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HomeMy WebLinkAboutOrdinance 6362pF FAYETTF L �_llil SRK ANS PS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6362 File Number: 2020-0778 TEMPORARY SUSPENSION OF UTILITY BILL SERVICE CUT-OFFS AND LATE CHARGES: AN ORDINANCE TO TEMPORARILY SUSPEND SERVICE DEPOSITS, CUT-OFFS, AND ACCRUALS OF LATE CHARGES ON CITY UTILITY BILLS FOR NON-PAYMENT DUE TO THE INABILITY TO PAY BECAUSE OF THE COVID-19 VIRUS PANDEMIC DISASTER EMERGENCY WHEREAS, in the beginning of the Covid-19 pandemic, the Mayor suspended utility service cut-offs for customers for nonpayment of balances due because of their inability to pay due to the lack of funds caused by the pandemic; and WHEREAS, the Mayor also used his emergency and executive powers to suspend the normally required security deposit and accrual of late fees if caused by a customer's financial problems related to the Covid-19 pandemic; and WHEREAS, since many of our current customers cannot pay a security deposit or the balance due on their accounts because of lack of funds caused by the Covid-19 pandemic, the administration is requesting that the City Council formally approve and extend the temporary suspension of utility service cut-offs, accruing of penalties and posting of security deposits if caused by the inability to pay due to the pandemic; and WHEREAS, these measures should remain in effect until the pandemic emergency as declared by the Governor has ended and economic conditions in Fayetteville have improved. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF Page 1 Printed on 10/7120 Ordinance: 6362 File Number: 2020-0778 FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines that it would be in the best interest of the citizens and City of Fayetteville to extend the temporary suspension of the requirement of service deposits, cut-offs of service and accruals of late charges on City utility bills for non-payment due to the inability to pay because of the Covid-19 pandemic. After the official end of the Covid-19 virus pandemic disaster emergency, the City Council requests that the Mayor through his staff continue to work with water/wastewater customers to recoup all overdue utility payments over time while the customers fully pay all current charges timely. PASSED and APPROVED on 10/6/2020 Yes: 8 Council Member Smith, Council Member Gutierrez, Council Member Marsh, Council Member Kinion, Council Member Petty, Council Member Scroggin, Council Member Bunch and Council Member Turk Attest: rrrr►rrrrr GLE.R K ! T rrii - • FgrE :�- Kara Paxton, City Clerk Treasu&r ; �E�/CC f : X= �z"i4, `ON i O,,`,```�. Page 2 Printed on 10/7/20 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 >• (479) 575-8323 j Text File — File Number: 2020-0778 Agenda Date: 10/6/2020 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: D. 3 TEMPORARY SUSPENSION OF UTILITY BILL SERVICE CUT-OFFS AND LATE CHARGES: AN ORDINANCE TO TEMPORARILY SUSPEND SERVICE DEPOSITS, CUT-OFFS, AND ACCRUALS OF LATE CHARGES ON CITY UTILITY BILLS FOR NON-PAYMENT DUE TO THE INABILITY TO PAY BECAUSE OF THE COVID-19 VIRUS PANDEMIC DISASTER EMERGENCY WHEREAS, in the beginning of the Covid-19 pandemic, the Mayor suspended utility service cut-offs for customers for nonpayment of balances due because of their inability to pay due to the lack of funds caused by the pandemic; and WHEREAS, the Mayor also used his emergency and executive powers to suspend the normally required security deposit and accrual of late fees if caused by a customer's financial problems related to the Covid-19 pandemic; and WHEREAS, since many of our current customers cannot pay a security deposit or the balance due on their accounts because of lack of funds caused by the Covid-19 pandemic, the administration is requesting that the City Council formally approve and extend the temporary suspension of utility service cut-offs, accruing of penalties and posting of security deposits if caused by the inability to pay due to the pandemic; and WHEREAS, these measures should remain in effect until the pandemic emergency as declared by the Governor has ended and economic conditions in Fayetteville have improved. 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 determines that it would be in the best interest of the citizens and City of Fayetteville to extend the temporary suspension of the requirement of service deposits, cut-offs of service and accruals of late charges on City utility bills for non-payment due to the inability to pay because of the Covid-19 pandemic. After the official end of the Covid-19 virus pandemic disaster emergency, the City Council requests that the Mayor through his staff continue to work with water/wastewater customers to recoup all overdue utility payments over time while the customers fully pay all current charges timely. City of Fayetteville, Arkansas Page 1 Printed on 101712020 File Number. 