pages: CityCouncil/2018-06-19.pdf, 6
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CityCouncil | 2018-06-19 | 6 | late fees are not the fault of the tenant, and neither is increase in utilities. Councilmember Ezzy Ashcraft stated a pass-through was considered at one point; waiting until after the November election might be prudent. The Finance Director continued presentation. Mayor Spencer inquired what the 10% per month is based on, to which the Finance Director responded the 10% late fee is the same as late fee for business licenses; stated staff proposed the fee to entice on-time payment; it can be changed if Council desires. Mayor Spencer stated that she thinks 10% per month is high and cannot support it. Vice Mayor Vella inquired how the 10% per month was decided. The Finance Director responded the 10% fee mirrors the business license late fee; stated two years ago, the late fee was brought to Council; other cities surveyed to determine Alameda's late fee; the fee can be changed if Council does not think 10% is appropriate. Vice Mayor Vella inquired whether the types of businesses are differentiated, such as home-based businesses, and are being impacted by the fee structure. The Finance Director responded the fee varies depending on the business type and category it falls under; stated there are a variety of taxes; in some cases, the tax depends on gross receipts; whether the business is in a home or office does not matter. Vice Mayor Vella inquired how long ago the fee was voted on, to which the Finance Director the last vote was in 1965. In response to Mayor Spencer's inquiry, the Finance Director stated the 10% fee is not considered a tax and was approved by Council. Mayor Spencer stated that she wants to make sure it is clear that the 10% late fee was not voted on by the people. Councilmember Matarrese moved adoption of the resolution. Councilmember Oddie seconded the motion. Under discussion, Mayor Spencer stated credit card fees average 16%, compared to the 60% in six months for the rent business license late fee. Councilmember Ezzy Ashcraft stated the purpose of the fee is to help fund the program in order to serve tenants and landlords; the fee is meant to incentivize timely payments; she supports the fee. Regular Meeting Alameda City Council 5 June 19, 2018 | CityCouncil/2018-06-19.pdf |