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Home My WebLink AboutCOW 2020-04-13 Item 3C - COVID-19 - City Utility PaymentsCOUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meefinga Date Prepared by Mayor's review Council review 04/13/20 BJM 04/20/20 BJM ITEM INFORMATION ITEMNO. 3.C. STAFF SPONSOR: V. CARLSEN AND B. MILES ORIGINAL AGENDA DATE: 04/13/20 AGENDA ITEM TITLE COVID-19, Community Assistance: City Utility Payments CATEGORY ® Discussion Mtg Date 4113120 ® Motion Mtg Date 04120120 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Otber Mtg Date SPONSOR ❑Council ®Mayor ❑HR ❑DCD ®Finance ❑Fire ❑TS ❑P&R ❑Police ❑Pik ❑Court SPONSOR's In response to the COVID-19 pandemic, the City's Finance adopted interim polices to aid SUMNLARY Tukwila water and sewer ratepayers. These policies include discontinuing water shut offs after March 15, waiving late fees, and allowing ratepayers to set payment schedules. Many other utilities in Washington State have taken similar action, including Seattle City Light, Puget Sound Energy, and Water District 125. The Council is being asked to affirm the emergency procedures enacted by the Finance Department. REVIE','ED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office and Finance COMMITTEE No Committee, Straight to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $N/A $N/A Fund Source: WATER AND SEWER FUNDS Comments: The City would be waiving late fees associated water and sewer bills. MTG. DATE RECORD OF COUNCIL ACTION 04/13/20 Forward to next Regular meeting 4/20/20 MTG. DATE ATTACHMENTS 04/13/20 Informational Memorandum dated 04/07/2020 Interim emergency policy regarding City water and sewer accounts. 4/20/20 741 32 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Committee of the Whole FROM: Vicky Carlsen, Finance Director BY: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: April 6, 2020 SUBJECT: COVID-19 Community Assistance, City Utility Payments ISSUE Affirm interim emergency policies regarding City water and sewer accounts in response to COVID-19. BACKGROUND On February 29, 2020 Governor Jay Inslee declared a state of emergency regarding the COVID-19 Pandemic, directing state agencies to use resources necessary to prepare for and respond to the outbreak. The Mayor issued a Proclamation declaring an emergency on March 9, 2020. The City Council affirmed the emergency declaration at its March 16 meeting. As result of the Pandemic, the City has closed all City buildings to the public and moved most City functions to a virtual city hall model. In addition, the Pandemic has resulted in the temporary closures of businesses throughout the City and furloughs, and layoffs throughout the nation. Due to the economic disruptions in the community and the disruptions in City operations, the Finance Department has adopted the following interim policy for all City water and/or sewer accounts, both commercial and residential. These temporary policies are consistent with policies adopted by other utility providers in the region, such Water District 125, Seattle City Light, and Puget Sound Energy. 1. No late fees or penalties for non-payment would be incurred, effective with the April billing. 2. Effective March 16, water shutoff for non-payment is suspended for occupied premises. Due to concerns with potential squatting and protection of the City's utility system, water shutoffs for vacant properties will still occur. Water Shut Off fees incurred prior to March 16, 2020 would still be due if there is a request to restore service. 3. Customers can establish payment plans by calling the City's Finance Department. 33 INFORMATIONAL MEMO Page 2 DISCUSSION TMC 2.57.040 (3) requires the City Council to affirm any rules or regulations related to the protection of life, environment, and property that are affected by the emergency. The policy is one avenue that the City can do to help Tukwila community members during the COVID-19 Pandemic. As a reminder, the policy only applies to ratepayers within the City's water and sewer service area. Water District 125 has adopted a similar policy, as have many other utility providers, such as Seattle Public Utilities, Puget Sound Energy, and Tacoma Public Utilities. FINANCIAL IMPACT The City typically collects $2,000 in late fees per month from late payments, though it is reasonable to assume there will be additional late fees incurred by utility customers during the Pandemic due to employment and revenue disruption. This revenue would be lost. Allowing delayed payments could also result in a cash flow issue for each of the utilities. RECOMMENDATION Affirm the emergency policy provided by City Administration. Staff is requesting that this item be placed on the April 20 regular council meeting for final action. ATTACHMENTS • Interim emergency policy regarding City water and sewer accounts 34 Z:\Council Agenda Items\Mayor's Office\COVID19\Assistance Program\Utilities\Water and Sewer Memo 2020.04.06 FINAL.doc City of Tukwila Water and Sewer Utility Policies in Response to COVID-19 SUBJECT: Temporary Policy to Discontinue Water Shut-off for Non -Payment of Water and Sewer Service Fees and to Discontinue the Imposition of Late Fees on Delinquent Water and Sewer Accounts PURPOSE: The purpose of this policy is to temporarily suspend the imposition of past -due and late penalties on delinquent water and sewer accounts and to temporarily discontinue the water shut-off on delinquent accounts subsequent to Governor Inslee's February 29, 2020 Proclamation of Emergency No. 20 05 and subsequent orders. This policy will be effective on April 1, 2020 and will expire on September 30, 2020 unless otherwise terminated or extended. SCOPE: This policy applies to all City of Tukwila water and sewer customers. DEFINITIONS: 1. "Public Health Emergency" shall mean any such emergency declared by the Governor of the State of Washington pursuant to his or her powers under 38.08, 38.52 and 43.06 RCW, any such emergency declared by the King County Executive pursuant to RCW 38.52, or the Mayor of the City of Tukwila pursuant to RCW 38.52. 2. "Water Shut-off" shall mean any notice of water shut-off, the act of shutting -off water, and any fees, charges, or monetary penalties associated with water shut-off and turn -on set forth in TMC 14.04.125 and TMC 14.04.130. 3. "Late fees" shall mean any penalty, fee, or charge associated with a delinquent account as set forth in TMC 14.04.270. POLICY: During a Public Health Emergency, the City of Tukwila shall discontinue the issuance of Shut-off Notices for delinquent water and sewer accounts for the duration of the Public Health Emergency. In addition, the City shall not apply Late Fees incurred after April 1 delinquent accounts during the Public Health Emergency. This policy does not suspend regular monthly utility charges for water and sewer service. Customers are encouraged to continue making regular payments. PR(N Fni IRF• The following procedures are established to allow for community members to continue receiving water and sewer, utility service, without penalty, during a declared Public Health Emergency. Notification A. The Utility Billing Division shall provide written notice of the policy herein to customers with delinquent accounts. Such notice shall state that all past due amounts are still owed but that late fees incurred after March 16, 2020 will be suspended, and disconnections Page 1 of 2 35 will be postponed for the duration of the Public Health Emergency. Water shut-off fees for water turnoff prior to March 15 shall still be applied. In order to prevent squatting and to protect the City's utility system, the City shall still disconnect water of properties the City determines are vacant. B. Within thirty (30) days of termination of the Public Health Emergency, the Finance Director will review delinquent accounts and will work with customers to enter into repayment plans as in the Director's discretion is appropriate as to each account. C. Late fees and shutoff shall resume 30-days after discontinue of this temporary policy in response to COVID-19 EFFECTIVE DATE: April 1, 2020 APPROVAL: Mayor Allan Ekberg Vicky Carlsen, Finance Director De'Sean Quinn, Council President Michael R. Kenyon, City Attorney (initials) Page 2 of 2 36