File #: 6488   
Type: Discussion Status: Passed
File created: 7/19/2022 Department: Public Works-Solid Waste Management
On agenda: 7/26/2022 Final action: 7/26/2022
Subject: Public Hearing for the Collection of Delinquent Solid Waste Handling Fees
Attachments: 1. ATT-PW-Waste 7-26-22 Public Hearing Delinquent Hauler Fees, 2. PPT-PH-PW-Waste 7-26-22 Delinquent Accounts (revised 7-20-22)b.pdf, 3. Item #65 Executed BAI

REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS

OF SAN BERNARDINO COUNTY

AND RECORD OF ACTION

 

July 26, 2022

 

 

FROM

BRENDON BIGGS, Director, Department of Public Works - Solid Waste Management

         

SUBJECT                      

Title                     

Public Hearing for the Collection of Delinquent Solid Waste Handling Fees

End

 

RECOMMENDATION(S)

Recommendation

1.                     Conduct a public hearing regarding placement of franchise hauler identified delinquent solid waste handling service fees on the 2022-23 property tax assessment roll.

2.                     Adopt the report of delinquent fees on file with the Clerk of the Board of Supervisors.

3.                     Authorize the Director of the Department of Public Works to amend the report of delinquent fees to remove those accounts that are paid in full, or adjust the amounts owed due to the revision of the penalties and the fees and/or partial payment of the delinquent charges, prior to the report being submitted to the Auditor-Controller/Treasurer/Tax Collector for placement on the 2022-23 property tax roll and to the Assessor-Recorder-County Clerk for the recording of liens against the parcels.

(Presenter: Brendon Biggs, Director, 387-7906)

Body

 

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES

Operate in a Fiscally-Responsible and Business-Like Manner.

 

FINANCIAL IMPACT

Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the Department of Public Works - Solid Waste Management Division (SWMD) is financed by fee revenue. SWMD establishes fees that are charged to the public and other agencies for utilization of the County Waste Disposal System. The franchise haulers have reported an estimated 5,053 delinquent accounts, totaling approximately $1,569,087 in unpaid service charges and related lien processing fees, for proposed placement on the 2022-23 property tax roll.  As authorized by the San Bernardino County Code section 46.0506 (County Code), SWMD charges a penalty fee of 10% of the unpaid service charges, which is included in the delinquent accounts total, for performing this task on behalf of the franchise haulers.

 

BACKGROUND INFORMATION

On April 6, 2004 (Item No. 21), the Board of Supervisors (Board) approved Uniform Handling Services in the Valley and a portion of the Mountain unincorporated area of the County requiring all improved residential properties to subscribe to and pay for mandatory trash collection service. Uniform Handling property owners have the option of obtaining an approved exemption from trash and recycling collection service by obtaining a Uniform Handling Exemption after meeting the specific criteria of the program. Burrtec Waste Industries, Inc. (Burrtec) also offers a fee waiver program for residents whose homes are vacant or have infrequent use in certain franchise areas as approved by the Board on October 8, 2019 (Item No. 60).

 

In areas subject to Uniform Handling, the County Code and franchise agreements prohibit the hauler from discontinuing service for non-payment of monthly service fees. County Code requires that accounts shall be considered delinquent if unpaid for 90 days after the invoice is mailed. In order to compensate the franchise hauler for services provided, the County Code states that the delinquent fees, related penalties, interest, and costs of collection, shall be considered a debt owed to the County that, pursuant to Health and Safety Code sections 5473 through 5473a, the County has elected to have collected through the County’s property tax roll at the same time as general taxes. The number of liens and the amount collected for the eight previous years is summarized in the following table:

 

Budget Year

Liens Authorized

Liens Placed

Collected

 

Number

Amount

Number

Amount

Amount*

2021-22

5,328

$1,641,401

2872

$1,034,059

$1,027,795

2020-21

5973

$1,824,762

3,190

$1,109,828

$1,177,004

2019-20

5,721

$1,705,348

3,591

$1,196,598

$1,245,047

2018-19

5,093

$1,449,351

3,419

$1,078,485

$1,147,935

2017-18

4,870

$1,393,490

3,058

$998,920

$1,082,536

2016-17

4,581

$1,380,976

2,882

$981,503

$1,060,056

2015-16

5,329

$1,445,267

3,443

$1,070,236

$1,147,221

2014-15

5,160

$1,370,396

3,457

$1,029,989

$1,105,210

2013-14

5,490

$1,417,829

3,600

$1,034,817

$1,121,602

 *Includes delinquent charges, administrative costs, and interest and penalties.

