Notwithstanding any other policy or rule of the District, this
Policy on the Discontinuation of Residential Water Service for Non-Payment
(“Policy”) shall apply to the District’s discontinuation
of residential water service for non-payment under the provisions
set forth herein. In the event of any conflict between this Policy
and any other policy or rule of the District, this Policy shall prevail.
This Policy shall apply only to residential water service for
non-payment and the District’s existing policies and procedures
shall continue to apply to commercial and industrial water service
accounts. The District can be reached at (818) 251-2200 for assistance
concerning the payment of water bills and the potential establishment
of the alternatives set forth in this Policy to avoid discontinuation
of service.
[Amended by Res. 2582, 11-3-2020]
(a)
Rendering and Payment of Bills. Bills for water service will be rendered
to each consumer on a monthly basis unless otherwise provided for
in the District’s rate schedules. Bills for service are due
and payable upon presentation and become overdue and subject to discontinuation
of service if not paid within sixty (60) calendar days after the due
date of the bill. Payment may be made at the District office or to
any representative of the District authorized to make collections.
However, it is the consumer’s responsibility to assure that
payments are received at the District office in a timely manner. Partial
payments are not authorized unless prior approval has been received
from the District. Bills will be computed as follows:
(1)
Meters will be read at regular intervals for the preparation of periodic
bills and as required for the preparation of opening bills, closing
bills, and special bills.
(2)
Bills for metered service will show the meter reading for the current
and previous meter reading period for which the bill is rendered,
the number of units, date, and days of service for the current meter
reading.
(3)
District billings shall be paid in legal tender of the United States
of America. Notwithstanding the foregoing, the District shall have
the right to refuse any payment of such billings in coin.
(b)
Overdue Bills. The following rules apply to consumers whose bills
remain unpaid for more than sixty (60) calendar days following the
due date:
(1)
If less than a minimum bill (i.e., less than the account’s
monthly meter charge) remains unpaid on any billing, it shall be carried
over and added to the next billing period.
(2)
Overdue Notice. If payment for a bill rendered is not made on or
before the twentieth (20th) calendar day following the invoice date,
an Overdue Notice will be issued. In addition, a phone call will be
made to the water service consumer at least five (5) business days
prior to the possible installation of a flow restriction device or
discontinuation of service date identified in the Overdue Notice.
For purposes of this Policy, the term “business days”
shall refer to any days on which the District’s office is open
for business. The Overdue Notice must contain the following information:
a.
Consumer’s name and address;
b.
Amount of delinquency;
c.
Date by which payment or arrangement for payment must be made to
avoid installation of a flow restriction device or discontinuation
of service;
d.
Description of the process to apply for an extension of time to pay the amount owing (see Section 6-2.104, below);
(3)
Notice of Installation of Flow Restriction Device or Service Termination. Prior to the installation of a flow restriction device or discontinuation of water service for non-payment, the District will visit the residence at least two (2) business days before the installation or termination date and leave, or make other arrangement to place in a conspicuous location, a Notice of Installation of Flow Restriction Device or Service Termination in a form consistent with Section 6-1.103 (a)(1), and a copy of this Policy.
(4)
Late Charge. A Late Charge, as specified in the District’s
fees and charges, shall be assessed and added to the outstanding balance
on the consumer’s account if the amount owing on that account
is not paid before the Overdue Notice is generated.
(5)
Turn-Off Deadline. Payment for water service charges must be received
in the District offices no later than 5:00 p.m. on the date specified
in the Overdue Notice. Postmarks are not acceptable.
(6)
Notification of Returned Check. Upon receipt of a returned check
rendered as remittance of water service or other charges, the District
will consider the account not paid. The District will attempt to notify
the consumer in person and leave a notice of installation of flow
restriction device or termination of water service at the premises.
