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HomeMy WebLinkAbout2025-09-30; Municipal Water District; Resolution 1785Exhibit 2 RESOLUTION NO. 1785 . A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN UPDATE TO THE RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES WHEREAS, on Sept. 28, 2018, the State of California enacted Senate Bill No. 998, or SB 998, the Water Shutoff Protection Act (California Health and Safety Code, Section 116900 et seq.); and WHEREAS, SB 998 required the Carlsbad Municipal Water District, or CMWD, to adopt and post publicly a policy on discontinuation of water service for non-payment, or water shutoff policy, that, among others, required the CMWD to refrain from shutting off water service for non-payment for at least 60 days and adhere to specified procedures when pursuing water shutoffs, refrain from shutting off water service when doing so would pose a serious threat to life or health and safety and/or cause a severe financial hardship, and report annually the number of discontinuations of residential service for inability to pay; and WHEREAS, the CMWD developed a policy to comply with the law and the Board of Directors approved the Residential Water Service Shutoff Protection Policy for Nonpayment of Charges, or Policy, via Resolution No. 1625 on Dec. 10, 2019; and WHEREAS, the Policy was administratively revised on Oct. 13, 2022, to update the CMWD phone number and website address; and WHEREAS, Senate Bill No. 3, enacted on Oct. 13, 2023, necessitates an update to the Policy to extend the availability of alternate payment arrangements to all residents, not just those that demonstrate medical and financial hardship. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2. That the proposed action to update the Residential Water Service Shutoff Protection Policy for Nonpayment of Charges is exempt from environmental review under California Environmental Quality Act Guidelines Section 15061(b)(3) and 15378(b)(5) as it can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment. Sept. 30, 2025 Item #3 Page 54 of 149 Docusign Envelope ID: 366FD5BF-B9ED-4C4E-B65E-83AEF09A8934 3.That the amended Residential Water Service Shutoff Protection Policy for Nonpayment PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, and the City Council of the City of Carlsbad, California, on the 30th day of September, 2025, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None. _______________________________________ KEITH BLACKBURN, President _______________________________________ SHERRY FREISINGER, Secretary (SEAL) Sept. 30, 2025 Item #3 Page 55 of 149 of Charges (Attachment A) is approved. Docusign Envelope ID: 366FD5BF-B9ED-4C4E-B65E-83AEF09A8934 Attachment A Carlsbad Municipal Water District 5950 El Camino Real  Carlsbad, CA 92008  442-339-2420 t RESIDENTIAL WATER SERVICE SHUTOFF PROTECTION POLICY FOR NONPAYMENT OF CHARGES Introduction The Carlsbad Municipal Water District (CMWD) developed this Residential Water Service Shutoff Protection Policy for Nonpayment of Charges (Policy) to help residential water service customers prevent shutoff of water service for nonpayment of charges due to hardship. This Policy is not applicable when water service is shut off due to unauthorized action by the customer. This Policy is available on the City of Carlsbad's website: https://www.carlsbadca.gov/departments/utilities/water. The number of annual shutoffs for nonpayment is noted on the website. A paper copy of the Policy is available upon request at the City's Utility Billing Offices at 1635 Faraday Avenue, Carlsbad, CA 92008. For more information about this Policy or to discuss options for avoiding discontinuation of residential water service, please contact the CMWD's billing department by phone at 442-339- 2420 or by email at water@carlsbadca.gov. Definitions Water bills – Monthly statements sent to customers indicating the amount of water used during the billing cycle, rate charged for the water, amount the customer must pay for the water and date on which the payment is due. Delinquent account – Those accounts that remain unpaid by the due date. If a customer attempts to pay their account with a check that is subsequently returned by the customer’s bank for insufficient funds, on the basis of the account being closed, because of a stop payment order, or for another reason, that customer’s account will become delinquent if the customer does not make payment in full by the due date. Late fee – A fee charged for payments not received by the due date. The late fee is 10% of the unpaid bill amount. Water disconnection or shutoff – The CMWD disconnects water service by turning off and locking the water meter. If a customer's water service is disconnected or shutoff, the customer must pay a fee to have the CMWD reconnect the water service. Water service reconnected without CMWD authorization may result in fines or additional charges or fees. Any damages caused by an unauthorized service reconnection are the customer's responsibility. Sept. 30, 2025 Item #3 Page 56 of 149 Docusign Envelope ID: 366FD5BF-B9ED-4C4E-B65E-83AEF09A8934 Residential Water Service Shutoff Protection Policy for Nonpayment of Charges Page 2 Notifications The CMWD will not shut off a residential customer's water service for nonpayment until the customer's unpaid balance has been delinquent