDING THE
MUNICIPAL CODE RELATING TO DELINQUENT WATER BILLS IN
COMPLIANCE WITH THE WATER SHUTOFF PROTECTION ACT
(SENATE BILL 998) AND ADOPTION OF A RESOLUTION REDUCING
THE ADMINISTRATIVE SERVICES DEPARTMENT WATER
RECONNECTION FEE SET FORTH IN THE MASTER FEE SCHEDULE
DATE: JANUARY 14, 2020
SUMMARY OF ACTION:
Adoption of an Ordinance amending the Municipal Code relating to delinquent water bills
in compliance with Senate Bill (SB) 998 and adoption of a Resolution reducing the
Administrative Services Department Water Reconnection Fee set forth in the Master Fee
Schedule.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There will be an impact to personnel resources as it relates to staff time for reviewing
eligibility documents submitted by customers and setting up alternative payment
arrangements. There will be a reduction in revenue of approximately $12,000 per year
due to the reduction in the fee for nonpayment of residential water service, as well as an
impact to staff time for annually reporting the number of service discontinuations for
nonpayment to the State Water Resources Control Board and posting the report on the
City website. There will also be an additional estimated cost of $1,200 to translate the
policy into five (5) languages.
RECOMMENDATION:
It is recommended that the City Council: 1) adopt an Ordinance amending Section
13.04.070 of Chapter 13.04 of Title 13 of the Arroyo Grande Municipal Code related to
delinquent water bills; and 2) adopt a Resolution reducing the Administrative Services
Department Water Reconnection Fee set forth in the Master Fee Schedule.
BACKGROUND:
On December 10, 2019, the City Council introduced an Ordinance, without modification,
amending Section 13.04.070 of the AGMC relating to delinquent water bills in compliance
with the Water Shutoff Protection Act (SB 998). The City Council also adopted a
Resolution establishing a policy on the discontinuation of residential water service for
nonpayment in compliance with SB 998.
Item 8.d. - Page 1
CITY COUNCIL
CONSIDERATION OF ADOPTION OF AN ORDINANCE AMENDING THE MUNICIPAL
CODE RELATING TO DELINQUENT WATER BILLS IN COMPLIANCE WITH THE WATER
SHUTOFF PROTECTION ACT (SENATE BILL 998) AND ADOPTION OF A RESOLUTION
REDUCING THE ADMINISTRATIVE SERVICES DEPARTMENT WATER
RECONNECTION FEE SET FORTH IN THE MASTER FEE SCHEDULE
JANUARY 14, 2020
PAGE 2
ANALYSIS OF ISSUES:
The Ordinance is now ready for adoption. The Ordinance will become effective thirty days
after final passage. Adoption of the Resolution will reduce the current water shut off fee
from $90 to $50 in compliance with the shut-off fee limitations set forth in SB 998.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Ordinance amending Section 13.04.070 of the Municipal Code relating
to delinquent water bills, and adopt a Resolution reducing the Administrative
Services Department Water Reconnection Fee set forth in the Master Fee
Schedule;
2. Modify and reintroduce the Ordinance, and adopt the Resolution; or
3. Provide other direction to staff.
ADVANTAGES:
Adoption of the Ordinance and Resolution will keep the City of Arroyo Grande current and
compliant with State law. The adoption of this Ordinance will also provide assistance to
low income water customers within the City limits.
DISADVANTAGES:
The City will not be collecting full cost recovery for performing water service shutoffs.
Extending payment terms to customers can create a situation where they become up to
4 months past due before service is shut off for non-payment.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
A summary of the Ordinance was published in The Tribune on Monday, December 16,
2019 pursuant to State law. The Agenda was posted at City Hall and on the City’s website
in accordance with Government Code Section 54954.2.
Item 8.d. - Page 2
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING SECTION 13.04.070 OF
CHAPTER 13.04 OF TITLE 13 OF THE ARROYO GRANDE
MUNICIPAL CODE RELATING TO DELINQUENT WATER
BILLS
WHEREAS, the City Council of the City of Arroyo Grande (“City”) may, by ordinance,
adopt rules and regulations for the operation of the water department and for furnishing
water to customers and may, by resolution establish the rates, charges, deposits, and
penalties; and
WHEREAS, the Water Shutoff Protection Act, codified at 116900 et seq. of the California
Health and Safety Code, requires all urban water suppliers to adopt a written policy on
the discontinuation of residential service for nonpayment; and
WHEREAS, the written policy must include a plan for deferred or reduced payments;
alternative payment schedules; a formal mechanism for a customer to contest or appeal
a bill; and a telephone number for a customer to contact to discuss options for averting
discontinuation of residential service for nonpayment; and
WHEREAS, the Water Shutoff Protection Act applies only to residential connections; and
WHEREAS, the City intends to adopt a Policy by Resolution on the Discontinuation of
Residential Water Service for Nonpayment to comply with the requirements of the Water
Shutoff Protection Act; and
WHEREAS, the City Council now wishes to amend Section 13.04.070 of its Municipal
Code to differentiate between delinquent residential accounts and nonresidential
accounts and to provide for the adoption of the City’s Policy on the Discontinuation of
Residential Water Service for Nonpayment by resolution.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES
ORDAIN AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. Section 13.04.070 of Chapter 13.04 of Title 13 of the Arroyo Grande
Municipal Code is hereby amended in its entirety to read as follows:
13.04.070 - Delinquent bills—Discontinuance of services.
