Sacramento Municipal Code Art. II Billing and Collection

A. Utility service charges that apply to utility services rendered to a parcel of real property shall be billed to the owner of the parcel at the owner's address. Utility service charges for various utility services may be billed on one bill in one total amount.

B. Notwithstanding the foregoing, the director may, in the director's sole discretion, send the bill for any or all utility service charges to the tenant of a parcel to which utility services are rendered, instead of to the parcel owner, if the owner signs a written request to bill the tenant on such form as may be specified by the director, provided that the utility services account shall remain in the owner's name and the owner shall be fully responsible and liable for the payment of such utility service charges as if the bill had been sent to the owner. Such request shall be accompanied by payment of the applicable processing fee established pursuant to Section 13.04.735.

C. Notwithstanding the foregoing, if authorized by the director, and subject to such terms and conditions as may be specified by the director:

1. The rates, fees, and charges that apply to one or more utility services rendered to a condominium project's condominium units or common area(s) may be billed to the association managing the condominium project, as provided in Section 13.04.220(A)(1).

2. In a common interest development, the rates, fees, and charges for an unmetered water service connection that is changed to a metered service connection with metered rate billing, or for a metered water service connection that is changed from flat rate to metered rate billing, shall be billed as provided in Section 13.04.220(A)(2).

3. The rates, fees, and charges that apply to irrigation service, as defined in Section 13.04.030, for the common area(s) of a common interest development, may be billed to the association or other entity managing the common interest development, as provided in Section 13.04.220(A)(3).

4. The rates, fees, and charges that apply to irrigation service, as defined in Section 13.04.030, for a common irrigation system that crosses parcel lines in a commercial development that is not a common interest development, may be billed to a single owner or the owner's authorized representative, as provided in Section 13.04.220(A)(4).

D. If any utility services are billed to an association or other entity pursuant to subsections (C)(1), (2), or (3) of this section:

1. The association or other entity shall be fully responsible for payment to the city of all amounts billed, and the city shall have no responsibility for, nor any involvement in, the association's or other entity's allocation, billing, and collection of these costs from the owners of the separate interests or residents in the common interest development, whether based on sub-metering or any other basis; and

2. With respect to the utility services billed to the association or other entity, the association or other entity is considered the "owner":

a. Liable for payment as specified in Section 13.12.020;

b. For purposes of the delinquent service charge procedures specified in Sections 13.12.070 through 13.12.100; and

c. For purposes of the termination of service procedures specified in Article III of this chapter.

E. If irrigation service is billed to an owner or the owner's authorized representative pursuant to subsection (C)(4) of this section:

1. The owner or the owner's authorized representative shall be fully responsible for payment to the city of all amounts billed, and the city shall have no responsibility for, nor any involvement in, the allocation, billing, and collection of these costs by the owner or the owner's authorized representative;

2. The owner shall be liable for payment as specified in Section 13.12.020; and

3. The owner shall be subject to the delinquent service charge procedures specified in Sections 13.12.070 through 13.12.100, and the termination of service procedures specified in Article III of this chapter.

F. Notwithstanding any other provision of this section, if a lessee of a city-owned property is required by the lease to pay utility service charges that apply to the utility services rendered to the property, the utility service charges may be billed to the lessee, and with respect to such charges, the lessee is considered the "owner":

1. Liable for payment as specified in Section 13.12.020; and

2. For purposes of the termination of service procedures specified in Article III of this chapter.

G. The director may require the owner to provide a security deposit equal to three times the estimated monthly bill for water, sewer, and/or storm drainage service rendered to the owner's parcel, in accordance with Section 10009.6 of the California Public Utilities Code. The director may establish procedures and requirements governing the collection, maintenance, use, and return of security deposits. (Ord. 2015-0011 § 12; Ord. 2013-0014 § 29; Ord. 2011-051 § 2)

Notwithstanding any contrary provision of this code, if the director authorizes water service to a project consisting of vertical parcels pursuant to Section 13.04.225:

A. The rates, fees, and charges for water service rendered to the city's metered points of service shall be billed to the "authorized party" defined in Section 13.04.225;

B. The "authorized party" defined in Section 13.04.225 shall be fully responsible for payment to the city of all amounts billed, and the city shall have no responsibility for, nor any involvement in, the authorized party's allocation, billing, and collection of these costs from the owners or occupants of the parcels; and

C. The "authorized party" defined in Section 13.04.225 is considered the "owner" for purposes of the termination of service procedures specified in Article III of this chapter. (Ord. 2015-0011 § 13)

A. When the director determines that a parcel owner was not billed or was under-billed for utility services rendered to the parcel, the parcel owner is responsible and liable for payment of the utility service charges that were not billed for such period as may be determined by the director, provided that the maximum period of utility service charges for which the department may back-bill the owner is three years.

