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HomeMy WebLinkAbout2009/03/24 Item 14CITY COUNCIL AGENDA STATEMENT ~~~~~ CITY OF CHULA VISTA MARCH 24, 2009, Item ITEM TITLE: PUBLIC HEARING FOR 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 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 SUBMITTED BY: DIItECTOR OF FINANCE/TREASURER ~~j REVIEWED BY: CITY MANAGER r~ ASSISTANT CITY NAGER ~T 4/STAB VOTE: YES ^ NO ~X SUMMARY In order to adequately protect the City's interest in delinquent sewer service charges and ensure that collection efforts aze 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 chazges by ensuring that the correct property owners aze chazged and that payments will be received on a timely basis. This is the identical process approved by City Council since August 1998. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA 14-1 MARCH 24, 2009, Item~~ Page 2 of 3 Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council conduct the public hearing and adopt the resolution. 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 owners, a public hearing is set for sewer service accounts which aze 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 pazcels of land, and the amounts aze chazged to the property owners on the next regulaz 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 midyeaz as to better ensure the City's chances for collection. If the City were to address these delinquent chazges only once a yeaz 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 aze sold or transferred, assessing liens midyeaz holds the correct parties responsible for the delinquent charges. In cases where the property owners choose to refmance 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 December 2008, City Council approved 166 delinquent accounts valued at $61,400 to be placed on the property tax bill for collection. Staff recently identified 1,275 accounts totaling $543,400 as being over 60 days delinquent and through preliminary collection efforts, 699 accounts have been resolved, and the remaining 576 accounts valued at $217,000 aze now being submitted (listing available at the Finance Department). While many of these property owners have gone through this lien process previously as they continue to leave their sewer service accounts unpaid, the total number of delinquent accounts being submitted for the lien process continues to climb. 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 14-2 MARCH 24, 2009, Item Page 3 of 3 their delinquent sewer service chazges 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 aze received and accounts aze cleazed. 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 forwazded to the County and assessed as liens on the respective owner occupied pazcels 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 aze the subject of this action. FISCAL IMPACT By placing delinquent sewer service chazges on the property owner's regulaz tax bill, the City realized approximately $325,000 in additional sewer fund revenues for Fiscal Yeaz 2007/2008. From this action alone, the City should realize approximately $217,000 in revenues. Prepared by: Nadine Mandery, Treasury Manager, Finance Department 14-3 RESOLUTION NO. 2009- 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, in order to adequately protect the City's interest in delinquent sewer service charges and ensure that collection efforts aze directed towazds 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; 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, the ordinance states that upon notification of the property owners, a public heazing is set for sewer service accounts which aze 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, lastly, the City Council adopts a resolution assessing such amounts as recorded liens upon the respective parcels of land, and the amounts aze chazged to the property owners on the next regulaz property tax bill; and WHEREAS, in December 2008, City Council approved 166 delinquent accounts valued at $61,400 to be placed on the property tax bill for collection; and WHEREAS, staff recently identified 1,275 accounts totaling $543,000 as being over 60 days delinquent and through preliminary collection efforts, 686 accounts have been resolved, and the remaining 589 accounts valued at $302,100 aze now being submitted (listing available at the Finance Department); and WHEREAS, while many of these property owners have gone through this lien process previously as they continue to leave their sewer service accounts unpaid, the total number of delinquent accounts being submitted for the lien process continues to climb; and WHEREAS, 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; and 14-4 Resolution No. 2009- Page 2 WHEREAS, 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; and WHEREAS, staff is recommending that the City Council approve the final list of delinquent sewer accounts as submitted, and that these chazges be forwazded to the County and assessed as liens on the respective. owner occupied parcels of land and ultimately placed on the next regulaz tax bill for collection. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista assesses certain delinquent sewer service chazges as recorded liens upon the respective owner occupied parcels of land and approves placement of those delinquent charges on the next regular tax bill. Presented by Approved as to form by Mazia Kachadoorian Director of Finance 14-5 C. Nliesfe Attorney