Chapter 3.95
UTILITY BILLING
Sections:
3.95.040 Application – Account initiation fee.
3.95.050 Account to be initiated by property owner or agent.
3.95.090 Hearing prior to utility service turn-off.
3.95.100 Water cut-offs – Lien enforcement.
3.95.110 Disconnect water service – Charge – Unpaid – Payment requisite for reconnect.
3.95.120 Turning water on – Charges.
3.95.130 Utility connection charges – Waiver for low-income persons.
3.95.140 Security deposits for service and late fees.
3.95.150 Billing error appeals.
3.95.160 NSF check – Fee for collection.
3.95.170 Delinquency constitutes a lien.
Prior legislation: Ords. 403 and 438.
3.95.010 Policy and scope.
(1) The policy of the city is to apply standardized utility billing and collection procedures to simplify customer and administrative response to the process involved.
(2) This chapter shall apply to the water, stormwater, sewer and solid waste utilities. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 2, 2003).
3.95.020 Definitions.
(1) “Finance director” means the chief financial officer of the city of Oak Harbor.
(2) “Lien” is the lien for utilities authorized by state law. For the water utility, the lien statutes are RCW 35.21.290 and 35.21.300. For the solid waste utility, the lien statutes are RCW 35.21.140 and 35.21.150. For the stormwater utility and sewer utility, the lien statutes are RCW 35.67.200 through 35.67.290.
(3) “Supervisor of the water department” means the public works director or his or her designee.
(4) “Utility” refers to any of the city of Oak Harbor utilities which include stormwater utility (rates and regulations which are codified under OHMC Title 12), sewer utility (rates and regulations which are codified in OHMC Title 14), water utility (rates and regulations which are codified under OHMC Title 13) and the solid waste utility (rates and regulations which are codified in OHMC Title 15). (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 3, 2003).
3.95.040 Application – Account initiation fee.
Application to have utility accounts initiated shall be made during normal working hours in writing on forms directed by the finance director. An account initiation fee per the master fee schedule adopted by resolution of the city council shall be paid in advance by each applicant for utility service before the utility service is provided. The account initiation fee shall be nonrefundable and nontransferable. The account initiation fee shall only apply to new accounts and not existing accounts within the city limits of Oak Harbor. (Ord. 1732 § 1, 2015; Ord. 1696 § 24, 2014; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 5, 2003; Ord. 1306 § 2, 2002; Ord. 1292 § 2, 2001; Ord. 1240 § 1, 2000; Ord. 1228 § 2, 2000; Ord. 1201 § 2, 1999; Ord. 1192 § 2, 1999; Ord. 973 § 1, 1994. Formerly 13.32.090).
3.95.050 Account to be initiated by property owner or agent.
(1) Utility accounts shall be opened by and billed to the owner of the property to which the services are rendered or to such property owner’s designated agent. Utility accounts for water and sanitary sewer service must be based upon service to at least one meter. No account may be opened for service to a customer unless that customer is responsible for all service to the water meter applicable to that account.
(2) A “designated agent” may be a tenant, property manager, or other person designated in writing by the property owner as the property owner’s agent for all purposes related to the utility account. The finance director shall prescribe the requisite form to be used by property owners wishing to designate an agent pursuant to this section. All owners of property, however, shall remain ultimately and legally liable for the payment of any and all utility charges against the premises to which such utility service has been furnished or is available to the maximum extent allowed by law.
(3) Tenant Accounts. In the event that a tenant meeting the requirements of RCW 35.21.217 requests to open a new account due to nonpayment of the existing account by the landlord, the tenant shall be allowed to open such an account; provided, that the tenant agrees to pay all charges owing which accrued during the tenant’s occupancy of the premises. In no event shall an account be opened for service unless the customer is responsible for all service to the water meter applicable to that account. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 6, 2003; Ord. 1269 § 7, 2001; Ord. 1034 § 1, 1996; Ord. 955 § 1, 1993; Ord. 808 § 1, 1988. Formerly 15.04.070).
3.95.060 Payments applied.
Payments received by the city for utility service shall be applied in the following order:
(1) Bank service charges;
(2) Outstanding late charges;
(3) Solid waste charges;
(4) Stormwater utility charges;
(5) Sanitary sewer charges;
(6) Water charges. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 7, 2003; Ord. 1130 § 7, 1998; Ord. 973 § 1, 1994. Formerly 13.32.093).
