R 4955 RESOLUTION NO. 4955
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ESTABLISHING A POLICY ON THE
DISCONTINUATION OF RESIDENTIAL WATER SERVICE
FOR NONPAYMENT IN COMPLIANCE WITH THE WATER
SHUTOFF ACT (CALIFORNIA HEALTH AND SAFETY
CODE SECTIONS 116900 ET. SEQ.)
WHEREAS, on September 28, 2018 the Governor of the State of California approved
Senate Bill 998 (SB 998) pertaining to the discontinuation of residential water service for
urban and community water systems; and
WHEREAS, SB 998 was added to Chapter 6 (commencing with Section 116900) of the
California Health and Safety Code; and
WHEREAS, SB 998 requires urban water suppliers to have a written policy on the
discontinuation of residential water service (shutoff) and provide that policy in English, the
languages listed in Section 1632 of the Civil Code (Spanish, Chinese, Tagalog,
Vietnamese, and Korean), and any other language that is spoken by at least 10% of the
people residing in the City's service area; and
WHEREAS, SB 998 prohibits discontinuation of water service until a bill has been
delinquent for 60 days and provides for a process to work through hardship situations;
and
WHEREAS, SB 998 prohibits shutoff for nonpayment if all of the following conditions are
met: (1) the customer, or tenant, submits a certification of a primary care provider that
discontinuation of residential service will be life threatening or pose a serious threat to the
health and safety of a resident, (2) the customer demonstrates that he or she is financially
unable to pay within the normal billing cycle, and (3) the customer is willing to enter into
an amortization agreement, alternative payment schedule, or plan for deferred or reduced
payment for all delinquent charges; and
WHEREAS, SB 998 requires the water supplier to provide information on how to restore
residential service and petition for a waiver of reconnection fees; and
WHEREAS, SB 998 requires the water supplier to waive reconnection fees and offer a
reduction or waiver of interest on delinquent bills once every 12 months for a residential
customer who shows an income below 200% of the federal poverty line; caps
reconnection fees at $50 or less if the reconnection is during normal water system
operational hours; caps reconnection fees at $150 or less if the reconnection is during
non-operational hours, with the applicable reconnection fee not to exceed the actual cost
of reconnection; and
RESOLUTION NO. 4955
PAGE 2
WHEREAS, SB 998 requires the water supplier to make every good faith effort to inform
a tenant by written notice when the owner's account is in arrears and service is going to
be terminated, and requires continued service if the tenant assumes responsibility to the
satisfaction of the water supplier; and
WHEREAS, SB 998 authorizes the California State Water Resources Control Board to
enforce the requirements and the Attorney General to bring an action for temporary or
permanent injunction; and
WHEREAS, SB 998 has other requirements relating to notices, website information, and
reporting requirements; and
WHEREAS, it is in the public interest and the right of all Californian's to have safe,
accessible and affordable water as declared in Section 106.3 of the California Water
Code.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
1. The recitals set forth above are true and correct and incorporated herein.
2. The Policy attached as Exhibit A entitled "Discontinuation of Residential Water Service
for Nonpayment," is hereby adopted.
3. The effective date of the Policy is February 1, 2020.
On motion by Council Member Paulding, seconded by Council Member Storton, and on
the following roll call vote, to wit:
AYES: Council Members Paulding, Storton, George, Barneich, and Mayor Ray Russom
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 10th day of December, 2019.
RESOLUTION NO. 4965"
PAGE 3
tor
CAREN RAY ' .SOM, MAYOR
ATTEST:
411)0`-KELLY ET RE, CITY CLERK
APPROVED AS TO CONTENT:
'iE
JAMES A. , CITY MANAGER
APPROVED AS TO FORM:
'i
TI HY J. ARMEL, CITY ATTORNEY
EXHIBIT A
CITY OF ARROYO GRANDE
POLICY ON DISCONTINUANCE OF RESIDENTIAL WATER SERVICE
1. Purpose
This policy has been established to comply with Senate Bill 998, known as the "Water Shutoff
Protection Act" and approved by the Governor on September 28, 2018 (California Health and
Safety Code Sections 116900, et seq.). This Policy shall be made available on the City of Arroyo
Grande website. The City's Water Department can be contacted by phone at (805) 473-5438 to
discuss options for averting termination of water service for nonpayment under the terms of this
policy.
2. Effective Date
This policy shall be effective on February 1, 2020.
