TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Bruce Moe, Finance Director
Steve Charelian, Revenue Services Manager
SUBJECT:Title
Revised Street Sweeping Refund Process for Expanded Refund Period (Finance Director Moe).
RECEIVE REPORT
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that City Council receive this report on the revised street sweeping fee refund process.
Body
FISCAL IMPLICATIONS:
The total amount of refunds will depend upon the number of claims submitted. If all accounts, past and present, file a claim dating back to the inception of the street sweeping fee in 2004, it is estimated to have a maximum value of $3.05 million (this includes claims already submitted and paid under the previous four year refund period). Refunds are paid from the Refuse Fund balance (the fund which collected the fees). Please note that to the extent refunds exceed available Refuse Fund moneys (estimated at $860,000), the General Fund will need to subsidize the refunds. This may require utilization of the Economic Uncertainty reserve.
BACKGROUND:
In 2004, the City commenced charging a street sweeping fee to residents and businesses. The charge appeared on utility bills as a separate line item and was based upon a percentage of the refuse bill. Street Sweeping fees collected have been used to recoup the costs associated with removing debris from the streets and preventing the collection and accumulation of that debris in the storm drain system and ultimately the ocean.
Starting June 24, 2013 the City discontinued charging residents and businesses the street sweeping fee, and provided a claim process for refunds of fees already paid. Refunds were provided for up to four years for claimants based on actual fees paid. Since July 2013, 2,836 claims have been processed with a total value of $287,000. Out of the 2,8...
Click here for full text