HomeMy WebLinkAbout3295 Amending AMC 14.02 Utility Systems - Customer Accounting Policies ORDINANCE NO. 3295
AN ORDINANCE AMENDING AMC CHAPTER 14.02 UTILITY
SYSTEMS—CUSTOMER ACCOUNTING POLICIES
Annotated to show deletions and additions to the Ashland Municipal Code sections being
modified. Deletions are bold lined through, and additions are bold underlined.
WHEREAS, Article 2. Section I of the Ashland City Charter provides:
Powers of the City. The City shall have all powers which the constitutions, statutes, and
common law of the United States and of this State expressly or impliedly grant or allow
municipalities, as fully as though this Charter specifically enumerated each of those
powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto,
shall possess all powers hereinafter specifically granted. All the authority thereof shall
have perpetual succession.
WHEREAS,
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1.
14.02.010 Service connection and Customer Obligations
A.Any person or legal entity seekine electric,water, or sewer service from the City
must submit a completed application on the City's form and provide any additional
information the City requires. By applying, the applicant agrees to comply with the
City's rates, rules, and rel4ulations for utility services.
B. The City will process and accept applications according to its policies,which may
require security deposits, letters of credit, or other assurances. Utility charl4es are
payable in accordance with the City's policies and billing notices.
C. Notices under this chapter shall be given in the manner the customer consented to
on the application; for example, an applicant who elects electronic notification
consents to receive notices electronically, and an applicant who elects U.S. first-class
mail consents to receive notices sent by U.S. first-class mail to the address on file.
14.02.020 Assistance Programs
As provided by resolution, and as approved through the City's budget process, the City
may offer assistance plans to customers who meet the eligibility requirements adopted by
the City. Customers must aWy with the Utility Billing office online or in person as
outlined on the City's website.
14.02.030 Delinquencies
ORDINANCE NO. 3295 Page 1 of 8
A. All charges for utility services shall be due and payable by the date specified on the
billing statement, includinIZ any amounts due under any repayment al4reement
entered into between the customer and the City (the "Due Date").
B. At least 10 days prior to shutting off utility services, the Citv shall notify the
customer in the manner set forth in Section 14.02.010(C) (the "Shutoff Notice"), that
the account is delinquent and utility services will be disconnected after the date set
forth in the Shutoff Notice,
C. If the amount due is not paid before the date set forth in the Shutoff Notice, the City
shall not be oblilZated to provide any further notice prior to disconnecting the utility
service and shall not be liable to the customer for claims arisinJ4 out of the shutoff of
utility services.
D. Any customer whose utility service has been disconnected shall not have their utility
service reinstated until the full amount of the delinquent utilities has been paid or a
repayment contract entered into between the customer and the City. In addition, the
customer shall pay a service fee as determined by Council resolution for failure to
pay, reinstatement, and/or service connection.
E. The City will not terminate utility services of a customer for failure to pay for a
utility services at another address that has a separate utility account.
F. A monthly penalty as determined by Council resolution will be charged on all
utility accounts that are unpaid past the Due Date with a balance owed in excess of
$500.00.
14.02.040 Restrictions on Residential Terminations.
A. Notwithstanding Section 14.02.030, the City shall not disconnect a residential utility
service if the customer submits certification from a qualified medical professional
that disconnection would significantly endanger the physical health of the customer
or a member of the customer's household. For the purposes of this rule, "Qualified
medical professional" means a licensed physician, nurse-practitioner, or physician's
assistant authorized to dial4nose and treat the medical condition described without
direct supervision by a physician. Written certification must include:
a. The name of the person to whom the certificate applies and relationship to
the customer;
b. A complete description of the health conditions;
c. An explanation of how the person's health will be significantly endanIzered
by terminating the service;
d. A statement indicating how Iona the health condition is expected to last;
c. A statement specifying the particular type of utility service required (for
example' electricity for respirator); and
f. The sil4nature of the qualified medical professional prescribing medical care.
