TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY STARKEY, FINANCE DIRECTOR
DATE: JUNE 25, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
ADOPTION OF A RESOLUTION APPROVING THE REVISED DELINQUENT SANITATION ACCOUNT REPORT OF JUNE 25, 2024, ORDERING THE PLACEMENT OF LIENS UPON REAL PROPERTY FOR THE UNPAID SANITATION AND SEWER MAINTENANCE FEES REPORTED DELINQUENT
Body
SUMMARY
Claremont Municipal Code Section 8.08.180 allows for the collection of delinquent sanitation utility service fees by placing a lien or special assessment against the respective parcels of land for which the service were provided and for which fees remain unpaid. To place a lien on real property for the collection of delinquent sanitation and sewer fees, the City Council must adopt a resolution (Attachment).
RECOMMENDATION
Recommended Action
Staff recommends the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, APPROVING THE REVISED DELINQUENT SANITATION ACCOUNT REPORT OF JUNE 25, 2024, ORDERING THE PLACEMENT OF LIENS UPON REAL PROPERTY FOR THE UNPAID SANITATION AND SEWER MAINTENANCE FEES REPORTED DELINQUENT.
Body
ALTERNATIVES TO RECOMMENDATION
In addition to the staff recommendation, there are the following alternatives:
A. Request further information.
B. Take no action.
FINANCIAL REVIEW
The Sanitation and Sewer funds are self-supporting enterprise activities. A resolution authorizing the placement of a special assessment on property tax bills as a method of collection for delinquent, unpaid debts for services assures that households and businesses pay for the services being received.
As of the publication date of this report, staff has identified 248 accounts with delinquent amounts outstanding on their sanitation bills. The total amount outstanding for sanitation and sewer service is $187,282.
The costs to research this issue, prepare documentation, and complete this report are estimated to be $975. These costs are in staff time and are included in the operating budget of the Financial Services Department.
ANALYSIS
All residents and business operators receiving sanitation and sewer services provided by the City are billed for such services. Sanitation utility bills cover charges for sanitation services (refuse pick-up and street sweeping) and sewer maintenance. Bills are mailed quarterly to residential customers and monthly to commercial customers.
Notices were sent on April 25, 2024 and May 16, 2024 to those property owners with outstanding balances that had not been paid in more than 180 days. Despite the notices, 248 accounts remain delinquent (refer to the Exhibit attached to the Resolution). The number of delinquent accounts for the last four years is shown below:
* The amount placed on the property tax bill was less than the amount approved by the City Council because customers paid their bills after City Council action but prior to sending delinquent accounts to the County.
California Health and Safety Code Sections 5470-5474.10 and Claremont Municipal Code Section 8.08.180 allow for the collection of delinquent sanitation and sewer fees through the placement of delinquent amounts on the property tax bills of affected property owners. Upon adoption of the resolution authorizing the placement of delinquent sanitation and sewer fees on the property tax rolls, staff will send to the Los Angeles County Auditor-Controller a listing of properties and the applicable amounts of the delinquent fees to be added to the property tax bills. Collection of the delinquent amounts will take place during the next fiscal year and remitted to the City as property tax bills are paid.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it relates to the following: Council Priorities, the General Plan, and the 2022-24 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
Notices were mailed on April 25, 2024, and May 16, 2024, to those property owners whose accounts were delinquent. The notices informed property owners that if their payments were not received by May 22, 2024, the Claremont Courier would publish a notice that includes the sanitation service addresses and delinquent balances. The notice also informed property owners that payments on delinquent accounts not received by June 20, 2024, would be subject to City Council action involving the placement of a property lien for delinquent charges and recording fees.
In addition, the May 16, 2024 notice informed those with delinquent accounts that a public hearing would be held June 25, 2024. At the hearing, property owners may present objections or protests. California Health and Safety Code Sections 5470-5474.10 require that such notices be published in a newspaper of general circulation that is printed and published within the City. The notice of public hearing was published in the Claremont Courier on June 7, June 14, and June 21, 2024.
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Jeremy Starkey Bibi Ameer
Finance Director Accounting Supervisor
Attachment:
Resolution