Title
Introduction of Ordinance Amending Alameda Municipal Code by Repealing Chapter XXII (Streets and Sidewalks), Article I (Streets), Section 22-3 (Repairs) in Its Entirety and Repealing and Replacing Chapter XXII (Streets and Sidewalks), Article II (Sidewalks), Sections 22-18 (Repair of Sidewalks and Other Works) and 22-20 (Specifications) to Amend the Sidewalk Repair Procedures and Make Other Technical Amendments;
Introduction of Ordinance Amending Alameda Municipal Code 1-5.3 (Civil Action Enforcement) of Chapter 1 (General) to Improve the City’s Collections Process;
Public Hearing to Consider Adoption of Resolution Amending Master Fee Resolution No. 12191 to Add a Fee for a Formal Hearing with a Hearing Officer Regarding Sidewalk Repair Costs Owed to the City; and
Recommendation to Adopt a Collections Policy. (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
From: Adam Politzer, Interim City Manager
EXECUTIVE SUMMARY
To improve fairness, transparency, and revenue recovery, staff proposes adopting a formal Collections Policy aligned with best practices and other jurisdictions. The policy sets a clear process to recover up to 75% of delinquent debt, or approximately $550,000 annually. Staff recommends an amendment to Alameda Municipal Code (AMC) section 1-5.3 to officially authorize Small Claims legal actions, ensuring the City of Alameda (City) has the authority to implement and enforce the new Collections Policy immediately. Staff also recommends amendments to the AMC Sections 22-3, 22-18, and 22-20 to further define a clear and transparent process for placing a special assessment on a lot for delinquent sidewalk repairs and make other technical amendments to these sidewalk repair sections. For individuals experiencing financial hardship, the sidewalk repair program includes a financial assistance component and the proposed collections process includes payment plan options.
BACKGROUND
In October 2025, staff presented the City Council with an enhanced collections process, including proposed procedures and an operational framework, as part of the fiscal sustainability workshop. During these discussions, the City Council reviewed the listing of unpaid receivables as of June 30, 2025, across various revenue streams. Of the estimated $1.4 million in unpaid receivables, approximately $660,000 is linked to the General Fund. City Council agreed with the need for a more consistent, equitable and transparent approach to collections. While staff consistently works to recover these debts, the absence of a formal Centralized Collection Policy limits the City’s ability to recover revenues before too much time has passed and they become uncollectible. Consistent with City Council direction, staff is returning with a proposed Collections Policy that establishes a structured, City-wide process to ensure consistency across departments, promote fairness among debtors, and strengthen the City’s ability to recover revenues that can be reinvested into essential public services.
DISCUSSION
The proposed Collections Policy establishes uniform procedures across all departments and aligns with the Government Finance Officers Association’s (GFOA) Timely Billing and Collections best practices and the AMC provisions governing delinquent revenue collection. Staff reviewed collection policies of comparable cities, including Berkeley, Concord, Dublin, Emeryville, Hayward and San Leandro. All of these cities have an internal collections process that includes the use of property tax liens and the State tax intercept program.
The primary objectives of the proposed Collections Policy are to:
• Establish a Centralized Collections Unit (CCU) to oversee collection activities and clearly define measures for both internal and external enforcement.
• Promote the timely recovery of City revenues, ensuring consistent and equitable treatment of all debtors.
• Support sound financial management and accountability through standardized procedures, and
• Align with existing AMC provisions and established mechanisms for recovering delinquent accounts.
Together, these objectives create a unified framework that strengthens oversight, increases efficiency, and boosts the City’s ability to recover outstanding revenues fairly and transparently.
The City’s collections process applies to a range of revenue types generated through City services and regulatory activities. These include, but are not limited to, recreation and program fees, parking citations and administrative penalties, business license taxes, fire inspection fees, permit and plan-check fees, rental program fees, code enforcement citations and other cost-recovery charges. Ensuring timely collection of these revenues is critical to maintaining fiscal sustainability and supporting essential City services.
The proposed collections process establishes a standardized, City-wide framework that prioritizes early payment and consistent treatment of all accounts. Each invoice includes a 30-day payment period, followed by one past-due notice and an additional 30-day window if payment is not received. These initial steps are effective in recovering a significant portion of outstanding balances.
The City recognizes that some residents and businesses may experience financial hardship that limits their ability to pay outstanding balances in full. As part of the proposed collections policy, individuals who are unable to make full payment may request payment plans. This option is intended to provide flexibility, ensure fair treatment, and allow individuals to resolve outstanding obligations in a reasonable and manageable way, while still maintaining accountability for the services rendered by the City.
Accounts that remain delinquent are referred to the City’s CCU, where a $50 Collection Fee is applied, and two additional notices are issued, each providing time to resolve the balance. Enforcement actions-such as small claims court, State intercept programs, or property liens-are considered only after all administrative collection steps have been exhausted. Property liens may only be utilized for Rent Program fees, Code Enforcement Citations and Sidewalk Repair costs. The intent of the policy is to promote fairness, consistency, and timely recovery while minimizing the need for legal action.
Historically, only a small percentage of delinquent accounts progress to small claims court or lien placement. The vast majority of outstanding receivables are resolved through early collection efforts, payment plans, or administrative follow-up. The goal of the proposed collections framework is to recover revenues as early as possible, before accounts become legally uncollectible, while balancing equity, fairness, and consistency. Given the steep decline of successful collections as debts age, it is essential to implement a clear timeline with defined milestones and escalation points. This will dramatically reduce the risk of lost revenue.
To ensure the City’s legal authority aligns with the new policy, staff is proposing an ordinance amendment to AMC section 1-5.3 that would allow the City to pursue legal action in Small Claims Court to recover delinquent revenues, fees, fines, and service charges. This amendment provides clear enforcement authority for accounts when all other remedies have been exhausted and supports the City’s ability to pursue property tax liens and other authorized collection methods.
Sidewalk Repair Program
Staff is also proposing amendments to AMC Sections 22-3, 22-18, and 22-20 to further define a clear and transparent process for placing a special assessment on a lot, in accordance with State law, for delinquent sidewalk repair costs and to make other technical amendments to these sidewalk repair sections.
Although adjacent property owners bear primary responsibility for sidewalk condition and repair, the City has a long-standing practice of repairing sidewalk damaged by street trees. The City’s sidewalk program consists of three components:
1. Temporary repairs (concrete cutting and/or asphalt patches) made to sidewalks;
2. Removal and replacement of sidewalk damaged by street trees; and
3. Notification to property owners informing them of their responsibility to repair sidewalk damage not caused by street trees.
Temporary repairs allow the City to address tripping hazards quickly and at relatively low cost. While these repairs do not resolve the underlying cause of the damage (e.g., tree-root lifting or differential settlement), they eliminate immediate hazards and accessibility barriers and can extend the life of the sidewalk before full replacement is necessary. Temporary repairs offer both financial and environmental benefits by reducing the need for premature concrete replacement. Last year, the City expanded the use of temporary repairs to include all eligible sidewalk conditions, not only those damaged by street trees; thereby saving property owners time and money and extending the useful life of sidewalks.
Historically, compliance has been low among property owners required to repair sidewalk damage not caused by street trees and not eligible for a temporary repair. As reported to City Council, staff launched a pilot sidewalk program in February 2025 that offers property owners an alternative: when they receive a notice to repair, they may elect to have the City perform the work and then be invoiced. This optional service simplifies the repair process and can reduce costs compared to contracting with a private vendor. Participating property owners benefit from economy-of-scale pricing, do not need to select or manage a contractor, and are exempt from obtaining a permit and the associate fees. Owners may still choose to hire their own contractor, in which case standard permit requirements apply.
The pilot program also includes a financial-assistance component for property owners who can demonstrate financial hardship. An application is provided upon request with the notice to repair, and assistance may cover the full cost of the repair or a portion thereof, depending on demonstrated income.
To reduce City liability and prevent public injury, the program includes an enforcement mechanism. If a property owner does not respond to multiple repair notifications, the City proceeds with the repair to eliminate the hazard and subsequently invoices the property owner. To date, many owners have paid upon receiving the invoice, even if they did not formally opt into the program. In other cases, owners remain non-responsive and invoices remain unpaid.
The proposed ordinance codifies the City’s authority to establish and administer a program that allows the City to perform required sidewalk repairs under a voluntary agreement and be reimbursed by the property owner. The proposed ordinance also codifies the City’s ability to offer financial assistance at multiple points in the process including at the time of the initial notification to repair and again if the City completes the work due to non-responsiveness and issues an invoice. This financial assistance is offered before referring a delinquent invoice to the CCU. In addition, the ordinance also formalizes the Finance Department’s authority to offer payment plans.
