City of Lake City Wastewater Administration Policies Table of Contents Page Wastewater Application and Contract for Service................................3,4,5,5 Customer Fees, Rates, and Charges.........................................................7,8,9 Wastewater Connection Fees.............................................................10,11,12 Billing and Payment...........................................................................13,14,15 Adjustments to Bills................................................................................16,17 Accounts Collection.......................................................................18,19,20,21 Adjustments to Bills/Leak Adjustments..............................................22,23,24 Connection to the Wastewater System................................................25,26,27 Service to Non-Owner Occupied Property...............................................28,29 Industrial and Commercial Customers................................................30,31,32 Wastewater Service Connection Fees...................33,34,35,36,37,38,39,40,41 Subdivisions and Developers....................................................42,43,44,45,46 Customer Complaints..........................................................................47,48,49 Customer Discrimination................................................................................50 Meetings of the Utility Board..............................................................51,52,53 Utility Records.....................................................................................54,55,56 Alternative Methods for Discontinuance of Service.............57,58,59,60,61,62 Introduction The location and availability of wastewater service, perhaps more than any other utility, controls the development and growth of the city. The city uses wastewater policies to guide the operation, maintenance, and development and growth of the wastewater system. It is important that the staff, health officials, consulting engineers, public officials, and citizens understand the policies and procedures for wastewater service. These policies are intended as a guide for those who use or desire to use the service provided by the City of Lake City and for the staff charged with the responsibility of providing the service. 3 Wastewater Application and Contract for Service Customer Account No._____________ Date Service Requested_____________ It is the policy of the city=s wastewater system to require that the applicant seeking service be the responsible party residing at the service address. Anyone seeking service who is acting on the applicant=s behalf may be required by the city to provide the applicant=s written verification as well as applicant=s identification papers, as required below. Whenever an application is made for service and the city has knowledge of a dispute as to the ownership of the right of occupancy at the service address, and one or more of the claimants attempts to prevent such service being furnished, the city reserves the right to adopt either one of the following two courses: (a) Treat the applicant in actual possession of the premises at the service address as being entitled to such service, notwithstanding the rights or claims of other persons; renters may be required to provide a rent receipt or some other verification of rent. (b) Withhold service pending a judicial or other settlement of the rights of the various claimants. This Agreement, entered into by and between the City of Lake City of Anderson County, Tennessee, a municipal corporation established and existing under the laws of the State of Tennessee, hereinafter referred to as the Acity wastewater system,@ and the applicant, hereinafter referred to as Acustomer@: 4 Full Legal Name(s):_________________________________________________________ Street Address (for service):___________________________________________________ Billing Address (if different):__________________________________________________ Driver License No. (s):_______________________________________________________ Social Security No. (s):_______________________________________________________ Phone No. of Service Address:_________________________________________________ Phone No. of Service Address (if different):_______________________________________ Work/Day Phone No.:________________________________________________________ Emergency Phone No. of Relative Not at Service Address:___________________________ Applicant is: ______Owner _____Renter Service Type: ______Single Family _____Other _____Multi-family ______Industrial ______Commercial ______Home Based Business ______Trailer Park ___________Other Is there any medical reason that service cannot be interrupted? Explain:________________ ________________________________________________________________________ __ ________________________________________________________________________ __ 5 Written verification from a medical doctor is required before a service can be labeled as non-cut-off. In consideration of payment by the Customer of certain fees detailed in the Schedule of Rates and Charges, the city wastewater system agrees to furnish service to the service address listed herein, and the customer agrees to purchase services from the city wastewater system, subject to the terms and conditions herein set forth. 1. The obligations of this contract shall be binding upon the executors, administrators and estate of the original parties, provided that no application, service agreement or service contract may be assigned or transferred without the written consent of the city. 2. It is agreed that if a customer sells, subdivides or leases the property herein described, the customer will notify the city in order that it may execute a new contract with the successor customer. 3. It is understood and agreed that every condition of this contract is of the essence of the contract, and if breached, the city may cut off the wastewater service to the service address and may not be reconnected except by order of the city, after the payment of all rates and charges have been made by the customer. 4. Wastewater services provided by the city shall be supplied only to the applicant at the address named in this contract. The customer shall not connect any other dwelling or property to his service. 5. The wastewater pump and related appurtenances serving the customer=s service address shall remain the property of the city. 6 6. The city or its agents reserve the right to make inspections of the service installation within the customer=s premises upon reasonable notice and at reasonable time. The city assumes no liability for the operation or maintenance of the customer=s plumbing. 7. The customer agrees to keep the property at the service address accessible and free from impediments to city access and maintenance. 8. The city shall have the right to restrict, control or discontinue service at any time during emergencies or repairs. The city shall not be liable for failure to furnish service for any reason beyond its control or for any loss, injury or damage to persons, plumbing or property resulting from such service curtailment or discontinuance. 9. The city makes no guarantees, expressed or implied, as to service quality, quantity, consistency or continuity. 10. The city shall, at its discretion, specify how and what uses may be made of service provided to customer. If the customer fails to comply with the uses so specified, service shall be discontinued. 11. All service lines located on the customer=s side of the pump are the responsibility of the customer. 12. If the customer is connected to a well, the city may charge a minimum fee or at its discretion require the installation of a meter to record water usage. 13. All requests for disconnection of service shall be made in writing or in person if possible. The city will accept telephone requests for discontinuance if caller can give adequate identification. The city will make every effort to respond within a 7 reasonable time. 14. If the applicant fails to connect to the wastewater system when service is available, the customer will pay the minimum bill until such times as the customer installs his service or notifies the city that service is no longer desired. 15. The customer agrees that in the event any utility property or equipment is damaged, destroyed or tampered with by the fault of the customer, it shall be repaired or replaced at the customer=s expense. 16. The city shall have the right to estimate or prorate any bill when conditions beyond the control of the city prevent the normal billing procedure. 17. If the customer after signing this contract does not take the service for any reason, the customer shall reimburse the city for any expenses incurred. 18. The receipt by the city of the application for service of the prospective customer, regardless of whether or not accompanied by payment of fees, shall not obligate the city to render such service. If the service cannot be supplied in accordance with the city=s policies, rules, regulations and general practice or those of any state or federal agency with oversight regarding service, the liability of the city to the applicant for such service shall be limited to return of any fees paid to the city by such applicant. 19. If the city damages any underground facilities the customer cannot locate, the customer will be responsible for all repairs. By my signature, I obligate myself to obey all rules and regulations of the city wastewater system at the service address in accordance with the prevailing rate schedule set by the governing board. In the event of non-payment or unauthorized 8 partial payment, I agree that the city may terminate service and that all unpaid bills are immediately payable by me, including all costs of collection and attorneys fees. It is further understood that the city has the right and shall continue to have the right to make, amend and enforce any policies, regulations or ordinances that may be necessary or proper regarding any wastewater matter. The customer agrees to abide by such policies, regulations or ordinances. Signature:_______________________________________Date:_______________ ____ 9 Customer Fees, Rates, and Charges Background and Purpose It is generally accepted utility practice in the United States that each customer pay his fair share for utility service. Each customer must pay his fair share for service used and for the availability of service. The city's minimum bill covers the costs of the infrastructure and overhead to make service available. Each customer is charged a minimum bill regardless of whether the customer actually uses service during the billing period. The wastewater system is run for the benefit of all present and future customers. While no customer shall be treated unfairly intentionally, no customer shall be treated in any way that compromises the interests of other current and future customers. Limitations The city wastewater system is subject to various city, county, state, federal or other governmental agency requirements and has no discretion to set fees in a manner which would violate these regulations. Record Keeping Duration All records of fees shall be kept for a minimum of ten years. Omissions This policy does not include any provisions for utility deposits which are covered in 10 the Special Deposits Policy. The governing board reserves the right to establish new fees, rates, and charges and to modify existing fees, rates, and charges as it deems appropriate. Policy Charges for New Service 1. Any customer or potential customer desiring wastewater service from this city shall fill out a CUSTOMER APPLICATION FORM. The fee associated with the application is NOT a security deposit and is NOT refundable unless the city cannot, within a reasonable period of time, provide service. 2. No application fee shall be charged to transfer an existing account to a new service and/or billing address (unless it also involves a change in the name of the account-see above), subject to the payment of any tap fees or other fees that may be required. 3. No application fee shall be assessed to a property owner who resumes responsibility for service formerly in the name of a tenant. 4. A tap fee is a charge made when utility service is initially run from the main line to the customer's property line. The ownership of the tap is conveyed along with the property. 5. A residential or commercial/industrial tap shall entitle a customer to utility service to one and only one dwelling or business. If a second residential dwelling or business is to receive service on the same or neighboring tract, a second tap must be obtained. 