Wingate Utility Customer Service Policy

Transcription

1 Wingate Utility Customer Service Policy Adopted the 17 th day of October 2011 Procedure Purpose Page 1

2 PROCEDURE PURPOSE The intent of this policy is to provide the customer and the employees of the Town a helpful guide with uniform procedures for providing utility service. The Town desires to treat its citizens in a fair and indiscriminate manner while recognizing that each customer has distinct needs and requirements. This policy is not meant to be all-inclusive but offers direction and guidance for the Town Administrator and employees of the Town. OVERVIEW Employees of the Town have been empowered and well-trained to use this policy to deliver high quality service to customers. Employees are expected to deal with each decision with empathy and understanding, listening carefully to the needs and requirements of individual customers. Ultimately, the Town Administrator accepts the responsibility as the final authority on this policy. APPLICATION OF THIS POLICY This policy applies to every customer or applicant for utility service. Copies of this policy are available at the Town s offices and on the Town web site. This policy may be revised, amended, supplemented or otherwise changed from time to time by action of the Board of Commissioners. Customers are encouraged to seek answers to any questions by calling the Town offices. The Town is not responsible for any damage caused by turning on Town utility services. These policies are part of all oral and written contracts for providing and receiving utility service from the Town. CUSTOMER RESPONSIBILITY 1. To establish credit in one of these ways: a. Have a Credit Check run b. Pay a deposit 2. Allow utility department personnel access to property to set up and maintain service. 3. Pay bills by the due date shown on each monthly bill. 4. Inform the Town if someone other than the account holder should be notified prior to disconnection for nonpayment. 5. Notify the utility department if there is someone in the household who is either chronically or seriously ill, handicapped or on a life support system. Notification shall include verification in writing from a medical doctor and be updated in January and July of each year. 6. Notify the utility department of questions or complaints about service. 7. Be aware of Town owned property at the customer s home/business and safeguard it. 8. The Town provides utility service for the sole use and convenience of the premises under contract. The customer will ensure that utility service is not given or resold to a neighbor or tenant. Violation of this policy will be cause for immediate disconnection of service. CUSTOMER S RIGHTS 1. The customer has a right to request, free of charge, historic billing and usage information. 2. If a utility department employee cannot find any reason for usage changes, the customer may request a meter test. A fee of $35.00 may be charged if the customer requests more than one test per 12 month period and if the meter is within accepted tolerances (plus or minus 2%). The customer has a right to results of the test. TOWN RESPONSIBILITY 1. To provide prompt, professional and courteous service. Page 2

3 2. To apply the customer s deposit to their account balance when the customer closes their account and send any remaining balance to a forwarding address supplied by the customer. 3. To provide and explain rate schedules, how meters are read, and other additional, reasonable information. 4. To provide historic billing and usage information when requested by the customer. 5. To provide usage and conservation information. 6. To provide equal treatment to all customers. 7. To operate the utility system in an efficient manner. TOWN S RIGHTS 1. To access the Town s utility facilities at any time. 2. To receive notice of changes in address, status or utility service, or problems with utility service. 3. To receive timely payment for services delivered to a customer. 4. To discontinue service for non-payment or a returned check. 5. To take legal action regarding equipment tampering or financial delinquencies. ESTABLISHING SERVICE Utility services can be established at 3918 Highway 74 East in the Wingate Town Hall. The Town Hall is open from 9:00 am to 5:00 pm, Monday through Friday. Routine and regular service work will be performed during these hours, Monday through Friday, except for holidays. Service work for unusual conditions may be arranged at other times upon request. Emergency restoration work is performed 24 hours a day, seven days a week. Please call us at for emergency service. REQUEST FOR SERVICE 1. Original application for service Any customer requesting services will complete an application and agreement for services. The customer will provide: a. Photo Identification b. Social security number (or federal tax ID number in the case of a business account) c. Signature on the application. The Town requires that a valid social security number (or federal tax ID number in the case of a business account) be included on each application. The social security number will only be used when a customer closes his/her account and leaves an unpaid balance. The Town may utilize the North Carolina Debt Setoff program or a collection service agency to recover outstanding balances. The North Carolina Debt Setoff program recovers outstanding balances from a customer s North Carolina Income Tax refund that he/she may be due. The social security/federal tax ID number is needed to properly link the outstanding balance to the customer s income tax refund that he/she may be due or to be used by a collection service agency to collect on delinquent accounts. The Town recognizes that an application for utility service by either a husband or wife will allow credit to be established for both the husband and wife. In all other situations, credit will be established for only the customer signing the application. In situations where utility service expenses on the same account are to be shared by two or more people (other than husband or wife), then the signatures and required application information for all persons desiring to have credit established with the Town shall be included on the original application for service. A separate application will be requested if more than one connection is requested. All notices will be sent to the primary customer (first customer to establish account) or to the person that signed the application. Page 3

