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Commission reviews utility-collection process and tenant-vs-owner liability; agrees to resume lien filings
Summary
Staff outlined the city's utility collection process, including disconnection, week-by-week follow-up, meter locking/removal and the circumstances that trigger liens. Commissioners agreed to resume routine filing of utility liens after clarifying tenant/owner procedures and protections.
City staff presented the utility-billing and collection process and asked whether the commission wanted the city to resume filing liens on properties for unpaid utility bills; the commission agreed to restart filings after discussion.
Staff said the city must comply with utility revenue bond covenants that require collection of charges and that, historically, the city filed liens on properties for unpaid utility bills. Because staff had been directed to pause lien filings while the commission reviewed the process, staff sought direction on resuming the practice. Staff provided a cradle-to-grave overview of collection steps: courtesy calls before disconnection, disconnection if unpaid after the eighth day past due and reconnection policies (same-day reconnection by 5 p.m. after payment, with an $85 after-hours fee if needed). Staff described separate sequences for tenant and owner accounts after a cut-off, including verification of occupancy, communications with landlords, flipping accounts back to the owner if tenants do not pay, sending notification letters, and involving code enforcement when a dwelling remains occupied without water.
Staff emphasized that tenant debts remain with the tenant; the city changes the active account to the owner's name to assure continued water availability and then pursues collection actions against the responsible party. The presentation outlined that for owner accounts that remain unpaid and exceed approximately $2,100, staff would prepare a resolution to bring the account to commission for approval to place a lien on the property.
Commissioners asked whether meters are removed and under what conditions; staff said meters are removed only for owner accounts at the point of liening, not for tenant accounts, and that meter removal stops charges. Commissioners expressed concern about requiring owners to chase tenants to recover connection fees or unpaid balances and asked staff to pursue collection against tenants where feasible. Several commissioners favored resuming lien filings after clarifying the process and communications to property owners.
After discussion staff was directed to resume processing liens that meet the established criteria and to continue offering payment plans, customer outreach, and protections such as not disconnecting when the customer-service office is closed or immediately before holidays.
