HomeMy WebLinkAbout8 Billing and Payment Procedure Agend: Item
I
Memorandum
To: Board of Directors
From: Mary Chapman, Administrative Services Manager
Date: May 27, 2005
SUBJECT: Workshop to discuss customer billing and payment procedures
1. WHY THIS ITEM IS BEFORE THE BOARD
Director Sutton asked that this item be placed on the agenda for review and discussion.
2. HISTORY
The District's billing procedures are as follows:
1) Day 1 monthly bill is printed; bills are printed and mailed on Wednesdays.
2) Due date is 19 days after the billing date.
3) The following month, the monthly bill is printed; if there is a past due balance there is a late
charge on the bill.
4) On the 7th day after the second bill is printed, the customer is sent a 15 day notice showing
their past due balance.
5) At the end of the 15 days, if a customer still hasn't paid their bill, a 48 hour notice is mailed
and delivered to the residence or commercial business.
6) If the customer has not paid at the end of the 48 hours, the account is disconnected. Prior
to disconnect, Mark calls the customer in one more attempt to talk to the customer
regarding payment.
3. NEW INFORMATION
r
Attached is a copy of the billing schedule for 2005. There are four billing cycles each month.
The billing department bills a cycle each Wednesday. On rare occasion a billing is sent out on
Thursday. We also have a meter reading schedule. The meter readers must complete their reading r
on the Friday before the billing date. This allows the billing staff two days to review the pre-bill
reports for reading errors or to send the meter readers out again to recheck a reading which is rare.
If you review the billings for each cycle, you will see that we do send out a bill each month.
The problem is in cycle 2. Both of Mrs. Sutton accounts are included in billing cycle 2. The bills are
sent out (one each month) and the customers are given 19 days to pay. The 11 day is the due
date. However, the customer actually has until the next billing to pay their bill without a late charge.
That date is always in the next month. The problem with cycle 2 is that the 19th day is close to the
end of the month. Frequently it depends on how many days there are in a month as to which month
the payment is due. During 2005, there were four monthly billings where the due date fell in the
same month as the billing. There were also four months where there were no due dates. While this
is a bit confusing, the customer can pay the bill in the next month and not get a late charge. A
customer's credit is determined by how many late charges, 15 day notices, 48 hour notices,
disconnects and returned checks they have on their account. Paying between the due date and the
next billing date has no affect on a customer's credit history with the District.
I have also included a copy of the District's policies numbered 5.08 and 5.12 which cover
Billing and Discontinuance and Restoration of Service respectively for your review.
I also understand that there was a question regarding the third party payment processor that
the District is using whereby customer payments are being sent to a processing house in Prescott,
Arizona. I can tell you that this move has increased the efficiency of the customer services staff
substantially. We have received a handful of complaints and several questions. However, when we
explain the time savings to staff the customers seem to understand and have no further questions.
We no longer have to deal with equipment problems on opening the mail and processing the
payments. The daily bank deposit is so much quicker to prepare. Each day, money is wired to our
bank account and we are sent a listing of the payments. All we do is post the batch to the customer
accounts on the same day we receive the batch. Additionally, sorting and opening the daily mail is
so much easier. The time that we have freed up has allowed the staff to be more current on their
work, perform work that wasn't getting done such as the document archiving and work in a less
frenzied environment. This also allows us to spend more time with the customers and work less
overtime.