2020-0778 City of Fayetteville, Arkansas Page 2 Printed on 101712020 Paul Becker Submitted By City of Fayetteville Staff Review Form 2020-0778 Legistar File ID 10/6/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/16/2020 Submitted Date Action Recommendation: CHIEF FINANCIAL OFFICER (110) Division / Department Staff recommends approving temporary ordinance changes to the Water and Sewer and Recycling and Trash Collection ordinances to temporarily suspend service cut off and the accruing of late charges on City utility bills for non-payment due to the inability to pay utility bills during the Covid-19 pandemic. Budget Impact: XXXX Water/Sewer, Trash and Recycling Account Number XXXX Project Number Budgeted Item? No Does item have a cost? No Budget Adjustment Attached? No Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund N/A Project Title V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF OCTOBER 6, 2020 TO: Mayor and City Council THRU: Mayor: Lioneld Jordon FROM: Paul Becker, Chief Financial Officer DATE: September 16, 2020 CITY COUNCIL MEMO SUBJECT: Staff recommends approving temporary Ordinance Changes to the Water and Sewer and Recycling and Trash Collection Ordinances which will delay service cut off and the accruing of late charges on City Utility Bills for non-payment due to the inability to pay bills during the Covid-19 pandemic. This would include the payment of a customer deposit required for new service if the customer does not have the funds to pay that at the time of service connection. RECOMMENDATION: To delay shut-off of utility services to customers who are unable to pay outstanding bills during the Covid-19 Pandemic. Also, to prohibit the charging of penalties for non-payment due to the inability to pay service fees during the pandemic. This would also include a temporary delay of security deposits on new accounts if the customer does not have the funds to post the deposit at the time of the service request if required. BACKGROUND / Discussion: During the initial phase of the Covid-19 pandemic pursuant to the Mayor's emergency powers, an administrative decision was made to suspend utility service cut-offs for customers for nonpayment balances due to the lack of funds because of the necessity of hand and body washing which prevents the spread of the virus. It was also decided not to accrue penalties for non-payment and to extend utility services to new customers even though they could not post a required deposit because of lack of funds. This measure was intended to be for a short duration as it was thought that the pandemic would not extend past the summer months. The Mayor's emergency powers have terminated; however, the pandemic has not only remained, but the number of cases has increased. Since many of our current customers cannot pay the balances on their accounts due to a lack of funds, the administration is requesting the Council formally approve the temporary suspension of utility service cut-offs, accruing of penalties and posting of service deposits if caused by the customers inability to pay account balances due to the pandemic. The administration is requesting these measures be in effect until pandemic disaster emergency declared by the Governor has ended. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: This will result in a potential loss due to debt incurred that cannot be paid at all in the future. However, the Water and Sewer Fund and Recycling Funds should have sufficient funds at this time to sustain a manageable bad debt write off. Attachments: None Ll DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY TO: Mayor Jordan City Council CC: Susan Norton, Chief of Staff Paul Becker, Finance Director FROM: Kit Williams, City Attorney r DATE: September 22, 2020 Kit Willian-is City Attorney Blake Pennington Assistant City Aitornev Jodi Batker Paralegal RE: Temporary suspension of cut-offs of water, wastewater, trash and recycling services, security deposit requirements, and late fees After the Covid-19 virus pandemic disaster emergency was proclaimed by both Governor Hutchinson and Mayor Jordan in mid -March, the City began having a substantial increase in the number of its customers not being able to pay their water bills in full and on time. Even though the City always regrets having to turn off water to customers not fully and timely paying their bills, the Covid-19 pandemic caused two new major problems. The massive economic downturn, the tens of millions of Americans losing their employment, and the vital need of our citizens for clean water and sanitation services meant that temporarily suspending water, wastewater, and trash services cut-offs for not paying the bills needed to be instituted for the health, safety, and peace of our citizens. Mayor Jordan acted pursuant to the Mayor's statutory powers and the City