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HomeMy WebLinkAbout14 District Appeal Utility Deposit Agenda Item # 14 ® � rPublic Utility DistrictONNER ACTION To: Board of Directors From: Robert Mescher Date: November 19, 2014 Subject: Consideration of a District Customer Appeal of a Utility Deposit 1. WHY THIS MATTER IS BEFORE THE BOARD According to District Code, any customer who is dissatisfied with staffs final determination of a billing dispute may appeal to the Board of Directors. The Board shall make a determination of the appeal and its determination shall be final and conclusive. 2. HISTORY District Code states that a deposit, equal to two times the highest monthly bill within the last 24 months, shall be required of all customers before electric and/or water service is supplied. A waiver of the deposit may be determined by the District and based on multiple factors including, but not limited to the following: 1.) having an acceptable credit rating; 2.) having the account co-signed by an existing District customer with acceptable credit, or 3.) participating in the District's automated payment program through an electronic funds transfer (EFT). This program is generally referred to as "EFT in Lieu of Deposit." In District Code and on the application for EFT in Lieu of Deposit, it explains that if a payment is rejected for any reason, a deposit will be required and will be automatically added to the customer's bill. The District bills customers based upon four weekly cycles to accommodate reading meters in four geographic areas throughout the District. Therefore billing dates and due dates fluctuate month to month. 3. NEW INFORMATION On June 11, 2014, Michael Maher opened an electric and water account for the house he is renting. His credit rating was not sufficient to waive a deposit nor did he have a qualified co-signer. Mr. Maher applied for EFT in Lieu of Deposit and in doing so, initialed the clause that says, "By choosing to enroll in the Recurring Credit Card EFT Program in lieu of deposit, I understand that if a payment is rejected or reversed for any reason, at any time within the next 24 months, a deposit of twice the highest bill within the last 24 months of service will be added to my account and no payment arrangements will be accepted. I am aware of the fact that if I were to choose to pay the deposit today, payment arrangements maybe available." The first two bills were paid in full on the due dates of July 21, 2014 and August 25, 2014. However, the automated payment declined because of insufficient funds in Mr. Maher's account on September 22, 2014; the due date of Mr. Maher's third bill. He was immediately notified of the rejected payment and that a $775 deposit was required. The deposit is equal to two times the highest monthly bill within the last 24 months. The District's Administrative Services Manager, Robert Mescher, exchanged multiple emails and had many lengthy conversations with Mr. Maher regarding this matter. Attachment 1 is a summary of the events. The District offered Mr. Maher a payment plan of five monthly payments of$155 which was initially declined by Mr. Maher, but accepted under protest on November 7, 2014. Mr. Maher paid the first installment and filed a formal appeal to the Board to waive the deposit. Attachment 2 is Mr. Maher's appeal. According to Mr. Maher's appeal, he did not receive his September bill, he was not informed that the due date was September 22, and he was not informed that the due date was not always the 25th of the month. Therefore, the District should not require a deposit. The General Manager investigated the merits of Mr. Maher's claim and reviewed District records. The General Manger determined the District was not in error requiring a deposit of$775 according to District Code. 4. FISCAL IMPACT If the appeal is denied, Mr. Maher will owe a deposit of $775 made payable in five monthly installments of$155 per the agreement signed on November 7, 2014. If the appeal is granted, no deposit will be required on Mr. Maher's account unless a future qualifying event occurs. The District will refund Mr. Maher the first installment of $155 and void the November 7, 2014 payment plan agreement. 5. RECOMMENDATION Deny Mr. Maher's claim and determine that Mr. Maher owes a deposit of $775 as required in District Code. Robert Mescher Michael D. Holley Administrative Services Manager General Manager Attachment 1 From: Michael Maher fmailto:mikem(a�-customlearning.orgl Sent: Monday, November 10, 2014 9:16 AM To: Barbara Cahill Subject: Appeal Hello Barbara, I am writing you to file an appeal in regards to a decision recently made by Bob Mesher on my account. He found that I should be required to pay the deposit, per the terms of the 'EFT in Lieu of Deposit Agreement,' due to a failed EFT transaction. As I have shown exhaustively to Bob, the failed transaction occurred as a result of lack of notification about TDPUD's billing procedure. On August 