TO: Mayor and City Council Members
FROM: Leanna Pearson, Assistant Finance Director
SUBJECT:
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Consideration and Direction to Staff Regarding the City’s Current Water Shutoff Policy and Procedures
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RECOMMENDED COUNCIL ACTION:
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1. Review and discuss the City’s current Water Shutoff Policy and related procedures; and
2. Provide direction to staff as to whether the City’s current water shut-off policy and efforts to avoid shut-off requires revision.
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SUMMARY:
The City of Red Bluff conducts water service shutoffs for delinquent accounts on a monthly basis. Under the City’s current policy, accounts that are at least 60 days past due are eligible for disconnection. The City’s procedures are designed to provide customers with multiple opportunities to bring their accounts current or establish payment arrangements before service is disconnected.
The finance department initiates between 20-25 shutoffs monthly. Over half of those accounts are reconnected the same day. Around 10%-15% result in a new customer sign-up. The City makes every attempt possible to mitigate utility shutoff by offering past due amortization plans to any customer who makes this request. Before the August 26, 2026, scheduled shutoff, the City had 11 active payment arrangements in place. Once service has been disconnected, a reconnection fee is charged to the account, and a deposit may be required.
PREVIOUS COUNCIL ACTION:
The last update to AP&P 18-11b-Shutoff Policy for Delinquent Water and Sewer Service was adopted by the City Council at their meeting on November 5, 2019.
DISCUSSION:
Staff recognize that water service is an essential service and that delinquent utility accounts may result from a variety of financial or personal circumstances. The City's procedures therefore provide multiple opportunities for customers to communicate with staff and resolve delinquency before service is disconnected.
Senate Bill 998, approved by the Governor of California on September 28, 2018, established the “Water Shutoff Protection Act”. This was later expanded through Senate Bill 3 on October 13, 2023.
Key requirements of this act include:
• A written shutoff policy in English and other designated languages, posted on the City’s website.
• Procedures of how and when to contact, owners, landlords, and tenants before shutoff.
• A medical exemption to shutoff if certain requirements are met and payment arrangements are made.
• Guidelines to reconnection fees that range between $50 -$150 depending on time of reconnection. (Outside of operational hours.)
• No discontinuation of service until a payment is at least 60 days past due.
The City’s water shutoff policy can be found on the City’s website in 6 languages as required and details the steps taken by the City before disconnection:
The City:
1. Allows an account to become at least 60 days past due before shutoff.
2. Provides advance written notice 15 days prior to disconnection.
3. Provides an additional notice immediately before shutoff 48 hours prior to disconnection.
4. Makes an individual telephone contact attempt the Friday prior to disconnection.
5. Provides door tags for customers that qualify for an additional property notice when appropriate.
6. Offers payment arrangements that amortize past due balances up to 12 months.
7. Provides medical accommodation when applicable.
8. Does not charge interest or late fees on delinquent balances.
9. Provides a process to dispute charges or request an investigation.
10. Provides information regarding outside assistance.
11. Allows service to be reconnected once the account requirements are satisfied.
An option to make payment arrangements to avoid shutoff is included in the phone call, on the back of all past due bills, and posted on the website. Past due amounts can be amortized over a period up to 12 months depending on the amount due and ability to pay.
When an account has been shutoff for delinquency, the City's current reconnection charges are conservative. The current reconnection fee is $32, with an after-hours reconnection fee of $53. After-hours reconnection fees are charged when an employee from the Water Department is dispatched after 3:30 pm. A $75 deposit may also be required where a prior deposit is no longer on file. These fees have not been adjusted since 2012.
CITY FISCAL IMPACT:
There is no fiscal impact associated with continuing the City's existing Water Shutoff Policy and procedures.
Should the City Council direct staff to develop specific policy amendments, staff would return with recommendations identifying any anticipated administrative, operational, or fiscal impacts associated with those changes.
ATTACHMENTS:
1. Water Shut-Off Policy - English
2. City Code - Water
3. Schedule of Fees - Water Turn-off
4. Late Notice - Back