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HomeMy WebLinkAbout1997-086 CCR• adoption: Member } A-1'hleev) introduced the following resolution and moved its d • 0 RESOLUTION NO. v _I -WD RESOLUTION ADOPTING A POLICY FOR PUBLIC UTILITY ACCOUNT COLLECTIONS WHEREAS, the City Council has found it to be in the best interest of the City to adopt certification by special assessment to the property taxes as the primary means of collecting delinquent public utility accounts; and WHEREAS, the attached policy for public utility account collections defines the major elements of the process that shall be followed in the utility billing cycle; and WHEREAS, minor elements of the process can change from year to year and can be better set in an administrative procedure approved annually by the City Council at the time utility rates are adopted; and WHEREAS, under Minnesota Statutes and City Ordinance, public utility services are considered to be services to the property and are obligations of the owner of the property. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: 1. The Policy for Public Utility Account Collections is adopted. 2. The staff shall annually submit to the City Council, as part of the utility rate study, a procedure setting dates, fees, and other elements of the procedure. 3. For 1997, there will be one certification cycle timed to meet Hennepin County's deadlines for special assessment certifications and the interest rate will be 7 % as set by Resolution 97-28. 4. All residential utility services shall be billed to the owner of the property. 5 1 is 11100 Date Mayor ATTEST: —kM&A4k City Clerk • RESOLUTION NO. -J-- p The motion for the adoption of the foregoing resolution was duly seconded by member Rp�e f-} Pp ??- , and upon vote being taken thereon, the following voted in favor thereof: M4pnaKrd9ness, ECa+hleenI Ca�rrv►odI) bebra �-iilstrcnn, Gay Lasr-ani �abei't-PeP�e and the following voted against the same: N o h e whereupon said resolution was declared duly passed and adopted. • 0 • May 8, 1997 POLICY FOR PUBLIC UTILITY ACCOUNT COLLECTIONS PURPOSE The purpose of this policy is to provide an orderly and reasonable method for the collection of accounts of the various utilities operated by the City of Brooklyn Center and any which may be added in the future. This policy is intended to follow with the provisions of Minnesota State Law, Brooklyn Center City Charter and City Ordinance. Utilities currently operated by the City of Brooklyn Center and the corresponding ordinances are as follows: Water and Sanitary Sewer, Chapter 4; Recycling, Chapter 7; and Storm Drainage, Chapter 16. POLICY In keeping with Minnesota State Law, all municipal utility services shall be considered to be services to the property, not to the person. All residential utility services shall be billed to the owner of the property, not to the tenant. Commercial or industrial properties may be billed to either the owner or tenant. Utility services shall be billed to the appropriate party by the Finance Department according to the rate schedule adopted annually by resolution by the City Council. Utility accounts shall become due immediately following billing and must be paid by the due date printed on the bill. Special assessment against the benefited • property of any delinquent unpaid accounts shall be considered as the primary means of collection. Shutting off of water service to the benefited property shall be an alternate means of collection in any situation where special assessment isn't possible or practical and for situations where the customer has failed to provide a water meter reading for more than four quarters. Any city utility service for which a rate schedule is established by resolution is eligible for collection by means of either special assessment or water shut off. PROCEDURE NORMAL BILLING AND COLLECTION 1) A meter card is mailed to each residential property 28 days prior to the billing date. Readings must be submitted to the Finance Department by the date printed on the meter card. Penalties for failure to submit a meter reading will be charged on the date of billing as defined by the rate schedule. Customers who fail to submit a meter reading card for four quarters, will be required to submit a meter reading, or face the shut off of water service. 2) A public utility bill is due 28 days from the date of billing. 3) The late payment penalty as defined in the rate schedule shall be applied five working days after the due date. 4) A delinquent billing is generated for each account unpaid after 35 days from the date of billing. Customers have 21 days to pay this delinquent bill. • 9-7"30 DELINQUENT ACCOUNTS • Delinquent accounts shall be pended as a special assessment. Rental Property (Commercial or Industrial) If delinquency not incurred by current tenant a) Obtain a meter reading and date of change of occupancy, and calculate final bill for previous tenant b) If a forwarding address is available for the previous tenant, send a final bill. Send an informational copy to the property owner. C) If no address is available, notify property owner of delinquent final bill d) If not paid in 28 days, the unpaid amount shall be certified as a special assessment If delinquency incurred by current tenant, follow normal procedures for delinquent bills and certification by special assessment to the property tax. FINAL BILLS All final bills unpaid after 28 days shall be pended as a special assessment • Rental Property (Commercial or Industrial) a) All final bills unpaid after 28 days shall be billed to the property owner, due in 28 days after the date of the billing b) If not paid in 28 days, the unpaid amount shall be certified as a special assessment Other Property a) After 28 days unpaid, the bill shall be pended as a special assessment, and a letter of explanation sent to the new property owner. b) Two more attempts 28 days apart shall be made to collect from the previous property owner. If unpaid, the bill shall be certified as a special assessment. RETURNED CHECKS Checks which are returned to the City for non -sufficient funds, account closed, or other wise not honored by the bank shall be charged the maximum service fee allowed by Minnesota Statutes. 