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Home My WebLink About2014-07-08 Item 17 City of Chula Vista Staff Report File#:14-0373, Item#: 17. CONSIDERATIONOFTHEPROPOSEDASSESSMENTOFCERTAINDELINQUENTSEWER SERVICECHARGESASRECORDEDLIENSUPONTHERESPECTIVEOWNER-OCCUPIED PARCELSOFLANDANDPLACEMENTOFDELINQUENTCHARGESONTHENEXTREGULAR TAX BILL FOR COLLECTION RESOLUTIONNO.2014-133OFTHECITYCOUNCILOFTHECITYOFCHULAVISTA ASSESSINGCERTAINDELINQUENTSEWERSERVICECHARGESASRECORDEDLIENS UPONTHERESPECTIVEOWNER-OCCUPIEDPARCELSOFLANDANDAPPROVING THEPLACEMENTOFDELINQUENTCHARGESONTHENEXTREGULARTAXBILLFOR COLLECTION RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY InordertoadequatelyprotecttheCity’sinterestindelinquentsewerservicechargesandensurethat collectioneffortsaredirectedtowardtheresponsiblepropertyownerintheeventofachangeof ownership,staffisrecommendingapprovalofliensagainstaffectedpropertiesasapreliminary actiontoplacingthedelinquenciesonthepropertytaxrollsiftheyremainunpaid.Adoptionofthis resolutionwillenhancethecollectionprocessfordelinquentsewerservicechargesbyensuringthat thecorrectpropertyownersarechargedandthatthepaymentswillbereceivedonatimelybasis. This is the identical process approved by the City Council since August 1998. ENVIRONMENTAL REVIEW TheEnvironmentalReviewCoordinatorhasreviewedtheproposedactivityforcompliancewiththe CaliforniaEnvironmentalQualityAct(CEQA)andhasdeterminedthattheactivityisnota“Project” asdefinedunderSection15378(b)(4)oftheStateCEQAGuidelines;therefore,pursuantto Section15060(c)(3)oftheStateCEQAGuidelinestheactivityisnotsubjecttoCEQA.Thus,no environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not applicable DISCUSSION Section13.14.150oftheChulaVistaMunicipalCodeallowsdelinquentsewerservicechargestobe assessedasrecordedliensupontheaffectedproperties,andultimatelyplacedonthepropertytax billsforcollection.Theordinancestatesthatuponnotificationofthepropertyowners,apublic hearingissetforsewerserviceaccountswhichareoversixtydaysdelinquent.Atthehearing,the CityCouncilconsidersthedelinquentaccountstogetherwithanyobjectionsorprotestsbyinterested parties.Attheconclusionofthehearing,theCityCouncilmayeitherapprovethedelinquencyand City of Chula VistaPage 1 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0373, Item#: 17. amountowedontheaccountsassubmitted,orasmodifiedorcorrectedbytheCityCouncil.Lastly, theCityCounciladoptsaresolutionassessingsuchamountsasrecordedliensupontherespective parcelsofland,andtheamountsarechargedtothepropertyownersonthenextregularpropertytax bill. Becausechargescanonlybesubmittedforplacementonthepropertytaxbillsonceeachyearin August,staffisrecommendingassessingliensontheaffectedpropertiesmidyeartobetterensure theCity’schancesforcollection.IftheCityweretoaddressthesedelinquentchargesonlyonce eachyearinAugust,theeffectivenessofusingthepropertytaxbillasameansofcollectionwouldbe significantlyreducedastheownersofrecordinAugustwouldnotnecessarilybethepeople responsibleforthedelinquentcharges.Incaseswherethepropertiesaresoldortransferred, assessingliensmidyearholdsthecorrectpartiesresponsibleforthedelinquentcharges.Incases wherethepropertyownerschoosetorefinancetheirmortgages,themidyearliensensuretheCity’s receiptofpaymentinatimelymanner,asthedelinquentchargesarepaidthroughescrowduringthe refinancing process. InFebruary2014,theCityCouncilapproved188delinquentaccountsvaluedat$146,405tobe placedonpropertytaxbillsforcollection.SincetheFebruary2014action,staffhasidentified505 accountstotaling$259,373asbeingover60daysdelinquent.Throughpreliminarycollectionefforts, 117accountshavebeenresolved,andtheremaining388accountsvaluedat$226,851arenow being submitted (listing available at the Finance Department). Thesepropertyownershavebeennotifiedoftheirdelinquencieswithinthelast60days,andtwo weeksago,theywerenotifiedofthepublichearingandwereagainaskedtopaytheirdelinquent sewerservicechargestoavoidalienbeingplacedontheirproperty.Paymentarrangementswillbe setupasneeded,andstaffwillcontinuetoupdatethislistaspaymentsarereceivedandaccounts arecleared.AfinallistwillbesubmittedtotheCityCouncilforconsiderationonthedayofthepublic