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HomeMy WebLinkAboutOrdinance 998 Amending Chapter 94 Establishing Process for Non Compliant Water and Sewer CustomersORDINANCE NO.998 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, AMENDING THE CODE OF ORDINANCES, CHAPTER 94, ARTICLE H; ESTABLISHING THE FINANCIAL RESPONSIBILITY OF CUSTOMERS UTILIZING THE TOWN OF WESTLAKE'S WATER AND/OR SEWER INFRASTRUCTURE; ESTABLISHING A PROCESS FOR NOTIFYING, DISCONNECTING, RECONNECTING, AND ASSESSING FEES FOR CUSTOMERS IN NON-COMPLIANCE OF PAYMENT; AND DECLARING AN EFFECTIVE DATE OF JULY 1, 2024. WHEREAS, the Town of Westlake, Texas ("Town") is a municipality providing water and sewer services to customers within its boundaries and connected to its utility infrastructure by Town -issued meters; and WHEREAS, the Town has a responsibility to provide adequate water and sewer utility services to its customers; and WHEREAS, the Town has a fiduciary responsibility to provide vital water and sewer utility services in a cost-effective manner; and WHEREAS, the Town agrees that no free water and/or sewer utility service provided by the Town shall be allowed; and WHEREAS, the Texas Administrative Code allows for the Town to establish processes and fees to ensure water and sewer utility services continue to be provided fairly; and WHEREAS, the Town establishes a process for required notification prior to disconnection, corresponding penalties, and reconnection (Attachment A); and WHEREAS, the attached fees (Attachment B) implementing new fees are consistent with the industry standards, and are just, reasonable, and in the public interest; and WHEREAS, the Town finds that the codification of an ordinance is in the best interest of the Town and its customers. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the Town Council finds that the Ordinance and its attachments are not in conflict with the Texas Administrative Code. Section 3. That this Ordinance establishes a process and fees which are just and reasonable. Section 4. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 5. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. Section 7. That this Ordinance shall become effective from and after its passage with rates authorized by attached fees to be effective for Town -issued utility bills rendered on or after July 1, 2024. Ordinance 998 Page 2 DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, ON THIS THE 3'd DAY OF JUNE 2024. Mayor Ki G e ves ATTEST: Dianna Buchanan, Interim Town Secretary APPROVED AS TO FORM: Ax L. Stanton Lowry, Town Attorney Ordinance 998 Pa.-e 3 Ordinance 998 —Attachment A The Town will utilize the following calendar processes, separated by water meter usage type, to attempt to collect monthly utility bills from its customers. Residential Billing Date: Town of Westlake Utility Billing issues bills for the previous month of usage plus any additional fees, including deposits; generally by the 61 business day of the month Due Date: monthly date by which payment for all current bills is due; auto -draft activities occur on the due date (for both bank account withdrawal and credit card payments); generally between the 26`s and 28`s of each month Due Date +1 Day: late fees are assessed; notification of past due balance emailed to customer Billing Date +1 Month: monthly bill for previous month of usage plus assessed late fees issued to customer Due Date +1 Month +1 Day: additional late fees are assessed; notification of past due balance emailed to customer Billing Date +2 Months: monthly bill for previous month of usage plus assessed late fees issued to customer Billing Date +10 Weeks (Approximately): after the 2nd month of non-payment (on or about the 151 day of the month following the due date), a certified letter notification of past due balance and notice to cutoff service/lock meter mailed to customer Due Date +2 Months +1 Day: additional late fees are assessed; water meter is locked and service is cutoff Billing Date +14 Weeks (Approximately): after the 3' month of non-payment (on or about the 15' day of the month following the due date), a certified letter notification of past due balance and intent to turn over to collections mailed to customer Due Date +3 Months +1Day: collection penalty fee assessed; account referred to collections Commercial Billing Date: Town of Westlake Utility Billing issues bills for the previous month of usage plus any additional fees, including deposits; generally by the 6' business day of the month Due Date: monthly date by which payment for all current bills is due; auto -draft activities occur on the due date (for both bank account withdrawal and credit card payments); generally between the 26' and 28' of each month Due Date +1 Day: late fees are assessed; notification of past due balance emailed to customer Billing Date +1 Month: monthly bill for previous month of usage plus assessed late fees issued to customer Ordinance 998 —Attachment A Continued Billing Date +6 Weeks (Approximately): after one month of non-payment (on or about the 15`s day of the month following the due date), a certified letter notification of past due balance and notice of intent to cutoff service/lock meter Due Date +1 Month +1 Day: additional late fees are assessed; water