 "Using a collector is not going to solve the problem. Either dig
them up or shut their water off -- that will solve the problem,"
Busby concluded.
Soon after, though, Alderwoman Stacy Bacon said she felt it would
do no good in that particular case to dig up the sewer, because the
landlord, with multiple properties in Lincoln, was not going to care
one way or another.
She along with John Lebegue, building and safety officer,
recounted to the council that the landlord has at least one property
in foreclosure and two others with delinquent property taxes.
"He's not paying anyone," Bacon said, "so it will do no good."
The city of Lincoln is facing a delinquent account balance in the
sewer department that is drawing close to $250,000.
For years, they have pondered what to do about this situation.
Busby noted that it was five years ago that the city started talking
about what to do, with options that included water shut-offs or
turning the sewer billing over to Illinois American Water.
Over the years, several of the aldermen have expressed concern
about allowing the sewer bill to go to the water company, and these
same concerns were voiced again at the Tuesday night workshop.
Alderman Tom O'Donohue spoke about passing an additional
financial burden on to city residents, saying that Illinois American
will add $1 per month to the sewer bill for administrative costs.
Anderson agreed that she was opposed to forcing the extra dollar
on taxpayers, but the city couldn't absorb it, so that would be the
only option.
In addition to the $1 per month, Illinois American is asking for
a net payment of $10,000 from the city for the startup costs.
According to excerpts read by city attorney Bill Bates, the
$10,000 will be amortized over a period of time and deducted from
what the water company collects before it reimburses the city.
He also noted that if the city exits the contract prior to the
full amortization, the balance would then be due and payable in
full.
The city has also just recently purchased new software for the
sewer billing and is set to start using it in July. With turning
over the billing to Illinois American, that software would no longer
be needed, and the position of sewer billing clerk would be
eliminated.
Busby said he felt like it was still a viable option. The billing
clerk; Doris Anderson, could be reassigned to other duties, and the
part-time employees in the clerk's office could be let go.
Because of liability issues, the city recently vetoed entering
into a shut-off agreement with Illinois American. In the contract
presented to the city, Illinois American was to be held harmless in
almost every liability issue that could come from the water
shut-offs.
Bates, Mayor Keith Snyder and Busby had contacted the company and
asked for a rewrite of the liability issues but did not get a
satisfactory response.
Chuck Conzo, city treasurer, said Tuesday night that he and
Denise Martinek, city clerk, had contacted Jerry Turner, the city
treasurer of Belleville, and together had discussed their sewer
account collections in detail.
Belleville uses Illinois American as their water provider and
does their own monthly billing for sewer and garbage.
Conzo said Turner told them Belleville has a shut-off agreement
with Illinois American Water and it works very well.
Turner said that prior to entering into the agreement, the city
had about 25 percent of their billings going unpaid. Once they
started shutting off water, they have enjoyed a nearly 100 percent
collection of fees.
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Turner told Conzo and Martinek that Belleville also uses a
collection agency for the accounts where the debtor "skips town."
In Belleville, once the water is shut off, the customers have to
pay their delinquent accounts; plus, they are assessed a fee for the
shut-off and another fee for having the water turned back on, both
of which must be paid before service is restored.
Conzo said he asked about the liability issues in the Illinois
American contract, and Turner wasn't aware of any concerns the city
had with the contract.
Alderman David Wilmert wondered what was different in Belleville
that they were not concerned, and Conzo said he wasn't certain that
Belleville had the same contract as what was presented to Lincoln.
Conzo said the contract at Belleville has been in effect several
years, and the liability wording may not be the same.
He also noted that Lincoln doesn't have to do just one thing.
They could choose to use a collection agency for some and water
shut-offs or sewer digs for others.
Conzo's last suggestion was to use door hangers, as had been
discussed a few weeks ago. He said that in light of the ordinance
Bates had read aloud last week indicating that the sewer bills are
the joint responsibility of the property owner and tenant, door
hangers would alert tenants who might not be aware there is a
problem.
As the discussions moved on to the use of a collection agency,
Alderwoman Marty Neitzel spoke about her decision to table the
motion on last week's agenda, saying she had had second thoughts,
wondering if it was the right thing to do.
She told the council that at the next voting session, which will
be on June 6, she will make the motion and give everyone the
opportunity to vote one way or the other.
"We have to get something going," she said. "It isn't fair for
some to pay their bills when others don't."
Snyder also wondered if the city should try a few shut-offs to
see what happens, and it was mentioned that to do that, the city
would have to sign the Illinois American contract as is with the
liability issues unresolved.
Wilmert also commented on the shut-offs, saying he would want the
city to choose property owners with a vested interest. He wants the
shut-off to take place at locations where the owner occupies the
dwelling.
By the end of the discussion, no new motions regarding shut-offs
had been added to the agenda. The next voting session will have only
one motion: to hire Midwest Collections to go after delinquent sewer
accounts, via their own collection methods.
The city of Lincoln does publish the delinquent sewer list on the
city website, and it can be viewed by following this link:
http://www.cityoflincoln-il.gov/images/stories/pdfs/sewer list.pdf.
[By NILA SMITH]
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