0 q-7-gto • SPECIAL ASSESSMENTS For accounts that remain uncollected after performance of the normal billing and collection procedure, special assessment against the property shall be considered as a primary means of collection. 1) The annual City Council resolution adopting the utility rate schedule shall establish the number of assessment cycles per year and a schedule for public hearings to be held at City Council meetings for the purpose of adopting a certification roll of delinquent utility accounts for special assessment. At least one certification cycle will be timed each year to coincide with Hennepin County's requirements for certification to the following year's taxes. Additional certification cycles may be set in the annual resolution. 2) A certification cut-off date shall be established at which time all accounts which have been billed a delinquent bill and the account is unpaid as of the due date on the delinquent bill, shall have the balance on the account included in the preliminary special assessment certification roll. 3) A notice of public hearing will be published in the city's official newspaper at least two weeks prior to the public hearing. A notice of the public hearing and a copy of the proposed special assessment roll will be sent by first class mail to each affected property owner at least two weeks prior to the public hearing. 4) The owner of the property shall have the option of paying the balance due on the account until the date the notice of public hearing is mailed. After the date the notice of public hearing is mailed, payments is will still be accepted, but will include the certification charge. 5) The public hearing will be held at a City Council meeting at which the property owners shall have the opportunity to object to the special assessment. 6) After the public hearing, for each special assessment sustained by the City Council, the property owner shall have the options of. a) To prepay the special assessment and the special assessment certification charge listed on the preliminary roll, but without additional interest after the public hearing, within 30 days of the public hearing date. b) To prepay the special assessment and the special assessment certification charge after 30 days of the public hearing date, but before the county certification deadline, with interest at the rate set in the adopted rate schedule, accrued beginning on the 31st day following the public hearing date through the date of payment. C) To pay the special assessment as billed to them by Hennepin County on their property tax statement with an assessment term of one year. 7) After the 31 st day following the public hearing, the certified roll, minus any prepayments, shall be delivered to Hennepin County. • q -7,9L9 . WATER SHUT OFFS The City reserves the right to shut off water service to properties in situations where special assessment isn't practical or possible. Brooklyn Center Ordinance 4-202 provides that water service may upon reasonable notice be discontinued for nonpayment of individual accounts. The following is the procedure to be followed when public utility accounts are in arrears, or when a closing bill is more than 30 days overdue. 1) A "Final Notice" letter is sent to each delinquent account unpaid 56 days after the date of billing. This notice informs customers that they have 11 days to select one of the following three options for handling their account. a. Deliver payment in full to the City. Sign and return a payment agreement to the City. A minimum acceptable agreement includes a partial payment of at least 1/4 the total amount due paid within 14 days, and full payment within 30 days of the date of the final notice. If that payment agreement is not met, the property will be red tagged. C. Provide a written letter to the City requesting an administrative hearing before the City Council at their next regularly scheduled meeting. At this meeting, the customer must show cause as to why the City Council should remove their name and account from the list of accounts for which service is to be discontinued. The City Council may either sustain the requirement for payment, modify the required terms of payment, or order staff to take such • actions as it deems are necessary. If no written request is received, it is assumed the customer waives the right to a hearing. 2) On the 70th day, a "red tag" is delivered to properties where the account remains unpaid, a payment agreement has not been made or isn't being adhered to, and where no request for a hearing has been made. This notice informs customers that payment is due within five days or water will be immediately shutoff. 3) Once service has been shut off for non-payment, the entire balance due and a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee for restoration during normal business hours and a higher fee for restoration when workers must be called back on overtime. 