City maintains status quo for tenants' delinquent utility bills
Marion City Commission decided to exercise its "home rule" authority by overriding a state statute.
City attorney Dan Baldwin was instructed to draw up a charter ordinance regarding landlords and their tenants' city bills.
A change in the state's legislature deemed the city's current ordinance of requiring landlords to be responsible for their tenants' unpaid electrical, sewer, and water bills to be invalid. New legislature only allowed landlords to be responsible for electricity, not sewer and water.
The commission was faced with the dilemma of deciding whether to make policy changes or maintain the current policy.
Landlords who attended previous commission meetings were vehemently opposed to their being held ultimately accountable for the renter's debts.
Prior to the commission's action, Baldwin presented various options.
"The first option is to leave things the way they are," Baldwin began. He said the law was not uniform to all cities and could implement a charter ordinance, the same as the previous ordinance.
A second option could be to hold landowners only accountable for electricity, which follows the Senate bill, Baldwin said.
A third option would be for the landlord to be responsible for all city bills incurred by the tenant.
"This would be the least-favorite among the landlords," Baldwin said.
The final option would be not to hold the landlord responsible at all and implement a deposit system.
Baldwin noted there were far more property owners than renters.
"It would be such a big change," Baldwin said, regarding an additional deposit. "It would need further study."
Mayor Martin Tice asked if there could be an increased deposit just for renters. Baldwin said he would not recommend that policy.
Tice asked if current customers could be exempt from an additional deposit. Baldwin responded they could but the policy would require further study.
City clerk Linda Holub reported she had asked the city's auditors their opinion on an increased deposit.
"The auditors did not recommend it," Holub said. The auditors were concerned about computing interest rates and was concerned the city may actually lose revenue.
Holub recommended a higher reconnection fee.
Commissioner Larry McLain said he didn't think that would be feasible because "the ones causing problems have already skipped town."
The current reconnection fee is $50 for those disconnected due to non-payment.
Jim Davis, Marion resident and landlord, said he was opposed to the landlords having to pay any of the tenant's debt.
"You (the city) take care of your accounts receivable, we (the landlords) will take care of ours," Davis said, saying the city had more options in collecting unpaid accounts that he does.
Tice said he understands any decision will cause a "nightmare" for someone but noted the city was out of compliance and a decision had to be made.
Tice said he was opposed to the landlord solely being responsible for all tenants' bills because each tenant would use the utilities differently.
City administrator David Mayfield said there were few problems with the previous ordinance of the landlord ultimately being responsible for unpaid tenant bills.
"There were five or six instances when landlords had to pay delinquent bills," Mayfield said.
Davis asked if the renters, whose bills were paid by the landlords, were current city utility customers. Mayfield responded they were not.
Commissioner Jim Crofoot said the "black mark follows the renter," not the property.
Baldwin suggested a higher deposit for tenants that had bills paid by landlords.
Holub said there wasn't an adequate tracking system in place to track landlord's payments but it could be done.
McLain suggested leaving the policy as it is. Baldwin said it was his and the League of Kansas Municipalities opinions a charter ordinance could be done. However, Baldwin emphasized any opinion could be challenged.
"The majority of the users are staying current," McLain said. "I don't want to punish the majority for the good of the minority."
Baldwin will present the charter ordinance at Monday's meeting.
