HomeMy WebLinkAbout2016.08.15 CC PowerPont Rental Property Utility BillingUtility Billing for Residential
Rental Units
City Council Meeting
August 15, 2016
Introduction
• Current Utility Billing Procedure
• Consequences of Current Billing Procedure for Rental
Properties
• Ordinance serves as possible solution
CITY OF
EST. 1906
Current Utility Billing Procedure
• However requested, the utility bill is sent to either
tenant or landlord of a rental property
• Done for the convenience of the landlord
• Landlord remains ultimately responsible
• Unpaid bills are assessed to taxes
CITY OF
EST. 1906
Consequences of Current Utility Billing
Procedure
• When tenants change:
• Updates to billing records
• Required extra meter reads
• May occur frequently as tenants change
• May have three different entities billed in one quarter
• When the property sells:
• Each party must pay their pro -rata share
• Common cause for confusion or delays at closing
• Additional meter reads required
CITY
EST. 1906
Purpose of an Ordinance Update
• Reduce administrative cost;
• Reduce staff time spent; and
• Create a consistent, easy to follow policy in
anticipation of a growing city.
CITY OF
EST. 1906
Current Ordinance
• Sec. 82-68. - Billing and payment.
"The utility billing clerk or other duly authorized representative of the
city shall prepare quarterly statements of the amount due under the
terms of this chapter from each customer, and shall mail or deliver same
to the respective customer. Payment of all charges for water and water
service supplied by the city shall be theprimary responsibility of the
owner of the premises. Water bills shall be due and payable by the tenth
day of the month following billing. Water bills not paid by the 30th day
of the month following billing shall be considered delinquent and an
account carrying a 30 -day delinquency may be shut off by the city for
nonpayment. Service shall not be resumed until regulations of section
82-31 shall have been satisfied."
Other City's Approach and Process
• City of Woodbury
• Bills directly to owner of the property/landlord;
• To begin their transition after ordinance approval, the utility clerk
sent letters to landlords and tenants at the end of one quarter and
allowed the entire next quarter to sort accounts out;
• Sends courtesy copy to tenants; and
• Ordinance has been implemented for approximately 5 years
without any major challenges and has been an easier process.
CITY
EST. 1906
Recommendations
• The Finance Department and other city staff recommend:
• Council direct staff to draft changes to § 82-68;
• Water bills to be sent only to the property owner and not the tenant; and
• Other clean-up language.
• Schedule a public hearing for future council meeting;
• Invite landlords.
CITY
EST. 1906
Questions?