A. All meters shall be read by the water department as provided in Section 13.04.100
of this chapter, and all bills for water or service shall be due and payable at City Hall
Item 8.d. - Page 3
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ORDINANCE NO.
PAGE 2
upon presentation. All water bills remaining unpaid for a period of thirty (30) days
shall thereupon become past due.
1. Non-Residential Accounts. Where water bills so become past due,
notification will be delivered of such status and a late fee levied. All water
bills remaining unpaid for a period of forty-one (41) days since issuance
shall become delinquent. Where water bills so become delinquent,
service may be shut off at any time after a ten (10) day written notice;
and such accounts shall be subject to the water turn-off and turn-on
charge provided for in this section. The director of Administrative
Services or Public Works Director, at his or her discretion, may cause a
meter reading to be made at any time; and thereupon the bill for water
used since the previous reading shall become immediately due and
payable and shall become past due on the thirtieth day following the
mailing or presentation of such bill; and such accounts shall be subject
to the late-fee charge, water turn-off and turn-on charge provided for in
Section 13.04.030 of this chapter.
2. Residential Accounts. Where water bills so become past due, residential
accounts will be handled in accordance with the City’s Policy on
Discontinuation of Residential Water Service for Nonpayment, which
shall be adopted by resolution of the City Council, as the same may be
amended from time to time.
B. Discontinuance of Service for Violations.
1. Non-Residential Accounts. The water rates, charges, and penalties set
forth in this chapter shall be charged against the property upon which
such water or service is furnished and against the owner thereof. If for
any cause, any of such sums owing become delinquent and unpaid, or if
any of the other terms of this chapter or the rules and regulations
established as a condition to the use of water are not complied with, the
water may be shut off. If there has been no bona fide change in
ownership, the water shall not be turned on to the same property until all
such charges, delinquencies and penalties have been paid in full,
including the additional amount as described in Section 13.04.030 of this
chapter for the expense of turning water off and on.
2. Residential Accounts. If any of the terms of this chapter or the rules and
regulations established as a condition to the use of water other than non-
payment are not complied with, including but not limited to those set forth
in Section 13.04.140 – Unlawful Acts, the water may be shut off. Water
may only be shut off for non-payment in accordance with the City’s Policy
on Discontinuation of Residential Water Service for Nonpayment as the
same may be amended from time to time.
3. The Administrative Services Director or Public Works Director may, at his
or her discretion, shut off the water, for a period not exceeding three
months, upon the written request of the owner of any premises upon
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ORDINANCE NO.
PAGE 3
which such water or service is furnished, provided no delinquency exists
in the payment of charges and penalties for water service.
SECTION 3. A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text
of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen
(15) days after adoption of the Ordinance, the summary with the names of those City
Council members voting for and against the Ordinance shall be published again, and the
City Clerk shall post a certified copy of the full text of such adopted Ordinance.
SECTION 4. This Ordinance shall take effect and be in full force and effect thirty (30)
days after its passage.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
On motion by Council Member ______, seconded by Council Member _______, and by
the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Ordinance was adopted this 14th day of January, 2020.
Item 8.d. - Page 5
ORDINANCE NO.
PAGE 4
___________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
____________________________________
JAMES BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
____________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.d. - Page 6
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE REDUCING THE ADMINISTRATIVE SERVICES
DEPARTMENT WATER RECONNECTION FEE SET FORTH IN THE
MASTER FEE SCHEDULE
WHEREAS, on December 11, 2007, the City Council adopted Resolution No. 4060
approving a Citywide Master Fee Schedule; and
WHEREAS, operating fees are intended to be paid by persons utilizing the program or
service and to reimburse the City for the actual cost of said program or service; and
WHEREAS, on January 14, 2020, the City Council adopted Ordinance No. ___ in
compliance with the Water Shutoff Protection Act (Senate Bill 998) and on December 10,
2019 adopted Resolution No. 4955 establishing a policy on the discontinuation of residential
water service for nonpayment; and
WHEREAS, the proposed reduction in the water reconnection fee complies with the
provisions of SB 998; and
WHEREAS, at a duly noticed public meeting, the City Council considered all verbal and
written presentations that were made regarding the proposed fee reduction.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande
hereby amends the Water Reconnection Fee set forth in the Master Fee Schedule which is
attached hereto as Exhibit A and incorporated herein by this reference as though set forth
in full.
BE IT FURTHER RESOLVED by the City Council that this Resolution shall be effective
February 1, 2020.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 14th day of January, 2020.
Item 8.d. - Page 7
RESOLUTION NO.
PAGE 2
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.d. - Page 8
FY 2019-20 Fee
Utility Fees and Penalties:
Renter's Deposit 180.00
New Utility Account Set Up Fee 40.00
Past Due Penalty (% of Past Due Total)10%
Lock Cut Replacement Fee 15.00
Reconnection Fee (Reconnect by City Personnel)90.00 50.00
Unauthorized Reconnection Fee (Reconnect by non-City Personnel)180.00
Fee Description
City of Arroyo Grande
ADMINISTRATIVE SERVICES
Fiscal Year 2019-20
MASTER FEE SCHEDULE
EXHIBIT A
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