HomeMy WebLinkAboutOrdinance 5219 ORDINANCE NO, 5219
AN ORDINANCE TO AMEND CHAPTER 51 WATER AND SEWERS OF
THE FAYETTEVILLE CODE BY AMENDING §51 . 140 (B) TERMINATION
BY ADDING A DEFINITION OF "CUSTOMER".
WHEREAS, although many properties are owned by individuals or married couples in
their own names, sometimes properties are owned by persons using different types of legal
ownership devices: corporations, trusts, LLCs, etc.; and
WHEREAS, sometimes the principal owner, trustee or beneficiary of a property will fail
to pay the city water/sewer/solid waste bill for that property, but still request water service for
another property using a different ownership name or type of entity without paying the old debt;
and
WHEREAS, a landlord who neglects to pay a water bill in his name or on one property
should not receive water service on any other property owned by the landlord regardless of the
type of legal entity used by the landlord for the ownership of any of his properties.
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 amends
§51 . 140 (B) by enacting a new subsection (4), as shown below:
"§51 . 140 (13)(4) Definition of `customer '
"(a) For purposes of this section a `customer' shall mean a person
or the spouse of the person in whose name water service from the
City of Fayetteville has been obtained. A ` customer' shall also
mean the trustee or any beneficiary of a trust which is the owner of
any property which has received water service from the City of
Fayetteville. Furthermore, a person who is a member of a Limited
Liability Company, partnership, or similar entity which received
water service in the entity' s name or a principal shareholder or
director of a corporation which has received water service shall be
considered a `customer"'.
Page 2
Ord. 5219
"(b) Unless the mayor determines it would be unfair and create an
undue hardship on any such customer or other person, the failure
of such customer to fully pay the customer's city utility bill for any
city utility account shall justify the discontinuance of utility service
to all of the customer's properties and accounts. The mayor may
exempt from discontinuance of service a particular customer' s
utility account to prevent unfairness and undue hardship."
PASSED and APPROVED this 3`d day of February, 2009. 00 \1Y ` •'•GPS',
E ; FAYElTEVILLE ;
APPROVED: ATTEST: y�,q 5;ti3
` / <lr� TON G�.��.
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By ,/�! sy:
LIO ELD JO Mayor SONDRA E, SMITH, City Clerk/Treasurer
RECEIVED
i FEB 13 2009
e ,,.� CIN OF FAYETTEVILLE
Arkawas Demo= 7V oaxe& CITY CLERK'S OFFICE
Northwest Arkansas Times
Benton County Daily Record
P. O. BOX 1607
FAYETTEVILLE, AR 72702
PHONE: 479-571 -6421
AFFIDAVIT OF PUBLICATION
I , Cathy Wiles, do solemnly swear that I am Legal Clerk of the Arkansas
Democrat Gazette newspaper. Printed and published in Benton County
Arkansas , (Lowell) and that from my own personal knowledge and
reference to the files of said publication , the advertisement of: City of
Fayetteville Ordinance #5219
i
February 9, 2009
Publication Charge : $86. 08
Signed:
Subscribed and sworn to before me
This // day of 2009.
Notary Public ---
My Commission Expires:
Do not pay from Affidavit, an invoice will be sent
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RECEIVED
FEB 13 2009
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
ORDINANCE NO. 6479 . . h '
AN ORDINANCE TO AMEND CHAPTER 51 WATER 44}
AND SEWERS OF THE FAYETTEVILLE CODE BV.
l'
AMENDING §51.140(B) TERMINATION BYADDING aye evl ey
A DEFINITION OF 'CUSTOMER'.
bf11EREASr although many properties are owned ARKANSAS .: t
by intllvitluelll a ropuri couples In their own
nameusing sanetimespropegalowns am owned bypersons R
using different t types of legal ownership devices:f corporations, trusts, a pro etc.; and
WHEREAS, spmelimee the principal owner, trustee or beneficiary to a property will fall to pay the.