Council's provision of emergency powers to the Mayor through its emergency pandemic ordinance. The Mayor's power to temporarily stop cut-offs of utility services if caused by the pandemic also rested in part on his power to use City employees as he believed to be in the best interests of our citizens. Having the employees refrain from turning off the water for our citizens (even if late or not paying the full amount due) was in the best interest of all of our citizens during this pandemic. The Mayor also stopped the accrual of late payment charges and even the requirement for security deposits for new service if a potential customer could not pay due to adverse economic or health problems caused by the pandemic emergency. As this pandemic drags on with likely many months to go before the pandemic emergency is over, Mayor Jordan wants to include the City Council in on his decision to maintain the suspension of water shutoffs due to the Corona Virus pandemic and its economic problems. The Mayor realizes that this temporary shut-off moratorium cannot last much beyond the end of the pandemic emergency and its economic disaster of tens of millions of unemployed citizens. Once this pandemic and its economic problems for Fayetteville's citizens and customers of our utility have subsided, the City will work with these customers to again require full collection of ongoing water bills while trying to take reasonable accommodation measures to begin collecting overdue water bills. Unless you want this shut-off forbearance to end right now, you should support the proposed ordinance which will continue this forbearance and keep water, sewer, trash, and recycling services available for our residents until the pandemic emergency is over. z NORRIWEST ARKkW Democralfouft AFFIDAVIT OF PUBLICATION I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so related to this publication at and during the publication of the annexed legal advertisement the matter of Notice pending in the Court, in said County, and at the dates of the several publications of said advertisement stated below, and that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County; that said newspaper had been regularly printed and published in said County, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below. City of Fayetteville Ord 6362 Was inserted in the Regular Edition on: October 11, 2020 Publication Charges: $173.28 Brittany Smith Subscribed and sworn to before me This JU day of , 2020. Notary Public l My Commission Expires: invoice win De sent. Ordinance: 6362 File Number: 2020-0778 TEMPORARY SUSPENSION OF UTILITY BILL SERVICE CUT- OFFS AND LATE CHARGES: AN ORDINANCE TO TEMPORARILY SUSPEND SERVICE DEPOSITS, CUT- OFFS AND ACCRUALS OF LATE CHARGES ON CITY UTILITY BILLS FOR NON- PAYMENT DUE TO THE INABILITY TO PAY BECAUSE OF THE COVID-19 VIRUS PANDEMIC DISASTER EMERGENCY WHEREAS, in the beginning of the Covid-19 pandemic, the Mayor suspended utility service cut-offs for customers for nonpayment of balances due because of their inability to pay due to the lack of funds caused by the pandemic; and WHEREAS, the Mayor also used his emergency and executive powers to suspend the normally required security deposit and accrual of late fees if caused by a customer's financial problems related to the Covid-19 pandemic; and WHEREAS, since many of our current customers cannot pay a security deposit or the balance due on their accounts because of lack of funds caused by the Covid-19 pandemic, the administration is requesting that the City Council formally approve and extend the temporary suspension of utility service cut-offs, accruing of penalties and posting of security deposits if caused by the inability to pay due to the pandemic; and WHEREAS, these measures should remain in effect until the pandemic emergency as declared by the Governor has ended and economic conditions in Fayetteville have improved. 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 determines that it would be in the best interest of the citizens and City of Fayetteville to extend the temporary suspension of the requirement of service deposits, cut- offs of service and accruals of late charges on City utility bills for non- payment due to the inability to pay bccause of the Covid-] 9 pandemic. After the official end of the Covid- 19 virus pandemic disaster emergency, the City Council requests that the Mayor through his staffcontinue to work with water/wastewater customers to recoup all overdue utility payments over time while the customers fully pay all current charges timely. PASSED and APPROVED on l0/62020 Yes: 8 Council Member Smith, Council Member Gutierrez, Council Member Marsh, Council Member Kinion, Council Member Petty, Council Member Scroggin, Council Member Bunch and Council Member Turk Lioneld Jordan, Mayor Attest: Kara Paxton, City Clerk Treasurer 75332668 10/112020