for at least sixty (60) days or if the customer meets the special criteria as detailed below in the section titled Options Available to Customer. First Written Shutoff Notice - At least seven (7) business days before shutting off a residential customer's water service, the CMWD will contact the customer by telephone or mail. If the CMWD contacts the customer by telephone, the CMWD will offer to provide the customer with this Policy. The CMWD will also offer to discuss the customer's options for averting a shutoff for nonpayment, including deferred payments, alternative payment schedules, unpaid balance amortization, and bill review and appeal (collectively “Alternate Payment Arrangements”). If the CMWD contacts the customer by mail, the CMWD will send the customer written notice of the shutoff to the billing address designated on the customer's account. If the billing address and the service address are different, a second notice will be mailed to the service address and addressed to "Occupant." The written notice will include the customer's name and address, amount of the delinquent charges, and the date by which the customer must pay or arrange to pay the delinquent charges to avoid a shutoff. The notice will also include a description of the process to apply for an extension of time to pay the delinquent amount, a description of the procedure to petition for a bill review and appeal, and a description of the procedures by which the customer may request an Alternate Payment Arrangement. If the written notice is returned as undeliverable, the CMWD will make a good faith effort -to visit the service address and leave, either with an adult occupying the residence or in a conspicuous place, a written notice of the imminent shutoff and a copy of this Policy. Notice to Tenants/Occupants in an Individually Metered Residence – If the landlord of a residence with individually metered service is the customer with the delinquent account, the CMWD will make a good faith effort to send a written notice to the tenants/occupants of the residence at least ten (10) days before water service is shut off. The written notice will advise the tenants/occupants that they have the right to become customers of the CMWD without being required to pay the amount due on the delinquent account, if they are willing and able to assume financial responsibility for subsequent charges for water service at the residence. The tenants/occupants must provide verification of tenancy in the form of a lease or rental agreement, rent receipts, a government document indicating the occupant is renting the property, or other acceptable proof. Sept. 30, 2025 Item #3 Page 57 of 149 Docusign Envelope ID: 366FD5BF-B9ED-4C4E-B65E-83AEF09A8934 Residential Water Service Shutoff Protection Policy for Nonpayment of Charges Page 3 Notice to Tenants/Occupants in a Multi-Unit Complex Served through a Master Meter – If the landlord of a multi-unit complex served through a master meter is the customer with the delinquent account, the CMWD will make a good faith effort to send a written notice to the tenants/occupants of each unit at least ten (10) days before water service is shut off. The written notice will advise the tenants/occupants that they have the right to become customers of the CMWD without being required to pay the amount due on the delinquent account. If one or more of the occupants at the address served by the master meter are willing and able to assume responsibility for the subsequent charges for water service to the satisfaction of the CMWD, or if there is a physical means legally available to the CMWD of selectively terminating service to those tenants/occupants who have not met the CMWD's requirements for service, the CMWD will make service available to the occupants who have met the requirements. Final Written Shutoff Notice – The final written water shutoff notice will be delivered to the premises no less than five (5) business days in advance of shutoff. The CMWD will visit the residence and leave the water shutoff notice and a copy of this Policy. Options Available to the Customer Bill Review and Appeal – If a customer disputes the customer's water bill, the customer may make a written request for the bill to be reviewed by the City of Carlsbad's Finance Director. The written request must be submitted within ten (10) business days after the bill is mailed to the customer or within five (5) business days after the CMWD informs the customer by telephone or mail that the customer's water service is subject to shutoff for nonpayment. A written request for bill review must identify what aspects of the water bill the customer believes are incorrect, what information and documents the customer believes support the customer's position, and what resolution the customer seeks. Within ten (10) business days after receipt of the bill review request, the Finance Director, or a designee, will review the water bill and provide a written response to the customer. If the customer disagrees with the Finance Director's response, the customer may, within five (5) business days of the response, submit a written appeal on the matter to the Deputy City Manager, Administrative Services. Within ten (10) business days after receiving the appeal, the Deputy City Manager, Administrative Services, will consider the information and documents