City plans to beef up utility collections

Copyright © 2009
Gallup Independent
By Leslie Wood
For The Independent

GALLUP — The city of Gallup plans to revamp many of its utility policies to maximize collections and comply with revised state and federal law.

City Attorney R. David Pederson said he mailed 500 letters to local property owners to inform them about the city’s revision of its policy regarding owner/renter responsibility for utility charges.

The city now has an updated, standard form that will reduce property owners’ liability for unpaid utility charges incurred by renters. Pursuant to a revised state law, property owners must submit to the city a written notification of renter utility charge responsibility before renters incur utility charges.

The disclaimer must be submitted before a renter moves into a property and must be renewed with each new occupant.

“There is no such thing as a permanent disclaimer that lasts forever for the property,” according to the letter written by Pederson.

Pederson said some local renters submitted their own disclaimers to the city in previous years, but many were not legally binding. The city’s “modernized” form complies with state law and allows the entity to pursue renters for unpaid bills.

Without the disclaimer, city officials could place a lien on property with past due accounts.

“This is the only way to keep their property from being at risk,” Pederson said.

He said forms are available at the city clerk’s office and are relatively simple to complete.

The owner/renter policy is one of many the city plans to instate to “beef up” its collection efforts.

“If we don’t collect, everyone fits the bill,” Pederson said. “ ... We really want to cut down on the delinquencies.”

The city will also consider whether to increase its initial utility deposit to give it a financial cushion if a customer fails to pay his or her bill.

Utility employees will also be more vigilant to confirm a prospective utility customer’s identification and addresses before services are connected. Prospective utility customers will have to show the city a copy of their rental agreements or other proof of property ownership before their accounts are approved.

Pederson said the effort is part of a new federal regulation designed to reduce identity theft and immigration fraud.

Some criminals set up fictitious utility accounts to attain the needed documentation to obtain a false government issued ID.

Pederson said he has received complaints about the policies, in particular the policy that involves renter/owner responsibility for utility charges.

“We don’t think it will be overly burdensome,” he said.

Betty Armstrong, a representative for the local Board of Realtors, said the group has asked to be placed on the city meeting agenda on June 9 to discuss its concerns about the policies. She called utilities “cumbersome” to connect and disconnect in Gallup compared to other municipalities.

Armstrong declined to speak of the specific concerns to The Independent and said she preferred to meet with city officials first.