11 6. If any customer fails to disconnect any additional dwellings during the allotted time period, the customer's service shall be disconnected for violation of the rules and regulations of this city at the convenience of the city. Temporary or Seasonal Charges 7. No application fee shall be assessed to a property owner who resumes responsibility for service formerly in the name of a tenant. 8. The customer shall pay all costs for the discontinuance and reinstatement of service for temporary repairs and for any other purposes for the customer's exclusive benefit. 9. If a customer wishes service to be temporarily turned off, he must contact the city billing office in person or in writing 10. As long as the account is active, a minimum bill will be assessed at each billing period. (The minimum bill reflects each customer's share of the overhead to operate the system). By keeping the account active, the customer can demand service at any time and therefore must share in the costs. Miscellaneous Charges 11. If full payment is not received in the city office by the close of business on the date noted on the bill, the customer must pay the gross amount shown on the bill. 12. Any customer questioning the accuracy of his bill must review the bill with the city billing manager or her designee. The billing manger will review the accuracy of the 12 metered flow with the water utility. If the water utility indicates that the flow reading is accurate, the bill will remain due and payable. 13 13. If a customer=s check is returned to the city by a financial institution for any reason, a fee in the amount of $20 will be added to the amount due. The customer will be notified that the check is being held, and the customer may be required to pay the amount by money order, cashier's check or cash, at the discretion of the billing office staff. 14. When a service request is made after normal operating hours and the problem is with the city system, the city shall bear the expense of the service call. If the problem is found to be on the customer=s side of the sewer system, a sewer back up caused by an obstruction in the customer=s piping, the customer shall pay for the expense of the service call at a rate established by the city board. 15. The city board shall establish service connect and disconnect fees, rates for service and other charges. Such fees and rates may be higher for non residents when in the opinion of the city system costs for service is greater for non residents. When possible, rate studies shall be prepared to establish equitable rates sufficient to pay all expenses of the wastewater system. Policy Adoption Date: __________________ Effective Date: __________________ 14 Wastewater Connection Fees Background and Purpose The wastewater connection fee shall include an equity cost that current customers have contributed to capital over a period of time, the costs for materials, and the actual cost of making the connection, including street repairs when the connection is made in the surface of the street. Each residential, commercial, or industrial unit shall be charged an individual service connection fee or tap fee for each unit. For example a mobile home park with one pump and four mobile homes shall be charged for four service connections or tap fees; it being recognized that the tap is to the wastewater system and not just to the pump. Example: Calculate System Equity Current Assets June 30, 2002 $6,118,113.78 Less grants and contributed capital Net Assets 4,984,613.77 $1,133,500.01 Less liabilities June 30, 2002 $ 324,488.59 Equity or customer ownership $ 809,011.00 Connection Fees $809,011/900 customers = $898.90 per residential customer The wastewater connection fee would be $898.90 plus the cost for the pump, materials, labor, and street repairs. 15 To calculate the usage factor, using a restaurant and the attached explanation of fee calculations: 50 seat restaurant at 20 gallons per day per seat = 1,000 gallons per day. 1,000 gpd x 30 days = 30,000 gallons per month. 30,000 gpm/7,500 gpm residential = 4.0. 4 x $898.90 = restaurant connection fee of $3,595.60. Total fee is $3,595.60 plus the costs for materials, pumps, supplies, labor, street repair and other. 16 Special Deposit Background and Purpose The city's governing board must set rates, fees, and charges to produce sufficient revenues to meet all its obligations, including operating expenses and indebtedness. Based upon its economic experience, a city may adopt a policy dealing with requiring certain customers or accounts to pay to the city a special deposit in addition to those fees normally charged to customers or accounts. The city may require that certain customers pay a special deposit, only after the city has documented through its records that certain types of customers have placed an additional financial burden on its other customers or accounts by not paying their bills. Limitations Because the city has the exclusive authority to provide necessary services, the courts have imposed upon the city the duty to serve without unjust discrimination. No special deposit may be charged unless financial experience establishes that such requirement is not an "unjust" discrimination. The city is subject to federal and state laws governing credit reporting. Seeking, using or giving out information from credit reports in violation of such laws may subject the city and the city=s employee to suit for damages, actual and punitive, costs and attorney's fees. Record Keeping Duration All records regarding special deposits shall be kept indefinitely. Omissions 17 No deposit shall be charged in the absence of a specific rule or policy granting such right. Policy 1. Applicants seeking utility service shall complete the city's customer application or contract. Upon completion of this application or contract the city shall determine if the customer is classified as one of the following types of customers: 2. (a) Renter or Lessee (b) Home-Based business (c) Commercial (d) Multi-Family A special deposit shall be charged to the above selected class(es) of customers. The deposit charged to the above class(es) of customers shall apply to the following services: 3. (a) Water & Wastewater/Residential (b) Water & Wastewater/Commercial $_________ $_________ The following method shall be used to refund customer deposits: Choose one method 18 (a) Deposits shall be held until termination of service. The deposit shall be applied to any outstanding balance on the account and the remainder shall be refunded to the customer. (b) Deposits shall be refunded to customers in _____ year(s) if the customer maintains a good payment history (no late payments or cutoffs for non-payment) for a _____-year period of time. Policy Adoption Date: ______________ Effective Date _______________ 19 Billing and Payment Background and Purpose The customer is responsible for the payment of wastewater service and other duly authorized charges. The city must enforce its discontinuance policy for the nonpayment of wastewater bills. Covenants in the city's bond resolution, grant and loan agreements, and the regulations of the Comptroller of the Treasury require that the city have a discontinuance of service policy in place for the nonpayment of bills and that the city enforce this policy. Record Keeping Duration All records regarding customer billing shall be kept for a minimum of five years. Omissions In the absence of specific rules or policies, the disposition of matters related to customer billing shall be made by the governing board in accordance with its usual and customary practices. Policy 1. Wastewater bills for residences will be rendered monthly. Commercial and industrial customers may be billed monthly or more frequently, at the discretion of the governing board. 2. Wastewater bills shall include a "net" discount amount with a payment due date, after which date the "gross" amount shall apply. 20 3. Shall the date for payment of a bill fall on a week-end or a holiday, the bill may be paid on the following business day at the net amount. 4. When a customer does not pay a bill by the final payment date for the gross amount of the bill, service shall be discontinued in accordance with the wastewater discontinuance of service policy. The customer's bill or final notice of service termination for nonpayment shall advise the customer that any dispute concerning the bill must be reported to the city within five days to avoid discontinuance of service. 5. Utility bills are recognized as a routine bill owed by the customer. The customer's failure to receive a bill does not change in any way the customer's obligation to pay the amount due in a timely manner. Note: The board shall choose one of the following (a or aa): 6. The following bill payment method/locations are acceptable: a. Mail - payment will be posted according to the postmark on the payment. aa. Payment will be posted according to the day it was received. b. Drop-off box - payment posted on business day that box is opened. c. Other designated areas (banks, stores, etc.) - payment posted on day accepted at designated area. 21 7. When a customer receives a final notice and considers the bill to be incorrect, the customer may request a review of the bill. To request a review, the customer must contact any clerical employee of the city in person or by telephone within five days after the date of the final notice. In the event the dispute cannot be resolved by telephone, the customer must make an appointment to meet with a city billing manager authorized to make bill adjustments within ten days of the final notice. The customer's service will not be discontinued for failure to pay a disputed bill until after the customer has the opportunity to meet with the billing manager or her designee. The customer may request that the disputed bill be reviewed by the governing board of the city by serving written notice to the billing manager of the customer's desire to appear before the board. 8. Any check that fails to clear the bank shall be treated as non-payment. If the check is returned because of insufficient funds or any other reason that is the fault of the customer, the date of payment will be deemed to be the date of good and proper payment. If that date falls after the "net" amount date, the customer bill is subject to gross amount charges and check return charges. 9. In the event any customer fails to pay any utility fee or charge, the customer shall pay all costs of collection including court costs and reasonable attorney's fees incurred by the city in collecting such sums. 10. Each customer must give a minimum of seven (7) day=s notice to the city of service termination. The customer will be responsible for all charges which accrue to the end of the seven (7) day period including the minimum charge. 11. Procedure for customer notification of discontinuance of service: 22 a. In person: customer must present acceptable identification. 23 b. Phone, mail or fax: customer must include address, account number, and one other form of positive account identification. Policy Adoption Date:____________________ Effective Date:____________________ 24 Adjustments to Bills Background and Purpose It is generally accepted utility practice in the United States that the customer is responsible for utility service on the customer side of the meter. This includes responsibility for leakage. A customer seeking a leak adjustment shall realize that the water he or she doesn't pay for will be paid for by other customers. The utility is run for the benefit of all present and future customers, and while no customer shall intentionally be treated unfairly, no customer shall be treated in a way that compromises the interests of other customers. Limitations The utility is subject to various state and federal regulations and has no discretion to adjust bills in a manner which would violate these regulations. Record Keeping Duration All records of billing adjustments shall be kept for a minimum of ten years. Omissions In the absence of specific rules or policies, the disposition of billing adjustments shall be made by the Governing Board in accordance with its usual and customary practices. Policy 25 1. It is the policy of the city wastewater system to have the customers of the utility subsidize the bill of any one customer only when there is an inaccurate meter or utility equipment failure. Examples include, but are not limited to the following: (a) damaged meters; (b) frozen meters; (c) leakage on the customer's side of the meter that is caused by the utility. 2. The customers of the utility shall NOT subsidize the extraordinary water use of any one customer if it is caused by other reasons. Examples include, but are not limited to, leaky plumbing fixtures, filling of swimming pools, lawn and garden watering or freezing of pipe or fixtures. 