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SR - RES-11022 - UPDATE RATES COLLECTED FOR SANITATION CHARGES ON PROPERTY TAX ROLLS1. SUBJECT Resolution No. 11022 — A Resolution of the City Council of the City of Orange Updating the Rates Collected for Sanitation Charges on the Property Tax Rolls. 2. SUMMARY In July 2013, the City Council adopted Resolution No. 10725 to allow for the collection of sanitation charges from customers that do not have water service through the City. This resolution allowed for the collection of sanitation charges consistent with the charges in effect at that time. In June 2017, the City Council adopted new sanitation rates. In order to charge these new rates through the property tax roll, an updated resolution is necessary to reflect the new rates. 13. RECOMMENDED ACTION Adopt Resolution No. 11022 which allows for the continued placement of sanitation charges for 682 sanitation -only customers. 1 4. FISCAL IMPACT Adoption of the resolution will allow for the continued savings of approximately $4,000 per year in staff, printing, postage expenses, and reduced bad debt expense. 5. STRATEGIC PLAN GO 2a. Be a fiscally healthy community — Effectively manage and develop City assets. 16. GENERAL PLAN IMPLEMENTATION Not applicable. 7. DISCUSSION and BACKGROUND In July 2013, the City Council adopted Resolution No. 10725, which approved the placement of 682 customer accounts on the tax rolls. This change was made because CR &R took over billing for trash, which left these customers as sanitation -only accounts. These customers receive water service from other agencies. Unlike water customers, sanitation -only customers cannot be shutoff for non - payment. As such, collections became more difficult because the City had little recourse for collections. By putting these charges on the property tax rolls, collection rates increased significantly. As part of the adoption of Resolution No. 10725, the City was required to notify all customers affected by this change. This step is only required when the charges are first added to the property tax bills. In June 2017, the City Council adopted new sanitation rates. Resolution No. 10725 only allowed for the rates that were in effect at the time it was adopted. With the new sanitation rates going into effect September 1, 2017, Resolution No. 10725 is no longer valid. Resolution No. 11022 will allow for the updated rates to be charged to these sanitation -only customers. Since the property tax bills cover the entirety of Fiscal Year 2017 -18, staff has pro -rated the bills for this year. Two months will be charged at the old rates and ten months will be charged at the new rates. The resolution includes updated tax roll rates for each customer for each of the annual increases contemplated in new rate schedule. 8. ATTACHMENTS Resolution No. 11022 RESOLUTION NO. 11022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE UPDATING THE RATES COLLECTED FOR SANITATION CHARGES ON THE PROPERTY TAX ROLLS. WHEREAS, the City of Orange Finance Department previously billed for residential trash service; and WHEREAS, the billing for residential trash service was taken over by the City's trash contractor CR &R in 2013; and WHEREAS, because of this, the City was billing approximately 640 accounts solely for the sanitation charge, which charge included sewer, street sweeping, tree trimming, and storm water charges and 42 accounts solely for sewer; and WHEREAS, the City Council adopted Resolution No. 10725 and the City properly noticed customers in compliance with Health and Safety Code section 5473 and Government Code section 6066 to allow for such charges to be collected in the same manner and at the same time as property taxes; and WHEREAS, Resolution No. 10725 only allowed for the placing of sanitation charges at rates in effect at the time of its adoption; and WHEREAS, the City Council, in June 2017, adopted Ordinance No. 04 -17 which provides for multi -year increases to the City's sanitation charges. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Orange hereby resolves as follows: 1. Resolution No. 10725 is hereby repealed. 2. That the sanitation charges, as set forth in the attached Exhibit "A ", which is incorporated herein by this reference, be placed on the Orange County Property Tax Roll for the Fiscal Years 2017 -2018 through 2021 -2022, and all subsequent fiscal years and that such charges be collected in the same manner and the same time as the property tax, and that a copy of this Resolution, along with Exhibit "A ", be forwarded to the Auditor - Controller of the County of Orange. 3. That this Resolution shall remain in effect until repealed or until a change is made in the rates charged by the City.