July 13, 2004

SUBJECT: Public Hearing to Cause Charges for Non-Payment of Utility Services and Non-Payment for the Cost of Abatement of Public Nuisances to be placed on the FY 2004/2005 Tax Roll

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 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 9.26.070.

At the regular meeting of the Sunnyvale City Council on June 15, 2004, a public hearing was set for July 13, 2004. The public hearing is being held in accordance with the terms of the Sunnyvale Municipal Code and other legal requirements. All affected property holders were notified of the hearing and impending legal action.

The City of Sunnyvale Municipal Code Sections 12.50.110 and 9.26.070 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.

Nonpayment of Utility Services

The City of Sunnyvale Municipal Code requires that all properties receiving water service, from any vendor, also receive and be subject to charges for solid waste and sewer 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 solid waste from all inhabited properties is essential to maintaining the health and safety of the community at large. For this reason, sewer and solid waste charges are considered a civil debt.

The properties listed in Attachment B are a minimum of 60 days delinquent in paying for the water, sewer, or solid waste 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 customer receives a bi-monthly bill. In addition 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. Further notification was delivered to each customer notifying them of the setting of the July 13, 2004 public hearing.

As the City of Sunnyvale cannot encourage these customers to pay their utility delinquent bills through discontinuance of service because their accounts are closed and there are new customers living at the property, or 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.

Non-payment of Nuisance Abatement

The City of Sunnyvale enforces laws related to the maintenance of private property throughout the City. On July 30, 2003, a nuisance abatement was performed on the property, listed in Attachment B, located at 550 Balsam Ave. The abatement consisted of removal of an excessive amount of debris, weed abatement, and bee abatement.

The property owner was billed for the abatement. An invoice, a statement, and a final demand letter from the City Attorney’s office were sent.

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

The assessments total $3,622.78 in previously uncollected revenue. If approved, staff will forward the assessment information, with an additional 1% administrative charge, to the County of Santa Clara for collection on the 2004/2005 property tax roll. If collected, $837.27 will be credited to the Utility Enterprise Funds and $2,785.51 will be credited to the General Fund.

Notification of the hearing was published in the Sunnyvale Sun in accordance with the Sunnyvale Municipal Code. Notification of the hearing was also hand delivered or mailed to the property tax billing address for each owner of each of the properties mentioned in Attachment B. 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.

Adopt the attached resolution and proceed with the assessment process through the County of Santa Clara.

Do not adopt the resolution and move to collect the delinquent funds through other means.

Reduce or remove charges from the customers’ accounts.

Staff recommends Alternative 1.

Prepared by:

Timothy J. Kirby
Revenue Systems Supervisor

Prepared by:

Therese B. Balbo
Finance Manager

Reviewed by:

Mary J. Bradley
Director of Finance

Approved by:


Amy Chan
City Manager

Attachments
A. Proposed Resolution (.pdf format)
B. Property Listing (Exhibit A of Resolution) (.pdf format)
C. Public Notice (.pdf format)