4 2. Account information changes Any changes of account information, mailing address, account name, etc. should be made in writing by the account-holder to prevent mistakes. 3. Non-residential accounts Accounts established for non-residential service will require a Federal Tax ID number, and a signature by an officer of the corporation listed in the Articles. 4. Place of Application Customers may request utility service at the Town Hall, by phone or fax. The individual owner or occupant of the property must make application for utility service. Occupant will be determined to be the person named in the lease agreement, deed, deposit receipt, or contract for sale. 5. Time of Application The Town will strive to meet customers needs for connection of service. Normally connections will be made within 24-hours of the request. 6. Explanation of Policies Customers can request a verbal explanation of the Town s policies and may obtain a written copy of the guidelines as well. 7. Welcome Packet The Town may give each new customer information about the Town and its services when utility services are established. CUSTOMER DEPOSITS The Town of Wingate deposit policy is designed to assess the credit risk associated with all applications for new or continued service, while protecting the assets of our utility. It is important that every employee of the Town of Wingate understands and supports our policy of treating those customers who act responsibly and pay their bills on time with the respect their actions deserve. Likewise, we must also appreciate that it is not fair that those good-paying customers pay the financial burden of those who act irresponsibly and do not pay for their service as agreed. Thus, it is vital to our success that we adopt and strictly adhere to the policy of shifting the financial burden of potential bad debt away from our best customer to those who pose credit risk. This policy is aimed at accomplishing that task. It is also important to note that most of our customers will be charged no deposit, because they pose little credit risk. Likewise, those customers who have not established credit or pose substantial credit risk deserve to bear the financial risk of providing service to them mitigated through a credit-based deposit policy that shifts the financial burden they may pose off of our best-paying customers onto those who do, in fact, pose a risk. This policy is based upon the use of a new, technology-based screening tool called the ONLINE Utility Exchange to assess credit risk at the point of application and charge deposits only to those potential customers and existing customers who pose credit risk. Deposit Criteria The Town of Wingate shall consider the status of the applicant and act according to the following criteria: Residential Service Applicants 1. New-service applicants who pose no credit risk (Green Light returned on the ONLINE Utility Exchange) will be charged no deposit. 2. New-service applicants who pose minimal risk (Yellow Light returned on the ONLINE Utility Exchange) will be charged a deposit of $ New-service applicants who pose substantial credit risk (Red Light returned on the ONLINE Utility Exchange) will be charged a deposit of $ A service applicant who provides a social security number that is returned as deceased, non-issued, belonging to a person under the age of 18, or belonging to a person other than the applicant, or is fraudulent, shall be required to provide a valid social security number as well as additional proof of identity Page 4

