For City Council and Rialto Utility Authority Meeting [June 27, 2023]
TO: Honorable Mayor and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Thomas J. Crowley, P.E., Utilities Manager
Title
Conduct a Public Hearing to Receive Public Comments Related to the Placement of Sewer Service Charges on the County Property Tax Roll for Delinquent Accounts and Approve City Resolution No. 8105 and RUA Resolution No. 06-23 Authorizing the Placement of Delinquent Wastewater Payments on the County Property Tax Roll.
(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.
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 26, 2023. 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. 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.
On March 12, 2020, the City Council/Rialto Utility Authority Board adopted Resolution 7600 declaring a local emergency in response to the COVID-19 outbreak. On February 1, 2023, the City Council/Rialto Utility Authority adopted Resolution 8036 ending the moratorium on water turn-offs and begin assessing late fees and penalties. Customers experiencing financial hardship are being helped with payment arrangements and financial assistance through the Low-Income Household Water Assistance Program (LIHWAP). It should be noted that the total levy amount for Fiscal Year 2022-2023 is projected to be approximately $1,018,215 for 1,459 delinquent accounts, less the 406 accounts that have not been delinquent within the last 2 years, bringing the levy amount to $733,518 representing 1,053 delinquent accounts.
Below is a table that shows the number of customers notified that they may be placed on the tax roll versus the customers that came in and paid prior to being placed on the tax roll versus the customers that were eventually placed on the tax roll. An average of 1,255 parcels were placed on the tax roll for 2019 through 2022:
Below is a table that shows the number of parcels that are on the proposed tax roll and were place on a previous year’s tax roll and compared to this year proposed tax roll list.
The data shows that nearly 2/3 of delinquent sewer only accounts were previously levied on the tax roll, implying a conscience choice to pay for sewer service through the tax roll process. On that basis, RWS has reviewed the current list of sewer only delinquent accounts and will exclude 406 accounts from the proposed tax roll levy as these accounts were not delinquent in the past annual tax roll levy. Staff will coordinate with these accounts to connect them with financial assistance that is available for utility payments.
This item was presented to the Utilities Commission on May 16, 2023, which recommended presenting it to the full City Council/Rialto Utility Authority Board for a Public Hearing and approve submitting the delinquent account to San Bernardino County to be placed on the tax roll.
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 $733,518 and there are approximately 1,053 delinquent accounts.
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority:
• Conduct a Public Hearing to receive public comments related to the placement of charges on the County Property Tax Roll for delinquent wastewater payments; and,
• Approve City Resolution No. 8105 and RUA Resolution No.06-23 authorizing the placement of delinquent wastewater payments on the County Property Tax Roll.