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HomeMy WebLinkAbout169 - 11/04/1986 - REPEALING MISCELLANEOUS PROVISIONS OF THE CITY CODE PERTAINING TO BILLING AND COLLECTION OF UTILITY ORDINANCE NO. 169, 1986 OF THE COUNCIL OF THE CITY OF FORT COLLINS REPEALING MISCELLANEOUS PROVISIONS OF THE CODE OF THE CITY PERTAINING TO BILLING AND COLLECTION OF UTILITY SERVICES CHARGES AND REENACTING A CONSOLIDATED UTILITIES BILLING ARTICLE WHEREAS, the billing and collection of utilities fees and charges is administrated by the Department of Finance and not directly by the departments in charge of the various utilities; and WHEREAS, there are inconsistencies between the billing provisions of the code of the city for the different utilities even though the fees and charges are billed together at one time in one bill ; and WHEREAS, it is necessary and desirable to standardize and clarify the lien procedure for delinquent utility fees and charges so as to establish the city's priority as a lien creditor. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS: Section 1 . That the following article shall be enacted and added to the code of the city establishing uniform provisions for utilities billing. UTILITIES BILLING. § Definitions. For purposes of this article, the following words and phrases have the following meanings unless the context clearly indicates otherwise: City: the City of Fort Collins. Director of Finance: the head of the Department of Finance or the designated representative of such director. Revenue Division: the division of the Department of Finance responsible for billing and collection of charges due the city. Owner: for purposes of this article, the term includes legal representatives, assigns and successors in interest as well as the actual or original owner of record of the property served by a city utility. Utility bill : the consolidated bill issued monthly by the Department of Finance which separately itemizes the charges for each utility service provided to a customer by the city. § Utility bill authorized; procedures. A. The fees and charges established by this Code for services from the electric, stormwater, streets, water and wastewater utilities may be billed together in one utility bill with such fees and charges separately itemized, and shall be billed to utility users not less than once each month. The Revenue Division of the Department of Finance shall collect, receive and disburse all such fees and charges for the separate utilities funds in accordance with Article V of the Charter and related provisions of this Code. B. All utility services are presumed to be furnished and supplied to the real property served without regard to the actual user or person billed for the services. Therefore, all utilities fees and charges are chargeable against and payable by the owner of such real property, as well as the person contracting for the utility service. C. The minimum charges for flat rate and metered utility users will be prorated on the basis of actual number of days served when service is instituted or terminated on other than the beginning or ending day of the billing period. § Due date; delinquency. A. All fees and charges for the use of utility services are due and payable in full as of the due date specified on the utility bill and become delinquent after that date . Acceptance of partial payment will not be deemed a waiver of the city's right to collect any remaining balance or to exercise any of its authorized remedies for non-payment. B. Billing for utilities fees and charges and any other notices related to utilities billing are effective on the date that they are deposited in the mail addressed to the last known address of the user as shown on the records of the Department of Finance. C. In case the user of any utility fails to pay a utility bill by the due date or fails to pay any other utility fee, charge, deposit or assessment prescribed by this code, the City may disconnect either or both of the user's water and electric services to the property and has the right to enter upon private property to accomplish this purpose. D. Before discontinuing a utility service for nonpayment of any utility use charge, fee, deposit or assessment prescribed by this code, the city shall give written notice to the user of the delinquency and the intent to terminate service, unless notice has been waived in writing by prior agreement concerning payment of the delinquent amounts. If the user files a written request with the Revenue Division prior to the termination date set forth in the notice, the Director of Finance shall schedule a protest hearing before a City hearing officer on any disputed matter relative to the proposed discontinuance of utility service. The user may appeal an -2- unfavorable decision to the Director of Finance whose decision is final . E. The terminated utility service will not be turned on again until all delinquent fees and charges, plus interest and collection costs, together with the expenses of discontinuing and restoring service, including costs of labor and materials and specified fees, are paid in full . § ILOT. A five (5) percent contribution to the General Fund by the city's utilities