3. Any customer questioning the accuracy of his metered wastewater may ask the water utility to test the meter or replace under the water utilities policies. 4. If an adjustment of the customer's bill is warranted due to an inaccurate meter or due to the failure of equipment that is the responsibility of the utility, the amount of the bill will be determined based on an average for the billing period for the last twelve months. 5. The utility shall not be obligated to make adjustments of any bills not contested after ninety (90) days from the billing date. 6. The utility shall be under no obligation to extend the discount date or the time for paying any bills because the customer disputes the amount of the bill or liability for the bill. 26 Policy Adoption Date:__________________________ Effective Date:__________________________ 27 Accounts Collection Introduction and Application The cost of collection of an account may only be collected if the customer is notified at the time of contracting for service that they are responsible for these fees or for existing customers subject to these policies and regulations. All wastewater customers of the city are subject to these utility policies as they now exist or may be modified from time to time by the governing board. The city shall lock out all disconnected services and require that customers complete an application prior to any new service being provided. The application shall require a social security number, driver=s license number, and address of the person responsible for paying for the service. Multi-unit customers being served by one unit shall not be required to submit an application. The customer making the initial application shall be sufficient to identify who is responsible for the account payment. Background and Purpose It is generally accepted utility practice that each customer must pay his fair share for utility service. When customers skip out on payment or refuse to make payment for services received, they increase the cost of service to all remaining customers. The city shall take every step necessary to collect outstanding balances on accounts to insure that all customers pay their fair share of the cost of services provided. The costs to collect delinquent accounts shall be borne by the customer who has failed to pay. To facilitate collection of these costs, the city may need to modify its current contract for service or its method of establishing new accounts to request information such as social security and/or driver's license numbers. (See sample attached). Limitations 28 The collection of debts is subject to several state and federal laws specifying fair debt collection requirements. A city has no discretion to seek collection in a manner that violates such laws. Bankruptcy When a customer takes bankruptcy, the city shall receive a notice from the customer or from the bankruptcy court. The city shall file a claim for any outstanding accounts with the bankruptcy court. A bankruptcy protects a customer from prior debt. The city shall request that the water utility read the meter immediately. The record shall be marked to indicate the period of time covered by the bankruptcy proceedings. The customer is responsible for all wastewater debts created after the bankruptcy time period and from the date of the new meter reading. The city shall use regular collection policies in collecting new debt incurred after the bankruptcy period. 29 Record Keeping Duration All records regarding account collection shall be kept for a period of six (6) years. Omissions In the absence of a specific rule or policy, the governing board of the city shall resolve issues involving accounts collection in accordance with its usual and customary practices. Policy Accounts cut-off for non-payment or discontinued accounts shall be subject to this policy. 1. Within ____ days after an account has been discontinued or cut off for non-payment, the city shall institute its collection procedure. That procedure shall include the following: Select one option. (a) A letter from the city to the account holder making demand for payment; (b) If payment is not received by the city within (1) ______ business days, or (2) by the next billing cycle, the billing manager shall place the account in one of the following categories for collection: 30 Select one option. (1) The city shall continue to pursue collection by any appropriate action, including but not limited to retaining counsel to pursue possible legal remedies; or, (2) The city billing manager determines that collection is not feasible and recommends that the bill be written off. (3) Collect the debt under an ordinance making it illegal to fail or refuse to pay the sewer bill. (4) As a very last resort, after all other remedies have been exhausted to collect for outstanding wastewater service, the billing manager may recommend that the service be disconnected. 2. At the next regular meeting of the governing board, the billing manager will report: Select one option. (a) The accounts which he has categorized since the last board meeting, noting the method of collection that is being pursued for each account. This report shall include the status of any previously reported accounts that have been collected. (b) The billing manager shall report any accounts that are to be written off to the board. (c) The billing manager shall report on delinquent accounts that remain unpaid and shall be considered for discontinuance of service or for 31 ordinance violation. 3. The Board shall approve or disapprove any determination that an account shall be written off. 4. For those customers who have not paid for wastewater service and whose account is delinquent and discontinuance of service is being considered, the board shall schedule a hearing before the board to give the account owner an opportunity to respond to the fact that the account is delinquent and that discontinuance of service is being considered. Following the hearing, if the customer does not satisfactorily resolve the delinquency, the customer refusing to pay the monthly wastewater fee shall be given a ninety (90) days notice that states that the fees have not been paid, a hearing has been provided before the wastewater board, and service will be discontinued at the end of ninety (90) days unless they are paid. If the customer refuses to pay or does not pay, he shall make other arrangements for wastewater disposal. Send a copy of the notice to the county health officer and the county executive. If the fees remain unpaid, disconnect the service by plugging the building sewer discharge prior to the grinder pump. It is important that you treat every customer who does not pay the same way. Any disconnection of wastewater service may involve some level of risk. The city, including the board and staff, may be negatively criticized for disconnecting an individual=s wastewater service where there are children or elderly people involved or some other hardship. Someone may legally challenge your action to disconnect the service or you may be sued for the action. The city is not under any obligation to provide free wastewater service. Note: MTAS did not find any legal opinions that would authorize a city to disconnect the service, nor did we find any opinions that requires a city to continue to provide the service free of charge. We think that if you give a reasonable notice for the disconnection of service, unless the wastewater fee is paid, your city will 32 be in a better position if challenged. We recommend that you make your decisions based upon the best information that you have, after consulting with your city attorney, after carefully considering state and local laws, your wastewater policies, and upon what is best for your city, and not on the basis that someone is threatening to sue you or the city. You shall not be afraid to do what is best for your city. 5. In the event a complaint has been filed in accordance with the established complaint procedure contesting the propriety of the charges on such account, then collection of such account may not be pursued until the governing board has taken final action on the complaint. 6. Any person(s) on whose account collection procedures have been instituted who has made full restitution to the city and/or its agents will not be refused service. However, the person(s) may be required to pay an additional special deposit or service charge before service is provided, in accordance with the city=s policy. 7. Any fees or additional costs to the city for collection of an account shall be borne by the person(s) whose name(s) appears on the account. 8. The city may report accounts covered under this policy that have not made restitution to a credit reporting agency. Policy Adoption Date: __________________ Effective Date: __________________ 33 Adjustments to Bills/Leak Adjustments Background and Purpose Generally, the customer must pay for all wastewater flows which pass through the customer's water meter provided by the water utility. When a customer does not pay on the basis of all water metered, the cost of such wastewater service must be recovered from other customers. Because an unknown leak may cause an undue burden on individual customers, this policy balances these interests by allowing the customer a leak adjustment under certain circumstances. The city wastewater collection system is run for the benefit of all present and future customers. While no customer shall be treated unfairly intentionally, no customer shall be treated in any way that compromises the interests of other current and future customers. Limitations The city wastewater system is subject to various city, county, state, federal or other governmental agency requirements and has no discretion to adjust bills in a manner which would violate these regulations. Record Keeping Duration All records of billing adjustments shall be kept for a minimum of ten years. Omissions In special circumstances not covered by this policy, the disposition of billing adjustments shall be made by the governing board in accordance with its usual and customary 34 practices. Policy 1. The need to adjust a utility bill may be evident by a customer complaint of excessive billing or evidence of leakage on the customer side of the meter. 2. It is the customer's responsibility to keep his plumbing system in good working order. If the city notifies a customer of a potential leak and the repair is not made within 15 days, there shall be no adjustment for leakage. 3. No customer shall receive more than one adjustment during any one calendar year. 4. The city will communicate with the water utility to investigate the accuracy of the metered water. If an investigation of the meter and meter records establishes that the meter was misread or that there was a failure of utility equipment, a new bill will be issued using an estimated reading based on an average of the past 12 months= billings for this period. There will be no penalty assessed in the event the adjustment procedure delays payment past the penalty date. 5. If an investigation of the meter and meter record establishes that the meter was properly read and that there was no failure of utility equipment, the bill will remain valid and payable. 6. If the customer questions the accuracy of the meter, he shall request the water utility test the meter or replace it. If the meter proves to be accurate within guidelines established by the water utility, it is deemed to be accurate. 7. If an adjustment of the customer's bill is warranted, the amount of the bill will be 35 determined based on an average for the billing period for the last 12 months= billing. Customers with less than 12 months of service shall average the bill for the number of months of prior service. 8. To be adjusted, the leak must not be readily evident to a reasonable person (such as leaks that are underground, within walls or under floors) or the leak must occur while occupants are away from the premises. 9. Adjustments on wastewater bills will NOT be made on the following: (1) Routine dripping faucets, leaking commodes, or any type of faulty customer plumbing; (2) Premises left or abandoned without reasonable care for the (3) More than one occurrence per calendar year; (4) Filling of swimming pools; and (5) Watering of lawns or gardens. plumbing system; Note: The customer may request the water utility install a separate garden, irrigation, or pool meter. The city will not charge a wastewater fee for water that passes through these meters and does not flow into the wastewater system. 10. The city shall not be obligated to make adjustments of any bills not contested within ninety (90) days from the billing date. 36 11. The city shall be under no obligation to extend the discount or due date or the time for paying any bills because the customer disputes the amount of the bill. 12. All requests for billing adjustments must be received by phone, in writing or in person at the business office of the city during regular business hours. 