June 7, 2005
SUBJECT: Resolution Setting a 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 2005/2006 Tax Roll
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 as well as the general welfare of the public.
Charges for both utility services and public 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 9.26.070.
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 June 21, 2005.
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 which are exempt from the requirement for sewer service. The collection of sewer and solid waste from all occupied 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 the nuisance.
The City of Sunnyvale Municipal Code Sections 12.50.110 and 9.26.070 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 9.26.070 allow the City 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
Each property has at least 3 outstanding bills and is a minimum of 30 days delinquent in paying for the water, sewer, solid waste, or public 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 bill once every two (2) months. 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 will result in legal action. Nuisance abatement customers receive a final demand letter from the City Attorney’s office after 90 days of delinquency. 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.
FISCAL IMPACT
The adoption of this resolution will help to ensure that the City meets its adopted financial plans. However, should the current pattern of delinquency be allowed to continue for either nuisance abatement or utility customers without action, the financial burden of providing service to these properties will eventually fall to either paying utility customers for delinquent utility bills, or the General Fund for delinquent public nuisance bills.
CONCLUSION
The proposed hearing is consistent with past practice and applicable legal requirements. Action to collect debts through the tax roll process is a cost effective and efficient method of debt collection.
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 affected properties. 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 to consider a resolution causing charges for non-payment of utility services and non-payment for the cost of abatement of public nuisances to be placed on the FY 2005/2006 tax roll for the regular meeting of the Sunnyvale City Council on June 21, 2005 at 7:00 pm.
2. Do not adopt the resolution.
RECOMMENDATION
Staff recommends Alternative 1 to adopt a resolution setting a public hearing to consider causing charges for non-payment of utility services and non payment for the cost of abatement of public nuisances to be placed on the FY 2005/2006 tax roll for the regular meeting of the Sunnyvale City Council on June 21, 2005 at 7:00 pm.
Prepared by:
Timothy J. Kirby
Revenue Systems Supervisor
Reviewed by:
Mary J. Bradley
Director of Finance
Approved by:
Amy Chan
City Manager
ATTACHMENTS
A. Proposed Resolution (.pdf)
B. Public Notice (.pdf)