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HomeMy WebLinkAboutOrdinance 4493 M � ORDINANCE NO, 4493 AN ORDINANCE TO REPEAL SECTION 51 . 135 SERVICE DEPOSITS, OF THE CODE OF FAYETTEVILLE AND TO ENACT NEW SECTION 51 . 135 WHEREAS, the City of Fayetteville desires to return or waive water service deposits for property owners who have histories of twelve consecutive months of prompt full payment of water, sewer and solid waste bills; and WHEREAS, the City needs to ensure that sewer and water impact fees are properly and promptly paid upon the installation of a water meter for construction purposes; and WHEREAS, other changes in the administration of service deposits need to be made. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby repeals §51.135 Service deposits of the Fayetteville Code, in its entirety and enacts the following new §51 . 135 Service Deposits of the Fayetteville Code to replace it: Sec. 51 .135. Service Deposits. A service deposit shall be made with each application for water service, construction water service and construction solid waste service if such precedes construction water service. This service deposit shall be retained in trust, without interest, by the city's finance department. When service to the depositor is discontinued permanently, said service deposit shall be applied to the final billing and the remainder, if any, returned to the depositor. (A) Refund of Service Deposits. If the depositor achieves twelve consecutive months of on-time payments in full of all water, sewer, and/or sanitation fees due the City, the service deposit shall be refunded to the depositor. If a new customer can provide adequate proof of his or her twelve consecutive month history of prompt and full utility payments to the Business Office Supervisor, the Business Officer Supervisor shall waive the requirement of a security deposit for this new customer. (B) Reinstitution of Service Deposit. If a customer has received a refund of the service deposit or had the service deposit waived for proof of twelve consecutive month prompt payment history and the customer fails to promptly pay a monthly billing, the Business Office Supervisor may require payment of a new security deposit in an amount equal to or double the amount of the normal security deposit depending on the amount owed, lateness of payment and any reasons for late payment. • • (C) Service Deposits For Addresses To Which Water Was Shut-off By The City For Delinquent Bills. (1 ) If a current customer has had water shut off for failure to pay city bills, the customer must pay a $35 .00 reconnect fee plus the full amount of the back bill to receive water service. The Business Officer Supervisor may also require double the normal deposit if this is a recurring problem. (2) If a new customer seeks to have water turned on at an address or residence which was shut-off for non-payment within the preceding sixty (60) days, the new customer must pay the back water bill before the water may be turned on. A new security deposit may also be required. (3) The Business Office Supervisor or designee may waive the reconnect fee after taking into consideration the consumer's property ownership, credit experience with the consumer, payment record of the consumer, and status of current service deposit(s) the consumer presently has active with the city on other utility accounts. (4) The Mayor may, in cases of extreme hardship (unknown water leak in customer's line, excusable neglect, etc.), authorize continued or beginning water service with extended payment terms for past due bills, reduction of amounts due, or other compromises. No compromise or settlement may violate the terms of any bonds for which water or sewer revenue is pledged. (D) Government Consumers. Federal, state, county, and other local government consumers shall not be required to make a service deposit. (E) Private Residential Consumers. A private residential consumer shall be required to make a minimum service deposit of $50.00 unless waived pursuant to subsection B. For the purpose of this division, a private residential consumer is defined as any single-family unit without regard to property ownership or a single apartment occupied by no more than four unrelated persons for which an individual meter is required. (F)Other Residential Consumers. All other residential consumers, whether apartment houses, boardinghouses, fraternity houses, sorority houses, or other multiple-family dwellings where master meters are used shall be required to make a service deposit of $200.00. (G) Impact Fee Requirements. All customers obtaining a new water service including building contractors obtaining water for construction purposes shall be required to comply with § 159.02 of the Unified Development Code of Fayetteville Regulating Collection and Disbursement of Water and Wastewater Impact Fees. Individual deposits for each new water and sewer service are required. N 0 (H) Commercial Customers. Commercial customers such as owners of hotels, motels, cafeterias, restaurants, service stations, car washing establishments, supermarkets, laundries, and industrial consumers shall be required to make a minimum service deposit