5 i.e. valid drivers license, Social Security Card, etc. before service will be activated. (Or this option: denied service until that person supplies a valid social security number.) 5. The Town of Wingate cannot demand that an applicant provide their social security number as a requirement for service. However, it is our policy that applicants who refuse to provide their social security number pose a greater credit risk and shall be charged the maximum deposit. Commercial Applicants 1. Commercial applicant s deposit will be determined in the following manner: A. Sole proprietorships will have an ONLINE Utility Exchange report pulled on the sole proprietor and charged the corresponding deposit. B. Partnerships, Limited Liability Companies (LLC) and Limited Liability Partnerships (LLP) that are less than one year old will have an ONLINE Utility Exchange Report pulled on the managing partner or managing director, as appropriate, and the corresponding deposit will be charged. If the entity is over one- year-old, an IntelliScore Report will be pulled and a deposit charged as described in paragraph 2 below. C. Commercial applicants who are corporations, regardless of whether they are Subchapter S or full C Corporations, or any corporation that has a corporate headquarters outside of our service area (foreign corporation), shall have their credit risk based upon the ONLINE Utility Exchange s Business Profile Report and IntelliScore Report. i. If there are no negative trade items or indications of risk, the deposit shall reflect the IntelliScore risk as described in paragraph 2 below. ii. If the Business Profile Report OR IntelliScore Report indicates credit risk, the customer will be referred to commercial rates for their deposit to be determined. iii. Any commercial customer who bills in excess of $2,000 per month will have their deposit determined by commercial rates. General 2. The ONLINE Utility Exchange s Business IntelliScore reports. A. Commercial applicants who pose low risk and display an IntelliScore of 80 to 100 shall pay a deposit of one times the highest monthly usage of the service address during the last 12 months of continuous service, rounded up to the next five dollar increment. For example, if the highest monthly usage during the last 12 months of continuous service was $112.46, the required deposit would be $ B. Commercial applicants who pose a medium credit risk and display an IntelliScore score of 70 to 79 shall pay a deposit of two times the highest monthly usage of the service address during the last 12 months of continuous service. For example, if the highest monthly usage during the prior 12 months was $112.46, the required deposit would be $ C. Commercial applicants who pose a moderate credit risk and display an IntelliScore score of 69 or lower shall pay a deposit of three times the highest monthly usage of the service address during the last 12 months of continuous service. For example, if the highest monthly usage during the prior 12 months was $112.46, the required deposit would be $ Deposits are required to be paid prior to the time a connect order is issued. 2. Deposits are transferable from one service address to another, but service can not be on at both service addresses at the same time. 3. Upon termination of service, the deposit will be applied against any unpaid balance. 4. Any remaining balance will be returned to the consumer. Using the ONLINE Utility Exchange to Screen Service Applicants The ONLINE Utility Exchange is designed to screen service applicants to determine their credit risk based upon three criteria: 1) Social Security Number (SSN) verification; 2) Deposit decisions based upon credit risk; and 3) Payment experience with other utility providers. Each of these criteria reflects upon the credit risk associated with the Town of Wingate providing service to the applicant. Remember that we provide service and then bill for the service. Your understanding that each customer is, in fact, applying for us to sell those services on credit is important to protecting our utility. Page 5

6 It cannot be stressed enough that proper identification begins with the person taking the application. The more demographic information you enter into the CIS screen, such as home telephone number, place of employment, work telephone number, cell numbers, spouses employer and their work number, and a nearby relative not living with them and their phone number, the less we will charge off. Good demographic information leads not only to assuring that we identify fraudulent applicants, but also are able to pursue individuals who do not pay their bill and become bad debt. The elimination of bad debt begins with the detail you provide during application screening. Who Will Be Screened Using the ONLINE Utility Exchange? Homeowners If the applicant indicates that they own their home, or are in the process of purchasing their home, the homeowner and their spouse, if applicable, must be screened to determine their identity and credit risk. Our deposit decision shall reflect the decision on the applicant who poses the greater credit risk in the case of husband and wife. Renters If the applicant indicates that they rent their home, each person responsible for the lease of the rental unit shall be screened and the deposit decision shall reflect the decision on the applicant who poses the greater credit risk among those responsible for the lease. As an example, four persons are renting an apartment: three pose no risk, but one scores a maximum deposit. The deposit shall be the maximum deposit. This same policy shall also apply to student housing, except that any person under the age of 18 years of age shall obtain the guarantee of their parent or another adult as a co-signor. The parent or co-signor shall also be screened. Active Duty Military Any active-duty customer of the United States military, who owes a deposit, shall have that deposit reduced by an amount of $100, with a minimum of no deposit charged, in tribute to their service to our country. Letters of Credit The Town of Wingate will not accept a letter of credit in lieu of screening an applicant through the ONLINE Utility Exchange. If a new-service applicant produces a letter-of-credit, you may place that letter in their file; but you should explain that it is our policy to base our deposit decisions on the ONLINE Utility Exchange reports and not their past history with another utility. Opting for Maximum Deposit The Town of Wingate will not allow a new-service applicant to opt to pay a maximum deposit in lieu of having an ONLINE Utility Exchange report pulled. Application Fee The fee for applying for service shall be $5.00 PLUS $ 5.00 for each applicant and their spouse, PLUS $5.00 per person for un-related persons living at the service address in order to cover the investigation of the Applicants. i.e. if four unrelated persons are renting the service address, the application fee shall be ($5.00 PLUS $ $5.00 per unrelated person). Commercial customers, i.e. sole-proprietorships, partnerships, LLC and LLP, shall pay an application fee of $ Corporation shall pay a fee of $ The application fee shall apply to all new orders for service and the applicant investigation fee shall apply to all new orders for service as well as all service reconnects. Page 6

