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Home My WebLink About2014-07-08 Item 18 City of Chula Vista Staff Report File#:14-0374, Item#: 18. CONSIDERATIONOFTHEPROPOSEDASSESSMENTOFCERTAINDELINQUENTSOLID WASTESERVICECHARGESASRECORDEDLIENSUPONTHERESPECTIVEPARCELSOF LANDANDPLACEMENTOFDELINQUENTCHARGESONTHENEXTREGULARTAXBILLFOR COLLECTION RESOLUTIONNO.2014-134OFTHECITYCOUNCILOFTHECITYOFCHULAVISTA ASSESSINGCERTAINDELINQUENTSOLIDWASTESERVICECHARGESASRECORDED LIENSUPONTHERESPECTIVEPARCELSOFLANDANDAPPROVINGTHEPLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL FOR COLLECTION RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY InordertoadequatelyprotecttheCity’sinterestindelinquentsolidwasteservicechargesandensure thatcollectioneffortsaredirectedtowardtheresponsiblepropertyownerintheeventofachangeof ownership,staffisrecommendingapprovalofliensagainstaffectedpropertiesasapreliminaryaction toplacingthedelinquenciesonthepropertytaxrollsiftheyremainunpaid.Adoptionofthis resolutionwillenhancethecollectionprocessfordelinquentsolidwasteservicechargesbyreducing theamountofuncollectiblelossesandensurethatpaymentwillbereceivedonatimelybasis.This is the identical process approved by the City Council on a regular basis since mid-2001. ENVIRONMENTAL REVIEW TheEnvironmentalReviewCoordinatorhasreviewedtheproposedactivityforcompliancewiththe CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthattheactivityisnota“Project”as definedunderSection15378(b)(4)oftheStateCEQAGuidelines;therefore,pursuanttoSection 15060(c)(3)oftheStateCEQAGuidelinestheactivityisnotsubjecttoCEQA.Thus,no environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not applicable DISCUSSION InNovember1998,theCityCouncilamendedMunicipalCodeSection8.24toeliminatesuspension ofsolidwasteservicefornonpayment.Toensurethatallresidentspaytheirfairshareofthecostsof thisprogram,theordinanceallowsdelinquentsolidwasteservicechargestobeassessedas recordedliensupontheaffectedpropertiesandultimatelyplacedonthepropertytaxbillsfor collection.Theordinancestatesthatuponnotificationofthepropertyowners,apublichearingisset forsolidwasteserviceaccountsthatareoverninetydaysdelinquent.Atthehearing,theCity Councilconsidersthedelinquentaccountstogetherwithanyobjectionsorprotestsbyinterested City of Chula VistaPage 1 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0374, Item#: 18. parties.Attheconclusionofthehearing,theCityCouncilmayeitherapprovethedelinquencyand amountowedontheaccountsassubmittedorasmodifiedorcorrectedbytheCityCouncil.Lastly, theCityCounciladoptsaresolutionassessingsuchamountsasrecordedliensupontherespective parcelsofland,andtheamountsarechargedtothepropertyownersonthenextregularpropertytax bill.Astheseamountsarecollected,themoniesareremittedtoRepublicServices(formerlyAllied Waste), less the City’s Franchise Fees, AB939 fees and late charges. Becausechargescanonlybesubmittedforplacementonthepropertytaxbillsonceeachyearin August,staffisrecommendingassessingliensontheaffectedpropertiesmidyeartobetterensure theCity’schancesforcollection.IftheCityweretoaddressthesedelinquentchargesonlyonce eachyearinAugust,theeffectivenessofusingthepropertytaxbillasameansofcollectionwouldbe significantlyreducedastheownersofrecordinAugustwouldnotnecessarilybethepeople responsibleforthedelinquentcharges.Incaseswherethepropertiesaresoldortransferred, assessingliensmidyearholdsthecorrectpartiesresponsibleforthedelinquentcharges.Incases wherethepropertyownerschoosetorefinancetheirmortgages,themidyearliensensuretheCity’s receiptofpaymentinatimelymanner,asthedelinquentchargesarepaidthroughescrowduringthe refinancing process. InFebruary2014,theCityCouncilapproved1,171delinquentaccountsvaluedat$162,353tobe placedonpropertytaxbillsforcollection.SincetheFebruary2014Councilaction,RepublicServices