CC_Minutes_2010_0816 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, August 16, 2010 Page 10 City Manager Malinen asked for City Council authorization for staff to proceed with enforcement action, through initiation of civil action. From his perspective, Mr. Malinen clarified that this was an imposed City tax and the City should en- force collection, even though a percentage of the funds were remitted to the RVA for their operations. Mayor Klausing opined that it would serve as a bad precedent to initiate an "opt out" program for taxes; and suggested that legal resource for collection action be taken unless it was a nominal amount. City Attorney Bartholdi noted that the ordinance allowed the City to obtain and audit records from the motel to determine the accuracy of the actual tax owed based on those records. Further discussion included the total delinquent amount and payments made to- date; whether it was more prudent, depending on determination of the actual amount due from that audit, to pursue remedy in small claims court. Councilmember Ihlan requested a future policy discussion related to collection of such delinquent fees and/or taxes and who was responsible for legal costs to avoid premature collection attempts and legal costs. Councilmember Roe requested, as part of future policy discussions, to make a de- termination whether current penalties and interest are adequate for enforcement and assignment of legal costs for collection of delinquent amounts. City Attorney Bartholdi clarified that, under these circumstances, the Holiday Inn Express would not be responsible for legal costs, as there was no contractual agreement in place. However, Mr. Bartholdi advised that the existing City Code, Chapter 312, could be revised to include such a provision. Councilmember Roe opined that it seemed prudent to revise Chapter 312 accor- dingly to add that provision. Councilmember Roe noted that currently policy in- dicated the businesses had until the 25th of the following month to remit payment, at which time the amount became delinquent and fines and penalties accrued; but cautioned that if the code stated a specific time for collections, everyone would wait until then to pay. Councilmember Roe requested additional information from staff as previously noted and related to the actual dollars owed; and if the amount was found to be significant, legal action £or collection should be pursued. Councilmember Pust concurred, that additional document be pursued from the business for auditing the actual amount due, at which time the matter could be pursued in Small Claims Court.