title
CC - CONSENT ITEM: Waiver of Refuse Penalty Incurred by Possible Productions Inc. and Assessed on January 1, 2023 in the Amount of $6,014.81.
body
Meeting Date: August 28, 2023
Contact Person/Dept: Sean Singletary/Public Works Department
Michael Towler/Finance Department
Phone Number: (310) 253-6457 / (310) 253-5842
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/23/2023)
Department Approval: Yanni Demetri, Public Works Director (08/21/2023); Lisa Soghor, Chief Financial Officer (08/21/2023)
RECOMMENDATION:
Staff recommends the City Council waive the refuse penalty incurred by Possible Productions Inc and assessed on January 1, 2023 in the amount of $6,014.81.
BACKGROUND:
Culver City’s Department of Public Works Environmental Programs and Operations (EPO) division issues refuse containers for permanent addresses, temporary productions, and construction in the City, and the Finance Department bills for these services. Possible Productions received services from EPO for a production at 8635 Hayden Place, incurring costs of $12,029.61 in November 2022. Invoice #622219 was issued December 1, 2022, and payment was not received by the due date of December 31.
Pursuant to CCMC Section 5.01.080, late charges are assessed at 50% of the total invoiced amount. The charges are incurred if the payment was made after the last day of the month following the service month. Invoice #62497 issued on January 1, 2023 included a penalty of $6,014.81 for the late payment. On January 19, 2023, Possible Productions submitted a Refuse Penalty Waiver Request Form for the $6,014.81 penalty. The reason stated for the delayed payment was turnover in their accounting team.
DISCUSSION:
Pursuant to CCMC Section 5.01.080.B.4., only the City Council has the authority to waive late charges in amounts of $5,000.00 or greater. The City Council’s determination regarding such request shall be final. Only one penalty can be waived per account per 12-month period.
This penalty waiver request is the first to be heard by the City Council since the adoption of the original ordinance in 2001. Prior penalty waiver requests have been below the $5,000 threshold, and the City Manager, Chief Finance Officer, and Director of Public Works have the authority determine if the penalty will be waived.
Due to the long-standing relationship with Possible Productions and their turnover occurring during the holidays, staff understands the challenges the organization was having at the time. When there are personnel changes, the new staff is often tasked with reconciling unresolved business, as is the case here. The amount of the penalty greatly exceeds staff time spent researching this case. This will be the only penalty waived on Possible Productions’ account for 8635 Hayden Place for the next 12 months.
FISCAL ANALYSIS:
By waiving the penalty on Possible Productions’ account for 8635 Hayden Place, in the amount of $6,014.81, the costs incurred in researching and preparing the waiver will not be offset.
ATTACHMENTS:
2023-08-28-ATT-CC-Penalty_Waiver_Form-Possible_Prods-(8635-Hayden-Place)
MOTION:
That the City Council:
1. Approve the penalty waiver in the amount of $6,014.81; and
2. Authorize the Chief Financial Officer to waive the penalty.