7 Part 1. Social Security Number Verification The ONLINE Utility Exchange screens each applicant to determine if the person is who he or she says they are. This is the first step in preventing write offs. Anybody who has worked with service applicants understands that when we cut off a customer for non-payment, they often come in and apply at the same service address using another identity. Collecting bad debts from charged-off accounts is virtually impossible if we provide service to an applicant using improper identity at the point of application. The ONLINE Utility Exchange s Social Security Number verification returns the following responses and requires the following action on our part: SSN Verification & Fraud Detection SSN Match Applicant name is associated with the Social Security number and or address in his/her credit bureau record. Proceed. Matches to Another Name Applicant s name matched social security number but other names have a stronger association with the Social Security number. Name mismatch may be because of maiden name or divorce. Verify name and proceed. Deceased or Non-Issued SSN The Social Security Administration has designated this SSN as belonging to a deceased individual or the SSN has never been issued. Stop application process and request valid SSN. No Record Found Social Security number or address has never been used to make an inquiry within the Experian database. The applicant may be too young or never used credit. Proceed. No Match (True Name Fraud) Applicant name has never been associated with the input Social Security number. SSN is associated with another name. Stop application process and request valid SSN and proof of identity. Part 2. Deposit Decision The ONLINE Utility Exchange returns deposit decisions that reflect the credit risk associated with the credit report of the individual(s) applying for service. These decisions are based upon the credit score from Experian s national credit repository involving hundreds of millions of credit files. Credit scores take into account the consumer s credit history and are able to predict future credit behavior two years into the future with pinpoint accuracy. Residential Customer Deposit Policy Using the ONLINE Utility Exchange Page 7

8 Green Light Green Light Minimum Credit Risk Waive Deposit Charge No Deposit These are our best customers Waive the customer s deposit. Charge only the application fee and applicant investigation fee(s) and explain that these charges can be billed to the customer s first bill. If the applicant is married, both the applicant and spouse must return a Green Light to have their deposit waived. If multiple, unrelated parties rent a service address; all must return a Green Light to have their deposit waived. Otherwise, charge the deposit associated with the highest credit risk. Yellow Light Yellow Light Medium Credit Risk Charge 1x Highest Monthly Usage Charge Medium Deposit For residential accounts, charge a deposit of $ For business accounts charge a deposit equal to two times the highest monthly usage of the service address during the last 12 months of continuous service. The application fee, applicant investigation fee, and deposit must be paid prior to the connect order being issued. If the applicant is married, or there are multiple applicants at the same service address, charge the deposit associated with the highest credit risk. Red Light RED Light High Credit Risk Charge 2x Highest Monthly Usage Charge Maximum Deposit For residential accounts, charge a deposit of $150. For business accounts charge a deposit equal to three times the highest monthly usage of the service address during the last 12 months of continuous service. The application fee, connect fee and deposit must be paid prior to the connect order being issued. If the applicant is married, or there are multiple applicants at the same service address, charge the deposit associated with the highest credit risk. Bankruptcies It is our belief that the fact that the applicant has declared bankruptcy indicates substantial credit risk and shall require a maximum deposit of the individual who has a bankruptcy returned as part of their credit record. Page 8

