15 Shasta Lane, Walnut Creek, CA 94597 Office: 925-946-9090 Cell: 925-899-2578 Email: [email protected] City of Marysville Sewer Enterprise
Customer Payment Improvement Plan
November 2021
Purpose
The purpose of this project is to improve the bill payment rate from Marysville sewer system customers, primarily single-family residences that are tenants. Specifically, the objective is to incentivize single-family customers not paying bills at all to resume or begin paying bills. The secondary objective is to collect past-due amounts. This work will also improve payments from commercial customers.
Background
Historically, whereas the city has taken action for nonpayment from property owners, the city has not taken action with tenants. For property owners, delinquent balances have been subject to an annual process of assessment and lien through Yuba County. This means the delinquent balance is transferred to the owner’s tax bill as a special assessment. This further means if the property is sold that the balance must be paid before title to the property can be transferred. For tenant-customers, it has been the city’s policy not to lien the owners. The existing municipal code, in Section 6.04.130(2), provides for disconnection of service; however, this has not happened because it is highly impractical. Disconnection would be expensive, render a home uninhabitable, and create a health and safety hazard. See Attachment 1 for the existing municipal code language.
The Marysville sewer system customer base comprises 2,950 single-family customers. As of October 2021, approximately 250 of those single-family customers were more than three months delinquent, and approximately 100 of those customers were more than six months delinquent or not paying sewer bills at all. Of these 250 customers, the most egregious 100 are mostly tenants, and the remaining 150 customers are mainly owners with annual balances transferred to tax assessment and lien on an annual basis, meaning they pay through property taxes. During the COVID-19 pandemic there have been no late penalties charged, so customers paying through property tax assessment have effectively received interest-free loans from the city.
Monthly payment status has been tracked since April 2021. During the past three billing cycles, the amount of unpaid bills from single-family residences is increasing at an average rate of approximately $13,000 per month. Annually, this is $156,000, or about four percent of the sewer system’s $3.5 million annual revenue. These delinquent accounts are representative of the large number of single-family customers who are not paying bills. Over the long term, the non-paying customers are unjustly subsidized by the customers who pay their bills on time. See the bar chart below and the associated data in Attachment 2. The bar chart does not include adjustments downward for billing amounts deemed uncollectable (bad debt), nor does it include adjustments downward for amounts transferred to assessment and lien. This enables the bar chart to illustrate the full extent of customers not paying monthly sewer bills. 2 During this time of the COVID-19 pandemic, programs are available to help low-income, singlefamily customers with unpaid rent and utility bills. Two programs have been promoted to Marysville residents. One is the State of California program, “HousingIsKey.com.” The other is a grant program offered through the Yuba-Sutter Economic Development Corporation. These programs pay up to a year’s worth of unpaid rent and utility bills; however, they do not provide ongoing support. Promotional flyers were sent to single-family customers with delinquent balances twice this year, in May and again in August. The flyers were introduced by a cover letter on City letterhead showing the total delinquent balance for each customer. The May letter opened, “We have noticed you have not been paying your monthly sewer bill.” More directly, the August letter closed by stating, “The city will be increasing its effort to collect sewer service payments.” Participation thus far has been primarily in the Yuba-Sutter program with 26 payments totaling about $5,700. Unfortunately, this is a very small portion of the total amount due.
Payment Improvement Plan
The primary strategy to achieve payment improvement is to transfer the customer of record from the tenant to the property owner, and then follow with the assessment process when payments are not received. This is proposed in two ways. First, whenever a tenant moves from a rental unit going forward, the customer of record will be required to be the owner. Second, where a tenant is not paying the monthly sewer bills, the following process is proposed. 3 For tenant-occupied, single-family homes:
Step 1: A letter is sent to the tenant and property owner providing notification of the delinquent balance stating that service will be transferred to the owner if payment is not received within 30 days, and further that the amount due is subject to assessment and lien to the owner on the property tax bill. The letter will also include notification that the city will resume charging late fees of 10 percent for each late payment, plus one-half-of-one percent interest on the total unpaid balance.
