Gas and Water committee discusses procedures for delinquent customers

Rice told members of the committee that city employees work with customers on an individual basis to extend due dates and set up payment plans, all the while making sure that the residents they assist are not overburdened on their next month's payment.

"We try to work with them if they have a high bill," said Rice, who said customers who have broken previous extension agreements with the city in the past do not have the opportunity to have their payments extended. "It's just really according to the situation, what's going on. We try to work with the customers as much as we can. ... If it's a high bill, we try to break it up ... and try not to get them in a bind on the next month's bill."

"In other words, if they will cooperate with you, you will work with them," said Chairman Lewis Norman. "If they will let you know that there is some extenuating circumstance."

"Absolutely," said Rice.

Rice said the city does not remove customers from the cut-off list.

"There are a lot of issues with that," said Rice. "We do not extend the bill if they have been placed on the cut-off list and it has been sent out."

When bills are sent out to the customers from City Hall, they have approximately 20 days to pay the bill before it goes delinquent, and at least seven days after that before they are cut off.

Rice estimated that City Hall averages eight pages (of eight customers) per week that are cut off, with the most cut-offs prevalent in late April and early May when customers who use gas only for heat allow it to be cut off for the warmer seasons.

"We have folks that come to see us and we work with them on the extensions, set up payment plans or things we can do to assist them. I honestly refer those to Penny's department and she handles that," said Holden. "The reason we called this meeting was there was a complaint, some complaints, from citizens who wanted to address this committee and they were invited here. I guess they couldn't show up or didn't show up. But obviously, we wanted to give them the courtesy of this meeting. I think the issue that came up was the deposit. I think it would be good if Penny could explain to us the deposits and the deposits procedure."

Rice said customers who are cut off for nonpayment must pay a $50 deposit to have their utilities turned back on. A $50 deposit is required whether residents need gas only, water only, or gas and water together. Deposits are refundable. Reconnection fees are also required, a $25 fee per meter for same-day reconnection and $15 per meter for next-day reconnection.

"(Customers) get a regular bill stating what their due date is," said Rice. "If it is not paid by the due date, we send another bill out the next day, giving them the seven days for their cut-off date. And usually, they receive their next month's bill with the unpaid balance on it before the cut-off date. So they get three notices before they are cut off."

Customers who have not broken contracts with the city in the past are provided with more time to pay the deposit, as well.

Norman asked if the city was in line with other municipalities concerning the amount of the deposit required to open a new utility account. City Treasurer Steve Anderson said the city's deposits are currently much too low and should reflect an amount two- to two-and-one-half times the normal bill.

"We have discussed that within the last year," said City Recorder Gleyn Twilla. "But it was indicated by some folks that they thought that was burdensome. You are going to have to make an adjustment on that at some time. You may not want to go two-and-one-half times the bill like the electric company, but a $50 deposit is almost just a nuisance deposit, to be honest."

"What I had proposed to do, is if we charge a higher deposit we could work with them on paying it over a period of time," said Rice. "And if it gets turned off for nonpayment, we would not charge them an additional deposit. It would just be a reconnection fee."

Rice also said residents are offered assistance with their heating bills through Matthew 25:40 and Northwest Tennessee Economic Development.

Norman asked Holden if City Hall is planning to consider a higher deposit in this budget year.

"I don't think so," said Holden. "We talked about it for a year or so, and I just think at this point in time with the economic conditions, that is something we want to burden our citizens with. That is my opinion. You might have a different opinion."

Water Superintendent Mike Morgan suggested that an employee go over the cut-off list to look for customers or businesses that are on the list for the first time and add a phone call to the cut-off procedure.

Alderman Freeman Dudley, who is not on the water committee, agreed that businesses need to be called before the utility is cut off.

"I know that (City Hall employees) have time and that they have done that in the past," said Dudley.

Currently, businesses that are cut off are given an earlier reconnection time than residences. Morgan offered to notify business owners that they are on the cut-off list when they arrive to disconnect the utilities and allow them time to pay the bill at City Hall before workers return in the afternoon.

Chaney worried that two trips to the business will cost the city more money in the long run, but Morgan said to avoid turning off the gas to a business, turning it back on and relighting the pilots will benefit both the businesses and the workload of city employees.

"Can we send that truck and those two men on two trips for $50 bucks?" asked Chaney.

"Probably not," said Holden. "I don't see how you exclude residences and just call businesses."

"That's what I feel," said Rice. "I don't see that it's fair to call just the business and not the residences."

Chaney suggested giving one page of cut-off numbers to employees at City Hall and asking them to give one attempt to call each person or business on the list.

"You log that attempt there and you document that there was no one there at that phone number," said Chaney. "(If they don't have the correct phone number listed,) that's their problem."

"They don't know that they haven't paid their bill?" asked Kirk.

"I don't know, Bob," said Chaney. "But we've got two men going to the house twice and that's costing us money."

"That's a phone call after three bills," said Holden. "That's four attempts to collect a bill."

"It looks like there ought to be a way for someone to make a call," said Chaney. "Just to be completely fair."

"It's got to be cheaper to make one phone call than to send that truck out there twice," said Dudley.

Rice said employees will have a problem calling customers at the beginning of the month and wondered if the employees should stay over to make phone calls during busy times.

"There are a number of things that factor in, that it's kind of hairy to stop and make a phone call," said Rice. "But I am up for doing whatever will make this better."

"Let me say this ... we've had one or two complaints - those complaints are legitimate, we've called this meeting to address those," said Holden. "But I hate to make drastic changes based on one or two complaints with one or two people that we could have taken care of. That's just my opinion."

Norman asked Anderson and Twilla their opinions, and committee members for suggestions.

Anderson said other municipalities do not call their customers before they cut them off.

"If we don't make contact, we are going to be right back where we started from," said Twilla.

"It seems to be working pretty well like it is, with only two complaints," said Kirk. "I can't see taking on a whole lot more to complicate the process."

"Short of any comment, is it the feeling of this committee to keep doing things the way we are doing it?" asked Norman.

Chaney suggested finding another way to do it in the future because the city is losing money with employees taking two trips to cut off and turn on meters. The rest of the committee agreed to keep the process the same.

The meeting adjourned at 9:15 a.m.