Item #10
Date: July 2, 2024
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Assessing the Cost of Delinquent Refuse Disposal Charges Against Certain Properties Recommendation:
Pass a Motion to 1) have Council conduct the noticed public hearing to receive comments on the proposed tax lien assessment and 2) adopt Resolution No. 2024-XX, to assess liens of delinquent refuse disposal charges against certain parcels to be placed on the Yuba County Secured Assessment Roll for Fiscal Year 2024-2025.
Rationale for Recommendation:
Each year the City works to assist our refuse collection service contractor, Recology Yuba-Sutter, with the collection of delinquent fees. The refuse disposal accounts of several property owners in the City of Marysville are delinquent. Those property owners were notified via refuse disposal bills and letters advising them of the delinquent status of their accounts. In addition to the aforementioned letters, property owners were notified of the specific actions that would occur if delinquent accounts were not brought current. Assessment of delinquent refuse disposal accounts allows Recology to pursue collection activity for unpaid balances.
Background:
Pursuant to Sections 5470 and 5473 of the California Health and Safety Code and Section 6.08.095 of the Marysville Municipal Code, the City is authorized to place a lien on private property for unpaid refuse collection and disposal bills, and to transfer those delinquent charges to the tax roll for collection. Letters were mailed to all the property owners to inform them of this proposed action. This is an annual process designed to collect delinquent payments that might otherwise become uncollectible. As required by state law, legal notice of this scheduled public hearing was published in the Appeal-Democrat on June 20, 2024.
Discussion & Analysis:
Refuse service is mandatory within the City limits of Marysville. Thus, discontinuing refuse service for non-payment is not an option. For that reason, both state law and the Marysville Municipal Code allow the City to file a lien on a property for delinquent utility service charges, including refuse service. Should those charges remain unpaid, they may be transferred to the secured tax roll for collection at the same time and in the same manner as property taxes due to the City. This public hearing and lien process is Item #10
conducted annually. The purpose of this action is to confirm the list of delinquent charges and direct that they shall be collected by the County as permitted by law and described above.
Fiscal Analysis:
Per the City of Marysville Fee Schedule under Administrative Fees, the City is authorized to collect a refuse lien fee of $40 per assessed parcel. On average, this equates to $7,000 to $8,000 per fiscal year depending on the number of parcels assessed. These total assessed funds are collected through Yuba County and paid directly to the City. The City serves as a pass through agent and sends these funds directly to Recology through our accounts payable process less any refuse liens fees.
Attachments:
1) Resolution No. 2024-XX
2) Exhibit A – Recology Lien List