Step 2: If payment is not received or if the tenant or property owner does not contact UMS within two weeks, UMS will make one attempt to call the tenant, and one attempt to call the owner if the owner’s phone number can be readily obtained.
Step 3. Considering that many owners may not be aware their tenants’ sewer bills are not being paid, if the owner is willing to immediately begin making payments, an agreement will be reached to reduce the past-due balance that is approved by the city manager. However, if the owner is not willing to begin making payments, the service will be transferred to the owners name and the full amount due will be subject to assessment and lien.
For all other sewer customers, a letter will be sent stating that the city shall resume charging late fees of 10 percent for each late payment, plus one-half-of-one percent interest on the total unpaid balance. This letter is focused on customer-owners not paying monthly sewer bills and taking advantage of paying sewer on their property tax bills.
Proposed Ordinance
Working closely with the city attorney, an ordinance has been prepared to amend the city’s municipal code regarding failure to pay sewer service charges (Attachment 3). In summary, the proposed changes are:
1. 6.04.120(d) is modified such that changes in sewer service and new sewer service shall be in the owner’s name.
2. 6.04.131 is added to provide for a transition to owner responsibility for delinquent accounts which are not paid (or payment arrangements made) within 30 days after notice.
Program Administration
UMS will issue all letters regarding non-payment of utility bills and will handle phone communications with customers. City staff, supported by the City Attorney and IGS, will provide the content for letters, provide training for customer follow-up phone conversations, and closely monitor the progress of the program. Training to handle customer inquires will also be provided to city customer service staff for calls that come to city hall. The objective of program administration will be that all customers and owners are proactively informed of the program, and that customers are treated fairly and equitably during implementation. 4 Timeline for Implementation
The first step of program implementation is the issuance of approximately 100 letters to tenantcustomers and associated owners with delinquent balances. A different letter will be sent to all remaining customers informing them that late penalties will resume with the March billing statement. This means that the 150 owner-customer deferring to tax assessment will have to pay an effective service charge through penalties for the benefit of deferring payment. Letters will be sent the week of January 4th, following the holiday season. After phone calling by UMS beginning in mid-January, UMS will issue the first bills to owners on March 9th. If owners do not pay ongoing amounts due, the delinquent balances will be subject to assessment and lien, submitted for City Council approval in July. Owners will then see the assessed amounts on their 2022-2023 property tax bills.
Expected Results
Payment improvements are expected in the following areas:
1. Tenants begin paying utility bills
2. Owners begin paying utility bills not being paid by tenants
3. Owners begin paying utility bills previously deferred annually to property tax bills
4. Resumption of late fees
An analysis of payments from the county compared to sewer amounts assessed indicates that at least 80 percent of delinquent amounts assessed are remitted to the city through property tax collection.
22 29 7 8 4 7 10 11 12 9 11 7 9
Draft Staff Report, Resolution, Ordinance
Final Staff Report, Resolution, Ordinance
City Council Meeting
UMS Issues December Bills
Owners become customer of record when tenant moves
Letters to delinquent tenants and owners week of Jan 4th Training for calls from tenants/owners
December Bills become delinquent
UMS Phone calling to follow up on mailed notices
UMS Manage Owner Inquiries
UMS Issues January Bills
UMS Issues February Bills
January Bills become delinquent
February Bills become delinquent
UMS issues March bills including first bills to owners Mar 9th Jan, Feb, Mar, Apr, May, Jun bills, subject to lien
July: Lien process to include all customers
Bills issued
Bills become delinquent
Program Steps Nov
Timeline for Marysville Sewer Collection Improvement
Jan 2022 Feb Mar
5 Regarding 1 and 2, above, the table below is a conservative calculation of the expected improvement from shifting responsibility to owners. The assumption is that only a small number of tenants will begin making payments, that the majority, 70 percent, will come from owners, and 20 percent will not be collected.