of $ 100.00, or that equal to the highest one-month bill, whichever is greater. (I) Rental Cleanup Deposits. Rental property owners obtaining water for rental cleanup purposes must sign the Property Owner's Agreement which lists all properties to be covered under this section and states Rental Property Owners will be billed for all of the services provided (water, wastewater and solid waste). At such time as an individual dwelling is occupied, the deposit required by subsection (b) of this section shall be made for that unit. Failure of property owners to pay billings as presented will result in cancellation of the property Owner's Agreement and all future service orders shall require a deposit equal in amount as set forth in subsection (E). The signed agreement, between the City and Property Owners must be executed prior to tum on service being provided and must contain a listing of individuals authorized to initiate service under the provision of this subsection. (J) Water For Irrigation Purposes. All customers requesting water service for irrigation purposes shall be required to make a minimum service deposit of $50.00 for service whereas the water meter is sized one inch or less, $ 100.00 whereas the water meter is sized over one inch, or that equal to the highest one-month bill, whichever is greater. (K) Delinquent Payment History. For all customer types, the service deposit amount required may be increased up to two and one-half times the estimated maximum bill, as determined by the Business Office Supervisor or designee, if the customer has a history of delinquent payment or nonpayment of his bill. Increased service deposits may be required of all consumers whether residential, commercial, industrial, or irrigation services. (L) Time Of Payment, The Business Office Supervisor or designee shall determine with each application for water service whether the service deposit shall be paid at the time of application, or if said deposit may be billed to the consumer, in part or in whole, on the first month's billing or spread over several month's billings. (1 ) In determining the required method of payment for the service deposit, the Business Office Supervisor or designee shall take in consideration property ownership, credit experience with the consumer, payment record of the consumer, and status of current service deposit(s) the consumer presently has active with the city on other utility accounts. (M)Inactive Meter Use. In the event of water consumption on an inactive meter when no service deposit has been made, the water meter shall not be reconnected until the customer pays the required service deposit and pays a $35.00 reconnection charge plus the back bill. Ord. No. 4493 Page 2 +y,, PASSED and APPROVED this the 3`d day of June, 2003 . s APPROV . By: p . A COODY, Ma or Y Sondra Smith, City Clerk NAME OF FILE: Ord. No. 4493 CROSS REFERENCE: Item # Date Document 1 06/03/03 Ord. No. 4493 2 06111/03 Staff Review Form wlattachments: draft ordinance memo to mayor city/council 3 06111/03 memo to Steve Davis NOTES: E FAYETTEV?,LE ~ THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Steve Davis Finance and Internal Services From: Clarice Buffalohead-Pearman City Clerk's Division Date: 6/11/2003 Re: Ordinance No. 4493 Attached hereto is an executed copy of the above ordinance passed by the City Council June 3, 2003, repealing and replacing § 51 . 135_ Service Deposits, of the Code of Fayetteville. _ This ordinance will filed in the city clerk's office, microfilmed and published in a newspaper of general circulation per Arkansas statutes. If anything else is needed please let the city clerk's office know. /cbp Attachment(s) cc: Nancy Smith, Internal Auditor STAFAV EW FORM - NON- FINANCIAL OBL TION �j u R Wn 1151, 13s XX AGENDA REQUEST For the Fayetteville City Council Meeting of : June 3, NO3 FROM : Stephen Davis Finance & Internal Services Name Division Department ACTION REQUIRED: Amend City of Fayetteville Code of Ordinances Section 51 . 135 to bring the new service deposit requirements into compliance with the water and wastewater impact fee ordinance. SUMMARY EXPLANATION : The proposed ordinance will: 1 ) retund all service deposits where the customer has at least twenty-Your (24 months) with no payment delinquency or re-connection fees. 2) rescind and refund all cover deposits placed by commercial customers, building contractors and rental property owners. 3) establish a property owner's cover deposit for the purposes of cleaning up properties between occupancy. 4) require new water service comply with applicable provisions of §159.02 of the Unified Development Code of Fayetteville Regulating Collection and Disbursement of Water and Wastewater Impact Fees. STAFF RECOMMENDATION : Received in Mayor ' s Office .�t.,�d3 .