Collections Policy & the Sidewalk
Repair Program
City Council Meeting
January 6, 2026
Why a
Collections
Policy?
• Increase in collections – potentially $550,000
annually as discussed in October 2025 Fiscal
Sustainability workshop
• Improved transparency across departmental
collections activities
• Fairness through City-wide consistent
treatment for all delinquent collections
• Best practice and aligns with other Bay Area
city collection procedures
• Options for payment plans and waivers for
residents facing financial hardship
Billing: Accounts Payable & Collections
Current Accounts Payable Process
1-30 Days
Invoice Issued
1st Attempt
31-60 Days
Past Due Notice Mailed
2nd Attempt
91+ Days
Account is
referred to
Finance Dept
$50 Fee
92-135 Days
1st Collections
Notice mailed
3rd Attempt
136-180 Days
Final
Collections
Notice mailed
4th Attempt
181+ Days
The City is
within right
to take Legal
Action
Proposed this Amendment
Actions Available with a
Collections Policy
Small Claims
Court
Hearing Date
Judgement is
awarded
Court costs
FTB
Intercept
State Tax
intercept
Property
Liens
Lien Hearings
County Tax
rolls
*Hardship policies, payment plans, and appeal processes, ensure residents and businesses have fair opportunities to resolve outstanding balances throughout the process.
Enforcement Process
Invoice Issued 30 Days to Pay
Past Due Notice Sent Additional 60 Days
to pay
First CCU Notice
Includes $50 Fee 30 Days to pay
Final CCU Notice Additional 30 Days to
pay with Final Due Date
Most Accounts
Resolved By This Time
Payment in Full or
Payment Plan Started
Legal Action –
Last Resort
Options: Small Claims,
State Intercept, or Lien
Potential Revenue from Collections
As of June 30, 2025, the City had more than $1.4 million in outstanding unpaid fees across multiple departments.
$600,000 of these debts are owed to the General Fund
As these bills age, they become harder to collect.
Reduced Collections Recovery with Age
DATA SOURCE: CCLA
Implementation of
Collections Policy
Comparable Cities - Collections Procedures
City
Internal
Collections
Process
Third Party
Collection
Agency
Types of
Delinquent
Revenue
Use of
Property
Tax Liens
State Tax
Intercept
Program
Berkeley
Revenue
Collection
Division
None
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Concord Finance
Department
• HdL
Companies
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Dublin Finance
Department
• HdL
Companies
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Emeryville Finance
Department
• HdL
Companies
• MuniService
s/ Avenue
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Hayward Finance
Department
RFP issued in
2024
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
San
Leandro
Finance
Department
• HdL
Companies
• Taxes & Fees
• Citations
• Fines & Penalties
Yes Yes
Why
proactively
enforce
Revenue
Collections?
Revenue Opportunity
Helps recover funds that are rightfully owed to
the city that would otherwise be lost.
Standard Best Practice: All cities maintain a
delinquent revenue process, making it a
common and accepted government function.
GFOA best practice.
Improves Cash Flow and Budget Stability
Brings in revenue that can be used for current
or future needs, reducing budget gaps and
reliance on reserves.
Equitable and Flexible
Establishes and enforces collections,
discourages non-payment and promotes
fairness among taxpayers and fee payers.
Hardship policies, payment plans, and appeal
processes provide residents and businesses
fair opportunities to resolve outstanding
balances.
Sidewalk Repair Program
Tonight, City Council is considering an introduction of an ordinance amending sections of the Alameda Municipal Code related to sidewalk repair procedures.
The sidewalk system is a
vital component of the
City’s infrastructure and
plays an essential role in
City life.
As conduits for
pedestrian movement
and access, they enhance
connectivity and promote
walking.
As public spaces, they
activate streets socially
and economically.
Safe, accessible, and well-
maintained sidewalks are
fundamental to mobility
and healthy communities.
Sidewalk Repair
Program
Although adjacent property owners bear
primary responsibility for sidewalk condition
and repair by state law,the City has a long-
standing practice of repairing sidewalk
damaged by street trees. The sidewalk
program consists of three components:
• Temporary repairs (concrete cutting
and/or asphalt patches) made to
sidewalks
• Removal and replacement of sidewalk
damaged by street trees
• Notification to property owners informing
them of their responsibility to repair
sidewalk damage not caused by street
trees
Recent Program
Changes to Promote
More Sidewalk Repair
• Temporary repairs to reduce tripping
hazards at a low cost. These do not fix
underlying causes but extend sidewalk life
before full replacement.
• Temporary repair option for all eligible
conditions, not just those caused by a street
tree, saving owners time and money.
• February 2025, pilot program launched to
increase compliance for non-tree damaged
sidewalk replacement:
• Owners can elect City perform work
and be invoiced.
• Financial assistance available for
hardship cases (full or partial coverage).
• So far, over 70% participation rate in
having the City do the work.
Pilot Program
Enforcement
• To reduce City liability and prevent
public injury, if a property owner
does not respond to multiple repair
notifications, the City proceeds with
the repair to eliminate the hazard
and subsequently invoices the
property owner.
• To date, many owners have paid
upon receiving the invoice, even if
they did not formally opt into the
program. In other cases, owners
remain non-responsive and invoices
remain unpaid.
Proposed Ordinance
Codifies City’s authority to establish and administer a program, like the pilot program, that allows the City to perform required sidewalk repairs under a voluntary agreement and be reimbursed by the property owner.
Codifies City’s ability to offer financial
assistance at multiple points in the process
- at initial repair notification
- If City completes work due to non-
responsiveness and issues an invoice
Codifies City’s authority to offer payment plans.
Authorizes the City to initiate a collections
process on delinquent accounts related to
sidewalk repair costs.
- 15 delinquent accounts went through
collections process and 3 properties paid in
full and 4 others under a payment plan.
For properties still delinquent after collections, ordinance allows, but does not require, the City to issue a notice of special assessment for the repair cost. This authority is already granted in California state law; however, the ordinance details a clear process for doing so.
Future Pilot
Program
Update to
Council
• Early data from the pilot program is
promising:
• A significant increase in
compliance, with over 70% of
properties choosing the voluntary
City-performed repair option.
• 6% of accounts - 11 properties of
176 noticed - remain delinquent.
• Staff suggest implementing the pilot
program for another a year and
returning to Council with more robust
program metrics, lessons learned, and
recommendations regarding long-
term continuation.
Staff Recommendation Update
1) Staff recommendation in staff report: Adopt the Ordinances and Collections Policy as proposed
2) Revised staff recommendation: Adopt the Civil Action ordinance, as proposed, and direct staff to implement a one- year collections pilot program for delinquent sidewalk
accounts with no liens. Staff will return to City Council with program metrics after one-year. Direct staff to revisethe Sidewalk Ordinance and Collections Policy to remove
reference to liens. Adopt the Collections Policy with directed revisions.
• Staff will return in February with a first reading of the revised sidewalk ordinance reflecting these changes.