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2. Recommended Changes - Water & Sewer Billing Late FeesPost Office Box 1997, Kalispell, Montana 59903-199 7 -Telephone (406)758.7720, Fax (406)758278 31. MEMORANDUM 17 September 2003 To: Mayor Kennedy, City Council, and Chris A. Kukulski, City Manage From: lames C. Hansz, P.E., Director of Public Works/City Amy Robertson, Finance Director Subject: Work Session, Water/Sewer Billing Late Fees -- Recommended Changes At the present time the City has a very "user friendly" policy regarding late payment of water and sewer bills. Essentially, the City requests payment and as time passes and the bill increases due to continued usage the City repeats its requests for immediate payment in full. Eventually the customer runs up a late account that requires a site visit to hang a final notice with a date service will be shut-off. The delinquent customer waits until the last possible minute and then pays the charge most in arrears and the cycle starts again. The current system does not provide for late fees or shut-off notice fees; it basically has in it no incentives for the customer to keep the account current. We believe it is too "user friendly" and not in the City's best interest to leave unchanged. Staff would like to discuss the current late account practices of ether Cities and obtain guidance from City Council on the preferred approach to dealing with this issue. We also have requested the advice of our rate study consultant and hope to have a reasonable sampling of alternatives to support this discussion. memao582003.doc LATE FEE POLICIES City of Whitefish Bill monthly Bills due within 30 days. $5.00 late fee added on 31" day. Letter goes to customer stating that another $25.00 fee will be added to bill if not paid in 10 days and the water is shut-off on the I Ith day. If the water is shut-off due to non payment a reconnect fee is not required as long as they have paid the $5.00 and $25.00 late fees. When a customer moves out the water is automatically shut-off and no new application for service is approved if there is an outstanding bill due for the location requesting service. City of Columbia Falls Nancy 892-4391 Bill monthly In process of implementing these new late fees. 30 days to pay bill — $5.00 late fee added on the 3 1 " day. Notice is sent w/next bill stating that the water will be shut-off if payment is not received by the end of the second month and a $25.00 late fee is also added to the bill. Homes are tagged one day prior to shut-off $50.00 reconnect fee. Mountain Water (Missoula) John 523-5069 Bill Monthly No late fees charged. After 30 days late a letter is sent stating water will be shut-off in 10 days. $70.34 reconnect fee Hungry Horse Water District Rita Graham 250-3822 Bill Monthly Bill on the 1' day of the month, bills due on the 15t' of the month. $3.50 late fee added to bill after the 15'' Tagged for shut-off on the 16'h of the month, shut-off after 1 week $10.00 disconnect fee & $10.00 reconnect fee