Critics Complain of Water Bill Late Fees

If you’re late paying your water bill, the city will charge you a penalty equivalent to 8 percent of your bill.

The only problem is, you probably won’t realize it until you get your next bill. That’s because there’s no place on the water bill that warns customers about the late fee, said Clint Worthington, a long-time critic of the status quo in San Juan Capistrano.

“There’s nothing about a late charge. There’s no late charge date, no late charge amount or a percent,” Worthington pointed out at the City Council meeting Tuesday.

“I’m just horrified. What’s going on in the city is just beyond all reason,” said Ian Smith, another council watchdog.

Council members were discussing extending the grace period to allow bill payers and extra five days before they get charged a penalty.

Councilman Sam Allevato read the back of the bill and noted that it does discuss penalty fees should water service be turned off because of nonpayment. And there are more penalties to resume water service.

“I think that’s a fair way to any reasonable person that you have to get your payment in within 45 days,” he said.

Councilman Derek Reeve asked City Attorney Omar Sandoval if the city is allowed to collect a penalty fee if it’s not delineated on the bill. Sandoval said no law requires the fees be spelled out on the bill.

Still, Councilwoman Laura Freese said the city should change the verbiage on the water bills.

“I think we need to honor our residents by making it as clear as possible,” she said, adding that she believes the oversight was “not malicious.”

The council unanimously voted to change the grace period before the late fee kicks in from 10 days to 15 days, making it the longest grace period among those living in San Clemente or customers of the  and  water districts.

Of those jurisdictions, San Clemente and Santa Margarita water users pay 10 percent extra if they're late and South Coast customers pay a flat $15 penalty fee.