4) Cold Weather Rule: The City of Brooklyn Center will not shut off water service between October 15 and April 15 if the shut off would affect the primary heat source of a customer. Customers must contact the utility billing staff and explain how the cold weather rule applies to them. r� U qy-g19 • SUMMARY OF POLICY CHANGES POLICY FOR PUBLIC UTILITY ACCOUNT COLLECTIONS The existing Administrative Policy & Procedure for Water Shut Offs was adopted by the City Council in January 1993. The changes from that policy to the proposed Policy for Public Utility Account Collections is show in the attached document with new language in italics, unchanged language in regular type, and deleted language stricken. Most of the changes have been documented in written material or discussed when this proposal was brought up at previous City Council meetings. However, there are a few items which are worth noting here. 1. On the first page, under Normal Billing and Collection, 1) meter readings. "Customers who fail to submit a meter reading card for four quarters will be required to submit a meter reading, or face the shut off of water service. " This provision was approved by the City Council on November 9, 1992 as part of the 1993 rate study. Incorporating it into this policy provides more complete documentation. 2. On the second page, under Delinquent accounts, specific dollar threshold for pending accounts to special assessments has been removed to allow us to experiment and find the most efficient threshold to use. • 3. On the second page, under Delinquent accounts, two passages calling for the shut off of water service are deleted. 4. On. the last page a cold weather rule is added. This is a simplified version of the cold weather rule used by Minnegasco and NSP. They also have a variety of restrictions including requiring the account to have been paid up on October 15 and limiting the use of the rule to low income customers. .7 r • May 8, 1997 POLICY FOR PUBLIC UTILITY ACCOUNT COLLECTIONS PURPOSE The purpose of this policy is to provide an orderly and reasonable method for the collection of accounts of the various utilities operated by the City of Brooklyn Center and any which may be added in the future. This policy is intended to follow with the provisions of Minnesota State Law, Brooklyn Center City Charter and City Ordinance. Utilities currently operated by the City of Brooklyn Center and the corresponding ordinances are as follows: Water and Sanitary Sewer, Chapter 4; Recycling, Chapter 7; and Storm Drainage, Chapter 16. POLICY In keeping with Minnesota State Law, all municipal utility services shall be considered to be services to the property, not to the person. All residential utility services shall be billed to the owner of the property, not to the tenant. Commercial or industrial properties may be billed to either the owner or tenant. Utility services shall be billed to the appropriate party by the Finance Department according to the rate schedule adopted annually by resolution by the City Council. Utility accounts shall become due immediately • following billing and must be paid by the due date printed on the bill. Special assessment against the benefited property of any delinquent unpaid accounts shall be considered as the primary means of collection. Shutting off of water service to the benefitedproperty shall be an alternate means of collection in any situation where special assessment isn't possible or practical and for situations where the customer has failed to provide a water meter reading for more than four quarters. Any city utility service for which a rate schedule is established by resolution is eligible for collection by means of either special assessment or water shut off. PROCEDURE NORIVAL BILLING AND COLLECTION 1) A meter card is mailed to each residential property 28 days prior to the billing date. Readings must be submitted to the Finance Department by the date printed on the meter card. Penalties for failure to submit a meter reading will be charged on the date of billing as defined by the rate schedule. Customers who fail to submit a meter reading card for four quarters, will be required to submit a meter reading, or face the shut off of water service. 2) A public utility bill is due 28 days from the date of billing. 3) The late payment penalty as defined in the rate schedule shall be applied five working days after the due date. 04) A delinquent billing is generated for each account unpaid after 35 days from the date of billing. Customers have 21 days to pay this delinquent bill. q -7-s& • DELINQUENT ACCOUNTS All del inquent Delinquent accounts in -tees of $ "" shall be pended as a special assessment. y�.a__-__'_��ws:w�:aTi��i:tea:�:�:�:�a��ii�ad��'�:�i�: •��:��:nis L= Rental Property (Commercial or Industrial) If delinquency not incurred by current tenant a) Obtain a meter reading and date of change of occupancy, and calculate final bill for previous tenant b) If a forwarding address is available for the previous tenant, send a final bill. Send an informational copy to the property owner. C) If no address is available, notify property owner of delinquent final bill d) If not paid in 28 days, the unpaid amount shall be certified as a special assessment If delinquency incurred by current tenant, 4 b) --- Send7infortnational eepy- of bill to prepefty- owner • follow normal procedures for delinquent bills and certification by special assessment to the property tax. FINAL BILLS All final bills unpaid after 28 days shall be pended as a special assessment Rental Property (Commercial or Industrial) a) All final bills unpaid after 28 days shall be billed to the property owner, due in 28 days after the date of the billing b) If not paid in 28 days, the unpaid amount shall be certified as a special assessment Other Property a) After 28 days unpaid, the bill shall be pended as a special assessment, and a letter of explanation sent to the new property owner. b) Two more attempts 28 days apart shall be made to collect from the previous property owner. • If unpaid, the bill shall be certified as a special assessment. MW • RETURNED CHECKS Checks which are returned to the City for non -sufficient funds, account closed, or other wise not honored by the bank shall be charged the maximum service fee allowed by Minnesota Statutes. SPECIAL ASSESSMENTS For accounts that remain uncollected after performance of the normal billing and collection procedure, special assessment against the property shall be considered as a primary means of collection. 