pursuant to Article IX of the Charter in lieu of taxes and franchise fees that would be paid by a private utility, may be passed on to the user. § Deposits. The city may at any time require any utility customer to pay a service deposit if the customer has received one or more final turn-off notices for delinquency or if the customer is unable to provide proof of satisfactory credit history. The amount of the deposit shall be two (2) times the estimated monthly bill for the utility services to be furnished the customer. § Budget billing. If any metered single family residential user meeting the criteria of the budget billing program so requests, the Department of Finance may estimate the average monthly water or electricity charges of that customer based upon his or her historic use of water or electric service, and bill the customer such average charge(s) each month in addition to fees and charges for any other utility service received. In such cases, the average charges will be billed for eleven consecutive billing periods and the bill will be adjusted in the twelfth billing period by charging for any water or electricity used but not paid for through the averaged bills or by applying a credit to the customer's account for overpayments. The monthly budget billing amount will be adjusted as necessary for changes in the base electrical rate for electric utility charges or for changes in the metered water rates for water utility charges. § Rebates. Eligible low-income elderly and disabled residents of the city may obtain a rebate on account of their utility bills as provided in Chapter 113 of this code. § Unpaid charges a lien. A. Any charges imposed by this chapter for utility services, together with interest and the collection costs, if not paid by the due date specified on the utility bill constitute a -3- perpetual lien on the property to which service was delivered. The attachment of such lien is not dependent on the recording of written notice, and the lien is prior and superior to all other liens, claims, titles, and encumbrances, whether or not prior in time, except liens for general taxes. The lien remains attached to the property from the date the fees and charges became due until the delinquent fees and charges, 'together with interest and costs of collection, if any, are paid. B. When the tenant in possession of the property served, or any third person, pays the utility bill , it relieves the landowner from the obligations and lien imposed by this article, but the city is not required to seek payment of utility bills from any person other than the owner. No change of ownership, occupation or possession affects the application of this section, and the failure of any owner to discover that he or she purchased property against which a lien for utility services exists in no way affects such owner's liability for payment in full . C. The city may enforce the lien by a suit for foreclosure and sale of the property subject to the lien. The proceeds of the sale shall be applied to the unpaid fees and charges and allowable costs in the manner provided for foreclosure of statutory liens . The lien may also be enforced by certification of assessment upon the property to the County Treasurer for collection by the county in the same manner as delinquent general taxes and special assessments upon such property are collected or by any other means provided by law. D. Delinquent utility fees and charges, together with interest and collection costs, may also be collected by civil suit against the owner of the property served at any time after the charges become delinquent. The remedies provided under this article are cumulative and supplemental to each other. § Discontinuance of service at user's request. All orders for termination of water, wastewater or electric service shall be made to the Department of Finance at least three (3) days prior to the desired discontinuance date. The user will be liable in any event for utility services consumed until the final meter reading is obtained. The termination notice given by the user does not relieve the user in any way from any minimum charges or payments guaranteed under a service contract. § . Administrative procedures. The Director of Finance may formulate and promulgate rules and regulations for the administration of this article with respect to the billing and collection of utility fees and charges, including without limitation, the establishing of forms and procedures for notice, -4- conduct of appeals, and documentation of liens, not inconsistent with the provisions of this article. Section 2. That all ordinances and parts of ordinances in conflict with this ordinance and, particularly, §§ 112-30, 112-53, 112-54, 112-55 C, 112-57, 112-58, 112-59, 112-60, 112-69 E, F & G, and 112-124 of the Code of the City of Fort Collins, as amended, are hereby repealed. Introduced, considered favorably on first reading, and ordered published in summary form this 21st day of October A.D. 1986, and to be presented for final passage on the 4th day of November, A.D. 1986. Mayor ATTEST: 2 City Clerk 1986. Passed and adopted on final reading this 4th day of November, A.D. 01 Mayo ATTEST: o�04 City Clerk -5-