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Home My WebLink About2010/05/04 Item 14 CITY COUNCIL AGENDA STATEMENT ~~ CITY OF (HUlA VISTA MAY 4, 2010 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 REVIEWED BY: DIRECTOR OF FINANCE/TREASUREW~ CITY MANAGER ~ ASSISTANT CITY ~:NAGER CTf 4/5THS VOTE: YES D NO 0 SUBMITTED BY: SUMiVIARY 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 O\^iller in the event of a change in o\^illership, staff is recommending approval 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 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 l'viAY 4, 2010 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 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 December 2009, City Council approved 191 delinquent accounts valued at $67,200 to be placed on the property tax bill for collection. Staff recently identified 687 accounts totaling $285,800 as being over 60 days delinquent and through preliminary collection efforts, 43 I accounts have been resolved, and the remaining 256 accounts valued at $95,300 are 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 MAY 4,2010 ItemR Page 3 of3 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 po stings. 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. CURRENT FISCAL IMPACT By placing delinquent sewer service charges on the property ovmer's regular tax bill, the City realized approximately $549,000 in additional sewer fund revenues for Fiscal Year 2008/2009. From this action alone, the City should realize approximately $95,300 in revenues. ONGOING FISCAL IMPACT From this process, the City should realize approximately $550,000 in revenues for Fiscal Year 2009/2010. Prepared by: Nadine Mandery, Treasury A1anager, Finance Department 14-3 RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHOLA 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, 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; 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 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. 14-4 Resolution No. 2010- Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista that it: (I) conducts the public hearing to consider assessing certain 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 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 .r~' -', . .,-----\C/) I .: .' , \;.' / . ~ ( QV\ ''1LA' /.'/ (2.r~art ./Mi~sfeJ~ . \: . Cluttom'eY J\AttorneylFINAL RESOS\201Q\05 04 IO\Delinquent Sew~r Service Charges DOC 14-5 ~(~ ~ _....:0__ == OlYQf CHULA VISTA FINANCE DEPARTMENT COLLECTIONS UNIT 05/04/20 I 0 Accounts with Notice of Public Hearing Sent Account # 38807004 67908601 683058016 68721403 39656900 39656607 74413408 39662602 37626603 65157005 67729805 39657402 64234201 368214015 36843403 36613001 ] 414098010 43716609 43716203 43721805 67521006 68123805 64529002 62634201 43556604 37018601 61533103 62336603 47527804 753314023 39031802 62407803 24023403 24227409 46547006 366502033 623210014 60535805 Parcel # 5690431000 5691704500 5693811400 5742810300 5663005300 5663005500 6193504400 5661103700 5661011000 5733822200 5735110300 5735110300 5733103200 5651922300 5652501200 5650900100 5754910500 5751720700 5751730100 5752312300 5733521300 5693111700 5685120300 