Of the 150 owners deferring payment to property tax bills, reinstating late penalties will provide an incentive to pay monthly to the city. This is not an increase in collections necessarily; however, it will be an improvement in cash flow for operation of the sewer enterprise.
Regarding revenue from late charges, the goal is not to collect late charges, but rather to influence customers to pay sewer fees in a timely manner. However, for the purposes of estimating late charges to be collected, the assumption is that of the 250 customer presently not paying at all, half will remain not paying. The annual revenue to the sewer enterprise from the monthly 10 percent late charge for 125 customers not paying sewer bills would be:
125 customers x $52.00/mo x 10% x 12 months = $7,800 /yr Plus, the 0.5% charge on the cumulative unpaid balance, which amounts to approximately $21/yr.
125 customers x $21/yr = $2,625 /yr
Though the revenue total of these two components of $10,425 is not significant overall to the sewer enterprise, per customer it is $84.25 per year for those customers electing not to pay bills and deferring to property taxes. Hopefully, this amount will be an adequate incentive for these customers to pay the city directly for sewer service.
Conclusion
Many sewer customers in the City of Marysville have been taking advantage for years of the city’s lenient collection policies, which pre-existed the COVID-19 pandemic. Non-paying sewer customers are unjustly passing their financial burden to paying customers. This proposed improvement plan and the accompanying changes to the city’s municipal code provide a fair and equitable approach to better collection of sewer service charges, with emphasis on extensive customer communication, and will provide increased collections of at least $60,000 per year. 100
Customers Factor Improvement
Tenants that begin paying 10% $520
Owners that pay for tenants through
monthly payment or assessment 70% $3,640
Uncollectable 20% $0
Total Improvement for Tenant-Customers 100% $4,160 per month $49,920 per year
$5,200
ATTACHMENT 1: EXISTING MUNICIPAL CODE
(7 PAGES)
Chapter 6.04
SEWERS AND SEWAGE DISPOSAL
6.04.010 Sewer connection charges established—Schedule of rates.
6.04.020 Connection charge payable when.
6.04.030 Payment confers right to single connection.
6.04.040 Transfer of sewage from lot for which connection charges not paid.
6.04.050 Sewer improvement fund.
6.04.060 Council to contract for construction of improvements to sewer system.
6.04.070 Subdivider to install sewer lines.
6.04.075 Service lateral.
6.04.080 Prohibited discharges into sanitary sewer system.
6.04.090 Provision for grease, oil or sand interceptors.
6.04.095 Backwater protection devices for sewer services.
6.04.100 Prevention of injurious substances in sewers.
6.04.120 Sewer service charge.
6.04.130 Failure to pay sewer service charge.
6.04.140 Penalties for nonpayment.
6.04.150 Governmental or public premises.
6.04.160 Violation and penalties.
6.04.010 Sewer connection charges established—Schedule of rates.
In order to establish appropriate provisions for the construction and expansion of the sanitary sewer system of the city and to be assured that the cost of such construction and expansion is borne by those who receive the benefits thereof, there is hereby established connection charges for all connections to the sanitary sewer system of the city; such connection charges shall be established by resolution. (Ord. 975 § 1, 1982: prior code § 21.1).
6.04.020 Connection charge payable when.
The sewer connection charge, above provided for shall be payable at the time the owner makes a request and obtains a building permit to construct a building which will use the sewer facilities of the city. (Prior code § 21.2).
6.04.030 Payment confers right to single connection.
The payment of a connection charge shall entitle the specified lot or parcel of land for which payment is made to a single connection to a sewer line. (Prior code § 21.3).
