Explanation
BACKGROUND: The purpose of this request to amend provisions of Columbus City Code Section 1105.045 (A), (D) and (E) is twofold. First, to improve the City's ability to collect unpaid overdue water charges. This amendment strengthens the authority to certify unpaid overdue invoices for services provided by the Division of Water to the auditor of the county in which the property is located. These unpaid charges will then become a lien against the property. This recommended change will allow unpaid water service charges to be certified the same as unpaid sewer service charges. In 2004 $935,400 was recovered through this certification process and deposited into the sanitary sewer enterprise fund. In the same year $667,800 was lost as uncollectible water charges. If these water charges could have been certified it is estimated that over 90% or $601,000 would have been recovered and deposited to the water enterprise fund. This lost revenue results in higher than necessary rates for all customers of the Division of Water. Second these amendments will allow tenants to open a water account more easily.
FISCAL IMPACT: It is estimated that revenue received by the water enterprise fund will be increased by at least $600,000 annually.
Title
To amend Section 1105 of the Columbus City Codes, 1959, as it relates to collection of overdue charges for provision of services to customers of the Division of Water, and as it relates to tenant accounts; and to repeal the existing section being amended.
Body
WHEREAS, It is necessary to establish within Columbus City Codes the authority to certify unpaid charges for provision of services to the customers of the Division of Water to the auditor of the county in which property is located, and
WHEREAS, Certification of unpaid charges is estimated to recover over $600,000.00 in 2006 for the Water Enterprise Fund; and
WHEREAS, the City wants to allow legitimate tenants to directly contract with the City for water service, now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Section 1105.045 (A), (D) and (E) of the Columbus City Codes, 1959, is hereby amended to read as follows:
1105.045 Unpaid charges a lien--Owner liable.
A. Each water charge charged under or pursuant to Chapter 1105, Columbus City Codes, is made a lien upon the corresponding lot, parcel of land, building or premises served by a connection to the water system of the city, and if the same is not paid within sixty (60) days after it becomes due and payable, it shall be certified to the auditor of Franklin County, Ohio, who shall place the certified amount on the real property tax list and duplicate of the property served by the connection. A penalty charge of ten (10) percent on the amount that is due and payable shall be added to the certified amount, plus an administrative charge for handling as specified in Section 1105.09. The total certified amount shall be collected as other taxes are collected. The city shall provide the owner of property with written notice of the impending certification at least thirty (30) days prior to the certification. For any procedure not specified in this section, refer to Section 743.04 of the Ohio Revised Code.
A. Each water charge rendered under or pursuant to this chapter is hereby made a lien upon the corresponding lot, parcel of land, building or premises served by a connection to the water distribution system of the city, and, if the same is not paid within ninety (90) days after it shall be due and payable, it shall be certified to the auditor of the county in which the property is located, who shall place the same on the tax duplicate of said county with the interest and penalties allowed by law and be collected as other taxes are collected.
D. The division will directly bill a tenant for water and sewer service under either of the following conditions: (1) if the property owner, or authorized agent of the property owner, along with the tenant, sign a written agreement authorizing direct billing of the tenant; or (2) if the tenant provides adequate evidence of a rental agreement for the property. In either case, Once a written agreement is signed, the division will simultaneously mail, to both the owner and the tenant, copies of any bills and notices concerning delinquent water and sewer charges. This requirement shall affect contracts made on or after the effective date of this paragraph.
E. Direct billing of a tenant shall be in no way construed as to relieve the owner of the real estate premises of liability for water and sewer service charges. No direct billing of a tenant will be allowed where all delinquent water and sewer charges are not paid in full up until the date the direct billing agreement is accepted by the city, or where water or sewer service has been terminated for real estate premises.
Section 2. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.