Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: MATTHEW BAUMGARDNER, P.E., DIRECTOR OF PUBLIC WORKS/
CITY ENGINEER
DATE: APRIL 22, 2025
SUBJECT: INTRODUCTION OF AN ORDINANCE TO ESTABLISH PROCEDURES
FOR THE PLACEMENT OF DELINQUENT SOLID WASTE CHARGES
ON THE LOS ANGELES COUNTY PROPERTY TAX ROLL
EXECUTIVE SUMMARY
The City Council will consider an ordinance to establish procedures for the placement of delinquent solid waste charges on the Los Angeles County tax roll. An annual report will be prepared by the City’s solid waste collection franchisee, Athens Services, on all delinquent accounts over 90 days in arrears. Following adoption of the ordinance, staff will request the annual report, direct Athens to provide notice to delinquent account holders, and schedule a public hearing for the City Council to consider confirming the annual report to be submitted to the County of Los Angeles Tax Assessor.
RECOMMENDATION
That the City Council:
1. Introduce an ordinance to establish procedures for the placement of delinquent solid waste charges on the Los Angeles County tax roll; and
2. Authorize the preparation of the annual report of delinquent accounts to be delivered by Athens Services to the City by beginning of June 2025.
BACKGROUND
In order to protect the public health, safety, and well-being of the community, and to prevent the spread of vectors, Section 5208 of the Downey Municipal Code requires the owner, occupant, or other person responsible for the day-to-day operation of every place or premises in the City of Downey to make arrangements with the solid waste collector holding a City-issued franchise agreement for the collection of solid waste. Athens Services (Athens) currently holds this agreement in the City of Downey until September 2033. This agreement allows for provisions by which Athens can discontinue service for the non-payment of delinquent accounts that have gone beyond 90 days in arrears. Due to concerns that shutting off service could create public health concerns, staff directed Athens to not discontinue collection for any of the commercial or multi-family residential accounts. Staff has allowed Athens to discontinue service on single-family residential accounts, as these matters are resolved quickly and service restored promptly. However,
APPROVED BYCITY MANAGER
INTRODUCTION OF AN ORDINANCE TO ESTABLISH PROCEDURES FOR THE PLACEMENT OF
DELINQUENT SOLID WASTE CHARGES ON THE LOS ANGELES COUNTY PROPERTY TAX ROLLS APRIL 22, 2025
PAGE 2
the discontinuance of commercial and multi-family residential accounts has the potential to adversely affect tenants that do not control payment of the solid waste bills. As a result, an alternative process for the collection of delinquent accounts is proposed by which accounts that remain in arrears over 90 days can continue to be serviced, but any delinquent amounts would be added as a special assessment for collection on the annual property tax bill.
ANALYSIS
The City proposes the following process each year for adding delinquent accounts to the property tax rolls:
• Prior to June of each year, an account holder for a single family or multifamily premises or any nonresidential premises who has not remitted required payment for solid waste collection, recycling and/or disposal service within ninety (90) calendar days after the date of billing shall be notified by Athens on forms that contain a statement that the delinquent account balance may be subject to placement on the County property tax roll and other applicable penalties. Athens shall inform the City of the delinquency in an annual report.
The contractor shall deliver a report of all delinquencies not later than June of each year with a request that the City place the delinquencies on the property tax roll..
• Following this step, Athens will inform the City of the delinquency in an annual report. The contractor shall deliver a report of all delinquencies not later than June of each year with a request that the City place the delinquencies on the property tax roll.
• The City shall fix a time, date, and place for a public hearing to consider the annual report of delinquencies.
• Athens shall mail notice of the hearing to the property owner of every premises listed on the annual report not less than ten (10) calendar days prior to the date of the public hearing.
• At the public hearing, the City Council shall hear any objections or protests of property owners liable to be assessed for delinquent fees or charges. The City Council may make revisions or corrections to the annual report as it deems just, after which, by Council resolution, the annual report may be confirmed.
• The delinquent fees and charges set forth in the confirmed annual report shall constitute special assessments against the premises listed in the annual report and are a lien on the premises for the amount of the delinquent fees and charges.