5722820400 5753031000 5670431800 5721410200 5722131100 6396200800 6233323100 5690800500 5722530200 5932101400 5932920800 6397104900 5650802100 5722010100 5671021900 Balance Due $ 198.56 $ 784.43 $ 225.11 $ 483.88 $ 319.58 $ 437.16 $ 229.20 $ 828.75 $ 176.71 $ 132.19 $ 371.36 $ 591.44 $ 379.03 $ 221.75 $ 119.06 $ 159.99 $ 126.18 $ 204.73 $ 254.86 $ 1,665.30 $ 255.90 $ 317.89 $ 475.24 $ 203.04 $ 172.84 $ 165.29 $ 116.14 $ 754.49 $ 630.18 $ 193.77 $ 232.02 $ 275.36 $ 359.43 $ 1,098.75 $ 278.55 $ 358.67 $ 229.82 $ 910.41 .1.Je WI. -It: { '( ~/y/l 0 fl/,4 r '1 20/0 SEWER 32913805 5650310400 $ 454.73 757822011 5233121700 $ 309.50 75780203 6233122200 $ 476.71 75779008 6233122500 $ 118.89 34911402 5711020200 $ 408.12 349090012 5711020800 $ 293.62 349066014 5711320500 $ 105.43 360258031 5712622000 $ 485.51 360254035 571262200 $ 269.94 757438013 6233410800 $ 843.01 39209807 5703124300 $ 274.48 68147406 5693021100 $ 401.36 74881005 6194301000 $ 249.36 435342013 5753220200 $ 127.53 412075010 62003 11800 $ 172.84 66543401 5691420300 $ 507.15 665494025 5691410200 $ 429.16 38005802 5660202200 $ 769.16 36658206 5651100500 $ 318.06 32959203 5650521000 $ 367.07 366206012 5650901800 $ 343.39 623130012 5722010900 $ 342.70 62307802 5722021400 $ 104.58 62609802 5723100900 $ 135.09 36619400 5650901500 $ 886.22 483442014 6392321400 $ 614.11 64745003 5730620900 $ 187.94 64535403 5685110400 $ 1,582.14 43758604 5752410400 $ 861.89 43759400 5752410600 $ 297.20 39607004 5663201201 $ 508.55 39047407 5690600400 $ 399.83 45424607 5751002100 $ 391.18 46135804 5750500300 $ 150.15 46143403 5750501000 $ 595.55 37341004 5652010800 $ 269.56 37215802 56520 II 000 $ 135.09 62160608 5721620400 $ 177.42 62421803 5722520100 $ 709.36 667502015 5692512100 $ 187.83 675078014 5733511900 $ 420.22 66561407 5691310200 $ 270.99 250324012 5933401200 $ 133.24 250300015 5933401500 $ 375.07 612082013 5720520300 $ 147.43 62124600 5721720500 $ 402.90 . 368258021 5651921100 $ 243.44 47506206 6392002600 $ 284.82 667106012 5692410100 $ 684.57 665318011 5691501400 $ 400.00 63025801 5683000800 $ 636.57 63026201 5683000700 $ 238.46 67941004 5691706300 $ 1,212.95 2 38454601 5680421700 $ 268.09 64217001 5733021400 $ 154.47 69128602 5740700200 $ 336.28 63419807 5730101200 $ 2,169.99 46737404 5743201400 $ 139.33 42453007 5753420300 $ 411.96 43528606 5753120700 $ 421.25 37313802 5652101500 $ 415.71 37309802 5652100100 $ 165.29 37319405 5652700600 $ 115.97 60716202 5682620200 $ 530.42 621410014 5721721700 $ 44103 479090010 6392210500 $ 276.80 42525403 5753130100 $ 469.79 41643800 5754501500 $ 104.88 41412204 5754911200 $ 347.15 752394021 6193423300 $ 398.77 75428603 6233000700 $ 322.51 403276014 6232900800 $ 186.33 66909405 5693631300 $ 225.69 34753003 57] 1210300 $ 154.08 35812205 5711121900 $ 346.14 68349007 5693811700 $ 510.18 447570022 6391010300 $ 433.40 68723807 5742816100 $ 176.71 69211806 5742311100 $ 616.09 636406016 5732312300 $ 195.35 40337801 6232803800 $ 336.92 40331409 6232904100 $ 183.30 47018608 5743302000 $ 370.95 42458016 5753660400 $ 277.01 42323205 6391303400 $ 195.06 42322402 6391303600 $ 183.95 40352209 6232721700 $ 310.16 34721003 5710721900 $ 149.03 362]7808 57] 2720400 $ 376.64 41359405 6202520600 $ 118.66 