- ,t" ivi d Date Date 5'/Z 1161 City Attorney Date Cross Reference : Depart n ent Dir for Date Previous Ord/Res# : Finance & Internal Services Dir . �j Date Orig . Contract Date : ,/ Orig . Contract Number : Chief d nistrative Officer Date New Item : Yes o Mayor / Da e � K:\Steve Davis\Water_sewer Ordinance Section 51 .135 Revision StaffReviewNonFinancialObligatiorMay 21 , 2003 ORDINANCE NO. AN ORDINANCE TO REPEAL SECTION 51 .135 SERVICE DEPOSITS, OF THE CODE OF FAYETTEVILLE AND TO ENACT NEW SECTION 51 .135 WHEREAS, the City of Fayetteville desires to return or waive water service deposits for property owners who have histories of twenty-four (24) consecutive months of prompt full payment of water, sewer and solid waste bills; and WHEREAS, the City needs to ensure that sewer and water impact fees are properly and promptly paid upon the installation of a water meter for construction purposes; and WHEREAS, other changes in the administration of service deposits need to be made. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby repeals §51.135 Service deposits of the Fayetteville Code, in its entirety and enacts the following new §51.135 Service Deposits of the Fayetteville Code to replace it: Sec. 51.135. Service Deposits. A service deposit shall be made with each application for water service, construction water service and construction solid waste service if such precedes construction water service. This service deposit shall be retained in trust, without interest, by the city's finance department. When service to the depositor is discontinued permanently, said service deposit shall be applied to the final billing and the remainder, if any, returned to the depositor. (A) Refund of Service Deposits. If the depositor achieves twenty-four consecutive months of on-time payments in full of all water, sewer, and/ or sanitation fees due the City as of June of any year, the service deposit shall be refunded to the depositor. If a new customer can provide adequate proof of his or her twenty-four consecutive month history of prompt and full utility payments to the Business Office Supervisor, the Business Officer Supervisor shall waive the requirement of a security deposit for this new customer. (B) Reinstitution of Service Deposit. If a customer has received a refund of the service deposit or had the service deposit waived for proof of twenty-four consecutive month prompt payment history and the customer fails to promptly pay a monthly billing, the Business Office Supervisor may require payment of a new security deposit in an amount equal to or double the amount of the normal security deposit depending on the amount owed, lateness of payment and any reasons for late payment. (C) Service Deposits For Addresses To Which Water Was Shut-off By The City For Delinquent Bills. (1) If a current customer has had water shut off for failure to pay city bills, the customer must pay a $35.00 reconnect fee plus the full amount of the back bill to receive water service. The Business Officer Supervisor may also require double the normal deposit if this is a recurring problem. (2) If a new customer seeks to have water turned on at an address or residence which was shut-off for non-payment within the preceding sixty (60) days, the new customer must pay the back water bill before the water may be turned on. A new security deposit may also be required. (3) The Business Office Supervisor or designee may waive the reconnect fee after taking into consideration the consumer's property ownership, credit experience with the consumer, payment record of the consumer, and status of current service deposit(s) the consumer presently has active with the city on other utility accounts. (4) The Mayor may, in cases of extreme hardship (unknown water leak in customer's line, excusable neglect, etc.), authorize continued or beginning water service with extended payment terms for past due bills, reduction of amounts due, or other compromises. No compromise or settlement may violate the terms of any bonds for which water or sewer revenue is pledged. (D) Government Consumers. Federal, state, county, and other local government consumers shall not be required to make a service deposit. (E) Private Residential Consumers. A private residential consumer shall be required to make a minimum service deposit of $50.00 unless waived pursuant to subsection B. For the purpose of this division, a private residential consumer is defined as any single-family unit without regard to 0 0 property ownership or a single apartment occupied by no more than four unrelated persons for which an individual meter is required. (F) Other Residential Consumers. All other residential consumers, whether apartment houses, boardinghouses, fraternity houses, sorority houses, or other multiple-family dwellings where master meters are used shall be required to make a service deposit of $200.00. (G) Impact Fee Requirements. All customers obtaining a new water service including building contractors obtaining water for construction purposes shall be required to comply with §159.02 of the Unified Development Code of Fayetteville Regulating Collection and Disbursement of Water and Wastewater Impact Fees. Individual deposits for each new water and sewer service are required. (H) Commercial Customers. Commercial customers such as owners of hotels, motels, cafeterias, restaurants, service stations, car washing establishments, supermarkets, laundries, and industrial consumers shall be required to make a minimum service deposit of $100.00, or that equal to the highest one-month bill, whichever is greater. (I) Rental