Resolution Number 20-01-21-02RESOLUTION NO. 20-01-21-02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE CITY OF
SAN JUAN CAPISTRANO CALIFORNIA, ADOPTING A POLICY ON
RESIDENTIAL WATER SERVICE
WHEREAS, the City of San Juan Capistrano ("City") is a municipal
corporation, duly organized under the California Constitution and laws of the State of
California;
WHEREAS, the City operates a public water system that supplies water to
residential, commercial, and industrial customers;
WHEREAS, in 2018, the California Legislature adopted Senate Bill 998,
which imposes new and expanded customer protections regarding discontinuance of
residential water service for nonpayment and related matters;
WHEREAS, California Health and Safety Code Section 116906 requires
each urban and community water system, including the City, to have a written policy on
discontinuance of residential service for nonpayment, and such written policy must
address specified subjects required by law; and,
WHEREAS, the City Council desires to adopt the Policy on Residential
Water Service ("Policy") attached to this Resolution as Exhibit A.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Recitals set forth above are true and correct and are incorporated
into this Resolution by this reference.
Section 2. The City's adoption of the Policy does not constitute a "project" for
purposes of the California Environmental Quality Act ("CEQA") because it does not have
a potential for resulting in either a direct physical change in the environment, or a
reasonably foreseeable indirect physical change in the environment, and also constitutes
continuing administrative activities relating to water service. (State CEQA Guidelines, §
15378(a), (b)(2).) Further, even if the adoption of the regulations were to constitute a
project for purposes of CEQA, it is exempt pursuant to State CEQA Guidelines section
15061(b)(3), on grounds it can be seen with certainty that the adoption of the regulations
will not result in causing a significant effect on the environment.
Section 3. The City Council hereby adopts the Policy set forth in Exhibit A.
Section 4. If any provision of this Resolution or the application of any such
provision to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution that can be given effect without the
invalid provision or application, and to this end the provisions of this Resolution are
`'J severable. The City Council declares that the City Council would have adopted this
Resolution irrespective of the invalidity of any particular portion of this Resolution
Section 5. The documents and materials associated with this Resolution that
constitute the record of proceedings on which these findings are based are located at San
Juan Capistrano City Hall, 32400 Paseo Adelanto, San Juan Capistrano, California
92675. The City Clerk is the custodian of the record of proceedings.
Section 6. This Resolution shall take effect on February 1, 2020. The Policy shall
apply to all water bills issued on and after that date.
PASSED, APPROVED, AND ADOPTED this 2151 day of January 2020.
/�iI/per//_/L 1
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby certify
that the foregoing Resolution No. 20-01-21-02 was duly adopted by the City Council of
the City of San Juan Capistrano at a Regular meeting thereof, held the 21 s' day of January
40, by the following vote:
L MEMBERS:
Reeve, Maryott, Farias, Taylor and Mayor Bourne
L MEMBERS:
None
- MEMBERS:
None
POLICY ON RESIDENTIAL WATER SERVICE
Adopted by Resolution No. 20-01-21-02 of the City Council of
the City of San Juan Capistrano on January 21, 2020.
1. Application of Policy. This Policy on Residential Water Service (this "Policy") shall apply
to all City accounts for residential water service and other services billed on the same bill. Except
as provided in Section 6, this Policy shall not apply to any accounts for non-residential service.
To the extent this Policy conflicts with any other rules, regulations, or policies of the City, this
Policy shall control.
2. Contact Information. For questions or assistance regarding your water bill, the City's
Customer Service staff can be reached at (949) 493-1515. Customers may also visit the
Customer Service desk in City Hall during business hours. City Hall is located at 32400 Paseo
Adelanto.
3. Billing Procedures. Water service charges are payable to the City once every month or
at such other frequency as determined by the City Council. All bills are due and payable upon
receipt. Any bills not paid by the due date stated on the bill are considered delinquent. An 8%
late charge is assessed for bills not paid within 41 days from the billing date. Bills not paid within
55 days from the billing date are subject to a fee for delinquency notification.