A flow restriction device will be installed or water service will
be disconnected if the amount of the returned check and returned check
charge are not paid by the due date specified on the notice, which
due date shall not be sooner than the date specified in the Overdue
Notice; or, if an Overdue Notice had not been previously provided,
no sooner than the sixtieth (60th) calendar day after the invoice
for which payment by the returned check had been made. To redeem a
returned check and to pay a returned check charge, all amounts owing
must be paid by cash or certified funds.
(7)
Returned Check Tendered as Payment for Water Service Disconnected
for Non-Payment.
a.
If the check tendered and accepted as payment which resulted in restoring
service to an account that had been disconnected for non-payment is
returned as non-negotiable, the District may discontinue said water
service upon at least three (3) business days’ written notice.
The consumer’s account may only be reinstated by receipt of
outstanding charges in the form of cash or certified funds. Once the
consumer’s account has been reinstated, the account will be
flagged for a one-year period indicating that a non-negotiable check
was issued by the consumer.
b.
If at any time during the one-year period described above, the consumer’s
account is again disconnected for nonpayment, the District may require
the consumer to pay cash or certified funds to have that water service
restored.
(c)
Conditions Prohibiting Discontinuation. The District shall not discontinue
residential water service if all of the following conditions are met:
(1)
Health Conditions. The consumer or tenant of the consumer submits
certification of a primary care provider that discontinuation of water
service would (i) be life threatening, or (ii) pose a serious threat
to the health and safety of a person residing at the property;
(2)
Financial Inability. The consumer demonstrates he or she is financially
unable to pay for water service within the water system’s normal
billing cycle. The consumer is deemed “financially unable to
pay” if any member of the consumer’s household is: (i)
a current recipient of the following benefits: CalWORKS, CalFresh,
general assistance, Medi-Cal, SSI/State Supplementary Payment Program
or California Special Supplemental Nutrition Program for Women, Infants,
and Children; or (ii) the consumer declares the household’s
annual income is less than 200% of the federal poverty level (see,
federal poverty levels applicable in California: https://www.healthforcalifornia.com/covered-california/income-limits); and,
(d)
Process for Determination of Conditions Prohibiting Discontinuation of Service. The consumer bears the burden of proving compliance with the conditions described in Section 6-2.103 (c), above. To allow the District sufficient time to process any request for assistance by a consumer, the consumer is encouraged to provide the District with the necessary documentation demonstrating the medical issues under Section 6-2.103 (c)(1), financial inability under Section 6-2.103 (c)(2), and a willingness to enter into any alternative payment arrangement under Section 6-2.103 (c)(3), as far in advance of any proposed date for discontinuation of service as possible. Upon receipt of such documentation, the District’s General Manager, or his or her designee, shall review that documentation and respond to the consumer within five (5) business days to either request additional information, including information relating to the feasibility of the available alternative arrangements, or to notify the consumer of the alternative payment arrangement, and terms thereof, under Section 6-2.104, below, in which the District will allow the consumer to participate. If the District has requested additional information, the consumer shall provide the requested information within five (5) business days of receipt of the District’s request. Within five (5) business days of its receipt of the additional information, the District shall either notify the consumer in writing that the consumer does not meet the conditions of Section 6-2.103 (c) above, or notify the consumer in writing of the alternative payment arrangement, and terms thereof, under Section 6-2.104, below, in which the District will allow the consumer to participate. Consumers who fail to meet the conditions described in Section 6-2.103 (c), above, must pay the delinquent amount, including any penalties and other charges, owing to the District within the latter to occur of: (i) two (2) business days after the date of notification from the District of the District’s determination the consumer failed to meet those conditions; or (ii) the date of the impending service discontinuation, as specified in the Overdue Notice.
