393.016. Termination of water service for nonpayment of sewer bill, when--immunity from civil liability--procedure to establish agreement, contents of agreement--exceptions.
Termination of water service for nonpayment of sewer bill,when--immunity from civil liability--procedure to establishagreement, contents of agreement--exceptions.
393.016. 1. Notwithstanding any other provision of law, anymunicipality providing water, or any water district established under chapter247, RSMo, which in this section shall sometimes be designated as a waterprovider, shall upon request of any municipality providing sewer service orpublic sewer district established under chapter 249 or 250, RSMo, or sections204.250 to 204.470, RSMo, or any sewer district created and organized underconstitutional authority, which in this section shall sometimes be designatedas a sewer provider, contract with such sewer provider to terminate waterservices to any water user of such water provider for nonpayment of adelinquent sewer bill owed to such sewer provider.
2. Any water provider, or independent contractor acting for a waterprovider, acting under a contract with a sewer provider under this sectionshall be exempt from all civil liability whatsoever arising from or related totermination of water services pursuant to any such contract.
3. In the event that any water provider and any sewer provider areunable to reach an agreement as provided in this section within six months ofthe receipt of such request by the water provider, then the sewer providermaking the written request may file with the circuit court in which such waterprovider was incorporated, or if such water provider was not incorporated by acircuit court, then with a circuit court having jurisdiction of the waterprovider, a petition requesting that three commissioners be selected to draftsuch an agreement.
4. Any agreement drafted by the commissioners or entered into under thissection shall contain the following provisions:
(1) The rules and regulations or ordinances of the sewer provider shallprovide that the number of days of delinquency required before water serviceis discontinued for failure to pay for sewage service shall be equal to thenumber of days of delinquency required before water service is discontinuedfor failure to pay for water service under the rules and regulations of thewater provider;
(2) The water provider shall not be required to discontinue waterservice to the sewer user for failure to pay the charges or rental duetherefor unless the sewer provider shall first give a written notice to thewater provider to do so. Such notice shall include the due date, amount ofthe delinquent bill, and all penalties and interest thereon. When payment ofsuch amount is received by the sewer provider, upon written notice thereof tothe water provider, the water provider shall restore water service to thewater and sewer user, provided the water bill of such user owed to the waterprovider is not delinquent;
(3) The sewer provider shall at all times keep in force a generalcomprehensive public liability and property damage policy issued by a companyauthorized to do business in Missouri with policy limits equal to or in excessof those set forth in section 537.610, RSMo, shall include the water providerand any independent contractor who performs such agreement under contract withthe water provider thereon as an additional insured, and shall furnish thewater provider and such independent contractor a certificate of insuranceevidencing such insurance is in effect. If at any time it fails to do so andfurnish such certificate of insurance to the water provider and suchindependent contractor, the water provider and such independent contractor maycease to make water service terminations until such requirement is satisfied;
(4) The agreement shall provide that any loss of revenue incurred by thewater provider as a result of discontinuing water service because of thefailure of any sewage user to pay the charges or rental therefor shall be paidto the water provider by the sewer provider. Such amounts include, but arenot limited to, loss of revenue by the water provider caused by disconnectionof water service for a sewer bill delinquency when the water bill is notdelinquent;
(5) When a water provider is collecting delinquent amounts for both thewater and sewer service, all delinquent payments due to both the water andsewer provider shall be received by the water provider before water service isrestored. If for any reason water service is never restored, any amountcollected for delinquent accounts due both water and sewer provider shall bedivided between the water provider and the sewer provider so that eachreceives the same percentage of the amount owed to it;
(6) The agreement shall provide that in the event the water provider orany independent contractor who performs such agreement under contract with thewater provider incurs attorney fees or other costs not covered by insurance asa result of any claim, litigation, or threatened litigation against the waterprovider or independent contractor which exceeds the limits of insurancecoverage provided to the water provider or independent contractor by the sewerprovider as stated in this section, the sewer provider shall reimburse suchamounts to the water provider or independent contractor;
