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Home My WebLink About2006/07/25 Item 10 COUNCIL AGENDA STATEMENT , ITEM TITLE: I Item ! 10 Meeting Date July 25, 2006 i PUBLIC HEARING: Regarding the Proposed Ass~ssment of Certain Delinquent Solid Waste Service Charges as Recqrded Liens Upon the Respective Parcels of Land and Placement of Delinquent Charges on the Next Regular Tax Bill for Collection i ~ RESOLUTION No. Approving Delinquent Solid Waste Service Charges to be Assessed as Recorded Liens Upon the Respective Parcels of Land and Authorizing Placement of the Delinquent Charges on the Next Regular Tax Bill Director'of Fin7reasurer t4. frl-vtlL- City Manager rll (4/5ths Vote: Yes _NoLl SUBMITTED BY: REVIEWED BY: In order to adequately protect the City's interest in delinquent solid waste service charges and ensure that collection efforts are directed towards the responsible property owner in the event of a change of 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 pro.~ess for delinquent solid waste service charges by reducing the amount of uncolleCtible losses and ensure that payment will be received on a more timely basis This is the identical process approved by City Council on a regular basis since mid- 2001 RECOMMENDATION: That Council open the public hearing to consider assessing delinquent solid waste service charges as recorded liens on the affected properties, consider all testimony, and adopt the resolution overruling all protests, approving these charges to be assessed as recorded liens upon the respective parcels of land, and authorizing the placement of the delinquent charges on the next regular tax bill. BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable DISCUSSION: In November 1998, City Council amended Municipal Code Section 8.24 to eliminate suspension of solid waste service for nonpayment. To ensure that all residents pay their fair share of the costs of this program, the ordinance allows delinquent solid waste service charges to be assessed as 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 solid waste service accounts that are over ninety 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 10-1 Page 2, Item_ Meeting Date July 25, 2006 Ir) 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 are charged to the property owners on the next regular property tax bill. As these amounts are collected, the monies are remitted to Allied Waste Services less the City's Franchise Fees AB~39 fees and late charges. - In April 2006, City Council approved 865 delinquent accounts valued at $126,900 to be placed on the property tax bills for collection. Since then, Allied Waste Services has identified a'nd submitted' an additional 655 delinquent accounts valued at over $82,500 to the city for collection, Through the City's preliminary collection efforts, 366 accounts have been resolved, and the remaining 289 accounts valued at $35,000 remain outstanding The account status and property ownership on these accounts have been verified by both Allied Waste and City staff Many of these delinquent accounts have gone through the lien process before as they continue to remain unpaid. These property owners were notified of their delinquencies through a series of past due notices sent by Allied 'Waste until th~y were ultimat~ly submitted to the City for co\lection. City staff also sent out a past due letter, and last month, these property owners were notified of the public' hearing and were asked to pay their delinquent s'olid waste service charges prior to the hearing date to avoid a lien being placed on their property City staff has been working with Allied Waste to resolve any customer disputes as they arise arid payment arrangements have been set-up as needed Staff will continue t6 update. the list of delinquencies as payments are received and accounts are cleared. Once all additional payments have been recorded by staff, a final list will be given to'the City Council for review prior to consideration of the proposed resolution on this matter . . Staff is recommending that the City Council approve the final list of delinquent solid waste accounts'as submitted, and that these charges be forwarded to the County and assessed as liens on the respective parcels of land and ultimately placed on the next regular tax bill for collection - CONFLICT OF INTEREST: There is no conflict of interest from this action.' , FISCAL IMPACT: By using the property tax bill as the ultimate collection method for delinquent solid waste service charges, over $273,000 was collected for FY 05-06 These funds were forwarded to Allied Waste SerVices less the city's Franchise Fees, AB939 fees and late charges. The 'City realized approximately $24,800 in Franchise Fees, $6,100 in AB939 fees, and $19,400 in late charges for Py05-06 ' From this action, the City should realize an approximate total of $6,000 in revenues with, $29,000 being forwarded to AII!ed Waste Services. 10-2 RESOLUTION NO 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING DELINQUENT SOLID WASTE SERVICE CHARGES TO BE ASSESSED AS RECORDED LIENS UPON THE RESPECTIVE PARCELS OF LAND AND AUTHORIZING PLACEMENT OF THE DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL WHEREAS, in order to adequately protect the City's interest in delinquent solid waste service charges and ensure that collection efforts are directed towards the responsible property owner in the event of a change of ownership, staff is recommending approval for liens against affected properties as a preliminary action to placing the delinquencies on the property tax rolls if they remain unpaid, and .' WHEREAS, in November 1998, City Council amended Municipal Code Section 8.24 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 delinquent solid waste service charges to be assessed as liens upon the affected properties and ultimately placed on the property tax bills for collection, and WHEREAS, Section 8.24 provides that, upon notification to the property owners, a public hearing may be set for solid waste service accounts that are over ninety days delinquent; and WHEREAS, at the conclusion of the hearing, the City Council, may approve the delinquency and amount owed on the accounts, as submitted or as modified or corrected by the City Council, and adopt a resolution assessing such amounts as liens upon the respective parcels of land, and authorizing placement of the amounts on the next regular property tax bill; and WHEREAS, as these amounts are collected, the monies are remitted to Pacific Waste Services less the City's Franchise Fees, AB939 fees and late charges, and WHEREAS, since April 2006, Pacific Waste Services has identified and submitted 655 delinquent accounts valued at over $82,500 to the City for collection, and WHEREAS, through the City's preliminary collection efforts, 366 accounts have been .resolved, and the remaining 289 accounts valued at $35,000 remain outstanding; and WHEREAS, the account status and property ownership on these accounts have been verified by both Pacific Waste and City staff; and 10-3 .~ WHEREAS, these property owners were notified of their delinquencies through a series of past due notices sent by Pacific Waste until they were ultimately submitted to the City for collection, and WHEREAS, City staff also sent out a past due letter, and last month, these property owners were noti\ied of the public hearing and were asked to pay their delinquent solid waste service charges prior to, the hearing date to avoid a lien being placed ontheir property; and , WHEREAS, City staff has been working with Pacific Waste. to resolve any customer disputes as they arise and payment arrangements have been set up as needed,and WHEREAS. City Council has been provided a final list reflecting all accounts which remain delinquent; and . WHEREAS, staff is recommending that the City Council approve the final list of delinquent solid waste accounts as submitte,d, and that these charges be forwarded to the County and assessed ',as liens on the respective parcels of land and ,ultimately placed on the next regular tax bill for collection, NOW. THEREFORE. BE IT RESOLVED that the City Council of the City of Chula . Vista approves certain delinquent solid waste service chargEis. as reflected on the final delinquency list submitted to the City Council at the public hearing on this matter. to be assessed as recorded liens upon the respective parcels of land and authorizes placement of the delinquent charges on the next regular tax bill Presented by Approved as to form by (. Maria Kachadoorian Director of Finance ", ( J " , '" " \V 10-4 "l