(e)
Special Rules of Low Income Consumers. Consumers are deemed to have
a household income below 200% of the federal poverty line if: (i)
any member of the consumer’s household is a current recipient
of the following benefits: CalWORKS, CalFresh, general assistance,
Medi-Cal, SSI/State Supplementary Payment Program or California Special
Supplemental Nutrition Program for Women, Infants, and Children; or
(ii) the consumer declares the household’s annual income is
less than 200% of the federal poverty level. (See, federal poverty
levels applicable in California: https://www.healthforcalifornia.com/covered-california/income-limits.) If a consumer demonstrates either of those circumstances, then
the following apply:
(1)
Disconnection and Flow Restriction Fees. If water service has been
discontinued and is to be reconnected, then any reconnection fees
during the District’s normal operating hours cannot exceed $100,
and reconnection fees during non-operational hours cannot exceed $150.
Those fees cannot exceed the actual cost of reconnection if that cost
is less than the statutory caps. Those caps may be adjusted annually
for changes in the Consumer Price Index for the Los Angeles-Long Beach-Anaheim
metropolitan area beginning on January 1, 2021.
(2)
Interest Waiver. The District shall not impose any interest charges
on delinquent bills.
(f)
Landlord-Tenant Scenario. The below procedures apply to individually
metered detached single-family dwellings, multi-unit residential structures
and mobile home parks where the property owner or manager is the customer
of record and is responsible for payment of the water bill.
(1)
Required Notice.
a.
At least ten (10) business days prior if the property is a multi-unit
residential structure or mobile home park, or five (5) business days
prior if the property is a detached single-family dwelling, to the
possible installation of a flow restriction device or discontinuation
of water service, the District must make a good faith effort to inform
the tenants/occupants at the property by written notice that a flow
restriction device or that the water service will be discontinued.
b.
The written notice must also inform the tenants/occupants that they
have the right to become customers to whom the service will be billed
(see (f)(2), below), without having to pay any of the then-delinquent
amounts.
(2)
Tenants/Occupants Becoming Customers.
a.
The District is not required to make water service available to the
tenants/occupants unless each tenant/occupant agrees to the terms
and conditions for water service and meets the District’s requirements
and rules.
b.
However, if (i) one or more of the tenants/occupants assumes responsibility
for subsequent charges to the account to the District’s satisfaction,
or (ii) there is a physical means to selectively discontinue service
to those tenants/occupants who have not met the District’s requirements,
then the District may make service available only to those tenants/occupants
who have met the requirements.
c.
If prior service for a particular length of time is a condition to
establish credit with the District, then residence at the property
and proof of prompt payment of rent for that length of time, to the
District’s satisfaction, is a satisfactory equivalent.
d.
If a tenant/occupant becomes a customer of the District and the tenant’s/occupant’s
rent payments include charges for residential water service where
those charges are not separately stated, the tenant/occupant may deduct
from future rent payments all reasonable charges paid to the District
during the prior payment method.
For any consumer who meets the three conditions set forth in Section 6-2.103 (c), above, in accordance with the process set forth in Section 6-2.103 (d), above, the District shall offer the consumer one of the following alternative payment arrangements, to be selected by the District in its discretion: (i) amortization of the unpaid balance under subsection (a) of this section, below; (ii) alternative payment schedule under subsection (b) of this section, below; (iii) partial or full reduction of unpaid balance under subsection (c) of this section, below; or, (iv) temporary deferral of payment under subsection (d) of this section, below. The General Manager, or his or her designee, shall, in the exercise of reasonable discretion, select the most appropriate alternative payment arrangement after reviewing the information and documentation provided by the consumer and taking into consideration the consumer’s financial situation and District’s payment needs.
(a)
Amortization. Any consumer who is unable to pay for water service within the District’s normal payment period and meets the three conditions set forth under Section 6-2.103 (c), above, as the District shall confirm, may, if the District has selected this alternative, enter into an amortization plan with the District on the following terms:
(1)
Term. The consumer shall pay the unpaid balance, with the administrative
fee and interest as specified in subsection (a)(2), below, over a
period not to exceed twelve (12) months, as determined by the District’s
General Manager, or his or her designee; provided, however, that the
District’s General Manager, or his or her designee, in his or
her reasonable discretion, may apply an amortization term of longer
than twelve (12) months to avoid undue hardship on the consumer. The
unpaid balance, together with the applicable administrative fee and
any interest to be applied, shall be divided by the number of months
in the amortization period, and that amount shall be added each month
to the consumer’s ongoing monthly bills for water service.
