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Home My WebLink About2007/12/04 Item 13 CITY COUNCIL AGENDA STATEMENT ~f:. CIIT OF ~"'" ,~ CHUlA VISTA DECEMBER 4, 2007, Item~ 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 Ai\!D PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL FOR COLLECTION SUBMITTED BY: REVIEWED BY: RESOLUTION NO. 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 FINAN};};REASURER'-/1'k. CITY MANAGERp~ 4/STHS VOTE: YES D NO 0 BACKGROUND 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 ofland. 13-1 DECEMBER 4, 2007, Item~ Page 2 of3 BOARDS/COMMISSION RECOMMENDATION: 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 ovmers, 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 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 2007, City Council approved liens for 175 delinquent sewer service accounts valued at $81,600 to be forwarded to the County for collection on the next regular property tax bill. Staff recently identified 229 owner occupied accounts totaling $107,000 as being over 60 days delinquent and through preliminary collection efforts, 118 accounts have been resolved, and the remaining III accounts valued at $42,000 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. 13-2 DECEMBER 4,2007, Iteml Page 3 of 3 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 CONFLICT 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 which are the subject of this action. FISCAL IMP ACT By placing delinquent sewer service charges on the property owner's regular tax bill, the City should realize approximately $225.000 in additional sewer fund revenues for FY07- 08. From this action alone, the City should realize approximately $42,000 in revenues. Prepared by: Nadine Alandery. Treasury Manager, Finance Department 13-3 RESOLUTION NO. 2007- 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 by the City Council of the City of Chula Vista that it: (1) conducts the public hearing to consider assessing delinquent sewer service charges as liens on the affected properties; (2) overrules any and all protests or objections presented at the public hearing; and (3) approves, with respect to the delinquent account list 13-4 Resolution No. 2007- Page 2 submitted to the City Council and on file in the City Finance Department, assessing delinquent sewer service charges as 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 Director of Finance J:\Attomey\RESO\SEWER\Delinquent Sewer Service Charges~12-04-07.DOC 13-5 12/03/2007 Customer Information 38806609 68721403 66765804 67170208 67733806 60750608 63646603 72151008 43715005 475426011 74833603 69323002 37011406 60519809 46513405 366442010 651114020 360070019 238094010 39654209 38023802 38651403 649130016 437526010 39263006 39048203 40632207 406306015 45423803 25031604 48309404 43746609 64443002 67941004 37313802 61248209 67161402 403276014 636070024 34753003 69342601 62355407 47018608 47133409 34724603 Total due $ 293.02 $ 536.91 $ 357.57 $ 305.07 $ 278.49 $ 427.64 $ 393.12 $ 357.54 $ 336.53 $ 483.77 $ 180.21 $ 305.28 $ 562.93 $ 356.23 $ 539.45 $ 836.59 $ 264.31 $ 393.77 $ 461.08 $ 250.98 $ 349.74 $ 327.03 $ 403.60 $ 300.76 $ 560.78 $ 339.96 $ 437.60 $ 342.24 $ 468.94 $ 471.85 $ 347.98 $ 364.10 $ 357.65 $ 468.94 $324.16 $ 248.88 $ 304.88 $ 433.42 $ 252.82 $ 147.26 $ 473.39 $ 318.61 $ 413.28 $260.16 $ 201.46 itl3 ~V?- 2~~ ~ ~~-..; ................~~ ~- - -- ut (c.;; [E. II 'WI L~ If II 1~~E~.o .4 ~~~~~~ ~OUNCIL OFfiCE~ ellY OF (HUlA VISTA Finance Department Collections Unit DELINQUENT SEWER Page: 1 of 2 / Customer Iuformatiou 34719403 35811402 657330024 47339801 33214609 60527804 36428602 36420601 23631004 69517808 68710606 45121006 422414010 40637803 41909004 470242010 421074024 419354016 42051807 34738206 34737003 41245804 41307004 75141002 66558602 42507407 40405802 75217405 35871001 63229005 68917401 23818204 63244608 66973407 66962607 48319803 360410020 23649004 23648604 84 Grand Totals Total due $ 201.14 $ 429.82 $ 310.13 $ 398.61 $ 297.09 $ 528.89 $ 233.95 $ 211.18 $ 844.81 $ 318.51 $ 371.84 $ 330.47 $ 677.94 $ 271.35 $ 726.69 $ 487.33 $ 434.30 $ 263.22 $ 397.73 $ 528.32 $ 208.99 $ 943.38 $ 605.07 $ 249.40 $ 422.79 $ 571.17 $.320.25 $ 271.72 $ 242.71 $ 507.94 $ 327.53 $ 461.08 $ 598.02 $ 402.26 $ 483.98 $ 337.24 $ 248.93 $ 360.87 $ 391.12 $ 33,057.75 Page: 2 of 2