hearing in order to reflect the most current payment postings. StaffisrecommendingthattheCityCouncilapprovethefinallistofdelinquentseweraccountsas submitted,andthatthesechargesbeforwardedtotheCountyandassessedasrecordedliensonthe respectiveowneroccupiedparcelsoflandandultimatelyplacedonthenextregulartaxbillfor collection. Delinquency Trends Ratesofdelinquentseweraccountsappeartobestabilizingslightlyabovepre-recessionlevels.The chartbelowillustratestheaveragenumberofdelinquentaccounts(blueline)andtheaveragevalue ofthoseaccounts(redline),onamonthlybasissinceDecember2006.Alsoshownaretheaverage numberofdelinquentaccountsincludedinthepublichearingprocess(greenline)andtheaverage valueoftheaccountsincludedinthepublichearingprocess(purpleline),onamonthlybasisforthe sameperiod.Thegapbetweentheoriginaldelinquentaccountsandthepublichearingaccounts reflectstheeffortsofFinanceDepartmentstafftoresolvedelinquenciespriortothepublichearing process. City of Chula VistaPage 2 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0373, Item#: 17. Chart 1 - Delinquent Sewer 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.Implementingpoliciestoprotect/generate revenues is an objective of City Initiative 1.1.1 - “Implement Fiscal Recovery and Progress Plan.” CURRENT YEAR FISCAL IMPACT Approvaloftheresolutionsupportscollectionofdelinquentsewerservicechargestotaling$226,851 AllexpensesassociatedwiththisactionarebornebytheCity’ssewerfunds;allsewerservice charges collected as a result of this action will be deposited into the City’s sewer funds. ONGOING FISCAL IMPACT Thereisnoongoingfiscalimpact.Thedelinquentsewerchargeswillultimatelyberecoveredviatax bill or property lien release payments. City of Chula VistaPage 3 of 4Printed on 7/17/2014 powered by Legistar™ File#:14-0373, Item#: 17. 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 SEWER SERVICE CHARGES AS RECORDED LIENS UPON THE RESPECTIVE OWNER OCCUPIED PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL FOR COLLECTION WHEREAS, Chula Vista Municipal Code Section 13.14.150 allows delinquent sewer 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 13.14.150 requires the City to hold a public hearing, no sooner than seven days after the sixty-day delinquency period has passed, with advance notice to be mailed to the affected property owners, notifying them that failure to pay the delinquent account will result in a lien upon the property bill and the amount owed will be charged to the property owner on the next regular tax bill; and WHEREAS, City staff has identified certain properties for which the sewer service charges are over sixty days delinquent; and WHEREAS, many of the property owners have gone through this lien process previously as they continue to leave their sewer service accounts unpaid; and WHEREAS, the property owners have been notified of their delinquencies within the last sixty days, were notified of the time and place of the public hearing and were again asked to pay their delinquent sewer service charges to avoid a lien being placed on their property; and WHEREAS, staff is recommending that the City Council approve the final list of delinquent sewer 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; and 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 sewer service charges, as detailed in the final list of delinquent sewer service accounts presented to the City Council for 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 Resolution No. Page 2 delinquent account list submitted to the City Council and on file in the City Finance Department, assessing delinquent sewer 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 Customer Information Total dine 64315503 S320.70 23816602 S907.61 23818204 S434.04 7572607 S370.60 46145403 S205.11 4666 S489.79 65151404 S432-51 65141008 S251.43 65143004 S601.88 63244608 S676.16 46170012 S660.64 6 131 808 S422.49 681 1404 S 880.52 68523002 S478.84 74841 605 S671.05 693 604 S452.41 3205006 S 757.94 355102010 S962.58 35509801 S 17.55 35515501 S655.22 34946606 S491.66 36038206 5 5.66 349602026 S261.49 358 Grand Totals S 2071145.01 Page: