1. EASTERN MUNICIPAL WATER DISTRICT BILLING DELINQUENCY PROCESS Alana Aanestad Director of Customer Service March 18, 2015 www.emwd.org 1

2. Presentation Topics www.emwd.org 2 Current Process New Process Customer Outreach Proposed New Charges

3. Current Delinquency Management Process www.emwd.org 3 DAYACTIONDUE DATE 1Bill is MailedBill Date + 15 Days 21Past Due Notice MailedPast Due + 15 Days 35 10 Day Notice Issued for Landlords (Multiple Living Units) 37Final Notice Mailed/DeliveredNotice + 7 Days 43Automated Call (Auto-Caller) Placed 45 Delinquency Charge Assessed  Order to Disconnect Printed  Courtesy Door Hanger Delivered Notice Date + 3 49 Order to Disconnect Served Excludes Fridays / Weekends If no payment received, service disconnected Notice Served, Fee of $70 assessed, even if customer pays prior to disconnection Issues: -With no late fees, there is no customer incentive to pay timely. -Explanation of the “service disconnect” fee is difficult, especially if service is not actually disconnected due to last minute payments. Issues: -With no late fees, there is no customer incentive to pay timely. -Explanation of the “service disconnect” fee is difficult, especially if service is not actually disconnected due to last minute payments.

4. New Delinquency Management Process www.emwd.org 4 Payment prior to the shut off date: o Require only the past due amount to prevent shut off Payment after the service has been shut off: o Require the full past due amount + Reconnect Fee to restore DAYACTION 1Bill is Mailed, Due in 15 Days 20After 4 Day Grace Period, Late Fee of $25 is Assessed; Past Due Notice is Mailed 35 Notice of Intent to Disconnect Service is Mailed; Customer Notified to Pay Within Ten Days to Avoid Shutoff 49Service Locked Off 54 Account Closed, Deposit Applied (if applicable), Any Remaining Unpaid Balance Sent to Collections Advantages: -Late fees encourage timely bill payment -Reconnection charges will be easier to explain Advantages: -Late fees encourage timely bill payment -Reconnection charges will be easier to explain

5. Customer Outreach www.emwd.org 5 Newsletter beginning May 2015 – issue after “go live” Special Insert on the first full month before “go live” date Bill Messages (including, e-Bill, banner, pop-up and email campaign eBlast to EMWD news subscribers Website web pages explaining how to read your bill and delinquency process Website home page banner during “go live” month Customer Outreach Campaign(s)

6. Proposed New Charges www.emwd.org 6 Late fee amount based upon benchmarking survey Reconnect fees based on average cost of service Customer service representatives will have discretion to reduce or abate late fees when circumstances warrant DESCRIPTIONCURRENT CHARGEPROPOSED CHARGE - FEES FOR SERVICE Service Disconnect Fee$70.00N/A (Discontinue) Late Fee $25.00 Reconnect Fee$55.00 After Hours Reconnect Fee$197.00$215.00

7. Next Steps www.emwd.org 7 Receive Initial Feedback from Board – March Board Consideration/Adoption of Revised Administrative Code and Schedule of Rates, Fees & Charges – May Customer Outreach – May through July Complete Billing System Programming Changes – June Implement Changes - July

8. Contact Information EASTERN MUNICIPAL WATER DISTRICT Alana Aanestad Director of Customer Service (951)928-3777 Ext. 4489 aanestaa@emwd.org www.emwd.org 8