ORDINANCE NO. 3295 Page 2 of 8
B. If a medical certificate is not submitted in compliance with City policy, the City may
disconnect service after providing a 10-day notice to the customer.
C. An emergency medical certificate shall he valid only for the length of time the health
endangerment is certified to exist, but no longer than six months without renewal
for certificates specifying illnesses identified as chronic by a "Qualified Medical
Professional" as defined in this rule.
D. A customer submitting a medical certificate is not excused from paying for their
utility services:
a. Customers are required to enter into a written time-payment agreement with
the City when an overdue balance exists;
b. When financial hardship can be shown, a customer with a medical certificate
may renegotiate the terms of a time-payment agreement with the City; and
C. Time-payment arrangements in effect when a medical certificate terminates
remain in effect for the balance then owing. If a customer fails to pay charges
incurred after the certificate terminates, standard City payment plan
provisions shall apply to payment of the arrearage incurred after the medical
certificate expires. The terms of the medical certificate time-payment plan
continue to apply to the arrearaae accrued during the disability.
E. If a medical certificate customer fails to enter into a written time-payment
agreement within 20 days of filing the certificate, or to abide by its terms, the City
shall notify the customer of its intent to disconnect service and the reason for the
disconnection. The City may disconnect service after providing a notice 20 days in
advance of disconnection for nonpayment, or 10 days before disconnection for
failure to enter into a written time-payment agreement. In accordance with AMC
2.30, a customer may request a hearinj4 thereafter be held to determine whether the
City should be permitted to disconnect service to the customer.
F. The City may verify
the accuracy of a medical certificate. If the City believes a
customer does not qualify, or no longer qualifies for a medical certificate, the City
may disconnect service of the customer after providing a notice 10 days in advance
of disconnection. In accordance with AMC 2.30, a customer may request a hearing
thereafter be held to determine whether the City should be permitted to disconnect
service to the customer.
14.02.050 Appeal of Adverse Utility Service Decision.
A. A customer who disputes a utility bill or its disconnection must first exhaust all
remedies available under the utility and billing office's policies (e.g. payment plan
options) before filing an appeal. If those remedies fail and the City seeks to
disconnect the utility services or the customer and City have not otherwise resolved
the dispute related to the utility bill, the customer may thereafter submit an
administrative appeal to the Hearings Officer as provided in AMC 2.30. In the event
ORDINANCE NO. 3295 Page 3 of 8
of a Shutoff Notice, the appeal must be submitted within 10 days after the issuance
of the Shutoff Notice.
B. After the administrative appeal process, the Hearings Officer shall make written
findings, includinIZ any findings regarding the amount(s) owed for unpaid utility
services, fines, fees, and the applicable disconnection timeline.
C. If an appeal has been properly and timely submitted, disconnection of utility
services will be stayed pending the Hearings Officer's final determination.
A. "itiai Applieation.
• Any person, firm oir eorporation desiring eleetrie,
rates, wateir and/or s from the
City must submit an applieation through an online form provided by the City whereby th-e
applieaut agfees to abide by the
telephone,rules and regulations of the City,
2. The applieant must eomplete and submit the serviee applieation in full and provide any
additional information as needed for the applieation to be validly eonsidered.
in pefson,
or at the diseretion of the Utility Billill
offiee7by email or written notiee,
C. The applieation is- I luest for-serviee and does not in itself bind the City to
sefve exeept under reasonable no more than one (1) delinqueney.
nor- does it bind the eustomer to take sefviee; bu
the eustomer-will be required to pay monthly minimum eharges
aeeording to the applieable rate.
D. No applieation for eleetfie, 7
serviee shall be fumished to any 7 7
moire, fee of eharge
whieh has been due to the City for- a pefiod of thirty (30) days or- until sueh bill,
or eharge has been paid in full.
