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File #: 25-315    Version: 1 Name: Liens for non-payment
Type: Staff Report Status: Agenda Ready
In control: Finance Committee
Meeting Date: 6/25/2025 Final action:
Enactment date: Enactment #:
Title: Review Resolution Imposing 2025 Liens for Non-Payment of Delinquent Solid Waste Service Charges, Sidewalk/Driveway Repair Charges, CalEPA CUPA Surcharge Fees, Building Code Violation and Code Compliance Citation Fees, Fire Inspections, and Water Pollution Control Plant Commercial and Industrial User Charges; and Review Resolution Overruling Protests Related to Non-Payment of Delinquent Solid Waste Service Charges, Sidewalk/Driveway Repair Charges, CalEPA CUPA Surcharge Fees, Building Code Violation and Code Compliance Citation Fees, Fire Inspections, and Water Pollution Control Plant Commercial and Industrial User Charges.
Attachments: 1. Att A - Reso Authorizing Liens (Draft), 2. Att B - Reso Overruling Protests Liens (Draft), 3. Att C Presentation

Title

Review Resolution Imposing 2025 Liens for Non-Payment of Delinquent Solid Waste Service Charges, Sidewalk/Driveway Repair Charges, CalEPA CUPA Surcharge Fees, Building Code Violation and Code Compliance Citation Fees, Fire Inspections, and Water Pollution Control Plant Commercial and Industrial User Charges; and

 

Review Resolution Overruling Protests Related to Non-Payment of Delinquent Solid Waste Service Charges, Sidewalk/Driveway Repair Charges, CalEPA CUPA Surcharge Fees, Building Code Violation and Code Compliance Citation Fees, Fire Inspections, and Water Pollution Control Plant Commercial and Industrial User Charges.

 

Staffreport

SUMMARY AND RECOMMENDATION

 

Staff recommends the Finance Committee review the following and recommend to City Council for Public Hearing:

 

                     Resolution Imposing 2025 Liens for Non-Payment of Delinquent Solid Waste Service Charges, Sidewalk/Driveway Repair Charges, CalEPA CUPA Surcharge Fees, Building Code Violation and Code Compliance Citation Fees, Fire Inspections, and Water Pollution Control Plant Commercial and Industrial User Charges.

 

                     Resolution Overruling Protests Related to Non-Payment of Delinquent Solid Waste Service Charges, Sidewalk/Driveway Repair Charges, CalEPA CUPA Surcharge Fees, Building Code Violation and Code Compliance Citation Fees, Fire Inspections, and Water Pollution Control Plant Commercial and Industrial User Charges

 

 

BACKGROUND

 

The San Leandro Municipal Code grants the City authority to enforce the collection of delinquent service charges through assessment liens. This process is pursued only after all other collection methods have been exhausted by the Finance Department in coordination with the issuing department. The purpose of these assessment liens is to recover funds the City has expended in providing specialized services.

Typically, the collection process spans several months, beginning with repeated billings and monthly statements sent by the Finance Department to affected residents and businesses. Finance coordinates with departments on the billing and collection efforts with the option to assess lien being the last resort.  If an account remains delinquent despite repeated efforts, the City initiates a formal lien process by issuing at least three notices of intent sent to the property address and/or an alternative address if given, starting with the May statements. Staff offer multiple opportunities for the account holder to resolve outstanding charges before further collection actions are pursued. In addition, a public notice is published twice in the San Leandro Times informing the community of the impending lien process in accordance with the San Leandro Municipal Code. 

The final stage involves City Council action. A public hearing notice is issued in advance, ensuring affected parties have the opportunity to address concerns and submit protests. Following the hearing, the Council can approve the resolution authorizing the assessment of delinquent charges on the tax roll, allowing the Alameda County Tax Collector to incorporate these assessments into property tax bills.

This approach ensures financial accountability and provides a structured mechanism for the City to recover costs associated with unpaid service charges.

 

DISCUSSION

 

Delinquent accounts proposed for liens cover solid waste (refuse) service charges, sidewalk/driveway repairs for property owners completed by the City, Certified Unified Program Agency (CUPA) fees, building code violation and code compliance citation fees, fire inspections, and WPCP commercial and industrial user charges.  The delinquent amounts become an assessment lien on the real property where the service was received.  The summary of all delinquent accounts for each category type is shown below.  Amounts shown have not been paid as of June 12, 2025, although ongoing and continuing attempts have been made to collect overdue balances.

 

Statements for May, June and July 2024 with overdue amounts include lien information and the public hearing date.  Delinquent accounts arise from the following services:

 

                     Alameda County Industries (ACI) provides refuse collection (solid waste) in the City.  In accordance with the San Leandro Municipal Code, ACI bills accounts and provides the required notices regarding the public hearing and lien.  This year’s list includes a slightly longer collection period due to timing alignment with the new ACI agreement that went into effect February 1st. 

 

                     Major repairs to sidewalks and driveways undertaken by the City (repairing street tree related sidewalk damage is shared) pursuant to or in accordance with an agreement with the property owner in compliance with the City Sidewalk/Driveway Repair Program.

 

                     The City enforces environmental laws in its role as a Certified Unified Program Agency (CUPA) with CalEPA CUPA Surcharge Fees.

 

                     Building Code violation and Code Compliance enforcement citation fees, including administrative penalties and charges.  Note:  $831,000 is associated with 1 account that is working with the City to bring into compliance.  Monies spent on compliance and development efforts will be put towards charges.  The City anticipates coming to a successful resolution without need to submit the account to lien. 

 

                     Fire Inspections - Annual R2 fire inspections (multiple family dwellings with 3 or more units). 

 

                     WPCP Commercial and Industrial User and Connection Charges.  Note: $239,000 is associated with 2 accounts.  The City anticipates these accounts will be paid before the deadline to submit to the County. 

 

 

Analysis

 

The San Leandro Municipal Code authorizes the City to enforce the collection of delinquent service charges after all reasonable efforts to recover outstanding balances have been exhausted. This process ensures that the City can recoup funds spent on essential services, particularly those related to public safety and regulatory compliance.

Most of the delinquent charges subject to lien assessments are tied to services that the City has already provided, such as solid waste collection, sidewalk/driveway repairs, fire inspections, CUPA fees, and code enforcement actions. These services are necessary for maintaining safety, compliance, and environmental health within the community. By recovering these costs through the property tax system, the City ensures that the financial burden does not fall disproportionately on the general taxpayer base.

This enforcement mechanism helps sustain critical municipal functions while reinforcing fiscal responsibility and compliance with established financial policies.

 

Financial Impacts

 

The City will eventually collect the entire delinquent amount submitted by the Alameda County Tax Collector through the 2026 fiscal year. Notice and collection efforts will continue through the end of July and only the remaining balances will be submitted to the County. The total amount of fees and charges submitted for lien is as follows: 

 

                     Type                     Amount                     # of Accounts

Solid Waste Service Charges                     $   103,800                                          194

CUPA Fee                     $     20,500                                            20

Code Compliance/Enforce.                     $1,010,700                                            76

Sidewalk/Driveway Repairs                     $     13,800                                              8

Fire Inspections                     $       6,600                                101

Wastewater User/Connection                     $   286,900                                              5

Total                      $1,442,300                        404

                     

 

ATTACHMENTS

 

                     Attachment A - Resolution Imposing Liens for Non-Payment of Delinquent Accounts (Draft)

                     Attachment B - Resolution Overruling Protests (Draft)

                     Attachment C - Presentation

 

PREPARED BY

 

Susan Nunes, Acting Finance Manager