We currently offer customers the following ways to pay their bill:
1) Mail their payment to Prescott, Arizona
2) Mail their payment to the District post office box
3) Drop their payment off at the front counter
4) Drop their payment off in the outside night drop
5) Drop their payment off in the inside night drop
6) Sign up for the electronic funds transfer
7) Pay their bill on their credit card using Official Payments
8) Pay their bill using a third party bill payment program
9) Pay their bill over the Internet using the District's new E-Bill electronic check option t
If any customer wants to send their payments to the District's post office box, we can provide them with return envelopes which they can use. r
`s
s
t
P
s
BILLING SCHEDULE 2005
CYC1 BILL DUE CYC2 BILL DUE
FINAL DATE DATE FINAL DATE
READ 2005 2005 DATE
DATE READ 2005 2005
DATE
Jan 12/30/04 1/5/05 1/24/05
1(26(05 2/2 1!7/05 13i05 2/1(0Feb 1/ 5
2/7/05 2/14/05 3/2/05
Mar 2/24/05 3/2/05 3/21/05 3/7/05 3/9/05 3/28/05
Apr 3/24/05 4/6/05 4/25/05 4/8/05 4/13/05 5/2/05
May 4/26/05 5/4/05 5/23/05 5/6/05 5/11/05 5/30/05 Jun 5/25/05 6/2/05 6/21/05 6/6/05 6/8/05 6l27/09
Jul 6/24(05 7/6/05 7/25/05 7/8/05 7/13/05 8/1/05
Aug 7/26/05 8/3105 8/22/05 8/5/05 8/10/05 8/29/05
Sep 8/24105 9/7l05 9/26/05 9/8/05 9/14/05 10/3/05
Oct 9/27/05 10/5/05 10/24/05 10/7/05 10/12/05 10/31/05
Nov 10/26/05 11/2105 11/21/05 11/7105 11/9/05 11/28/05
Dec 11/23l05 12/7/05 12/26/05 12/8/05 12/14/05 1/2/05
CYC3 BILL DUE CYC4 BILL DUE
FINAL DATE DATE FINAL DATE DATE
READ 2005 2005 READ 2005 2005
DATE DATE
Jan 1/13/05 1/19/05 2/7l05 1/19/05 1/26/05 2/14/05
Feb 2/11/05 2/17/05 3/8/05 2/18/05 2/24/05 3/15/05
Mar 3/11/05 3/17/05 4/5/05 3/18/05 3/23/05 4/11/05
Apr 4/13/05 4/20/05 5/9/05 4/20/05 4l27/05 5/16/05
May 5/12/05 5/18/05 676/05 5/19/05 5/25/05 6/13/05
Jun 6/10/05 6/15/05 7/4/05 6/20/05 6/22/05 7/11/05
Jul 7/13/05 7/20/05 8/8/05 7/20/05 7/27/05 8/15/05
Aug 8/11/05 8/17/05 9/5/05 8/18/05 8/24/05 9/12/05
Sep 9/13/05 9/21/05 10/10/05 9/19/05 9/28/05 10/17/05
Oct 10/13/05 10/19/05 11/7/05 10/19/05 10/26/05 11/14/05
Nov 1 11/1U/05 1 11/16/05 12/5/05 11(18/05 11/23/05 12/12/05
Dec 12/14(05 12/21/051 1(9/06 12/21/05 12/28/05 1/16/06
t
s
E
}
F
READ-BILL-DUE INFO 2005
E
CHAPTER 5,08
Sections: BILLING
5.08.010 Billing Procedure
5.08.020 Billing Procedure - Local, State or
Federal Agencies
5.08.010 Billing, Procedure
5.08.010.1 Bills will be rendered monthly and shall be paid at the District office or at
other locations designated by the District.
5.08.010.2 Failure to receive bill will not release customer from their payment obligation.
5.08.010.3 The due date for payment of bill will be 19 days after the day the bill is
mailed to the customer.
5.08.010.4 Should the due date of bill fall on a Saturday, Sunday or recognized holiday,
the business day next following the due date will be held as a day of grace for delivery of
payment.
5.08.010.5 If at the time of billing a customer has a previous balance, a late payment
charge will be charged at the rate of 18% per annum or a minimum charge of$5.00.
5.08.010.6 A returned check charge of$10.00 will be made to customers for each check
returned for insufficient funds.
5.08.010.7 For customers with hardship or other special extenuating circumstances,
special financial counseling is available. When requested by customer, the District may
arrange for customer to pay the bill in installments.
