HomeMy WebLinkAboutOrdinance No. 3199-2021KENAI
CITY OF KENAI
ORDINANCE NO. 3199-2021
Sponsored by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONDITIONALLY
WAIVING CERTAIN PROVISIONS OF TITLE 17- PUBLIC UTILITIES AND ENTERPRISES,
RELATED TO PENALTY, INTEREST AND SHUTOFF FOR NONPAYMENT OF FEES FOR
WATER AND SEWER UTILITY CUSTOMERS THAT CERTIFIED TO THE CITY THAT THEY
WERE IMPACTED BY COVID-19 PURSUANT TO THE CITY MANAGER'S EXECUTIVE
ORDER NO. 2 DURING THE EFFECTIVE PERIOD OF THE CITY'S EMERGENCY DISASTER
DECLARATION.
WHEREAS, the Federal government, State government and City all made various disaster
declarations during the COVID-19 public health emergency; and,
WHEREAS, as a part of the State's disaster declaration, the State enacted SB 241, that amongst
many other actions, prohibited utilities from disconnecting residential utility customers
experiencing financial hardship related to the public health disaster emergency; and,
WHEREAS, the State's moratorium on disconnection of residential utility costumers has since
expired; and,
WHEREAS, pursuant to the City's disaster declaration, the City Manager issued Executive Order
No. 2 that provided that penalty and interest would not accrue on commercial and residential
water and sewer accounts, and that these services would not be shut off during the Disaster
Declaration as long as the customers certified they were impacted by COVID-19; and,
WHEREAS, the City's moratorium on penalty, interest and shutoffs for water and utility services
for those who certified they were impacted by COVID-19 is effective until the end of the City's
Disaster Declaration; and,
WHEREAS, while the City has worked with its utility customers in preparing for an end of the
City's moratorium, it is in the best interest of the City and its utility customers to waive certain
provisions of Title 17- Public Utilities and Enterprises, related to penalties, interest and shutoff to
allow a reasonable opportunity for utility customers to get caught up on late payments, and remain
current on current fees for continued water and sewer services at the expiration of the City's
Disaster Declaration.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That notwithstanding KMC 17.05.070 Rules, Regulations and Rates, KMC
17.05.080 Penalty for Late Payment, KMC 17.15.070 Rules Regulations and Rates and KMC
17.15.080 Penalty for Late Payment, as well as any applicable water and sewer regulations, City
of Kenai Utility Customers that certified they were impacted by COVID-19 during the City's
Ordinance No. 3199-2021
Page 2 of 2
declared Disaster Emergency for purposes of City of Kenai utility services will not be assessed
penalty and interest, or be subject to shutoff for late, or non-payment of water and sewer utility
fees incurred during the City's declared Disaster Declaration for a period of 60 days after the
expiration of the City's Disaster Declaration. During this 60 day time period customers may enter
into a payment agreement with the City, which will provide for continued waiver of penalty and
interest of past due amounts incurred during the City's Disaster Declaration subject to
conformance with the terms of the payment agreement, including keeping current of water and
sewer fees incurred after the termination of the disaster declaration. The Payment Agreements
may be for any time period not exceeding two years, and may be conditioned on the signing of a
Confession of Judgment. Nothing in this ordinance, nor in the payment agreement will affect
identical provisions in KMC 17.05.080, and 17.15.080 that provide "overdue and unpaid water
and sewer utility charges, plus any penalty or interest owing, shall become a lien against the
property served." If after 60 days after the expiration of the City's Disaster Declaration, the
customer has not entered into a payment agreement with the City, or if any terms of a payment
agreement with the City are breached, the City will impose penalty and interest on late payments
as of the date of the breach or the end of the 60 day period, whichever is applicable and will
proceed with collections efforts pursuant to City Code and any applicable terms of the payment
agreements.
Section 2. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after enactment or at the end of the City's declared Disaster Declaration, whichever is
later.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7'" day of April, 2021.
ATTEST:
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Heinz, CMC, City Clerk
Introduced: March 17, 2021
Enacted: April 7, 2021
Effective: *,-402Y
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KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-77941907.283.75351 wwwlcenaix ty
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Scott Bloom, City Attorney
DATE: March 5, 2021
SUBJECT: Ordinance 3199 — 2021 City of Kenai Delinquent Utility Accounts
Pursuant to the City's Disaster Emergency Declaration, on March 26, 2020, the City Manager
issued Executive Order No. 2, which provided that penalty and interest would not accrue on
commercial and residential water and sewer accounts and that these services would not be shut
off during the Disaster Declaration as long as the customer certified they were impacted by
COVID-19. This Executive Order, which supersedes City Code, will expire as soon as the
Disaster Declaration expires, and pursuant to City Code, the balance due on delinquent accounts
will begin to accrue penalty and interest and be subject to shut off.
This Ordinance will provide a 60 day grace period at the end of the City Disaster Declaration,
whenever that may be, to allow City water and sewer utility customers to enter into a payment
agreement with the City. The agreements will provide for a two year period in which water and
sewer utility customers may pay late due balances, along with current balances without the
imposition of any penalty or interest and long as the terms of the agreements are complied with.
As part of the payment agreements, the customers will be required to sign a confession of
judgment. If no payment agreement is executed, or the terms of the agreements are breached,
penalty and interest will be imposed on a go -forward basis, and the City will pursue normal
collection efforts.
Your consideration is appreciated