Landlords speak out against being responsible for tenants' city bill
Deposits may be required for new customers
Staff reporter
Fourteen local landlords voiced their concerns Monday about the city's former and future ordinance pertaining to delinquent city bills belonging to their tenants.
Marion City Commission held an open forum at the beginning of its regular meeting to hear opinions and discuss options. No decisions were made by the commission.
A previous city ordinance required landlords to ultimately be responsible for any unpaid city utility bills incurred by their tenants.
Jim Davis asked the commission why the landlords would be responsible when the tenants sign the paperwork to have utilities connected.
City administrator David Mayfield said when he came to the city, there was $42,000 owed to the city in past due utility bills.
Many of the past due accounts were for rental properties, said Mayfield.
"Some tenants would skip town without paying their bill," Mayfield said.
Mayfield told the group there was a public meeting in 2002 before the commission adopted the ordinance.
"Gary Carlson was the only person who attended," Mayfield said. There was another meeting a few weeks ago and three people attended it, he said.
A new ordinance needs to be adopted by the commission because a new state statute recently was adopted that does not allow the city to hold the landlord responsible for sewer and water.
The commission can choose a number of options. Some of the options include adopting the same ordinance as the one in 2002 where the property owner would be responsible for all city utilities; property owner only responsible for electricity; or only responsible for sewer and water.
Darvin Markley asked if the city attorney could collect the past due bills. Mayfield said the attorney does that but there are customers who cannot be located once they leave Marion.
Mayor Martin Tice said the commission had not made any decisions and looked to the landlords for recommendations.
Kiana Fairchild said her father had contacted the city and asked to have the utilities turned off on the 16th of the month if the bill wasn't paid.
"He was told you couldn't do that," Fairchild said.
Mayfield said the ordinance allows the customer time to respond to the notice of the bill being past due before disconnection occurs.
Carlson suggested a deposit be required and returned to the customer after one year of prompt payment.
"Charge a deposit according to the average utility bill," Carlson said.
Mayor Martin Tice asked the landlords if their tenants could come up with deposits. Carlson responded his tenants could.
Clayton Hamm said Hillsboro requires a deposit.
Hillsboro requires a $125 deposit. If the customer is one day late in paying a bill, the deposit is forfeited to the city. Reconnection in Hillsboro is $10 and $25 after 5 p.m. with no new deposit.
Marion does not charge a deposit but connection to city services requires a $75 plus tax connect fee. Reconnection costs $50 plus tax.
Tony Schafer said landlords provide a necessary service to the Marion community and their tenants provide additional revenue to the city.
"You're talking about a good chunk of money brought (to the city) by tenants," Schafers said.
"We can't absorb $42,000 in debt," Mayfield responded. "Business owners can't absorb that debt."
Markley said the community is trying to grow with development.
"We need more housing but end up penalizing the landlords," Markley said.
The city has a problem with manipulation of the system, Mayfield said.
"There may be three different people living at one address," Mayfield said. "They'll take turns coming in and getting utilities to avoid paying past bills."
Commissioner Jim Crofoot said the city has taken a harsher stance with customers.
"We're not a soft touch anymore," Crofoot said. "We used to try to work with people and now we cut them off. We've had to get hard-nosed."
Carlson said he would like for the landlords to continue to be notified when there is a delinquent city bill but not hold the landlords accountable.
More discussion followed with no resolution.
City attorney Dan Baldwin said regardless of the decision by the commission, a change has to be made.
"We can't go back to the way it was," Baldwin said, referring to prior to the 2002 ordinance requiring landlords to pay delinquent utility bills.
Mayfield said the city can't be selective when connecting utilities but landlords can be selective to whom they rent.
City officials said the current system of notifying the landlord when a tenant was delinquent and holding the landlord accountable was working well.
Carlson asked what the factor was for the success. Mayfield responded it was due to the city notifying the landlord.
"I'm hearing the suggestions of a deposit, reconnect fee, and notification of landlords of bills," Tice said.
More discussion followed regarding the amount of deposit. Some landlords thought the amount of the highest city utility bill would be appropriate.
City clerk Linda Holub said every customer uses the utilities differently.
"Some customers keep their homes at 60 degrees in the summer and 85 in the winter," Holub said.
Hamm agreed and said, "don't go overboard."
The commission will discuss the issue at a future meeting