previously submitted to the Finance Director, as well as any additional information or documents submitted with the appeal, and will issue a written decision independently determining whether the bill is correct. The decision of the Deputy City Manager, Administrative Services, is the final administrative decision. The CMWD will not shut off the customer's water service for nonpayment while the customer's request for a bill review or appeal is pending. If the bill review or appeal results in a determination the customer's water bill was incorrect, the CMWD will correct the bill, and the customer will have twenty-one (21) calendar days to pay the corrected bill amount. If the bill review or appeal results in a determination that the customer's water bill was correct, the Sept. 30, 2025 Item #3 Page 58 of 149 Docusign Envelope ID: 366FD5BF-B9ED-4C4E-B65E-83AEF09A8934 Residential Water Service Shutoff Protection Policy for Nonpayment of Charges Page 4 customer must pay the bill in full within five (5) business days unless the customer enters into an approved Alternate Payment Arrangement. Alternate Payment Arrangement – A customer may request an Alternate Payment Arrangement before that customer’s account becomes a delinquent account to avoid late fees and service shutoff. Additionally, the CMWD will not shut off water service if the customer meets all the following special criteria: 1. Demonstrates a medical need for continued water service by providing certification from a primary care provider that water service shutoff will be life-threatening or pose a serious threat to the health and safety of any person residing at the service address. 2. Demonstrates financial hardship by showing the customer is financially unable to pay for service within the CMWD's normal billing cycle. A customer will be deemed to have a qualifying financial hardship if any member of the customer's household currently receives CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children. A customer will also be deemed to have a qualifying financial hardship if the customer declares that the customer's household annual income is less than 200% of the federal poverty level. 3. Agrees to enter an Alternate Payment Arrangement. To enter an Alternate Payment Arrangement: A. The customer must enter into an Alternate Payment Arrangement Agreement with the CMWD to amortize the unpaid balance or temporarily defer payments over an agreed upon period, not to exceed twelve (12) months from the original due date on the bill. B. The agreed-upon amount (i.e., amortized payments) will be added to the regular monthly bill or an alternative payment schedule to pay off the previously unpaid balance. C. The customer must remain current in all subsequent billing periods. D. The customer cannot request further amortization of any subsequent unpaid charges while paying delinquent charges from a previous bill. If the customer does not comply with the Alternate Payment Arrangement or becomes delinquent in paying current water service charges for sixty (60) days or more, the CMWD will shut off the customer's water service. At least five (5) business days before discontinuing water service, the CMWD will post a final shutoff notice in a prominent and conspicuous location at the service address. Sept. 30, 2025 Item #3 Page 59 of 149 Docusign Envelope ID: 366FD5BF-B9ED-4C4E-B65E-83AEF09A8934 Residential Water Service Shutoff Protection Policy for Nonpayment of Charges Page 5 If the CMWD shuts off a residential customer's water service, the CMWD will provide the customer with information on how to restore service. Restoration of Service Deadline for Shutoff – All delinquent water service charges and associated fees must be received by the City of Carlsbad Finance Department by 3 p.m. on the day specified in the written disconnection notice. Reconnection Process – The CMWD will reconnect service as soon as feasible but, at a minimum, will restore service before the end of the next regular working day following payment of any past due amount, delinquent fees and reconnection fees, on the account that was shutoff. Reconnection Fee – The cost to reconnect water service as applicable under this Policy is published yearly in the Master Fee Schedule (https://www.carlsbadca.gov). For those that demonstrate a customer household annual income below 200% of the federal poverty line, the reconnection fee is $50 for same day and next day service during normal business hours, and $150 for service during non-operational hours. This rate is subject to annual adjustment on January 1 of each year based on the year-over-year change to the Consumer Price Index, All Consumers, Not Seasonally Adjusted. A customer will be deemed to have a household income below 200% of the federal poverty line if any member of the customer's household currently receives CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children. A customer will also be deemed to have a household income less than 200% of the federal poverty level if the customer declares the household’s annual income is less than 200% of the federal poverty level. Reference: Water Shutoff Protection Act (Health and Safety Code Section 116900 et seq.) Effective: February 1, 2020 Last Updated: September 30, 2025 Sept. 30, 2025 Item #3 Page 60 of 149 Docusign Envelope ID: 366FD5BF-B9ED-4C4E-B65E-83AEF09A8934