TO: Mayor and City Councilmembers
FROM: Leanna Pearson, Assistant Finance Director
SUBJECT:
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A Resolution of the Red Bluff City Council Temporarily Suspending the Water and Sewer Standard Reconnection Fee for Utility Bill customers under certain circumstances throughout the Calendar year 2027.
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RECOMMENDED COUNCIL ACTION:
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That the City Council adopt Resolution No. 33-2026 temporarily suspending the Water and Sewer Standard Reconnection Fee for utility bill customers if the fee is a result of disconnection due to a delinquent account shutoff and if it is the first occurrence of this fee being levied on their account in 2027. This resolution would expire on January 1, 2028.
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SUMMARY:
At its September 1, 2026, meeting, the City Council reviewed the City's Water service disconnection policies and procedures and subsequently directed staff to prepare a resolution providing temporary relief from utility reconnection fees associated with delinquent account shutoffs.
The proposed resolution would temporarily suspend the standard utility service reconnection fee for customers whose water or sewer service has been disconnected due to nonpayment. The fee suspension would be limited to one qualifying occurrence per customer during the calendar year and would apply only to reconnections completed during regular Water Department business hours.
The after-hours reconnection fee would remain in effect and would continue to be charged when reconnection services are requested outside of the normal operating hours of 7:00 a.m. to 3:30 p.m. The proposed fee suspension would automatically terminate on January 1, 2028.
PREVIOUS COUNCIL ACTION:
The City Council adopted Ordinance 1025 on December 3, 2013, amending Red Bluff City Code 24.22 Time and Place of Payment; Delinquencies. Section (D)(1) established a charge for opening and closing the street valve following a disconnection.
On June 5, 2012, the City Council approved the Public Works Fee Schedule setting that fee at $32.00 during crew working hours and $53.00 after crew working hours.
On July 21, 2026, the City Council directed staff to move forward with Scenario 3, a phased-in option, for the Water rate increase and Scenario 3, a cash-funded Low CIP option, for the Sewer rate increase.
On September 1, 2026, the City Council directed staff to draft a resolution to temporarily suspend the standard reconnection fee if water rates were to increase.
On October 6, 2026, the City Council adopted Resolution No. 30-2026 amending the Water and Sewer Rates pursuant to Proposition 218.
DISCUSSION:
The City of Red Bluff provides water and sewer utility services to approximately 14,400 residents through roughly 4,600 active service connections. On average, the Finance Department initiates between 20 and 25 service disconnections each month as a result of delinquent utility accounts. More than half of those services are restored on the same day, while approximately 10 to 15 percent of service disconnections ultimately result in the establishment of a new customer account.
The City employs numerous measures to avoid service discontinuation whenever possible, including the availability of payment arrangements and delinquent account amortization plans for customers experiencing financial hardship. Despite these efforts, service disconnections are occasionally necessary when accounts remain unpaid and alternative payment arrangements have not been established.
Pursuant to the City's adopted fee schedule, a reconnection fee is assessed whenever utility service is restored following a delinquency-related disconnection. The current standard reconnection fee is $32.00 for reconnections performed during regular business hours and $53.00 for reconnections requiring after-hours response by Water Department personnel. In addition, a deposit of $75.00 may be required when a deposit is not currently on file. These fees have remained unchanged since their adoption in 2012.
Recognizing the cumulative financial impacts associated with utility rate adjustments approved by the City Council on October 6, 2026, and seeking to provide customer relief during the initial implementation period, the Council directed staff to prepare a resolution suspending the standard reconnection fee under specified circumstances.
Under the proposed resolution, the standard reconnection fee would be waived for utility customers whose service is disconnected for nonpayment and subsequently reconnected during regular business hours, provided the customer has not previously received a reconnection fee waiver during calendar year 2027. The waiver would be limited to a customer's first qualifying delinquency-related reconnection during the calendar year.
The after-hours reconnection fee would remain in effect and would not be eligible for waiver under the proposed program. The temporary fee suspension would expire on January 1, 2028, unless extended or otherwise modified by subsequent action of the City Council.
CITY FISCAL IMPACT:
During the preceding twelve-month period, the City assessed 254 reconnection fees associated with delinquent account service disconnections. Of those fees, 18 were assessed at the after-hours rate at the request of the utility customer, 51 were subsequently removed due to the establishment of a new customer account, and 49 were assessed to accounts that had previously paid a reconnection fee during the same twelve-month period.
Had the proposed resolution been in effect during that timeframe, approximately 136 standard reconnection fees would have qualified for a waiver. Based on the current standard reconnection fee of $32.00, the estimated reduction in annual revenue would have been approximately $4,352.
Accordingly, if delinquent account disconnection and reconnection activity remains consistent with historical levels, the proposed temporary fee suspension is expected to result in an estimated revenue reduction of approximately $4,352 to the Water Operating Fund during calendar year 2027. The actual fiscal impact may vary depending on customer participation and delinquency trends. Revenue associated with after-hours reconnection fees would not be affected by the proposed resolution and would continue to be collected in accordance with the City's adopted fee schedule.
ATTACHMENTS:
1. Ordinance Water
2. CITY OF RED BLUFF Schedule of Fees and Charges-7.1.24
CITY COUNCIL RESOLUTION NO. 33-2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RED BLUFF TEMPORARILY SUSPENDING THE STANDARD UTILITY RECONNECTION FEE FOR DELINQUENCY-RELATED SERVICE DISCONNECTIONS DURING CALENDAR YEAR 2027.
WHEREAS, the City of Red Bluff provides water and sewer utility services to residents and businesses throughout the City; and
WHEREAS, pursuant to the City's adopted fee schedule, a reconnection fee is assessed when utility service is restored following a service disconnection resulting from a delinquent utility account; and
WHEREAS, the City Council adopted Resolution No. 30-2026 on October 6, 2026, approving adjustments to water and sewer utility rates; and
WHEREAS, the City Council recognizes that utility rate adjustments may create financial challenges for some utility customers; and
WHEREAS, at its September 1, 2026, meeting, the City Council directed staff to prepare a resolution providing temporary relief from reconnection fees for customers whose utility service has been disconnected due to nonpayment; and
WHEREAS, the City Council finds that a temporary suspension of the standard reconnection fee for a customer's first delinquency-related reconnection during calendar year 2027 serves a valid public purpose by providing limited financial relief while maintaining incentives for timely payment of utility charges; and
WHEREAS, the City Council further finds that after-hours reconnection fees should remain in effect in order to recover costs associated with staff response outside of normal business hours.
NOW THEREFORE, BE IT RESOLVED ON OCTOBER 20, 2026, BY THE CITY COUNCIL OF THE CITY OF RED BLUFF:
hereby approves a Temporary Suspension of the Standard Reconnection Fee or any utility customer whose water and/or sewer service has been disconnected due to a delinquency, provided that: (1) The reconnection occurs during regular City business hours and; (2) The disconnection resulted from the City's delinquent account shutoff process and; (3) The customer has not previously received a reconnection fee waiver under this Resolution during calendar year 2027.
The provisions of this Resolution shall become effective on January 1, 2027, and shall remain in effect through December 31, 2027. This Resolution shall automatically expire on January 1, 2028, unless extended, amended, or repealed by subsequent action of the City Council.
MOTION:
SECOND:
AYES:
NOES:
ABSENT/NOT VOTING:
ATTEST: ___________________________
Mayor’s Signature
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Deputy City Clerk