REPORT TO COUNCIL
SUBJECT
Title
Consider a Resolution Authorizing the City Manager to Suspend Late Charges and Delinquency Processing Fees for Water, Sewer, and Garbage Collection Services and Extend the Suspension of the Interruption of Water Service until December 31, 2021
Report
BACKGROUND
The City bills for each of its three municipal utilities (water, sewer, and solid waste and recycling) on a combined bi-monthly or monthly utility bill to all utility customers in the City. Each utility customer receives a regular bill for service. Once a bill is past due, utility customers also receive a reminder notice, and then a final demand notice notifying them that failure to pay may result in water service interruption.
Because the discontinuation of sewer service is both more difficult and would have an immediate and direct impact on the health and safety of the neighboring properties, the City does not discontinue this service due to non-payment. Therefore, active utility customers without water service receive the same notifications until the final written demand that failure to pay will result in collection action being initiated. As the cost for garbage service is a requirement mandated by the Sunnyvale Municipal Code (SMC) for all occupied premises (also a public health benefit), it is also very rare to stop providing garbage service.
When a customer receives a reminder notice, a 5% penalty is imposed (SMC section 12.50.050). If a customer reaches the point of final noticing, a $50 Delinquency Processing Fee Utility is assessed, pursuant to the Sunnyvale Fee Schedule, which reflects the cost of preparing and delivering a hand delivered shut-off notice.
The City has been responding to the impacts of the COVID-19 pandemic since March 2020. The pandemic hit many Sunnyvale residents and businesses with unprecedented and unanticipated hardship, and for some, the impacts of the pandemic continue with the recent spread of the Delta variant. Sunnyvale acted q...
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