13. When the city suspects leakage on the customer's side of the meter, the city shall attempt to notify the customer by leaving a "door hanger" on the premises or by telephone. The city's attempt to notify the customer of a suspected leak is an accommodation to the customer, not a duty to the customer. When the customer has been notified of a leak or is otherwise aware of a leak and makes no reasonable effort to repair, the city shall not be liable to make any adjustments in the wastewater bill. 14. The billing manager shall file a written report of the customer billing adjustment and the action of the staff regarding the adjustment. Policy Adoption Date: ______________ Effective Date: ______________ 37 Connection to the Wastewater System Background and Purpose It is accepted utility practice in the United States that only one dwelling be allowed to hook on to a single utility service line. The costs of utility service are to be shared as equitably as possible among utility customers. Minimum bills reflect, among other things, the overhead required to keep utility service in place, regardless of whether a particular customer uses the service during a billing period. The fact that service is ready upon demand 24 hours every day to meet a customer's potential needs places financial demands on the system that are generally reflected in the minimum bill. If utilities were to allow more than one customer to hook up to a single service line, several users would be paying only one minimum bill. The legitimate overhead costs of the system would be disproportionately passed on to other customers. In addition, the following circumstances require the city to limit service to one dwelling unit per sewer pump when possible: (a) Pumps and other equipment have a definite capacity and working range. The reliability and life span of the sewer pump equipment may be impaired if not properly sized for projected and actual flows; (b) The cost of electricity is provided by the individual customer. The wastewater system is run for the benefit of all present and future customers, and while no customer shall intentionally be treated unfairly, no customer shall be treated in a way that compromises the interests of other customers. Limitations The city=s wastewater system is subject to various state and federal regulations and has 38 no discretion to offer service in a manner which would violate these regulations. Record Keeping Duration All multiple service connection records shall be kept for a minimum of ten years after termination of service. Omissions In the absence of specific rules or policies, the disposition of multiple connections to one meter shall be made by the governing board in accordance with its usual and customary practices. 39 Policy 1. The wastewater service connection to single family residences shall be limited to serving one residence only. No other dwelling, whether located on the same parcel or on an adjoining parcel, shall be served through the same service connection. Customers may have lines extended to barns and other uninhabited buildings as part of their service, provided that the installation meets the utility's specifications. 2. A residential tapping privilege shall not entitle a customer to connect a commercial or industrial business such as a beauty parlor or repair shop to the city's sewer lines without express approval of the city. 3. Authorized employees, representatives and contractors of the city shall have access to all properties served by the city at reasonable times for the purpose of servicing pumps and equipment, maintaining and inspecting lines and connections to the wastewater system (or those believed to be connected to the system), observation, measurement, sampling and testing as provided by the policies of the city and by state and federal law. 4. The failure of a customer to comply with the provisions of this and other policies of the wastewater system shall constitute a breach of contract by the customer. Any customer found to be violating any provision of this policy shall be served by the city with written notice stating the nature of the violation and providing a time limit for the satisfactory correction thereof. The offending customer shall, within the period of time stated in such notice, permanently cease all violations. 5. Any customer who shall continue any violation beyond the time limit stated in the notice shall be disconnected from the system at the convenience of the city. 40 6. The following residential dwellings shall have a separate wastewater pump for each living unit: (a) Single family dwellings; (b) Commercial and industrial buildings; Note: The city shall determine the number of sewer pumps required for commercial and industrial services based upon the location of buildings, the number of occupants, projected or actual wastewater flows or other factors deemed important by the city. Whether or not a pump is included shall not determine the number of service connection fees charged. 7. The following commercial residential dwellings shall be allowed to maintain multiple living units on one or more sewer pump as expressly approved by the city: 8. (a) Mobile home parks. (b) Apartment buildings. (c) Hotels, motels and campgrounds. All customers who are allowed to receive sewer service to multiple users through a single sewer pump shall be charged commercial rates and a service connection fee or tap fee shall be charged for each individual unit. In addition, the following method of bill computation shall apply: The total usage shall be divided by the number of units, then applying the appropriate commercial rate for the amount prorated for each unit, including the minimum bill, and multiplying the result by the number of units. The total bill shall 41 be the responsibility of the customer who contracted for the metered service. Example: (a) Divide the total monthly bill by the number of units = prorated bill; (b) Figure the prorated bills for each unit as you would any other commercial bill. In effect, the utility charge for each such dwelling unit or business unit thus served will have been computed as if each such unit had received service by separate meters. Policy Adoption Date:________________________________ Effective Date:________________________________ 42 Service to Non-Owner Occupied Property Background Any customer seeking utility service shall be treated courteously and fairly by the governing board, and staff. It is accepted utility practice in the United States that utility service is a contractual relationship between the utility and the person(s) whose name(s) appear on the application for service. The utility will furnish the same service to all customers, regardless of their ownership interest in the property to which service is delivered, with exceptions later detailed. The utility's customer is the person(s) entering into an agreement for service. The customer(s) shall be responsible for timely payment of all fees, rates and charges and abiding by all policies and rules of the utility. The utility is run for the benefit of all present and future customers, and while no customer shall intentionally be treated unfairly, no customer shall be treated in a way that compromises the interests of other customers. Record Keeping Duration All service application records shall be kept for a minimum of ten years after termination of service. Omissions In the absence of specific rules or policies, the disposition of service to renters, lessees and other non-owner occupied property shall be made by the city board in accordance with its usual and customary practices. 43 Policy 1. Any person(s) at least 18 years old who reside(s) or does business within the service boundaries of the city may apply for service with the utility. 2. Persons desiring wastewater service must apply in person at the business office of the city during regular business hours. 3. Each service application must include the following: (a) Applicant's name. The following persons must sign the application for utility service: (1) Residential: Responsible adult residing in the dwelling or landlord/owner of the dwelling. (2) Commercial/Industrial: Any officer of the corporation or the landlord/owner of the building. 4. Landlords may keep utility service in their name and pass the costs of service on to their tenants by including it in the rent or by having the tenant pay the utility bill. 5. Failure of Landlord to Pay or Attempt to Use Termination of Utility Service to Evict Tenants (a) If the landlord fails to pay utility fees or bills on a timely basis or if the landlord requests that utility service be disconnected in order to evict the tenant or for other reasons, the utility will discontinue service 44 in the landlord's name after two business day's notice by either phone or door-hanger notice to the occupants of the building. The utility does not assist in evicting tenants. The landlord must use appropriate legal means for that purpose; (b) In this case, the utility service contract is between the city and the landlord however, since the termination of service to a dwelling or building where an unannounced cut-off may cause an undue hardship or endangerment to life or property, the utility deems it fair and reasonable that two business days= notice be given to tenants in the case where landlords terminate service that is held in the landlord's name. 6. Landlords are responsible for charges to properties where the landlord contracts with the utility as a customer, regardless of who actually used the service. 7. If the utility contract is between the city and the tenant, the landlord has no responsibility for payment of the bill. In this case, a landlord's responsibility would be that of any reasonable person in reporting on a timely basis the abandonment or destruction of utility property by a tenant or other party. 8. Upon proper application for service, tenants will receive utility service. Policy Adoption Date: _______________________________ Effective Date: _______________________________ 45 Industrial and Commercial Customers Background and Purpose The needs of each commercial and industrial customer seeking service from the wastewater system vary greatly and impact the wastewater system differently. Commercial customers whose demand is small may be able to connect to the wastewater's system with no addition to or upgrading of the city's system or other special circumstances. On the other hand, the city may be required to add to or upgrade its system to serve an industrial customer with a large demand. When the city's system must be improved to serve a commercial or industrial customer, the cost of the system improvements to serve the commercial or industrial customer shall be borne by that customer. When the city determines that service to a commercial or industrial customer will require additions to or upgrades of its system, service to the commercial or industrial customer shall be governed by the policy covering Subdivisions and Developers, and the commercial or industrial customer shall enter into a Developer Agreement with such customer in accordance with that policy. In the event service to a commercial or industrial customer may adversely affect the city's existing rate structure, the city may adopt appropriate rates and charges for such customer so that the customer bears the added expense to the city to serve that customer rather than the city's other customers. Should the costs of construction be unusual or other unusual circumstances exist, the city may modify or add to these procedures. In certain cases, to be determined by the city on a case-by-case basis, the city may determine that an Industrial and Commercial Customer Agreement negotiated to meet the needs of their particular situation is more appropriate than a Developer Contract. The Utility is run for the benefit of all present and future customers, and while no customer 46 shall intentionally be treated unfairly, no customer shall be treated in a way that compromises the interests of other current and future customers. Record Retention All applications for service and contracts for service entered into between commercial and industrial customers and the city shall be kept for a minimum of six years after the commercial or industrial customer is no longer a customer of the city. Policy 1. All commercial and industrial customers shall submit an application for service with the city in the form requested by the city. 47 2. If the city can provide service to a commercial or industrial developer without any additions to or upgrading of its system, the commercial or industrial customer shall execute a contract for service and pay all applicable fees under the city's Schedule of Rates and Charges to obtain the service. 