For City Council Meeting July 23, 2024
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
FROM: Tim Sullivan, Director of Public Works
Title
Request City Council to Conduct a Public Hearing for August 27, 2024, to Consider the Placement of Liens for Delinquent Refuse Collection Accounts for the 1st Quarter of the 2024 Calendar Year.
Body
BACKGROUND
Each property owner on the “Proposed Address List for Delinquent Refuse Liens” is delinquent with payment of the refuse collection bills for their property. Although billed at the last known address on file for services provided, outstanding charges remain unpaid. Rental properties are the responsibility of the property owner. Consequently, liens are filed against the property for the total amount of any unpaid past-due charges for services rendered. A list of the properties affected by the proposed liens is included as Attachment 1.
ANALYSIS/DISCUSSION
The City seeks to place a separate lien against each 67 residential and 13 commercial properties to secure monies owed. In the event that any of the properties are sold prior to collection or are sold prior to the placement of liens, the amounts owed may not be recovered. This action requires the City Council to schedule a Public Hearing to review and approve the placement of liens related to delinquent refuse accounts. Staff recommends that the Council set the Public Hearing for August 27, 2024.
Section 8.08.330 of the Rialto Municipal Code (RMC) authorizes the placement of liens against properties with refuse collection accounts that are more than 90 days delinquent. Lien placement requests brought before the City Council are for delinquencies that have accrued during the first quarter (January, February, and March) of 2024. After scheduling the Public Hearing, the City will mail official notices to the owners of the properties shown on the attached list of addresses not less than 21 days prior to the date of the public hearing, giving customers ample notice time.
ENVIRONMENTAL IMPACT
The placement of liens is exempt from the California Environmental Quality Act (CEQA) review in accordance with Section 15268, Ministerial Projects. Section 15268 allows for public agencies to make non-discretionary determinations as part of implementing its regulations.
GENERAL PLAN CONSISTENCY
Approval of this action complies with the City of Rialto General Plan Goals and Policies:
Measure 8.43: Provide Solid Waste and Recycling Programs, which states: continue to meet the community’s needs for solid waste disposal and recycling, and provide that operations are done in an efficient and cost-effective manner.
LEGAL REVIEW
The City Attorney’s Office has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
By not placing liens against the listed properties, the City and Burrtec Waste Industries may not recover the amounts owed for trash collecting services provided previously to these properties totaling $12,996.72. The City receives an administrative fee of $5.00 per parcel when the lien is collected, which is allocated to Waste Management - Account No. 22127040-47910. The estimated total revenue to the City for this action is $400. San Bernardino County charges $24 per parcel, which is allocated to Delinquent Refuse Liens Account No. 28300000-23500. The total County charge for the placement of liens is $1,920.
During the 2022/23 Tax Assessment, the total amount submitted for delinquent accounts was $8,223.57. The total amount recovered is $8,118.29, or 98.72%; one account remains unpaid, amounting to $105.28. This unrecovered amount ranges from 1% to 6% annually and is a result of property owners failing to pay their annual property tax bill.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget related to the placement of liens for unpaid trash disposal.
Licensing
A Business License application and payment of a Business License tax are not required for this action.
RECOMMENDATION
Staff recommends that the City Council Set a Public Hearing for August 27, 2024, to Consider the Placement of Liens for Delinquent Refuse Collection Accounts for the 1st Quarter of the 2024 Calendar Year.