Item Coversheet

Agenda Item - 2.b.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Lisa L. Kim

From:Patricia Song
Dept.:General Manager 

Dept.: Finance 
Subject:Adoption of a Resolution to authorize the imposition of liens on parcels with delinquent payments for refuse collection and disposal service charges.  (Action Item)Date:6/13/2023

OBJECTIVE

For the Garden Grove Sanitary District Board of Directors to conduct a public hearing on the delinquent refuse collection and disposal fees report; adopt the attached Resolution approving the report identifying the unpaid bills for refuse collection and disposal services and authorizing the imposition of liens on property with delinquent accounts; and direct staff to file the necessary documentation with the County for assessment on the appropriate parcels.  This action requires five (5) affirmative votes in order to proceed with placing liens on the properties listed in the report.

BACKGROUND

Pursuant to the requirements of the California Health and Safety Code, the Garden Grove Sanitary District may, following notice and a public hearing, impose liens on properties for refuse collection and disposal service bills that are delinquent for a period of sixty (60) days or more.  Republic Services bills customers quarterly for refuse collection and disposal services. If a billing is not paid, a reminder is mailed to the individual who is responsible for the service. In addition, if a tenant does not pay for the service, the landlord is notified of non-payment thirty (30) days prior to the public hearing. If a bill for service remains unpaid for a period of sixty (60) days, at the end of the fiscal year an assessment process is implemented and a lien imposed on the property.

DISCUSSION

The last Republic Services billing for Fiscal Year 2022-2023 was prepared and mailed in February 2023, and all unpaid charges on that billing became delinquent as of May 1, 2023.  Sixty (60) days after the delinquency date, the delinquent amount, plus the associated penalty of 10%, may be filed with the County Auditor/Controller's Office.  Upon recordation by the County Recorder, the amount submitted by parcel shall be collected at the same time and in the same manner as property taxes and shall be subject to the same penalties and to the same procedure for foreclosure as provided for general County taxes. 

 

Prior to the delinquent amount becoming a lien against the property, the individual property owner is notified of the delinquent amount and the date and time of the public hearing. Notification letters were mailed this year in English, Korean, Spanish, and Vietnamese. To further ensure that all parties are aware of the potential lien, a notice announcing this hearing date was published in a local newspaper.  This year, the notice was also translated into Korean, Spanish, and Vietnamese and published by local Korean, Spanish, and Vietnamese newspapers.

 

The report of delinquent accounts is on file and available for review in the City Clerk's Office.  An updated report will be available at the June 13, 2023  Sanitary District Board special meeting. In order for the delinquent charges to be placed on the County's property tax roll, the Board is required to hold a public hearing to approve the charges to be collected by parcel.
FINANCIAL IMPACT

Delinquent charges for refuse collection and disposal services totaled $406,437 for Fiscal Year 2022-23.  Funds received from the County will be remitted to Republic Services less any franchise fees due to the City and any County administrative charges. 

RECOMMENDATION

It is recommended that the Garden Grove Sanitary District Board of Directors:

 

  • Conduct a public hearing on the report of delinquent refuse collection and disposal fees;

 

  • Adopt the attached Resolution approving the report and authorizing the imposition of liens for the collection of delinquent refuse collection and disposal fees (with at least five (5) affirmative votes); and

 

  • Direct staff to file necessary documentation with the County for the collection of the delinquent charges on the property tax bills.



ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Attachment 1 - Resolution6/6/2023Resolution6-13-23_cc_Reso-Delinquent-Refuse-Liens-_2023_(1).pdf
Attachment 2 - Report on Delinquent Accounts by Parcel6/2/2023ExhibitDelinquent_Refuse_Liens_Report_2023.pdf