2016.10.03 CC Packet - Laserfiche WebLink

Home

TO: Honorable Mayor and Members of the City Council FROM: Anna Wobse, Accounting Clerk DATE: For the City Council Meeting of October 3, 2016 RE: Utility Billing for Residential Rental Properties MEMORANDUM BACKGROUND At the August 15, 2016 City Council meeting, the Council was presented with a proposed ordinance change to the utility billing and payment procedure for residential rental properties in the City of Hugo. At that meeting a public hearing was scheduled for October 3, 2016 to take public comments on the proposed change. CURRENT BILLING PROCEDURE The City of Hugo currently allows residential renters to place their name(s) on the utility account and this practice is becoming problematic. One property can have numerous tenants during a billing quarter, which is challenging to track and requires extra meter reads. The City has also become the middleman between tenant and landlord payment disagreements. The current billing procedure causes difficulties when the property is sold and can lead to delays at the time of closing. PROPOSED ORDINANCE CHANGE The proposed ordinance change would mandate that all residential water and sewer accounts be billed only in the name of the owner of the property served. The amendment would eliminate the current problems that are encountered and streamline the billing process. The proposed ordinance would read: "Section 82-68 BILLING AND PAYMENT... Payment of all charges for water and sewer service supplied by the city shall be the responsibility of the owner of the property. The owner of the property shall be liable for water and sewer charges incurred by the premises and any unpaid charges shall be collected per section 82-70. All residential water and sewer accounts shall be billed only in the name of the owner of the property served..." REQUESTED COUNCIL ACTION At the conclusion of the public hearing, Council is asked to consider the amendment to Hugo City Code, Chapter 82 UTILITIES, Section 82-68 BILLING AND PAYMENT with proposed implementation for first quarter 2017 utility bills.