3. When the city determines that it must upgrade or make additions to its system to provide service to a commercial or industrial customer, the commercial or industrial customer shall comply with all the requirements for a developer in the city's Subdivisions and Developers Policy. The commercial or industrial customer shall enter into a Developer Agreement with the city in accordance with the city's Subdivisions and Developers Policy. 4. In the event that unusual circumstances exist and the board determines the City's Developer Agreement is not appropriate for the industrial or commercial customer, such customer shall be allowed to enter a separate "Industrial and Commercial Customer Agreement," with provisions tailored to the needs of that particular customer. 5. Where the Board has determined it to be necessary to issue debt or to take from the city=s wastewater reserves or to enter into an Intergovernmental Agreement for debt for the construction of facilities to service the customer, the city may impose a monthly surcharge to the customer that shall include coverage for, though not be limited to, the following: (a) Debt repayment; (b) Required reserves for debt service; (c) Depreciation; 48 (d) 6. Other: _________________________ The customer will be required to pay said monthly surcharge and will be required to post a surety bond with corporate surety authorized to do business in the State of Tennessee or to obtain an irrevocable letter of credit issued by a national bank or a bank authorized to do business in the State of Tennessee to guarantee payment of the surcharge for a period of _______________ years. 7. The city may confer with its attorney during any of these procedures. Upon the city's approval of the plans, specifications and other necessary information, the same will be referred to the city's attorney for the drafting of a contract between the city and the developer. 49 Policy Adoption Date:_________________________ Effective Date:_________________________ 50 Wastewater Service Connection Fees Municipal wastewater connection fees are commonly charged to new customers based upon the existence of a water meter or upon some other basis such as a per unit basis. Some municipalities charge varying rates depending upon the size of the water meter. Wastewater fees shall be fair to residential, commercial and industrial customers. Service connection fees shall be based on the premise of one wastewater connection for one customer. The fee system shall require that the new customer pay for the cost of connecting to the wastewater system. Residential customers shall not be allowed to share a common meter or connection to avoid the rate system designed for the recovery of capital and operating costs. Commercial and industrial customers shall not be permitted to use a single meter or connection to avoid capital and operating costs of the wastewater system. All customers shall be required to pay a minimum wastewater service connection fee. This report will outline a procedure for a wastewater service connection fee, sometimes referred to as a tap fee, based upon equity, the actual cost of making the connection, and usage of the system. The procedure will minimize the often ambiguous application of connection fees to commercial and industrial buildings. The connection fee procedure outlined in the report will treat residential, commercial and industrial customers equally in terms of system usage, equity and cost. The procedure provides flexibility in subsidizing new business development on a case-by-case basis from the city general fund when the city determines it to be in the public interest. 51 The report outlines a procedure that minimizes the need for future rate increases. Equity Service connection fees shall be charged as a means of recovering some of the costs for prior capital expenses and for the actual costs of making the connection. When properly applied, these fees keep the present ratepayers from paying the costs of adding new customers to the system. It is a common practice to base part of these costs on wastewater system equity. Equity represents capital costs that previous customers have already paid for over the years in tap fees and other capital contributions. New customers coming onto the system are required to make a contribution equal to the equity per customer for customers already in the system. Fairness requires that they pay for or buy in to prior capital costs of the system. 52 53 Following is an example of equity per customer: -Assets June 30, 1999 -Liabilities June 30, 1999 Total Equity June 30, 1999 $11,330,869 8,429,243 $ 2,901,625 Equity per customer (Total equity divided by an assumed 3,961 customers) is $732.55. Using this analysis the connection fee would be $732.55 as an equity contribution to capital recovery. This represents previous contributions to capital made by present customers. Installation Costs While the actual installation costs will vary from city to city, this example uses an estimated installation cost of $1,085.08 when made in a paved area and $868.08 when made in a non-paved area. The applicant for a wastewater connection permit may have the option of employing a licensed plumber approved by the city to make the actual installation or pay the estimated Wastewater System costs for the installation. Regardless of the option used the installation shall conform to city standards and specifications. When the applicant furnishes the installation, an inspection fee shall be paid to the city. Additionally the plumber may be required to obtain a street cut permit to insure that the street is properly repaired. Where an existing installation has already been made and the piping has been installed to the property line, there shall be no further charge for actual installation based on units. If only one physical service connection is made in the street surface, no additional charge for installation shall be charged. System Usage 54 In an effort to make the tap fee as fair and objective as possible a method based upon commercial, industrial, and institutional water consumption requirements outlined in State of Tennessee, Department of Environment and Conservation, Design Basis For New Sewage Works is presented. (See attached tables). These consumption standards are commonly used by engineers in designing water and wastewater systems. A city may, on a case-bycase basis, make adjustments in connection fees for targeting business growth. It would seem appropriate that such adjustments be made with contributions from the City=s General Fund so that the integrity of the wastewater rate system is maintained. Now that the equity costs of the wastewater connection fee have been determined and the actual installation costs have been estimated, it is important to address the application of these connection fees to wastewater system customer usage. Using 100 gallons per day of water per person and 2.5 residents per household, average usage is seventy-five hundred (7500) gallons per month. Seventy-five hundred (7500) gallons per month becomes the basic measure of usage associated with one connection or one unit. The application of all other uses will be computed according to the above referenced design standards. Following is a list of standard water consumption requirements and examples of their application to service connection fees: Residential 100 gallons per day per person Apartments and Condominiums 100 gallons per day per person (Based on the number of meters or rental units) Schools 16 gallons per person per day (Based upon projected enrollment) Churches 3 gallons per person per day (Based upon membership enrollment) 55 Hospitals 300 gallons per bed per day Nursing Homes 195 gallons per bed per (Based upon the number of patients) Commercial and Industrial Industrial Plant 30 gallons per day per employee * Laundry 5000 gallons per day * Launderette 250 gallons per day per machine Shopping Center no food 150 gallons per day per 1000 SF floor Retail Store 150 gallons per day per 1000 SF floor* Restaurants 20 gallons per day per seat Motels 38 gallons per room per day Service Station 10 gallons per day per vehicle served * Theater 3 gallons per day per seat Office Building 12 gallons per day per 100 SF* Car Wash 1500 gallons per day per wash rack* Physician=s Office 200 gallons per day per examining room* Child Care Center 10 gallons per day per child and adult *Community Water Systems, Fifth Edition, by Joseph S. Ameen, S.M., Sanitary Engineer. Applications Example: Example. A 10,000 SF office building. The basic equity connection fee, as previously calculated, is $732.50. The number of units is 12 gallons per day per 100 SF (from the above usage standards) or 1200 gallons per day. Multiplied by 30 days in the month the usage is 36,000 gallons per month. Divide this by the 7500-gallon base for each unit or tap and 4.8 units are determined. To determine the connection fee multiply 4.8 times 56 $732.55 and add the costs for actual physical connection fees in the paved or surfaced areas or areas outside paved areas. 57 The connection fee for an office building used in the above example would be as follows: - Installation by the customer 4.8 times 732.55 (equity fee) Installation Provided by Customer Inspection Fee (assumed) Total cost of equity and installation - $3,516.24 0.00 150.00 $3,666.24 Installation by the City 4.8 times 732.55 (equity fee) Installation provided by the City in Street Total cost of equity and installation 4.8 times 732.55 (equity fee) Installation provided by the City out of Street Total cost of equity and installation $3,516.24 1,085.08 $4,601.32 $3,516.24 868.08 $4,384.32 *Additional application examples are included as a part of this report. Summary This wastewater connection fee procedure allows the new customer to pay a share of the capital and capacity costs of the system and pay the actual costs for making the connection. It keeps the present ratepayers from paying the costs of adding new customers and it minimizes the need for future increased wastewater rates. Although these fee structures are more comprehensive than those used by many systems, they are based on system costs and accepted design standards for wastewater usage. The procedure requires that new customers pay their fair costs instead of relying on existing 58 customers to pay the costs. The service connection fee is the sum of the equity contribution and the installation costs plus the standard usage factor. *Wastewater Connection Fees- Additional Application Examples Residential single unit - 100 gallons per day per person. Using 2.5 persons per household for 30 days the monthly water usage is 7500 gallons. This monthly usage represents one equity connection fee. The equity connection fee is $732.55. The cost of actual installation would be added to this fee to establish the wastewater connection fee. Apartments, rooming houses, condominiums, duplexes, triplexes, etc. - Each unit is assessed a fee of $732.55. The actual cost of installing the connection is added to the fee. These are treated just like a single residential unit. 59 Barber Shop - 100 gallons per day per chair. Using 2 chairs, 100x2x30days equals 6000 gallons per month usage. 6000 gal./7500 residential base usage equals.8 connections. The connection fee would be $586.04 plus the actual cost of installation. Beauty Shop -125 gallons per day per chair. Using 4 chairs, 125x4x30days equals 15,000 gallons per month usage. 15,000 gal/7500 residential base usage equals 2 connections. The connection fee would be 2x732.55 or $1,465.10 plus the actual cost of installation. Dentist Office - 750 gallons per day per chair. Using 2 chairs, 750x2x30days equals 45,000 gallons per month usage. 45,000 gal/7500 residential base usage equals 6 connections. The connection fee would be 6x732.55 or $4,395.30 plus the actual cost of installation. Department Store - 40 gallons per day per employee. Using 4 employees, 40x4x30days equals 4800 gallons per month usage. 4800 gal/7500 residential base usage equals .64 connections. The connection fee would be .64x732.55 or $468.83 plus the actual cost of installation. Drug Store - 500 gallons per day. 500x30days equals 15,000 gallons per month usage. 15,000 gal./7500 residential base usage equals 2 connections. The connection fee would be 2x732.55 or $1,465.10 plus the actual cost of installation. Church - 3 gallons per day per member. Using 300 members, 3x300x30days equals 27,000 gallons per month usage. 