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Montrose council formalizes utility shutoff rules, limits digital payments after returned transactions
Summary
The City of Montrose council approved a set of utility- and billing-related policy updates — formalizing shutoff procedures, barring digital payments after three returned transactions and aligning owner-vs.-renter account rules — after discussion about renter notices and state winter protections; votes were unanimous (4-0).
At a regular City of Montrose council meeting, members approved a set of updates to utility and billing policies intended to standardize procedures for shutoffs, digital-payment eligibility and owner-vs.-renter account handling.
Staff told the council they consolidated prior bullet-point guidance into written policy. “The policy previously was just a list of bullet points. It really wasn't a policy. So we just kind of put it into words,” a staff member said during the discussion.
The public shutoff policy now states that customers who alter or obstruct access to shutoff equipment remain responsible for related fees. Councilors asked whether the city’s approach complies with state winter protections for water service; staff said the city’s meters permit a small drip that preserves minimal water for boiling or cooking and that the city believes it is compliant with state limitations on winter shutoffs.
The council also approved a suspension-of-digital-payments policy. As staff explained: “If ... you have three or more returned payments, we shut off your opportunity to pay digitally, and then you have to come in and pay with a check, or you have to do it with cash.” Staff later clarified that a cashier’s check or cash would be accepted after suspension — not a personal check — and noted that each returned payment carries a $30 fee and that processing reimbursements can cost more in staff time than the reimbursement amounts.
Council members repeatedly raised concerns about renters who learn about shutoffs only when water is already off. Staff said they have improved direct communication with account holders and landlords, and that in cases where renters call, staff will accept payment and let renters pursue reimbursement from landlords if lease terms allow. Staff described that the city sends reminders to accounts and is working with property contacts to reduce surprise shutoffs.
Councilors voted unanimously to approve the three policies (public shutoff; suspension of online and digital payment privileges; and the water utility account owners-vs.-renters policy).
The policies will take effect under the city's standard implementation process and staff said they will follow up with clarifying language and fees in later administrative updates.
