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HomeMy WebLinkAbout2009/03/24 Item 15CITY COUNCIL AGENDA STATEMENT '• •v~, cmr of '~CHULAVISTA MARCH 24, 2009, Item ITEM TITLE: PUBLIC HEARING FOR THE PROPOSED ASSESSMENT OF CERTAIN DELINQUENT SOLID WASTE SERVICE CHARGES AS RECORDED LIENS UPON THE RESPECTNE 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 SOLID WASTE SERVICE CHARGES AS RECORDED LIENS UPON THE RESPECTNE PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER ~ /~ REVIEWED BY: CITY MANAGER ASSISTANT CITY NAGER ~7~ 4/STHS VOTE: YES ^ NO ^X SUMMARY In order to adequately protect the City's interest in delinquent solid waste service chazges and ensure that collection efforts aze 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. Adoption of this resolution will enhance the collection process for delinquent solid waste service chazges 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 regulaz basis since mid- 2001.. 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 15=1 MARCH 24, 2009, Item (5 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 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 shaze of the costs of this program, the ordinance allows delinquent solid waste 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 solid waste service accounts that aze 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 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 chazged to the property owners on the next regulaz property tax bill. As these amounts aze collected, the monies aze remitted to Allied Waste Services less the City's Franchise Fees, AB939 fees and late chazges. Because chazges can only be submitted for placement on the property tax bills once a yeaz 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 chazges. In cases where properties aze sold or transferred, assessing liens midyear holds the correct parties responsible for the delinquent chazges. In cases where property owners choose to refinance their mortgages, the midyeaz liens will ensure the City 7eceiving payment in a more timely manner as the delinquent chazges would be paid through escrow during the refmancing process. In December 2008, City Council approved 1,172 delinquent accounts valued at $161,300 to be placed on the property tax bills for collection. Since then, Allied Waste Services has identified and submitted an additional 2,889 delinquent accounts valued at over $287,700 to the city for collection. Through the City's preliminazy collection efforts, 1,863 accounts have been resolved, and the remaining 1,026 accounts valued at $149,700 aze now being submitted (listing available at the Finance Department). The account status and property ownership on these accounts have been verified by both Allied Waste 15-2 MARCH 24, 2009, Item ~5 Page 3 of 3 and City staff. While many of these delinquent accounts have gone through the lien process before as they continue to remain unpaid, the total number of delinquent accounts being submitted for the lien process continues to climb. These property owners were notified of their delinquencies through a series of past due notices sent by Allied Waste until they were ultimately submitted to the City for collection. City staff sent out past due letters within the past 60 days, and two weeks ago, these property owners were notified of the public hearing and were asked to pay their delinquent solid waste service chazges prior to transmittal of the delinquent account list to the County 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 and payment arrangements have been set up as needed. Staff will continue to update this list as payments are received and accounts are 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 solid waste accounts as submitted, and that these chazges be forwazded to the County and assessed as recorded liens on the respective parcels of land and ultimately placed on the next regulaz 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 using the property tax bill as the ultimate collection method for delinquent solid waste service chazges, the City realized a total of approximately $95,000 in Franchise Fees, AB939 Fees and late charges for Fiscal Yeaz 2007/2008. From this action alone, the City should realize approximately $28,400 in revenues from the total $149,700 collected, and the balance of $121,300 would be forwazded to Allied Waste Services. Prepared by: Nadine Mandery, Treasury Manager, Finance Department 15-3 RESOLUTION N0.2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ASSESSING CERTAIN DELINQUENT SOLID WASTE SERVICE CHARGES AS RECORDED LIENS UPON THE RESPECTIVE 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 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 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 solid waste service accounts that are over ninety 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 are charged to the property owners on the next regular property tax bill; and WHEREAS, as these amounts are collected, the monies are remitted to Allied Waste Services less the City's Franchise Fees, AB939 fees and late charges; and WHEREAS, in December 2008, City Council approved 1,172 delinquent accounts valued at $161,300 to be placed on the property tax bills for collection; and WHEREAS, since then, Allied Waste Services has identified and submitted an additional 2,889 delinquent accounts valued at over $287,700 to the city for collection; and WHEREAS, through the City's preliminary collection efforts, 1,486 accounts have been resolved, and the remaining. 1,403 accounts valued at $136,100 are now being submitted (listing available at the Finance Department); and 15-4 Resolution No. 2009- Page 2 WHEREAS, the account status and property ownership on these accounts have been verified by both Allied Waste and City staff; and WHEREAS, while many of these delinquent accounts have gone through the lien process before as they continue to remain unpaid, the total number of delinquent accounts being submitted for the lien process continues to climb; and WHEREAS, these property owners were notified of their delinquencies through a series of past due notices sent by Allied Waste until they were ultimately submitted to the City for collection; and WHEREAS, City staff sent out past due letters within the past 60 days, and two weeks ago, these property owners were notified of the public hearing and were asked to pay their delinquent solid waste service charges prior to transmittal of the delinquent account list to the County to avoid a lien being placed on their property; and WHEREAS, City staff has been working with Atlied Waste to resolve any customer disputes as they arise and payment arrangements have been set up as needed; and WHEREAS, staff will continue to update this list as payments are received and accounts are cleared; and 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 solid waste accounts as submitted, and that these chazges be forwarded to the County and assessed as recorded 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 assesses certain delinquent solid waste service charges as recorded liens upon the respective owner occupied pazcels of land and approves placement of those delinquent chazges on the next regular tax bill. Presented by Maria Kachadoorian Director of Finance 15-5 Approved as to form by