5.6. ERMUSR 10-08-2013 - Laserfiche WebLink

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A4h Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski —Finance and Office Manager John Dietz—Chair Al Nadeau— Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: October 8, 2013 _ 5.6 SUBJECT: Assessment of Electric BACKGROUND: Every fall we provide a list of assessments from the sewer and trash accounts to be assessed for the City, and water accounts to be assessed for the utilities. These utilities have specific statutory authority to certify delinquent charges to taxes. Minnesota Municipal Utilities Association(MMUA) and the League of Minnesota Cities (LMC)have presented a way for an electric or gas municipal utility to certify delinquent charges as well. Elk River Municipal Utilities would like to pursue assessing delinquent electric charges, as discussed below. Having this assessment ability would reduce uncollectible amounts, and ultimately keep the rates lower. DISCUSSION: In a publication from the LMC, published in January 2012 titled "Securing Payment of Utility Charges," there was a section directed to the certification of municipal gas and electric charges. The publication stated a possible way to assess these charges was the combining of two laws; one passed in 1989 giving towns the authority to certify unpaid service charges to the county auditor to be collected with taxes, and a 1973 law amended in 2003 stating that cities have all the same powers as towns. Given that I)the LMC has reviewed the law, evaluated it and came to the conclusion that assessment of electric charges is allowable,2)the LMC is promoting the assessment of delinquent electric charges, and would therefore, help defend any opposition to this position, and 3)there is minimal risk that this position would result in any legal action being necessary, our legal counsel is prepared to help us pursue the assessment of delinquent electric charges. Through the amendment of our Meter Deposits and Related Policies: Collection of Unpaid Accounts, and the amendment of City Ordinance: Collection Fees and Charges—Electric, we would be able to assess electric charges. These amendments are attached for your review. ACTION REQUESTED: Staff recommends the adoption of the proposed amendment to ERMU policy, and recommendation of the City ordinance amendment to be taken to the City Council for approval. ' � IEEI 1Y 3 Page 1 of 1 �PINATUREJ Reliable Public Power Provider P OWERED To SERVE 55