27,000 gal./7500 residential base usage equals 3.6 connections. The connection fee would be 3.6x732.55 or $2,637.18 plus the actual cost of installation. If the connection serves a separate building at the church an estimate of the number of people who will use the building shall be used for the number of members. 60 Schools - 16 gallons per day per person. Using 300 enrollment, 16x300x30days equals 144,000 gallons per month usage. 144,000 gal/7500 residential base usage equals 19.2 connections. The connection fee would be 19.2x732.55 or $14,064.96 plus the actual cost of installation. Hospitals - 300 gallons per day per bed. Using 100 beds, 300x100x30days equals 900,000 gallons per month usage. 900,000 gal/7500 residential base usage equals 120 connections. The connection fee would be 120x732.55 or $87,906 plus the actual cost of installation. Nursing Homes - 195 gallons per day per bed. Using 25 beds, 195x25x30days equals146,250 gallons per month usage. 146,250 gal./7500 residential base usage equals 19.5 connections. The connection fee would be 19.5x732.55 or $14,284.73 plus the actual cost of installation. Laundry - 5,000 gallons per day. 5,000x30days equals 150,000 gallons per month usage. 150,000 gal./7500 residential base usage equals 20 connections. The connection fee would be 20x732.55 or $14,651.10 plus the actual cost of installation. Launderette - 250 gallons per day per machine. Using 10 washing machines, 250x10x30days equals 75,000 gallons per month usage. 75,000 gal./7500 residential base usage equals 10 connections. The connection fee would be 10x732.55 or $7,325.55 plus the actual cost of installation. Shopping Center - 150 gallons per day per 1,000 SF. Using 20,000 SF, 150x20x30days equals 90,000 gallons per month usage. 90,000 gal./7,500 residential base usage equals 12 connections. The connection fee would be 12x732.55 or 61 $8,790.60 plus the actual cost of installation. Restaurant - 20 gallons per day per seat. Using 40 seats, 20x40x30days equals 24,000 gallons per month usage. 24,000 gal./7500 residential base usage equals 3.2 connections. The connection fee would be 3.2x732.55 or $2,344.16 plus the actual cost of installation. Motel - 63 gallons per day per room. Using 50 rooms, 63x50x30days equals 94,500 gallons per month usage. 94,500 gal/7500 residential base usage equals 12.6 connections. The connection fee would be 12.6x732.55 or $9,230.63 plus the actual cost of installation. Office Building - 12 gallons per day per 100 SF. Using 10,000SF, 12x100x30days equals 36,000 gallons per month usage. 36,000 gal./7500 residential base usage equals 4.8 connections. The connection fee would be 4.8x732.55 or $3,516.24 plus the actual cost of installation. Car Wash - 1,500 gal per day per wash rack. Using 6 wash racks, 1,500x6x30days equals 270,000 gallons per month usage. 270,000 gal./7,500 residential base usage equals 36 connections. The connection fee would be 36x732.55 or $26,371.80 plus the actual cost of installation. Physician=s Office - 200 gallons per day per examining room. Using 4 rooms, 200x4x30days equals 24,000 gallons per month usage. 24,000 gal./7500 residential base usage equals 3.2 connection fees. The connection fee would be 3.2x732.55 or $2,344.16 plus the actual cost of installation. Child Care Center - 10 gallons per day per child and adult. Using 20 persons, 62 10x20x30days equals 6,000 gallons per month. 6,000 gal./7500 residential base usage equals .8 connections. The connection fee would be .8x732.55 or $586.04 plus the actual cost of installation. Service Station - 10 gallons per day per vehicle. Using 75 vehicles, 10x75x30days equals 22,500 gallons per month usage. 22,500 gal./7500 residential base usage equals=3 connections. The connection fee would be 3x732.55 or $2,197.65. 63 Wastewater Line Extensions Background and Purpose In order for the city to serve the public and to comply with the regulations and laws of the State of Tennessee and the federal government, the city shall adopt a policy dealing with utility line extensions. The city=s governing board must set rates, fees and charges to produce sufficient revenues to pay for operating expenses and to amortize the indebtedness of the city. This policy is to be used for extensions to be made into a developed area, not for new or planned developments. The city may require that customers who seek an extension of the city=s wastewater lines pay their fair share of the cost of construction of such lines. Should such cost of construction be unusual or other unusual circumstances exist, the city may modify or add to these procedures. The determination of unusual circumstances will be made by the city on a case-by-case basis. The wastewater system is run for the benefit of all present and future customers. While no customer shall be treated unfairly intentionally, no customer shall be treated in any way that compromises the interests of other current and future customers. Limitations The city=s wastewater system is subject to various city, county, state, federal or other governmental agency requirements and has no discretion to provide service in any manner which would violate such regulations or requirements. Record Keeping Duration All records regarding line extensions shall be kept indefinitely. 64 Omissions In the absence of specific rules or policies, the disposition of situations involving utility line extensions shall be made by the governing board in accordance with its usual and customary practices. Policy This policy does not apply to extensions which are part of a new subdivision or development. (Option 1) 1. Applicants seeking the extension of utility lines shall present to the city a petition for extension of such lines. The petition shall include the following information: (a) Name, address ("911" address or street address), and phone number of each applicant requesting service; (b) Name and address of nearest person that utility now serves; (c) Type of service(s) requested (residential, commercial, fire protection, etc.); (d) A rough map with the approximate location of the applicant(s) to be served; (e) Date service is desired; 65 (f) 2. Payment of any required petition fees. Within _____ days of receipt of the petition, the manager or his designee will make a preliminary estimate of the cost of the extension. 3. Line extensions may be considered for construction when the governing board or its designee determines an extension meets the following criteria: (a) The number of applicant(s) per mile is greater than _____ applicants per mile; (b) The cost per foot per applicant of the extension does not exceed $___ per foot; (c) Adequate capacity of the system or the line(s) to be connected to is available; (d) The extension is judged to be operationally feasible; (e) Adequate funds for construction of the extension are available to the city. 4. If the proposed extension does not meet the requirements of paragraph 3(a) and 3(b), the applicant(s) may be presented with the following options at the discretion of the Board or its designee: (a) Applicants may make an additional contribution in a specified amount 66 per applicant for construction; (b) Applicants may contribute labor, equipment and/or material to offset the cost; (c) Construction may be delayed pending the availability of a grant; (d) The customer may enter into an agreement with the city to install the extension to the city's specifications and then on completion and upon acceptance by the city, the customer(s) will convey the extension to the city. 5. When the criteria in paragraph 3 are met or when the applicants comply with the option or options selected by the Board in paragraph 4, the applicant(s) shall: (a) Complete the city=s customer application or contract for service; (b) Grant the city the necessary easement(s) on their property; (c) Pay all fees and charges (tap fees, service charges, etc.); (d) Comply with the option or options determined by the Board or its designee necessary to make the main extension. 6. After the above is completed, the city will then have the extension designed and installed in a timely manner. 7. If for any reason not caused by the applicant(s) the project is not constructed, all 67 fees and payments will be refunded to the applicant(s). Policy Adoption Date: __________________ Effective Date: __________________ 68 Subdivisions and Developers Background and Purpose In order for the city to serve the public and to comply with the regulations of the Environmental Protection Agency and the Tennessee Department of Environment and Conservation and other state and federal regulations, the city must establish rates, fees and charges to produce revenue sufficient to meet all its obligations. The city=s governing board must set rates, fees, and charges to produce sufficient revenues to pay for operating expenses and to amortize the bond indebtedness of the city. The city will require that developers who seek to profit from residential or commercial construction pay their fair share of such costs. Should the costs of construction be unusual or other unusual circumstances exist, the city may modify or add to these procedures. The determination of unusual circumstances will be made by the city on a case-by-case basis. The city wastewater system is run for the benefit of all present and future customers, and while no customer shall intentionally be treated unfairly, no customer shall be treated in a way that compromises the interests of other current and future customers. Limitations The city is subject to various city, county, state, federal or other governmental agency requirements and has no discretion to provide service in a manner which would violate such regulations or requirements. Record Keeping Duration All records regarding subdivisions and developers contracts shall be kept indefinitely. 69 Omissions In the absence of specific rules or policies, the disposition of situations involving service shall be made by the governing board in accordance with its usual and customary practices. Policy 1. The costs and expenses incidental to the installation, connection, and inspection of city wastewater service facilities for residential subdivisions and commercial developments shall be borne by the developer. In addition, the developer shall indemnify the city from any loss or damage that may directly or indirectly result from the installation of wastewater lines and other facilities by the developer for a period of one year after city=s acceptance of the facilities. 2. A developer seeking to obtain service from the city will submit to the city a preliminary plat, which shall include the number, size and estimated cost of each unit and any other information that will assist the city in making a determination of availability of service. Each plat shall show the number of units and size (single family, duplex, etc.) to be served in the development. The developer or his assignee will be responsible for obtaining all easements. 3. Upon receipt of the documents required by Paragraph 2 herein, and the determination that the development is to be pursued, the city may select to submit the documents to its engineer for the preparation of plans and specifications or may 70 select to accept plans and specifications submitted by the developer for review and approval by the city=s engineer. 4. The city may confer with its attorney during any of these procedures. Upon the city=s approval of the plans, specifications and other necessary information, the same will be referred to the city=s attorney for the drafting of a contract between the city and the developer. 5. Before any work is begun on any project, the appropriate contract shall have been signed by the city and the developer. The developer shall notify the city of the proposed starting date of construction and all progress thereon shall be reported weekly to the city. 6. The developer shall obtain all permits (building, plumbing, electrical, etc.) to serve these facilities and shall comply with the requirements of all other governmental agencies having jurisdiction. When the plan calls for the installation of mains under streets to be opened and dedicated within the development, the developer shall execute a Deed of Dedication to the city of 50-foot easements within which such lines are to be installed or shall execute a deed conveying in fee simple the property within which such lines are to be installed. The deeds are to be executed before trenching for the installation of such lines. These deeds shall describe the easements and property of reference in the book and page of the recorded plat. 7. The city=s policies regarding the requirement of easements are as follows: (a) All system improvements including storage tanks, access roads, or pumping stations and other facilities shall be constructed on easements approved by the city or on property conveyed in fee 71 simple to the city. (b) All easements shall be obtained by the developer or his agent. (c) All easements shall be shown on all final subdivisions plats before the plat will be approved by the city. (d) Any easements that are required outside a proposed development shall be obtained by the developer or his agent prior to the initiation of system construction, except those covered in (e) below. (e) If a line within a public right-of-way must be extended to bring service to a new development, the city may make application to obtain the necessary permission to use such public right-of-way from the state, county, or other governmental authority having jurisdiction over the particular right-of-way. 8. The developer will pay the city for plans and review fees related to water and wastewater plans. After the city=s engineer has either prepared the plans and specifications or reviewed and approved the developer's plans and specifications, or the city has accepted said plans and specifications, the city will send the plans and review fee to the Tennessee Department of Environment and Conservation for approval. 