CHAPTER 3.05
UTILITY BILLING AND COLLECTION PROCEDURES
Sections:
3.05.010 Utility connections, billings and collections – Purpose.
3.05.030 Rules and regulations.
3.05.040 Responsibility of owner.
3.05.050 Billing cycle for utility services.
3.05.060 Due date for payments.
3.05.070 Allocation of payments.
3.05.080 Advance payment and deposits.
3.05.090 Deferred payment of delinquent accounts.
3.05.095 Forgiveness of exceptional residential water and/or commercial sewer charges.
3.05.110 Landlords and sellers to inform tenants and purchasers.
3.05.125 Equitable adjustment of rates upon collection of delinquent accounts.
3.05.130 Termination of utility service.
3.05.150 Appointment of agent for multiple dwelling units.
3.05.160 Retroactive effect of chapter.
3.05.010 Utility connections, billings and collections – Purpose.
The purpose of this chapter is to establish procedures regarding utility billing practices of the City, including procedures for termination and resumption of utility services, and to accomplish the prompt and efficient collection of amounts owing on the accounts of public utilities, including water, sewer, solid waste and other matters encompassed by the City’s utilities operations. The provisions of this chapter shall apply to water utility and sewer utility services from the time the water service for a building is turned on, and will be considered an established utility service until such time as the water service line or the sewer service line is physically disconnected from the City’s water utility system or sewer utility system, respectively. (Ord 06-169 §1; Ord 03-118 §2; Ord 96-06 §1)
3.05.020 Definitions.
For the purposes of this chapter, the following words are defined as follows:
"Account" means a record of charges for utility services provided to a service address.
"Finance Officer" means the Finance Officer of the City, as appointed under Chapter 2.08.
"Combined utility bill" means any billing for utility services provided to a service address for a specific time period.
"Customer" means a regularly billed consumer of utility services at the billing address as shown in the files of the Finance Officer.
"Service address" means the physical location in the City where utility services are provided. The term "service address" is intended to be expansive, and includes the parcel of real property where utility services are provided, together with all other parcels of real property which may be separate parcels of real property on the records of the Grant County assessor, but which parcels have been integrated into a single use or operation with the real property to which the utility service is actually delivered, and which use is being benefitted by the utility service. The term "premises" may be used interchangeably with "service address".
"Utility services" means sewer service under Title 13, water service under Title 13 and garbage or refuse under Title 6 provided to a certain service address. (Ord 03-118 §2; Ord 00-68 §1; Ord 96-06 §1)
3.05.030 Rules and regulations.
The Finance Officer may promulgate rules and regulations, develop administrative procedures, and do all things necessary to effectuate the purposes of this chapter. Rules and regulations promulgated by the Finance Officer shall be on file at City Hall and available for public inspection during regular business hours, and shall be subject to review by the Council. (Ord 03-118 §2; Ord 96-06 §1)
3.05.040 Responsibility of owner.
A. All charges for utility services will be charged against the service address and against the owner(s) of the premises. Accounts shall be kept in the name of the owner of the premises and not in the name of an tenant; and the owner only, or his legally authorized agent, shall be held responsible for payment or charges for utility services.
B. Provided, that persons holding property under a written lease agreement, upon a written application to the City signed by the owner of the premises and the tenant, and where it is more convenient to keep the account in the name of the tenant, may be billed accordingly. The owner shall not be released from the responsibility for payment and must pay in case the agent or tenant refuses or neglects to do so. (Ord 03-118 §2; Ord 96-06 §1)
3.05.050 Billing cycle for utility services.
Unless otherwise directed for administrative convenience and efficiency by the Finance Officer, billings for utility services shall be issued on a monthly cycle. Current charges shall be itemized for each utility service and other items as the Finance Officer may prescribe. Past due charges may be shown as a single delinquent balance. (Ord 03-118 §2; Ord 96-06 §1)
3.05.060 Due date for payments.
A. All charges for utility services are due upon the mailing of the combined utility bill, and are payable to the Finance Officer.
B. Any Account having a balance greater than fifteen dollars ($15) on the 26th day of the month shall be delinquent. Upon delinquency, there shall be assessed a penalty in the amount of one percent (1%) per month of the outstanding balance, including penalties, of the account, or ten dollars ($10.00) per month, whichever is greater.
C. When an account becomes delinquent, the Finance Officer or his/her designee shall cause a notice of delinquent account to be deposited in the United States mail, addressed to the customer at the service address, with a copy of the owner of the premises, if the owner is not the customer.
D. Deposit in the United States mail of a notice of delinquent account shall be deemed full and complete notice to the customer of the nature and amount of any billing for utility services.
E. The notice of delinquent account shall state that unless all delinquencies are corrected within ten (10) days of the date of the notice of delinquent account, the City will disconnect or discontinue the utility service. The notice of delinquent account shall further state that, if the customer has questions concerning the account or disputes the amount of the account, they may appeal to the Finance Officer whose address and telephone number shall be stated on the notice of delinquent account.
F. Failure to receive mail or notices is not a valid reason for failure to pay charges for utility services when due. (Ord 03-118 §2; Ord 96-06 §1; Ord 05-151 §1)
3.05.070 Allocation of payments.
Payments received for utility services shall be allocated to charges in the following order: taxes, refuse, sewer, water, and penalties. (Ord 03-118 §2; Ord 96-06 §1)
3.05.080 Advance payment and deposits.
A. At the time an account is requested and before it is authorized, the Finance Officer shall require the person requesting utility services either to make a deposit with the City or present a copy of a verifiable prior utility credit rating suitable to the Finance Officer to assure that the account will not become delinquent. A deposit, if required, will normally be based upon sixty days of average charges for the utility services requested.
B. The Finance Officer may require new or existing customers to make an advance payment or security deposit to insure payment for utility services, labor, materials, or other items when warranted by such circumstances as the nature of the charged, the amount of the charge, past delinquency, or other evidence of the customer’s inability or unwillingness to pay promptly utility charges owing or to become owing.
C. In the event an account receives a third notice of delinquency during any consecutive twelve-month period, the Finance Officer may further request a deposit or additional deposit be submitted in accordance with this section, along with payment or arrangement thereof for the delinquent account.
D. In the event a customer files a petition for relief under any chapter of the United States Bankruptcy Code, the Finance Officer may require the customer to make a deposit with the City, as set out in subsection (A) of this section.
E. A deposit, once established, may be refunded with interest at the standard passbook savings rate in whole or in part to the customer or credited to the account of the customer upon receipt by the City of the person’s prior utility credit rating deemed suitable by the Finance Officer to assure that the account will not become delinquent. In the absence of such assurance, the deposit may be retained by the City until an account is terminated or otherwise discontinued. The City may then, at its option, apply such deposit to pay fully any remaining charges on the account. The deposit, or any portion thereof, may not be used as payment on the account until the account has been terminated and all utility services have been discontinued If circumstances such as timely payment history warrant, the Finance Officer may, by determining that the City is assured that an account will not become delinquent, release all or part of the deposit with interest at the standard passbook savings rate to the customer at their request; provided, however, that no such refund will occur for at least twelve months from the time of initial deposit. Provided, however, an account established by a customer who does not own the premises where the utility services are to be furnished shall make a deposit before the provision of utility services.
F. A deposit may be required on commercial accounts in a manner consistent with the procedure set forth in this section when the Finance Officer determines that such deposit is necessary based on utility credit rating and/or payment history. (Ord 03-118 §2; Ord 96-06 §1)
3.05.090 Deferred payment of delinquent accounts.
A. The Finance Officer may establish a procedure whereby termination of utility service is delayed upon condition that the customer enter into a deferred payment agreement.
B. The Finance Officer shall take into account when establishing the terms of a deferred payment agreement whether the account is residential or commercial, the size of the delinquency, the customer’s ability to pay and the customer’s payment history, the length of time the account has been delinquent, the reasons for the delinquency and any other relevant circumstances.
C. The Finance Officer may refuse to enter into a deferred payment agreement with a customer who has defaulted on a previous deferred payment agreement.
D. Nothing in this section shall require the Finance Officer to enter into a deferred payment agreement at the request of a customer. (Ord 07-209 (2007); Ord 03-118 §2; Ord 96-06 §1)
3.05.095 Forgiveness of exceptional residential water and/or commercial sewer charges.
A. Definitions. For purposes of this section, terms shall have the following meanings:
"Applicable minimum utility charge" means the greater of the minimum rates for utility services for the billing period set forth in this chapter, or the utility charges that would have been incurred by the utility customer for normal use of utility services, as determined by the City according to the information presented by the utility customer in proof the utility services were substantially increased utility services, plus a factor of ten percent.
"Exceptionally increased commercial sewer charges" means utility charges to a commercial sewer customer for a billing period that satisfy the following requirements: (1) the billing for commercial sewer usage of the utility customer is exceptionally increased for the subject billing cycle illustrated by a comparison of the utility customer’s bill for commercial water usage with the utility customer’s bill for water usage for the same period for the previous year; and (2) the increased water use is due to water uses that do not cause a similar increase in commercial sewer services provided by the City, such as lawn watering.
"Exceptionally increased residential water charges" means utility charges to a residential water customer for a billing period that satisfy the following requirements: (1) the residential water provided by the City to the utility customer for the subject billing cycle had increased exceptionally, illustrated by a comparison of the utility customer’s bill for residential water usage for the billing period with the utility customer’s bill for residential water usage from the previous year, over a period of six months; (2) the increased water use is due to an underground or similar leak in the water lines within the utility customer’s premises or property, which leak is evidenced by some proof, such as a repair bill; and (3) the utility customer did not know, or, under the circumstances, it is reasonable to expect that the utility customer did not know, of the underground or similar leak in the water lines.
"Exceptionally increased utility charges" means exceptionally increased residential water charges and/or exceptionally increased commercial sewer charges.
"Utility charges" means charges for water delivered by the City to residential water customers and charges for sewer services provided by the City to commercial sewer customers.
"Utility customer" means either a residential water customer or a commercial sewer customer.
B. Forgiveness of Exceptionally Increased Utility Charges. Upon written application by a utility customer no later than sixty days after billing thereof by the City, and a finding the subject utility charges are exceptionally increased utility charges, the City Finance Officer/Clerk or the City Council shall forgive exceptionally increased utility charges to a utility customer, but never below the applicable minimum utility charge, as follows:
1. The City Finance Officer/Clerk shall forgive substantially increased utility charges up to a maximum two hundred fifty dollars.
2. The City Council may forgive part or all of substantially increased utility charges that are in excess of two hundred fifty dollars, in such amount the City Council finds is not contrary to the best interests of the City. (Ord 15-456 §4; Ord 00-74 §2. Formerly 13.02.075)
3.05.110 Landlords and sellers to inform tenants and purchasers.
A. A person selling or letting any premises subject to delinquency for utility services shall provide the purchaser or renter, at or before the sale or rental, with a copy of the most recent combined utility bill. A person failing to make such disclosure is subject to a civil penalty of fifty dollars ($50.00).
B. Every owner or occupant is obligated to make provision for the payment of charges regularly listed upon the combined utility bill before transferring ownership or occupancy.
C. The City has a right of action in a court of competent jurisdiction against a former owner or occupant of premises for unpaid charges for utility services, including any special charges imposed by this chapter, plus costs of suit and reasonable attorney’s fees. A new owner or occupant may pay such unpaid charges and become subrogated to the right of action of the City under this subsection.
D. The Finance Officer may forgo termination of service at the request of a new owner or occupant of premises who did not receive a copy of the latest combined utility bill as required by subsection (A) of this section, so long as the new customer remains current in the payment of utility services received by him or her. (Ord 03-118 §2; Ord 96-06 §1)
3.05.120 Liens.
A. If an account is delinquent, there shall be a lien in favor of the City, as follows:
1. Sewer Utility Services. Upon delinquency, the City shall have a lien against the service address as provided in RCW 35.67.200 et. seq., and may further be enforced as provided in the applicable laws. The period for which the lien is applicable without written notice is one year.
2. Water Utility Services. Upon delinquency, the City shall have a lien against the service address, for the amount attributable to charges for water utility services for up to four months, enforceable by termination of service, all as provided in RCW 35.21.290 and 35.21.300, and any other applicable laws, and as described in this chapter.
3. Garbage Utility Services. Upon delinquency, the amount attributable to charges for garbage utility services shall become a lien against the service address as provided in RCW 35.21.130 and other applicable laws.