40919409 6202830500 $ 210.59 651614013 5733821100 $ 165.29 68906202 5750310100 $ 135.09 75552409 6233113200 $ 475.26 68507409 5741401800 $ 2,046.88 75410607 6233201500 $ 136.21 65730202 5734900800 $ 256.74 435146014 5752000200 $ 329.08 39707004 5661220300 $ 205.79 39632600 5663004600 $ 379.72 40342204 6243501200 $ 151.65 32941001 5650521600 $ 256.40 60527804 5671020900 $ 861.36 364346014 5711210800 $ 481.32 23632603 5932621800 $ 157.74 236294012 5932711400 $ 437.92 3 23630202 5932711200 $ 489.93 41952602 6393912100 $ 357.21 40730208 6203602700 $ 328.33 454078015 6390730500 $ 260.45 68710606 5744100700 $ 599.08 47315405 6395921700 $ 368.97 467294012 5743530600 $ 198.96 47025002 6390510500 $ 337.10 473 1 1804 6395910200 $ 254.56 47130202 6394501300 $ 210.07 67133002 5732220200 $ 241.59 67131401 5732220600 , $ 210.59 63619011 5731403200 $ 472.65 68540607 5741202100 $ 172.84 423116040 5754220800 $ 281.22 419690012 5754820300 $ 580.94 445514024 5752120400 $ 354.44 44545401 5752721000 $ 795.46 44545009 5753630100 $ 413.57 42546201 5753620200 $ 448.4 7 49815808 6393620600 $ 390.23 40834602 6200431800 $ 283.11 41905404 6396600200 $ 252.80 47031005 6390430100 $ 367.01 470242010 6390510700 $ 516.40 445146011 6392720100 $ 538.73 42043807 6396413300 $ 154.4 7 42111004 6391302600 $ 209.63 42247802 6391511800 $ 265.30 360506015 5712920400 $ 562.70 332274026 5651520800 $ 144.65 49025808 6393810800 $ 276.71 t.> 49025408 6393810700 $ 429.33 490206012 6394110600 $ 671.64 498162011 6393620700 $ 416.13 413470011 6202621200 $ 283.11 41341806 6202610700 $ 192.87 413402012 6202610900 $ 447.72 60905804 5672503000 $ 597.06 60907807 5672503100 $ 945.49 41305003 6201702700 $ 432.48 41309002 6201701700 $ 104.42 49063008 6394141000 $ 369.65 40914208 6202911400 $ 903.47 41015403 6203030400 $ 390.86 745102010 6193503800 $ 328.70 744138014 6193503800 $ 69504 4 75141002 6193702800 $ 269.94 40907406 6202810700 $ 462.70 413574014 6202621600 $ 309.92 41125400 6202731000 $ 193.46 60729009 5682611500 $ 402.27 60561006 5671400700 $ 274.42 66558602 5691201200 $ 493.47 42507806 5752712000 $ 730.46 744274010 6193601300 $ 299.48 404094018 6200770100 $ 1,421.73 40713404 6203502800 $ 359.58 39911201 5703801600 $ 331.31 39915203 5703800600 $ 488.67 40261804 6203300400 $ 124.56 39220604 5703121600 $ 267.89 46134203 5750810200 $ 331.72 669254012 5693411200 $ 326.51 64712609 5730610400 $ 418.71 69553803 5921501300 $ 134.34 69545403 5921503900 $ 148.65 69561002 6390104500 $ 272.94 69561805 6390104300 $ 233.24 64312209 5734401700 $ 233.24 23606203 5932610300 $ 454.73 23850209 5933020800 $ 200.00 46145402 5743002600 $ 218.14 483286010 6395202100 $ 158.33 40328205 6232904900 $ 172.94 40326202 6232901200 $ 208.84 65151404 5733420400 $ 247.37 38215806 5662502400 $ 239.93 63244608 5684111600 $ 887.72 69608602 5744002100 $ 115.41 420658010 6396303100 $ 277.51 24608207 5933501021 $ 709.57 24642605 5933500966 $ 441.06 68127002 5693111500 $ 227.87 68523002 5741500600 $ 479.80 68527006 5741601500 $ 304.27 74841605 5752220900 $ 578.22 66973409 5693730800 $ 271.44 647394013 5730622000 $ 428.13 36040606 5712630400 $ 382.34 36038206 5712631000 $ 301.73 32906602 5650510700 $ 243.04 349626018 5712230800 $ 673.09 237 ACCOUNTS $91,468.34 5