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HomeMy WebLinkAboutOrd 1284 - Residential Solid Waste Collection - Tax Roll BillingCITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: APPROVE IMPLEMENTATION OF TAX ROLL BILLING FOR RESIDENTIAL SOLID WASTE COLLECTION AND AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 8.16 SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: April 23, 2015 CONTENTS: Amended Ordinance Ordinance No.1284 Recommendation By Minute Motion: 1. Approve implementation of tax roll billing for residential solid waste collection and filing with the County of Riverside Assessor's Office; and 2. Approve amendment to Palm Desert Municipal Code Section 8.16. Discussion On Thursday, April 9, 2015, City Council conducted a Study Session to review the City's Integrated Solid Waste Management Franchise Agreement with Burrtec Waste and Recycling Services, LLC. At the meeting, along with Residential Tax Roll Billing, the following items were discussed and will be brought forward to City Council for consideration at either the May 28 and/or June 11 meeting(s): TERMS AND PRODUCER PRICE INDEX: - Current Franchise Agreement term expires May 31, 2015 - Agreement: Existing one four (4) year extension term to May 31, 2019 - Negotiated: Additional four (4) term to May 31, 2023 - Total eight years will provide Burrtec financing options for a new fleet of trucks • Burrtec to hold Producer Price Index (PPI) Increase for three (3) years for COMMERCIAL ONLY - Commencing in 2015 • FEES AND PROGRAMS - IMPLEMENTATION TIME TABLE: - Residential Tax Roll Billing - 2015 New Recycle Fee Based on Nexus Study - 2016 New Vehicle Impact Fee Based on Road Maintenance & Refuse/Recycle Vehicle Impact Study - 2016 Food Waste/Organics Recycle Program - AB 1826 - 2016 STAFF REPORT APPROVE IMPLEMENTATION OF TAX ROLL BILLING FOR RESIDENTIAL SOLID WASTE COLLECTION AND AMENDMENT TO PALM DESERT MUNICIPAL CODE SECTION 8.16 APRIL 23, 2015 PAGE 2 Ordinance No. 1284 With regard to transitioning from Burrtec's current direct bill system to Residential (non - master billed) Tax Roll Billing, Burrtec has agreed to pay $1.06 per customer to the City for the implementation of tax roll billing and the proposed fund allocation is as follows: $0.73 applied to Recycle Fund • $0.33 applied to General Fund Note: The proposed 10% discount is based on an estimate of the haulers savings as a result of bad debt, labor, and mail costs, and other miscellaneous costs. Also, this 10% is consistent with Master Billed Account savings. The first step in this process requires an amendment to the Palm Desert Municipal Code. As such, Staff recommends approval of Residential Tax Roll Billing and amendment to Palm Desert Municipal Code Section 8.16. Fiscal Analysis Approval of Residential Tax Roll Billing will result in $1.06 per customer paid to the City. The funds will be allocated to the Recycle Fund in the amount of $0.73 and the General Fund in the amount of $0.33. The approximate annual income generated is $175,000. Submitted By: Frankie ft4dle Director of Special Programs Reviewed: /11�- /--15 �0 Rudy ffbosta Assistant City Manager Paul Gibson Director of Finance Approval: n M. Wohlmuth Manager NOTICE OF PUBLIC HEARING CONCERNING THE ADOPTION OF AN ORDINANCE AUTHORIZING THE COLLECTION OF SINGLE-FAMILY RESIDENTIAL SOLID WASTE, GREEN WASTE AND RECYCLING SERVICE FEES ON THE TAX ROLL NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Desert (the "City") will conduct a Public I-learing on April 23, 2015, at 4:00 p.m., in the City Council Chambers in the Civic Center, located at 73510 Fred Waring Drive, Palm Desert, California 92260, or as soon thereafter as the matter may be heard, to consider the adoption of an ordinance authorizing the City to collect residential solid waste, recycling, and green waste service fees ("Refuse Fees") on the Tax Roll in the same manner as property taxes. The City has an exclusive franchise agreement with Burrtec Waste and Recycling Services, LLC ("Burrtec") for the collection and handling of solid waste, recycling, green waste ("Refuse") within the City. All property within the City is required to subscribe to Refuse collection and handling services provided by Burrtec. Currently, City ordinances require that persons occupying or owning residential property pay Refuse Fees for Refuse services. Burrtec currently bills quarterly for these services. In order to reduce costs and provide more efficient service, as of July 1, 2015, the City intends to adopt an ordinance requiring the property owner of record of any single-family residential parcel to be responsible for payment of Refuse Fees, and authorizing the City to collect such Refuse Fees on the property tax roll in the same manner as property taxes. If approved by City Council, collection of such Refuse Fees will commence after August 2015. If adopted, the ordinance will authorize the tax collector to include the amount of the Refuse Fees on bills for taxes levied against the respective single-family residential lots and parcels of land within the City. All laws applicable to the levy, collection, and enforcement of general taxes of the City, including, but not limited to, those pertaining to the matters of delinquency, correction, cancellation, refund, and redemption, shall be applicable to the Refuse Fees. Ra e . Klassen, City rk City of Palm Desert April 6, 2015 ORDINANCE NO. 1284 AN ORDINANCE OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 8.16, SOLID WASTE, SECTIONS 8.16.010 AND ADDING 8.16.110 OF