The proposed ordinance further authorizes the City to initiate a collections process for the cost of the sidewalk repairs. For sidewalk accounts, the collections process includes two additional notices to the property owner and $50 collections fee. Finance recently moved 15 delinquent sidewalk accounts through this collections process and 3 properties paid in full and 4 others entered an agreement for a payment plan.
For properties that remain delinquent after the collections process, the City may issue a notice of special assessment against the applicable property for the cost of the repairs. The notice provides the owner with an opportunity to meet and confer with City staff regarding the amount owed for sidewalk repairs. Following this meeting, staff will issue a determination letter stating the final amount due and describing the process for requesting a formal hearing before a City hearing officer if the owner disputes the determination. To proceed with a formal hearing, the owner must post an advance deposit equal to the amount owed.
The proposed ordinance states the owner is responsible for paying a portion of the hearing cost, as set forth in the Master Fee Schedule. The accompanying resolution amending the Master Fee Schedule sets the hearing fee at $1,500, which is estimated to be half of the actual cost of the hearing. The City’s sidewalk program will fund the remaining cost of the hearing. The hearing amount can be adjusted annually through future updates to the Master Fee Schedule. Additionally, financial assistance may be requested and granted for the property owner’s portion of the hearing fees.
Following the hearing, the hearing officer may adjust the amount owed based on the evidence presented. Only properties with delinquent accounts whose owners decline both the meet-and-confer and hearing opportunities, or who complete those processes but fail to pay, will be scheduled for a public hearing before the City Council to consider placement of a special assessment lien, pursuant to Streets and Highways Code Sections 5600-5630 and the proposed ordinance.
Staff will return to City Council after at least one year to provide sidewalk repair program metrics, lessons learned, and recommendations regarding long-term continuation. Early data show a significant increase in compliance, with over 70% of properties choosing the voluntary City-performed repair option. Data to date shows 6% of accounts - 11 properties of 176 noticed - remain delinquent. If the proposed ordinance is adopted, these accounts will be offered meet-and-confer and formal hearing opportunities before any public hearing to place a special assessment is brought to Council. Staff’s goal is to work collaboratively with property owners and provide multiple opportunities to pay or contest charges, thereby minimizing the number of properties requiring special assessment, if any.
FINANCIAL IMPACT
Implementing the new collections process and the ordinance amendments is expected to boost revenue recovery and reduce uncollectible debt. Based on historical data, annual revenue recovery could increase by $500,000 to $550,000, strengthening the General Fund and providing additional resources for core City services.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Amending Article 1-5 (Penalty Provisions; Enforcement) of Chapter 1 (General) to authorize the City to pursue legal action in Small Claims Court for the recovery of delinquent revenues, fees, and fines.
Repealing and/or repealing and replacing Alameda Municipal Codes Sections 22-3, 22-18, and 22-20 to further define a clear and transparent process for placing a special assessment on a lot, in accordance with State law, for delinquent sidewalk repair costs and to make other technical amendments to these sidewalk repair sections. The Collections Policy and Ordinance support the City Strategic Plan Priority to Practice Fiscally Responsible, Equitable and Inclusive Governance.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
Safe, walkable sidewalks are essential to meeting the vehicle miles traveled reduction goals in the City’s Climate Action and Resiliency Plan. Although cement manufacturing contributes to greenhouse gas emissions, the City’s contractor is required to recycle a minimum of 95% of the concrete removed.
RECOMMENDATION
Introduce an Ordinance amending Alameda Municipal Code by repealing Chapter XXII (Streets and Sidewalks), Article I (Streets), Section 22-3 (Repairs) in its entirety and repealing and replacing Chapter XXII (Streets and Sidewalks), Article II (Sidewalks), Sections 22-18 (Repair of Sidewalk and Other Works) and 22-20 (Specifications) to amend the sidewalk repair procedures and make other technical amendments; Introduce an ordinance amending Alameda Municipal Code 1-5.3 (Civil Action Enforcement) of Chapter 1 (General) to improve collections process; Hold a hearing to consider a Resolution amending Master Fee Resolution No. 12191 to add a fee for a formal hearing with a Hearing Officer regarding sidewalk repair costs owed to the City; and adopt a Collections Policy.
Respectfully submitted,
Ross McCarthy, Finance Director
By,
Carlos Figueroa, Senior Financial Analyst
Exhibit:
1. City of Alameda Collections Policy