Landlords in Gridley showed up en masse Monday night at Gridley City Hall, to voice their objections to plans to hold them responsible for uncollected utility bills of their tenants.
Landlords Chris Dewsnup, Robert King, Roger Biggs, Delaina Watson and property manager Jeanne Hart, spoke to council members all believing that the utilities should not be the responsibility of the landlords.
The town of Paradise and the Cities of Biggs, Yuba City, Colusa, Live Oak and Oroville, all hold their landlords responsible for unpaid utilities of their properties.
The City of Gridley is the only City locally that bills renters. "We are the only City in the area not enforcing through payments," Hickey stated.
The uncollected amount of utilities payments due through June 30, 2008 was $132,000.
City Administrator Rob Hickey explained that the City Council never intended for the City to absorb the costs.
"It has been a misunderstanding that the tenant is solely responsible rather than the property owner," he explained. "The process was never fully worked through."
Other Cities base the charge on a historical basis to their renters in the rent charged each month.
"It is a fairness issue. Those who are paying on a regular basis are covering those who choose not to pay. The Council asked me to address this issue when I came here last year, to make sure the City is not responsible," Hickey stated.
Councilman Bruce Johnson stated, "We've looked at the collection policy. We bear some blame for that. The billing cycle will be changed, instead of four cycles of billing, it will be changed to one, so that we know there is a problem much quicker."
Hickey looked into what other Cities do and stated that the City cannot lien for electricity, but that they can put liens on for water, sewer and garbage.
"Other Cities have struggled, that is why they have come to the lien procedure to cure the problem," Hickey said.
With the City's proposed lien process to property owners, the City would periodically send letters to property owners with a date for a Public Hearing to give the owners an opportunity to come to the City Council prior to addressing them with a resolution adopting a lien.
Deposits charged to new utility customers were discussed. Deposits are returned in two years, but Councilman Dan Boeger asked if the City could keep the deposits on hand longer.
King requested the second reading of the resolution holding property owners responsible, to be postponed.
Councilman Dave Garner asked if the resolution should be pulled off the agenda and wait until further notice. "We have a lot of people here who feel very strongly about this. People think or have thought that the council wasn't listening in the past. Can we step back and look at this more?"
Mayor Jerry Fichter asked property owners if they would like to meet with council during a study session in a more informal discussion, to try to work the situation out possibly to everyone's satisfaction.
Councilman Boeger asked if City Attorney Brant Bordsen could look in to time allowed for cut-off of utilities.
Councilman Owen Stiles asked the property owners as a whole, if they could help the Council work on an ordinance that would work for all concerned. "I agree with Dave. Your input will really help us."
A study session will be held Tuesday, January 20, 2009 at City Hall, at 6 p.m. for more discussion on this topic.
The regular City Council meeting will follow at 7 p.m.
Although City Hall will be open on Monday, January 19, 2009, Martin Luther King Day is a legal holiday, which means the meeting will be held on the following day.
