Chapter 13.04 UTILITY FEES, CHARGES, BILLING AND COLLECTION

The city council will establish the fees, rates and charges for the city’s utilities by resolution in an amount reasonable and necessary to fund the administration, debt, planning, design, construction, operation, maintenance and repair of the city’s utility systems. (Ord. 15-05 § 2, 2015)

13.04.017 Application for service.

The following criteria must be met regarding application for utility service:

A. The city will not provide utility service without a signed application on a form provided by the city. If a customer is a tenant seeking utility service, the city may provide a copy of the application to the property owner, landlord or property manager.

B. Two or more parties who join to make application for service are jointly and individually liable, and will be sent a single billing.

C. Any person 18 years of age or older who receives utility services at a premises is liable for the services provided.

D. Contracts, other than applications, may be required prior to service where, in the opinion of the city, special circumstances exist.

E. If a premises is connected to the city utility system without application, the city will disconnect the premises. Before a new connection is made, the applicant must pay double the rate of the estimated charges for the unpaid services during the period of non-city-approved connection.

F. In no case will utility service be allowed until the customer has complied with the terms of this section and all appropriate fees and charges have been paid. (Ord. 15-05 § 2, 2015)

13.04.020 Deposit requirements.

A. Before the city will provide utility service to a new or discontinued service connection, the applicant for service must pay the required deposit and any other applicable fees. The city may require additional deposits for customers whose utility service has been shut off for failure to pay or who has had an account with a delinquent status for more than three continuous months.

B. The city will hold the deposit as a guarantee of payment for utility services and for protection of the city against damage to the service installation. Whenever the customer has timely paid bills for at least one year, or has otherwise established satisfactory credit in the municipality, the finance director, or the finance director’s designee, will waive or refund the customer’s deposit.

C. Refunds of the deposit to accounts that have established satisfactory credit will be applied to the account.

D. Refund of the deposit to accounts that have been terminated will be applied to the account, and the city will return the deposit less any outstanding balances and/or charges for damage to the system.

E. If the return of a deposit remains unclaimed for one year after termination of the service, it will be presumed abandoned. The city will report it and deliver it to the Division of State Lands, as provided in ORS Chapter 98. (Ord. 15-05 § 2, 2015)

13.04.060 Bulk water.

The city will make bulk water available at the discretion of the city manager, public works director or the director’s designee. Bulk water rates will be at twice the rate for residential customers. The customer may only use water from an authorized meter or designated fire hydrant provided by the public works department. (Ord. 15-05 § 2, 2015)

13.04.070 Reserved.

(Ord. 15-05 § 2, 2015)

13.04.080 Garden meters – Rates and charges.

Metered water from a garden meter will be charged at the current rate for the appropriate classification. Before receiving a garden meter, customers must pay the full amount of all installation charges, including all materials and labor for installation and connection to the water main by the city. Garden meters require a turn-on fee at the beginning of each water season, with the fee set by resolution. (Ord. 15-05 § 2, 2015)

13.04.090 Multi-use meters.

A. When two or more user classifications (residential, commercial, etc.) apply to the same meter use, the higher use rate for the utility service will apply to the services being received.

B. When two or more billing units are connected to the same meter, all utility service charges will be the responsibility of the property owner or property manager. All service charges will be billed and mailed to the address specified on the service application of the property owner or property manager. (Ord. 15-05 § 2, 2015)

13.04.100 Meter size changes.

A customer must pay all installation charges when a change in the size of a meter and service is required or requested. In addition, if the meter size is increased, the customer must pay the difference in system development charges for each meter size. If the replaced meter remains usable, a trade-in value will be credited on the installation charges. (Ord. 15-05 § 2, 2015)

13.04.110 Reserved.

(Ord. 15-05 § 2, 2015)

13.04.120 Outside-city rates.

User service charges for utility customers located outside the city limits will be billed at rates necessary to ensure the financial viability of the utility system as determined by a rate study and established by resolution. User service charges will include both base rate charges and metered usage charges. (Ord. 15-05 § 2, 2015)

13.04.130 Charges for restoration of service.

A. The city will charge a fee to a customer for restoration of utility service when service has been discontinued under the provisions of the utility code.

B. This charge does not apply to newly installed service connections unless the applicant has outstanding charges on another account.

C. The city may require a deposit, or require a larger deposit, before it will restore utility service based on prior payment history. (Ord. 15-05 § 2, 2015)

13.04.140 Construction – Engineering and inspection fees.

A. Engineering fees shall be paid by all persons requesting engineering services of the city for the construction of utility mains and appurtenances. Engineering services by the city are subject to staff availability. Fees are due and payable upon completion of the installation and prior to any connection permit approval.

B. Engineering fees are determined as follows:

1. Design services, six percent of total construction cost;

2. Contract administration services, three percent of total construction cost;

3. Construction inspection service, three percent of total construction cost.

C. The construction inspection services and fee is mandatory and not subject to request by the property owner. All construction costs must be verified from actual invoices and receipts when the city is not responsible for contract administration. (Ord. 15-05 § 2, 2015)

13.04.150 Construction – Bonding and insurance.

Bonding and insurance for utility construction will be as provided in the Silverton Municipal Code or the public works design standards adopted pursuant to Chapter 13.08 SMC. (Ord. 15-05 § 2, 2015)

13.04.160 Computation and collection of charges.

The finance department will collect all user service charges. User service charges are computed and payable as provided in the utility code. (Ord. 15-05 § 2, 2015)

13.04.170 Revenues – Deposit and use.

The finance director is directed to deposit in the appropriate fund all the gross revenues received from charges, rates and penalties collected for the use of the utility systems. The revenues deposited in the appropriate fund must be used exclusively for administration, planning, design, construction, improvements, operation, maintenance, debt payments and repair of the city’s utility systems. (Ord. 15-05 § 2, 2015)

13.04.180 Billing – Mailing address.

The city will mail bills for user service charges to the address specified on the application for services unless a different owner or customer has requested to the finance director that services be placed in their name and has agreed in writing to be responsible for the user service charges. When user charges are not related to water or sewer or are for a multi-use meter, the user service charges will be billed to the owner of the property. (Ord. 15-05 § 2, 2015)

13.04.190 Billing – Payment responsibility.

A. The property owner of record is ultimately responsible for payment of all charges prescribed in the utility code, regardless of any agreement the property owner may have with a third party and regardless of whether the customer’s bills were in a tenant’s name.

B. A customer who is a tenant continues to be responsible for delinquent utility charges until paid regardless of relocation to premises different from the premises at which the tenant accrued delinquent charges. The city may refuse to provide service to such tenant at any new address, and/or may terminate utility service until the delinquent bill is paid. The city may also pursue any action available under the laws of the city or state of Oregon to recover payment.

C. Multi-metered accounts must be in the property owner’s name. (Ord. 15-05 § 2, 2015)

13.04.200 Billing – Time and payment date.

A. Water and sewer service charges will include a base charge and a usage charge. Utility service shall be billed monthly.

B. Payment of all service charges is due and payable on the sixteenth day of the month following the month that services were billed.

C. The city will read meters at regular monthly intervals for the preparation of monthly bills and as required for the preparation of opening and closing and special bills. Meter readings will be averaged during any period when it is impossible or impractical to read meters on regular reading times.

D. Each meter on a customer’s premises will be billed separately, and readings of two or more meters will not be combined unless necessary for the city’s operating convenience. (Ord. 15-05 § 2, 2015)

13.04.210 Adjustment of accounts – Nonleaks.

A. A customer’s account will be adjusted if the customer receives less than one month of service. Customers receiving less than one month of service will be billed on a pro rata basis for base and fixed charges.

B. The city may bill the customer for utility services while the meter is not registering. The bill will be at an amount determined by the finance department to closely reflect what would have been billed had the meter been functioning. This may be based on the prior year’s usage during the same time period, if available, or the prior two months’ usage.

C. Adjustments will be in the form of credits on future bills unless the customer no longer has an active account with the city, in which case the city will issue a refund. Eligibility for an adjustment on an account will end 90 days after the date a final bill was issued for that account.

D. In no event may an adjustment be made for more than 12 consecutive months’ worth of billing. (Ord. 15-05 § 2, 2015)

13.04.212 Adjustments of accounts – No service provided.

If a customer pays for utility services not actually received as a result of the city’s error, the city will refund the amount paid for services not received, but only for a period not to exceed three years from the date the customer notified the city. (Ord. 15-05 § 2, 2015)

13.04.215 Adjustment of accounts – Leaks.

A. The city may adjust a customer’s utility billing to reduce charges resulting from a verified leak when:

1. The customer notifies the city in writing of the leak;

2. The customer makes a reasonable effort to locate the leak and initiates repairs within 30 days of discovering the leak;

3. The city verifies a leak exists, and the leak was caused by either a broken pipe or pipe connection;

4. The customer (or a contractor hired by the customer) fully repairs the leak within 30 days of notice to the city of the leak; and

5. The customer provides proof of the fixed leak to the city on a form and manner as prescribed by the finance department, including, but not limited to, receipts and other verification of repairs or costs.

B. If the city determines the customer meets the conditions in subsection (A) of this section, the city will adjust the billing by reducing the affected monthly usage by the excess over the user’s normal amount. Adjustments to the bill may not exceed two months from the date before the customer fixes the leak. The city will add a leak adjustment fee to the customer’s bill for any adjusted billings due to leaks.

C. Faulty valves or similar devices of the customer are not grounds for the adjustment of a utility bill. In addition, obvious neglect or improper installation by the customer is not grounds for adjustment of a utility billing.