INTRODUCTION OF AN ORDINANCE TO ESTABLISH PROCEDURES FOR THE PLACEMENT OF
DELINQUENT SOLID WASTE CHARGES ON THE LOS ANGELES COUNTY PROPERTY TAX ROLLS APRIL 22, 2025
PAGE 3
• A certified copy of the confirmed annual report shall be filed with the Los Angeles County Auditor for the amounts of the respective assessments against the respective premises as they appear on the current assessment roll. The lien created attaches upon recordation of a certified copy of the resolution of confirmation in the office of the Los Angeles County Registrar-Recorder/County Clerk. The assessment may be collected at the same time and in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for those taxes.
• The City shall remit to Athens any amounts collected pursuant to this process within thirty (30) calendar days of receipt from the Los Angeles County Assessor. The total collected by the County for each account will include the delinquent amount, general costs for Athens collection efforts during the year, as well as a 25-cent fee charged by the County for each parcel in the report.
Athens shall notify the City in the event any delinquency on the confirmed annual report for which a lien has been created is paid or otherwise resolved.
Next Steps
Following adoption of the ordinance, staff will request from Athens the annual report of delinquent accounts to be delivered by the beginning of June. Currently there are 687 accounts that are more than 90 days in arrears for a total of $212,464. Athens will be directed to send notices to all delinquent account holders of a public hearing to be held at the June 24, 2025 City Council meeting. The City Council will hear any protests from property owners, make any corrections to the annual report, and confirm the annual report by resolution.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Efficiency & Adaptability
Quality of Life, Safety & Infrastructure
FISCAL IMPACT
There is no fiscal impact to the City, as these delinquent fees are owed to Athens Services for solid waste collection services provided to their customers. An administration fee of 25 cents is added to the delinquent amount of each account to cover the costs charged to the City by the County assessor’s office for their collection charges.
ATTACHMENTS
Attachment A: Ordinance to establish procedures for the placement of delinquent solid waste charges on the Los Angeles County Property Tax Roll
ORDINANCE NO. 2025-____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AMENDING DOWNEY MUNICIPAL CODE SECTION 5230 TO
ESTABLISH PROCEDURES FOR THE PLACEMENT OF DELINQUENT
SOLID WASTE CHARGES ON THE LOS ANGELES COUNTY
PROPERTY TAX ROLL
WHEREAS, effective April 1, 2016, the City of Downey entered into an Agreement for Integrated Waste Management Services with CalMet Services, Inc., providing for exclusive residential and commercial solid waste and recycling services over a ten-year period (“Agreement”); and
WHEREAS, on November 18, 2021, all of the assets of CalMet along with its affiliate business, Paramount Resources Recycling, were acquired by Arakelian Enterprises, Inc. dba Athens Services (“Athens”); and
WHEREAS, on March 29, 2022, with consent by the City, the Agreement was assigned to Athens and amended by the parties in 2023 to include, among other provisions, rate adjustments and an extension of the term through September 30, 2033; and
WHEREAS, Athens has continued to provide solid waste collection and recycling services to the community; and
WHEREAS, Section 5230 of the Downey Municipal Code provides in pertinent part that the City may include the fees and charges for solid waste and recycling on the water bill, the property tax roll for the subject premises, or by separate bill from the City’s solid waste collector; and
WHEREAS, California Government Code Sections 25831 and 38790.1 establish the procedures by which the City may place delinquent solid waste charges on the County property tax roll each year; and
WHEREAS, by amending 5230 of the Downey Municipal Code, the City desires to codify these procedures for delinquent solid waste charges for both residential and nonresidential premises being served by Athens or a subsequent solid waste contractor.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council finds that all of the foregoing recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.
SECTION 2. Section 5230 (Liability for Fees) of the Downey Municipal Code is amended to read as follows:
Ordinance No. 25-___
§ 5230. LIABILITY FOR FEES.
(a) Each person required by this chapter to arrange for solid waste collection shall be liable for the fees and charges for such collection.
