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HomeMy WebLinkAbout1994-059-04/05/1994-PROCEDURES UTILITY SERVICE WATER AND WASTEWATER UTILITY ZERO INTEREST LOAN PROGRAM ZILCH PROGRAM RESOLUTION 94-59 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE ZERO INTEREST LOAN PROGRAM PROCEDURES WHEREAS, on March 16, 1993, the Council adopted Resolution 93-37 adopting the Zero Interest Loan Program ("the Program") for the purpose of promoting water conservation; and WHEREAS, the loan program was developed to assist metered customers who wish to reduce their water consumption and who meet the guidelines of the Program; and WHEREAS, in Resolution 93-37, the City Council adopted by reference the "Procedures for Obtaining Zero Interest Loans," dated February, 1993, which were attached to the Resolution; and WHEREAS, recent administration of the Program has demonstrated that one of the criteria in the Program is too strict and needs to be changed; and WHEREAS, the City Council is desirous of amending subsection (3) of Section 2 of the Program Guidelines of the "Procedures for Obtaining Zero Interest Loans" attached hereto as Exhibit "A," by deleting the current i ^ t • ion '* 1-ace insert-in - the- following- �anguage of subsection ��� and �n ; �� p g language: "the customer is currently not delinquent on any utility service provided by the City of Fort Collins." NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS, that Resolution 93-37 and the "Procedures for Obtaining Zero- Interest Loans From the Water & Wastewater Utility" attached to it are hereby amended by deleting from the Procedures the current language of subsection (3) of Section 2 of the Program Guidelines of the Procedures and in its place inserting the following language: "the customer is currently not delinquent on any utility service provided by the City of Fort Collins. " Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 5th day of April , A.D. 1994. or ATTEST: ptt9ypa City Cl er—k Exhibit A PROCEDURES FOR OBTAINING ZERO-INTEREST LOANS FROM WATER & WASTEWATER UTILITY The purpose of this memorandum is to outline the process involved in obtaining a zero-interest loan from the Water & Wastewater Utility, to pay for water service line replacements, repairs to leaking pipes or plumbing fixtures, or installing ultra-low flush toilets. Resolution 90-147, approved by City Council on November 20, 1990, directed Utility staff "to investigate the feasibility of a zero interest loan program for customers with an inferior or corroded water serwicc7 line-that should be-replaced at the-time-of the-installation of the meter pit." On April 7, 1992 Resolution 92-63 was also approved by City Council, directing Utility Staff and the Water Board to "develop a zero-interest loan program for the installation of qualified water conservation measures." This zero-interest loan program is intended for metered customers who: (1) have galvanized, inferior, or corroded service lines that are in need of replacement as determined by Water Utility representatives; (2) have leaking pipes or plumbing fixtures in need of repair; or (3) wish to reduce their water consumption by installing ultra-low flush toilets (<_ 1.6 gallons/flush). This loan program is contingent upon appropriation of funds by the City Council. Loans will be subject to the availability of funds. PROGRAM GUIDELINES: 1. Funds for loans to replace service lines are included in the Water Capital Project budget of the Transmission and Distribution Division, account no. 502-066000- 529960-64000. Funds for loans to repair leaking pipes or plumbing fixtures or to install ultra-low flush toilets are included in Water Minor Capital account no. 502-014300-529290. Requisitions for loan payments should be charged to these accounts. 2. Customers are eligible for a loan if the following criteria are met: (1) the customer is the owner of the building which is a single family home or duplex that receives both water and sewer service from the City of Fort Collins, and (2) the building is metered or in the process of becoming metered, and (3) the eustemer has dtifing the last five yeafs (5) years, had ne delinquent ehafges du aft any utility sef-Aee previded by the Gity of Fort GeHifl�, and(3) the eu tourer isurrently nttt del4nquent!on any ttltty servtce preluded by the pity pf Fart Cnitins, and (4) it is determined by Water Utility representatives that; (a) the customer's service line is galvanized, inferior, or corroded, or (b) there are leaking pipes or plumbing fixtures in the home, or (c) the existing toilet(s) use 3.5 gallons or more of water per flush. a meter yoke may not be included in the loan. Payment to a licensed plumber will be made after meter is set, but not later than 45 days after work is completed if utility is unable to schedule installation before that time. 4. Loans for repairing or replacing leaking pipes or plumbing fixtures will be limited to the labor and material costs associated with the plumbing repair work. The I oan amount will exclude costs of repairing walls, ceilings-or floors-damaged-by the leaking plumbing or the repair work. 5. Loan amounts and maximum pay-off periods are as follows: MAXIMUM MONTHLY LOAN AMOUNT PAY-OFF PAYMENT PERIOD 50 - 100 6 months $16.67 101 - 250 12 months $20.83 251 — 750- 24-months- 31 25 751 - $1,500 48 months $31.25 up to $2,500 60 months $41.67 The maximum loan amount will be $1,500 for water service line replacements, $1,000 for interior plumbing repair work, and $500 for installation of ultra-low flow toilets. The maximum combined loan per water service will be $2,500. 6. Loan payment coupons will be provided to the customer until such time as the Utility's billing system is able to add installment charges to the customer's monthly utility bill. At such time the charge will be shown separately and labeled "Loan Payment". There is no penalty for early pay-off of loans. 7. A $25 administrative fee, payable at time promissory note and/or lien is signed, will be charged for loans greater than $500.00. No administrative fee will be charged for loans of $500.00 or less. 8. A lien agreement will be required for all loans of $750.00 or more. 9. The outstanding balance of the loan will be due upon sale of the property. 10. Failure to remit payment when due may result in termination of water service until payment is made.