HomeMy WebLinkAboutOrdinance 6362pF FAYETTF
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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:
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Kara Paxton, City Clerk Treasu&r ; �E�/CC f : X=
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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