5.08.010.8 In some instances, the District may install a power limiting device.
(Res. 8901)
5.08.020 Billing Procedure - Local State or Federal Agencies - Due to the
cumbersome procedures that are required of local, state and federal agencies to
process their accounts payable and the fact that their bills are paid monthly and the fact
that the District has never had a write-off for a local, state or federal agency, the
following procedure will be followed:
5.08.020.1 The Billing Department will review the accounts of all known local, state and
federal agencies and code them to be exempt from late charges.
5.08.020.2 Collection notices will be mailed in a timely manner and collection
procedures will be followed as usual.
5.08.020.3 Should a local, state or federal agency reach the disconnect for non-
s
s
Y
Y
payment step in the collection procedure, it will be referred to the Office Supervisor for
special handling.
(Management directive, 4/23/85)
CHAPTER 5.12
Sections: DISCONTINUANCE AND RESTORATION OF SERVICE
5.12.010 Termination for Non-payment - Water
Service
5.12.020 Termination for Non-payment - Electric
Service
5.12.030 Customer's Request for Discontinuance
of Service
5.12.040 Discontinuance of Water Service by
District
5.12.045 Discontinuance of Electric Service by the
District
5.12.050 Restoration of Water Service
5.12.055 Restoration of Electric Service
5.12.060 Customer's Responsibility when Water
Service Discontinued
5.12.010 Termination for Non-payment -Water Service
5.12.010.1 A notice that service is subject to termination for non-payment will be by
written notification from the District. This notice will be printed one week after a bill is
generated that shows a previous balance on the account.
5.12.010.2 Written notice of termination (Final Notice) shall be mailed by first class mail
to customer at least 15 calendar days prior to the scheduled date of termination.
5.12.010.3 The Final Notice will include:
5.12.010.3(A) The amount due, including any other charges.
5.12.010.3(B) The last date of payment to avoid termination.
5.12.010.3(C) Instructions as to how to apply for an investigation if the bill is disputed.
5.12.010.3(D) The District will make an attempt to collect the amount due by a visit to
the customer's premise at least 24 hours before service is to be shut off. If the customer
or a responsible adult is not home, a 24-hour notice will be left at the premises. Forty-
eight (48) hours notice will be given to those who are 62 years of age or older or to the
handicapped. It is the customer's responsibility to notify the District if he or she falls into
one of these categories.
5.12.010.3(E) If the customer does not make payment, notify District of dispute of bill, or
's
make other arrangements acceptable to the District by the last day for payment, the
District will proceed on schedule with termination.
5.12.010.3(E)(1) Payments made against uncollectible funds (i.e., check returned for
insufficient funds, closed account, etc.) to avoid disconnection, will be considered non-
payment and the District will proceed according to the procedures set forth above as if
no payment had been received.
5.12.010.3(E)(2) Payments made against uncollectible funds in order to have service
reconnected, will be considered non-payment and the District will immediately proceed
to the 24-hour notice of termination.
5.12.010.3(F) The employee carrying out the termination procedure will attempt, before
disconnecting service, to contact the customer at the premises in a final effort to collect
payment and avoid termination.
5.12.010.3(G) Termination will not be made on any Saturday, Sunday, legal holiday or
any time during which the business office of the District is not open.
5.12.010.3(H) Any customer who initiates a complaint or requests an investigation
within five days of receiving the contested bill shall be given an opportunity for an
investigation by the District. After notification that a dispute exists, the District shall
forthwith make an appropriate investigation as to the accuracy of the charges and shall
report the result thereof to the customer. The review shall include consideration of
whether the customer should be permitted to amortize the unpaid balance of his account
over a reasonable period of time. No termination shall be effected for any customer
complying with such amortization agreement, provided the customer also keeps current
his account for service as charges accrue to each subsequent billing period. If the
customer does not comply with the amortization agreement, it will be considered non-
payment and the District will immediately mail a Final Notice to the customer and
proceed with termination according to Section (b) through (e) above. In the event that
the complaint is not explained to the satisfaction of the customer, the District shall notify
such customer of his right to an appeal to the Board of Directors of the District. No
termination of service shall occur as a result of non-payment during the pendency of an
investigation of a customer dispute or complaint.