9 Exchange Matches It is also our policy that any applicant who has an Exchange Results returned indicating that they have a utility bill that remains unpaid and is returned as part of the Utility Exchange Report indicates significant credit risk and shall require a maximum deposit. Adverse Action Letters An adverse action letter will be printed and given to each applicant who is denied service, or charged a deposit. The Federal Trade Commission and the Fair Credit Reporting Act FCRA) mandate that a consumer who is charged a deposit based upon their credit information be given notification as to where that information was obtained and detailed procedures as to how they might dispute the information. It is clearly an adverse action to charge a higher deposit to those applicants whose credit scores indicate that their credit history indicates enough credit risk to warrant a deposit. Exchange matches are also considered an adverse action. Spanish-speaking applicants should be given the adverse action letter printed in Spanish. Deposit Receipt A receipt of deposit shall be issued to each customer from whom a cash deposit is received, or by any other method of payment if the applicant requests a deposit. Methods of Payment It is required that the Town of Wingate collect all monies owed (service charges and deposits) on the account after a deposit decision has been made and prior to the connection of service. 1. Monies on the charges settled between the service rep and the customer must be paid before connection via any of the following payment methods: A. Cash B. Check C. Master Card or Visa. 2. All deposits may be subject to review based on the actual experience of the customer. The amount of the deposit may be adjusted upward or downward to reflect the actual billing experience and the payment habits of the customer. 3. Where a customer has been required to make a guaranteed deposit, that deposit shall not relieve the customer of the obligation to pay the service bill when due, but where such deposit has been made and service has been disconnected because of nonpayment of account, then unless the customer shall, within 15 days after service has been disconnected, apply for reconnection of service and pay the account, the account may be discontinued. If the utility discontinues the account, the utility shall apply the deposit of such customer toward the discharge of such account and shall refund to the customer any excess. In the event that a Balance remains on the account, the Town of Wingate will begin Collection Activities (see Delinquent Accounts/ Collection Activities). Unclaimed Deposits A record of each unclaimed deposit must be maintained for the minimum amount of time required by North Carolina law, during which the Town of Wingate shall make a reasonable Page 9

10 effort to return the deposit. Any unclaimed deposits shall be turned over to the North Carolina State Treasurer s Unclaimed Property program. Record Keeping Each utility shall keep records to show: 1. The name, address and social security number of each depositor 2. The amount and date of the deposit. 3. The last transaction concerning the deposits Delinquent Accounts/ Collection Activities The Town of Wingate reserves the right to require additional deposit funds if the customer's account appears on the cut-off list within the first ninety (90) days of service or anytime thereafter if the record necessitates. This charge will be made to the customer's account and must be paid by the due date of the next bill or service will be disconnected. If an account is closed, the deposit will be credited toward the final bill. If monies are still left, a refund will be made to the customer. In the event that a balance remains unpaid on the account after the deposit is applied the Town of Wingate reserves the right to begin collection activities which may include, but is not limited to: 30, 60 or 90 day notices, door hanger, referral to the Consumer s Credit File, referral to the ONLINE Utility Exchange, referral to North Carolina Debt Set-off, and Placement with ONLINE Information Services, Inc., a Third Party Collection Agency, or legal action. Deposit transfers from one customer to another are not allowed. Deposits may be transferred from one service address to another, but service can not be on at both service addresses at the same time. A deposit transfer fee shall apply. Meters are read once a month. The bill is then mailed around the twenty-fifth (25 th ) of the month with payment due on a fixed date thereafter, making the net amount due approximately 30 days after the meter is read. REFUNDING OF DEPOSITS Prompt Refund A deposit will be credited to the customer s account upon discontinuance of service. After the deposit is applied, all outstanding balances on the final bill will be the responsibility of the customer. If after the deposit is applied to all outstanding balances there is any of the deposit amount remaining, then the Town will send the customer a check for the remaining amount within fifteen business days. BILLING INFORMATION FOR CUSTOMERS 1. Bills are mailed out on or about the 25 th of each month. 2. A bill is payable upon receipt and is considered past due if payment is not received in the Town Hall by 5:00 p.m. on the due date. A $10.00 penalty will be assessed on any account balance over $5.00. When the due date falls on a weekend or holiday, the next working day will be considered as the due date. 3. A fee, as outlined in the Meter Tampering Section of the policy, will be charged to any customer who reconnects their own meter. BILLING ADJUSTMENTS If the Town has inadvertently overcharged or under billed a customer for utility service, the Town will promptly notify the customer. Page 10

