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HEARING - Treasurer-Tax Collector’s Office recommending the Board adopt and authorize the Chair to sign Ordinance 5206 amending Title 3 Revenue and Finance, Chapters 3.29 and 3.34 of Title 3 to update fees that are not mandated by statute, add additional fees to recover the cost to provide these services and to correct a typographical error.
FUNDING: N/A
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DISCUSSION / BACKGROUND
California Government Code Chapter 12.5 County Fees, Section 54985, authorizes the Board of Supervisors to “recover the cost of providing any product or service . . .” (Attachment C). Chapter 3.28 of Title 3 of the El Dorado County Ordinance Code describes the services and products which the Treasurer-Tax Collector provides on a fee basis. On June 27, 2023, the Board approved Ordinance 5176 updating Title 3, the Treasurer Tax Collector’s Schedule of Fees. Since that time, staff costs have increased and minor adjustments are necessary to recover the costs of providing certain services.
Additionally, a typographical error was discovered in Ordinance 5176, at fee number 36, Notification of Parties of Interest. This fee had been approved at $308, the actual staff cost to perform the service but in the fee schedule update an error was made, and the fee was changed to $38. The error is corrected in this Ordinance amendment (Attachment D). California Government Code updates are also included.
The ordinance also includes the addition of fees charged by the Treasurer-Tax Collector’s Revenue Recovery Division for the services they provide pursuant to County Board of Supervisors Policy B-4. Containing all fees into one schedule furthers the County’s mission of transparency in government. When a debt owed to the County is unable to be collected by its originating department, it is referred to the Revenue Recovery Division for collection assistance. Revenue Recovery then works to collect this amount on behalf of the originating department and is entitled to a fee to cover its costs of collection. The fee is based on the amount owed and is applied to the debt. At no time would the fee exceed 14 percent of the amount originally referred by the originating department.
Further, if Revenue Recovery is unable to collect the debt, they will then refer the debt to an outside collection agency. This outside collection agency also charges a fee to the County for their services which is only applied upon their successful collection efforts.
There are two fees included in the proposed ordinance/fee schedule: 1) Item #44 - The first fee of 14 percent is charged as described above, as described above; and 2) Item #45 - The second fee of 33.33 percent is applied to the debt when County refers the account to an outside collection agency. These fees ensure that debtor bears the cost of the revenue recovery process and the County is made whole as a result.
Also included in the ordinance is an amendment to Section 3 - Establishment of Fees for Identification of Parties of Interest, Sec. 3.34.030 - Fees. The current Section specifies a fee of “the lower of the lowest bid provided by a reputable title company located within El Dorado County for an acceptable report of a title search, or $250, the reasonable cost of salaries and benefits of El Dorado County employees to develop the ‘parties of interest’ information.” The recommended revision will remove the specific dollar amount in this section and refer to Sec. 3.29.040 - Fee Schedule.
Identification of Parties of Interest is arguably the most complex and time-consuming of the tax sale process. Parties of Interest are defined as lienholders of record and any persons with title record to the property or any portion of the property on the tax sale list. A thorough title search must be conducted, and all parties of interest must be mailed notice by certified mail (with return receipt requested), not less than 45 days prior to the proposed sale. An analysis revealed that staff cost to complete this process for a single property is currently $308, as is listed in the Fee Schedule.
See Summary of fee changes:
Fee No. Description Current Fee $ Proposed Fee $ Reason for Change
13. DMV Hold Fee $18.00 $38.00 Cost Recovery
36. Identification of Parties of Interest $38.00 $308.00 Correct Typo. /Cost Recovery
44. Rev. Recovery: Dept. Referral 14% 14% Cost Recovery
45. Rev. Recovery: Outside Agency Referral N/A 33.3% Cost Recovery
This ordinance is proposed for approval and adoption pursuant to Government Code (GOV) subsection (§) 54985 and County Ordinance Code Section 1.04.260, following today’s required public meeting (GOV § 54986). The Ordinance has been noticed (see Attachment F) and may be passed at today’s meeting with no second reading. If approved, the Ordinance will take effect thirty (30) days from execution.
ALTERNATIVES
The Board could choose not to approve this recommendation.
PRIOR BOARD ACTION
June 27, 2023, Item 58, Ordinance 5176 Final Passage
July 14, 2020, Item 11, File 20-0772, Ordinance 5125 Final Passage
November 10, 2015, Item 13, File 15-1098, Ordinance 5027 Final Passage
September 23, 2014, Item 23, File 14-0747, Ordinance 5012 Final Passage
June 8, 2004, Item 64, Ref. No. 35124, Ordinance 4651 Final Passage
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel has approved this Fee Schedule Update as to form.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The financial impact of these fee modifications will not be known until after one year.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board will obtain the Chair’s signature on the original Ordinance 5206
2) Clerk of the Board will publish a summary of this Ordinance pursuance to Government Code Section 2514(b)(1)
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Julia Tate
Assistant Treasurer-Tax Collector
530-621-5832