(2)
Administrative Fee; Interest. For any approved amortization plan,
the consumer will be charged an administrative fee, in the amount
established by the District from time to time, representing the cost
to the District of initiating and administrating the plan. At the
discretion of the General Manager, or his or her designee, interest
at an annual rate not to exceed eight percent (8%) shall be applied
to any amounts to be amortized under this subsection (a).
(3)
Compliance with Plan. The consumer must comply with the amortization
plan and remain current as charges accrue in each subsequent billing
period. The consumer may not request further amortization of any subsequent
unpaid charges while paying delinquent charges pursuant to an amortization
plan. Where the consumer fails to comply with the terms of the amortization
plan for sixty (60) calendar days or more, or fails to pay the consumer’s
current service charges for sixty (60) calendar days or more, the
District may discontinue water service to the consumer’s property
at least five (5) calendar days after the District posts at the consumer’s
residence a final notice of its intent to discontinue service.
(b)
Alternative Payment Schedule. Any consumer who is unable to pay for water service within the District’s normal payment period and meets the three conditions set forth in Section 6-2.103 (c), above, as the District shall confirm, may, if the District has selected this alternative, enter into an alternative payment schedule for the unpaid balance in accordance with the following:
(1)
Repayment Period. The consumer shall pay the unpaid balance, with
the administrative fee and interest as specified in subsection (b)(2)
below, over a period not to exceed twelve (12) months, as determined
by the District’s General Manager, or his or her designee; provided,
however, that the District’s General Manager, or his or her
designee, in his or her reasonable discretion, may extend the repayment
period for longer than twelve (12) months to avoid undue hardship
on the consumer.
(2)
Administrative Fee; Interest. For any approved alternative payment
schedule, the consumer will be charged an administrative fee, in the
amount established by the District from time to time, representing
the cost to the District of initiating and administering the schedule.
At the discretion of the General Manager, or his or her designee,
interest at an annual rate not to exceed eight percent (8%) shall
be applied to any amounts to be amortized under this subsection (b).
(3)
Schedule. After consulting with the consumer and considering the
consumer’s financial limitations, the District’s General
Manager, or his or her designee, shall develop an alternative payment
schedule to be agreed upon with the consumer. That alternative schedule
may provide for periodic lump sum payments that do not coincide with
the District’s established payment date, may provide for payments
to be made more frequently than monthly, or may provide that payments
be made less frequently than monthly, provided that in all cases,
subject to subsection (b)(1), above, the unpaid balance and administrative
fee shall be paid in full within twelve (12) months of establishment
of the payment schedule. The agreed upon schedule shall be set forth
in writing and be provided to the consumer.
(4)
Compliance with Plan. The consumer must comply with the agreed upon
payment schedule and remain current as charges accrue in each subsequent
billing period. The consumer may not request a longer payment schedule
for any subsequent unpaid charges while paying delinquent charges
pursuant to a previously agreed upon schedule. Where the consumer
fails to comply with the terms of the agreed upon schedule for sixty
(60) calendar days or more, or fails to pay the consumer’s current
service charges for sixty (60) calendar days or more, the District
may discontinue water service to the consumer’s property at
least five (5) Calendar days after the District posts at the consumer’s
residence a final notice of its intent to discontinue service.
(c)
Reduction of Unpaid Balance. Any consumer who is unable to pay for water service within the District’s normal payment period and meets the three conditions set forth in Section 6-2.103 (c), above, as the District shall confirm, may, if the District has selected this alternative, receive a reduction of the unpaid balance owed by the consumer, not to exceed thirty percent (30%) of that balance without approval of and action by the District’s Board of Directors; provided that any such reduction shall be funded from a source that does not result in additional charges being imposed on other District customers. The proportion of any reduction shall be determined by the consumer’s financial need, the District’s financial condition and needs, and the availability of funds to offset the reduction of the consumer’s unpaid balance.