3. Published Languages
This policy and written notices required in this policy shall be available and published in English,
the languages listed in Section 1632 of the Civil Code, which include Spanish, Chinese, Tagalog,
Vietnamese, and Korean, and any other language spoken by at least 10 percent of the people
residing in the City's water service area.
4. Requirements Precedent to Discontinuing Residential Water Service
A. The City shall not discontinue residential water service for nonpayment until a customer has
been delinquent for at least 60 days. No less than seven business days before discontinuation
of residential water service for nonpayment, the City shall contact the customer named on the
account by telephone or written notice.
B. When the City contacts the customer named on the account by telephone pursuant to
subparagraph (A), staff shall offer to provide this policy in writing to the customer. City staff
shall offer to discuss options to avert discontinuation of water service for nonpayment,
including, but not limited to, alternative payment schedules, deferred payments, minimum
payments, procedures for requesting amortization of the unpaid balance, and petition for bill
review and appeal.
C. When the City contacts the customer named on the account by written notice pursuant to
subparagraph (A), the written notice of payment delinquency and impending discontinuation
shall be mailed to the customer at their address of record. If the customer's address is not the
address of the property to which residential water service is provided, the notice shall also be
sent to the address of the property to which residential water service is provided, addressed
to "Current Resident." The notice shall include, but is not limited to, all of the following
information in a clear and legible format:
(i) The customer's name and address.
(ii) The amount of the delinquency.
(iii) The date by which payment or arrangement for payment is required in order to avoid
discontinuation of residential water service, which shall be 60 days from the date that the
bill became delinquent unless extended by the discretion of the General Manager.
(iv) A description of the process to apply for an extension of time to pay the delinquent
charges.
(v) A description of the procedure to petition for bill review and appeal.
(vi) A description of the procedure by which the customer may request a deferred, reduced,
or alternative payment schedule, including an amortization of the delinquent residential
water service charges.
(vii) The City's phone number and a web link the City's written policy.
5. Good Faith Noticing Requirements
A. If the City is unable to make contact with the customer or an adult occupying the residence by
telephone, and written notice is returned through the mail as undeliverable, the City shall make
a good faith effort to visit the residence and leave, or make other arrangements for placement
in a conspicuous place of, a notice of imminent discontinuation of residential water service for
nonpayment and the City's policy for discontinuation of residential water service for
nonpayment.
B. If the customer seeks review or appeal of their bill, the customer shall contact the City before
the payment due date and the City will investigate. If the investigation does not result in a
resolution acceptable to the customer, the customer may seek review of the Director of
Administrative Services and subsequently may appeal to the City Council. The City will provide
written notice of the time and place of the appeal at least seven (7) days before the City Council
meeting. The decision of the City Council is final. The City shall not discontinue residential
water service while the appeal is pending.
6. Prohibition Against Discontinuing Residential Water Service
A. The City shall not discontinue residential water service for nonpayment if all of the following
conditions are met:
(i) The customer, or a tenant of the customer, submits to the City the certification of a primary
care provider, as that term is defined in subparagraph (A) of paragraph (1) of subdivision
(b) of Section 14088 of the Welfare and Institutions Code, that discontinuation of
residential water service will be life threatening to, or pose a serious threat to the health
and safety of, a resident of the premises where residential water service is provided.
(ii) The customer demonstrates that he or she is financially unable to pay for residential water
service within the City's normal billing cycle. The customer shall be deemed financially
unable to pay for residential water service within the City's normal billing cycle if any
member of the customer's household is a current recipient of CaIWORKs, CalFresh,
general assistance, Medi-Cal, Supplemental Security Income/State Supplementary
Payment Program, or California Special Supplemental Nutrition Program for Women,
Infants, and Children, or the customer declares that the household's annual income is
less than 200 percent of the federal poverty level.
(iii)The customer is willing to enter into an amortization agreement, alternative payment
schedule, or a plan for deferred or reduced payment with respect to all delinquent
charges.
B. If the conditions listed above are all met, the City shall offer the customer one or more of the
following options:
(i) Amortization of the unpaid balance.
(ii) Participation in an alternative payment schedule.
(iii) A partial or full reduction of the unpaid balance financed without additional charges to
other ratepayers.
(iv) Temporary deferral of payment.