using
g atedserent own whsle bill for that property, but still request wheel service for another properly'
using a different ownership name or type of entity w r bill paying me old debt and
(t
WHEREAS,
wale a landlord who neglects to pay a neer bill a his name e an one property should not
receive water service to any other ownership
owned
any f the lantlbrd regardless d Mre - flog
entity used by me IeMlortl for the ownership d any d his properties,
t - ,
NOW, THEREFORE, ORDAINED EV THE CITY COUNCIL OF THE CITY OF
FAYEEVILL94 ARKANSAS:
- {,
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby emends §51.140 (B) by
enacting a new subsection (4)„as shown below V 111
I 7
'§51.140 (8)(4) Defnilion ot 'eustomer' r .L�k �l a
'(a) For purposes of Nis section a 'customer' shall mean person or the spouse of Me per-
Son
er son in whose name water service from the Gry of Fayetteville has been obtamed. . A 'cus-
lomer' shhll also mean the trustee or any beneficiary of a trust which Is the owner of any prop- f
arty which has received water service from the City of Fayetteville. Furthermore, a person who . K
is a member of a Limited Liability Company, partnership, or similar amity which received water
service In the entityvs name or a principal shareholder a director of a oaporation which has ; r
j recehretl water service shall be considered a 'customer.-
'(b) Unless the mayor determines It would be unfair and create an undue hardship on any j
such customer or Omer person. the failure of such customer to fully pay the customer's cay
Mility bill for any city utility account shall justify the discontinuance of utility service to all of the
customers properties and accounts. The mayor may exempt from discontinuance of service k I'
a particular cuslomer's utility account to prevent unfairness and undue hardship.' y
PASSED and APPROVED this 3rd day of February, 2009. �r ?
APPROVED: ATTEST:
UONELD .IORDAN, IRayar SONDRA E. SNITNr City Clwbfllr s
ORO
AGENDA REQUEST .3
6 .d Lj s�w R
® rla9/09 h)od Nptr
FOR: COUNCIL MEETING OF FEBRUARY 3, 2009 '/ VUkfj�r
a44 6�tvsor`
FROM:
MAYOR LIONELD JORDAN
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
AN ORDINANCE TO AMEND CHAPTER 51 WATER AND SEWERS OF THE FAYETTEVILLE
CODE BY AMENDING §51 . 140 (B) TERMINATION BY ADDING A DEFINITION OF
"CUSTOMER"
APPROVED FOR AGENDA:
Dav' urges Date
W r Was ewater Director
AOIAI� 147/0 f
Wh arr ate
Chief • f Staff
Li Held Jord ate
Mayor
nth. 2` 2cz� `I
Kit Williams Date
City Attorney (as to form)
FAYETTEVILLE
THE CIN OF FAYETTEVILLE, ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
Ei
DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT
TO : City Council
THRU: Lioneld Jordan , Mayor
Don Marr, Chief of Staff
FROM: Kit Williams, City Attorney �
DATE : January 27, 2009
RE: Clarifying the definition "customer" in the Termination of Service
section of the Water and Sewer Chapter of the Fayetteville Code
The City Code has a detailed procedure to establish when and if a
customer' s water service should be discontinued for lack of payment. It even
allows a "customer disputing the correctness of his bill (to) have a right to a
hearing at which time he may be represented in person and by counsel . . . ."
Section 51 . 140(B)( 1 )(c) of the Fayetteville Code. (Attached is §51 . 140 Water
Billing Procedure) .
However, there is no provision that would prevent a customer with two
different water/sewer accounts to run up a large unpaid bill on one account while
still receiving water/sewer service on the second account. Even if the City could
not collect the unpaid amount on the overdue account, there is no current way to
discontinue service on the customer' s second account. A landlord could use our
lack of authority to link accounts to refuse to pay one account while receiving
service for his other accounts. This could lead to a situation where the City could
be unfairly used to cut off water service to tenants even if they were lawfully
paying their rent.
