For Utilities Commission Meeting [May 13, 2021]
TO: Honorable Chairperson and Commission
APPROVAL: Thomas J. Crowley, P.E., Utilities Manager
Title
Recommend the City Council/Rialto Utility Authority Conduct a Public Hearing to Receive Public Comment Related to the Placement of Sewer Service Charges on the County Property Tax Roll for Delinquent Accounts.
(ACTION)
Body
BACKGROUND
The City of Rialto (City)/Rialto Utility Authority (RUA) provides sewer services throughout the entire City and areas of Bloomington. Where RUA provides water service, both water and sewer services are billed together. For delinquent accounts, RUA is able to impose penalties and shut off water services to promote payment, per Rialto Municipal Code Section 12.08. However, there are areas of the City where either the West Valley Water District or the Fontana Water Company provides water services and RUA only bills for sewer service. The sewer-only accounts have high delinquency rates, as the RUA cannot disconnect services for lack of payment.
In order to more effectively collect sewer-only accounts, the Rialto Municipal Code Section 12.08.201 was amended to allow for placement of delinquent charges on property tax bills through the County Tax Collector’s Office. The Ordinance approved on June 19, 2007, provides a method for collecting delinquent accounts similar to the lien placement process used for solid waste delinquent accounts.
ANALYSIS/DISCUSSION:
Notification letters were sent to the delinquent account holders alerting them of City/RUA’s plan to place the delinquent charges on the property tax roll and giving them one last opportunity to pay. The last date for a customer to pay their delinquent wastewater bill before placement on the tax rolls will be June 25, 2021. It should be noted that if a customer pays their delinquent wastewater bill prior to the deadline, their property and the levy amount will be removed from the list provided to the County.
In order to complete the process and meet the County submittal deadline, a Public Hearing must be conducted to approve the levy and list of properties of delinquent account holders that meet the criteria for placement of liens with the County.
If approved by the City Council/Rialto Utility Authority Board, staff will work to finalize the list of delinquent accountholders and levy amounts being submitted to the County. In addition, the City will provide and compare the most recent County property ownership data with the City’s account data and will submit the charges to the County on behalf of the City.
This item was presented to the Water Subcommittee on April 28, 2021, who recommended presenting it to the full City Council/Rialto Utility Authority Board for a Public Hearing.
FINANCIAL IMPACT:
Operating Budget Impact
The levy is comprised of accounts where the account owner is the same as the current property owner per the County secured tax roll. The potential total levy amount is $1,000,000 and there are approximately 1,000 delinquent accounts. The actual total levy amount and number of delinquent accounts may vary and will be created at the last moment to ensure customers have every opportunity to pay any delinquent account charges. The County of San Bernardino charges $0.30 per parcel for the use of their services and this amount will be added to the levy and collected by the County of San Bernardino.
RECOMMENDATION
Staff requests the Utility Commission recommend that the City Council/Rialto Utility Authority:
• Conduct a Public Hearing to receive public comment related to the placement of charges on the County Property Tax Roll for delinquent wastewater payments; and,
• Approve a Resolution authorizing the placement of delinquent wastewater payments on the County Property Tax Roll.