Memo Water Turn Off PenaltyTO William P. Craig
FROM John E. Schedler
INTER - OFFICE MEMO
1
SUBJECT Water Turn -off Fee /Delinquent penalty
CITY OF HOPKINS
1010 FIRST STREET SOUTH PHONE: 095 -9414
HOPKINS, MINNESOTA 55343
DATE November 15, 19 84
When a utility account becomes approximately 30 days delinquent, a shut -off notice
is generated by the computer giving the account another 7 days to make the bill current
or the ordinances require service to be terminated. These notices generate many types
of responses - prompt payment, promised payment (some promises not kept) total silence,
etc: - For the accounts for "which "no - action" is a" "shut -off list given
to the Water Superintendent. He tries to contact the account by phone or a personal
visit.
As we proceed with these steps, more payments are received. In the end there seems to
be a few accounts (repeaters) that do not respond or fail to keep the arranged payment
schedule and the crews then go out to shut off the water. Often someone then meets
the crew with a payment or promises that they will get a payment to City Hall that day
or early the next day. In the past the shut -off fee has not been assessed in these
situations. It is not fair to the many citizens of Hopkins, who promptly pay or pay
on the first reminder that they are delinquent, that the City spend so much effort to
secure a payment. When the city has to go to the expense of dispatching a crew to
shut off the water, the shut -off fee should become due and payable at the time of
dispatching a crew. The service should not be continued until the bill and shut -off
fee are paid in full.
Considering the unnecessary administrative and labor force costs involved, I recommend
a "special shut -off charges" section, with a $ 35.00 fee assessable when it becomes
necessary to dispatch a crew for the purpose of shuting off the water service, be added
to the ordinance establishing utility rates for 1985.
In converting the utility billing proceedure to the new computer, I had occasion to
work more closely with some citizens. I found that the 5% late charge is ineffectual,
and practically ignored by customers, to attain prompt payments. The penalty should
be raised to a more current financing charge level.
I recommend the current 5% penalty be increased to 6% on delinquent water and sewer
charges.
I have attached a reworded ordinance for establishing 1985 utility rates which in-
corporates these suggestions.