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Sturgis revises shutoff rules to align with state law, allowing winter disconnections; hospital arrears draw debate
Summary
Commission approved revisions to general shutoff rules to opt into state opt‑in provisions that allow winter disconnections for nonpayment beginning Oct. 1; debate centered on fairness and a large hospital arrearage the city is negotiating.
The Sturgis City Commission approved revisions to its general shutoff rules to align with recent state law changes that allow the city to opt into the state program and, in some circumstances, disconnect service during the heating season for nonpayment.
Chris McArthur (electric department staff) explained the change as an opt‑in to the state program created by recent legislation and said the change takes effect Oct. 1. “We can shut off in the wintertime during heating season for nonpayment,” McArthur said, describing how the city would collect a $1.25 per‑meter fee to contribute to the statewide assistance program.
Commission discussion focused heavily on equity and enforcement. Several commissioners said they were uncomfortable with a policy that would allow shutoffs while large institutional accounts remain in arrears. Staff reported recent payments from the hospital and told commissioners the remaining outstanding balance (liens and arrears) is approximately $800,000 after recent partial payments; staff said they have continued to work with the hospital and can pursue liens, collections or, at the commission’s direction, shutoff for nonpayment of municipal electric.
City staff emphasized that participation in the state program relieves the city of running its own assistance program but does not eliminate staff responsibility to triage vulnerable customers; staff said the program includes outreach and that 211 and other resources would be referenced in disconnect notices.
A commissioner moved to approve the updated shutoff rules as presented; the motion passed by voice vote. Commissioners asked staff to return with specific options should the commission want to treat large institutional debtors differently or to pursue enforcement options distinct from residential processes.
Next steps: staff will implement the rule changes, prepare disconnect notices consistent with the new rules and bring any requested hospital enforcement options back to the commission for direction.
