Title
Public Hearing to Consider Collection of Delinquent Integrated Waste Management Accounts Via Property Tax Bills. (Finance 2450)
B
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) annually collects delinquent waste management service charges through property tax bills. The agreement with Alameda County Industries (ACI) provides for the City to do the collection via the property attachment process. Businesses and residents receive a significant amount of notification of delinquent accounts from the City and ACI prior to collection via the property tax bill.
BACKGROUND
In accordance with Chapter XXI, Solid Waste and Recycling, Section 21-20.6 of the Alameda Municipal Code (AMC), 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
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 languages within the City. On June 30, 2019, all unpaid fees will be recorded on the County tax roll in July 2019.
To be consistent with City Council’s direction, property owners' payments will be accepted through June 30, 2019. Those property owners for which delinquent accounts are paid will not be placed on the tax roll.
ALTERNATIVES
Alternative 1 --- Consider collection of delinquent Integrated Waste Management accounts via property tax bills. This is consistent with past practice.
Alternative 2 ---The City Council may consider liening the properties only for the delinquent amounts without adding interest and penalties. This would require the outstanding interest and penalties to be collected by ACI.
FINANCIAL IMPACT
Under City Council direction, delinquent IWM fees may continue to be collected until the close of business on June 30, 2019, 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 16, 2019, there were 38 unpaid IWM accounts amounting to $22,609.32 (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.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
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 IWM fees), which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
CLIMATE IMPACTS
There are no climate impacts from levying delinquent integrated waste management charges on property tax bills.
RECOMMENDATION
Hold a public hearing to consider collection of delinquent Integrated Waste Management accounts via property tax bills.
CITY MANAGER RECOMMENDATION
The City Manager recommends approving collection of delinquent Integrated Waste Management accounts via property tax bills consistent with past practice.
Respectfully submitted,
Elena Adair, Finance Director
Exhibits:
1. 2019 Lien List
cc: Eric Levitt, City Manager