9. The city will approve a final plat provided: (a) all system improvements have been constructed and the plat constitutes an Aas-built@ condition; or 72 (b) the developer gives the city a bond or letter of credit for 100% of the construction costs of proposed improvements as estimated by the city or the city=s engineer. The city shall hold the bond until all improvements are constructed in full adherence to the plan or until a corrected and amended plat is recorded noting all differences from the original plan. No service shall be initiated within a platted subdivision or development of any kind until either (a) or (b) above are completed to the satisfaction of the city. The city, in writing, may waive the bond for contracts under $25,000. 10. Prior to the execution of a contract for over $25,000, the city shall require the developer to post a bond with corporate surety authorized to do business in the State of Tennessee or obtain an irrevocable letter of credit issued by a national bank or a bank authorized to do business in the State of Tennessee for the costs to construct the system improvements to serve the development. The city may authorize reduction of the bond or letter of credit on the basis of certification by the city=s engineer as to percentage of completion of the project as designed by such engineer, with the bond to be reduced to 50% after the project shall be certified as 65% complete, reduced to 25% upon certification that the construction is 90% complete and to 10% upon certification that the construction is 100% complete, subject only to acceptance by the city. 11. No utility lines or other facilities shall be covered prior to inspection and approval by the city. 12. Where private lines are permitted by the city and are not to be dedicated to the city, the city=s engineer shall check and approve these lines. 73 13. Prior to the execution of the contract, the developer must pay all fees and charges currently established by the city for the developer which may include but are not limited to the following: 14. (a) All Tap Fees; (b) Connection Fees; (c) Storage Fees; (d) A Security Deposit or Non-Refundable Service Charge; (e) Plan Review Fees; (f) Other: ________________________________________________ Upon execution of the contract, the developer will make a non-refundable payment to the city of 50% of the estimated costs of utility construction covered under this contract for engineering, inspection, legal, and administrative expenses. 15. The developer will be permitted to connect to the city=s existing lines provided the lines extended to and throughout the development shall become the property of the city free and clear of the claims of any persons or entities, except as provided otherwise herein. The contract entered between the parties shall operate as a conveyance of the facilities when the same are installed and accepted without the necessity of any 74 further writing, contract or deed; however, the city may also require a deed of exchange thereof. 16. The Board shall select one of the following options: (a) All wastewater pumps and appurtenances, and services will be installed and purchased by the developer. (b) All service settings and services will be installed and purchased by the developer. The developer will furnish a grinder pump or pumping station approved by the city for installation. 17. Each family residence or duplex shall be served with a separate meter of a minimum size specified by the city. 18. Apartment complexes or other types of dwellings or businesses shall be served by a meter of a size approved by the city. Policy Adoption Date:____________________ Effective Date:____________________ 75 Customer Complaints Background and Purpose Certain utilities are required by state statute, and/or other rules and regulations to enact a Customer Complaint Policy. Each utility must satisfy the particular statutes, rules or regulations which govern it and must enforce such policy equally as to all customers. Record Keeping Duration All records regarding customer complaints shall be kept a minimum of 10 years. Omissions In the absence of a specific rule or policy provision, the disposition of situations involving complaints shall be made by the governing board in accordance with its usual and customary practices. Policy 1. Complaints concerning the availability of service, the quality of service performed, the amount of a bill, and all other complaints may initially be made to any regular clerical employee in the city's office or to the wastewater billing manager or public works director. 2. Regular clerical employees are authorized to make adjustments to bills provided the clerical employee can ascertain that a bill is erroneous because of a bookkeeping, accounting error or meter reading error. 76 3. The billing manager is authorized to resolve all complaints relating to the billing office and the public works director is authorized to resolve routine field complaints. 4. Certain customer complaints shall be maintained in a file or log designated Customer Complaints. Such shall contain the name of the person complaining, the date of the complaint, a brief summary of the complaint and a summary of the action taken by the city in response to such complaint. The following specifies what will be considered a complaint for purposes of logging: (a) Inquiries. 77 1. Inquiries not required to be logged - When the city receives an inquiry by phone or in writing from a customer concerning the routine operation of the wastewater system and such inquiry is handled to the customer's satisfaction, such inquiry shall not be considered a complaint under this policy EXCEPT; 2. Inquiries which must be logged - All inquiries concerning water pollution or overflow conditions shall be considered complaints and must be logged. (b) Complaints. All complaints must be logged - All complaints must be in writing. Any Customer indicating the desire to pursue a complaint must submit the complaint in writing to the office of the billing manager. 5. The billing manager or the clerical employee acting on his behalf shall notify the complaining party of the disposition of his or her complaint by telephone, electronic mail, letter, or otherwise within ten (10) days after receipt of the complaint, excluding Saturdays, Sundays, holidays, and any periods during which the billing manager may be unable to act upon the complaint because of his absence from the office. 6. If the complaint is one which the billing manager or public works director is not authorized to resolve or if the their action on the complaint is unacceptable to the customer, the customer may request review by the board. At the complaining party's request, the billing manager shall schedule the complaint for consideration at the Board's next meeting and shall inform the complaining party of the time and 78 place of the meeting. The customer may appear in person before the board or may request that the complaint be submitted to the board without his presence. The customer shall be notified of the disposition of the complaint in accordance with paragraph 5 hereof. 7. When a customer or complaining party shall appear at a board meeting to make a complaint without previously submitting the complaint to the billing manager or public works director, the board may require the complaining party to present the complaint to the billing manager or public works director in accordance with the procedures set forth in this rule so the board may be fully informed of the facts before resolving the complaint. In its discretion, however, the board may hear and act upon such a complaint when presented. 8. If the complaining party appears at a board meeting to seek review of a complaint, the board may defer hearing the complaint until a subsequent meeting to allow an opportunity to locate and prepare materials concerning the complaint. 9. All notices, statements, requests and other communications from the wastewater system to the customer shall be deemed properly given if provided in writing and delivered personally, attached in plain view on the front or main door of the customer's dwelling, or sent by U.S. Mail or by electronic mail. The customer's refusal to accept such communication shall be deemed receipt. Policy Adoption Date: _____________________ Effective Date: _____________________ 79 Customer Discrimination Background and Purpose Some, but not all, utilities are subject to one or more state and/or federal laws prohibiting discrimination. Utilities that receive federal financial assistance through Rural Development or other governmental funding, grant or loan programs are subject to certain antidiscrimination requirements regarding the provision of services, programs or other benefits. This policy is created to comply with those requirements. Record Keeping Duration Records related to the provision or denial of programs, benefits or services upon which a claim of discrimination could potentially be based shall be maintained for one (1) year or six (6) months beyond the date an individual receives a right-to-sue letter. For federal financial assistance requirements, reference shall be made to the funding documents. Omissions This Discrimination Policy covers only customers and potential customers. Policy In providing its services to all persons within the service area who can feasibly and legally be served, the UTILITY will not discriminate against any individual on the basis of his or her race, color, national origin, physical disability, religion, age or sex. 80 Policy Adoption Date:____________________ Effective Date:_____________________ 81 Meetings of the Utility Board Background and Purpose Cities in Tennessee are units of local government, subject to the open meetings law. This so-called "Sunshine Law" specifies that all meetings of public bodies, including utility boards, shall be held at specified times and places which are convenient and open to the public. Such meetings shall be preceded by advance public notice. Record Keeping Duration All meeting records shall be kept permanently. Omissions In the absence of specific rules or policies, the conduct of city wastewater meetings shall be determined by the Governing Board. Policy 1. The regularly scheduled meeting of the city governing board will be held at Luttrell City Hall on the first Monday of each month. In the event that the regularly scheduled meeting falls on a holiday, the meeting will be held on a day set by the board. 2.All meetings of the Governing Board shall be open to the public. 3.Prior to each meeting the billing manager/recorder shall cause notices that include the 82 location, day and time of each meeting to be advertised as follows: REQUIRED BY CODE (a) Printed on each customer bill. RECOMMEND (b)Published in a newspaper of general circulation in each county in the city's service area. 4.Special meetings of the Board shall be called by the board secretary at such time as may be fixed by the chairman or upon the written request of any two members of the board. Notice of such meetings shall be given in writing to all board members, stating the purpose of which the meeting is called, as well as the location, date and time of the meeting. At least three days prior to each special meeting the billing manager/recorder shall cause notices that include the location, day and time of each special meeting to be published in a newspaper of general circulation in each county in the city's service area, unless the special meeting is due to an emergency. In the event the urgency of a special meeting does not permit the publication of notice in the newspaper, the press shall be notified, and notice shall be given by posting in three or more public places, including one public posting in each county served by the city wastewater system. 