HomeMy WebLinkAboutPublic Utilities Committee Minutes 08.10.1987M I N U T E S
PUBLIC UTILITIES COMMITTEE
DATE Aug. 10, 1987 TIME 5:00 P.M.
PLACE OF MEETING City Hall
A. Members present: Chairman L.D. Collins (acting)
- Dave Michaels Mel Baker Sharon Herman
B. Other's present: Alan Richardson
A quorum (3 or more) present the following action was taken by
the committee:
1. It was reported that Curtis Bradley at 813 East 4th Street and Georgia Kline at
1109 10th Ave. have been complaining about high consumption on their utility bills.
After changing these meters it was found that they had a model 40 head on a model
25 meter which would account for the higher consumption during the large volume
months. Bradley's has been in for 1 year and Kline's has been in for 6 years.
Motion by Mel Baker to read the new meters after they have been in for a month and
make an adjustment for the last-90 days which would be their May, June and July
bills. Seconded by Dave Michaels. Motion carried.
2. Alan Richardson appeared before the committee to complain about the utility bills
at 414 2nd ave. and 311 3rd ave. He didn't feel he should have to pay for 2 months
at each location since the renters (beet labors) were only in the houses for 2
partial months. The billing cycle and billing proceedures were explained to Mr.
Richardson and he finally agreed to pay the bills.
3. A list of unpaid utility accounts, most of which are over a year old, was presented.
Motion by Sharon Herman that the Sewer and Garbage charges be put on the taxes and
that the water be charged off. Seconded by Mel- Baker. Motion carried.
Meeting adjourned at 5:20 P.M.
Respectfully Submitted
Collins
Acting chairman
10
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• -71
7-13-4308 LOCAL GOVERNMENT
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time to time by the governing body or as shall have been covenanted
ordinances and resolutions authorizing the outstanding bonds. :'. .
History: En. Sec. 3, Ch. 149, L. 1943; amd. Sec. 3, Ch. 98, L. 1955; R.C.M,
11-2219(part).
' 7-13-4308. Change and readjustment of charges. The gov
body shall have the right to change and readjust from time to time the il?
c. .
and charges so fixed and established, provided the aggregate of such rates ak
charges shall always be sufficient to meet the requirements mentioned i
7-13-4307.
History: En. Sec. 3, Ch. 149, L. 1943; amd. Sec. 3, Ch. 98, L. 1955; R.C.M. 1!r
11-2219(pan).
01
7-13-4308. Procedure to collect sewer charges. (1) The am
charges shall be collected by the treasurer.
(2) On or before January 15 of each year, notice shall be given by the it
treasurer or town clerk to the owners of all lots or parcels of real estate t
which sewer service has been furnished prior to January 1 by the city •
ssment owing and in arrears at b
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town. Said notice s
time of giving such notice. Such notice shall be in writing and shall state &
amount of such arrearage, including any penalty and interest assessed.pel
suant to the provisions of the city or town ordinance and that unless S
same is paid by July 1 thereafter, the same will be levied as a tax against tr
wer service was furnished and for whid
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lot or parcel o
payment is delinquent as above specified. Such notice may be delivered t
such owner personally or by letter addressed to such owner at the post-ova
s; address of such owner as recorded in the office of the county assessor.
(3) (a) Except as provided in subsection (3)(b), on March 1, the H'
treasurer or town clerk shall certify and file with the county assessor a it
the legal description thereof, to 6
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of all lots or parce
owners of which notices of arrearage in payments were given as above spec
fied and which arrearage still remains unpaid and stating the amount of W
arrearage, including any penalty and interest. The county assessor shall i>-
the same as a tax against such lot or parcel of real estate.
(b) In cities where the council has provided by ordinance for the collec&
the city treasurer shall insert such delinquent amount, including pa
of taxes
,
alty and interest, as a tax against the lot or parcel of real estate to w&
sewer service was furnished and payment for which is delinquent.
History: En. 84-4726.1 by Sec. 1, Ch. 411, L. 1973; R.C.M. 1947, 84-4726.1(part).
7-13-4310. Role of public service commission unaffected. Nothw
contained in this part shall be construed to change or affect the powers
d in Title p
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the duties of the public service commission of Montana prescr
chapters 1, 2, and 3.
History: En. See. 5, Ch. 98, L. 1955; R.C.M. 1947,11-2220.1.
7-13-4311. Authorization to furnish water and sewer services P
rovisions of subsection (2). t.
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industrial consumers. (1)
that owns and 09"
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city or town council of any city or town wit
stem to furs W
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the inhabitants of such city or town 10
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water and/or sewage serv
ORDINANCE NO. 760
AMENDING SECTION 8.12.050, FAILURE TO PAY
• BILL, OF THE LAUREL MUNICIPAL CODE.
BE IT ORDAINED by the Council of the City of Laurel,
that Section 8.12.050 is hereby amended to read as follows:
Section 8.12.050 Failure to Pa Bill. The charges
fixed in this ordinance for the collection, removal, and
disposal of all garbage or trash shall be entered in their
respective amounts as charges against each owner, manager,
occupant, tenant, or lessee in the amount so fixed and
charges shall be collected monthly in connection with and
as a part of the water bill of the City. Should any owner,
manager, occupant, tenant, or lessee of any place or abode
of any business or commercial establishment fail or refuse
to pay the charges fixed against him and his place of abode
or place of business when due, the refuse fee remaining
unpaid shall constitute a lien against the real property
wherein the premises or business or commercial establishment
exists and be placed on the annual property tax statement.
• Introduced at a regular meeting of the City Council on
December 6 , 1983, by Alderman Marvin Carter
PASSED and APPROVED by the Laurel City Council this
20th day of December , 1983.
