ITEM TITLE:
Title
Consider approving a utility bill payment plan request by OK Portfolio HoldCo, LLC for two properties in arrears +3 months for the amount of $70,505.97 impacting 249 apartment units.
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INITIATOR: Rebecca Johnson, Finance Director
STAFF INFORMATION SOURCE: Rebecca Johnson, Finance Director
BACKGROUND: OK Portfolio Holdco purchased two apartment complexes March 2024. The complexes at purchase were not in good standing on payments to the city. The new owners did not present to switch accounts. Staff attempted communication which had no results until July 19th. Notices were placed on the apartment doors notifying tenants of a pending termination of service. New owners have appeared and opened new accounts with appropriate documentation. They paid the July 5th bill and deposits on July 19th and are now seeking a payment arrangement for their remaining balances due, Complex #1 $45,943.02 and complex #2 $24,559.95 = $70,502.97.
They are requesting the past due into payments over the next 4 months of August-November while paying the current due as well.
EXHIBIT: Bill Summary per account: 4 accounts for one complex $45,943.02 and 3 accounts for the second complex $24,559.95.
KEY ISSUES:
1. Citizen Impact: 144 units at one complex and 105 units at the second.
2. Code of Ordinances 22-1-1-104(a) states:
Each utility bill shall be due on the billing date. If the payment is not received by the city and paid in full on or before the due date, which is twenty (20) days after the billing date, a late payment penalty of ten percent (10%) of the current utility bill with a minimum penalty, as provided in the fee schedule, shall be added. The customer may request, prior to the utility cut-off date, an adjustment of the late payment penalty fee. The finance director or his designee shall waive the late penalty fee, providing the customer has not had any late fees assessed within the past consecutive twelve (12) months of service; however, the pay rec...
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