25th, my bill was due, and I paid my bill in full. As I had not received a bill in September, I noted that I should call in before the 25th to set up a payment, or otherwise make sure the account corresponding to the scheduled EFT had enough funds by that date. On September 22nd, less than one month since paying my bill in full, I came home to find a disconnect notice posted on my front door. I called immediately to find out what error had been made. I was never informed, and had no reason to believe, that consecutive bills could be due less than one month apart. Bob has confirmed that TDPUD would not charge a deposit in a case where the failed EFT occurred due to an error made by TDPUD. I have clearly illustrated that this is the case, as the failed EFT occurred due to lack of notification of TDPUD's billing procedure. Bob insists that, "Truckee Donner PUD made no error," yet cannot explain anyway I would have known about this billing procedure without receiving the September bill (which was not delivered) or calling TDPUD well before I would have any reason to suspect my bill would become due. Now that I have been made aware of TDPUD's billing procedure I may plan appropriately to ensure this error does not take place again in the future. If I had been properly informed before this incident, it would have been prevented. I hope that I have made a clear and compelling description of the events surrounding this failed EFT, however, this issue has placed considerable pressure on me in terms of time and stress, and it is possible that I may have omitted some sections. Please contact me if any additional information is required or requested. Thank you, Mike Maher MikeW&-customlearning.org (808)277-9017 ATTACHM ENT° . Michael Maher Account History Mr. Maher's Assertions • He should not be charged the required $775 deposit or a deposit in any amount. • His credit score is incorrect because of a mistake in his bank's records for his student loan. • He never received the District's September utility bill • The District's longstanding practice of a four-week billing period is too confusing. • The District's code does not allow his mother who lives in Arizona to co-sign for him. • The District's base water charge is too high. History • 06/11/14 Mr. Maher opened his electric and water account with the District. His application shows he is renting the house. Based on his credit report, a deposit was due; twice the highest bill in the past 24 months. He applied for the District's automatic payment option (EFT in lieu of deposit) and initialed the clause that says, "By choosing to enroll in the Recurring Credit Card EFT Program in lieu of deposit, 1 understand that if a payment is rejected or reversed for any reason, at any time within the next 24 months, a deposit of twice the highest bill within the last 24 months of service will be added to my account and no payment arrangements will be accepted. 1 am aware of the fact that if I were to choose to pay the deposit today, payment arrangements may be available." • 07/21/14 He manually paid in full $123.91 on the due date of his first bill. • 08/25/14 He automatically paid in full $345.95 on the due date of his second bill. • 09/22/14 His automatic EFT of$390.67 was declined on the due date of his third bill because of insufficient funds. • 09/23/14 A Customer Service Representative (CSR) emailed him a notice to comply and to pay $390.67, plus a $775 deposit. • 09/24/14 He called the CSR to say he was able to pay the $390,67, but not the deposit. • 09/24/14 After speaking to her manager, the CSR emailed him an option to pay with different banking information and to pay the $775 deposit in two monthly installments. • 09/25/14 He called the office before it opened. The District's after-hours answering service reported he was upset that someone e-mailed him instead of calling him. He cannot afford to pay a deposit. • 09/25/14 He emailed the CSR to explain he could pay the $390.67, but not the deposit. He does not want to receive email communication from us. He requested her supervisor to call him. He stated that his credit report is inaccurate. He thought payments were withdrawn every 25th of the month. He did not receive a bill for September. • 09/25/14 The Administrative Services Manager, Robert Mescher, called him to explain his account and the reason for the deposit. Customer cut short the conversation. He said he had to go back to work. • 09/25/14 He called Mescher and paid $390.67 via credit card. Mescher continued the discussion and offered customer a five-month payment plan. He refused the payment plan. Mescher 1of2 ATTACHMENT 1 explained the $775 would be added to his next bill. He said he could not afford to pay any of the deposit. He is trying to correct his credit history. He would contact his lender to see if they corrected his record. • 09/29/14 He came to the District counter. Mescher had a lengthy discussion with him. He asked if his mother who lives in