4. Discontinuation of Water Service for Nonpayment. If a bill is delinquent for at least
sixty (60) days, the City may discontinue water service to the service address and impose a
service address posting fee.
4.1 Written Notice to Customer. The City will provide a mailed notice to the customer
of record at least fifteen (15) days before discontinuation of water service. The notice will contain:
(a) the name and address of the customer;
(b) the amount of the delinquency;
(c) the date by which payment or payment arrangements must be made to
avoid discontinuation of service;
(d) the procedure by which the customer may initiate a complaint or request
an investigation or appeal concerning service or charges;
(e) a description of the procedure by which the customer may request an
alternative payment arrangement, which may include an extension,
amortization, or alternative payment schedule;
(f) the procedure for the customer to obtain information on financial
assistance, if applicable; and
(g) the telephone number where the customer may request a payment
arrangement or receive additional information from the City.
4.2 Written Notice to Occupants or Tenants. (�
(a) The City will also send a notice to the occupants living at the service f
address at least ten (10) days before discontinuation of water service under the following
circumstances: (1) the City furnishes individually metered service to a single-family dwelling,
multi -unit residential structure, mobile home park, or farm labor camp and the owner, manager,
or operator is the customer of record, and such owner, manager, or operator is not also the
occupant of the residence; or (2) the customer of record's mailing address is not the same as the
service address. The notice will be addressed to "Occupant," will contain the information required
in Section 4.1 above, and will inform the residential occupants that they have the right to become
customers of the City without being required to pay the amount due on the delinquent account.
Terms and conditions for occupants to become customers of the City are provided in Section 9
below.
(b) If the City furnishes water through a master meter in a multi -unit residential
structure, mobile home park, or permanent residential structures in a labor camp and the owner,
manager, or operator is the customer of record, the City will make a good faith effort to inform the
occupants, by means of written notice posted on the door of each residential unit at least fifteen
(15) days prior to termination, that the account is in arrears and the service will be terminated on
a date specified in the notice. If it is not reasonable or practicable to post the notice on the door
of each unit, the City will post two (2) copies of the notice in each accessible common area and
at each point of access to the structure or structures. The notice will inform the residential
occupants that they have the right to become customers of the City without being required to pay
the amount due on the delinquent account. The notice will also specify what the occupants are
required to do in order to prevent termination of, or to reestablish service; the estimated monthly
cost of service; the title, address, and telephone number of a representative of the City who can
assist the occupants in continuing service; and the address or telephone number of a qualified Fl�l
legal services project that has been recommended by the local county bar association. Terms
and conditions for occupants to become customers of the City are provided in Section 9 below.
4.3 In -Person or Telephonic Notice. The City will also make a reasonable, good faith
effort to contact the customer of record or adult person living at the premises of the customer in
person or by telephone at least seven (7) days before discontinuation of service. The City will
offer to provide in writing a copy of this Policy and to discuss options to avert discontinuation of
water service for nonpayment, including the possibility of an extension or other payment
arrangement.
4.4 Postina of Notice at Service Address. If the City is unable to make contact with
the customer or an adult person living at the service address in person or by telephone, the City
will make a good faith effort to leave a notice of imminent discontinuation of residential service
and a copy of this Policy in a conspicuous place at the service address. The notice and copy of
this Policy will be left at the residence at least forty-eight (48) hours before discontinuation of
service. The notice will include:
(a) the name and address of the customer;
(b) the amount of the delinquency;
(c) the date by which payment or payment arrangements must be made to -�
avoid discontinuation of service;
i
K1
(d) the procedure for the customer to obtain information on financial
assistance, if applicable; and
(e) the telephone number where the customer may request a payment
arrangement or receive additional information from the City.
4.5 Circumstances Under Which Service Will Not Be Discontinued. The City will not
discontinue residential water service for nonpayment under the following circumstances:
(a) During an investigation by the City of a customer dispute or complaint
under Section 5.1 below;
(b) During the pendency of an appeal to the City Council under Section 5.3
below; or
(c) During the period of time in which a customer's payment is subject to a
City -approved extension, amortization, or alternative payment schedule
under Section 7 below, and the customer remains in compliance with the
approved payment arrangement.
4.6 Circumstances Under_ Which Service Throuah a Master Meter Will Not Be
Discontinued. If the City furnishes water through a master meter in a multi -unit residential
structure, mobile home park, or permanent residential structures in a labor camp and the owner,
manager, or operator of the dwelling, structure, or park is the customer of record, the City will not
discontinue residential water service for nonpayment under the following circumstances:
(a) When the customer's indebtedness is owed to another public agency, or
when the obligation represented by the delinquent account or indebtedness was incurred with any
public agency other than the City's water utility;
(b) If a delinquent account relates to another property owned, managed, or
operated by the customer;
(c) If a public health or building officer certifies that termination would result in
a significant threat to the health or safety of the residential occupants or the public.
4.7 Special Medical and Financial Circumstances Under Which Services Will Not Be
Discontinued.
(a) The City will not discontinue water service if all of the following conditions
are met:
(i) The customer, or a tenant of the customer, submits to the City the
certification of a licensed primary care provider that discontinuation
of water service will be life threatening to, or pose a serious threat
to the health and safety of, a resident of the premises where
residential service is provided;
(ii) The customer demonstrates that he or she is financially unable to
pay for residential service within the City's normal billing cycle. The
customer is deemed financially unable to pay during the normal
3
billing cycle if: (a) any member of the customer's household is a
current recipient of CalWORKs, CalFresh, general assistance,
Medi -Cal, Supplemental Security Income/State Supplementary
Payment Program, or California Special Supplemental Nutrition
Program for Women, Infants, and Children, or (b) the customer
declares under penalty of perjury that the household's annual
income is less than 200 percent of the federal poverty level; and
(iii) The customer is willing to enter into an alternative payment
arrangement, including an extension, amortization, or alternative
payment schedule with respect to the delinquent charges.
(b) For any customers who meet all of the above conditions, the City shall offer
the customer one of the following options, to be selected by the City in its
discretion: (1) an extension of the payment period; (2) amortization of the
unpaid balance; or (3) an alternative payment schedule. The City's Chief
Financial Officer will select the most appropriate payment arrangement,
taking into consideration the information and documentation provided by
the customer, as well as the City's payment needs.
(c) The customer is responsible for demonstrating that the conditions in
subsection (a) have been met. Upon receipt of documentation from the
customer, the City will review the documentation within seven (7) days and:
(1) notify the customer of the alternative payment arrangement selected by
the City and request the customer's signed assent to participate in that
alternative arrangement; (2) request additional information from the
customer; or (3) notify the customer that he or she does not meet the !
conditions in subsection (a).
(d) The City may discontinue water service if a customer who has been
granted an alternative payment arrangement under this section fails to do
any of the following for sixty (60) days or more: (a) to pay his or her unpaid
charges by the extended payment date; (b) to pay any amortized amount
due under the amortization schedule; (c) to pay any amount due under an
alternative payment schedule; or (d) to pay his or her current charges for
water service. The City will post a final notice of intent to disconnect service
in a prominent and conspicuous location at the service address at least five
(5) business days before discontinuation of service. The final notice will
not entitle the customer to any investigation or review by the City.
4.8 Time of Discontinuation of Service. The City will not discontinue water service due
to nonpayment on a Saturday, Sunday, legal holiday, or at any time during which the City's office
is not open to the public.
4.9 Restoration of Service. Customers whose water service has been discontinued
may contact the City by telephone or in person regarding restoration of service. Restoration shall
be subject to payment of: (a) any past -due amounts, including applicable interest or penalties; (b)
any reconnection fees, subject to the limitations in Section 8.1, if applicable; (c) and a security
deposit, if required by the City.
5. Procedures to Contest or Appeal an Incorrect Bill.
n
5.1 Time to Initiate Complaint or Request an Investigation. A customer may initiate a
complaint or request an investigation regarding the amount of a bill within five (5) days of receiving
a disputed bill. For purposes of this Section 5.1 only, a bill shall be deemed received by a
customer five (5) days after mailing and immediately upon e -mailing. A customer may initiate a
complaint or request an investigation by calling (949) 493-1515 or by submitting a written request
and supporting documentation to City of San Juan Capistrano, 32400 Paseo Adelanto, San Juan
Capistrano, CA 92675.
5.2 Review by City. A timely complaint or request for investigation shall be reviewed
by a manager of the City, who shall provide a written determination to the customer. The review
will include consideration of whether the customer may receive an extension, amortization, or
alternative payment schedule under Section 7. The City may, in its discretion, review untimely
complaints or requests for investigation; however, such complaints or requests are not subject to
appeal.
5.3 Appeal to City Council. Any customer whose timely complaint or request for an
investigation pursuant to this Section 5 has resulted in an adverse determination may appeal the
determination to the City Council by filing a written notice of appeal with the City Clerk within ten
(10) business days of the City's mailing of its determination. Upon receiving the notice of appeal,
the City Clerk will set the matter to be heard at an upcoming City Council meeting and mail the
customer written notice of the time and place of the hearing at least ten (10) days before the
meeting. The decision of the City Council shall be final.
5.4 Customer Responsibility for Actual Water Use. Customers are responsible for all
actual water use on the property, including leaks. This includes a responsibility to maintain
irrigation systems on the property and household plumbing such that any leaks are detected and
U repaired in a timely manner so as to reduce the risk of usage due to leaks. Customers may,
however, be eligible for a water loss adjustment as provided in Section 6 below.
6. Water Loss Adjustments
6.1 Request for Adjustment: Required Documentation. Notwithstanding Section 5.4,
the City may, upon written request of a customer, adjust a customer's bill in the case of loss of
water due to circumstances beyond the customer's reasonable control, such as a mechanical
malfunction, blind leak, theft of water, vandalism, unexplained water loss or other unusual or
emergency conditions. Adjustments will not be made for faucet leaks. The customer's request
must be supported by repair bills or other appropriate documentation. This Section 6 applies to
both residential and non-residential accounts of the City.
6.2 Determination by City. The determination of whether an adjustment is granted will
be made at the sole discretion of the City's Chief Financial Officer or his or her designee; the
determination will be final and is not subject to appeal. In making the determination, the City may
take into account the cause of water loss, the customer's opportunity, if any, to detect it, any
negligence or fault of the customer in connection therewith, and the promptness with which the
water loss was discovered, stopped and repairs made. For the customer to be eligible for an
adjustment, the City must find all of the following after investigation:
(a) There was no evidence that the excessive use was due to the intentional
or negligent act of the customer, or non -responsiveness of the customer to
warning signals such as higher water and/or sewer bills, leak notifications,
5
visible water, or other factors that should have made the customer
reasonably aware of the existence of a leak;
(b) No third party responsible for water loss at the customer's property can be
pursued for reimbursement by the customer;
(c) After being notified by the City via heightened billing, letter, door hanger, or
by any other means, the customer took prompt and reasonable action to
ascertain the cause of the excessive use and to correct it; and
(d) The customer took corrective action immediately upon discovering or being
notified of a leak, and provided the City with satisfactory evidence that the
leak was repaired (copy of repair service bill, etc.).
6.3 Calculation of Adjustment Amount. If granted, the adjustment of the customer's
bill will be calculated as follows:
(a) The amount of the excess cost will be determined by taking the difference
between the total cost of utility service for the bill in question less the total
cost of utility service for the billing period immediately preceding that bill.
(b) The Customer is responsible for paying one-half of the amount calculated
in subsection (a). The City will credit the customer's account the other one-
half of the amount; provided, however, that the City shall under no
circumstance provide a credit in excess of $300.
6.4 Additional Conditions. 7
(a) Water loss adjustments will be limited to one adjustment every five years.