A. The City offers assistanee plans to eustomers who may have diffieulty paying thei.r-
utility bill. Eligibility requirements exist and eustomeirs must apply with the Utility Billing
fee
pr-0eess. Efigi.1-1--flity requifements are determined by funding levels and eurfent utility rate
studies. The I Itil-l-, Billing 7 with buidanee from 7
manage assistanee programs aeeofdingly and in eonfor-mitywith other-City piroeeduires.
C. Priority of the shall implement and
households,ineome
and the pr-oeess of qualifieation shall be equita
14.02_020 Establishment ent of Credit
address,A. A eustomer shall establish eredit with the City by depositing an amount equal to one
and one half(11/2) times the average monthly bill for the serviee
deposit, rounded to the
nearest$5.00. A eusto - .fed to pay the deposit within ten (10) days of serviee
starting. if the eusto v does nott tender the the aeeount will be billed aeeordingly,
ORDINANCE NO. 3295 Page 4 of 8
and the serviee will be subjeet to diseonneet if the deposit is not paid. For ne", serviees, the
Utility Serviees Division shall estimate the aver age monthly bill. A third party, other than
the eustomer, may be permitted to post the required deposit, in whieh ease the eustome
shall be deemed to have established eredit as hereinafter provided. After a satisfaetofy
payment reeord of ten (10) eonseeutive months with no moire than one (1) delinqueney, the
deposit shall be refunded to the aeeount holder,
B. _
Vl<.Ull by providing.� U letter of eredit from another utility,
minimum of ten (10) eonseeutive months within the last year. The letter of efedit from the
utility eompany must furnish the folio-wing information:
1 Address tress (or addresses) served by the utility for this a ,s+.,.,..,,.
• Length,
type (fesidential/eommereial), and time period at above loeation(s).
3.Number of past due mailer ,,.bees i the tart
C. A eustomer to whom a deposit has been refunded, or to whom a letter of eredit was
aeeepted in lieu of a deposit, and who beeomes delinquent may be required to reestablish
A of this seetion Residential and
be used as eredit refeirenee for the other type of serviee. Onee a eustomer has established
erediteommer-eial eredit shall be established separately and eredit for one type of serviee will n
a deposit will not be required for additional loeations as long as good eredi
maintained. The City shall not terminate residential aeeounts solely for-failure to
.establish ..,.edit , ,,der subse,.+; C of this seet;. ,,
14.02.030 Bills ante
All bills are due and p I I r-eeeipt. if bills are not paid by the next billing date, a
1402.040 nshall bethat s ;11 be dise,,.,...,,.ted;the bills are not paid by the date speeified.
given
14•n��40 Notiee of Beknqueney
The City will give written notiee to the eustomer before termination of sen,iee. The notiee
;11 eontaim
A. R l-1VNl v1ijJ
lanation of the reasons of termination.
-B Th.. . ate of the proposed+•„..,,;.anon which shall be not less than seven (7) or more
L• 111v UNII. Vl ill
than ten (10) days from the date of mailing the notiee as outlined in AMC
1 02 ncn
C. A statement advising the eustomer of the appeal proeess, as outlined in AAlC— 1 n2 non
D. A statement that no termination will take plaee if the eustomer has obtained, prior to
the proposed date of termination, a written statement from a lieensed physieian of! a publie
or private ageney providing physieal or mental health eare, that the terminationwould
signifieantty endanger the physieal health of a residential etistomer or any members of the
eustomer's household. The eustomer shall also be advised that sueh eer-tifieation must be
renewed in writing every thirty (30) days thereafter-, unless the eertifiention states that the
eondition is ehronie, in whieh ease the eeirtifieation must be renewed annualty. Any
eustomer filing sueh a eertifleation shall also be advised that they must enter into an
arrangement with the City to pay any past due bills that aeefue while the eeirtifieate is in
Meet.
Failure to adhere to the payment arrangement may result in diseonneetion of s
regardless of whether or not a valid physieian eertifieate is in plaee.
