HomeMy WebLinkAboutITEM IV-C
crry oF InterofFce Memorandum
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WASHINGTON
To: Finance Committee
From: Rhonda Ewing, Utilities & Accounting Services Manager
CC: Shelley Coleman, Maggie Coleman
Date: November 16, 2009
Re: Tenant Billing Information
There have been some inquiries from our customers, who are tenants, as to why they need permission
from the property owner before they can enter into a payment arrangement.
The City offers, as a convenience, an option to the landlord to add the tenant to an account. This allows the
tenant to receive a copy of the bill, access to the account to make changes to garbage service and to
inquire about the account. The account is not taken out of the owner's name. The owner remains on the
account because the owner is ultimately responsible for the charges if the tenant does not pay.
It is the Utility Department's practice to always contact the owner on an account prior to making a payment
arrangement with the tenant. If a payment arrangement were to be made without the owner's knowledge,
the tenant could potentially run the account balance up and leave the balance unpaid. A lien would be
placed on the property for the unpaid balance. Since it is the owner's property that would have the lien
placed on it, we do need the owner's permission and acknowledgement before granting a payment
arrangement.
Attachment: Tenant Billing Information
Page 1 of 1
AUBURN * MORE THAN YOU IMAGWED
Tenant Billing Information
From Municipal Research and Services Center of Washington:
o Absent an authorizing ordinance, may the city hold the property owner responsible for
a delinquent water bill owed by tenant?
• Yes. Both RCW 35.21.290, (water service) and RCW 35.67.200 (sewer service) provide
that the so-called liens are "against the premises." In effect, this means that the property
owner will ultimately be liable for a delinquent billing.
o Must a city notify the property owner/landlord of tenant delinquency and the owner's
responsibility for delinquent charges where city ordinance requires utility accounts to
be in landlord's name but allows the account to be sent to the tenant at the landlord's
request?
• Although not required to do so by state statute, it is a good idea.
The City of Auburn Utility Billing Department does not open accounts in the name
of the tenant only. RCW 35.21.290 states that the water service charges are tied to
the property and not to the name of the person purchasing the service:
RCW 35.21.290
Utility services - Lien for.
Cities and towns owning their own waterworks, or electric light or power plants shall have a lien againstthe
premises to which water, electric light, or power services were' furnished for four months `charges therefore
due or to become due, but not for any charges more than four months past due: PROVIDED, That the owner
of the premises or the owner of a delinquent mortgage thereon may give written notice to the superintendent
or other head of such works orplant to cut' off service to such premises accompanied by; payment or tender
of payment ofthe then delinquenf and'unpaid charges for such service against the premises together with
the cut-off charge, whereupon the city or town shall have no lien against the premises for charges for such
service thereafter furnished, nor shall the owner of the premises or the owner of a delinquent mortgage
thereon be held for the payment thereof.
The City offers as a convenience, an option to the landlord to ADD the tenant to an
account so that he or she may receive a copy of the bill and be allowed access to the
account to make changes to garbage service and inquire about the account. The account
is NOT taken out of the owner's name, the owner's name remains on the account since it
is the owner who is ultimately responsible for the bill if the tenant does not pay.
It is our practice to always contact the owner on an account prior to making a payment
arrangement with their tenant. If an arrangement is made with a tenant without the
owner's knowledge, the tenant could potentially run the account balance upwards of $500
dollars or more between usage and fees.
Since it is the owner's property that will be liened for this unpaid balance, we do need to
have their permission and acknowledgement before granting an extension.
Auburn City Code:
13.06.305 Accounts to be in name of owner or leaseholder.
All water service accounts shall be kept only`in the name of the owner of the prem'ises
for which the service was installed. The property owner rnay,request to have water bills
mailed to a tenant, lessee, or agent, but fhis shall not relieve the property owner from
liability for water charges incurred. A current tenant release form must be on file with the
city for a property owner to have water bills mailed to a tenant, lessee, or agent. (Ord.
5849 § 1, 2004; Ord. 5216 § 1, 1999; Ord. 4878 § 3, 1996.)
13.06.290 Service charges - Liability - Nonpayment action.
All water rates will be charged against the premises for which the service was
installed. All charges #or water, when the same become delinquent and unpaid„ shall be
a lien against the premises to which the same has been furnished. When any charges
for water become delinquent against any premises, the water shall be shut off until such
charges are paid. (Ord. 5849 § 1, 2004; Ord. 5216 § 1, 1999; Ord. 4878 § 3, 1996.)
How neighboring cities handle:
o City of Kent
• City of Kent will make arrangements with tenants only with the property
owners approval.
• Property owners approval must be in writing.
• If the tenant incurs multiple shut offs the account automatically transfers
back to the owners name.
• Unauthorized meter turn ons - the meter is pulled immediately
o City of Renton
• City of Renton will make arrangements with the tenant.
• The owner grants a pre-approval when signing the tenant release form.
• The owner must have their signature notarized.