Title
Adoption of Resolution of Intention to Set June 15, 2021 for a Public Hearing to Consider Collection of Delinquent Integrated Waste Management Accounts Via Property Tax Bills. (Public Works 261)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) collects delinquent Integrated Waste Management (IWM) accounts on an annual basis through property tax bills. The agreement with Alameda County Industries (ACI) provides for the City to perform the collection via the property attachment process. Businesses and residents receive at least four notifications of delinquent accounts from the City and ACI prior to the 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 may assign delinquent 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.
If such attempts to collect are ultimately unsuccessful, pursuant to Government Code Sections 38790.1 & 25831, the City has the right to pursues delinquent IWM bills in the property tax attachment process, as is recommended under this agenda item.
DISCUSSION
As part of its Franchise Agreement with ACI, the City is obligated to pay ACI for all delinquent accounts. Staff has prepared a report of delinquent accounts, and that reported is attached to this report. In accordance with the AMC, the City may send a letter requesting payment to each account’s property owner, and if not promptly received, the City can collect delinquent accounts through their property tax bills, after conducting a noticed public hearing. This report seeks Council authorization to set that public Hearing for June 15, 2021. At this time, staff is still attempting to collect these delinquent accounts. Property owners are notified three times by mail; once following the City’s receipt of the list, once after the City Council sets the hearing date to consider collecting the delinquent amount, plus City fees, through the tax roll, and once again before the public hearing. Prior to these City notifications, the residents received four notifications from ACI regarding their delinquent account. Payments are accepted until 2:00 PM on the scheduled hearing date, and with City Council direction, property owners’ payments may be accepted until June 30, 2021.
If approved by the City Council at the June 15, 2021 hearing, all unpaid fees, as of June 30, 2021, will be recorded on the Alameda County tax roll on July 1, 2021.
ALTERNATIVES
• Consider collection of delinquent IWM accounts via property tax bills. This is consistent with past practice.
• Suspend the delinquency process and submit a one-time payment to ACI in the amount of the delinquent IWM bills due upon hearing of this item.
FINANCIAL IMPACT
The City receives a franchise fee from ACI equal to 10% of the fees collected by ACI, which is revenue to the General Fund. Therefore, unpaid IWM fees result in a loss in General Fund revenues. Pursuant to City Council direction, delinquent IWM fees may continue to be collected until the close of business day on June 30, 2021, consistent with the business license fee’s final day of acceptance.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The City’s IWM Program is consistent with the waste initiatives in the 2019 Climate Action and Resiliency Plan (CARP).
The City is authorized to place a lien on the property of a delinquent IWM customer pursuant to AMC Subsection 21-20.6(b) and California Government Code Sections 38790.1 and 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 charges), 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
Set June 15, 2021, for a public hearing to consider collection of delinquent integrated waste management accounts via property tax bills.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the recommendation to set a public hearing to consider collection of delinquent integrated waste management accounts via property tax bills.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Liz Acord, Public Works Coordinator
Financial Impact section reviewed,
Annie To, Finance Director
Exhibit:
1. 2021 Lien List
cc: Eric Levitt, City Manager