Delinquency Policy - BRMWC

Best Road Mutual Water Company
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Delinquency Policy

 
    Best Road Mutual Water Company (BRMWC)
 Delinquency Policy and Procedures 2019
 
 
Purpose
 The purpose of this policy is to establish a procedure concerning any and all accounts with a past due balance. Prompt payment of monthly billings for water usage by  all Members is critical to the financial health of BRMWC, and to the enhancement of the property values of our homes. The policies and practices outlined herein have  been adopted by the Board to ensure a prompt and fair collection of delinquent amounts. These policies and procedures shall remain in effect until such time as they  may be changed, modified, or amended by a duly adopted resolution of the Board of Directors.
 
 Definitions
 For the purpose of this policy, the following words are defined as such:
 Member – any person, firm or corporation using or receiving water from the Best Road Mutual Water Company.
 Delinquent Account – any account with a balance carried over from a previous billing cycle.
 Past Due Balance – any account balance that carries over from a previous billing cycle.
 Board or Board of Directors – the elected governing body of BRMWC as elected according to the BRMWC bylaws.
 
 BRMWC.com – official website of Best Road Mutual Water Company
 
 Rules, Regulations, and Allowances
  1. Monthly billings are generally mailed to each Member by the 15th of each month.
  2. Monthly billings are due and payable on the last calendar day of the month, and are considered delinquent if not received or are postmarked after 5pm on the last calendar day of the month.
  3. A late fee, as described in Water Rates section of BRMWC.com, will be added if the payment is not received when due.
  4. Returned Check Fees: A Member will be charged a fee equal to the charge BRMWC’s bank charges for any returned check unpaid by the Member's bank. The account will be considered delinquent of good funds are not received by the last day of the month.
  5. Monthly billings, late charges, interest and collection costs, including any attorneys' fees, are the personal obligation of the Members, but BRMWC reserves the right to place a lien on the real property associated with the Member account.
  6. Payments not made when due and remaining past due for 90 days may result in termination of service.
  7. A reconnection fee, to be determined by the Board, will be assessed to reconnect service.
  8. Termination of service because of delinquency will not occur immediately preceding a weekend or national holiday.
  9. A Delinquent Account that has not had any activity or correspondence from the Member for 30 days after service is terminated may be designated as a final account and processed for further collection action.
 
 Reasons for Disconnecting Service for a Delinquent Account
  1. Failure of the Member to pay amounts past due 90 days or more.
  2. Discovery of meter tampering, including bypassing the meter or altering its function.
  3. Failure of the Member to provide BRMWC or its agent access to the meter.
  4. Discovery of a condition which is determined to be hazardous or unsafe to the public health.
  5. Failure of the Member to provide BRMWC with current and/or complete billing information.
 
 Process for Reconnection of Service for a Delinquent Account
  1. Member must pay the entire past due balance plus any applicable reconnection expenses or penalties before service will be reconnected.
  2. Personal checks, certified checks or money orders will be accepted on any account disconnected for delinquency. Third party checks are not acceptable.
  3. Payments must be mailed or hand delivered to the agent designated by BRMWC.
  4. Personal checks drawn on an account which has had checks returned to BRMWC for any reason within one (1) year preceding the disconnection of service are not acceptable.
  5. Reconnection services will be scheduled during normal business hours (M-F between 9am and 5pm).
  6. Any service disconnected in error will have service re-established as soon as possible.
 