Arizona could co-sign. Mescher declined. Mescher offered assistance from FRC, LIHEAP,and our ESP program,but he declined. Mescheragain offered him a five-month payment plan. He declined. Mescher explained the $775 would be added to his next bill. He said he plans to attend the October 15 Board Meeting. Mescher encouraged him to do so, but advised him that the Board may or may not request staff to respond. Mescher gave customer Mescher's business card and offered to formally respond to any written complaint. • 10/09/14 He emailed Mescher that he does not understand why the $775 was added to his account. Mescher responded "You were advised that the $775 would be included in your next bill when you and I spoke on September 29, 2014 at the front counter.The full deposit was added to your most recent bill because you did not agree to our special offer of a five-month payment plan. Truckee Donner Public Utility District's four-weekly-cycle-billing method is not unusual, but is standard for our industry. Your mother cannot be a co-signer because she is not a current customer ofTDPUD. Section 5.01.005 of TDPUD's District Code states that 'the co-signer must be a current customer with at least 24 consecutive months of service who is in good credit standing with the District.' Your credit score is not within the control of TDPUD. A deposit can be waived under certain circumstances, however, you do not qualify. For your records, I have included selected sections of your service application explaining why a deposit has been applied to your account, with your signature and initials indicating you acknowledged and agreed to those terms." • 10/09/14 He email his response to Mescher. His email did not contain any questions, requests, or new information. Therefore, Mescher did not respond. • 10/20/14 He emailed Mescher asking why Mescher did not respond to his 10/09/14 email and Mescher emailed stating the 10/09/14 email did not contain any questions, requests, or new information. • 10/21/14 He emailed Mescher listing the events and asking the same prior questions. Mescher responded consistent with prior responses. • 11/05/14 He sent Mescher a four-paged e-mail, listing the events and asking the same prior questions. Mescher called him.They had a 40 minute discussion. Mescher offered the five-month installment plan for one final time, expiring on 11/07/14. He did not seem satisfied. • 11/06/14 Mescher emailed him the District Code sections regarding billing disputes and appeals along with detailed instructions. • 11/07/14 He emailed Mescher indicating he will pay the $155 "in protest" and appeal to the Board. • 11/07/14 He paid the first installment payment of$155 and signed the payment agreement. • 11/10/14 He emailed an appeal to the Board to Barbara Cahill. 2of2 TRUCKEE DONNER PUD Y 11570 Donner Pass Rd TRUCKEE CA 96161 PHONE (530) 587-3896 NOTICE TO COMPLY Termination of service(s) may/will occur if the following documentation/payment is not received by the date/time below. THANK YOU for your cooperation with this request. If you need assistance, please contact our office. This is to notify you that we are unable to complete your account file or service request for the following reason(s): Signed service and/or credit application(s) Payment on your deposit in the amount of: xxxxxxx Payment on your account in the amount of: $ 390.67 Copy of your rental agreement Proper identification Your check, e-bill or EFT has been returned by the bank Mail returned due to incorrect mailing address xxxxxxx Other YOUR EFT WAS RETURNED, THE $775 DEPOSIT HAS BEEN ADDED TO THE ACCOUNT BILLING 10/2/1 Comments PLEASE PROVIDE PAYMENT FOR THE RETURNED AMOUNT IMMEDIATELY. EFT HAS BEEN REMOVE WE WILL WAIVE 1/2 OF THE DEPOSIT IF YOU PROVIDE A CHECKING ACCT. Name: MICHAEL MAHER Account Number: 9000026429 Service Location: 14623 ROYAL WAY Meter Number: A00069 Required Due Date : 9/26/2014 Time: 9:OOAM Rep: K. MCAFEE Delivered by: Date: Time: THE PERSON DELIVERING THIS NOTICE IS NOT ALLOWED TO ACCEPT PAYMENTS ALL PAYMENTS MUST BE MADE THROUGH OUR OFFICE TRUCKEE DONNER PUD - PROOF OF DELIVERY NOTICE TO COMPLY This is to notify you that we are unable to complete your account file or service request for the following reason(s): Signed service and/or credit application(s) Payment on your deposit In the amount of: $ - Payment on your account in the amount of: $ 390.67 Copy of your rental agreement Proper identification Your check, a-bill or EFT has been returned by the bank $ - Mall returned due to Incorrect malling address Other YOUR EFT WAS RETURNED, THE $775 DEPOSIT HAS BEEN ADDED TO THE ACCOUNT BILLING 1012/14 Comments PLEASE PROVIDE PAYMENT FOR THE RETURNED AMOUNT IMMEDIATELY. EFT HAS BEEN REMOVE WE WILL WAIVE 1/2 OF THE DEPOSIT IF YOU PROVIDE A CHECKING ACCT. Name: MICHAEL MAHER Account Number: 9000026429 Service Location: 14623 ROYAL WAY Meter Number: A00069 Required Due Date : 9/26/2014 Time: 9:OOAM Rep: K. MCAFEE Delivered by: Date: Time: