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HomeMy WebLinkAbout03 - Continuous Utility Service AgreementsCOUNCIL AGENDA CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 3 May 9, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Glen Everroad, Revenue Manager, 644 -3141 everroad @city. newport- bea ch. ca. us SUBJECT: Continuous Utility Service Agreements ISSUE: Should the City provide an option for property owners to maintain utility services following the close of service by a tenant? RECOMMENDATION: Staff recommends Council introduce the proposed amendments to Municipal Code Section 14.12.140 authorizing continuous service agreements for water and sewer customers. DISCUSSION: Newport Beach Municipal Code Section 14.12.140 provides that when a water utility customer requests to discontinue water service the City shall read the meter, provide the customer a closing bill and shut off water to the premises. Section 14.12.085 requires an application for water service be submitted by a new customer and a fee ($35) for establishing water service in a new customer's name. This section also provides that property owners are responsible for all water charges at their premises. The City processes an average of 250 requests for water service discontinuance each month. The majority of these requests are made by tenants vacating the premises. In order to meet Municipal Code requirements, property owners desirous of maintaining water service between tenants (for landscape, cleaning, etc.) must complete an application and pay the establishment fee. Continuous Service Agreement May 9, 2006 Page 2 Other utilities (e.g. gas & electric service) have developed "continuous service agreements ", executed with property owners, which authorize the utility to put the service in the name of the property owner upon a tenant's notice to discontinue service. The Revenue Division and City Attorney's Office have developed a form agreement to provide continuous water and sewer service. The proposed ordinance revisions would authorize the execution of a continuous service agreement between the City and property owners. Utilities has reviewed and approved the proposed changes. Environmental Review: None required Public Notice: Notice of the ordinance Alternatives: Council may elect to not amend Municipal Code to authorize continuous service agreements. Prepared by: Submitted by: Axt�an�l Glen bad / Revenue Manager Attachments: Proposed Ordinance Dennis Danner / Administrative Services Director i. ORDINANCE NO. 2006- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTIONS 14.12.085 and 14.12.140 OF TITLE 14 OF THE NEWPORT BEACH MUNICIPAL CODE, PERTAINING TO WATER RATES AND CHARGES NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY ORDAINS as follows: SECTION 1: Section 14.12.085 of Chapter 14.12 is amended to read as follows: 14.12.085 Establishing Service. A. When establishing an account the customer shall pay a fee of thirty -five dollars ($35.00) to establish water service in the customer's name at the property. The fee shall be payable upon application for water service. B. An application for water service, as provided by the Revenue Division of the Administrative Services Department, shall be used for the purpose of establishing water service into a new customer's name. Property owners may enter into a continuous service agreement which will authorize the transfer of water service into the name of the property owner upon a tenant's notice to discontinue service. Property owners shall be responsible for all water service charges at their premises. Water service will not be established in the name of a customer other than the property owner without the written authorization of the owner, or the owner's authorized representative. C. Upon application and payment of an establishment fee, the water will be turned on. D. A customer's newly established service may be discontinued for nonpayment of a bill for services previously rendered to the customer at any location served by the City provided such bill is not paid within fifteen (15) days after mailing of a notice of discontinuance of water service stating that present service will be discontinued for nonpayment of such bill for prior service. SECTION 2: Section 14.12.140 of Chapter 14.12 is amended to read as follows: 14.12.140 Customer Request for Service Discontinuance. A. Whenever a customer desires to discontinue service, the customer shall give not less than two working days (forty -eight (48) hours) written notice thereof to the Revenue Division of the Administrative Services Department. B. In accordance with such notice, the City shall read the water meter, prepare a closing statement of all unpaid bills for water furnished by the City to the customer up to that time and unless a current continuous service agreement with the property owner is in place, shut off the water to the premises. If the customer has a deposit with the City, the Administrative Services Department will return the balance, after deducting any unpaid charges. SECTION 3: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 4: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 5: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the _ day of 2006, and adopted on the _ day of 2006, by the following vote, to wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR ATTEST: CITY CLERK F:\ users \cat \shared \da \shared \Ordin ante \14.12.doc 2