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Date Adopted:
Date Approved:
Effective Date:
City Attorney Approval: ______
Resolution No.
RESOLUTION NO. ____________
A RESOLUTION OF THE COUNCIL OF THE CITY OF
FRESNO, CALIFORNIA, FOR THE DELINQUENT UTILITIES
ENFORCEMENT ACT DIRECTING THE CITY MANAGER
OR DESIGNEE TO COLLECT ON ALL DELINQUENT
UTILITY ACCOUNTS OVER $50,000
WHEREAS, the City of Fresno (City) provides various utility services to properties throughout the City, including sewer, water, and solid waste services, for which the City charges a fee for services; and
WHEREAS, while most accounts within the City are current, there are some delinquent utility accounts; and
WHEREAS, while the City has had remarkable success in negotiating and collecting on some delinquent utility collections, there are still a number of these accounts that have become egregiously delinquent and overdue; and WHEREAS, the City Council adopted an ordinance in 1970; as amended to address the collection of late payments for municipal service bills; and WHEREAS, the Department of Public Utilities has depleted its fiscal reserves and was on the brink of insolvency; and
WHEREAS, the City Council recently approved the first rate increase for solid waste services since 2009; and
WHEREAS, given the current delinquency amounts, delinquent accounts may never be paid off if the City fails to take action to recover the amount owed; and WHEREAS, for the benefit of rate payers, the City is now taking steps to recover payment on delinquent utility accounts to make the utility whole; and
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WHEREAS, in lieu of court action, the Council would like to increase the City’s efforts in collecting on all delinquent utility accounts over $50,000 , including services charges and penalties ; in order to minimize future rate increases as part of the City’s Delinquent Utilities Enforcement Act.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fresno as follows:
1. The City Manager is hereby directed to increase the City’s efforts in collecting on all delinquent utility service accounts over $50,000, and 120 days past due.
2. The City Manager should immediately begin collecting on any outstanding accounts that are nearing an overdue period of three years; in order to meet the statute of limitations for the collection of debt in California.
3. The City Manager shall have the authority to enter into utility payment agreements with a delinquent customer , up to $ 100,000. Payment agreements over $100,000 would require City Council approval.
4. The City Manager is authorized to initiate the discontinuation of utility services for customers whose account balances are $100,000 or more; and unwilling to enter into an utility payment agreement.
5. To the extent that the City is able to recover penalties; the penalties recovered shall be placed into a special fund and distributed to income qualified utility customers affordability credit programs and/or used to offset operational costs to minimize future rate increases.
6. As a result of the drought, it is critical the City take action to protect public health and safety, through the conservation of water and to hinder City residents from
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over watering and the public’s interest in keeping utility service payment low; the City Manager is authorized to publish the names of those customers with delinquent utility service accounts over $50,000, and 120 days past due
7. This resolution shall be effective upon final approval.
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STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, TODD STERMER, City Clerk of the City of Fresno, certify that the foregoing resolution was adopted by the Council of the City of Fresno, at a regular meeting held on the day of 2024.
AYES :
NOES :
ABSENT :
ABSTAIN :
Mayor Approval: , 2024
Mayor Approval/No Return: , 2024
Mayor Veto: , 2024
Council Override Vote: , 2024
TODD STERMER, CMC
City Clerk
By:
Date
Deputy
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Angela M. Karst Date
Senior Deputy City Attorney