B. When the director determines that a parcel owner was over-billed for utility services rendered to the parcel, the parcel owner is entitled to a credit for the over-billed amount for such period as may be determined by the director, provided that the maximum period of utility service charges for which the department may provide a credit to the owner is three years. Any claim for any amount that exceeds the amount of the credit determined to be due by the director is governed by Section 3.04.070. (Ord. 2013-0014 § 30)

Utility services shall be billed on a monthly basis, or on such other periodic frequency as may be specified by ordinance or resolution of the city council. (Ord. 2011-051 § 2)

Billing for utility services serving new development on any parcel of real property shall commence on the date that usage of utility services begins, the date the development is first occupied, or the date the development is given final approval by city officials in accordance with applicable provisions of this code, whichever occurs first. The director may adopt written guidelines to implement the provisions of this section and specify criteria for determining when billing for utility services starts in other situations. (Ord. 2011-051 § 2)

A. Utility service charges are due upon presentation of the bill for services. Charges unpaid twenty (20) days after presentation of the bill for services become past due (delinquent).

B. Charges that remain unpaid fifteen (15) days following the past due date shall be assessed a basic penalty of ten (10) percent of the delinquent charges. Beginning forty-five (45) days following the past due date, an additional penalty of one-half percent per month shall be added for any portion of the delinquent charges and basic penalty that remains unpaid. If any federal or state law restricts the city's ability to apply these penalties to a specified category of owners, the penalty amounts shall be reduced as required to comply with the law.

C. For any portion of the delinquent charges and penalties that remains unpaid sixty (60) days following the past due date, the director may cause a written notice to be mailed to the owner at the owner's address, advising the owner that the delinquent charges and penalties remaining unpaid seventy-five (75) days following the past due date will become a lien on the parcel of real property to which the utility services were rendered. The notice also shall notify the owner that the owner may request an informal hearing on the delinquent charges.

D. If the owner desires a hearing, the owner shall provide the director with a written request for a hearing within ten (10) days after the date of the director's notice. Upon receipt of a timely request for hearing from the owner, the director shall provide owner written notice of the date, time, and location of the informal hearing, which shall be scheduled not less than ten (10) days after the date of the director's notice of the hearing to the owner. The hearing shall be held before a department employee designated by the director to conduct the hearing, who shall mail a written notice of his or her decision to the owner at

the owner's address as soon as practicable after the hearing. The decision is the city's final administrative determination of the matter.

E. During a local emergency declared by the city council, the city council may, by resolution, temporarily suspend the assessment of penalties described in subsection B. (Ord. 2020-0020 § 2; Ord. 2013-0014 § 31; Ord. 2011-051 § 2)

A. If the owner fails to request a hearing within the time specified in Section 13.12.070, or if the owner time-ly requests a hearing but fails to appear, or if after a hearing the director's designee decides that delinquent charges and penalties are owing, the director shall file a lien by recording with the Sacramento County recorder's office a certificate or report, in the format specified by the recorder's office. The certificate or report shall identify the owner's name, the real property to which the utility services were rendered, and the amount of the delinquent charges and penalties that remains unpaid seventy-five (75) days following the past due date. From the time the certificate or report is recorded, the amount required to be paid, together with applicable penalties, constitutes a lien in accordance with and subject to the provisions of Section 5473.11 of the California Health and Safety Code, and may be enforced or collected upon as provided in state law. Thereafter, the lien shall not be released unless and until it is fully paid, is rendered invalid by operation of law, or the director determines that it was recorded in error. The owner is responsible for payment of any fees applicable to the lien release.

B. The director is authorized to determine the minimum amount of delinquency, if any, for recording a lien as provided herein. (Ord. 2015-0011 § 14; Ord. 2013-0014 § 32; Ord. 2011-051 § 2)

Not less often than once a year, the director shall initiate proceedings to make delinquent utility service charges special assessments against the parcels of real property to which the utility services were rendered. Such proceedings shall be initiated and conducted in accordance with the provisions of Section 13.12.100. (Ord. 2011-051 § 2)

A. The director shall prepare a report of delinquent utility service charges, and shall mail to the owner of each parcel of real property identified in the report, at the owner's address, a written notice of the city's intention to make the delinquent charges a special assessment against the parcels of real property to which the utility services were rendered. The notice shall inform the owner of the owner's right to file a written objection or protest with the director. Any objection or protest must be received by the director within fifteen (15) days after the date of the director's notice.

