For City Council and Rialto Utility Authority Meeting July 23, 2024
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
FROM: Tanya Williams, Assistant City Manager
Title
Request City Council/Rialto Utility Authority to 1) Conduct a Public Hearing Related to the Placement of Sewer Service Charges on the County Property Tax Roll for Delinquent Wastewater Payments; and 2) Approve City Resolution No. 8272 and RUA Resolution No. 08-39 authorizing the placement of delinquent wastewater payments on the County Property Tax Roll.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority:
1) Conduct a Public Hearing related to the placement of charges on the County Property Tax Roll for delinquent wastewater payments; and,
2) Approve City Resolution No. 8272 and RUA Resolution No. 08-39 authorizing the placement of delinquent wastewater payments on the County Property Tax Roll.
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.
To collect sewer-only accounts more effectively, 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 was June 24, 2024. It should be noted that if a customer paid their delinquent wastewater bill prior to the deadline, their property and the levy amount will be removed from the list provided to the County. A copy of the letter is included as Attachment 1.
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. A copy of the Notice of Public Hearing and proof of publication is included as Attachments 2 and 3.
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. The most recent list of the delinquent properties available is included as Attachment 4.
This item was presented to the Water Subcommittee on May 29, 2024, and to the Utilities Commission on June 18, 2024.
ENVIRONMENTAL IMPACT:
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b)( 5) a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and supports the staff report.
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 projected to be approximately $1,031,265.12 and there are approximately 1,309 delinquent accounts.