ITEM 5.2 Utility account policy changeIV
ots11.v o V
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Dan Jordet, ASD
July 14, 2014
PRESENTER(s):
REVIEWED BY:
ITEM #:
Dan Jordet, ASD
Lori Johnson, CA
5.2
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution establishing a policy on changes
in the responsible party on a utility account when there is a change of ownership.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
Last fall a resident property owner ("first resident") called the Utility Billing desk and informed staff that
she was selling her house. She requested that her name be removed from the utility account and that
the new owner's name be placed on the account. Because this has been the past practice for Otsego,
we did so and began sending the utility bills to the new "owner" ("second resident") at the property
address.
Apparently, the second resident never finalized the purchase of property. The first resident, who had
asked us to remove her from the account, did not close the sale with the second resident but instead
leased the house to him. No contact was made to inform the City about the lease agreement or the
property ownership remaining with the first resident. Later, when the second resident defaulted on his
lease and was evicted from the property, the first resident discovered that utility bills had not been paid
at all during the second resident's stay in the house. The account incurred penalties for being unpaid
and the bills and penalties became the responsibility of the first resident, who had technically been the
"owner" of the property all along.
This was discussed by the Administrative Subcommittee at its June 18, 2014 meeting and a
recommendation was made to send the following policy to the City Council for adoption in order to
avoid such situations in the future:
POLICY ON CHANGE OF UTILITY ACCOUNT OWNERSHIP
Charges due and payable on a utility bill are the responsibility of the property owner of record with
Wright County, no matter the individual or group incurring the charge. If a change in ownership of a
Dropertv occurs anv unpaid charges at the time of the transfer of ownership become the responsibil
of the new property owner.
A change of ownership of a property, and therefore change of responsibility for payment of utility bills
and charges, must be made through the Utility Billing desk at Otsego City Hall. In order to authenticate
the change, a signed closing statement for sale of the property or a properly executed transfer of title
form must be presented to the Utility Billing desk in person, by surface mail, by fax or by e-mail.
The adoption of the attached resolution will make this policy a part of regular operations effective upon
adoption of the resolution.
SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE
Resolution 2014 - 50
OnQ42I01 1= Mr)TIr'iM
Please word motion as you would like it to appear in the minutes.
Move adoption of Resolution 2014-50 establishing a policy for change of utility account ownership.
BUDGET INFORMATION
FUNDING:
None required
Ar'TI('lA1 TAKEN
BUDGETED: ❑ YES
■ ►s
X N/A
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2014-50
RESOLUTION ADOPTING A POLICY ON CHANGE OF UTILITY ACCOUNT
OWNERSHIP
WHEREAS, the City has encountered a situation in which a utiltiy billing account was changed
in anticipation of a property sale and confusion ensued when the sale did not actually take place;
and
WHEREAS, the City Council wishes to avoid such confusion in the future and provide the most
accurate and best possible service to all utility customers.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OTSEGO, WRIGHT COUNTY, MINNESOTA THAT:
the following policy be adopted for Change of Utiltiy Account Ownership, effective
immediately:
POLICY ON CHANGE OF UTILITY ACCOUNT OWNERSHIP
Charges due and payable on a utility bill are the responsibility of the property owner of record
with Wright County, no matter the individual or group incurring the charge. If a change in
ownership of a property occurs any unpaid charges at the time of the transfer of ownership
become the responsibility of the new property owner.
A change of ownership of a property, and therefore change of responsibility for payment of
utility bills and charges, must be made through the Utility Billing desk at Otsego City Hall. In
order to authenticate the change, a signed closing statement for sale of the property or a properly
executed transfer of title form must be presented to the Utility Billing desk in person, by surface
mail, by fax or by e-mail.
ADOPTED by the Otsego City Council this 14"' day of July, 2014.
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
ATTEST:
Tami Loff, City CLerk