(b) To protect public health, safety and well-being and to control the spread of vectors, the owner, occupant, or other person responsible for day-to-day operation of every premises in the City shall make arrangements for collection, recycling and disposal of solid wastes generated or accumulated on those premises in accordance with the requirements of this chapter. The City may include the fees and charges (plus any interest or penalties) for solid waste and recycling on the water bill, the property tax roll for the premises, or by separate bill from the City or a Solid Waste Collector. The fees and charges (plus any interest or penalties) on the water bill, the property tax roll for the premises, or separate bill shall be due and payable on the date stated on the water bill, the property tax roll for the premises, or separate bill. The owner and occupant of each premises in the City each shall be jointly and severally liable for the payment of the fees and charges (plus any interest or penalties) for solid waste service availability, solid waste collection and disposal and recycling.
(c) If solid waste service fees and charges (and any applicable interest or penalties) are not paid within 90 days of the date payment was due, solid waste service may be discontinued. Liability for service access fees continues, whether or not collection services have been discontinued.
(d) Upon written notice from the owner, occupant, or other person responsible for day-to-day operation of a premises in the City to discontinue solid waste collection services, the collection of fees shall be discontinued. However, solid waste collection services cannot be discontinued as long as said property is receiving water services from either the City of Downey Municipal Water Department or any other Water Agency, unless the Finance Director determines otherwise
(e) Delinquencies—Residential and Nonresidential Premises. Prior to June of each year, an account holder for a single family or multifamily premises or any nonresidential premises who has not remitted required payment for solid waste collection, recycling and/or disposal service within ninety (90) calendar days after the date of billing shall be notified by the City or the City’s contractor servicing the premises on forms that contain a statement that the delinquent account balance may be subject to placement on the County property tax roll and other applicable penalties. If a contractor of the City is providing the statement, it shall inform the City of the delinquency in an annual report.
The contractor shall deliver a report of all delinquencies not later than June of each year with a request that the City place the delinquencies on the property tax roll.
Pursuant to Sections 25831 and 38790.1 of the California Government Code, the City may collect delinquent fees or charges for solid waste collection, recycling and/or disposal services on the property tax roll for the premises. If the City decides to do so, it shall adhere to the following procedures:
Ordinance No. 25-___
(1) The City shall fix a time, date, and place for a public hearing to consider the annual report of delinquencies. The City, or its contractor, shall mail notice of the hearing to the property owner of every premises listed on the annual report not less than ten (10) calendar days prior to the date of the public hearing.
At the public hearing, the City Council shall hear any objections or protests of property owners liable to be assessed for delinquent fees or charges. The City Council may make revisions or corrections to the annual report as it deems just, after which, by Council resolution, the annual report may be confirmed.
(2) The delinquent fees and charges set forth in the confirmed annual report shall constitute special assessments against the premises listed in the annual report and are a lien on the premises for the amount of the delinquent fees and charges. A certified copy of the confirmed annual report shall be filed with the Los Angeles County Auditor for the amounts of the respective assessments against the respective premises as they appear on the current assessment roll.
The lien created attaches upon recordation of a certified copy of the resolution of confirmation in the office of the Los Angeles County Registrar-Recorder/County Clerk. The assessment may be collected at the same time and in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for those taxes.
(3) If the City is using a contractor to provide solid waste collection, recycling and/or disposal services, the City shall remit to its contractor any amounts collected pursuant to this process within thirty (30) calendar days of receipt from the Los Angeles County Assessor. The contractor shall notify the City in the event any delinquency on the confirmed annual report for which a lien has been created is paid or otherwise resolved.
SECTION 3. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment and it is not a "project", as defined in Section 15378 of the CEQA Guidelines.
SECTION 4. If any section, subsection, paragraph, sentence, clause or phrase of this Ordinance or any part thereof is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 5. This Ordinance shall become effective thirty (30) days from the date of its adoption.
Ordinance No. 25-___
SECTION 6. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law.
APPROVED AND ADOPTED this 22nd day of April, 2025.
_________________________
HECTOR SOSA
Mayor
ATTEST:
______________________________
MARIA ALICIA DUARTE, CMC
City Clerk
APPROVED AS TO FORM:
_______________________________
JOHN M. FUNK
City Attorney
I HEREBY CERTIFY that the foregoing Ordinance was adopted by the City Council of the City of Downey at a Regular meeting held on the ____ da y of _____, 2025, by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
_____________________________
MARIA ALICIA DUARTE, CMC
City Clerk