D. The city will not adjust an account balance resulting from a leak if the same leak occurred within the last two years and the customer has already received an adjustment based on that leak. (Ord. 15-05 § 2, 2015)

13.04.220 Delinquent accounts.

A. Utility bills are delinquent if not paid by the due date. A late fee and monthly interest charge will be added to delinquent accounts. All fees and interest rates for delinquent utility accounts shall be set by resolution of the city council.

B. Water service for delinquent utility accounts may be turned off after the city provides the customer with written notice:

1. The city will send written notice to the occupant and person responsible for the account (if they are different) stating that water service will be discontinued unless the delinquent account balance is paid by 5:00 p.m. on the date specified in the delinquent notice. The city must mail the notice at least 10 business days before the shut off date. Water services will not be turned off after 3:00 p.m. nor will water services be turned off on Fridays, weekends, or the day before a regular holiday.

2. The notice shall indicate that the property owner is responsible for payment of any unpaid balance and that the unpaid balance will remain a lien against the premises as authorized by the utility code.

C. If the full payment of the delinquent amount is not made by the date designated on the turn-off notice, the water may be immediately turned off. At the time water service is turned off, a notice will be posted on the premises indicating the water service has been turned off and it may be restored by payment of the delinquent amount, a restoration fee, and/or an additional deposit as set forth in SMC 13.04.130.

D. Before restoration of service by the city, the delinquent bill and administrative fee must be paid, unless the finance director or director’s designee approves a deferred payment schedule.

E. Delinquent utility accounts totaling less than $25.00 will not be turned off unless circumstances indicate the service has been abandoned. (Ord. 19-04 § 1 (Exh. A), 2019; Ord. 15-05 § 2, 2015)

13.04.230 Liens.

Utility service charges become a lien against the premises served from and after the date of billing and entry on city records pertaining to the utility system. Such records are accessible for inspection by anyone interested to ascertain the amount of such charges against the property. Whenever a bill for utility service remains unpaid for 90 days after billing, the lien thereby created may be foreclosed in a manner provided for in Oregon Revised Statutes, or in any other manner provided for by law or by city ordinance. (Ord. 15-05 § 2, 2015)

13.04.240 Appeal procedures.

A. A utility customer who asserts that a fee or charge is unjust or inequitable as applied to the customer’s premises may make a written appeal to the city manager requesting a review of the fee or charge.

B. Staff will review the request to determine if it is substantiated or not. If the city manager denies the customer’s appeal, the customer may then appeal to the city council no later than 60 days after the city manager’s denial.

C. If the city council substantiates the request, the city will recompute the fee or charge for that customer based on the approved, revised flow. The council has the final responsibility for determining equitability of charges where special circumstances are found and for the adjusting of such charges in a consistent and equitable manner. (Ord. 15-05 § 2, 2015)

13.04.255 User classifications.

User classifications shall be comprised of, but not limited to, the following:

A. Residential.

1. Single-family (per living unit);

2. Multiple-family (per living unit);

3. Mobile home park (per living unit); and

4. Bed and breakfast; shall be considered one living unit, unless the property is clearly divided into multiple living units.

B. Commercial I.

1. Barbershops and beauty shops (each);

2. Car dealers (each);

3. Churches (each, without garbage disposal);

4. Department stores (each);

5. Drive-in restaurants (each, without garbage disposal);

6. Fraternal clubs (each, without food service);

7. Grocery stores (each, without meat cutting);

8. Hardware stores (each);

9. Hotels and motels (each);

10. Laundromats (each);

11. Light industrial (each, flow less than 25,000 gpd, BOD less than 400 mg/l, SS less than 450 mg/l);

12. Medical, dental and veterinary clinics (each);

13. Pharmacies (each);

14. Print shops (each);

15. Professional offices (each business);

16. Schools (each, without food preparation);

17. Service stations (each);

18. Taverns (each); without food service;

19. Warehouses (each); and

20. Travel trailer park (per living unit).

C. Commercial II.

1. Churches (each, with garbage disposal);

2. Drive-in restaurants (each, with garbage disposal);

3. Full-service restaurants and fraternal clubs (each, with food service, no garbage disposal, with grease trap); and

4. Institutions (each, hospitals, schools, nursing homes).

D. Commercial III.

1. Bakeries (each);

2. Full-service restaurants, taverns, and fraternal clubs (each, with food service, with garbage disposal, without grease trap);

3. Grocery stores (each, with meat cutting and/or bakery); and

4. Meat markets (each).

E. Commercial IV.

1. Septic haulers (each).

F. Industrial.

1. Any facility that discharges effluent to the sanitary sewer for any 24-hour period which equals or exceeds any one of the following criteria:

a. Flow greater than 25,000 gpd;

b. BOD greater than 1,500 mg/l;

c. SS greater than 1,500 mg/l;

d. pH greater than 9.0;

e. pH less than 6.0.

G. Where two or more user classifications apply to the same water meter usage, then the higher usage rate shall apply. (Ord. 16-02 § 1, 2016)