The five-year period begins at the end of the last billing period for which a
water loss adjustment was granted.
(b) Water consumption not subject to the water loss calculation shall be billed
at the appropriate tier and tier rate.
7. Extensions and Other Alternative Payment Arrangements.
7.1 Time to Reauest an Extension or Other Alternative Payment Arrangement. If a
customer is unable to pay a bill during the normal payment period, the customer may request an
extension or other alternative payment arrangement described in this Section 7. If a customer
submits his or her request within thirteen (13) days after mailing of a written notice of
discontinuation of service by the City, the request will be reviewed by a manager of the City. At
his or her own discretion, the City's Chief Financial Officer may consider requests for an extension
or other alternative payment arrangement described in this Section 7 either before or after the
thirteen (13) day period referenced in this Section 7. City decisions regarding extensions and
other alternative payment arrangements are final and are not subject to appeal to the City Council.
As an inducement to enter into a payment arrangement, or for other purposes benefiting the City,
the City's Chief Financial Officer may at his or her own discretion waive one or more 8% late
charges applied to an account.
7.2 Extension. If approved by the City, a customer's payment of his or her unpaid
balance may be temporarily extended for a period not to exceed six (6) months after the balance
was originally due. The City's Chief Financial Officer shall determine, in his or her discretion, how
long an extension shall be provided to the customer. The customer shall pay the full unpaid
balance by the date set by the City and must remain current on all water service charges accruing
during any subsequent billing periods.
7.3 Amortization. If approved by the City, a customer's payment of his or her unpaid
balance may be amortized over a period not to exceed twelve (12) months, as determined by the
City's Chief Financial Officer, in his or her discretion. If amortization is approved, the unpaid
balance will be divided by the number of months in the amortization period, and that amount will
be added to the customer's monthly bills for water service until fully paid. During the amortization
period, the customer must remain current on all water service charges accruing during any
subsequent billing periods. At the City's Chief Financial Officer's sole discretion, a period longer
than twelve (12) months may be used for the amortization period to avoid undue hardship based
on the circumstances of the individual case.
7.4 Alternative Payment Schedule. If approved by the City, a customer may pay his
or her unpaid balance pursuant to an alternative payment schedule that will not exceed twelve
(12) months, as determined by the City's Chief Financial Officer, in his or her discretion. If
approved, the alternative payment schedule may allow periodic lump -sum payments that do not
coincide with the City's established payment date or may provide for payments made more or
less frequently than the City's regular payment date. During the period of the alternative payment
schedule, the customer must remain current on all water service charges accruing during any
subsequent billing periods.
7.5 Failure To Comply. The City may terminate water service if a customer who has
been granted a payment arrangement under this Section 7 fails to make a payment due under
the payment arrangement, and at least 60 days have passed since the original bill became
delinquent. Under such circumstances, the City may terminate service after posting only a final
notice of intent to disconnect service in a prominent and conspicuous location at the service
address at least five (5) business days before discontinuation of service. The final notice will not
entitle the customer to any investigation or review by the City.
8. Specific Programs for Low -Income Customers.
8.1 Reconnection Fee Limits and Waiver of Interest. For residential customers who
demonstrate to the City a household income below 200 percent of the federal poverty line, the
City will limit any reconnection fees during normal operating hours to fifty dollars ($50), and during
non -operational hours to one hundred fifty dollars ($150). The limits will only apply if the City's
reconnection fees actually exceed these amounts. These limits are subject to an annual
adjustment for changes in the Bureau of Labor Statistics' Consumer Price Index for All Urban
Consumers (CPI -U) beginning January 1, 2021.
8.2 Qualifications. The City will deem a residential customer to have a household
income below 200 percent of the federal poverty line if: (a) any member of the household is a
current recipient of CalWORKs, CalFresh, general assistance, Medi -Cal, Supplemental Security
Income/State Supplementary Payment Program, or California Special Supplemental Nutrition
Program for Women, Infants, and Children, or (b) the customer declares under penalty of perjury
that the household's annual income is less than 200 percent of the federal poverty level.
