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HomeMy WebLinkAbout04-08-19 City Commission Packet Materials - A1. Res 5037, Revising the Fee Schedule for Services by Water Operations Division Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Commission Resolution No. 5037 – Increasing water fees MEETING DATE: April 8, 2019 AGENDA ITEM: Consent RECOMMENDATION: Approve Resolution No. 5037- Approve resolution increasing water fees BACKGROUND: This resolution is to aid in recapturing service costs by raising fees and to change certain paying behaviors by raising fees that pertain to untimely bill payments. Non-Emergency water shut-off and reconnection To shut off water services or to turn them back on, based on Cityworks data, costs an average of $57.50 (this does not include the utility billing clerks taking the call and putting in the work order). Currently, there is no charge to have a water service turned off by request and then turned back on. For maintenance and emergency purposes, we want to keep this service free. For the service for customers requesting these services for non-emergency purposes (irrigation, remodels and leaving town for long periods of time) for a period time we are recommending a charge of $50 for the turn off and $50 for the reconnect. Hang tags and reconnection: The City uses hang-tags to help notify residents that they are behind in their payments. This is helpful because water accounts are under the name of the home’s owner so this gives notice to any renters regarding their water. The process for out billing and hangtags are below: 1. March 25th: Billing generated 205 2. April 15th: Bills Due 3. April 17th: Delinquent notices sent to customers who are at least 45 days delinquent giving them an extended due date of April 24th (for bills that were due the prior month- March 15th) 4. April 25th: Hangtags are hung on all accounts 45 days plus delinquent and not paid by April 24—hangtags state they have till April 29th to pay before shut off. (City ordinance requires 10 days between delinquent notices and shut off date, this can be a little more due to weekends, holidays and we do not like to shut off or hang on a Friday.) Hangtags add a $25 fee to the customer’s account. 5. April 30th: Shut off Day Note: • We regularly make payment arrangements with customers who request additional time. • We generally have too many delinquent accounts to hang all accounts that meet the criteria and have not paid, so then we utilize a dollar amount cap (last month we hung accounts that had an outstanding balance of $125 and above. In the summer this cap can be $150 or $175) • Customers who then become 3 months past due are flagged the following month and are hung regardless of the dollar amount outstanding. The process of hangtags is about the same as water shut off with Finance time and for Water Operations to deliver the tags. We have also noticed accounts waiting until they have a hangtag every month. We are recommending the hangtag fee be increased from $25 to $50 for the first hangtag in a calendar year and to $100 for the second hangtag and following hangtags within a calendar year. This will help recapture costs to create and hang the tags, and to encourage timely payments. The last step in our process when an account is delinquent and we have received no response after the hangtag is delivered is to shut the water off. Currently, we charge $25 for reconnection after water service has been shut off. We are recommending $100 to re-coop costs of the initial shut-off and the reconnection (as above the average is $57.50 with shut off and reconnection taking two trips). Please see the notes above that we do work with customers who have financial constraints and need additional time. 206 Comparators: City Non-Emergency shut off and reconnect Hang tags and reconnection City of Missoula No fee for shut off and if its less than 8 months to reconnect fee of $22.30 is charged Late accounts get a 10 day notice of shut-off based on a combination of ways due to flat rate and metered customers but typically if bill is past due is over $100-$150 or three months past due. The week of shut off hang tags are delivered on Tuesday and water shut off is done on Wednesday. Reconnection fee of $92.33 is charged. City of Kalispell If reconnected within six months of shut off $30 reconnection fee during working hours and $95 after hours. Unless for maintenance or emergency. Month to pay previous bill and first Thursday the following month after due date (about 15days so 45 day delinquent) delinquents get a hangtag and a fee of $20 and have to pay by the following Tuesday by 10am. $30 reconnect during working hours and $95 after hours. City of Great Falls Reconnection $75 Mail a 60-day notice at 3 months behind and then 90-day notice at 4 months. Tags are hung the same day as the 90-day notice and customers given 3 days from tag date to pay before shut-off. $75 reconnection fee. After hours reconnection $100 and $200 for reoccurrence for non-pay City of Billings No charges Two statements behind a letter is sent. The following week customer is called Monday and shut off Wednesday. For reconnection $80 delinquency fee. City of Helena $50 to turn off and $25 for reconnect (anything non- emergency) Notice at 60 days overdue and have around 10 days to pay. After the 10 days they get a hangtag (no hangtag fee) then shut off 48-72 depending on the days (no Friday shut off). If shutoff $125 to reconnect. ALTERNATIVES: As determined by the Commission. FISCAL EFFECTS: This should increase slightly fee revenue in the water fund. 207 Attachment: Resolution No. 5037 Report compiled on March 28, 2019 208 Page 1 of 2 RESOLUTION NO. 5037 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, REVISING THE FEE SCHEDULE FOR MISCELLANEOUS SERVICES PROVIDED TO THE PUBLIC BY THE CITY’S WATER OPERATIONS DIVISION, AS ALLOWED BY SECTION 7-7-4404, MONTANA CODE ANNOTATED (MCA), AND SECTION 13.12.070, BOZEMAN MUNICIPAL CODE. WHEREAS, the City of Bozeman furnishes certain water services; and WHEREAS, the City of Bozeman is authorized to collect fees for services provided based on the provisions of Section 7-7-4404, MCA; and WHEREAS, Section 13.12.070, Bozeman Municipal Code, authorizes charges for water services; and NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: Section 1 The fee schedule for services provided by City of Bozeman: Non-emergency water shut off $50 Non-emergency water reconnection $50 Hangtag fee first in calendar year received $50 Second hangtag received within the calendar year $100 Water reconnection fee after delinquent shut off $100 209 Page 2 of 2 Section 2 This fee schedule shall be in full force and effect on June 1, 2019. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 8th day of April 2019; and effective beginning with that billing period, which will first appear on the June 2019 water billing. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 210