3.95.070 Charges – Due date.
Utility service charges shall be billed monthly for services provided during the previous billing period. Bills shall be due upon billing and payable not later than the eighteenth day of the calendar month following the calendar month of mailing. Thereafter the utility service charges shall become delinquent. Sewer, stormwater and solid waste utility charges shall bear interest at the rate of eight percent per annum, prorated monthly, and water utility charges shall bear interest at the rate of eight percent per annum. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 8, 2003; Ord. 1192 § 3, 1999; Ord. 973 § 1, 1994. Formerly 13.32.100).
3.95.080 Delinquency.
If the account is not paid when due, the city shall assess a fee that shall be in the master fee schedule adopted by resolution of the city council for delinquency payment and give notice that the utility account is delinquent. In addition, the notice shall:
(1) Set a date for water turn-off not less than seven days after giving of notice; and
(2) Specify that service will be shut off unless payment in full is made to the city within seven days; and
(3) Advise that a hearing may be requested by contacting the finance department prior to the scheduled date for water turn-off; and
(4) Provide the address and telephone number of the finance department; and
(5) Advise that an additional charge per the master fee schedule adopted by resolution of the city council will be added to the bill if water cut-off or meter removal is implemented as a charge for cutting off the water and/or meter removal; and
(6) Provide that service will not be shut off while a hearing is pending; and
(7) Allow late fee to be waived once every five years if requested by customer. The utility(s) will be assessed (charged) the cost of the late fees waived. (Ord. 1901 § 1, 2020; Ord. 1732 § 1, 2015; Ord. 1696 § 25, 2014; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 9, 2003; Ord. 1172 § 1, 1999; Ord. 973 § 1, 1994. Formerly 13.32.110).
3.95.090 Hearing prior to utility service turn-off.
Upon customer request of the finance director or his/her designee, the customer shall be given the opportunity to explain why the utility service should not be turned off. Service will not be shut off while this hearing is pending. The finance director or his/her designee shall set the hearing date to be held within three days of the customer’s request for a hearing. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 10, 2003; Ord. 973 § 1, 1994. Formerly 13.32.130).
3.95.100 Water cut-offs – Lien enforcement.
(1) Sewer and Stormwater Lien. As an alternative method to enforce the lien for nonpayment of sewer or stormwater services or both, the city may cut off water service and refuse to provide water service to premises which were furnished water after the charges have become delinquent and unpaid; provided, that unless the lien is filed with the Island County auditor, the lien shall not be for more than six months’ service.
(2) Water Lien. As a means of enforcement, the lien for water services supplied by the city may cut off and refuse to supply water to the premises which were furnished with the water services after the charges have become delinquent and unpaid; provided, that the lien may not be for more than four months of water services.
(3) The fee charged for turning off water shall be per the master fee schedule adopted by resolution of the city council and shall be assessed by 5:00 p.m. the day before the water is turned off. (Ord. 1732 § 1, 2015; Ord. 1696 § 26, 2014; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 11, 2003).
3.95.110 Disconnect water service – Charge – Unpaid – Payment requisite for reconnect.
If the service has been disconnected because the water, sewer or stormwater bill has not been paid, the water service shall not be turned on until the delinquent charges or the applicable lien or liens have been paid. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 12, 2003; Ord. 973 § 1, 1994. Formerly 13.32.120).
3.95.120 Turning water on – Charges.
No water from the city water supply shall be turned on for service into any premises by any person except the supervisor of the water department or his/her designee. A fee per the master fee schedule adopted by resolution of the city council shall be charged for turning water on for service. This charge shall not be assessed when turning water on for purposes of account initiation pursuant to OHMC 3.95.040. The charge for turning on the water after 5:00 p.m. on any work day or on weekends, except for emergency responses, shall be in the master fee schedule adopted by resolution of the city council. (Ord. 1732 § 1, 2015; Ord. 1696 § 27, 2014; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 13, 2003; Ord. 973 § 1, 1994. Formerly 13.32.095).