ATTACHMENT 1: EXISTING MUNICIPAL CODE
(7 PAGES)
6.04.040 Transfer of sewage from lot for which connection charges not paid.
Sewage originating on a lot or parcel of land for which a connecting charge has not been paid may not be transferred to any sewer line by way of another lot or parcel of land for which a sewer connection charge has been paid. (Prior code § 21.4).
6.04.050 Sewer improvement fund.
All fees collected under the provisions of this chapter including sewer connection charges provided for by Section 6.04.010 and sewer service charges provided for by Section 6.04.120 shall be paid into a fund hereby created known as the "sewer improvement fund," and the moneys paid into such fund shall be used only for the acquisition, construction, reconstruction, maintenance and operation of sanitation or sanitary sewer facilities, to repay principal and interest on bonds issued for the construction or reconstruction of such sanitary sewer facilities and to repay federal or state loans or advances made for the construction or reconstruction of sanitation or sanitary sewer facilities. (Ord. 960 § 8, 1981: prior code § 21.5).
6.04.060 Council to contract for construction of improvements to sewer system.
Whenever a subdivider or other property owner requiring the construction of sewer mains from his respective property to the nearest sewer main or pumping plant outside of his respective property and where, in the opinion of the council, it is necessary that a larger sewer main pumping plant or other improvements to the sewer system be constructed of a larger capacity than the minimum capacity needed to serve such subdivision or other property and that such extended sewer main will be or can be used in the disposal of sewage from adjacent properties not in such subdivision or other properties, and council may contract with either such subdivider or other property owner for the construction of such additional sewer main, pumping plant or other improvements to the sewer system upon such terms as the council shall deem reasonable and proper. (Prior code § 21.5-1).
6.04.070 Subdivider to install sewer lines.
No provisions of Sections 6.04.010 to 6.04.060 are intended to nor shall be construed to relieve or otherwise excuse any subdivider from the installation at his own sole cost and expense of all sanitary sewer lines and connecting lines within any subdivision created pursuant to Title 17 or other ordinances of the city. (Prior code § 21.5-2).
6.04.075 Service lateral.
Every user of the sanitary sewer system shall be connected to the city sewer main by a sewer service lateral. All sewer service laterals connecting a user, whether a single-family residence, commercial building, or other structure, to a city-owned sewer main located in the public right-of-way or easement shall be owned, maintained and repaired by the owner of the property being served, from and including ATTACHMENT 1: EXISTING MUNICIPAL CODE
(7 PAGES)
the lateral’s connection point at the city sewer main to the building or other point of use on the property.
This includes both the portion on private property and the portion located beneath the sidewalk and street or any other public right-of-way or easement areas such as alleys, trails, and landscape areas, up to and including the point where the lateral connects to the city sewer main:
(a) The connection of the lateral sewer/service lateral into the public sewer shall be made in accordance with the standard specifications and other city requirements and at the applicant’s expense. The property owner shall be obligated to install and maintain the sewer lateral at his/her sole expense from the sewer main to the building being served. Where the city has partially constructed the service lateral from the main to the property line in order to avoid the further or future tearing up of the streets, it shall be the property owner’s obligation to reimburse the city for the actual cost of that portion of the sewer service lateral constructed by the city. Property owners shall be solely responsible for the entire cost of the sewer service lateral from the main to the building being serviced, which shall be collected at the time of the connection to the public sewer system. The connection to the public sewer shall be made in the presence of a city inspector and under their supervision and direction. Any damage to the public sewer shall be repaired in conformance with the standard specifications and other city requirements at the cost of the applicant.
(b) Every house or building in and for which the plumbing work has been properly constructed and not previously connected to the city’s sanitary sewer system through either a combined or separate sewer service lateral shall be separately and independently connected to the sewer system by a sewer service lateral; provided, that in the case of an accessory dwelling unit, duplex or apartment houses one sewer may be permitted, if, in the opinion of the city engineer or such other person as the council may hereafter designate, it is adequate as to size and location. Nothing within this section precludes an existing house or building owner with an existing connection to a sewer service lateral serving multiple properties to apply for city approval to install a separate and independent sewer service lateral connection to the city’s sanitary sewer system.
