Wednesday, May 11, 2011
 
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City: Delinquent sewer bills still a hot topic in council

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[May 11, 2011]  "I think we ought to take the highest one and go dig it up."

That's what Alderwoman Melody Anderson said in response to a request to place a motion on next week's agenda to hire a collection agency to try to resolve some of the city's nearly $250,000 in unpaid sewer bills.

She reasoned that the collection agency would take 30 percent of what they collected. The highest delinquent account holder is a landlord with multiple properties and a total debt to the city of nearly $12,000. She reasoned that the city could do quite a bit of digging for one-third of that amount.

She went on to say: "I think what will happen when we put that notice on, they will come in and pay. The smaller ones -- let it go; send them off (to collections). The bigger ones -- dig them up. It is time we start putting some bite into all this yakking we're doing."

Alderman Jeff Hoinacki brought back the problem of the highest bill being a landlord, and the digging would affect the tenants who are not responsible for the delinquency.

Alderwoman Stacey Bacon responded by saying, "Dig his up."

As discussions ensued, Bacon also commented: "I've been on the council a little over 21 months and we've been talking about this since I've been here, and personally, I'm tired of talking about. I think we need to do a collection agency, get it moving, at least get some of our money recouped. Sitting here talking about it week after week, we're not going anywhere."

Bacon went on to say that she didn't believe threatening to dig up a sewer line would do any good at all. She said she didn't believe any of these delinquent accounts would care whether or not there was a backhoe parked in front of their house or even in their front yard.

Police Chief Ken Greenslate weighed in, saying he'd personally been in homes where sewer service had been shut off.

He said: "People do find alternatives and they aren't pleasant. And it causes bigger problems for my partner over here (John Lebegue of building and safety). I've been in those houses and I just can't describe it."

Hoinacki reminded the council that the sewer system in the city is old and fragile in most parts of the town. He recalled a time when a small dig at Union and Clinton streets turned into a full block of crumbled sewer line, which ended up costing the city a great deal of money.

Waste treatment manager Bob Tackett talked about the sewer lines being combined, with sometimes two houses on one tap. He noted that if the sewer is dug up and plugged at the main line, there is a possibility that two sewers would be shut off and that one of those would be to a home where bills are being paid regularly.

Tackett also noted that in the case of the unnamed landlord being discussed, he has two properties that have account balances of about $3,500 and a couple more with balances of only $500.

He said it appeared that the landlord was in arrears on the two properties when he took over the taps on two more. He suggested that in the future, anyone with a delinquent account not be permitted to have additional taps in their name.

Alderman Buzz Busby commented on the recent vetoing of a motion to use Illinois American to shut off water to homes with delinquent sewer payments. He said the council had voted the motion down because of liability issues, but there was another option.

The city could turn the sewer billing over to Illinois American. Then the company would have to collect the money and could turn off water as they saw fit, with no consequences to the city.

However, city attorney Bill Bates said he didn't believe the water company would take over the delinquent bills, so it wouldn't really solve the immediate problem.

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As the discussion made its way back to the use of a collection agency, it was discussed what kind of guidelines the agency would be given.

Would they base their collections on dollar figures or the age of the accounts, and who in the city would be involved in choosing which accounts to go after?

Bates said that aging might be the best, and Anderson reminded everyone that the city bills on a 120-day cycle, which would need to be taken into consideration when basing collections on aging.

Chuck Conzo, city treasurer, also said that the city should look at the delinquents and consider who will eventually pay on their own. He noted that slow accounts that are still collected over time should not be given to a collection agency for them to keep a third of the balance.

The discussion came to a close, but at the end of the evening Bates brought it up again one last time.

He read the following excerpt from city code 7-8-1-14:

METHOD OF PAYMENT: The owner of the premises, the occupant or the user of the sewerage system shall be jointly and severally liable to pay for the service on the premises, and the service is furnished to premises by the city only upon the condition that the owner of the premises, the occupant or the user of the service are jointly and severally liable for the payment of all charges to the city.

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Bates said it had always been his understanding that a landlord is solely responsible. However, with the way the code is written, the occupant has joint responsibility for the bill.

He noted that one big obstacle would be determining who the occupant is. He said he and Lebegue have struggled with this on other matters, and it is sometimes very difficult to get that information. Plus, the city would have to determine how long the tenant had been in the residence and whether or not they were responsible for the entire bill or a portion of it.

As it stands now, there will be no motions to approve sewer disconnects, and the city will vote Monday night on hiring Midwest Credit Collections of Decatur to take over some of the older balances. Midwest will keep about one-third of what they collect.

[By NILA SMITH]

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