(7) The agreement shall contain a provision providing that the expenseand cost of the water provider shall be recalculated annually and that theamount due it during the subsequent year shall be increased or decreasedaccording to any change occurring in the costs and expenses; alternatively,upon agreement of the parties to the agreement, the agreement may provide forannual increases or decreases based upon the percentage of increase ordecrease in the National Consumer Price Index for All Urban Consumers,unadjusted for seasonal variation, as published by the United StatesDepartment of Labor for the most recent date prior to the annual anniversarydate of the execution of the agreement;
(8) All expense and cost incurred by the water provider in performing orcarrying out the agreement shall be reimbursed to the water provider by thesewer provider. The reimbursement shall be made monthly, bimonthly, orquarterly. In determining such expense incurred by the water provider, thecommissioners shall consider the following items of expense, whether suchitems will be incurred by the water provider, at the time the agreement isexecuted or in the future, and if so, the amount of such expense attributableto such agreement at the time such agreement is executed and in the future:
(a) All personnel expense including, but not limited to, wages andsalaries, employment taxes, retirement benefits, employment benefits, healthinsurance, and workers' compensation insurance;
(b) All expense incurred by payments to independent contractors whoperform or carry out the agreement under contract with the water provider;
(c) Equipment expenses;
(d) Computer and computer program expense;
(e) Office space expense;
(f) Insurance expense attributable to the agreement between the waterprovider and the sewer provider, including the additional insurance expense ofany independent contractor who performs or carries out the agreement undercontract with such water provider;
(g) All other expense attributable to the agreement between the waterand sewer provider;
(9) The agreement shall terminate in twenty years unless a differentterm is agreed upon by the parties. Upon termination, the parties may agreeto an extension thereof, not to exceed an additional twenty years;
(10) If ownership of either the sewer system of the sewer provider orthe water system of the water provider is transferred to another entity orperson, the agreement shall terminate at the time of the transfer, unless thenew owner and remaining owner agree otherwise.
5. Upon the filing of such petition, the sewer provider shall appointone commissioner. The water provider shall appoint a commissioner withinthirty days of the service of the petition upon it. If the water providerfails to appoint a commissioner within such time period, the court shallappoint a commissioner on behalf of the water provider within forty-five daysof service of the petition on the water provider. The two named commissionersshall agree to appoint a third commissioner within thirty days after theappointment of the second commissioner, but in the event that they fail to doso, the court shall appoint a third commissioner within sixty days after theappointment of the second commissioner.
6. The commissioners shall draft an agreement between the water providerand sewer provider meeting the requirements established in this section.Before drafting such agreement, the water provider and sewer provider shall begiven an opportunity to present evidence and information pertaining to suchagreement at a hearing to be held by the commissioners, of which each partyshall receive fifteen days' written notice. The hearing may be continued fromtime to time by the commissioners. The commissioners shall consider allevidence and information submitted to them and prepare such agreement asprovided under this section. The agreement shall be submitted to the courtwithin ninety days of the selection or appointment of the last commissioner asprovided under this section.
7. If the court finds that the agreement is fair, reasonable, and meetsthe requirements of this section, then the court shall enter its judgmentapproving the agreement and order it to become effective sixty days after thedate of such judgment. If the court finds such agreement is not fair andreasonable or does not meet the requirements of this section, the court shallreturn it to the commissioners with its reasons for rejecting the agreement.The commissioners shall make the required changes and resubmit the agreementto the court. Upon approval of the agreement by the court, judgment shall beentered approving the agreement and ordering it to become effective sixty daysafter the date of such judgment. Thereafter, the parties shall abide by suchagreement. If either party fails to do so, the other party may file an actionto compel compliance. Venue shall be in the court issuing such judgment.
8. The judgment and order of the court shall be subject to appeal asprovided by law. All costs, including commissioners' compensation, shall betaxed to and paid by the sewer provider requesting an agreement. The courtshall determine and order payment of fees of expert witnesses of the waterprovider by the sewer provider to the water provider.
9. The provisions of this section shall not apply to any city not withina county or any county with a charter form of government and with more thanone million inhabitants.
(L. 2005 H.B. 58)