meter is locked and service is cutoff; notification of past due balance emailed to customer Billing Date +2 Months: monthly bill for previous month of usage plus assessed late fees issued to customer Billing Date+10 Weeks (Approximately): after the 2nd month of non-payment (on or about the 151 day of the month following the due date), a certified letter notification of past due balance and intent to turn over to collections mailed to customer Due Date+2 Months +1 Day: collection penalty fee assessed; account referred to collections Temnorary Meters Billing Date: Town of Westlake Utility Billing issues bills for the previous month of usage plus any additional fees, including deposits; generally by the 6' business day of the month Due Date: monthly date by which payment for all current bills is due; auto -draft activities occur on the due date (for both bank account withdrawal and credit card payments); generally between the 26' and 28' of each month Due Date +1 Day: late fees are assessed; notification of past due balance emailed to customer Billing Date +1 Month: monthly bill for previous month of usage plus assessed late fees issued to customer Billing Date +6 Weeks (Approximately): after one month of non-payment (on or about the 151 day of the month following the due date), a certified letter notification of past due balance and notice of intent to cutoff service/lock meter and stop permits for active projects Due Date +1 Month +1 Day: additional late fees are assessed; notification of past due balance emailed to customer; meter is locked and service is cutoff; hold is issued on development activity Billing Date +2 Months: monthly bill for previous month of usage plus assessed late fees issued to customer Billing Date +10 Weeks (Approximately): after the 2' month of non-payment (on or about the 15' day), a certified letter notification of past due balance and notice to recover the meter and turn over to collections is mailed to customer Due Date +2 Months +1 Day: collection penalty fee assessed; account referred to collections; meter recovered The above process is for non -terminated accounts. Accounts closed prior to resolution of outstanding balances will be sent to collections. Ordinance 998, Attachment B lists the fee amounts for the events described above. Ordinance 998 —Attachment B The Town will assess the following fees to attempt to deter non-payment of utility bills and recoup costs for services rendered. Residential Late fees: 10% of the original past due balance; late fee is not calculated on outstanding balance inclusive of late fees previously assessed; maximum of 3 fees on a single unpaid month assessed before balance is turned over to collections Disconnection/Locking fee: $50; assessed when staff must disconnect service and lock the meter Reconnection/Unlocking fee: $50; assessed when balance is paid in full and service is restored by staff Collections Penalty fee: assessed when the account is turned over to collections and based on the amount outstanding and the amount charged by the Town's contracted collection agency Commercial Late fees: 10% of the original past due balance; late fee is not calculated on outstanding balance inclusive of late fees previously assessed or other fees listed in this schedule; maximum of 3 fees on a single unpaid month assessed before balance is turned over to collections Disconnection/Locking fee: $75; assessed when staff must disconnect service and lock the meter Reconnection/Unlocking fee: $75; assessed when balance is paid in full and service is restored by staff Collections Penalty fee: assessed when the account is turned over to collections and based on the amount outstanding and the amount charged by the Town's contracted collection agency Temporary Meters Late fees: 10% of the original past due balance; late fee is not calculated on outstanding balance inclusive of late fees previously assessed or other fees listed in this schedule; maximum of 3 fees on a single unpaid month assessed before balance is turned over to collections Disconnection/Locking fee: $150; assessed when staff must disconnect service and lock the meter Permit Hold fee: $50; assessed when the hold is placed Reconnection/Unlocking fee: $150; assessed when balance is paid in full and service is restored by staff; only assessed for locked meters, not for recovered meters Missing/Unrecoverable Meter: Meter Cost + 10%; assessed when staff is unable to recover the meter Collections Penalty fee: assessed when the account is turned over to collections and based on the amount outstanding and the amount charged by the Town's contracted collection agency Ordinance 998 —Attachment B continued The above fees will be assessed according to the schedule in Ordinance 998, Attachment A. A residential or commercial account will be allowed one late fee waiver per rolling 12 months, not to exceed 2 waivers in a rolling 36 month period. This waiver is separate from a leak adjustment, which is also allowed on residential or commercial accounts once per rolling 12 months, not to exceed 2 adjustments in a rolling 36 month period, and subject to documentation and Director of Finance approval. Account holders entering into a payment plan will be responsible for all fees listed above, as assessed.