11 1. Should the mistake be in the customer s favor, the Town will refund the excess amount to the customer or credit the customer s account in that amount. If the time frame of the mistake cannot be determined, the Town should credit the account for that entire interval, as long as it is not more than three years. If the time frame of the problem cannot be determined, the Town should refund the excess amount charged during the previous 12 months. If the exact amount of excess charge cannot be determined, the Town should estimate the amount due. If an overcharged customer owes a past due balance to the Town, the Town may deduct that past due amount from any refund or credit due. 2. If the Town has inadvertently undercharged a customer for utility service, the Town will collect the amount due. If the time frame of the mistake can be determined, the Town will collect for that entire interval, as long as it is not more than three years. If the time frame of the mistake cannot be determined, the Town will collect the amount undercharged during the past 12 months. If the exact amount of the undercharge cannot be determined, the Town will estimate the amount due. 3. If an undercharge has occurred because of meter tampering, the Town shall demand the overdue amount in a lump sum. 4. If an overcharged customer owes the Town on another account, the Town may apply the credit to the other account. 5. The Town of Wingate may make adjustments to utility customer charges in the event of seasonal filling of swimming pools. Adjustments shall be made in accordance with the following policy. a. Adjustments shall be authorized a maximum of two times per year. b. The customer shall be responsible for using a pool meter that may be checked out from Town Hall to record the amount of water used to fill the pool. c. No adjustment shall be made for water consumption. d. An adjustment may be made for sewer consumption. The sewer charge for a billing cycle during which a pool was filled shall be calculated based on the usage shown on the pool meter. e. The pool meter shall only be used to fill a swimming pool and may not be used for any other purposes. LEAKS AND WATER LINE BREAKS SEWER ADJUSTMENT The customer who is requesting the adjustment shall provide the Town documentation that in fact a leak did exist, that the leak was sufficient in size to use the excessive amount of water, that the leak did not allow water to enter the sewer system, and that the leak has been repaired. Upon receipt of this documentation, the Town shall determine the customer s average monthly usage of water that is based on the usage from the previous twelve months. If the customer does not have a twelve-month history, then the average will be calculated from the all of the customer s history. All sewer charges over the average shall be released. Depending on the size of the water bill after the above adjustments, the Town may allow the customer a reasonable time to pay the additional water portion of the bill. No water and/or sewer adjustments due to leaks shall be made without documentation. Proper documentation includes a receipt from a plumber or a store receipt that details the list of parts used to make the repair. DROP BOX FOR PAYING AFTER HOURS For customer convenience, a drop box is located in front of Town Hall at 3918 Highway 74. For added security, please do not deposit cash in the drop box. EXTENSIONS OF TIME FOR PAYMENT OF BILLS 1. Customer Request - All requests must be made by the person in whose name the account is opened. 2. Location - The customer requesting the extension must come to Town Hall to request the extension prior to the scheduled cutoff date. 3. Maximum Maximum extension will be five (5) working days from the cutoff date. 4. Valid Reason The customer will be required to give a valid reason as to why the extension is needed. A valid reason for requesting an extension should relate to an unforeseeable hardship or emergency. Page 11

12 5. Agreement By executing a customer extension, the customer agrees that if payment is not made by the specified time, service will be disconnected without further notice. A Service Fee will be charged to the account based on the Fee Schedule. 6. Approval of Extension - An extension is a privilege and will be granted based on customer need and circumstances. An extension will not be guaranteed and may be denied for excessive abuse. No more than two (2) extensions shall be granted within a 12-month period. RETURNED CHECKS 1. The Town will accept only cash, certified check, or money order from any customer having two (2) returned checks within any one-year period. 2. Upon receipt of the first returned check, the customer will be informed of and given a copy of the written policy. 3. Upon receipt of the second returned check, the customer will be advised that all bills must be paid in cash, money order, or certified check and will be given another copy of the written policy. 4. Only cash payments, certified checks or money orders will be accepted for the next year. 5. After the one-year period ends, if another returned check is received, all future bills must be paid in cash. 6. Returned checks shall be picked up within 15 days of notice from the Town. The notice period shall start from the date that is on the notice. If the returned check is not picked up with payment in full including the returned check fee, service shall be disconnected without further notice. 7. In the event a new customer posts a utility account deposit by personal or corporate check and the check is returned to the Town for insufficient funds, then the account shall be subject to immediate disconnection without benefit of prior notification. 8. A written memo will be mailed on the day the check is received. 9. As allowed by the State of North Carolina, an Insufficient Funds Charge is added to the customer s bill because of each returned check. OPTIONS IN BILLING PAYMENTS To better serve the needs of customers, the Town offers an alternative payment method of automatic bank draft. BANK DRAFT PLAN 1. Bank drafts offer customers the option of having their bank accounts drafted on a set date of the month. This relieves the customer from having the possibility of lost or late payments and saves a trip to the Town Hall or the cost of a stamp. 2. The draft date is the 10 th of each month. When the 10 th falls on a weekend or holiday, the next working day will be considered as the date when the draft shall take place. This will allow the customer time to verify or question their bill. 3. The customer will be required to supply the Town with a bank draft application and a voided check for the purpose of drafting. 4. Any draft returned by the bank because of insufficient funds or a closed account will be treated as a returned check. If two (2) drafts are returned by the bank within a twelve-month period because of insufficient funds or a closed account, the customer will be released from the bank draft program. Before being admitted back to the bank draft program, the customer must not have any late payments for a period of twelve months. MEDICAL ALERT PROGRAM 1. The customer has the responsibility of notifying the Town if there is someone in their household who is either: a. Chronically or seriously ill, and Page 12

