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(a) The following terms, when used in this section, shall have the meaning herein set forth unless the context of their use clearly indicates otherwise:

(1) Administrative fee means a fee to be paid by the tenant, not to exceed the actual costs incurred by the owner and/or charged by a third-party billing agent, for the calculation and collection of the sub-bill and maintenance of sub-billing records. The cost of installation, maintenance, or repair of infrastructure used for sub-billing may not be included in an administrative fee.

(2) Dwelling unit means a single unit providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation.

(3) Master-meter means meter used by Aurora Water to measure, for billing purposes, all water usage of a multi-family dwelling unit, a multiple use facility, or a manufactured home community.

(4) Multi-family dwelling unit means a building with two or more separate dwelling units.

(5) Multiple use facility means a commercial or industrial park, office complex, mall, or strip mall with multiple units that are rented or leased at intervals of one month or longer.

(6) Owner meants the person or entity who has established a billing account with the city to receive water, wastewater, and/or storm drain service from the city.

(7) Sub-billing means water and/or wastewater and/or storm drain service, including monthly service charges, usage charges and surcharges that are billed to an owner by Aurora Water and then allocated, using sub-meters or any other allocation method, and billed to a tenant by the owner or billing agent in addition to the established rent amount.

(8) Sub-metered service means water service that is master-metered for the owner and individually metered by the owner at each dwelling unit; wastewater utility service based on sub-metered water utility service; water utility service measured by point-of-use sub-meters when all of the water used in a dwelling unit is measured and totaled; or wastewater utility service based on total water use as measured by point-of-use sub-meters.

(9) Tenant means a person who owns or is entitled to occupy a dwelling unit in a multi-family dwelling unit, or an individual unit in a multiple use facility or a manufactured home community, to the exclusion of others and, if rent is paid, who is obligated to pay for the occupancy under a written or oral rental agreement.

(b) Sub-billing by an owner itself, or by an owner through a third party billing agent, shall be prohibited unless the owner complies with all of the following conditions:

(1) Prior to sub-billing, the owner must provide to the tenant to be sub-billed a detailed written explanation of the method used to allocate the charges to each tenant. This explanation must include the exact formula to be used to calculate the tenant's portion of the bill. This explanation must also disclose whether the tenant will be responsible for any portion of usage in common areas and facilities and landscape, as well as how such portion will be calculated. Such explanation must also disclose the existence and amount of any administrative expense and required deposit.

(2) Any method of sub-billing must be a pass-through method in that the total of all charges for water and/or wastewater service sub-billed to all units cumulatively shall not exceed the total amount billed by Aurora Water. In the event that the tenants are not responsible for common areas and facilities and/or landscape usage, then the total of all charges for water and/or wastewater service sub-billed to all units cumulatively shall not exceed the total amount billed by Aurora Water minus common areas and facilities and landscape usage. The owner shall not bill tenants for any late charges, interest, other penalties, reconnection fees, or deposits owed by the owner to the city. The owner is responsible to the city for the entire amount billed for service, regardless of the amount collected by sub-billing. The owner may collect an administrative fee, lawful late fees, dishonored check fees, and a deposit provided such fees and deposit are disclosed to the tenant in advance and in writing. Such fees are in addition to the amount billed for water/wastewater service and are therefore not included in the calculation of pass through maximum billed amounts.

(3) Charges sub-billed must be itemized separately from each other and separate from any other utility billed by the owner. Combining charges, such as billing more for hot water than for cold water in an effort to recover power costs, is prohibited.

(4) The owner must maintain all necessary records from the preceding 12-month period concerning sub-billing including Aurora Water bills, the allocation formula and/or sub-meter readings if used, and a list with the consumption and/or allocation and the dollar amount billed and collected from each dwelling unit. The owner must also maintain proof of compliance with the notification requirements of subsection (b)(1) of this section. The tenant and/or a representative of Aurora Water shall be allowed to review and copy these records, after redaction of all personally identifiable information, upon request during normal business hours. In the event such records are maintained at a location other than the master-metered property, the owner must make such records available at the master metered property within five business days of such request. There shall be no charge to review the records, but the owner may recover actual expenses for providing copies if requested.

(c) The provisions of this section are intended to insure a tenant is fully informed about sub-billing and to prevent the resale of Aurora water/wastewater services at a rate higher than that charged by the city. The city will make no determination of whether sub-billing is permitted by, or the specific terms of, a private lease or other agreement between parties other than the city. Nothing in this section shall be construed to prevent an owner from including a tenant's cost of water or wastewater service within the rent set forth in a rental agreement. The resolution of any individual billing dispute arising out of sub-billing is not the responsibility of the city.

(d) Any owner who sub-bills a tenant, or causes a tenant to be sub-billed, and has failed to comply with any one or more of the above requirements shall be subject to a civil penalty of not more than $500.00 for each sub-bill presented to a tenant, with a maximum of $2,500 assessed for each calendar month of violations. In the event that the owner is found to be in violation of this section in a second action brought within two years, the maximum penalty amounts shall be doubled, and such violation shall be grounds for discontinuance of water service to the master-metered property.

(e) This section shall apply to any sub-billing on or after June 1, 2007. (Ord. No. 2023-44, § 11, 9-11-2023; Ord. No. 2015-25, § 10, 6-29-2015; Ord. No. 2007-02, § 2, 2-12-2007)