Memorandum
Date: February 3, 2026
To: The Honorable Lake County Board of Supervisors
From: Patrick Sullivan, Treasurer - Tax Collector
Subject: (a) Waive the competitive bidding requirement as it is not in the public’s interest pursuant to Article X, Section 2-38.2(3); (b) Approve Agreement between the County of Lake and the California State Franchise Tax Board to collect court ordered fines; and authorize the Treasurer-Tax Collector to sign
Executive Summary:
The Lake County Tax Collector is charged with collecting court ordered fines. This agreement allows the Tax Collector Department to refer delinquent accounts to the State of California, Franchise Tax Board (FTB) for collection.
There would be no additional up-front cost for the County. The FTB would collect a fee, not to exceed 20% of any amount collected, only on accounts we are unable to collect on and are referred. This fee cap increased recently by 5% due to new legislation. The 20% fee is referenced in Revenue and Taxation Code section 19282 (a) & (b).
The Treasurer-Tax Collector requests authorization to use court ordered debt collection services provided by the California Franchise Tax Board through January 31, 2029 in accordance with the attached Agreement #121925.
Our office was provided this Agreement in a State of California "Standard Agreement" format. Staff recommends approval of the agreement and authorization for the Treasurer-Tax Collector to sign.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☐ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☐ County Workforce
☐ Community Collaboration ☒ Business Process Efficiency ☐ Clear Lake
Recommended Action: (a) Waive the competitive bidding requirement as it is not in the public’s interest pursuant to Article X, Section 2-38.2(3); (b) Approve Agreement between the County of Lake and the California State Franchise Tax Board to collect court ordered fines; and authorize the Treasurer-Tax Collector to sign.