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HomeMy WebLinkAboutResolution No. 2021-038 A Resolution of the City of Arlington Amending the City's Utility Customer Support Program and Authorizing a Utility Credit Program RESOLUTION NO. 2021-038 A RESOLUTION OF THE CITY OF ARLINGTON AMENDING THE CITY'S UTILITY CUSTOMER SUPPORT PROGRAM AND AUTHORIZING A UTILITY CREDIT PROGRAM WHEREAS, on February 29, 2020, the Governor of the State of Washington proclaimed that a State of Emergency existed in all counties in the State of Washington due to the outbreak of novel coronavirus (COVID-19); and WHEREAS, on March 18, 2020, the Governor issued an initial proclamation waiving, suspending and prohibiting certain activities relating to utility services; and WHEREAS, on July 2, 2020 the Governor issued Proclamation 20—23.6 extending the prohibition on residential disconnects, refusal to reconnect and charging late fees until August 1, 2020 and further requiring utilities to review existing disconnect, reconnect and payment arrangement policies and to post a Customer Support Program by August 1, 2020; and WHEREAS, on July 6, 2020 City Council adopted Resolution 2020-010 Authorizing an Extension of COVID-19 Economic Relief which waived late fees and shut off for utility customers until July 28, 2020; and WHEREAS, on July 20, 2020 the City Council adopted Resolution 2020-012 Authorizing a Utility Customer Support Program; and WHEREAS, on October 5, 2020, the City Council adopted Resolution 2020-028 Amending Resolutions 2020-010 and 2020-012; and WHEREAS,on July 2,2021,the Governor issued Proclamation 20-23.16 extending the prohibition of residential disconnects and late fees until September 30, 2021, and WHEREAS, on September 30, 2021, Proclamation 20 — 23.16, which previously prohibited disconnecting utility service or imposing late fees expired; and WHEREAS, RCW 35.21.290 has been amended to allow for liens to be applied to utility accounts that are more than four months past due; and WHEREAS, this resolution will amend Resolution 2020-028 to remove the prohibition of disconnecting utility service for non-payment and late fees and will update the city's Customer Support Program; and RESOLUTION NO. 2021-038 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON AS FOLLOWS: The following provisions are adopted as the City's Customer Support Program relating to collection of utility accounts: A. Repayment Arrangements: Any account with a past due balance as of September 30, 2021 can enter into a long term repayment arrangement.The repayment period will be for twelve (12) months beginning the date the repayment arrangement is signed. Payment arrangements must be entered into by November 29, 2021 in order to avoid future disconnection of water service and late fees. In order to stay current with the payment arrangement, an amount must be paid on the delinquent balance in addition to current charges.The amount each customer agrees to pay will be documented on the payment arrangement form. Accounts that are current as of September 30, 2021 and become delinquent after that date will be subject to the standard 10 (ten) day payment arrangement. B. Water/Sewer Accounts— Disconnection of Service/Late Fee Process: 1. Disconnection of water service will resume in January 2022 for any accounts that are past due and have not entered into a payment arrangement. Said accounts need to be paid in full, plus a shut off processing fee, to restore service. 2. For accounts that have entered into a payment arrangement prior to November 29, 2021, disconnection of water service will resume January 2022 for accounts that have failed to meet the terms of the payment arrangement. For any accounts that are more than 4 months past due as of September 30, 2021, shut off will resume the third month after failing to meet the terms of the payment arrangement. Said accounts need to be paid in full, plus a shut off processing fee, to restore service. 3. If a disconnection does occur under the twelve (12) month repayment arrangement,the account must be paid in full, plus a shut off processing fee, to restore service. 4. Late fees shall be waived for all charges for service through December 31, 2021. 5. Late fees will be applied to all accounts beginning February 2022 for any unpaid charges for service dated January 1, 2022 or later. RESOLUTION NO. 2021-038 6. Late fees will be suspended for accounts that are current with their payment arrangement. If terms of the payment arrangement are not met at any time during the duration of the agreement, late fees will be applied to charges incurred on or after January 1, 2022. C. Storm Only Accounts: 1. Delinquent accounts referred to collection will resume in January 2022 for any accounts that are past due and have not entered into a payment arrangement. 2. The collection process will resume January 2022 for accounts that have failed to meet the terms of the payment arrangement. For any accounts that are more than 6 months past due, accounts will be sent to collection the third month after failing to meet the terms of the payment arrangement. 3. Late fees shall be waived for all charges for service through December 31, 2021. 4. Late fees will be applied to all accounts beginning February 2022 for any unpaid charges for service dated January 1, 2022 or later. 5. Late fees will be suspended for accounts that are current with their payment arrangement. If terms of the payment arrangement are not met at any time during the duration of the agreement, late fees will be applied to any charges incurred on or after January 1, 2022. D. Utility Credits— Phase 1: The City of Arlington has $310,000 in available funding for a utility credit program to provide economic relief to those households that experienced financial hardships resulting from COVID-19. The utility credit program will take place in two phases. The first phase will address those accounts that are delinquent,the second phase will address all other accounts that have also experienced financial hardships from COVID-19. Funding will be available until December 31, 2024 or until this amount has been fully utilized, whichever occurs first. The utility credit program is made possible by funding from the Federal Treasury American Rescue Plan Act. Residential customers that turn in an application and meet eligibility criteria will receive a one-time credit on their water/sewer account equal to 100% of their delinquent balance. Commercial customers that turn in an application and meet eligibility criteria will receive a one-time credit on their water/sewer account equal to 100%of their delinquent balance. If the account becomes past due at any time during the 12 months after the credit has been applied, the entire amount of the credit must be paid back. If the credit is not paid back, in full, within three RESOLUTION NO. 2021-038 months,the balance will be turned over to collection. Utility credits are not applicable to stormwater and irrigation only accounts. Residential Eligibility Criteria (must meet all of the following): • The applicant must submit a utility credit application with all required documentation. • A credit pay back agreement must be signed and turned in with the utility credit application. • The applicant must have a utility account with the City of Arlington and water and/or sewer services are billed. • The water/sewer service address must be within the City of Arlington city limits. • The applicant must have been negatively impacted financially by COVID-19 pandemic either through loss of a job or reduced hours. Proof of job loss or a reduction of hours will be required (e.g. unemployment statements, W-2's, paystubs, etc). • The account must have been delinquent beginning no earlier than 4/1/2020 through 9/30/2021. • Applicants must be the utility account holder or property owner listed on the account. Business Eligibility Criteria (must meet all of the following): • The applicant must submit a utility credit application with all required documentation. • A credit pay back agreement must be signed and turned in with the utility credit application. • The applicant must have a physical location in Arlington city limits (not including home occupancy businesses). • The applicant must have a utility account with the City of Arlington and water and/or sewer services are billed. • The water/sewer service address must be within the City of Arlington city limits. • The applicant must have a current City of Arlington business license at the time of application. • The applicant must have been negatively impacted financially by COVID-19 due to business closure or reduced operating hours. Proof of financial impacts will be required (e.g. financial statements, tax returns, etc). • The account must have been delinquent beginning no earlier than 4/1/2020 through 9/30/2021. • The applicant must be the utility account holder or property owner listed on the account. RESOLUTION NO. 2021-038 ADOPTED by the City Council and APPROVED by the Mayor this 15Y day of November, 2021. CITY OF ARLINGTON ai2wt"-7- Barbara Tolbert, Mayor ATTEST: Wendy V Der Meersche, City Clerk APPROVED AS TO FORM: Stev n J. ffl City Attorney RESOLUTION NO. 2021-038