HomeMy WebLinkAboutItem 10 - Second Reading of Ordinance No. 1677 amending Chapter 13.04 (Water Service)
Department Name: Utilities
Cost Center: 6105
For Agenda of: February 18, 2020
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Jennifer Thompson, Utilities Business Manager
SUBJECT: SECOND READING OF ORDINANCE NO. 1677 (2020 SERIES) AMENDING
MUNICIPAL CODE CHAPTER 13.04 (WATER SERVICE) RELATING TO
DISCONTINUATION OF RESIDENTIAL WATER SERVICES FOR NON-
PAYMENT
RECOMMENDATION
Adopt Ordinance 1677 (2020 Series) amending Chapter 13.04 of the City of San Luis Obispo
Municipal Code to comply with Senate Bill 998 (Attachment A).
DISCUSSION
On February 4, 2020, the City Council voted to introduce Ordinance No. 1677 (2020 Series).
The ordinance is now ready for second reading and adoption.
In September 2018, Governor Brown signed Senate Bill 998 (SB 998) which requires additional
rules and procedures before residential water service can be turned off for non-payment. The
City of San Luis Obispo Municipal Code currently conflicts with SB 998 so the applicable
ordinances must be amended. Section 13.04.060 (Discontinuation of Water Service) and Section
13.04.110 (Delinquencies and Penalties) of Municipal Code Chapter 13.04 (Water Service) of
the Municipal Code are proposed to be amended to comply with the 60-day delinquency period
required under SB 998. The City’s current water ordinance states that water bills become
delinquent 30 days after presentation of the bill and that water service may be discontinued when
the bill becomes delinquent.
Previous Council or Advisory Body Action
On February 4, 2020, Council introduced Ordinance No. 1677 (2020 Series) amending Chapter
13.04 of the City’s Municipal Code related to discontinuation of water service for non-payment.
Policy Context
To comply with SB 998, the City is required to make these changes to the Municipal Code.
Public Engagement
Public engagement took place prior to and during the February 4, 2020, City Council meeting. This
item is now on the agenda for the February 18, 2020 City Council meeting and will follow all
required postings and notification requirements. The public will have another opportunity to
comment on this item.
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Item 10
CONCURRENCE
The Finance Department concurs with the recommendations.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines Sec.
15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2020
Funding Identified: N/A
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $0 $0 $0 $0
Staff anticipates that the City’s recovery of delinquent balances may be reduced with the
proposed lengthening of the delinquency period to 60 days. In the delinquent bill collections
field, older accounts receivables are typically more difficult to collect. Customers who close their
account will potentially have larger uncollected balances sent to the City’s collection agency.
Aged accounts receivable also have the potential to impact the City’s credit rating because they
may indicate an inability to collect payments. The City shuts-off an average of 40 customers per
month for non-payment. This is only 0.25 percent of all customers; hence, staff estimates that
aged account balances will not rise to this level. However, staff will closely monitor the
developments once the process is adjusted to the requirements of SB 998.
ALTERNATIVES
Do not adopt the ordinance amendment. This is not recommended because SB 998 is State law
and imposes civil penalties of up to $1,000 per day for violations of noncompliance.
Attachments:
a - Ordinance No. 1677 (2020 Series)
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Item 10
O 1677
ORDINANCE NO. 1677 (2020 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING SECTIONS 13.04.060 AND 13.04.110
OF THE SAN LUIS OBISPO MUNICIPAL CODE TITLE 13.04 – WATER
SERVICE
WHEREAS, the City of San Luis Obispo (City) is a municipal corporation duly organized
under the California Constitution and laws of the State of California; and
WHEREAS, the City owns and operates a public water system that supplies water to
residential, commercial, and industrial customers throughout the City’s jurisdiction; and
WHEREAS, in 2018, the California Legislature adopted Senate Bill 998 (“SB 998”) which
adopted new and expanded protections regarding discontinuation of water service for nonpayment
and related matters; and
WHEREAS, the City Council desires to amend Chapter 13.04 of the Municipal Code to
ensure consistency with the requirements of SB 998 and other laws.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1: Recitals. The above recitals are true and correct and are incorporated herein
by this reference.
SECTION 2. Section 13.04.060 of the San Luis Obispo Municipal Code is hereby
amended to read as follows:
13.04.060 Discontinuation of water service.
Each customer discontinuing water service shall be required to provide information according to
the procedures established by the director of utilities.
A. Nonpayment of Bills.
1. A customer’s water service may be discontinued if a bill is not paid on or before sixty days
from the date the bill becomes delinquent.
2. A customer’s unpaid balance for water service previously rendered by the city may be
transferred to that same customer’s current water service and water service may be
discontinued if water service furnished at a previous location is not paid on or before sixty
days from the date the bill becomes delinquent.
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O 1677
3. If a customer receives water service at more than one location, and the bill for service at
any one location is not paid on or before sixty days from the date the bill becomes
delinquent, water services at all locations may be discontinued.
B. Unsafe Apparatus. The utilities department may discontinue service to any parcels where
apparatus, appliances, or equipment using water is dangerous, unsafe, causing damage or not
in conformity with any laws or ordinances.
C. Service Detrimental to Others. The utilities department may discontinue service to any parcels
where the demand may be detrimental or injurious to the service furnished to other customers.
D. Fraud and Abuse. The utilities department shall have the right to refuse or to discontinue water
service to any parcels to protect itself against fraud or abuse.
E. Noncompliance. The utilities department may, unless otherwise provided, discontinue water
services to a customer for noncompliance with any of these regulations if the customer fails to
comply with them within five days after the date of presentation of written notice of the utilities
department’s intention to discontinue service. If such noncompliance affects matters of health
and safety and/or is causing property damage, and conditions warrant, the utilities department
may discontinue water service immediately.
F. Customer’s Request for Service Discontinuance. A customer may have his or her water service
discontinued by notifying the utilities department reasonably well in advance of the desired
date of discontinuance. He or she will be required to pay all water charges until the date of
such discontinuance.
G. Restoration – Reconnection Charges. The utilities department may charge such amount as may
be established from time to time by resolution of the city council for restoring water service
which has been discontinued because of noncompliance with these rules. (Ord. 1597 § 6, 2014:
prior code § 7410.17. Formerly 13.04.180)
SECTION 3. Section 13.04.110 of the San Luis Obispo Municipal Code is hereby
amended to read as follows:
13.04.110 Delinquencies and penalties.
For failure to pay for water service by the provisions of this chapter prior to the delinquency date,
the director of utilities may add a penalty. The amount of the penalty shall be set by resolution of
the City Council. (Ord. 1597 § 11, 2014)
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this ordinance, or any other provisions of the City’s rules and regulations.
It is the City’s express intent that each remaining portion would have been adopted irrespective of
the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
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SECTION 5. Environmental Review. The proposed ordinance amendment is exempt
from California Environmental Quality Act (CEQA) pursuant to statute (Public Resources Code
Section 21000, et seq.) and the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including
without limitation under sections 15307 and 15308 of the CEQA Guidelines (actions to protect
natural resources and the environment) and because it can be seen with certainty that there is no
possibility the adoption of this ordinance amendment may have a significant effect on the
environment (CEQA Guidelines § 15061(b)(3)).
SECTION 6. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at
the expiration of thirty (30) days after its final passage.
INTRODUCED on the 4th day of February 2020, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ________, 2020, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, 2020.
______________________________
Teresa Purrington
City Clerk
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