Unfortunately, this appears to be exactly what may be happening right now.
A local landlord has fallen far behind in his payments for the water, sewer and
trash bills for one of his apartment buildings (where there is only a single water
meter and thus a single bill) . The landlord is apparently attempting to sell this
building and once may have suggested he wanted to evict his tenants and wanted
us to cut off their water. He later made some additional payments, but remains far
behind (thousands of dollars). The City cannot overlook non-payments since this
would require our citizens who pay their water bill to pay more to make up for
non-payors. However, if his tenants have been paying their rent which must
include a portion for the landlord' s water/sewer bill, then it seems unfair to cut off
their water because their landlord has failed to use their rent to pay the water bill .
A possible solution to this situation would be to clarify the definition of
"customer" to include all the ways persons have created for property ownership
including the traditional individual and family ownership, but also the trusts,
LLCs, corporations, partnerships, etc. and relating all of these to any spouse,
partner, member of the LLC, primary shareholder or director of a corporation,
trustee or beneficiary of a trust, etc. This definition would also make clear that if
any person (no matter what type of property ownership is used) fails to pay
the city water/sewer/trash bill, then city water can be discontinued not only
for that account, but for every other account of this person. This would
prevent the person failing to pay our water bill for his tenants (who would suffer
the loss of water) to still receive water service from the City for his own business
or home.
The City would not have to discontinue water service for any related water
service account if to do so would be unfair or cause an undue hardship. This
provision would allow the City to discontinue a water service account to the
landlord 's own home or business if the landlord failing to pay a related water
service account was "gaming the system" to try to force the City to cut off water
service to his tenants to force eviction or for some other improper reason.
ORDINANCE NO.
AN ORDINANCE TO AMEND CHAPTER 51 WATER AND SEWERS
OF THE FAYETTEVILLE CODE BY AMENDING §51 . 140 (B) TERMINATION
BY ADDING A DEFINITION OF "CUSTOMER"
WHEREAS, although many properties are owned by individuals or married couples in
their own names, sometimes properties are owned by persons using different types of legal
ownership devices: corporations, trusts, LLCs, etc.; and
WHEREAS, sometimes the principal owner, trustee or beneficiary of a property will fail
to pay the city water/sewer/solid waste bill for that property, but still request water service for
another property using a different ownership name or type of entity without paying the old debt;
and
WHEREAS, a landlord who neglects to pay a water bill in his name or on one property
should not receive water service on any other property owned by the landlord regardless of the
type of legal entity used by the landlord for the ownership of any of his properties.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL FO THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby amends
§51 . 140 (B) by enacting a new subsection (4), as shown below:
"§51 . 140 (B)(4) Definition of 'customer '
"(a) For purposes of this section a `customer' shall mean a
person or the spouse of the person in whose name water service
from the City of Fayetteville has been obtained. A ` customer'
shall also mean the trustee or any beneficiary of a trust which is the
owner of any property which has received water service from the City
of Fayetteville. Furthermore, a person who is a member of a Limited
Liability Company, partnership, or similar entity which received water
service in the entity's name or a principal shareholder or director of a
corporation which has received water service shall be considered a
` customer' .
"(b) Unless the mayor determines it would be unfair and create an
undue hardship on any such customer or other person, the failure of
such customer to fully pay the customer's city utility bill for any city
utility account shall justify the discontinuance of utility service to all of
the customer' s properties and accounts. The mayor may exempt from
discontinuance of service a particular customer's utility account to
prevent unfairness and undue hardship."
