MSUA staff to notify Saint James Court tenants, possible shutoff after six-figure unpaid utility balance

The MSUA Board of Trustees on Thursday heard from utility billing staff about a six-figure unpaid account tied to Saint James Court and was told staff will post 30-day notices to tenants and may shut off utilities if the owner does not bring the balance current.

The trust manager told the board the authority had planned a meeting with the property owner that day but the owner did not attend, and staff decided to notify tenants that power could be shut off in 30 days unless the account is paid. "We made the decision that we were gonna notify all the tenants that, we're gonna shut off their power in 30 days if they do not pay," the trust manager said. Utility billing staff reported a certified letter sent in August was returned as refused.

The issue dates back at least to 2023, staff said, and arose in part because the building's rooftop chiller has been evaporating water at a high rate in heat and humidity, increasing usage and bills. Staff said the owner has been allowed a partial monthly payment arrangement in the past, sometimes around $14,000 a month, and that the account had grown despite those payments. A specific total was described in the meeting as "six figures." Board members and staff said they do not have a verified tenant count; one speaker said they thought it might be about 50 to 59 tenants but added that number was not certain.

Legal counsel told the board that if any informal policy has allowed extended partial payments on commercial accounts, that practice should change. "As your legal counsel, I'm advising you that you need to change that," counsel said, adding the board has a duty to safeguard public money.

Staff outlined next steps: continue outreach to the owner and property manager, post certified notice to tenants' doors and pursue administrative remedies against the owner, including a lien and lien foreclosure process if necessary. A staff member said the authority plans to offer a payment-plan option in writing (terms to be emailed to the board) and, if the owner does not accept, proceed with shutoff and lien actions. Staff described the possibility of filing a lien foreclosure and said the board would be informed of any formal agreements.

Board members voiced frustration that the account had been allowed to grow for years and expressed concern for tenants who include people who rely on life-support equipment; staff said required notice procedures are meant to allow tenants to make other arrangements. Multiple board members said the situation appears to be a long-running practice under prior administrations and pledged to tighten procedures going forward.

Staff also told trustees they are drafting a formal utility billing policy and intend to bring it to the board for approval. "There's not the policy that they've been working off of — it's a red line version. So we are working on creating a utility billing policy, and my idea is that the council should approve that policy because you were responsible for their money," a staff member said.

Votes at a glance

- Motion to approve listed purchase orders and claims, including an Arthur Gallagher insurance invoice of about $26,000 for airport coverage and construction-administration billing items for the airport project: motion seconded and approved by trustees Eastep, Doval, Joe, Barnes and Parker (votes recorded aloud as "aye").

- Motion to approve minutes from the Aug. 19 and Aug. 26, 2025 regular meetings: motion seconded and approved (individual aye votes recorded; one abstention noted in roll call). The transcript does not specify which trustee abstained.

- Motion to declare MSUA fleet and equipment listed in the packet as surplus and authorize sale by auction, scrap or destruction and to give signing authority to the trust manager or designee: motion seconded and approved. Staff said the surplus auction date is Sept. 27.

The board did not take a formal recorded vote to authorize the tenant notices or shutoff; staff described those as an operational decision made after unsuccessful attempts to reach the owner and the return of certified mail.

Ending

Trustees asked staff to continue outreach and to circulate written proposals for any payment-plan terms or lien filing. Staff said they expect to present a utility billing policy for formal board approval in a future meeting and will notify the board when they send formal notices to the Saint James Court property. Several trustees cautioned staff to follow legal notice requirements to protect tenants with medical needs while pursuing collection from the property owner.