5.12.010.3(1) A copy of the above investigation and appeal procedures will be posted in
the District's offices at the immediate locations where the customers pay bills.
5.12.010.3(J) Upon written request of customer having a valid need, the District will
record the name of a third party to be given prior notification if the customer's service is
to be terminated.
5.12.010.3(K) In case of tenants whose water service is in the landlord's name,
notification of termination will be sent to the tenant(s) simultaneously with the landlord, if
the tenants make written request for such notification.
5.12.010.3(L) Customers who have been disconnected for non-payment will be required
to re-establish credit by paying the deposit required by Chapter 5.01 of these codes. r
a
(MO85-109, MO95-28)
i
_. _.._. .... ..
5.12.020 Termination for Non-payment - Electric Service
5.12.020.1 A notice that service is subject to termination for non-payment will be by
written notification from the District. This notice will be printed one week after a bill is
generated that shows a previous balance on the account.
5.12.020.2 Written notice of termination of service shall be mailed or delivered to
customer's premise at least 15 calendar days prior to the scheduled date of termination.
5.12.020.3 The Notice of Termination of Service shall include:
5.12.020.3(A) The name and address of the customer whose account is delinquent.
5.12.020.3(B) The amount of the delinquency.
5.12.020.3(C) The date by which payment or arrangements for payment is required in
order to avoid termination.
5.12.020.3(D) The procedure by which the customer may request amortization of the
unpaid charges.
5.12.020.3(E) The procedure for the customer to obtain information on the availability of
financial assistance.
5.12.020.4 The District will make an attempt to collect the amount due by a visit to the
customer's premise at least 48 hours before service is to be shut off. A 48-hour notice
(Final Attempt to Collect Before Termination notice) shall be given to the customer or a
responsible adult. If neither is present, the notice will be left on the door knob of the
premise. A duplicate copy of the 48-hour notice will be mailed on the same day to the
address on the account. There will be a delinquent account processing fee charged for
this procedure.
5.12.020.5 If the customer does not make payment or make other arrangements
acceptable to the District by the last day for payment, the District will proceed on
schedule with termination.
5.12.020.5(A) Payments made against uncollectible funds (i.e., check returned for
insufficient funds, closed account, etc.) to avoid disconnection, will be considered non-
payment and the District will immediately proceed to the 48-hour notice of termination.
5.12.020.5(B) Payments made against uncollectible funds in order to have service
reconnected will be considered non-payment and the District will immediately proceed to
the 48-hour notice of termination.
5.12.020.5(C) If the customer does not meet his payment arrangement, it will be
considered non-payment and the District will immediately proceed to the 48-hour notice of termination. s
r
5.12.020.E The employee carrying out the termination procedure will attempt, before
disconnecting the service, to contact the customer at the premise in a final effort to
r
t
collect the payment and avoid termination.
5.12.020.7 Termination will not be made on any Saturday, Sunday, legal holiday or any
time during which the business office of the District is not open.
5.12.020.8 Upon written request by a customer having a valid need, the District will
record the name of a third party to be given prior notification if the customer's service is
to be terminated.
5.12.020.9 Customers who have been disconnected for non-payment or have made
arrangements to amortize the amount due, will be required to re-establish credit by
paying a deposit or an additional deposit.
5.12.020.10 A customer who transfers service from one account to another and fails to
pay his final bill on the old account within the 19 day period will be subject to the
disconnect procedure.
(Minute Order 85-109, MO95-28)
5.12.030 Customer's Request for Discontinuance of Service
5.12.030.1 The District shall permit a physical disconnection from the water system on a
temporary basis when necessary (1) to permit the customer to perform repairs,
modifications or service upgrades on the customer premises or (2) when the customer
Premises is not equipped with an appropriate shut-off valve and physical disconnection
is necessary to avoid frozen water pipes. A physical disconnect shall not be permitted
for any other reason.
