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Report # 02-258

June 25, 2002

SUBJECT:

RESOLUTION SETTING A PUBLIC HEARING TO CAUSE CHARGES FOR NON-PAYMENT OF UTILITY SERVICES AND NON-PAYMENT FOR THE COST OF ABATEMENT OF NUISANCES TO BE PLACED ON THE FY 2002/2003 TAX ROLL (RTC#02-258)

REPORT IN BRIEF

The City of Sunnyvale provides utility services to all properties within city limits. Additionally, the city enforces codes related to the maintenance of private property throughout the City. Periodically, the City abates nuisances on private property in order to promote the public health and safety and general welfare of the public.

Charges for both utility services, and nuisance abatements are billed to customers directly by the Department of Finance. Some of the properties receiving these services have been consistently delinquent. Attempts to collect these delinquent debts through the City’s standard collection process have failed.

Staff is recommending that assessments be filed against these properties in accordance with Sunnyvale Municipal Code Sections 12.50.110 and 8.20.090.

In order to comply with the terms of the Municipal Code and other legal requirements related to noticing property owners of assessment procedures, the City Council needs to adopt a resolution setting a date for a public hearing on this matter. Staff is recommending that a public hearing be set for July 23rd, 2002.

BACKGROUND

The City of Sunnyvale Municipal Code requires that all properties receiving water service, from any vendor, also receive and be subject to charges for sewer and solid waste services with the exception of those properties utilizing a septic tank system who are exempt from the requirement for sewer service. The collection of sewer and refuse from all inhabited properties is essential to maintaining the health and safety of the community at large. For this reason, sewer and refuse charges are considered a civil debt.

The City of Sunnyvale Municipal Code also provides the authority to declare a public nuisance and abate said nuisance.

The City of Sunnyvale Municipal Code Sections 12.50.110 and 8.20.090 provide the City the opportunity to collect delinquent funds through the tax roll procedure. Each year, the City holds a public hearing to provide the public an opportunity to comment regarding the proposed assessments.

EXISTING POLICY

The City of Sunnyvale Municipal Code Sections 12.50.110 and 8.20.090 allow for the Director of Finance to cause delinquent charges for water, sewer or solid waste services and nuisance abatements to be collected on the tax roll together with general taxes.

DISCUSSION

The attached properties have at least 3 outstanding bills and are a minimum of 60 days delinquent in paying for the sewer, solid waste, or nuisance abatement service provided to them by the City of Sunnyvale. Repeated attempts to collect the delinquent funds through the billing and notification process have been unsuccessful. Each utility customer receives a bi-monthly bill. Each nuisance abatement customer receives a monthly statement. In addition, utility customers receive a reminder notice, then a second notification of delinquency, and a final demand letter from the City Attorney’s Office notifying the customer that failure to pay would result in legal action. As the City of Sunnyvale cannot encourage these customers to pay their delinquent bills through discontinuance of service in the interest of public health, the only recourse available to collect the debt is either to place an assessment on each of the properties or refer them to a Collection Agency. As these customers own the property and the municipal code allows an assessment to be placed and funds collected through the County Tax Rolls, staff recommends this course of action.

Should the current pattern of delinquency be allowed to continue without action, the financial burden of providing service to these properties will eventually fall to either paying utility customers or the General Fund.

FISCAL IMPACT

The assessments total $5484.73 in previously uncollected revenue.

PUBLIC CONTACT

Notification of the hearing will be published in the Sunnyvale Sun in accordance with the Sunnyvale Municipal Code. Notification of the hearing will be sent to the billing address for each owner of each of the properties mentioned in Attachment C. Public contact is also provided via publication and posting of the City Council Agenda. Reports to Council are available in the Sunnyvale Library and on the City’s website.

ALTERNATIVES

  1. Adopt a resolution setting a public hearing for the regular meeting of the Sunnyvale City Council on July 23, 2002 at 7:30 pm.
  2. Do not adopt the resolution.

RECOMMENDATION

Staff recommends that the City Council adopt Alternative 1.

Prepared by:

Timothy J. Kirby
Revenue Systems Supervisor

Reviewed by:

Mary J. Bradley
Director of Finance

 

Approved by:

Robert S. LaSala
City Manager

Attachments

  1. Resolution
  2. Public Notice
  3. Property Listing

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