7
9. Procedures for Occupants or Tenants to Become Customers of the City.
9.1 Applicability. This Section 9 shall apply only when the property owner, landlord,
manager, or operator of a residential service address is listed as the customer of record and the
customer of record is not the resident using water on the property and has been issued a notice
of intent to discontinue water service due to nonpayment.
9.2 Agreement to City Terms and Conditions of Service. The City will make service
available to the actual residential occupants if each occupant agrees to the terms and conditions
of service to become a customer of the City and meets the requirements of the City's rules and
regulations. Notwithstanding, if one or more of the occupants are willing and able to assume
responsibility for the subsequent charges to the account to the satisfaction of the City, or if there
is a physical means, legally available to the City, of selectively discontinuing service to those
occupants who have not met the requirements of the City's rules and regulations, the City shall
make service available to the occupants who have met those requirements.
9.3 Verification of Tenancy. To be eligible to become a customer without paying the
amount due on the delinquent account, the occupant shall verify that the delinquent account
customer of record is or was the landlord, manager, or agent of the dwelling. Verification may
include, but is not limited to, a lease or rental agreement, rent receipts, a government document
indicating that the occupant is renting the property, or information disclosed pursuant to Section
1962 of the Civil Code, at the discretion of the City.
9.4 Methods of Establishing Credit. If prior service for a period of time is a condition
for establishing credit with the City, residence and proof of prompt payment of rent for that period
of time is a satisfactory equivalent.
9.5 Deductions from Rental Payment. Pursuant to Public Utilities Code Section
10009.1(d), any occupant who becomes a customer of the City pursuant to this Section 9 and
whose periodic payments, such as rental payments, include charges for residential water service,
where those charges are not separately stated, may deduct from the periodic payment each
payment period all reasonable charges paid by the occupant to the City for residential water
service during the preceding payment period. This subsection is intended only as a statement of
existing law under Public Utilities Code Section 10009.1(d); it does not establish any independent
legal rights or duties on landlords or tenants and is not enforceable by the City.
10. Third Party Notification Service for Seniors and Dependent Adults. The City will
make available, to residential customers who are 65 years or older, or who are dependent adults
(as defined in Welfare and Institutions Code Section 15610(b)(1)), a third -party notification service
whereby the City will attempt to notify a person designated by the customer to receive notification
when the customer's account is past -due and subject to termination. The notification will include
information on what is required to prevent termination of service. The City will mail the notification
to the designated third party at least ten (10) days before termination of service. To participate,
the customer must submit a request for third -party notification in an email to the City's Chief
Financial Officer. The notification service does not obligate the third party to pay any overdue
charges, nor shall it prevent or delay termination of service.
11. Language for Certain Written Notices. All written notices under Section 4 and Section
7.5 of this Policy shall be provided in English, Spanish, Chinese, Tagalog, Vietnamese, Korean,
and any other language spoken by ten percent (10%) or more people within the City's service
area.
D
12. Other Remedies. In addition to discontinuation of water service, the City may pursue any
i other remedies available in law or equity for nonpayment of water service charges, including, but
not limited to: securing delinquent amounts by filing liens on real property, filing a claim or legal
action, or referring the unpaid amount to collections. In the event a legal action is decided in
favor of the City, the City shall be entitled to the payment of all costs and expenses, including
attorneys' fees and accumulated interest.
13. Discontinuation of Water Service for Other Customer Violations. The City reserves
the right to discontinue water service for any violations of City ordinances, rules, or regulations
other than nonpayment.
14. Fees and Charges Incurred. Except as otherwise expressly stated in this Policy, any
fees and charges incurred by a customer under any other rules, regulations, or policies of the
City, including, but not limited to, delinquent charges, shall be due and payable as set forth therein.
15. Decisions by City Staff. Any decision which may be taken by the City's Chief Financial
Officer under this Policy may be taken by his or her designee.
E