hasidentifiedandsubmitted3,246delinquentaccountsvaluedat$339,297totheCityforcollection. ThroughtheCity’scollectionefforts,2,285accountshavebeenresolved,andtheremaining961 accountsvaluedat$237,054arenowbeingsubmitted(listingavailableattheFinanceDepartment). TheaccountstatusandpropertyownershipontheseaccountshavebeenverifiedbybothRepublic Services and City staff. Thesepropertyownershavebeennotifiedoftheirdelinquenciesthroughaseriesofpastduenotices sentbyRepublicServices,untiltheywereultimatelysubmittedtotheCityforcollection.Citystaff sentoutpastdueletterwithinthelast60days,andtwoweeksago,thesepropertyownerswere notifiedofthepublichearingandwereaskedtopaytheirdelinquentsolidwasteservicechargesprior totransmittalofthedelinquentaccountlisttotheCountytoavoidalienbeingplacedontheir property.CitystaffhasbeenworkingwithRepublicServicestoresolveanycustomerdisputesas theyariseandpaymentarrangementshavebeensetupasneeded.Staffwillcontinuetoupdatethis listaspaymentsarereceivedandaccountsarecleared.AfinallistwillbesubmittedtotheCity Councilforconsiderationonthedayofthepublichearinginordertoreflectthemostcurrentpayment postings. StaffisrecommendingthattheCityCouncilapprovethefinallistofdelinquentsolidwasteservice accountsassubmitted,andthatthesechargesbeforwardedtotheCountyandassessedas recordedliensontherespectiveparcelsoflandandultimatelyplacedonthenextregulartaxbillfor collection. Delinquency Trends RatesofdelinquentsolidwasteaccountsturnedovertotheCityforcollectionappeartobestabilizing slightlyabovepre-recessionlevels.Thechartbelowillustratestheaveragenumberofdelinquent accounts(blueline)andtheaveragevalueofthoseaccounts(redline)turnedovertotheCityfor collections,onamonthlybasissinceDecember2006.Alsoshownaretheaveragenumberof City of Chula VistaPage 2 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0374, Item#: 18. delinquentaccountsincludedinthepublichearingprocess(greenline)andtheaveragevalueofthe accountsincludedinthepublichearingprocess(purpleline),onamonthlybasisforthesameperiod. Thegapbetweentheoriginaldelinquentaccountsandthepublichearingaccountsreflectstheefforts of Finance Department staff to resolve delinquencies prior to the public hearing process. Chart 1 - Delinquent Solid Waste Account Trends DECISION-MAKER CONFLICT StaffhasreviewedthepropertyholdingsoftheCityCouncilandhasfoundnopropertyholdings within500feetoftheboundariesofthepropertywhichisthesubjectofthisaction.Staffisnot independentlyaware,andhasnotbeeninformedbyanyCityCouncilmember,ofanyotherfactthat may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS TheCity’sStrategicPlanhasfivemajorgoals:OperationalExcellence,EconomicVitality,Healthy Community,StrongandSecureNeighborhoodsandaConnectedCommunity.Thisactionsupports theOperationalExcellencegoalbyprotectingrevenues.Implementingpolicestoprotect/generate revenues is an objective of City Initiative 1.1.1. - “Implement Fiscal Recovery and Progress Plan.” CURRENT YEAR FISCAL IMPACT Approvaloftheresolutionsupportscollectionofdelinquentsolidwastechargestotaling$237,054.Of thisamount,theCityisprojectedtorealizeFranchiseFee,AB939andlatechargerevenuestotaling approximately$36,260,withthebalanceof$200,795beingforwardedtoRepublicServices.The $36,260 to be realized by the City is already reflected in the adopted fiscal year 2014-15 budget. City of Chula VistaPage 3 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0374, Item#: 18. ONGOING FISCAL IMPACT Thereisnoongoingfiscalimpact.Thedelinquentsolidwastechargeswillultimatelyberecovered via tax bill or property lien release payments. ATTACHMENTS None Staff Contact: Tiffany Allen City of Chula VistaPage 4 of 4Printed on 7/17/2014 powered by Legistar™ RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ASSESSING CERTAIN DELINQUENT SOLID WASTE SERVICE CHARGES AS RECORDED LIENS UPON THE RESPECTIVE PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL FOR COLLECTION WHEREAS, in November 1998, the City Council amended Municipal Code Section 8.24.180 to eliminate suspension of solid waste service for nonpayment; and WHEREAS, to ensure that all residents pay their fair share of the costs of this program the ordinance allows for delinquent solid waste service charges to be assessed as recorded liens upon the affected properties and ultimately placed on the property tax bills for collection; and WHEREAS, Section 8.24.180 requires that, once solid waste fees become more than ten owners and occupants; and WHEREAS, the Section further requires that, if an owner or occupant is delinquent on payment of a solid waste bill for a period of 90 days, the account shall be assigned to the City for schedule, lien procedure and associated costs and administration fees, prior to setting the matter for hearing to consider a lien; and WHEREAS, the Section provides that, if a solid waste service charge is not paid within 15 days after the final notice of delinquency, the matter may be set for a public hearing, at least seven calendar days after the 15-day period, following notification to the property owners; and WHEREAS, the account status and property ownership of these accounts have been verified by both Republic Services (formerly Allied Waste Services) and City staff; and WHEREAS, these property owners have been notified of their delinquencies through a series of past due notices sent by Republic Services, until they were ultimately submitted to the City for collection; and WHEREAS, staff has notified the property owners of the public hearing and these owners were asked to pay their delinquent solid waste service charges prior to transmittal of the delinquent account list to the County to avoid a lien being placed on their property; and WHEREAS, staff is recommending that the City Council approve the final list of delinquent solid waste service accounts as submitted, and that these charges be forwarded to the County and assessed as recorded liens on the respective parcels of land and ultimately placed on the next regular tax bill for collection; Resolution No. Page 2 WHEREAS, the City Council has held the requisite public hearing and considered the delinquent accounts together with any objections or protests presented by interested parties; and WHEREAS, at the conclusion of the hearing, the City Council approved the delinquency and amount owed on the accounts as submitted. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it: (1) has considered assessing certain delinquent solid waste service charges, as detailed in the final list presented to the City Council for its consideration of this matter, as recorded liens on the affected properties; (2) has heard and overruled any and all protests or objections presented at the public hearing on this matter; and (3) approves, with respect to the delinquent account list submitted to the City Council and on file in the City Finance Department, assessing delinquent solid waste service charges as recorded liens upon the respective parcels of land and the placement of such delinquent charges as special assessments on the next corresponding regular tax bills, unless cleared prior to transmittal of the delinquent account list to the County. Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Finance Director/TreasurerCity Attorney i-.*mom . CRY of CHULA VISTA Finance Department Collections Unit Delinquent Trash Accounts With Notice Public Hearing Sent July 0, 2014 Account No. Parcel loo. Balance Due 788702 5711331200 $333.60 213134 5712230300 $323.06 228699 5712230300 $302.59 76807 5712631000 $316.32 216111 6426003100 5811.46 195965 5957603600 5126.97 143742 597fr'4130 $163.94 23549 6232 1 14030 $261.05 233845 6231720700 $100-86 Accounts: 828 Total Due: $209,810.72 Page 22 of 2