Cleanup Deposits. Rental property owners obtaining water for rental cleanup purposes must sign the Property Owner's Agreement which lists all properties to be covered under this section and states Rental Property Owners will be billed for all of the services provided (water, wastewater and solid waste). At such time as an individual dwelling is occupied, the deposit required by subsection (b) of this section shall be made for that unit. Failure of property owners to pay billings as presented will result in cancellation of the property Owner's Agreement and all future service orders shall require a deposit equal in amount as set forth in subsection (E). The signed agreement, between the City and Property Owners must be executed prior to turn on service being provided and must contain a listing of individuals authorized to initiate service under the provision of this subsection. (J) Water For Irrigation Purposes. All customers requesting water service for irrigation purposes shall be required to make a minimum service deposit of $50.00 for service whereas the water meter is sized one inch or less, $100.00 whereas the water meter is sized over one inch, or that equal to the highest one-month bill, whichever is greater. (K) Delinquent Payment History. For all customer types, the service deposit amount required may be increased up to two and one-half times the estimated maximum bill, as determined by the Business Office Supervisor or designee, if the customer has a history of delinquent payment or nonpayment of his bill. Increased service deposits may be required of all consumers whether residential, commercial, industrial, or irrigation services. (L) Time Of Payment. The Business Office Supervisor or designee shall determine with each application for water service whether the service deposit shall be paid at the time of application, or if said deposit may be billed to the consumer, in part or in whole, on the first month's billing or spread over several month's billings. (1) In determining the required method of payment for the service deposit, the Business Office Supervisor or designee shall take in consideration property ownership, credit experience with the consumer, payment record of the consumer, and status of current service deposit(s) the consumer presently has active with the city on other utility accounts. (M) Inactive Meter Use. In the event of water consumption on an inactive meter when no service deposit has been made, the water meter shall not be reconnected until the customer pays the required service deposit and pays a $35.00 reconnection charge plus the back bill. PASSED and APPROVED this the 3rd day of June, 2003. APPROVED: By: DAN GOODY, Mayor ATTEST: By: Sondra Smith, City Clerk FAYETTELLE ~ THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Fayetteville City Council THROUGH: Dan Coody, Mayor Hugh Earnest, Chief Administrative Officer FROM: Stephen Davis, Finance & Internal Services Directo5&, DATE: May 21 , 2003 SUBJECT: Water & Sewer Ordinance Revision Background Representatives of several City divisions have been meeting to work out the operational details related to the implementation of the City's water and wastewater impact fees on June 16, 2003. State legislation was approved by the Arkansas legislature this past session that governs the timing of impact fees (ACT 1719 of 2003). Specifically Section I (f) (2) (B) states, in part, "a municipal or wastewater department, waterworks, or joint waterworks, or a consolidated waterworks system operating under the Consolidated Waterworks Authorization Act may collect a development impact fee in connection with and as a condition to the installation of the water meter serving the property." Discussion The Fayetteville Code of Ordinances in Chapter 51 Section 135 provides the legislative authority that governs service deposits for water and wastewater service. Subsection D allows commercial customers, rental properties and building contractors to place a cover deposit that enables them to obtain new water service without having to place an additional deposit. Section G of the same Chapter provides rental property owners the ability to have a cover deposit that allows the property owner to place the utility service in their name for property clean-up purposes. The water and wastewater service deposit provisions need revision to reflect the provisions of § 159.02 of the Unified Development Code of Fayetteville regulating Collection and Disbursement of Water and Wastewater Impact Fees. If approved by City Council, the attached proposed ordinance revisions will: A) refund all service deposits where the customer has no delinquency assessments or re-connection charges over the past twenty-four (24) months, B) rescind and refund all cover deposits placed by commercial customers, building contractors and rental property owners, C) establish a requirement for a Rental Property Owners Agreement and establish the deposit requirement for rental property clean-ups, D) establish the method by which future service deposits will be refunded, E) revise the service deposit requirement when water service has been KASteve DavisWgenda Memo Chapter 51 Revisions _Impact Fees.doc