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HomeMy WebLinkAbout20071119 - VIII-C-4VIII-C-4 MEMO TO: Honorable Mayor and City Council members FROM: Charlene A. Stark, Finance Director RE: Citizen's request to waive penalty for late fee on utility bill. DATE: November 14, 2007 BACKGROUND: Cyndi Cadwell has placed before council a letter asking for waiver of penalty on her water bill. As you are aware the City in the past has denied these requests, but Finance and the Utility committee of the council met last month to begin writing an amendment to the city ordinance 51.03 L2. The city ordinance currently directs staff to add a 10% penalty to all delinquent water bills and directs staff of the procedures to be followed. The amendment will allow staff to waive penalties on an account as a good customer service. Char Stark, the City Finance Director has been in contact with legal to draft the amendment. The plan is to allow for the waiver of penalty on a one time basis, but in order to invoke the one time wavier the account needs to be set up on the Automatic Clearing House (ACH) plan the city has in place. This allows the city to deduct the amount due from either a checking or a savings account, much like direct deposit works for an employee's payroll but in reverse. This way the citizen has the choice to accept the one time waiver of penalty and then be set up on ACH as a way for the city to be insured the problem of not receiving the bill via the U.S. mail becomes less problematic for both the city and the customer. Recommended City Council Action Approve the waiver of penalty but request the citizen to set up the ACH provision on her water utility account. -- -- --- ~ ", ^~n .n , i ~ ri-flat r~~ CYNDI CAD~VELL 310 CRESTVIEW DRIVE HASTINGS, MN 55033 Charlene Stark City of Hastings 101 East 4th Skreet Hastings,l\~ 55033 November 14, 2007 Charlene: I am writing to have the 10% fee waived on my water bill that never arrived. Last month I received a late notice from the city stating that my water bill leas overdue_ The 10% fee amounted to almost $40 is what I was told when. I :phoned the city. I was amazed at the amount I was being charged for doing nothing more than failing to receive a piece of zna.il_ I was told that i.t is not the city's fault if someone does not receive their mail. Evidently, it is the person's fault who did not receive the mail. I think this is a very arrogant position from an institution whose sole purpose for existence is to sen%e its citizenry. If I would have gatten rz~y bill, it would have been paid and sent in to the city just has it has been for the 19 years I have lived here. I feel I am a good citi~e». and have an excellent credit history_ There are many reasons someone might not receive a piece of .tnail_ Evert my credit card coz~apany (~:t~ho X fully admit anal recognize is solely i.n. business to take advantage of me) will give me a Mulligan in a rare instance when..[ }lave not gotten timely tt~ail. This whole ordeal has made me feel very taken advantage of by the city in which I live. S inccrely, Cy-ndi Cadwell