1996 AGN NOV 05 I05 - Laserfiche WebLink

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CITY OF COLTON r AGENDA REPORT FOR COUNCIL MEETING OF NOVEMBER 5, 1996 TO: HONORABLE MAYOR & CITY COUNCIL APPROVAL: MALIK FREEMAN, INTERIM CITY MANAGER �C� FROM: THOMAS K. CLARKE, ELECTRIC UTILITY DIRECTOR SUBJECT: APPROVE AND ADOPT THE ATTACHED RESOLUTION FOR REVISION OF CUSTOMER SERVICE POLICY NUMBER 17 TO INCREASE NUMBER OF DAYS FROM SIXTEEN TO TWENTY BEFORE DELINQUENT NOTICE IS MAILED TO COMMERCIAL CUSTOMERS DATE: OCTOBER 21, 1996 BACKGROUND Customer Policy No. 17, Rendering and Payment of Bills, states, in part "Residential bills are due and payable upon presentation. Twenty (20) days after mailing, a delinquent notice will be sent. Thirteen (13) days thereafter, a door tag will be placed and service may be disconnected forty-eight (48) hours thereafter. If payment is not received, a late fee may be assessed. General Services bills are due and payable upon presentation. Sixteen (16) days after, delinquent notice will be sent. Ten (10) days thereafter, service is discontinued. Per this policy, residential customers have thirty (30) days after the mailing of the utility bill to the date when power may be disconnected for non-payment. General service customers (e.g. businesses) on the other hand have twenty-six (26) days after the mailing of the utility bill to the date when power may be discontinued for non-payment. The residential payment schedule is addressed in State law.' DISCUSSION/ANALYSIS Staff is recommending that the 16 days between the bill date and delinquent notice, that is, the 'due" date, for business customers be changed to 20 days to be consistent with the residential bill schedule. The primary reason for this recommendation is computer scheduling for the ten (10) percent late charge and two (2) percent early payment incentive approved by City Council this year. The proposed revised customer service policy is presented in Exhibit "A'. Revised language is in italics and bolded. The computer program schedules financial activities from the delinquent notice or due date. In order to schedule the 10 percent late charge and 2 percent early payment incentive as financial events in the computer system in a consistent manner for both residential and general service billings, the delinquent date for both residential and general service should both be the same number of days from the bill date. By changing the general service delinquent notice, or due date, to 20 days, other benefits are realized: 1. General service customers have 4 more days to pay their utility bills. Page 1 of 2 Item No. 5