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Utility Billing Polices and Procedures_Delinquent AccountsTHE CITY ©F DUbUgU@ ~T T~ ~ AlWlnarical~gi ~J Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members . FROM: Michael C. Van Milligen, City Manager SUBJECT: Utility Billing Policies and Procedures DATE: April 30, 2008 Finance Director Ken TeKippe is recommending amendments to three City ordinances. 1. Code of Ordinance 40-38 and 44-86 Allow the City to file a property tax lien for delinquent utility bills as the incidents occur during the year, instead of all the liens just once at the end of the year. 2. Code of Ordinance 44-204 Allow the filing of a lien for delinquent water accounts. Two other changes include: 1. Institute $25 administrative fee for accounts turned over to a collection agency. 2. Increase disconnection fee to $40 from $20 to help cover costs associate with disconnect and reconnect. City Council approval of the revised ordinances will enhance collection efforts relative to delinquent utility accounts. The administrative charge is being implemented and the disconnect fee increased to recover specific costs associated with City collection efforts. These changes transfer the payment of additional collection costs from all City utility customers to those customers actually causing the expense. Without these changes, the expenses would be recovered as a part of the rate fee structure. concur with the recommendation and respectfully request Mayor and City Council approval. / ~ ~~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Ken TeKippe, Finance Director Bob Green, Water Department Manager THE CITY OF DUB E Memorandum TO: Michael C. Van Milligen, City Manager ~~~ FROM: Ken TeKippe, Finance Director SUBJECT: Utility Billing Policies and Procedures DATE: April 17, 2008 A group of employees met recently and discussed several Utility Billing Policies and Procedures. As a result of the recommended changes, three Code of Ordinances relative to delinquent utility bills have been updated by Crenna Brumwell, Assistant City Attorney. We also made some grammatical, capitalization and punctuation changes for clarity. Code of Ordinance 40-38 (solid waste) and Code of Ordinance 44-86 (sanitary sewer and stormwater) are updated to specifically allow the City to file a property tax lien for delinquent utility bills with Dubuque County periodically during the year. Previously the ordinances required certification to the Dubuque County by December 31. Code of Ordinance 44-204 was changed to begin allowing the City to periodically file property tax liens with Dubuque County for delinquent water accounts. City Council approval of the revised ordinances will enhance collection efforts relative to delinquent utility accounts. The changes will allow for timely filing of property tax liens for delinquent utility accounts (as opposed to filing annually by December 31 each year) and allow for filing tax liens for delinquent water accounts. Previously property tax liens were not filed for delinquent water accounts. Normal monthly billings, notices, curtailing service etc. will continue to be the primary collection procedures. We do not plan to file property tax liens against owners for delinquent tenant utility bills. Two other changes that will be implemented include: 1. Institute $25 administrative fee for accounts turned over to a collection agency. 2. Increase disconnection fee to $40 from $20 to help cover costs associated with disconnect and reconnect. The administrative charge is being implemented and the disconnect fee increased to recover specific costs associated with our collection efforts. These changes transfer the payment of additional collection costs from all City utility customers to those customers actually causing the expense. Without these changes the expenses would be recovered as a part of our rate fee structure. Thank you for your consideration. KT/jg Enclosures cc: Crenna Brumwell, Assistant City Attorney Prepared by: Crenna M. BrumweA, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4381 ORDINANCE NO. 29 -08 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 40-38 CHARGES -BILLING AND COLLECTION. Section 1. City of Dubuque Code of Ordinances § 40-38 is amended to read as follows: Sec. 40-38. Charges -Billing and Collection: (a) The City Manager is authorized to bill tenants upon the written request of the property owner and according to a procedure to be established by the City Manager. The property owner in such cases shall provide any information on each tenant's mailing address to aid in the collection of fees for City services. In all cases, the property owner shall remain liable for the payment of all charges required by this Chapter. (b) All accounts shall be billed monthly. The payment of bills is subject to the terms of Section 44-204 of this Code. (c) The collection of solid waste provided class i premises and the maintenance of the availability of such service, whether or not such service is used regularly or not at all by the owner of such class I premises, is hereby declared a benefit to said premises at least equal to the monthly charges specified, and in case of failure to pay the monthly charge when billed as heretofore provided, then the monthly charge shall become a lien against the property benefited or served and shall be collected in the same manner as general property taxes. (d) It shall be the duty of the City Manager to certify the actual rates and fees to the City Clerk who, in turn, shall certify .such costs plus the costs of administration to the County Treasurer and all such costs shall then constitute a lien against said property and be collected with and in the same manner as general property taxes on said property. Section 2. This Ordinance shall take effect on publication. Passed, approved and adopted the 5th day of May , 2008. Roy D. Buhl, Mayor Attest: eanne F. Schneider, City Clerk EFFECT OF AMENDMENT Sec. 40-38. Charges -Billing and Collection: (a) The City Manager is authorized to bill tenants upon the written request of the property owner and according to a procedure to be established by the City Manager. The property owner in such cases shall provide any information on each tenant's mailing address to aid in the collection of fees for City services. In all cases, the property owner shall remain liable for the payment of all charges required by this Chapter. (b) All accounts