C. The Director of Administrative Services is authorized to determine which of the payment
options described in paragraph 6.13 the customer undertakes and may set the parameters of
that payment option provided that the repayment of any remaining outstanding balance occurs
within 12 months, and further provided that the Director of Administrative Services may only
approve a partial or full reduction of the unpaid balance if that reduction can be funded with
general fund revenues that the City Council has approved and transferred into the Water Fund
budget explicitly for the purpose of doing so.
D. Residential water service may be discontinued no sooner than 5 business days after the City
posts a final notice of intent to disconnect service in a prominent and conspicuous location at
the property under either of the following circumstances:
(i) The customer fails to comply with an amortization agreement, an alternative payment
schedule, or a deferral or reduction in payment plan for delinquent charges for 60 days or
more.
(ii) While undertaking an amortization agreement, an alternative payment schedule, or a
deferral or reduction in payment plan for delinquent charges, the customer does not pay
his or her current residential water service charges for 60 days or more.
7. Restoration of Water Service
A. If the City discontinues residential water service for nonpayment, it shall provide the customer
with information on how to restore residential water service. For a residential customer who
demonstrates to the City that the household income is below 200 percent of the federal poverty
line, the City shall do both of the following:
(i) Set a reconnection of service fee for reconnection during normal operating hours in an
amount that does not exceed fifty dollars ($50), or the actual cost of reconnection if it is
less. For the reconnection of residential water service during nonoperational hours, the
City shall set a reconnection of service fee that does not exceed one hundred fifty dollars
($150), or the actual cost of reconnection during nonoperational hours if it is less. The
maximum amount of $50 for reconnection during operational hours and $150 during
nonoperational hours shall be subject to an annual adjustment for changes in the
Consumer Price Index beginning January 1, 2021. The City shall use the average of the
Los Angeles area and San Francisco area for determining the increase in the Consumer
Price Index.
(ii) Waive interest charges on delinquent bills once every 12 months.
B. The City shall deem a residential customer to have a household income below 200 percent of
the federal poverty line if any member of the household is a current recipient of CaIWORKs,
CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary
Payment Program, or California Special Supplemental Nutrition Program for Women, Infants,
and Children, or the customer declares that the household's annual income is less than 200
percent of the federal poverty level.
8. Services involving Landlord-Tenant Relationships
A. If the City furnishes individually metered residential water service to residential occupants of a
detached single-family dwelling, a multiunit residential structure, and mobilehome and the
owner, manager, or operator of the dwelling, structure, or park is the customer of record, the
City shall make every good faith effort to inform the residential occupants, by means of written
notice, when the account is in arrears that service will be terminated at least 10 days prior to
the termination. The written notice shall further inform the residential occupants that they have
the right to become customers, to whom the service will then be billed, without being required
to pay any amount which may be due on the delinquent account.
B. The City shall not make service available to the residential occupants unless each residential
occupant agrees to the terms and conditions of service and meets the requirements of law and
the City's ordinances, resolutions, rules and regulations. However, if one or more of the
residential occupants are willing and able to assume responsibility for the subsequent charges
to the account to the satisfaction of the City, including requirements which may include, but
not be limited to, payment of a deposit of$180 and completion of a City application for service
so that the Director of Administrative Services, or designee, can evaluate whether the City is
satisfied that the residential applicants can meet the terms and conditions of service, or if there
is a physical means legally available for the City to selectively terminate service to those
residential occupants who have not met the requirements of the City's, the City shall make
service available to those residential occupants who the City is satisfied can meet the terms
and conditions of service.
9. Reporting Requirements
The City shall annually report the number of discontinuations of residential service for inability to
pay on the City's website and to the State Water Resources Control Board.
10. Limitations of this Policy
Nothing in this policy restricts, limits or otherwise impairs the City's ability to terminate service to a
customer for reasons other than those explicitly stated in this policy, including, but not limited to,
unauthorized actions of the customer.
11. Customers may appeal the amount set forth in any bill for residential water service.
A. The customer has a right to initiate an appeal of any bill or charge rendered by the City. Such
request must be made in writing and be delivered to the City's office. The City will not
discontinue water service to the customer during the appeal process.
B. The appeal hearing shall be set before the Utility Billing Adjustment Committee on the 3 d
Thursday of the month. The Utility Billing Adjustment Committee procedures are stated in City
Council Resolution 4077 dated April 8, 2008.
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4955 was passed and adopted at a regular meeting of the City Council
of the City of Arroyo Grande on the 10th day of December, 2019.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 11th day of
December, 2019.
�• I (JUZL(te&erU2---
KELLY W TM* E, CITY CLERK