 

The final number of liens to be placed on the tax roll each year are less than the number authorized because customers are afforded the opportunity to pay, in full or in part, their delinquent charges prior to the recordation of a lien against the parcel. Customers that have an outstanding balance are notified by Burrtec or its subsidiaries through the regular billing process. In addition, prior to the Public Hearing on July 26, 2022, Burrtec mailed a notice on July 11, 2022, to the customers notifying them of their delinquent trash and recycling service charges and of the possibility that a lien may be placed on their property if payment is not received. The letter provides customers with the date, time and location of this public hearing and a final date to receive payment in order to avoid additional fees and having a lien recorded against their property.

 

For the 2022-23 tax roll, there are an estimated 5,053 delinquent accounts for service charges and related lien processing fees totaling $1,569,086.59 in the following County Franchise Areas:

 

County Franchise Area (CFA)

 Number of Liens

Delinquent Amount including fees

  Location

 Franchise Hauler

1

78

$27,615.75

San Antonio Heights, Mt. Baldy

Burrtec Waste Industries

2

188

$61,511.32

Unincorporated Montclair, Upland

Burrtec Waste Industries

5

686

$234,994.54

Unincorporated West Fontana

Burrtec Waste Industries

6

752

$266,625.14

Bloomington

Burrtec Waste Industries

8

481

$176,647.94

Muscoy, Unincorporated San Bernardino

Burrtec Waste Industries

9

66

$27,147.05

Unincorporated North Rialto

Burrtec Waste Industries

10

676

$190,186.50

Del Rosa, Devore

Jack’s Disposal

11

20

$5,443.43

Unincorporated Loma Linda

Burrtec Waste Industries

12

195

$59,915.42

Mentone, Oak Glen, Angelus Oaks, Mountain Home

Empire Disposal

16

1,911

$518,999.50

Lake Arrowhead, Crestline, Running Springs

Mountain Disposal Company

Total

5,053

$1,569,086.59

 

 

Section 5473 et seq. of the California Health and Safety Code sets forth the procedures for collecting such delinquent fees through the tax roll. The statute requires the scheduling of a public hearing to accept the list of delinquent charges as a debt owed to the County and that all affected property owners be notified of the hearing at least 14 days prior to the scheduled date of the hearing. This was accomplished by the Clerk of the Board of Supervisors through publishing a notice in local newspapers. In addition, the franchise hauler mailed a written notice on July 11, 2022, including the time, date, and location of said hearing to all affected property owners within their respective franchise areas.

 

Upon submittal to the Auditor-Controller/Treasurer/Tax Collector on or before August 10 of each year, the delinquent accounts will be placed on the tax rolls for collection and liens recorded against the applicable parcels. The recorded liens will provide notice to subsequent purchasers and mortgagees of the outstanding delinquencies. Collecting delinquent hauler service charges through the tax rolls is a standard practice for local jurisdictions such as the cities of Fontana, Yucaipa, Rialto, Highland and many others that provide their communities with similar Uniform Handling services. The County first placed delinquent hauler liens on the 2005 tax roll for Budget Year 2005-06 and continued in each subsequent year.

 

The placement and collection of delinquent hauler fees on the property tax assessment role supports the goals and objectives of operating in a fiscally-responsible and business-like manner by taking all necessary steps to ensure that property owners who are required to pay for solid waste collection services do so.

 

PROCUREMENT

Not applicable.

 

REVIEW BY OTHERS

This item has been reviewed by County Counsel (Jolena Grider, Deputy County Counsel, 387-5455) on June 8, 2022; Finance (Carl Lofton, Administrative Analyst, 387-5404) on July 7, 2022; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on July 11, 2022.