HomeMy WebLinkAbout2006/07/25 Item 9
COUNCIL AGENDA STATEMENT
Item
Meeting Date
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July 25, 2006
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
RESOLUTION Approving Certain Delinquent
Sewer Service Charges to be Assessed as Recorded Liens Upon
the Respective Owner-Occupied Parcels of Land and Authorizing
Placement of the Delinquent Charges on the Next Regular Tax Bill
REVIEWED BY:
.J /,\(L
SUBMITTED ~ Director of FinancefTreasurer r 1r^-
City Manager JI (4/5ths Vote: Yes _NolL)
In order to adequately protect the City's iriterest 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 for the placement of
liens against affected properties as a preliminary action to placing 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 payment be received on a more 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 approving the
delinquency amounts and authorizing placement of the
delinquency charges as recorded liens upon the respective
owner occupied parcels of land.
BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable.
DISCUSSION:
The Chula Vista Municipal Code Section 1314150 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
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Meeting Date July 25, 2006
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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
Council adopts a resolution assessing such amounts as liens upon the respective parcels
of land and the amounts ar,e charged to the property owners on the next regular property
tax bill.
In April ?006, City Council approved liens for 273 delinquent sewer service accounts
valued at $85,700 to be forwarded to the County for collection on the next regular
property tax bill. Staff recently identified an additional 209 owner-occupied parcels with
sewer service accounts over 60 days delinquent. The total delinquency is $72,500
Through preliminary collection efforts, 68 accounts have been resolved, and the
remaining 141 accounts, valued at $57,500, remain delinquent (delinquencies 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, and last month, 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 the delinquency listing as
payments are received and accounts are cleared. ,once all payments are recorded, a
final list will be submitted to the City Council for review prior to the Council consideration
of the proposed resolution on this matter
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 recorded liens on the respective owner-occupied parcels of land and ultimately placed
on the next regular tax bill for collection.'
CONFLICT OF INTEREST:
This is no conflict of interest from this action.
FISCAL IMPACT:
By placing delinquent sewer service charges on the property owner's regular tax bill, over
$211,000 in revenues was realized in FY 05-06 using this collection method. The City
should realize approximately $55,000 in revenues from this action
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RESOLUTION NO 2006-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING CERTAIN DELINQUENT
SEWER SERVICE CHARGES TO BE ASSESSED AS
RECORDED LIENS UPON THE RESPECTIVE OWNER-
OCCUPIED PARCELS OF LAND AND AUTHORIZING
PLACEMENT OF DELINQUENT CHARGES ON THE NEXT
REGULAR TAX BILL
WHEREAS, 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 owners in the event of a change in ownership, staff is recommending approval of
liens against affected properties as a preliminafy action to placing the delinquencies on the
property tax rolls if they remain unpaid, and
WHEREAS, 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, and
WHEREAS, Section 13 14 150 provides that, upon notification to the property
owners, a public hearing may be set for sewer service accounts which are over sixty
days delinquent; and
WHEREAS, at the conclusion of the hearing, the City Council may approve the
delinquency and amount owed on the accounts, as ~ubmitted or as modified or
corrected by the City Council, and adopt a resolution accordingly; and
WHEREAS, staff recently identified 209 owner-occupied accounts, totaling
$72,500, as being over 60 days delinquent; 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, and
last month, 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; and
WHEREAS, through City Staff's collection efforts, certain delinquent accounts
have been resolved and City Staff has presented th'e City Council with a final list,
reflecting those accounts which remain delinquent; 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 recorded liens on the respective owner-occupied parcels of
land and ultimately placed on the next regular tax bill for collection
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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby approves certain delinquent sewer service charges, as reflected on the
final list submitted to the City Council at the public hearing on this matter, to be
assessed as recorded lien~ upon the respective owner-occupied parcels of land and
authorizes placement of the ge1inquent charges on the next regular tax bill.
Presented by
~pm,\ed as to form by
Maria Kachadoorian
Director of Finance
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-ftn MoordU1'
C ty Attorney
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