(1)
Repayment Period. The consumer shall pay the reduced balance by the
due date determined by the District’s General Manager, or his
or her designee, which date (the “Reduced Payment Date”)
shall be at least fifteen (15) calendar days after the effective date
of the reduction of the unpaid balance.
(2)
Compliance with Reduced Payment Date. The consumer must pay the reduced
balance on or before the Reduced Payment Date, and must remain current
in paying in full any charges that accrue in each subsequent billing
period. If the consumer fails to pay the reduced payment amount within
sixty (60) calendar days after the Reduced Payment Date, or fails
to pay the consumer’s current service charges for sixty (60)
calendar days or more, the District may discontinue water service
to the consumer’s property at least five (5) calendar days after
the District posts at the consumer’s residence a final notice
of its intent to discontinue service.
(d)
Temporary Deferral of Payment. Any consumer who is unable to pay for water service within the District’s normal payment period and meets the three conditions set forth in Section 6-2.103 (c), above, as the District shall confirm, may, if the District has selected this alternative, have payment of the unpaid balance temporarily deferred for a period of up to six (6) months after the payment is due. The District shall determine, in its discretion, how long of a deferral shall be provided to the consumer.
(1)
Repayment Period. The consumer shall pay the unpaid balance by the
deferral date (the “Deferred Payment Date”) determined
by the District’s General Manager, or his or her designee. The
Deferral Payment Date shall be within twelve (12) months from the
date the unpaid balance became delinquent; provided, however, that
the District’s General Manager, or his or her designee, in his
or her reasonable discretion, may establish a Deferred Payment Date
beyond that twelve (12) month period to avoid undue hardship on the
consumer.
(2)
Compliance with Reduced Payment Date. The consumer must pay the reduced
balance on or before the Deferred Payment Date, and must remain current
in paying in full any charges that accrue in each subsequent billing
period. If the consumer fails to pay the unpaid payment amount within
sixty (60) calendar days after the Deferred Payment Date, or fails
to pay the consumer’s current service charges for sixty (60)
calendar days or more, the District may discontinue water service
to the consumer’s property at least five (5) calendar days after
the District posts at the consumer’s residence a final notice
of its intent to discontinue services.
The procedure to be used to appeal the amount set forth in any
bill for residential water service is as follows:
(a)
Initial Appeal. Within ten (10) days of receipt of the bill for water
service, the consumer has a right to initiate an appeal or review
of any bill or charge rendered by the District. Such request must
be made in writing and be delivered to the District’s office.
For so long as the consumer’s appeal and any resulting investigation
is pending, the District cannot discontinue water service to the consumer.
(b)
Overdue Notice Appeal. In addition to the appeal rights provided under subsection (a), above, any consumer who receives an Overdue Notice may request an appeal or review of the bill to which the Overdue Notice relates at least five (5) business days after the date of the Overdue Notice if the consumer alleges that the bill is in error with respect to the quantity of water consumption set forth on that bill; provided, however, that no such appeal or review rights shall apply to any bill for which an appeal or request for review under subsection (a), above, has been made. Any appeal or request for review under this subsection must be in writing and must include documentation supporting the appeal or the reason for the review. The request for an appeal or review must be delivered to the District’s office within that five (5) business day period. For so long as the consumer’s appeal and any resulting investigation is pending, the District cannot discontinue water service to the consumer.
(c)
Appeal Hearing. Following receipt of a request for an appeal or review under subsection (a) or (b), a hearing date shall be promptly set before the General Manager, or his or her designee, (the “Hearing Officer”). After evaluation of the evidence provided by the consumer and the information on file with the District concerning the water charges in question, the Hearing Officer shall render a decision as to the accuracy of the water charges set forth on the bill and shall provide the appealing consumer with a brief written summary of the decision.