ORDINANCE NO. 3295 Page 5 of 8
E. A statement that the City will not be liable for any less ineufr-ed beeause of a disconnee
for-nonpayment of a utility bill.
14.n� Nottiee of Delinqueney Sen,iee vzf-Notiec
The notiee of proposed termination shall be mailed by fifst elass mail to the last lmown
address of the eustomer- and to any third party designated by the eustomer-pursuant to
Seetion 14.02.070 to iFeeeive notiees. Sen,iee shall be deemed eomplete as of the date of the
mailing.
A. At least seventy two (72) houirs pirioF to the proposed termination of residential ,
person,the City shall attempt in good faith to eontaet the person of the residenee and
their- designated representative in inform them that temination is 7
available,explain the alter-natives and assistanee
and determine the ireason of Feasons th-e
eustomer has not responded to the notiee of proposed termination.
B. immediately pfior-to termination of residential serviee, the City shall attempt in good
faith to make a pefsonal eontaet with the above per-sons and advise them of the proposed
aetion..
termination, foir any 7
City,the City shall delay the termination of serviee until it
has appropriately notified the Department of Human Serviees. in sueh ease the etistome
shall have an additional five (5) business days beyond the teirmination date stated in the
notiee to ireaeh agreement with the
or to appeal the matter aeeoirding to A
1,1 2 non before 1,e „ she may be terminated-.
seetion shall be doeumented. if personal eontaets eannot be made, notiees shall be left in a
D. Pfoeeduires used and eff-or-ts made by a utility to make the personal eontaets under this
stating that serviee will be teirminated in the ease of the
14.02.070 Designation of Third -Party to Reeeive Notiee
The City will offer-its eustomeirs the option to designate a thiird party to reeeive the notiee
of termination set forth in Seetion-.I.A-Wl-flAn Notifleation of this option shall be made upon
initiation of
7
the City will infofm residential eustomer-s who eannot pay
theiir bills of the names and telephone numbers of appropfiate units Within the State
Department of Human Serviees or- other- soeial serviee ageneies whieh may help the
eustomer deter-mine what 7 state or private aid may be available to that .
14.02.090 Appeal of Termination Aetion
A eustomef may appeal a proposed termination to the Utility Appeals Committee. An
appeal shall entail the following steps�
A. Affeal Form The eustomeir must submit a GGRequest to Appeal 77
form to
the City Reeorder. The "Request to Appeal Termination" 4',,,.,,, shall be loeated ,,ithe,.
online on the City's website or by request to the City Reeor-deir.
ORDINANCE NO. 3295 Page 6 of 8
B. Review- Upon reeeipt of the ccRequest to Appeal Termination"
form, the Utility Appeals
Committee will-ireview the Request to Appeal ermination"fofm and provid
standards outlined i�. 24�W.
1 The Utility Appeals Committee shall be appointed by the Ti'inannn Direetor and shall
1. The VL111L� A�11 �N1J VV1111111LLVV Jll Nll VLi uN
inelude one (1) staff per-son from the Utility Billing Division, one (1) staff person from the
Water- Vl 1J1V\.Ll ll. L1v1J1V11' L111U one `1l Division Manager- or Department Head. One (1)
11V„ .Ming Coolm—pill Liaison mayalso sib on the a mitten
C. Affeal of Finanee Direetor Deeision. Under the administrative appeals proeess outlined
inrr�r�
.. AMC
Finanee f
s deeision with the City Reeor-der, After the administrative app
proeess,the Hearings Offieef shall make written findings on termination,
fines, to inelude any
findings regarding fees,
and any possible termination timeline,
D. Xo A...,ea if the n stomer does not file n administrative the n stomer has
L. 11V 11�/1/GLLL. 11 LllV I.UJLVLl Vl UVVJ 11VL lllli Ll 11 appeal,
four-teen (14) days, f-Fom the date of the Finanee Direetoi!'s notiee, to eomply with thee
Finanee Dimetoir's deeision or-be subjeet to termination at the eonelusion of the four-teen
r/
\14) days.
