Memo Dwight Verxa AppearanceCITY OF HOPKINS
MEMORANDUM
to
Date: August 1, 1991
To: Honorable Mayor & City Council
From: Steven C. Mielke, City Manager
Subject: Appearance - Dwight Yerxa, Vic's Red Door
Mr. Dwight Yerxa, owner of Vic's Red Door has asked to
appear before the City Council to discuss some concerns and
complaints that her has regarding our practices and
procedures for utility billing and the handling of
delinquent accounts.
Background
On the 17th of July, the Water,Department delivered a shut-
off notice to Vic's Red Door and informed Mr. Yerxa that the
service would be terminated if he failed to make payment on
his account. He was also informed that the City required a
$35.00 fee to cover the cost of our following up on
delinquent accounts.
Mr. Yerxa came to City Hall to basically object to the
$35.00 fee and to complain about our policies on the
collection of utility bills.
After extensive discussion, the staff eventually agreed not
to charge the $35.00 reconnection fee since, in fact, the
service was never disconnected, but Mr. Yerxa continued to
be disgruntled over our collection - system and argued that
delinquent accounts could merely pile up in our accounts
receivable and add the amount to the tax bills at the end of
each year. We informed Mr. Yerxa that a policy of that
type would cause severe problems with our cash flow and if
extensively used, would cause our expenses to significantly
increase and thus, our utility billing charges would have to
increase.
Analysis
Attached to this memorandum is a recap of the Vic's Red Door
account.
During the past nine months, late notices (pink notice) have
been sent five time and shut -off notices (green notice) have
been sent three times.
Also enclosed is a copy of our code relating to charges for
reconnecting services (715.21 and our utility billing
collection policy.
Summary
Each month, we send an extensive list of late notices to
both residential and commercial customers. Commercial
accounts are billed monthly while residential'accounts are
billed quarterly. While the policies in place are intended
to encourage people to pay their utility bill on a
reasonable time frame, we do attempt to keep track of the
number and costs associated with sending off reminders and
shut -off notices. We have estimated that the actual cost
for our expenses in collecting delinquent accounts is closer
to $45.00 per account than the current charge of $35.00.
In addition, the current language in our ordinance (715.21
requires that the water service actually be disconnected
before we can charge the $35.00 fee. We will be proposi g
in a future ordinance that the delinquent fee for shut -offs
be charged whether or not the water is actually shut off, so
as to help cover the administrative expense involved in
collecting delinquent accounts.
-- Sd @sOB `
Recap of D. Yerxa 43- 300660 -0 Vic's Red Door
Month -ly Bi.l,ling Pink Notice Green Notice Date= Paid
October 1990 10 -17 -90
November 1990 Sent Out _ 12 -03 -90
December 1990 Sent Out `ien't Out 01- 09 -91,
January 1991 01--09--91
_February ' I 99_1 02-12-91
March 1991 Sent Out 04 -01 -91
April 1991 Sent Out Sent Out 05 -20 -91
May 1991 -_ 05 -20 -91
June 1991 Sent Out Sent Out 07 -17 -91
July 1991 07 -17 -91
John - --
Thought - 1, -',d, wor.k�._up a- cheat sheet for you Mr. Yerxa .
Just wanted to list which notices were sent out.
Hopkins City Code 715.17
l 715.17. Service disconnections Failure to pay any account on or before the
due date, or the failure to maintain any deposit as Aereinabove required or the
failure to secure and file a written guarantee as provided in 715.15 is
sufficient cause or reason to disconnect city water service to any such customer
or premises.
715.19. Unpaid charges Unpaid water and sewer bills shall be certified to the
county director of property taxation for collection as other charges pursuant to
Minnesota Statutes, section 444.075, subdivision 3, and council resolution
82 -3039 as amended from time to time.
715.21. Charges for re- connecting If water service' is disconnected for
non - payment of water or sewer service charges, the service may not be
--� re- connect @d until all unpaid water and sewer service charges shall have been
paid in full together with the additional sum of $35 for such re- connection.
715.23. Inspections The manager shall have the right of access at all
reasonable hours of the day to enter any and all parts' of any home, dwelling or
other premises for the purpose of examination of sewer and water connections,
including meter reading, repairs, disconnections and any other - related purpose.
•
UTILITY BILL COLLECTION POLICY
•
1. PURPOSE
1.01 The purpose of this policy is to establish procedures to ensure a more
timely collection of utility bills.
2. POLICY
2.01 Utility Bills Utility bills will be sent out on the third working day
of the month; due in 20 days. Payments that are received in the mail will
not be charged a penalty if postmarked before the due date. Payments
received in the night deposit by 8:00 AM the day after the due date will
not be charged a penalty. A penalty of 10% of the water and sewer bill
will be charged if the bill becomes delinquent.
2.02 Reminder Notices Reminder notices will be sent out three days after the
bills become delinquent; with seven (7) days allowed for payment.
Accounts with a $30.00 or more balance will be included.
2.03 Shut Off Notices Shut Off notices will be sent out the day after the
due date on the reminder notice; with ten (10) days allowed for payment.
2.04 Shut Off Door Tags If the City is not contacted by the customer or has
not received payment on the account, the billing clerk will prepare
shut off door tags and request the Water Department to terminate service
and place the tag on the building without_ any further contact or acceptance
of payment.
3. FINANCIAL DIFFICULTY CASES
3.01 Customers may have a 15 day extension and must pay 40% of the bill.
Balance is due in thirty days.
4. EXTENSIONS
4.01 One extension per household is permitted. If customer fails to meet
deadline, services will be shut off without further notice. No extensions
on extensions. Person calling will be informed of this.
5. SERVICE DISCONTINUATION POLICY
5.01 Refuse service will not be stopped without''the water being shut off and
the refuse cans picked up.* In any event, refuse service will not be
stopped for any period of time less than 90 days.
Extra refuse services cannot be changed for any period less than six months.
* If water is not turned off, the City has no way to immediately know when
the residence is again being occupied in order to restore refuse service.