(1)
If water charges are determined to be incorrect, the District will provide a corrected invoice and payment of the revised charges will be due within ten (10) calendar days of the invoice date for the revised charges. If the revised charges remain unpaid for more than sixty (60) calendar days after the corrected invoice is provided, water service will be disconnected, on the next regular working day after expiration of that sixty (60) calendar day period; provided that the District shall provide the consumer with the Overdue Notice in accordance with Section 6-2.103 (b)(2), above. Water service will only be restored upon full payment of all outstanding water charges, penalties, and any and all applicable disconnection charges.
(2)
a.
If the water charges in question are determined to be correct, the
water charges are due and payable within two (2) business days after
the Hearing Officer’s decision is rendered. At the time the
Hearing Officer’s decision is rendered, the consumer will be
advised of the right to further appeal before the District’s
Board of Directors. Any such appeal must be filed in writing within
seven (7) calendar days after the Hearing Officer’s decision
is rendered if the appeal or review is an initial appeal under subsection
(a) of this section, above, or within three (3) calendar days if the
appeal or review is an Overdue Notice appeal under subsection (b)
of this section, above. The appeal hearing will occur at the next
regular meeting of the District’s Board of Directors, unless
the consumer and District agree to a later date.
b.
For an initial appeal under subsection (a) of this section, above, if the consumer does not timely appeal to the District’s Board of Directors, the water charges in question shall be immediately due and payable. In the event the charges are not paid in full within sixty (60) calendar days after the original billing date, then the District shall provide with the Overdue Notice in accordance with Section 6-2.103 (b)(2), above, and may proceed in potentially discontinuing service to the consumer’s property.
c.
For an Overdue Notice appeal under subsection (b) of this section,
above, if the consumer does not timely appeal to the District’s
Board of Directors, then the water service to the subject property
may be discontinued on written or telephonic notice to the consumer
to be given at least twenty-four (24) hours after the latter to occur
of: (i) the expiration of the original sixty (60) calendar day notice
period set forth in the Overdue Notice; or (ii) the expiration of
the appeal period.
(3)
When a hearing before the Board of Directors is requested, such request
shall be made in writing and delivered to the District at its office.
The consumer will be required to personally appear before the Board
and present evidence and reasons as to why the water charges on the
bill in question are not accurate. The Board shall evaluate the evidence
presented by the consumer, as well as the information on file with
the District concerning the water charges in question, and render
a decision as to the accuracy of said charges.
a.
If the Board finds the water charges in question are incorrect, the consumer will be invoiced for the revised charges. If the revised charges remain unpaid for more than sixty (60) calendar days after the corrected invoice is provided, water service will be disconnected, on the next regular working day after expiration of that sixty (60) calendar day period; provided that the District shall provide the consumer with the Overdue Notice in accordance with Section 6-2.103 (b)(2), above. Water service will be restored only after outstanding water charges and any and all applicable disconnection charges are paid in full.
b.
If the water charges in question are determined to be correct, the water charges are due and payable within two (2) business days after the decision of the Board is rendered. In the event that charges are not paid in full within sixty (60) calendar days after the original billing date, then the District shall provide the consumer with an Overdue Notice in accordance with Section 6-2.103 (c)(2), above, and may proceed in potentially discontinuing water service to the consumer’s property.
c.
Any overcharges will be reflected as a credit on the next regular
bill to the consumer, or refunded directly to the consumer, at the
sole discretion of the Board.
d.
Water service to any consumer shall not be discontinued at any time
during which the consumer’s appeal to the District or its Board
of Directors is pending.
e.
The Board’s decision is final and binding.
To resume or continue water service that has been discontinued by the District due to non-payment, the consumer must pay a security deposit and a Disconnection Fee established by the District, subject to the limitation set forth in Section 6-2.103 (e)(1), above. The District will endeavor to make such reconnection as soon as practicable as a convenience to the consumer. The District shall make the reconnection no later than the end of the next regular working day following the consumer’s request and payment of any applicable Disconnection Fee.