(c) The city shall have the right to conduct maintenance inspection and/or repairs to the service lateral, if needed, and it shall be the property owner’s obligation to reimburse the city for the actual cost of such repair and inspection. (Ord. 1410 § 3, 2019).
6.04.080 Prohibited discharges into sanitary sewer system.
It is unlawful for any person to discharge or to cause or permit to be discharged any of the following materials into the sanitary sewer system of the city:
(1) Gasoline, benzene, naphtha, fuel oil or other flammable liquid or gas; ATTACHMENT 1: EXISTING MUNICIPAL CODE
(7 PAGES)
(2) Solid or viscous substances in quantities or of such size as to cause obstruction to the flow in sewers;
(3) Any waters or wastes containing toxic or poisonous solids, liquids or gases in sufficient quantity to injure or interfere with any treatment process; (4) Any liquid or vapor having a temperature higher than one hundred fifty degrees Fahrenheit; (5) Any water or waste containing fats, wax, grease, or oils in excess of fifty milligrams per liter; (6) Any garbage that has not been properly shredded and containing particles greater than onehalf inch in any dimension; (7) Any waters containing synthetic detergents in sufficient quantity to injure or interfere with any sewage treatment process or create problems in the receiving waters of the sewage treatment plant;
(8) Any water or waste containing radioactive material in sufficient quantity to injure or interfere with any sewage treatment process, constitute a hazard to humans or animals or create a hazard in the receiving waters of the sewage treatment plant;
(9) Any ashes, cinders, sand, mud, straw, shavings, metal, glass, fruit pits, rags, feathers, tar, plastics, paunch manure or any other solid or viscous substance capable of causing obstruction to the flow in sewers or other interference with the proper operation of the sewage system; (10) Wastewater from a cooling system;
(11) The suds or filthy water resulting from the washing of clothing, garbage or other material from kitchens or other foul or filthy matter;
(12) Any other garbage, offal, dead animals, filth, refuse, or any substance whatever having the tendency to obstruct the flow of water or sewage in the sanitary sewer system of the city; (13) Any stormwater, surface water, ground water, roof runoff or subsurface drainage. (Ord. 960 § 2, 1981).
6.04.090 Provision for grease, oil or sand interceptors.
Grease, oil or sand interceptors shall be provided when, in the opinion of the director of public works, the same are necessary to prevent accumulation of objectional substances from clogging or interfering with the normal sewage flow and sewage treatment. (Ord. 960 § 3, 1981).
ATTACHMENT 1: EXISTING MUNICIPAL CODE
(7 PAGES)
6.04.095 Backwater protection devices for sewer services.
Sewer service laterals serving plumbing fixtures in rooms with a floor elevation below the elevation of the next upstream manhole cover of the public sewer serving such drainage piping shall be protected from backflow of sewage by installation of an approved type of backwater valve. Fixtures in rooms with a floor elevation above such manhole elevation shall not discharge through a required backwater valve. (Ord. 1305 § 1, 2006).
6.04.100 Prevention of injurious substances in sewers.
(a) The director of public works is charged with enforcement of the provisions of this chapter and with the coordination of all city officials and departments in order to achieve its purposes. (b) The director of public works shall have the power to stop and prevent from discharging into the sanitary sewer system any private drain through which substances are discharged which are liable to injure the sanitary sewer system or to obstruct the flow of water or sewage. (c) The director of public works or his designated agent shall have the right to go upon the premises of the person discharging sewage into the sanitary sewer system for the purpose of checking the fixtures, establishing the sewer service charges, protecting the rights of the city in obtaining any information deemed necessary to protect such rights. (Ord. 960 § 4, 1981: prior code § 21.8).