THE PALM DESERT MUNICIPAL CODE. WHEREAS, pursuant to Government Code of the State of California and Ordinance No. 84 adopted August 28, 1975, the City of Palm Desert established rates and fees for garbage and rubbish collection and disposal services thereof; and WHEREAS, the City entered into a Franchise Agreement with a waste hauler to collect and dispose of trash, recyclables, green waste, and other materials as authorized therein; and WHEREAS, the City imposed fees on property owners for the service provided the waste hauler ("Refuse Fees"); and WHEREAS, under Section 2.13 of the Franchise Agreement waste hauler has the option to request Tax Roll Billing and has requested said option be implemented; and WHEREAS, the City of Palm Desert is proposing to amend the Palm Desert Municipal Code to allow for Tax Roll Billing, as defined herein, through the County Tax Assessor's Office. NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN as follows: Section 1. Title 8 ("Solid Waste") of the Palm Desert Municipal Code is amended by revising Chapter 8.16 and Sections 8.16.010, 8.16.020, 8.16.080, 8.16.090, and 8.16.100 to read as follows: Chapter 8.16 SOLID WASTE 8.16.010 DEFINITIONS (NEW SECTION) A. "County" means Riverside County. B. "Tax Roll Billing" means the collection of single-family residential Refuse Fees, and any associated penalties and interest, on "Tax Roll. C. "Refuse Fees" means solid waste, recyclables, green waste, and other fees associated with proper disposal of solid municipal waste. D. "Record Owner" means the owner of a parcel whose name and address appear on the last equalized secured property tax assessment roll, or in the case of any public entity, the State of California, or the United States, means the representative of that public entity at the address of that entity known to the agency. E. "Refuse" means solid waste, recycling, and green waste. ORDINANCE NO. 1284 F. collected by the County. 8.16.110 "Tax Roll" means the assessment roll upon which general taxes of the City are TAX ROLL BILLING (NEW SECTION) A. Exclusive Franchise. The City has an exclusive franchise agreement with a waste hauler for the collection and handling of Refuse within the City. All property within the City is required to subscribe to Refuse collection and handling services provided by the franchise waste hauler. B. Record Owner. Effective July 1, 2015, all Refuse service accounts for single-family residential property shall be established and held in the legal Record Owner's name. The Record Owner shall be responsible for the payment of Refuse Fees for his or her parcel. C. Refuse Service Fees. The City may use Tax Roll Billing to collect the Refuse Fees imposed on the parcel of the Record Owner of a single-family residential property. D. Refuse Fees When Due. Refuse Fees imposed on single-family parcels pursuant to this chapter shall be deemed delinquent if not paid within sixty (60) days of the date they are due to be paid to the County. All other Refuse Fees shall be deemed delinquent if not paid within thirty (30) days following the billing statement date. E. Penalty. A penalty in an amount not to exceed ten percent (10%) of the Refuse Fees which are delinquent shall be imposed upon the Record Owner or the person holding the Refuse service account with the City of a parcel as to which Refuse Fees are delinquent, if not paid in the time and manner prescribed, and in addition may provide for a penalty not to exceed 1 and one-half percent per month for nonpayment of the Refuse Fees and basic penalty. F. Remedies. Any remedies for the collection and enforcement of Refuse Fees, rates or other charges are cumulative and the City may pursue remedies alternatively or consecutively or authorize the County to undertake action(s). G. Exception. Vacant Premises. These requirements shall not apply to any residential premises at which all dwelling unit or units is/are vacant (e.g. new developments) until such time as the dwelling(s) is first occupied. H. Vacation Stop Service. The Record Owner of a single-family residential property may request that service be stopped at the parcel for a minimum/maximum of 30 consecutive days or as otherwise approved. The service shall be stopped only during the period in which the premises are vacated. Any person seeking to avail him or herself of the exception provided herein shall bear the burden of providing reasonable evidence to the City or authorized representative, pursuant to such regulations or guidelines as the City Manager is hereby authorized to develop, demonstrating the premises was vacant for the period in question. At such time as the property is reoccupied a restart fee will apply in addition to Refuse Fees. I. Waiver Request. Verification of Vacancy. The Record Owner requesting that service be temporarily stopped shall complete a verification of vacancy form and submit the form and any documentation as required by the City to the City's authorized waste hauler for review and approval. J. Restart Fee. The Record Owner of a parcel where Refuse service has been stopped shall pay the City a restart fee to resume service. ORDINANCE NO. 1284 Section 2. The City Clerk is directed to certify to the passage and adoption of this ordinance and to cause this ordinance to be posted or published as required by law. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Palm Desert, California, on the 23 day of April, 2015, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: SUSAN MARIE WEBER, MAYOR /_r01X►1M RACHELLE KLASSEN, CITY CLERK