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Home My WebLink AboutFIN 2018-11-20 Item 2C - Ordinance - Transition to King County for Storm and Surface Water Billing and PaymentsTO: FROM: BY: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Finance Committee Peggy McCarthy, Finance Director Richard Takechi, Fiscal Specialist CC: Mayor Ekberg DATE: November 14, 2018 SUBJECT: Revise Tukwila Municipal Code Chapter 14.32, Storm and Surface Water Rates and Charges, for transition of billing and collection responsibilities to King County, effective January 1, 2019 ISSUE Approve updates to the Tukwila Municipal Code (TMC), Chapter 14.32, Storm and Surface Water Rates and Charges, for changes in billing and collection processes resulting from the transition of these responsibilities to King County, effective January 1, 2019. BACKGROUND On September 17, 2018, the City Council authorized the Mayor to sign an interagency agreement with King County whereby King County would become the City's billing and collection agent for City -provided storm and surface water services, effective on January 1, 2019. Certain changes to the TMC Chapter 14.32, Storm and Surface Water Rates and Charges, are required to conform the code to the new billing process. Changes have been made to section 14.32.060, Billing and Collecting, and to section 14.32.040, Special Rates, accordingly. DISCUSSION The proposed code changes for billing process and special rates are necessary to align it with the interagency agreement with King County. RECOMMENDATION The Finance Committee is being asked to approve the proposed changes to the TMC Chapter 14.32 and forward this item to the December 3, 2018 Regular meeting Consent agenda. ATTACHMENTS Draft Ordinance 23 24 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2104 §2 AND §3 AND 1932 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTIONS 14.32.040, 14.32.050, 14.32.060, AND 14.32.070, TO CHANGE THE BILLING AND COLLECTING OF STORM AND SURFACE WATER SERVICE CHARGES PURSUANT TO THE DESIGNATION OF KING COUNTY AS THE CITY OF TUKWILA'S AGENT FOR BILLING AND COLLECTING; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila's Finance Department is responsible for billing and collecting all storm and surface water service charges and maintaining the storm and surface water account data, which includes ownership changes; mailing/site address and contact information changes; changes in rate classifications; and area changes due to short plats, consolidations and boundary line adjustments; and WHEREAS, the number of surface water accounts on August 31, 2018 totaled 5,286; and WHEREAS, the Mayor's Office and the Public Works Department, in addition to the Finance Department, field questions and complaints from the public regarding the bills and the Surface Water Utility in general; and WHEREAS, the entire process of billing, receipting and maintaining the customer accounts and interacting with the public takes significant resources and time for the City; and WHEREAS, transferring the billing and receipting to King County will allow City personnel to devote time and resources to other duties; W: Word Processing\Ordinances\SSW Billing transferred to King County-TMC 14.32 strike -through 11-6-18 PM:bjs Page 1 of 5 25 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 14.32.040 Amended. Ordinance Nos. 2104 §2 and 1932 §1 (part), as codified at TMC Section 14.32.040, "Special Rates," are hereby amended to read as follows: 14.32.040 Special Rates couple, from all sources is lecc than $32,000 per y ar, shall pay a rate equal to 50% of surface water service charges. Every such person shall file with the Finance Department their affidavit that he or she is qualified to be charged the special rate. Such affidavits are person credit. If eligible for a credit, the -applicant shall be billed at one half of the service charge applicable to och single family residential parcel. The charge for a residential parcel that is owned by and is the personal residence of a person or persons determined by the King County Assessor as qualified for a low income senior citizen rate adjustment or a low income disabled citizen rate adjustment pursuant to RCW 84.36.381, or as the same may hereafter be amended, shall be 50% of the residential rate set forth in TMC Section 14.32.030. Section 2. TMC Section 14.32.050 Amended. Ordinance No. 1932 §1 (part), as codified at TMC Section 14.32.050, "Service Charge Adjustments," is hereby amended to read as follows: 14.32.050 Service Charge Adjustments A. Any person receiving a utility service charge may apply in writing to the uyDirector of Public Works of the City of Tukwila for a service charge adjustment. Filing such a request does not extend the period for payment of the charge. Requests for adjustments on delinquent accounts will not be acted upon until paid in full. B. A request for a billing adjustment may be based on one or more of the following: 1. The total area of the non -single-family residential parcel is incorrect; W: Word Processing\Ordinances\SSW Billing transferred to King County-TMC 14.32 strike -through 11-6-18 PM:bjs Page 2 of 5 26 2. The percent of developed surface on the non -single-family residential parcel(s) for the billing year for