6.04.120 Sewer service charge.
(a) All users of the sanitary sewer system shall pay to the city for the use of such facilities, a sewer service charge. Such sewer service charge shall be imposed for the purpose of recovering all or a portion of the costs of operating the sanitary sewer system including operation and maintenance costs and capital and replacement costs.
(b) The city council shall by resolution establish the amount of such sewer service charges and may classify or define various kinds of domestic or commercial sewage in accordance with their relative effects upon the operation of the sanitary sewer system and may provide for varying charges for operation and maintenance in accordance with the relative difficulty or cost to the city in accepting and treating the sewage.
(c) All such sewer service charges shall be a debt owed to the city and in default of payment thereof, the city may utilize any of the remedies set forth in Section 6.04.130 for collection of such sewer service charges.
ATTACHMENT 1: EXISTING MUNICIPAL CODE
(7 PAGES)
(d) All sewer service charges shall be billed to the owner of record of the property as reflected on the current assessor’s roll or to the occupant who is using the sanitary sewer system, or to any person requesting in writing that such service charge be billed to him. (Ord. 960 § 5, 1981).
6.04.130 Failure to pay sewer service charge.
In the event that any person liable therefor fails to pay the sewer service charge imposed hereunder within thirty days after it becomes delinquent, the city may take any one or more of the following actions:
(1) An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of the delinquent sewer service charge;
(2) In the event of habitual delinquency, or by reason of accounts otherwise not collectible, the city may disconnect the premises from the public sewer; provided, however, that such disconnection shall not be made until notice of such action is given by certified mail to the property owner and such property owner or other person to whom the service charge is to be billed has an opportunity to appear and have the matter heard by the city council; (3) After giving written notice to the property owner or to the person to whom the service charge is to be billed and providing such person with an opportunity to be heard by the city council, the city council may order that said delinquent sewer service charge shall be assessed against the property and it shall confirm the assessment, cause the same to be recorded on the assessment roll, and thereafter said assessment shall constitute a special assessment against any lien upon said property. The validity of any assessment made under the provisions of this section shall not be contested in any action or proceeding unless the same is commenced within thirty days after the assessment is placed upon the assessment roll as provided in this chapter. Certified copies of such assessment shall be given to the county assessor and the county tax collector who shall add the amount of the assessment to the next regular tax bill levied against the parcel and such assessment shall be collected at the same time and in the same manner as ordinary property taxes are collected and shall be subject to the same penalties and procedure and sale in case of delinquency as provided for ordinary property taxes. (Ord. 960 § 6, 1981).
6.04.140 Penalties for nonpayment.
Whenever a delinquency shall occur for nonpayment, a penalty of ten percent shall be attached to the delinquent charge and for each month that such charge remains delinquent, a further penalty of one-half of one percent shall be added. For purposes of this chapter, a sewer service charge shall be deemed to be delinquent thirty days after such charge is due and payable. (Ord. 960 § 7, 1981).
6.04.150 Governmental or public premises.
ATTACHMENT 1: EXISTING MUNICIPAL CODE
(7 PAGES)
The provisions of this chapter shall apply to governmental or public premises as well as to premises which are not governmental or public premises. As used herein, the terms "governmental or public premises" means and includes premises which are owned, controlled or used by: (i) the United States Government or any department or agency thereof; (ii) the state, or any department or agency thereof; (iii) any city or county or any of their departments or agencies; (iv) any school district; and (v) any other governmental or public entity. (Ord. 960 § 9, 1981).
6.04.160 Violation and penalties.
It is unlawful for any person to violate any provision or fail to comply with any of the requirements of this chapter. Any person violating any of the provisions of this chapter shall be deemed guilty of an infraction punishable on the first offense by a fine of one hundred dollars and on each subsequent offense by a fine of one hundred fifty dollars. (Ord. 1160 § 32, 1993: Ord. 960 § 10, 1981).