Customers may arrange for disconnection of service by giving advance notice to the
district. Charges for service shall not be waived during the period of disconnect.
(Resolution 2003-15)
5.12.040 Discontinuance of Water Service by the District
5.12.040.1 With notice - A customer's water service may be discontinued by the District
upon at least five days' prior written notice in the event of:
5.12.040.1(A) Non-payment of bills for water service at any location within 30 days of
presentation;
5.12.040.1(B) Violation of these codes;
5.12.040.1(C) Negligent or wasteful use of water, as determined by the District.
5.12.040.1(D) Where a customer receives water service at more than one location and s
the bill or charges for service at any one location is not paid prior to delinquency, water
service at all locations may be disconnected. >
5.12.040.2 Without notice - A customer's water service may be discontinued by the
District without notice where:
(
{
t
5.12.040.2(A) An unsafe or hazardous condition related to water use is found to exist on
the customer's premises.
5.12.040.2(B) Water use is found to be detrimental or damaging to the District or its
customers.
5.12.040.2(C) The District determines that in its opinion, a customer has obtained
service by fraudulent or devious means; or has diverted water service for unauthorized
use.
5.12.040.2(D) The District finds a dangerous unprotected cross-connection between the
District's supply and any unapproved source of water.
5.12.040.3 In those instances where the District discontinues water service to any
customer without notice, the District shall notify the customer of the reasons for the
discontinuance of service and the corrective action to be taken by customer before
service can be restored.
(Water Rule 19, Ord. 8204)
5.12.045 Discontinuance of Electric Service by the District - The District may
discontinue or re-establish or restore electric service for any one or more of the reasons
contained in this rule. Except as otherwise specifically provided here, Public Utilities
Code Sections 16481, 16482 and 16483 and any subsequent amendments, shall be
complied with regarding any disconnect or discontinuance of service.
5.12.045.1 Non-payment of bills - the District may disconnect, discontinue or refuse
service if a customer has not paid his bill for electric service rendered, reconnection
charges, and/or cash deposit as required by the District.
5.12.045.2 Unsafe or illegal apparatus - the District may discontinue service without
notice or refuse service if any part of customer's wiring or equipment or use thereof is
either unsafe or in violation of law, until such apparatus is placed in a safe condition or
the violation remedied.
5.12.045.3 Service detrimental or dangerous - the District may disconnect or
discontinue without notice or refuse service if in the District's judgment, the operation of
the customer's equipment is or will be detrimental or dangerous to his own service or
service of other customers.
5.12.045.4 Fraud - the District may discontinue service without notice or refuse service
if the customer's actions or the condition of his premises is such as to indicate his intent
to defraud the District.
5.12.045.5 Failure to establish or re-establish credit - the District may discontinue or
refuse service if customer fails to establish credit in accordance with the rules and
regulations.
5.12.045.6 Failure to comply with the District's rules - the District may disconnect,
discontinue or refuse service if the customer does not comply with the District Rules and
Regulations.
5.12.045.7 Abandoned building or residence - the District may discontinue or refuse
service to any building with the appearance of being abandoned, i.e., a look of being
deserted, windows broken, doors in disrepair, or the general appearance of not being
lived in, etc. Such discontinuance will remain in effect until all conditions and fees are
met regarding a new service, and inspected and approved by the proper building
authorities.
5.12.045.8 Condemned building or residence - the District may discontinue or refuse
service to any building that has been condemned by the proper state, county or
governmental authorities. Such discontinuance will remain in effect until all conditions
and fees are met regarding a new service, and inspected and approved by the proper
building authorities.
