Water district examines one-time fee waiver

By Stephen Crane | Posted: Friday, October 25, 2013 /The Calaveras Enterprise

The Calaveras County Water District board revisited its delinquent billing policy at its board meeting Wednesday in hopes of finding a new approach to an old problem.

“People get behind (on their bill) and it’s very difficult for them to get out of the hole,” said Mitch Dion, general manager of the district.

If a bill is neglected long enough, the water is turned off, but the bills keep coming – and growing, since late charges add up quickly. Until the fees are paid, the water remains off, which could lead to unsanitary conditions.

This isn’t good for the customer or the district, board members agreed.

“I want to somehow formulate a way back in when someone gets behind,” said Director Jeff Davidson. “We don’t want them, as a health and safety issue, to occupy their home. I think we have to come up with a way to get them back in the system that is fair, but doesn’t create a culture where people take advantage of it.”

According to Lynn Gentry, director of Support Services, the problem is mostly limited to renters.“90 percent of our delinquencies are tenants,” she said.

When property owners hold their renters responsible for the water and sewer bills, the water district is left with little recourse since it is on the outside looking in on the arrangement between owners and tenants.

Property owners, who are ultimately responsible for all utility bills, receive the same billing statements as the renter whose name is on the bill, but that doesn’t stop them from clashing with their tenants over the late bill.

“It would seem to me, since the vast majority of our delinquent accounts are renters, there’s some kind of communications problem between the owner, the renter and CCWD,” said Director Bob Dean. “Can’t we bill the landowner and not the renter?”

“That would be the preference of the staff,” Gentry said.

Contributing factors to the high cost of delinquent accounts are the additional fees and expenses tacked on to the tab with each billing cycle that passes, which includes a $36 disconnect fee, a $10 penalty charge, an $18 late-tag fee, as well as the ongoing connection charge – not to mention the $36 charge to reconnect.

“I’m at a loss with how you get this small percentage of people back on track because they’re paying two to three times what I’m paying for the same amount of water,” said Director Don Stump.

“We can’t keep tacking on late fees if they can come current,” said Davidson. “We want those people on the system. If anything, we want more ratepayers.”

The board discussed the possibility of a one-time “fee forgiveness” as a possible option, which seemed to be a potential solution that wouldn’t make the larger rate structure vulnerable to inconsistency.

“The freedoms we’re going to have (to assist customers) may have to do with some of the relief of our fees,” Dion said.

Dion has the authority to waive fees for customers who may have a leak in their line that results in much higher usage, albeit temporary. Directors wondered if that could be possible for delinquent accounts as well, so long as customers sign a contract that timely payments will be made in full.

“Maybe that’s the ticket,” Davidson said. “If somebody comes in and signs a contract that they’ll make the payments …”

“As long as they stay current,” Dion chimed in. “But the moment they slip, wham-o.”

The board agreed to send the issue to the finance committee for further discussion. The item will then return to the board for possible action.

In other news, the board approved a bid of nearly $2 million to Mozingo Construction out of Oakdale to install infrastructure improvements as part of the Fly-In Acres Water System Replacement Project, which will include more than 18,000 feet of 6-inch water main pipe, along with a number of valves and fire hydrants.

The board voted unanimously to direct the water district to pursue the Slurry Line Project in order for the district to utilize the 1,000 acre-feet of water from the North Fork Stanislaus River that was approved for allocation by the State Water Resource Board.

For more on CCWD, visit ccwd.org.