1) The annual City Council resolution adopting the utility rate schedule shall establish the number of assessment cycles per year and a schedule for public hearings to be held at City Council meetings for the purpose of adopting a certification roll of delinquent utility accounts for special assessment. At least one certification cycle will be timed each year to coincide with Hennepin County's requirements for certification to the following year's taxes. Additional certification cycles may be set in the annual resolution. 2) A certification cut-off date shall be established at which time all accounts which have been billed a delinquent bill and the account is unpaid as of the due date on the delinquent bill, shall have the balance on the account included in the preliminary special assessment certification roll. • 3) A notice ofpublic hearing will be published in the city's official newspaper at least two weeks prior to the public hearing. A notice of the public hearing and a copy of the proposed special assessment roll will be sent by first class mail to each affected property owner at least two weeks prior to the public hearing. 4) The owner of the property shall have the option of paying the balance due on the account until the date the notice of public hearing is mailed. After the date the notice of public hearing is mailed, payments will still be accepted, but will include the certification charge. 5) The public hearing will be held at a City Council meeting at which the property owners shall have the opportunity to object to the special assessment. 6) After the public hearing, for each special assessment sustained by the City Council, the property owner shall have the options of a) To prepay the special assessment and the special assessment certification charge listed on the preliminary roll, but without additional interest after the public hearing, within 30 days of the public hearing date. b) To prepay the special assessment and the special assessment certification charge after 30 days of the public hearing date, but before the county certification deadline, with interest at the rate set in the adopted rate schedule, accrued beginning on the 31st day following the public hearing date through the date ofpayment. • c) To pay the special assessment as billed to them by Hennepin County on their property tax statement with an assessment term of one year. • 7) After the 31st day following the public hearing, the certified roll, minus any prepayments, shall be delivered to Hennepin County. WATER SHUT OFFS The City reserves the right to shut off water service to properties in situations where special assessment isn't practical or possible. Brooklyn Center Ordinance 4-202 provides that water service may upon reasonable notice be discontinued for nonpayment of individual accounts. The following is the procedure to be followed when public utility accounts are in arrears, or when a closing bill is.more than 30 days overdue. 1) A "bItte node "Final Notice " letter is sent to each delinquent account unpaid 56 days after the date of billing. This-nekee nfvnis easteme sthat they h&ve-1A 's -to make payment. It _1__ i_c__m writingettstatners that they have it rigbt to demand a hearing at hhe next regularly seheduled Gouneil meeting teshow eause as to why theit �.ttter should not be 9hut off-. The demand must be mttde in to the Gity, Glerk within 19 days. if no written demand is reeeived by the Manday prior to the Gai meeting(lidays am the date of the b hie netiee), then it is assumed the eustemer wai-ves the right }� This notice informs customers that they have 11 days to select one of the following three options for handling their account. a. Deliver payment in full to the City. b. • . Sign and return a payment agreement to the City. A minimum acceptable agreement includes a partial payment of at least 1/4 the total amount due paid within 14 days, and full payment within 30 days of the date of the tette final notice. If that payment agreement is not met, the property will be red tagged. C. Re Gity Gatmeil may at mt administrative hearing at a reguiarly sehedttled meeting, eons the sh , 11 - Y, and order staff to take suelt ftetions as it deems are rteeessary- Provide a written letter to the City requesting an administrative hearing before the City Council at their next regularly scheduled meeting. At this meeting, the customer must show cause as to why the City Council should remove their name and account from the list of accounts for which service is to be discontinued. The City Council may either sustain the requirement for payment, modify the required terms of payment, or order staff to take such actions as it deems are necessary. If no written request is received, it is assumed the customer waives the right to a hearing. 2) On the 70th day, a "red tag" is delivered to properties where the account remains unpaid, a payment agreement has not been made or isn't being adhered to, and where no demand request for a hearing has been made. This notice informs customers that payment is due within five days or water will be immediately shutoff. 3) Once service has been shut off for non-payment, the entire balance due and a restoration of service fee must be paid prior to service being turned on. The restoration of service fees will be established in the adopted rate schedule and will include a fee for restoration during normal business hours and • a higher fee for restoration when workers must be called back on overtime. . 1) Cold Weather Rule: The City of Brooklyn Center will not shut off water service between October 15 and April 15 if the shut off would affect the primary heat source of a customer. Customers must contact the utility billing staff and explain how the cold weather rule applies to them. 0