3.95.130 Utility connection charges – Waiver for low-income persons.
The finance director may waive connection charges for properties purchased by low-income persons from organizations exempt from tax under Section 501(c)(3) of the federal Internal Revenue Code as amended prior to July 23, 1995. Waivers of connection charges for the same class of utility service must be uniformly applied to all qualified property. Nothing in this section authorizes the impairment of a contract. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 14, 2003).
3.95.140 Security deposits for service and late fees.
(1) Security Deposit for Continuing Service. The finance director may order a deposit as a condition of continuing or restoring any utility service where it appears, in his/her discretion, there is a risk of nonpayment or underpayment or as permitted by 11 U.S.C. 366 or any other applicable law. The deposit shall be a reasonable amount, but in no case less than four months’ established billing. The security deposit will be made by the account holder. The security deposit will not be released until the account of the account holder is closed and the account balance is paid in full. The security deposit funds may be applied to the outstanding balance at the time the account is closed with the remaining funds released to the account holder.
(2) When a utility deposit required under this section remains unpaid for more than 30 days after giving notice of the same, the city may terminate utility service for the utility requiring deposit including turning off water so long as notice and availability of hearing is provided as per this chapter. (Ord. 1901 § 2, 2020; Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 15, 2003; Ord. 1269 § 5, 2001; Ord. 1034 § 1, 1996; Ord. 808 § 1, 1988. Formerly 15.04.050).
3.95.150 Billing error appeals.
(1) Time for Filing. A utility account holder objecting to any utility service charge billing may request a hearing before the city administrator by filing a written request with the finance director within 60 days of the first service date on the challenged billing.
(2) Form of Appeal. The request shall set forth the name, address and phone number of the person requesting the hearing; the nature of the service charges at issue, such as water, sewer, stormwater or solid waste; the amount of the billing; the dates of service; and the basis for the objection.
(3) Setting of Hearing Date. The city administrator or his/her designee shall set a hearing date and time within two weeks of the date of receipt of the request for a hearing, and shall advise the person requesting the hearing of the hearing date, time and location using the address and telephone information provided by the requestor.
(4) Failure to Appear. Failure of the requestor to appear for this hearing without prior notice and excuse shall constitute a waiver of the hearing.
(5) Format of the Hearing. At the hearing, the requestor shall have the opportunity to present evidence and argument in support of requestor’s objections to the utility service charge billing.
(6) Determination of City Administrator. The city administrator shall consider the evidence and argument submitted by the requestor and make a determination on requestor’s challenge in writing within 10 days.
(7) Time for Appeal from City Administrator Determination. The determination of the city administrator shall be final unless appealed within five business days of the date of mailing the determination to the address provided by the requestor above.
(8) Appeals to Hearing Examiner. Appeals from the determination of the city administrator shall be to the hearing examiner. The procedures of OHMC 1.24.020 through 1.24.110 shall apply to these appeals.
(9) Decision of Hearing Examiner Final. The decision of the hearing examiner shall be final unless appealed to a court of competent jurisdiction within 30 days of issuance of the hearing examiner’s decision.
(10) Amount Owing. In the event that the account holder’s appeal to the hearing examiner results in a determination that an amount is owing to the city, the amount must be paid within three days of the date of the final decision. (Ord. 1732 § 1, 2015; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 17, 2003. Formerly 3.95.160).
3.95.160 NSF check – Fee for collection.
The fee charged for a nonsufficient fund check (NSF check) shall be per the master fee schedule adopted by resolution of the city council, or the amount of the NSF check, whichever is less. In no case will the NSF fee charged for a NSF check be less than the amount charged to the city by the returning bank. (Ord. 1732 § 1, 2015; Ord. 1696 § 28, 2014; Ord. 1598 § 1, 2011; Ord. 1579 § 1, 2010; Ord. 1348 § 18, 2003. Formerly 3.95.170).
3.95.170 Delinquency constitutes a lien.
All charges for water service installation and sewer installation and all monthly service rates provided for in this chapter, together with penalties and interest thereon, when unpaid and delinquent shall be a lien upon the property to which the services are rendered superior to all other liens and encumbrances whatsoever except for general taxes and local special assessments. Enforcement of such lien or liens shall be in the manner provided by law. (Ord. 1732 § 1, 2015).