Month As of
From Aging
Reports
Write Offs
factored back
in
Adjusted
Total
From Aging
Reports
Write Offs
factored back in
Adjusted
Total
From Aging
Reports
Write Offs
factored
back in
Adjusted
Total Total Change
Jul 2019 07/01/19 $107,705 $60,634 $168,339 $11,257 $6,337 $17,594 $10,080 $5,675 $15,755 $201,688 $72,646 Write offs to Lien of $72,645.59 on 8/5/19 Jul 2020 07/01/20 $146,571 $68,892 $215,463 $15,304 $7,193 $22,497 $11,691 $5,495 $17,186 $255,146 $53,458 $81,580 Write offs to Lien of $81,580.03 on 8/5/20 Apr 2021 04/01/21 $155,372 $129,526 $284,898 $18,846 $13,531 $32,377 $19,766 $11,170 $30,936 $348,210 $93,064 May 2021 05/01/21 $167,916 $129,526 $297,442 $21,566 $13,531 $35,097 $17,354 $11,170 $28,524 $361,062 $12,852 388 Letters sent week of 5/13 Jun 2021 06/01/21 $174,082 $129,526 $303,608 $22,558 $13,531 $36,089 $18,449 $11,170 $29,619 $369,315 $8,253 689 Lien letters sent 6/21 Jul 2021 07/01/21 $174,455 $129,526 $303,981 $22,875 $13,531 $36,406 $18,163 $11,170 $29,333 $369,719 $404 Aug 2021 08/01/21 $164,864 $129,526 $294,390 $21,187 $13,531 $34,718 $16,812 $11,170 $27,982 $357,089 -$12,630 Sep 2021 09/01/21 $105,164 $203,135 $308,299 $5,556 $28,310 $33,866 $11,099 $21,411 $32,510 $374,674 $17,585 $98,629 Oct 2021 10/01/21 $114,430 $203,135 $317,565 $12,041 $28,310 $40,351 $10,427 $21,411 $31,838 $389,753 $15,079 Nov 2021 11/01/21 $130,394 $203,135 $333,529 $12,404 $28,310 $40,714 $13,500 $21,411 $34,911 $409,153 $19,400 Aug-Sep $13,909
Sep-Oct $9,266
Oct-Nov $15,964
Three-Month Average $13,046
Marysville Sewer Customer Payment Improvement Tracking
Lien report.
customers on 7/6/21. Allocations based on
Write offs to Lien of $98,629 for 197 active
Actual Results Total Outstanding Active Accounts MORE THAN 30 DAYS PAST DUE Single-Family Multi-Family All Others
Write Offs
Adjust for
to Lien
Comments
ATTACHMENT 2: BILL PAYMENT TRENDING
1 ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MARYSVILLE AMENDING CHAPTER 6.04 OF TITLE 6 OF THE MARYSVILLE MUNICIPAL CODE REGULATING
PAYMENT OF SEWER SERVICE CHARGES
WHEREAS, the City Council of the City of Marysville desires to amend portions of the Marysville Municipal Code to improve collection of sewer service charges such that customers responsibly paying their sewer bills are not subsidizing customers who are not paying their sewer bills;
WHEREAS, Health and Safety Code Sections 5470 et seq and other law authorizes, by legislative action, the specified processes to revise and collect fees, tolls, rates, rentals or other charges for services and facilities furnished in connection with a sewerage system; and WHEREAS, following due and property public notice as required by law, the City Council has conducted a public hearing on this matter.
NOW, THEREFORE, the City Council of the City of Marysville does ordain as follows:
SECTION ONE. Statement of Purpose.
This Ordinance is intended to improve collection of sewer service charges from customers receiving sewer service in the City of Marysville. Inasmuch as sewer service is a property-related service, this Ordinance will ultimately result in the owner of the property receiving such service as the customer of record with responsibility for payment of sewer service charges.