which the service charge is imposed is incorrect and the actual percent of developed surface on the parcel places it in a rate category different than that used for calculation of the service charge; 3. The parcel or portion of it is outside the City and the service charge is calculated on that portion outside the City; 4. The service charge calculated is erroneous in applying the terms of this chapter. C. Application for adjustments may be made to the ityDirector of Public Works of the City of Tukwila. The burden of proof shall be on the applicant to show that the rate adjustment sought should be granted. All decisions of the Director of Public Works shall be final. D. Applications for service charge adjustments shall be filed within 90 days of the billing date. E. The Director of Public Works of the City of Tukwila shall establish processes and procedures for reviewing requests for adjustments. Section 3. TMC Section 14.32.060 Amended. Ordinance Nos. 2104 §3 and 1932 §1 (part), as codified at TMC Section 14.32.060, "Billing and Collecting," are hereby amended to read as follows: 14.32.060 Billing and Collecting A. Pursuant to an interagency agreement, King County is designated as the City's agent for the purpose of billing and collecting storm and surface water service charges from City property owners and disbursing funds to the City. A copy of the interagency agreement shall be available in the office of the City Clerk for use and examination by the public. All parcels subject to a service charge shall be billed twice a year annually based upon the rate category and acreage applicable to such parcels as of November 1 August 1 of the year prior to the billing year. B. Each bill shall be equal to one half of the total annual service charge applicable to the parcel. B. For all parcels, except those owned by the City, condominium complexes or the Washington State Department of Transportation for public highways, roads and rights -of - way, the service charge shall be included on the annual King County Property Tax Statement, which shall be sent in the manner established by state law and county ordinance. One-half of the total annual service charge applicable to the parcel shall be due on April 30 and the other half shall be due on October 31, consistent with the due date of the King County Property Tax bill. Any payment not received by the due date shall be considered delinquent. W: Word Processing\Ordinances\SSW Billing transferred to King County-TMC 14.32 strike -through 11-6-18 PM:bjs Page 3 of 5 27 C. For parcels owned by the City; condominium complexes; or those of the Washington State Department of Transportation for public highways, roads and rights -of - way, bills shall be sent to the property owners by the City in January of each year and shall be due in full within 60 days of the date of the bill. After that period the bill shall be considered delinquent. D. Property owners shall be responsible for all bills not paid. The City may pursue collection of any delinquent bills outstanding on January 1, 2019. King County, as the City's agent, shall pursue collection of any bills that become delinquent after January 1, 2019. After that period the hill shall be considered delinquent. FE. The service charge or any part thereof which becomes delinquent shall bear interest as provided in RCW 35.67.200 at the rate of 8% per annum, or such rate as may hereafter be authorized by law, computed on a monthly basis from the date of delinquency until paid. GF. The City shall have a lien for all delinquent and unpaid service charges, including interest thereon, against any parcel for which the service charges are delinquent, as provided by RCW 35.67.200. The current charges imposed by the King County Records and Elections Division shall be charged to all liened parcels to recover the cost of placing and removing the lien on the parcel. Pursuant to RCW 35.67.215, the lien is effective for up to one year's delinquent service charges without the necessity of any writing or recording of the lien with the King County Records and Elections Division. In the case of foreclosure actions to collect delinquencies, the City shall seek also to collect reimbursement of reasonable costs of collection including, but not limited to, attorney's fees, staff time and filing fees. Section 4. TMC Section 14.32.070 Amended. Ordinance No. 1932 §1 (part), as codified at TMC Section 14.32.070, "Service Charge Revenues," is hereby amended to read as follows: 14.32.070 Service Charge Revenues All moneys obtained by the City pursuant to TMC Chapter 14.32 shall be credited and deposited in the storm and surface water management utility fund created by TMC Chapter 14.28. Moneys so obtained shall be spent for the purposes allowed in that chapter. Section 5. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. W: Word Processing\Ordinances\SSW Billing transferred to King County-TMC 14.32 strike -through 11-6-18 PM:bjs 28 Page 4 of 5 Section 6. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 7. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force January 1, 2019. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing\Ordinances\SSW Billing transferred to King County-TMC 14.32 strike -through 11-6-18 PM:bjs Page 5 of 5 29