June 7, 2005
SUBJECT: Resolution Setting a Public Hearing Establishing the FY 2005/2006 Wastewater Assessment Charges for Properties Located Outside the City.
REPORT IN BRIEF
The City provides wastewater service to various properties located outside the City limits. Payment for these services is received through property tax assessments. In order to comply with legal requirements related to noticing property owners of annual assessments, the City Council needs to adopt a resolution providing for the manner of collection of wastewater service charges for properties outside the city and setting a date for a public hearing.
Staff recommends that the City Council adopt a resolution setting a public hearing on the adoption of the FY 2005/2006 wastewater assessment charges for properties outside the City for the meeting of June 21, 2005.
BACKGROUND
In the mid 1950’s, an area known as Rancho Rinconada was being developed as a mostly single-family residential area. At the time, this area was in a pocket of the county that had no direct access to a sewer collection system. The City of Sunnyvale entered into a series of agreements with the developers that allowed the Rancho Rinconada sewer system to be tied into a 15 inch City sewer main that was extended 1.7 miles for that purpose. The agreements required developers to construct sewers that met the City’s standards and allowed the City to collect fees from the homeowners for the purpose of reimbursing the City for its costs of providing on-going sewer service.
Currently, the area contains 1,862 single family homes, two duplexes, two small apartment buildings and a commercial building. Council reviews a resolution on a yearly basis to place wastewater service charges on the property tax roll for each property connected to and using the system.
EXISTING POLICY
Assessments are made pursuant to Section 5473 of the Health and Safety Code and Section 12.16.020 of the Sunnyvale Municipal Code.
DISCUSSION
Following a public hearing, the City Council adopts a resolution each year providing for the collection of wastewater service charges through tax roll assessments by the County of Santa Clara. The properties which are assessed these charges are outside the City limits. The service area is bounded by Stevens Creek Blvd., Lawrence Expressway, Blaney Avenue and Bollinger Road in the City of Cupertino and by Bollinger Road, Lawrence Expressway, Johnson Avenue and Castle Glen Avenue in the City of San Jose.
The attached resolution sets a hearing to be held on June 21, 2005 to hear comments or protests from property owners being assessed prior to adoption of the resolution and assessment of the charges. During the public hearing on June 21, 2005, the City Council will consider public input and subsequently act on the wastewater assessment charges.
FISCAL IMPACT
There is no fiscal impact to the City of Sunnyvale as a result of adoption of the resolution establishing the hearing. Upon adoption of the assessments, the City collects these fees as part of the County Tax Roll. The fees go directly into the Wastewater Management Fund and are used to offset the costs of operating the City’s wastewater utility. The FY 2004/2005 assessments totaled $449,673.85.
Conclusion
The proposed public hearing is consistent with past practice and applicable legal requirements. Additionally, placing assessments on the tax roll is consistent with the original agreements established with the development of the properties.
PUBLIC CONTACT
If adopted, notice of the holding of a public hearing will be published in the San Jose Mercury News. Public contact is also provided via publication and posting of the City Council Agenda. A copy of the Report to Council will also be made available in the Sunnyvale Library and on the City’s website.
ALTERNATIVES
1. Adopt the resolution, which sets a public hearing for June 21, 2005.
2. Do not adopt the resolution.
RECOMMENDATION
Staff recommends Alternative 1 to adopt a resolution setting a public hearing for June 21, 2005 establishing the FY 2005/2006 wastewater assessment charges for properties located outside the City.
Prepared by:
Timothy J. Kirby
Revenue Systems Supervisor
Reviewed by:
Mary J. Bradley
Director of Finance
Approved by:
Amy Chan
City Manager
ATTACHMENTS
A. Notice of Public Hearing (.pdf)
B. Proposed Resolution (.pdf)