5.12.045.9 Disconnected meter on a building or residence - the District may discontinue
or refuse service to any building which has been disconnected at the meter for a period
of one year. The District will attempt to notify the last known (to the District) customer or
owners 30 days before discontinuance. Meters may have been disconnected for any
reason within these rules, or ordered disconnected by proper state, county or
governmental authorities. Such discontinuance will remain in effect until a new
application for service and associated fees are made. Service must be inspected and
approved by the proper building authorities.
(Electric Rule 19, MO88-181)
5.12.050 Restoration of Water Service
5.12.050.1 In those cases where the customer has requested discontinuance of service,
the customer must pay the disconnection/reconnection charge.
5.12.050.2 In those instances where the District discontinues service to a customer,
with or without notice, service shall not be restored until such time as the customer has
taken the necessary corrective action, as determined by the District, and paid all bills
and charges then due the District, in addition to the reconnection charge.
5.12.050.3 Restoration during regular working hours - Upon request, the District will
attempt to make such restoration of service during the regular working hours. A
reconnection charge as set forth in the Miscellaneous Fee Schedule will be made if the
reconnection occurs during regular working hours. If conditions require the use of a
backhoe or other equipment to effect the disconnect and/or reconnect, the customer
shall be required to pay the actual charges, including labor, material, equipment and
applicable overheads in lieu of the customary fee set forth in the Miscellaneous Fee x Schedule.
s
e
5.12.050.4 Restoration during other than regular working hours - upon the request of a
customer to restore service hereunder at a time other than during regular working hours,
the District will attempt to make the reconnection but shall be under no obligation to do
so, unless an emergency exists. In the event the District restores service at a time other
than during regular working hours, the customer shall pay to the District a reconnection
charge as set forth in the Miscellaneous Fee Schedule. If conditions require the use of a
t
backhoe or other heavy equipment to effect the disconnect and/or reconnect, the
customer shall be required to pay the actual time charges, including labor, material,
equipment and applicable overheads, in lieu of the customary fee set forth in the
Miscellaneous Fee Schedule.
5.12.050.5 No seasonal disconnect of water service will result in discontinuance of
monthly billings.
(Water Rule 19, Ord. 8204) (Resolution 2003-15)
5.12.055 Restoration of Electric Service
5.12.055.1 Within five years, same size service: If service of the same amperage and
voltage is re-established within five years of the date of discontinuance, the customer
shall make normal application for service as per Chapter 7.12. Customer shall be
responsible for payment of the current connection fee for a new service, exclusive of the
transformer and meter costs. Facilities fees will not be charged.
5.12.055.2 Within five years, upgrade of service: If service is re-established within five
years of the date of discontinuance and the customer requests an upgrade of the service
consisting of, but not limited to, amperage size, voltage increase, multiple phases,
multiple meters, the customer shall make normal application for service as per Chapter
7.12. Customer shall be responsible for payment of the current connection fee for a new
service of similar configuration. Fees shall be exclusive of the transformer and meter
costs of the previous service. Facilities fees shall be charged for the excess capacity of
the new service when compared to the previous service.
5.12.055.3 After five years: If service is re-established after five years from the date of
discontinuance, the customer shall make normal application for service as per Chapter
7.12. Customer shall be responsible for payment of current connection and facilities
fees. No credit will be given for the previous service.
(Electric Rule 19, MO88-181)
5.12.060 Customer's Responsibility when Water Service Discontinued
In the event a customer's water service is discontinued as a result of voluntary
termination or termination for failure to pay bills, it shall be the customer's responsibility
to take necessary precautions against any and all damage to the customer's pipes,
fixtures and appliances which could result from such termination. The District shall not
be liable for any such damage.
(Water Rule 19, Ord. 8204) (Resolution 2003-15)
REMITTANCE PROCESSING COSTS:
$1,995 Mail extraction equipment- annual maintenance
1,780 Remittance processing equipment- annual maintenance
4,501 Remittance software and annual support
$8,276 Subtotal
36,047 District labor& payroll overhead
$44,323 Total cost
22,404 NISC charges(approximately $1,867 per month)
$21,919 Net annual savings
s
`s
z