Kalamazoo staff propose policy to keep water on in commercial and multifamily shutoffs, recover costs via tax lien
Loading...
Summary
City staff presented a departmental public-health waiver to avoid shutting off water at commercial, institutional and multifamily accounts when occupants would face health risks; policy would preserve service for residents while placing arrears on tax rolls. Committee offered consensus support; no formal city-commission action was requested at this
Kalamazoo City public services staff on Nov. 13 presented a draft departmental policy designed to prevent water shutoffs at commercial, institutional and multifamily accounts when doing so would endanger occupant health, while still providing a pathway to recover unpaid bills.
The policy, presented by Public Services Director James, targets accounts where the named account holder (for example, an apartment owner or commercial landlord) is responsible for payment and occupants have no direct ability to seek affordability assistance. "What this policy does is it utilizes the tax lien process within the ordinance," James said, describing a process that would roll arrears to property taxes while preserving water service for people living at the affected address.
Why it matters: staff said the gap has arisen when tenants who pay rent lose access to water because a landlord or commercial owner fails to pay the utility account that covers multiple residents. Turning water back on, James said, has previously required coordination with the county health department and EGLE (the state environment agency) to protect public health.
City attorneys reviewed the draft and, according to staff, concluded the approach is legally enforceable under the city’s water ordinance (referred to in the packet as Chapter 38). James said the policy would be exercised through departmental procedures rather than as a new ordinance and sought the committee’s concurrence and feedback rather than a formal recommendation to the City Commission.
Committee response and next steps: Members asked how often the situation occurs; James said he had observed one such case this summer and described the policy as written from that experience. Committee members asked about bankruptcy risk and lien priority; staff said liens are likely low‑priority in bankruptcy and the city ultimately may bear some loss in rare cases but that risk was acceptable compared with immediate public-health harms.
The committee offered consensus support and requested staff finalize language and implementation details. Because this is a departmental policy, staff said it will not be sent as a City Commission ordinance item; rather, the department will implement it and refine internal processes, including coordination with the health department and tax office.
