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HomeMy WebLinkAboutITEM IV-C crry oF InterofFce Memorandum ~ 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.