E. Ufility Stay Pending,Weat
11 If� equest to Appeal Termination" form is i eeeYv"ed before ser- iee has beeft
terminated, termination will be stayed pending either a final determination by the Finan
Dir-eetor or the Hearings Offieef.
lr. Any I.UJLVlll Vl w11VJli Jlil vl\.v has Velill diseonneeted shall not have their sen,ie-e
"Requestreinstated until the full amount of the delinquent utilities has been paid of an on!
Termination"
form has been submitted and proeessed in aeeoirdanee
nz A with AI
C I A t1l flAtl if sueh appeal request had not already been submitted and pmeessed
for the said serviee aeeount. The eustomer-shall pay a serviee fee to be fixed by Couneill
14.02.1 nn n stfietions on Residential Terminations
A. Mffsieal Disab"es-. The City will not terminate serviee of a residential eustom er o
refuse to restore sen,iee on request, if the City has been advised in writing by a lieensed
physieian, lth >
termination of serviee would signifleantly endanger the physieal health of the eustomer o
any member- of the eustomer-'s household and a eer-tifieation tinder Seetion 1 A /17 flAfl Dis in
eertifleation is in effeei
Residential serviee shall not be terminated on, or the d
to, a weekend or holiday-.
C. Aeeounts Xot Related to Residential Serviee. The City will not tefminate ]residential
sepviee of a eustomer for-failure to pay for-a nonresidential sefviee at anothelF effeet. However, the City msey!ves the right to install a serviee limiter type meteir while stieh
nor-
shall serviee be terminated for- a nonresidential serviee for failure to pay for a f!esidential
serviee at another addiress.
14.02.110 Requirements for Restoration of Serviee
ORDINANCE NO. 3295 Page 7 of 8
Department;eustomer-'s serviee has been property terminated under-the above polieies, the City shall
not be mqttired to restore or-pf!ovide sefwiee at the same or any other loeation at-whieh-iffie,
eustomer resides without payment in full of any over-due amounts, together-with a-By
deposits and meonneetion eharges authorized in this seetion. If ser-,4ee has been
with the delinquent aeeount if the r-eeonneeti ted to be made dur4ng r-egula
wor-king hours of the Fleetr-ie or an after-hours eharge as speeified -
resolution during other honr-s or-on weekends or-holidays, before serviee is restor-ed. Any
nonpayment will be regarded as a new eustomer-, and a new deposit shall be required
before serviee is r-estored.
14.02.120 Penalty on Delinquent Aeeounts
A penalty of one and one half per-eent (11/20%) per-month may be eharged on the
delinquent portion of all titility aeeounts in exeess of$500.00 or-more, beginning on the
thirtieth day following the original due date established in Seetion 1 02
�anzn
SECTION 2. Severability. Each section of this ordinance, and any part thereof, is severable,
and if any part of this ordinance is held invalid by a court of competent jurisdiction,the
remainder of this ordinance shall remain in full force and effect.
SECTION 3. Codification. Provisions of this Ordinance shall be incorporated in the City Code
and the word "ordinance"may be changed to "code", "article", "section", "chapter" or another
word, and the sections of this Ordinance may be renumbered, or re-lettered, provided however
that any Whereas clauses and boilerplate provisions (i.e. Sections 3-5)need not be codified and
the City Recorder is authorized to correct any cross-references and any typographical errors.
The foregoing ordinance was first read by title only in accordance with Article X, Section
2(C) of the City Charter on the _day of_�//'�i,�/'/; (,(� , 2026, and duly
PASSED and ADOPTED this �day of (�J 2026.
PASSED by the City Council t is day of �/� , , 2026.
ATTEST: Aid
Alissa olo zindd,rity Recorder
SIGNED and APPROVED this _day of LILn Z , 2026.
Tonya Graham, Mayor
Reviewe o form:
4ti , City Attorney
0VItANCE NO. 3295 Page 8 of 8