PASSED and APPROVED this 3rd day of February, 2009.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
FAYETTEVILLE CODE OF ORDINANCES
TITLE V PUBLIC WORKS
include but are not limited to retail establishments, (M) User charge. That portion of the total wastewater
restaurants, office buildings, laundries, service charge which is levied in a proportional
governmental, educational, social, charitable, and adequate manner for the cost of operation,
religious, medical, penal institutions, poultry maintenance and replacement of the wastewater
houses, other private business and service treatment works.
establishments. It also includes industrial users
using less than an average of 5,000,000 gallons (N) Water meter. A water volume measuring and
per month in the previous calendar year. recording device, furnished and installed by the
water department of the city. In some bulk water
(H) Operation and maintenance. Those functions that cases, primarily for construction uses where a
result in expenditures during the useful life of the standard water meter cannot be used due to
treatment works for materials, labor, utilities, and large volume or water velocity requirements, the
other items which are necessary for managing and water shall be measured using a pilot gauge and
for which such works were designed and a timer.
constructed. The term 'operation and
maintenance" includes replacement. (Code 1965, §21-26.1; Ord. No. 1760, 9-9-70; Ord. No.
2913, 4-19-83; Ord, No. 2972, 1-17-84; Ord. No. 3197, 7-1-
(1) Replacement. Expenditures for obtaining and 86; Ord. No. 3491, 7-17-90; Ord, No. 3637, §3, 8-18-92; Ord.
installing components, equipment and No. 4059, §3. 10-7-97; Code 1991 , §51.138; Ord. 5124, 4-1 -
appurtenances which are necessary during the 08)
useful life of the treatment works to maintain the 51 .139 Reviews of Water and Sewer
capacity and performance for which such works
\ were designed and constructed. Rates, Notification to User
(J) Residential customer or user. Any contributor of (A) Periodic review by city; revision of rates. The city
wastewater to the city's treatment works whose shall review the charges periodically and revise
dwelling in a single family home, duplex, triplex, the rates as necessary to ensure that adequate
fourplex and/or any individually metered dwelling revenues are generated to pay the cost of
unit that is used for domestic dwelling purposes operation, maintenance, and replacement, and
only. that the system continues to provide for the
proportional distribution of operation,
(K) Treatment works. Any devices and systems for maintenance, and replacement costs among
the storage, treatment, recycling, and reclamation users and user classes.
of municipal sewage, domestic sewage, or liquid
industrial wastes. These include intercepting (B) Notification of user. The city shall notify each
sewers, outfall sewers, sewage collection user at least annually, in conjunction with a
systems, pumping, power, and other equipment regular bill, of the rates being charged for
and their appurtenances; extensions improvement; operation, maintenance and replacement of the
remodeling, additions, and alterations thereof; wastewater treatment works.
elements essential to provide a reliable recycled
supply such as standby treatment units and clear
well facilities; and any works, including site (Code 1965. §21-27; Ord. No. 1103, 2-20-56; Code 1991 ,
acquisition of the land that will be an integral part §51 .139; Ord. 5125, 4-1-08)
of the treatment process or is used for ultimate Slate law reference(s)-.Cities of the first class - Sale
disposal of residues resulting from such treatment or purchases of water to other municipalities. A.C.A. §14-
(including land for composting sludge, temporary 234-108; Cities of the first class - Sale of water to certain
storage of such compost, and land used for the persons; A.C.A. §14-234-109; Waterworks operated - in
storage of treated wastewater in land treatment governmental capacity - Services to nonresident consumers,
systems before land application); or any other A.C.A. §14-234-110; Service to adjacent areas-Municipalities
method or system for preventing, abating, generally, A.C.A. §14-234-111 .
reducing, storing, treating, separating, or disposing
of municipal waste or industrial waste, including 51 .140 Water Billing Procedure
waste in combined storm water and sanitary sewer
systems. (A) Water service bills. All bills for water services
shall be rendered in the net amount due. Water
(L) Useful life. The estimated period during which a bills are due and payable on or before the 20th
treatment works will be operated. day following the billing date stated on the water
bill. Water bills not paid on or before the due
CD51 :43
FAYETTEVILLE CODE OF ORDINANCES
TITLE V PUBLIC WORKS
date shall be considered delinquent and an not be entertained; only questions of proper
additional charge of 10% of the total bill shall be and correct billing will be considered. to the
paid; provided said penalty may be waived for absence of payment of the bill rendered or
elderly or handicapped utility customers pursuant resort to the hearing procedure provided
to a penalty waiver program approved by the City herein, service will be discontinued at the
Council. time specified.