13 b. On a life support system, and c. Medically requires uninterrupted water service 2. The customer must provide a letter or certification from a doctor or hospital advising of the above condition. These letters will be reviewed and brought up-to-date in January and July of each year. 3. The customer has the responsibility to carefully handle their account so that service will not be interrupted for failure to pay. With the medical alert designation, the Town will make every effort to make personal contact with the customer before service is terminated. Customers in the Medical Alert Program will be given a twoweek notice prior to termination of service. The notice will be sent by first-class mail to the mailing address that is on the account. The notice period shall start with the date that is on the notice. If the customer has provided a valid telephone number, the Town will also attempt to contact the customer by telephone prior to the disconnection of service. All attempts to contact the customer will be documented and kept on file. TRANSFER OF SERVICE Deposits are transferable from one service address to another. If the customer has an account that is past due, they must pay the past due amount before the account will be transferred. CLOSING A UTILITY ACCOUNT After an account has been closed by either customer request or policy of the town, all funds, including deposits, refunds and overcharge credits will be used against amounts owed the town on the closed account first. Remaining funds will then be used against any amounts owed on any other accounts the customer may have with the Town. When those accounts have been cleared, a check for the remaining money will be issued to the customer for any net credit. TERMINATION OF SERVICE 1. Requesting Discontinuance of Service Any customer requesting discontinuance of service will complete out a disconnect form to ensure the service is turned off. Conformation of disconnect will only be forwarded if requested. 2. Disconnection Scheduling Disconnection from the Town s utility system will be performed the same day as requested if the request is received before 12:00 pm. If it is after 12:00 pm, then disconnection may not be performed until the next business day. 3. Final Bill A customer s final bill will be processed and mailed during the next regular billing cycle. CUSTOMER S RIGHTS PRIOR TO DISCONTINUANCE OF SERVICE 1. Reasonable Opportunity The Town will discontinue utility service to customers for nonpayment only after giving the customer a reasonable opportunity to question the accuracy of the bill. Reasonable opportunity is defined as the period of time from the issuance of the bill until the date of potential disconnection. 2. Disputed Bill If a customer disputes the accuracy of their bill, they have the right to a hearing at which they may be represented in person or by another person of their choosing who may present, orally or in writing, their complaint and contentions. The hearing shall be conducted by the Town Administrator, whose decision may be appealed to the Wingate Board of Commissioners. An appeal must be filed in writing to the Town Clerk within ten days of the Town Administrator s decision. The Board of Commissioners will hear the appeal within thirty days of it being filed with the Town Clerk. 3. Exceptions Under special circumstances, the Town may choose not to interrupt service during extreme weather or when the meter has been sealed with a medical alert tag about which the Town has prior written knowledge. 4. No Disconnection Disconnection for nonpayment will not be the day prior to a holiday or a weekend, except when conditions in extension agreements have not been met or a returned check is not picked up within the required period. Page 13