5. The chairman shall preside at all meetings of the board except that in his absence the attending members of the board shall elect a temporary chairperson to preside at 83 any such meeting. 6. The secretary of the board shall be responsible for taking minutes of each meeting. In the secretary's absence, the presiding officer shall appoint a person to assume the role of board secretary for the meeting. 7. The proceedings of all meetings of the board shall be kept accurately by the secretary and shall be verified and signed by the presiding officer. The minutes shall include, but not be limited to, the following, as required by Tennessee Code Annotated 844-104; (a) A record of persons present; (b) All motions, proposals and resolutions offered; (c) Results of any votes taken; (d) Record of individual votes in event of a roll call. 8.The minutes of all board meetings shall be kept in well-bound permanent volumes and shall constitute a permanent record of the board. 9. The order of business at all meetings other than special meetings of the board shall be as follows: (a) Roll call and determination of quorum; (b) Reading of the minutes of the preceding meeting; 84 (c) Reports of officers and committees; (d) Unfinished business; (e) New business; (f) Adjournment. Policy Adoption Date: _____________________ Effective Date _____________________ 85 Utility Records Background and Purpose Utilities in Tennessee must abide by the Public Records Act, TCA 10-7-101 - 606. Generally, this Act requires that most utility documents must be open for public inspection by any citizen of Tennessee. The utility is run for the benefit of all present and future customers, and while no customer shall intentionally be treated unfairly, no customer shall be treated in a way that compromises the interests of other customers. Limitations The utility is subject to various state and federal regulations and has no discretion to provide or withhold utility records in a manner which would violate these regulations. Record Keeping Duration There is no obligation to keep records of requests of utility records. Omissions In the absence of specific rules or policies, the disposition of situations involving requests of utility records shall be made by the governing board in accordance with its usual and customary practices, within the guidelines of state and federal law. Policy 86 1. All state, county and municipal records... shall at all times, during business hours, be open for public inspection by any citizen of Tennessee, and those in charge of such records shall not refuse such right of inspection to any citizen, unless otherwise provided by state law. [TCA 10-7-503] 2. Public records... mean all documents, papers, letters, maps, books, photographs... electronic data... sound recordings or other material regardless of physical form or characteristics made or received pursuant to law or ordinance or in connection with the transaction of official business by any governmental agency. [TCA 10-7301(6)] 3. In accordance with state law, the following is an example of utility records subject to public inspection: 87 Customer Records (a) Customer bills and usage records; (b) Customer mailing lists; (c) Customer payment delinquencies, cut-offs and payment histories. General Utility Records 4. (a) Minutes of meetings of the governing board; (b) Real and personal property records of the utility; (c) Purchases; (d) Accounting and bookkeeping records; (e) Plans, maps and engineering records; (f) Operations and safety records and reports. Records which are not subject to public inspection include the following: (a) Records relating to drug tests of employees; (b) Records relating to an employee's treatment in a state or local government Employee Assistance Program; 88 (c) 5. Medical records restricted by the Americans with Disabilities Act. Prior to divulging any employee medical records, the board or its designee shall consult with the utility attorney. 6. Any customer or other state citizen requesting utility records will be provided them at the convenience of office staff, or at least within three working days for all reasonable requests. 7. Original records are not to be taken from the utility office except by court authority. 8. Photocopies of records will be made available by the utility at the rate of 50 cents per one-sided page or as otherwise priced from time to time by the governing board. 9. Computer disc copies will not be made available to the public [TCA 10-7121(a)(2)]. Policy Adoption Date: Effective Date: _______________________________ _______________________________ 89 Alternative Method for Discontinuance of Service ORDINANCE NO.__________ AN ORDINANCE TO MAKE IT AN OFFENSE TO FAIL OR REFUSE TO PAY THE SEWER BILL, AND TO PROVIDE REMEDIES FOR SUCH FAILURE OR REFUSAL. Section 1. It shall be unlawful, and a civil offense, for any person, firm, or corporation, association, or any other person or organization, who receives city sewer service to fail or refuse to pay for such service. Section 2. The city shall have the following remedies in the event of the failure or refusal on the part of any person, firm, corporation or any other person or organization who receives city sewer service to pay for such service: (A) Collect the amount owed by such customer as a civil debt. (B) Cite such customer into the municipal court, and upon conviction, impose a civil penalty as provided by law. Each day a violation is allowed to continue shall constitute a separate offense. (C) Termination of sewer service, as follows: (1) Written notice of the termination (cut-off) shall be given to the customer at least five (5) days prior to the scheduled date of the termination. The cut-off notice shall specify: (i) the reason for the cut-off; (ii) the 90 amount due, including late charges and any other charges; (iii) the last date to avoid service termination charges; (iv) notification that the customer has a right to a hearing prior to service termination, and the availability for special counseling for emergency and hardship cases. (2) The employee carrying out the termination procedure will attempt before disconnecting service to contact the customer at the premises in a final effort to collect payment and avoid termination. (3) Hearings on service terminations as provided for in (1)(iv) above will be held by appointment at the city=s sewer service office between the hours of 8:00 A.M. and 4:30 P.M., on any business day, or at other hours by special request of the customer. Such hearing shall be conducted by the billing manager. (4) Termination will not be made on any day preceding the day when the sewer department is scheduled to be closed. (5) If the customer does make payment of the bill, or does not request a termination hearing, the sewer department shall proceed on schedule with the termination of sewer service, as provided for in this section. 91 (6) Sewer service will be reconnected only after the payment of all sewer charges, including late charges and any other charges, or only after satisfactory arrangements for payment of the same shall have been made, plus the payment of a reconnection charge of $___________. Section 3. The city shall have the right to use the above remedies prescribed for the failure or refusal to pay sewer bills collectively or selectively, and in any and all combinations. In addition, the use of any or all of the above remedies by the city shall not foreclose its right to use any other remedy that might now or in the future be authorized under state law. Section 4. This ordinance shall become effective after it or its caption is published in a newspaper of general circulation within the city, following its final passage. Passed first reading this ________ day of _________________________, 1999. Passed second reading this __________ day of ________________________, 1999. ____________________________________________________ (Mayor) _____________________________________________________ (Recorder) 92 93 Policy This policy does not apply to extensions which are part of a new subdivision or development. (Option 2) 1. Applicants seeking the extension of utility lines shall present to the city a petition for extension of such lines. The petition shall include the following information: (a) Name, address ("911" address or street address), and phone (b) Name and address of nearest person that the wastewater system now number of each appli serves; (c) Type of service(s) requested (residential, commercial, fire (d) A rough map with the approximate location of the applicant(s) to be served; 2. (e) Date service is desired. (f) Payment of any required petition fees. Within _____ days of receipt of the petition, the Board or its designee will: (a) Make a preliminary estimate of the cost of the extension; protection, etc.); 94 (b) Determine whether adequate capacity of the system or of the interconnecting line(s) is available; (c) 3. Determine whether the extension is operationally feasible. If it is determined that the extension meets the above requirements, the applicant(s) shall: (a) Complete the city's customer application or main extension contract; (b) Grant the city the necessary easement(s) on their property; 95 (c) Pay to the city the total estimated cost of the extension which shall include, but not be limited to, the following: (1) All fees and charges (tap fees, service charges, etc.); (2) Cost of all materials; (3) Installation costs; (4) Cost of obtaining easements; (5) Engineering expenses; and (6) Any other costs involved in the construction of the extension. 4. On completion of the requirements of paragraph 3, the city will have the extension designed and installed. 5. Shall the actual cost of the extension be less than the estimated cost, the city will refund to the applicant(s) the difference. Shall the actual cost exceed the estimated cost, the applicant(s) shall pay the additional cost in accordance with the main extension contract. 6. If for any reason not caused by the applicant(s) the project is not constructed, all fees and payments will be refunded to the applicant(s). Policy Adoption Date: __________________ Effective Date: __________________ 96 Policy This policy does not apply to extensions which are part of a new subdivision or development. (Option 3) 1. Applicants seeking the extension of utility lines shall present to the city a petition for extension of such lines. The petition shall include the following information: (a) Name, address ("911" address or street address), and phone (b) Name and address of nearest person that the utility now number of each appli serves; 2. (c) Type of service(s) requested (residential, commercial, fire protection, etc.); (d) A rough map with the approximate location of the applicant(s) to be served; (e) Date service is desired. (f) Payment of any required petition fees. Within _____ days of receipt of the petition, the Board or its designee will: (a) Make a preliminary estimate of the cost of the extension. (b) Determine whether adequate capacity of the system or of the interconnecting line(s) is available. 97 (c) 3. Determine whether the extension is operationally feasible. If it is determined that the extension meets these requirements, the applicant(s) shall: (a) Complete the city's customer application or main extension contract. (b) Grant the city the necessary easement(s) on their property. (c) Pay to the city the total estimated cost of the extension which shall (1) All fees and charges (tap fees, service charges, etc.); (2) Cost of all materials; (3) Installation costs; (4) Cost of obtaining easements; (5) Engineering expenses; and (6) Any other costs involved in the construction of the extension. 4. On completion of the requirements of paragraph 3, the city will have the extension designed and installed. 5. Shall the actual cost of the extension be less than the estimated cost, the city will 98 refund to the applicant(s) the difference. Shall the actual cost exceed the estimated cost, the applicant(s) shall pay the additional cost in accordance with the main extension contract. 6. If for any reason not caused by the applicant(s) the project is not constructed, all fees and payments will be refunded to the applicant(s). Optional: 7. If within a/an _____ year period, beginning with the date the extension is completed, service is provided directly from said extension to any property which had not previously received service from the city, the city will collect from new customers connecting to the line a prorated cost of the extension and shall refund the amount collected to applicant(s) on the same prorated basis as payment was made for such extension. Policy Adoption Date: __________________ Effective Date: __________________