8.4. SR 10-21-2013 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and City Council 8.4 Agenda Section Meeting Date Prepared by General Business October 21, 2013 Troy Adams, P.E. —ERMU General Manager Item Description Reviewed by Ordinance Amendment: Collection of Electric Cal Portner, City Administrator Utility Charges and Fees Reviewed by Action Requested Approve by motion an ordinance amendment adding Section 78-332 Collection of Fees and Charges to Chapter 78 Utilities,Article N Electric Systems,Division 3 Rates and Charges,which will authorize certain unpaid electric service charges and fees to be certified for collection with real estate taxes. Background/Discussion Every fall, the Elk River Municipal Utilities Commission approves a list of delinquent accounts to be passed on to Council for approval to be certified for collection with real estate taxes. The list includes sewer and trash accounts to be assessed for the city and water accounts to be assessed for the utility. These utility services are subject to specific statutory authority to certify delinquent charges to taxes. Minnesota Municipal Utilities Association (MMUA) and the League of Minnesota Cities (LMC) have presented that,in addition to these types of utility services, electric and gas municipal utilities may certify delinquent charges as well. In a January of 2012 publication from the League of Minnesota Cities (LMC) titled "Securing Payment of Utility Charges," there was a section directed to the certification of municipal gas and electric charges. The publication stated that although these utility services are not specifically listed with the utilities that Minnesota Statute grants municipalities the authority to assess, and the authority to certify delinquent charges and fees for electric can be concluded through the recognition of two other laws. The first, Minn. Stat. X366.012,was passed in 1989 and authorizes towns to certify unpaid electric service charges for collection with taxes. The second,Minn. Stat. X415.01,is a 1973 law amended in 2003 which grants municipalities all the power granted to towns. Given that, 1) 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, ERMU's legal counsel now supports the position that there is the statutory authority for the assessment of delinquent electric charges. ERMU would like to pursue assessing delinquent electric charges. And on October 8, 2013, the ERMU Commission approved a revision to ERMU policy to reflect this authority and directed staff to request Council adopt an ordinance allowing for delinquent electric charges and fees to be certified for collection with real estate taxes. The adoption of this ordinance would reduce uncollectible amounts,which may include city franchise fees, and would ultimately help keep the electric rates lower. P a w E R E U 6 Y NaA f RE]