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HomeMy WebLinkAbout2006/12/12 Item 16 COUNCIL AGENDA STATEMENT Item 10 Meeting Date 12/12/06 ITEM TITLE: PUBLIC HEARING: Regarding the Proposed Assessment of Certain Delinquent Sewer Service Charges as Recorded Liens Upon the Respective Owner Occupied Parcels of Land and Placement of Delinquent Charges on the Next Regular Tax Bill for Collection REVIEWED BY: RESOLUTION 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 Director of FinancefTreasure~ City Manager { (4/5ths Vote: Yes _NoL) SUBMITTED BY: In order to adequately protect the City's interest in delinquent sewer service charges and ensure that collection efforts are directed towards the responsible property owner in the event of a change in ownership, staff is recommending approval of liens against affected properties as a preliminary action to replacing the delinquencies on the property tax rolls if they remain unpaid. Adoption of this resolution will enhance the collection process for delinquent sewer service charges by ensuring that the correct property owners are charged and that payments will be received on a timely basis. This is the identical process approved by City Council since August 1998. RECOMMENDATION: That Council open the public hearing to consider assessing delinquent sewer service charges as recorded liens on the affected properties, consider all testimony and adopt the resolution overruling all protests and assessing these charges as liens upon the respective owner occupied parcels of land. BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable. DISCUSSION: The 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. The ordinance states that upon notification of the property owners, a public hearing is set for sewer service accounts which are over sixty days delinquent. At the hearing, the City Council considers the delinquent accounts together with any objections or protests by interested parties. At the conclusion of the hearing, the City Council, may either approve the delinquency and amount owed on the accounts as submitted or as modified or corrected by the City Council. Lastly, the City 16-1 Page 2, Item 10 Meeting Date 12/12/06 Council adopts a resolution assessing such amounts as recorded liens upon the respective parcels of land, and the amounts are charged to the property owners on the next regular property tax bill. Because charges can only be submitted for placement on the property tax bills once a year in August, staff is recommending assessing liens on the affected properties midyear as to better ensure the City's chances for collection. If the City were to address these delinquent charges only once a year in August, the effectiveness of using the property tax bill as a means of collection would be significantly reduced as the owners of record in August would not necessarily be the people responsible for the delinquent charges. In cases where the properties are sold or transferred, assessing liens midyear holds the correct parties responsible for the delinquent charges. In cases where the property owners choose to refinance their mortgages, the midyear liens would ensure the City receiving payments in a timely manner as the delinquent charges would be paid through escrow during the refinancing process. In July 2006, City Council approved liens for 113 delinquent sewer service accounts valued at $48,200 to be forwarded to the County for collection on the next regular property tax bill. Staff recently identified 334 owner occupied accounts totaling $98,500 as being over 60 days delinquent and through preliminary collection efforts, 128 accounts have been resolved, and the remaining 206 accounts valued at $69,800 are now being submitted (listing available at the Finance Department). Many of these property owners have gone through this lien process previously as they continue to leave their sewer service accounts unpaid. These property owners have been notified of their delinquencies within the last 60 days, and two weeks ago, they were notified of the public hearing and were asked again to pay their delinquent sewer service charges to avoid a lien being placed on their property. Payment arrangements will be set up as needed, and staff will continue to update this list as payments are received and accounts are cleared. A final list will be submitted to the City Council for consideration on the day of the public hearing in order to reflect the most current payment postings. Staff is recommending that the City Council approve the final list of delinquent sewer accounts as submitted, and that these charges be forwarded to the County and assessed as liens on the respective owner occupied parcels of land and ultimately placed on the next regular tax bill for collection. DECISION MAKER CONFLICTS: Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the properties that are subject to this action. 16-2 Page 3, Item I to Meeting Date 12/12/06 FISCAL IMPACT: By placing delinquent sewer service charges on the proPerty owner's regular tax bill, $215,000 in additional sewer fund revenues was collected in FY05-06. From this action, the City should realize approximately $70,000 in revenues. 16-3 RESOLUTION NO. 2006- 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 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, the ordinance states that upon notification of the property owners, a public hearing is set for sewer service accounts which are over sixty days delinquent; and WHEREAS, at the hearing, the City Council considers the delinquent accounts together with any objections or protests by interested parties; and WHEREAS, at the conclusion of the hearing, the City Council may either approve the delinquency and amount owed on the accounts as submitted or as modified or corrected by the City Council; and WHEREAS, many of these property owners have gone through this lien process previously as they continue to leave their sewer service accounts unpaid; and WHEREAS, these property owners have been notified of their delinquencies within the last sixty days, were notified 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 accounts, as submitted, and that these charges be forwarded to the County and assessed as liens on the respective owner occupied parcels of land and ultimately placed on the next regular tax bill for collection. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby: (1) conduct the public hearing to consider assessing delinquent solid waste service charges as liens on the affected properties; (2) ovemlle any and all protests or objections presented at the public hearing; and (3) approve, with respect to the delinquent account list 16-4 T Resolution No. Page 2 submitted to the City Council and on file in the City Finance Department, assessing delinquent solid waste service charges as liens upon the respective parcels ofland 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 O;>unty. Presented by Approved as to form by Maria Kachadoorian Director of Finance J:\Attomey\RESO\FINANCE\Sewer Delinguency 12.12.06.DOC 16-5