Title
Recommendation to Accept Report on Delinquent Business License Accounts and Delinquent Integrated Waste Management Accounts (Finance 2450)
B
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Accept Report on Delinquent Business License Accounts and Delinquent Integrated Waste Management Accounts
BACKGROUND
City of Alameda Ordinance No. 2655 added Municipal Code Section 5-7.2 entitled “License a Debt” and enacted several amendments and additions to the business license provisions of the Alameda Municipal Code. Specifically, the ordinance allows for the collection of delinquent business license fees and charges via the property tax bill. The owners must be given fair and adequate notice regarding the assessment and an opportunity for a hearing.
In accordance with Chapter XXI, Solid Waste and Recycling, Section 21-20.6 of the Alameda Municipal Code (AMC), and Franchise Agreement, Alameda County Industries (ACI), the City’s provider of waste and recycling collection services, may assign delinquent Integrated Waste Management (IWM) accounts to the City for collection. Prior to assigning their rights to the City, ACI is obligated to make at least four attempts to collect the delinquent accounts.
DISCUSSION
Business License Taxes
The Finance Department continually pursues collection of from those who are carrying or engaging in any business in the City of Alameda. Currently, there are 202 owners and managers of commercial and multi-family residential rental properties who are delinquent in obtaining their business licenses. There also are approximately 784 non-rental business proprietors who are currently delinquent.
While the Business License Ordinance states that a renewal notice or bill is not required, the Finance Department sends out three renewal notices to property owners starting in May (in this case May 2016) by mail using the last mailing address shown in the County tax records for business license taxes due in July 2016. As such, they are given ample time (9 to 12 months) to respond prior to the City sending final (delinquent) collection notices. This year, the first delinquent notice was mailed on March 16, 2017 for business license taxes that were due in July 2016. The Finance Department will mail a second notice in April 2017 and a third and final notice in May 2017. Payments for the delinquent business license tax will be accepted through June 29. Those parcels for which licenses and fees are paid will not be placed on the tax roll. However, all unpaid fees at June 29 will be recorded on the County tax roll in July 2017.
The Finance Department has general information flyers in addition to copies of the Business License Ordinance that are mailed to anyone who requests information regarding business licensing.
Integrated Waste Management Fees
As part of the Franchise Agreement with ACI, the City is required to pay ACI for all delinquent accounts. In accordance with the AMC, the City may send a letter to each account’s property owner requesting payment, and if not promptly received, the City can collect delinquent accounts through their property tax bills at a noticed public hearing.
Property owners are notified three times by mail; twice following the City’s receipt of the list from ACI, and once after the City Council sets the hearing date to consider collecting the delinquent amount plus City fees through the tax roll. Included with the notices is contact information written in the six most commonly spoken languages within the City. After June 29, 2017, all unpaid fees will be recorded on the County tax roll in July 2017. Those property owners for which delinquent accounts are paid will not be placed on the tax roll. There are currently approximately 57 accounts which remain delinquent.
FINANCIAL IMPACT
This is an informational item only. There is no financial impact from acceptance of the delinquent business licenses and unpaid IWM fees listings due for collection outreach. In May 2017, staff will come back to Council to set a public hearing to be held in June 2017.
Business license fees are due and payable on July 1 of each year and are deemed delinquent if not paid by July 31 of each year. A ten percent penalty is imposed for every month the fee is delinquent up to a maximum of 60% of the annual fee.
The City receives a 10% franchise fee from ACI, which is revenue for the General Fund. Unpaid IWM fees, therefore, result in a loss in General Fund revenues.
RECOMMENDATION
Accept report on delinquent Business License accounts and delinquent Integrated Waste Management accounts
Respectfully submitted,
Elena Adair, Finance Director