14 5. Hearing The Town will discontinue utility service for nonpayment of bills only after notice has been given and the customer has had the opportunity to be heard on disputed bills. Any customer desiring a hearing must contact the Town Administrator or his/her designee. Hearings may be scheduled between 9:00 a.m. and 5:00 p.m., Monday through Friday. The Town has the authority to settle the issue and reconnect any disconnected account while the matter is investigated. The customer may be represented in person by counsel or other person of their choosing at this hearing. The complaint must be presented in writing. The customer will be notified in a timely manner of the results of any investigation regarding a hearing and of any resulting determination regarding adjustment or cutoff. INVOLUNTARY DISCONTINUANCE OF SERVICE 1. The Town may discontinue utility service for any one of the following reasons: a. Failure of the customer to pay bills for utility service as required in the Billing Information Section of this policy; b. Failure of the customer to pay deposits as required; c. Upon discovery of meter tampering including bypassing the meter or altering its function; d. Failure of the customer to permit Town employees access to their meters at all reasonable hours. Locked gates, loose dogs, parked cars over meters, etc. are violations of Town policy. e. Discovery of a condition which is determined to be hazardous or unsafe. 2. Discontinuation of service for non-payment will be performed ten (10) days after the due date shown on the past due bill. If the tenth day falls on a weekend of holiday, then service will be discontinued on the first business day following the tenth day. 3. Federal laws regarding bankruptcy require that the Town not alter, refuse or disconnect service based solely on the basis of the beginning of bankruptcy proceedings or on the customer s failure to pay for prebankruptcy service, when a petition for bankruptcy has been filed. However, the Town may terminate a bankrupt debtor s service if it is not provided assurance of payment (a deposit of other security) for future services within 10 days after the date of the order for relief. 4. Accounts subject to involuntary discontinuance shall be assessed a Service Fee (see Wingate Fee Schedule) for processing the disconnection. Once the Service Fee has been applied to an account, then it becomes due. The Service Fee is for the administration process associated with the severly past due account, not the actual disconnection/reconnection of service. DISCONNECTION DURING EXTREME WEATHER The Town will not exercise its right to disconnect service for nonpayment of any bills when the safety and well being of a customer may be at stake. For that reason, disconnection for nonpayment may not be conducted - taking into consideration temperature, precipitation and other weather conditions. If a customer s bill remains unpaid on the next business day, the disconnection for nonpayment may then occur. This delay in disconnection for nonpayment will not preclude the Town from disconnection at a future date and does not change the customer s liability for payment of all bills and fees. RECONNECTION When it becomes necessary for the Town to discontinue services for any of the reasons listed above, service will be restored after payment of: (1) all past due bills due the Town including additional fees and charges required by this policy; (2) any deposit as required; and (3) any material and labor cost incurred by the Town. Page 14

15 METERING GUIDELINES 1. Meter Reading a. The Town s meters will be read by Town employees according to the Town s schedule. Reading dates will vary slightly from month to month due to weekends, holidays, weather conditions, and other factors. Monthly billing periods will be assumed to be 30 days, but may range from 25 to 35 days. b. The Town s well-trained meter readers use modern meter reading equipment and techniques. If meter reading corrections are necessary, the Town will make the adjustments and a new bill may be rendered upon request. A credit due to a customer from a meter reading error will be posted to the customer s account or a check may be written to the customer if requested. c. Weather conditions, such as snow, may make meter reading impossible. In those circumstances the Town may estimate utility usage. 2. Meter Tampering a. Tampering with a meter or bypassing a meter is the same as stealing. The large majority of good paying customers who would be financially burdened with paying for the stolen services require the aggressive enforcement of this policy. The Town will call for prosecution of cases of meter tampering, water theft and fraud to the fullest extent of the law. b. A service charge representing the Town s cost for the investigation and processing of a meter tampering case will be billed to the customer who benefited from the tampering. c. When a person reconnects his/her own service without authorization from the Town, then the Town will add a meter tampering charge to the customer s account. d. Repair cost shall be added to a customer s account in addition to any use, reconnection or other applicable fees when the meter has been tampered with. EFFECTIVE DATE OF POLICY This policy shall be effective sixty (60) days after adoption by the Wingate Board of Commissioners and shall continue until such time as it is amended or repealed by the Wingate Board of Commissioners. Page 15