B. All additional lien and enforcement rights by statute and at common law are reserved by the City. (Ord 03-118 §2; Ord 00-68 §2; Ord 96-06 §1)
3.05.125 Equitable adjustment of rates upon collection of delinquent accounts.
Upon the collection of a delinquent account, the monies shall be deposited into the fund used for the account, and to the extent such adjustment can be made, the City shall adjust the rates of other similar users of the utility service to which the delinquent account was incurred, on an equitable basis attributable to the amount collected. (Ord 03-118 §2; Ord 00-68 §3, 2000)
3.05.130 Termination of utility service.
A. Utility service to any service address may be terminated for nonpayment, or any other violation of this chapter, or the chapter regarding the rules and regulations of the utility service.
B. Prior to termination of utility service because of nonpayment the Finance Officer shall cause notice of at least ten (10) days to be given as prescribed in subsection (c). Notice is not required of service termination at the request or with the consent of the customer, necessary for repair, in an emergency, or for any other reason.
C. A notice of termination of utility service shall include substantially the following information:
NOTICE OF TERMINATION OF UTILITY SERVICE
Your CITY UTILITY SERVICE WILL BE TERMINATED TEN DAYS FROM THE DATE OF THIS NOTICE, unless all amounts not disputed are paid. You may make arrangements to pay the delinquent amount by phoning or writing:
CITY OF QUINCY
Phone 787-3523
104 B Street SW
P.O. Box 338
Quincy, WA 98848
This office is open every business day from 9:00 a.m. to 5:00 p.m. If you dispute any amounts due, you may request an information dispute hearing by visiting, phoning, or writing:
Finance Officer
Phone 787-3523
City Hall, 104 B Street SW
Quincy, WA 98848
This office is open every City business day from 9:00 a.m. to 5:00 p.m. Your request for a hearing must be received by the Finance Officer within five (5) business days.
NOTE: IF SERVICE IS TERMINATED, A RECONNECTION/REINSTITUTION FEE WILL BE CHARGED. A collection fee will be charged for delinquent account collection efforts at the property. Prompt payment of your utility bill at the above address will save you and the Finance Officer expense and annoyance.
D. The notice of termination may be posted at the service address, mailed to the service address, or delivered personally to the customer.
E. The termination of utility service to a service address does not derogate from the determination by the City at a later time that the premises are a nuisance, or the City’s ability to abate the nuisance as prescribed by law. (Ord 10-284, §2; Ord 03-118 §2; Ord 96-06 §1)
3.05.150 Appointment of agent for multiple dwelling units.
In cases of hotels, motels, mobile home parks, condominiums, apartment houses, other multiple dwelling unit arrangements, or any other areas whatsoever requiring utility service, the Finance Officer may in their discretion require multiple tenants or property owners to appoint an agent responsible and accountable to the City for making payment for utility services when the Finance Officer deems multiple billings unreliable or inconvenient. Failure of an agent to discharge any duty imposed by this section shall not relieve any property owner or any other person of any legal obligation imposed by this chapter and the City reserves all rights and remedies at contract and law. (Ord 03-118 §2; Ord 96-06 §1)
3.05.160 Retroactive effect of chapter.
All accounts in the name of the renter, lessee, or tenant of the property and not in the name of the owner at the time of passage of the ordinance codified in this chapter shall have until the first day of September, 1996 to comply with the provisions of this chapter. (Ord 03-118 §2; Ord 96-06 §1)
3.05.170 Nonwaiver.
Failure on the part of the City to provide notices to delinquent accounts as set forth in this chapter on the dates set forth shall not constitute a waiver on the part of the City to subsequently provide such notices and effect the remedies provided for in this chapter. (Ord 03-118 §2; Ord 96-06 §1)
3.05.180 Remedies not exclusive.
The remedies provided in this chapter are not exclusive, and the City retains the right to such other remedies as it may have at law. (Ord 03-118 §2; Ord 96-06 §1)
3.05.190 Attorney’s fee.
In any action brought pursuant to this chapter, the prevailing party shall be entitled, in addition to costs allowed by the court rules, to a reasonable attorney’s fee to be established by the court. (Ord 03-118 §2; Ord 96-06 §1)
3.05.200 Severability.
Should any section or any portion thereof of this chapter be found to be invalid, such invalidity shall not affect the remaining sections. (Ord 03-118 §2; Ord 96-06 §1)