B. Upon receipt of a timely written objection or protest, the director shall review the objection or protest and mail a written response to the owner at the owner's address. The director's response also shall inform the owner of the owner's right to object or protest before a hearing officer, and shall notify the owner of the date, time, and location of the hearing, which shall be not less than fifteen (15) days after the date of the director's response. An owner must request a hearing within ten (10) days after the date of the director's response.

C. Only those owners who filed a timely objection or protest in accordance with subsection A of this section, and made a timely request for a hearing in accordance with subsection B of this section, shall be permitted to have their objection or protest heard by the hearing officer. Before the date of the hearing, the director shall transmit to the hearing officer the objections or protests from owners who filed a timely objection or protest and made a timely request for a hearing, a list of the applicable delinquent utility service charges, and all other relevant information.

D. At the hearing, the hearing officer shall consider the delinquent utility service charges together with any objections, protests, and other relevant information received before or at the hearing. The hearing officer is authorized to make revisions to the delinquent utility service charges for any owner appearing at the hearing if the hearing officer finds that revisions are necessary to correct an error or otherwise invalid charge. As soon as practicable after the hearing, the hearing officer shall provide the owners appearing at the hearing with written notice of his or her decision, including any revisions made by the hearing officer to the delinquent utility service charges. The hearing officer also shall transmit any revisions to the director, who shall submit the report of delinquent utility service charges (as revised) to the city clerk to be transmitted to the city council. The director shall mail to the owners who appeared before the hearing officer written notice of the date, time, and location of the public hearing described in subsection E of this section.

E. Upon receipt of the report from the hearing officer, the director shall schedule a public hearing before the city council. The city clerk shall cause notice of the hearing to be published pursuant to California Government Code Section 6066. At the hearing, the city council shall consider any objections or protests de novo, provided that only those owners who filed a timely objection or protest and a timely request for a hearing in accordance with the provisions of subsections A and B of this section, and appeared before the hearing officer, shall be permitted to have their objection or protest considered by the city council. At the conclusion of the hearing, the city council may adopt a resolution adopting the report, with or without modifications. If the city council finds that the objections or protests considered by the city council have been made by the owners of a majority of the separate parcels of property described in the report, the report shall not be adopted.

F. After adoption of the report by the city council, the delinquent utility service charges contained therein constitute a special assessment and lien, effective in accordance with applicable law, against each parcel of real property to which the utility services were rendered. Thereafter the assessment shall be collected at the same time, by the same persons, and in the same manner, together with and not separately, as ordinary secured property taxes are collected, and shall be subject to the same penalties and same procedures of sale as provided for delinquent ordinary secured property taxes. The assessment shall be subordinate to all existing special assessment liens previously imposed upon the property, and paramount to all other liens except those for state, county, and municipal taxes, with which it shall be on parity. The lien shall continue until the assessment and all interest and penalties due and payable thereon are paid or the lien is released or is prevented from attaching by operation of law. All laws applicable to the levy, collection, and enforcement of secured property taxes shall be applicable to the special assessment and lien, except as may be provided otherwise by state law.

G. On or before August 10th, a copy of the resolution and report, endorsed by the city clerk as a true copy of the resolution and report adopted by the city council, shall be filed with the Sacramento County auditor. The descriptions of the parcels of real property subject to the special assessments and liens shall be those used for the same parcels by the Sacramento County assessor for the current year. (Ord. 2015-0011 § 15; Ord. 2011-051 § 2)

The validity of any special assessment and lien imposed under Section 13.12.100 shall not be contested in any action or proceeding unless the action or proceeding is commenced within thirty (30) days after the date the city council adopts the resolution confirming the report of delinquent utility services charges. An owner's failure to file a timely objection or protest, make a timely request for a hearing, appear at the hearing, or present their objection or protest to the city council, in accordance with Section 13.12.100, constitutes a failure to exhaust administrative remedies with regard to the special assessment. (Ord. 2015-0011 § 16; Ord. 2011-051 § 2)