 Process for Identifying and Managing Delinquent Accounts
  1. A monthly audit of all members’ accounts will be conducted to determine list of delinquent accounts.
  2. BRMWC will deliver delinquency notices as follows:
    a.       1st notice – via regular US mail when 30 days delinquent
    b.       2nd notice – via regular US mail when 60 days delinquent
    c.       3rd notice – via registered mail with return receipt requested when 90 days delinquent
  3. Pre-Lien Letter:
    a.       If an account remains delinquent for 120 days, BRMWC, or its designee, will send a Pre-Lien Letter to the Member by certified and first class mail to
             the     Member's mailing address of record advising of the delinquent status of the account and impending collection action. Charges associated with the
             preparation of the pre-lien letter will be considered a "cost of collection" and     may be charged to the owner.
    b.       Notwithstanding this provision, BRMWC reserves its right to issue a Pre-Lien Letter following delinquency but before the account is 120 days past
            due, when (1) there is an open escrow involving the owner's lot; or (2) if a Special Assessment becomes delinquent.
    c.       The Pre-Lien Letter will be sent to the Member at least 20 days prior to the filing of the lien.
  4. Communications with the Member will be made to the Member's property address. Members have the right to provide a secondary address for the purpose of receiving collection notices. The Member’s request shall be in writing and shall be delivered to the BRMWC in a manner that verifies BRMWC has received it. Members may identify or change a secondary address at any time, provided that, if a secondary address is identified or changed during the collection process, BRMWC shall only be required to send notices to the indicated secondary address from the point BRMWC receives the request.
  5. Recording of the Lien:
    a.       If a Member fails to pay the amounts set forth in the Pre-Lien Letter, the Board of Directors of BRMWC shall decide, by majority vote in an open
            meeting, whether to authorize the recording of     a lien for the amount of any delinquent assessments, late charges, interest and/or costs of collection,
            including attorneys' fees, if any, against the Member’s property.
    b.       If the Board of Directors authorizes the recording of a lien against the Member’s property, the Member will be charged for the fees and costs of
             preparing and recording the lien. The lien may     be enforced in any manner permitted by law.
  6. Enforcing of the Lien:
    a.       Once the lien has been recorded, BRMWC, or its designee, may enforce the lien thirty (30) days after recordation of the lien and may foreclose the
             lien by non-judicial foreclosure sale.
    b.       Members could lose ownership of the subject property if a foreclosure action is completed and may also be responsible for significant additional fees
             and costs if a foreclosure action is     commenced.
    c.       The decision to foreclose on a lien must be made by a majority of the Board of Directors in an Executive Session meeting; and the Board of Directors
             must record their votes in the minutes of     the next open meeting of the Board.
    d.       The Board must maintain the confidentiality of the delinquent owner(s) by identifying the matter in the minutes by only the Member’s account
             number or the parcel number of the Member’s property.
  7. Release of Lien: Prior to the release of any lien, or dismissal of any legal action, all assessments, late charges, interest, and costs of collection, including attorneys’ fees, must be paid in full to BRMWC.
  8. Member’s Right to Inspect Accounting
    a.       With reasonable notice and during normal business hours, the Member is entitled to inspect BRMWC’s accounting books and records to verify the
             amounts owed.
    b.       In the event it is determined the Member has paid the monthly billings and all assessments on time, the Member will not be liable to pay the charges,
             interests, and costs of collection associated     with collection activities.
  9. Member’s Right to Dispute Resolution Prior to Foreclosure Action:
    a.       Prior to initiating any foreclosure sale on a recorded lien, BRMWC shall offer delinquent Members the opportunity to present their case to the Board
             of Directors in an Executive Session of the     Board.  
    b.       Alternatively, the Member has the right to dispute the delinquent status assessment debt by submitting a written request for dispute resolution to the
             Board of Directors of BRMWC for     consideration during an Executive Session of the Board.
  10. Payment Plans:
    a.       Any Member who is unable to pay delinquent monthly billings or assessments will be entitled to make a written request for a payment plan for
             consideration by the Board of Directors. An     owner may also request to meet with the Board in executive session to discuss a payment plan if the
             payment plan request is mailed within fifteen (15) days of the postmark date of the Pre-lien Letter.
    b.       The Board will consider payment plan requests on a case-by-case basis and is under no obligation to grant payment plan requests.
    c.       If the Board authorizes a payment plan, it may incorporate payment of ongoing monthly billings and assessments that accrue during the payment
            plan period.
    d.       If a payment plan is approved, additional late fees from BRMWC will not accrue while the Member remains current under the terms of the payment
             plan. If the Member breaches an approved     payment plan, BRMWC may resume its collection action from the time the payment plan was approved.
    e.       Nothing herein limits or otherwise affects BRMWC’s right to proceed in any lawful manner to collect any delinquent sums owed to BRMWC.
    f.        Any payments made shall be first applied to delinquent monthly billings and any assessments owed and only after these are paid in full, shall such
             payments be applied to late charges, interest,     and collection expenses, if any, including attorney’s fees, unless the Member and BRMWC enter into an
             agreement providing for payments to be applied in a different manner.
    g.       There is no right of offset. An owner may not withhold assessments owed to the Association on the alleged grounds the owner is entitled to recover
             money or damages from the Association for     some other obligation.
 
 Determination of Amounts owed by Each Member
  1. Monthly billings are determined based on water usage for the prior month by comparing meter readings month over month. Charges for water are detailed in Water Rates of BRMWC.com
  2. A courtesy billing statement is sent each month to the billing address on record with BRMWC. HOWEVER, IT IS THE MEMBER'S RESPONSIBILITY TO PAY EACH ASSESSMENT IN FULL EACH MONTH, REGARDLESS OF WHETHER A STATEMENT IS MAILED OR RECEIVED.
  3. From time to time, and in order to continue safe and reliable water delivery to members, the Board of Directors of BRMWC may authorize a special assessment, as described in Article 12 of BRMWC Bylaws in BRMWC.com.
    a.       All special assessments are due and payable on the date(s) specified by the Board of Directors of BRMWC on the Notice of Assessment
    b.       A late fee will be applied to any account which fails to pay all amounts due in a monthly billing.
    c.       An additional late fee will not be assigned in subsequent months if full payments are received for     each subsequent monthly billings.  
 
 
 
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