Legal Notice
ORDINANCE NO. 89, 2ND SERIES
AN ORDINANCE OF THE CITY OF ADRIAN, MINNESOTA, AMENDING ADRIAN CITY CODE, CHAPTER 3 ENTITLED “MUNICIPAL UTILITIES – RULES AND REGULATIONS” BY CHANGING SECTION 3.50; AND ADDING SECTION 3.06 TITLED UTILITY GOVERNANCE, FUNDING & ADMINISTRATION; AND, BY ADOPTING BY REFERENCE, CITY CODE CHAPTER l AND SECTION 3.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS.
THE CITY COUNCIL OF THE CITY OF ADRIAN, MINNESOTA, DOES ORDAIN AS FOLLOWS:
Section 1. City Code Section 3.50 is hereby amended as follows;
Remove Subd 2 titled Establishment of a Sewer Service Charge System
Change Subd 3 titled ‘Determination of Sewer Service Charges’ to Subd 2 Determination of Sewer Charges.
To replace the wording in Subd. 2. D and G from ‘sewer service charge’ to ‘sewer charge’
To correct typographical errors in Subd. 2. G 2 and 3
Remove Subd 4. titled Sewer Service Fund
Remove Subd 5. titled Administration
Remove Subd 6. titled Penalties
Section 2. City Code Section 3.06 is hereby added as follows;
Sec. 3.06. Utility Governance, Funding and Administration
Subd. 1. Goverance
A. Historical. The first “Light and Water Commission” was appointed by the Village Council in December of 1937, with an effective date of control of January 1, 1938.
Ordinance 228B was adopted by the City Council on February 21, 1978. This ordinance transferred control of the sanitary sewer system from the City Council to the entity now known as the “Public Utilities Commission”.
B. Commission Composition and Duties. The three – member commission is appointed by, and serves at the will of the City Council.
The Commission is responsible for the operation, maintenance, and improvement of the water, wastewater, and electrical utilities provided by the City.
The Commission shall annually determine whether or not sufficient revenue is being generated for the effective operation and maintenance, replacement, and management of each utility, and whether sufficient revenue is being generated for debt retirement, and adjust rates accordingly.
The Council and Commission share the services of a Public Works Superintendent who is responsible for the daily operation, maintenance and improvement of the Adrian Public Utilities.
Garbage collection and recycling services for City residents are provided by contract with a private sanitation company. This service is an enterprise fund that utilizes the Utility’s monthly billing cycle for the collection of fees. The service contract is administered by the Commission as authorized by Section 3.01 (1) of the Adrian City Code.
Subd. 2. Funding
A. The City hereby establishes an income fund for each of the three revenue – generating utilities operated by the City, i.e. sanitary sewer, water and electrical. Each will receive revenues generated by the monthly billing process, as well as all other income dedicated to the operation, maintenance, and replacement of that utility. This includes taxes, special charges, fees, and assessments intended to retire any indebtedness. Revenue will be placed in income and expenditure accounts established for each utility as:
1. An Operation and Maintenance account.
2. An Equipment Replacement account.
3. A Debt Retirement account.
B. All revenue generated by the monthly billing cycle, and other income including taxes and special assessments dedicated to retire any debt, shall be held by the City separate and apart from all other funds of the City.
Subd. 3. Administration. Utility ac counts shall be administered according to the following provisions:
A. The Administrator/Clerk – Treasurer, or his/her designee, shall maintain a proper system of accounts for each utility suitable for determining the operation and maintenance, equipment replacement, and debt retirement costs, and shall furnish the Public Utility Commission and the Council with a report of such costs annually in December.
B. In accordance with Federal and State requirements, the Administrator/Clerk-Treasurer shall be responsible for maintaining all records necessary to document compliance with established accounting and auditing principles.
C. Monthly Utility Billing – customer billing for utility services shall be rendered on a monthly basis succeeding the period for which service was rendered, and shall be due on the 10th day of the following month. Should the 10th day of the month fall on a weekend or holiday, the time will be extended to 4 p.m. on the next business day. Any bill not paid in full by the due date, will be considered delinquent. At that time the City will notify the owner/occupant in writing regarding the delinquent bill and the subsequent penalty which will be computed as 5% of the original bill.
D. The owner of the premises shall be liable to pay for utility services to such premises as the service is furnished to those premises by the City only upon the condition that the owner of the premises is liable therefore to the City.
E. Any additional costs generated by adverse actions which damage or negatively affect the normal operation of the sanitary sewer system, the water pumping, treatment, storage and distribution system and the electrical generation, switching, distribution system and feeder lines shall be borne by the individual or entity responsible for the damages – at no expense to the City.
Subd. 4. Penalties.
A. As an alternative to levying a lien to recover unpaid utility bills, the City may, at its discretion file suit in a civil action to collect such amounts as are delinquent and due against the occupant, owner, or user of the real estate, and shall collect as well all attorney fees incurred by the City in filing the civil action. Such attorney fees should be filed by order of the court.
B. In addition to all penalties and costs attributable and chargeable to recording notices of the lien or filing a civil action, the owner or user of the real estate receiving utility services from the City shall be liable for interest upon all unpaid balances of 12% per annum.
Section 3. City Code Chapter 1 entitled “General Provisions and Definitions Applicable to the Entire City code including penalty for violation” and Section 3.99 entitled “Violation a Misdemeanor” are hereby adopted in their entirety, by reference, as though repeated verbatim herein.
Passed and adopted by the City Council of the City of Adrian this 22nd day of May, 2017
/s/ Mayor; John W. Faber
ATTEST:
/s/ Bruce A. Heitkamp; Administrator/Clerk-Treasurer
