Title
Public Hearing to Consider Collection of Delinquent Integrated Waste Management Accounts Via the Property Tax Bills. (Finance 2450)
B
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Public Hearing to Consider Collection of Delinquent Integrated Waste Management Accounts Via the Property Tax Bills
BACKGROUND
City of Alameda Ordinance No. 2655 added Municipal Code Section 5-7.2, “License a Debt.” Specifically, the ordinance provides for the collection of delinquent business license fees and charges via the property tax bill. In accordance with Chapter XXI, Solid Waste and Recycling, Section 21-20.6 of the Alameda Municipal Code (AMC), Alameda County Services (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.
Staff is including delinquent Integrated Waste Management bills in the property tax attachment process. These delinquent bills will be processed in order to improve efficiency in the collection of the Integrated Waste billing.
DISCUSSION
Integrated Waste Management Fees
As part of the Franchise Agreement, the City is obligated 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, 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 language within the City. On June 30, 2018, all unpaid fees will be recorded on the County tax roll in July 2018.
To be consistent with City Council’s direction, property owners' payments will be accepted through June 30, 2018. Those properties owners for which delinquent accounts are paid will not be placed on the tax roll.
Business License Taxes
The Finance Department continually pursues collection of business license taxes from owners and managers of commercial and multi-family residential rental properties who have no current business license. Property owners are notified by mail using the last mailing address shown in the County tax records and are given ample time (9 to12 months) to respond prior to the City sending final collection notices. Payments are accepted through June 30.
For the first time in years, if not ever, all of the accounts on the previously reported delinquent list have paid their business license tax plus penalties to bring their account current.
FINANCIAL IMPACT
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. Under City Council direction, delinquent IWM fees may continue to be collected until the close of business on June 30, 2018, so as to be consistent with the business license tax final day of acceptance. This will be the final day of acceptance of unsettled IWM fees.
As of May 21, 2018, there were 24 unpaid IWM accounts amounting to $14,072.87 (Exhibit 1). Balances are inclusive of late fees and processing fees.
Staff will provide the City Council with an updated list prior to opening the public hearing to ensure that those who are current do not have a lien placed on their property tax bill.
As of May 21, 2018, all delinquent business license accounts that were previously reported were paid, due to the diligent efforts of the business license staff. There will be no assessment levied through the property tax bill for this purpose.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The collection of business license taxes via the property tax roll is authorized pursuant to AMC Section 5-7 et seq. The City is authorized to place a lien on the property of a delinquent Integrated Waste Management customer pursuant to AMC Subsection 21-20.6 (b), Government Code Sections 38790.1 and Government Code section 25831.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378 (b)(4) of the CEQA Guidelines, because it involves governmental fiscal activities (collection of delinquent business license fees), which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Hold a public hearing to consider collection of delinquent Integrated Waste Management accounts via the property tax bills.
Respectfully submitted,
Elena Adair, Finance Director
Exhibit:
1. 2018 Lien List