(B) Termination o1 service. The city shall disconnect (3) Before service may be re-established
utility service in accordance with the following following disconnection or forfeiture of a
policies: service deposit, the consumer must pay any
bill due the city for water service not
(1 ) When it becomes necessary for the city to liquidated by the forfeited deposit. Said
discontinue utility service to a customer for consumer must also make a new service
nonpayment of bills, service will be reinstated deposit in accordance with §51 . 135(1) and
only after all bills for service then due have pay an additional service charge of $35.00.
been paid and deposit required has been
made. It is the policy of the city to terminate (4) Water service shall not be re-established
service to customers for reason of following forfeiture of a service deposit if the
nonpayment of bills only after they have been customer's account has been written off as
given notice and a meaningful opportunity to delinquent (the next Tuesday after water is
be heard on disputed bills. The city's form for discontinued) until the customer pays an
application for utility service and all bills shall additional $40.00 service deposit, plus the
contain, in addition to the title, address, room reconnection charge prescribed in
number, and telephone number of the official subsection (B)(2) above and the final water
in charge of billing, clearly visible and easily bill.
readable provisions to the effect:
(5) If the water meter has not been shut off,
(a) That all bills are due and payable on or there shall be a service charge of $5.00 for
before the date set forth on the bill; and collection of a water bill made in the field by
a service person.
(b) That if any bill is not paid by or before
that date, notice will be mailed advising (C) Billing adjustments. All water consumers will be
the customer that if the bill is not paid required to pay the full amount of the bill
within 28 days following the billing date calculated by the city, except in those instances
stated on the water bill service will be where the water meter concerned, or other water
disconnected, and the customers deposit plant property, has been shown to be defective
will be forfeited in an amount sufficient to and has resulted in an excessive charge to the
cover the gross amount of his due bill. customers account.
The forfeiture of the deposit shall take
place if the customer has not paid the (1) Where the consumer has not been negligent
delinquent bill plus all applicable service by his failure to repair known leaks or causes
charges within seven days after of excess water consumption, an adjustment
disconnection; and may be made to the consumer's bill if in the
opinion of the water and wastewater director,
(c) That any customer disputing the or his official representative, an adjustment
correctness of his bill shall have a right to is justified.
a hearing at which time he may be
represented in person and by counsel or (2) In no event shall a billing adjustment exceed
any other person of his choosing and 50% of the difference between the average
may present orally or in writing his of the customer's prior billings and the
complaint and contentions to the city amount of the disputed billing.
official in charge of utility billing. This
official shall be authorized to order that (3) In no event will a billing adjustment
the customers service not be amounting to less than $1 .00 be made.
discontinued and shall have the authority
to make a final determination of the (4) If the problem with the bill is due to leakage
customer's complaint. or some problem other than a misread or a
malfunction of city equipment, the consumer
(2) Requests for delays or waiver of payment will shall pay a service charge of $5.00.
CD51 :44
Page 1 of 1
Clarice Pearman - Ord. 5219
From: Clarice Pearman
To: Jordan, Lioneld
Date: 2.9.09 12:51 PM
Subject: Ord. 5219
CC: Audit
Attachments: Audit
Mayor Jordan:
Attached is a copy of the above ordinance passed by City Council amending Chapter 51 , §51 . 140(8) definition of customer.
Please let me know if there is anything else needed for this item. Have a good day.
Clarice
file://C :\Documents%20and%20Settings\cpearman.000\Local%20Settings\Temp\XPgrpwise\499026DDFA.. . 2.9.09