SECTION TWO. Section 6.04.120 of the Marysville Municipal Code is amended to read in its entirety as follows:
(a) All users of the sanitary sewer system shall pay to the City for the use of such facilities, a sewer service charge. Such sewer service charge shall be imposed for the purpose of recovering all or a portion of the costs of operating the sanitary sewer system including operation and maintenance costs and capital and replacement costs.
ATTACHMENT 3: PROPOSED ORDINANCE
(4 PAGES - NOT FOR EXECUTION)
2 (b) The City Council shall by resolution establish the amount of such sewer service charges and may classify or define various kinds of domestic or commercial sewage in accordance with their relative effects upon the operation of the sanitary sewer system and may provide for varying charges for operation and maintenance in accordance with the relative difficulty or cost to the City in accepting and treating the sewage.
(c) All such sewer service charges shall be a debt owed to the City and, in default of payment thereof, the City may utilize any of the remedies set forth in Section 6.04.130 for collection of such sewer service charges.
(d) On and after the effective date of this Ordinance, all new sewer service accounts shall be placed in the name of the owner of record (as reflected on the current Yuba County Assessor’s roll) of the property receiving such sewer service. On and after the effective date of this Ordinance, any transfer of sewer service accounts must be transferred into the name of the owner of record of the property receiving sewer service. All sewer service accounts which remain delinquent as specified in Section 6.04.131 of this Code shall be transferred into the name of the owner of record of the property receiving such sewer service who shall thereafter be responsible for payment of the sewer service charges for sewer service provided to the property. The owner of the property receiving sewer service may consent that a non-owner person, firm or entity receive a duplicate bill for sewer service to the property in question and that such person, firm or entity may pay the charges for such service. Notwithstanding the property owner’s consent to duplicate billing, the property owner shall remain primarily and personally responsible for all sewer service charges, including penalties and interest associated with sewer service provided to the owner’s property.
ATTACHMENT 3: PROPOSED ORDINANCE
(4 PAGES - NOT FOR EXECUTION)
3 SECTION THREE. Section 6.04.131 is hereby added to the Marysville Municipal Code:
6.04.131 Transfer of Delinquent Accounts into the name of the property owner.
In the event a sewer service account stands in the name of a person, firm or entity who is not the owner of record of the property receiving such service, and if such account is more than thirty (30) days delinquent, the City, or its billing agent on behalf of the City, shall provide written notice to the person, firm or entity in whose name the sewer service account is held and to the property owner of record as shown on the current Yuba County Assessor’s roll which shall include the following information:
(1) The service location, name and address;
(2) The amount of the delinquency;
(3) That payment of all delinquent amounts must be received within thirty (30) days of the date of the notice, or the owner of record’s property will be subject to assessment and lien. (4) A description of procedures by which alternative payment arrangements can be made with respect to the delinquent service charges; and
(5) Contact information for the notice recipients to discuss resolution of the delinquent charges.
Unless all delinquent charges have been paid within thirty (30) days of notice (or unless alternative arrangements have been made regarding such delinquent balance) the owner of record of the property receiving sewer service shall be personally responsible for sewer service charges provided to the property (whether or not the owner requests to be placed on the sewer service account) and additionally the owner’s property shall be subject to assessment and lien pursuant to the provisions of Section 6.04.130.
ATTACHMENT 3: PROPOSED ORDINANCE
(4 PAGES - NOT FOR EXECUTION)
4 SECTION FOUR. Severability.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City of Marysville hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.
SECTION FIVE. Effective Date.
This Ordinance shall take effect thirty (30) days after its adoption by the Marysville City Council.
The foregoing Ordinance is passed by the City Council of the City of Marysville on the ____ day of __________ 2022 by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of said City this ____ day of ___________, 2022.
By: ________________________
Nicole Moe, City Clerk
CITY OF MARYSVILLE, CALIFORNIA
By its City Council
By:
Chris Branscum, Mayor
ATTACHMENT 3: PROPOSED ORDINANCE
(4 PAGES - NOT FOR EXECUTION)