This ordinance shall become effective 30 days after
final passage by the Laurel City Council.
bert Ehrlick, Mayor
ATT T:
Donald L. Hackmann, City Clerk
Approved as to form:
o h M. radley, City Atty
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Crosby Attorney General Opinion Service
2210 E. 6th Helena, Montana
VOLUME NO. 40 OPINION NO. 7
LOCAL GOVERNMENT - Imposition of property lien in favor
of municipality to secure unpaid water charges is not
authorized under Montana law;
M@IICIPAL UTILITIES - Imposition of property lien in
favor of municipality to secure unpaid water charges -is
not authorized under Montana law;
MONTANA CODE ANNOTATED - Sections 69-7-201 and
7»13»4306.
Held: Under existing Montana law, t city or town
may not file a lien against a landowner's
property due to the tenant's failure to pay
for water service contracted for and used
by the tenant. ,Discontinuance of service=
is the only remedy available for nonpayment
of water' charges., SS 69-7.201,• 7-13-4306,
MCA.
18 March 1983
Kenneth R. Olson
Town Counsel. '
Dutton, Montana 59433
Dear Mr. Olson
You-have requested my opinion on the following question:
Can a city or town file a lien against 'a
landowner's property due to.the tenant's failure
to pay for water service contracted for and used
by the tenant?
Prior to the 1981 legislative session, the rates and
operating procedures of municipal utilities- were
regulated by the Montana Public Service Commission. In
1981, the Legislature returned to the municipalities the
power and authority to regulate rates and charges
imposed for municipal utility service.- This authority
has certain restrictions set forth in section 69-7-101,
MCA.. In addition, municipal utilities were given broad
authority to adopt rules governing their operation.
Such rules must contain, at a.. minimum, those
requirements of good practice which can be normally
expected for the operation of a utility. S 69--7-201,
MCA. In other words, the adopted rules, including those
governing the collection of delinquent utility charges,
must be reasonable. Section 69-7-201, MCA, also
provides that the rules adopted by municipalities shall
outline the utility's procedure for discontinuance of
service.
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A municipality is authorized to discontinue water supply
to premises fcr nonpayment of eithet avatar or sewer
charges. 5'7-.13--4306, MCA. The provi t i?r:s o F Title 7,
MCA, apply to the actions of municipal utilities. See 5
69-3--101(5), 11CA. An additional remedv for del,inrnient
sewer charges is provided by section 7-13-4309, 11CA,
which authorizes that unpaid sewer charges be inserted
as a tax against the lot or parcel of real estate to
which the service has been furnished. No similar
provision exists for collection of delinquent water
charges'.
The Montana Supreme Court has not determined the
legality of a property lien for nonpayment of water
charges by a tenant. Therefore, it is appropriate to
look to court decisions from other jurisdictions for
guidance.
The United States Supreme Court has upheld, against
constitutional objections, the imposition of liens
against property of a landlord for unpaid water hills of
a tenant. Dunbar v. New York, 251 U.S. 516, 40 S. Ct.
250 (1920). In that case tT a city charter, adopted by
the New York General Assembly, provided that charges for
water become liens on the property. 1901 New York Laws,
ch. 466. The court indicated that the lien did not
deprive the owner of property without due process since
the property benefited from the water service. The fact
that it is the tenant who defaults does not relieve the
property from l17a TMlity as it would be unfit for human
habitation without water. Id. at 518.
In the absence of a statute expressly making arrearages .
for water rents a lien on property, or authorizing a
lien procedure, the [municipality] has no right to
compel an owner to pay charges incurred by another.
Friedman v. Dist. of Columbia, 172 A.2d 562, 563 (D.C.
96? 1). Plater rents do not constitute a lien on the
property supplied unless it is so provided by statute in
express terms or by necessary implication. Id. at 563.
Thus, in light of Dunbar and Friedman, the validity of
statutorily authorized liens agate property to secure
delinquent utility c arges incurred by a tenant is
unquestioned. The only issue is whether the consequence
of failing to pay water charges is limited in Montana to
the statutory remedy provided by section 7-13-4306, HCA,
or whether the 1981 enactment of section 69-7-201, MCA,
expanded the authority of municipalities in the area of
utility charge arrearages beyond the remedy of
discontinuing service. Section 69-7-201, MCA, does not
expressly provide a lien to secure paLyment of water
charges. The specific reference in section 69-7-201,
MCA, to the adoption of procedures for dist-nntinuing
service and the retention of section 7-13-4306, 11CA,
authorizing discontinuance for nonpavment of charges,
support a conclusion that a lien upon property was not
contemplated by the Legislature as an available remedy
for nonpayment of water bills.
Municipal utilities are now only partially regulated
under sections 69-7-101 to 69--7-201, MCA. However, the
rules adopted for their operation must be in accord with
existing law. No general, grant of power to
municipalities can authorize bylaws which conflict with
state statutes. McGillic v. Corby, 37 Mont. 249, 253,. .
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95 P. 1063, 1L64 (1908). in this case, the pertinent
state laws are Sections 69-7-•201 and 1-13--4306, MCA,
Authorizing discontinuance of service for nonpayment of
water charges. It is a familiar rule of construction
that, when a. power is conferred upon a municin,-I-i.tv. and
the mode in which it is to Pyerrise that power is
prescribed, such mode must be pursued. Mecillir_ V.
Corby, 37 Hont. 249, 255, 95 P. 1063, 1065 (009J.
THEREFORE, IT IS MY OPIVION:
Under existing Montana law, a cite or town may not
file a lien against a landowner's property due to
the tenant's failure to pay for water service
contracted for and used by the tenant.
niscontinuance of service is the only remedy
available for nonpayment of water charges.
§57-13-4306, 69-7-201, MCA.
Vey truly you ,
K
r
MIKE GREELY
Attorney Genera
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