shall be billed monthly. The payment of bills is subject to the terms of Section 44-204 of this Code. (c) The collection of solid waste provided class I premises and the maintenance of the availability of such service, whether or not such service is used regularly or not at all by the owner of such class I premises, is hereby declared a benefit to said premises at least equal to the monthly charges specified, as in case of failure to pay the monthly charge when billed as heretofore provided, then the monthly charge shall become a lien against the property benefited or served and shall be collected in the same manner as general property taxes. ~d) It shall be the duty of the City Manager to certify the actual rates and fees to the City Clerk who, in turn, shall certify such costs plus the costs of administration to the County Treasurer and all such costs shall then constitute a lien against said property and'be collected with and in the same manner as general property taxes on said property . , Prepared by: Crenna M. Brumwell, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4381 ORDINANCE NO. 30 -08 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 44-86 LIEN FOR FAILURE TO PAY. Section 1. City of Dubuque Code of Ordinances § 44-86 is amended to read as follows: Sec. 44-86. Lien for Failure to Pay. (a) The City shall have a lien upon the real property served by the sanitary system for all delinquent rates and charges: Bills for sewage charges. shall be delinquent when the same are unpaid for a period of twenty-five (25) days following the billing date, and if not paid, a penalty of five (5) percent shall be added to the sewage bill. (b) It shall be the duty of the City Manager to certify the actual rates and charges to the City Clerk who, in turn, shall certify such costs plus the costs of administration to the County Treasurer and all such costs shall then constitute a lien against said property and be collected with and in the same manner as general property taxes on said property. Section 2. This Ordinance shall take effect on publication. Passed, approved and adopted the 5th day of May , 2008. Roy D. B ol, Mayor Att t: Jeanne F. Schneider, City Clerk EFFECT OF AMENDMENT Sec. 44-86. Lien for Failure to Pay. (a) The City shall have a lien upon the real property served by the sanitary system for all delinquent rates and charges. Bills for sewage charges shall be delinquent when the same are unpaid for a period of twent -fy ive ~-(2~5) days following the billing date~'~~~, and if not paid, a penalty of five (5) percent shall be added to the sewage r°bill. (b) It shall be the duty of the City Manager to certify the actual rates and charges to the City Clerk who in turn shall certify such costs plus the costs of administration to the County Treasurer and all such costs shall then constitute a lien against said property and be collected with and in the same manner as general property taxes on said property. ,. Prepared by: Crenna M. Bramwell, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4381 ORDINANCE NO. 31 -08 AMENDING CITY OF DUBUQUE CODE OF ORDINANCES SECTION 44-204 PAYMENT OF BILLS. Section 1. City of Dubuque Code of Ordinances § 44-204 is amended to read as follows: Sec. 44-204. Payment of Bills: (a) Payment of bills may be made at locations that have been designated by the City Manager, after official publication. (b) All utility bills are due when rendered. (c) If a bill remains unpaid twenty-five (25) days following the billing date, there shall be added to the bill a penalty of five (5) percent of the total utility bill for late payment. (d) If bills are not paid. within thirty (30) days following the billing date, the City reserves the right to discontinue water service to the delinquent customer by shutting off the water service. The water service shall not be restored until all current, delinquent, and penalty charges, in addition to a turn on charge, have been paid. (e) If a delinquency exists for a rental property in excess of sixty (60) days, the owner shall assume responsibility for the future billings to such account. (f) The City shall have a lien upon the real property served by the City's water system for all delinquent rates and charges. It shall be the duty of the City Manager to certify such costs plus the costs of administration to the County Treasurer and all such costs shall then constitute a lien against said property and be collected with and in the same manner as general property taxes on said property. Bills for water service charges shall be subject to a delinquency lien certification when the same are unpaid for a period of sixty (60) days after the due date. Section 2. This Ordinance shall take effect on publication. Passed, approved and adopted the Stn day of May , 2008. 7 ~r ~ r Roy b. B I, Mayor Attest: _~`'" eanne F. Schneider, City Clerk EFFECT OF AMENDMENT Sec. 44-204. Payment of Bills: (a) Payment of bills may be made at locations that have been designated by the sCity Manager, after official publication. (b) All utility bills are due when rendered. (c) If a bill remains unpaid twenty-five (25) days following the billing date, there shall be added to the bill a penalty of five 5) percent of the total utility bill for late payment. (d) If bills are not paid within th;rty 0830) days followinga#ter the billing date, the sCity reserves the right to discontinue water service to the delinquent customer by shutting off the water service. The water service shall not be restored until all current, delinquent1 and penalty charges, in addition to a turn on charge, have been paid. /n\ If ~+ hill r ~inc• ~ ~nr»irl 4hirF~i /'2(l~~~t°~,e-b+l~~f}Q ~~o +hori~ ~h.~ll ho ~rlrlnrl ~..; n--rc~-a-a~un-vc-avv~v 0 Se (e) If a delinquency exists for a rental property in excess of sixty (60) days, the owner shall assume responsibility for the future billings to such account. The Citv shall have a lien upon the real property served by the City's water stem for all delinquent rates and charges. It shall be the duty of the City Manager to certify such costs plus the costs of administration to the County Treasurer and all such costs shall then constitute a lien against said property and be collected with and in the same manner as general property taxes on said property. Bills for water service charges shall be subject to a delinquency lien certification when the same are unpaid for a period of sixty (60) days after the due date.