Item 7.1: Assessment of Delinquent
Sewer Service Charges as
Liens on Parcels and Placement on
Property Tax Bills
C I T Y C O U N C I L P U B L I C H E A R I N G
A U G U S T 8 , 2 0 2 3
J I M M Y VA S Q U E Z , R E V E N U E M A N A G E R , F I N A N C E D E PA R T M E N T
A D R I A N D E L R I O , A S S I S TA N T D I R E C TO R , F I N A N C E D E PA R T M E N T
Background Information
The City builds, operates and contracts for public sewers and wastewater facilities, a majority of City residences and places of business benefit from these services and infrastructure Per CVMC Section 13.14.110, the owner or occupant of any parcel which is connected to the City’s sewer system and to a water system maintained by Sweetwater Authority, Otay Water District or the American Water Company shall pay the required fees for a sewer service charge The lien process applies only to Sweetwater Authority customers, who are billed for sewer services by the City. Other sewer customers are billed through their property tax and water bill CVMC Section 13.14.150 outlines payment obligations, billing cycles, proper noticing, penalties for delinquency and the lien process
The lien process ensures responsible parties meet their service payment obligations and payments received on a timelier basis, resulting in a reduction of uncollectible losses
Lien Process Overview
Leading up to this public hearing, Finance staff have worked closely with our water authority partners, third-party consultants and cross-departmental stakeholders to build an informative approach to our lien process
Our approach was initiated by improving the overall collections process:
◦ Additional touchpoints and improved noticing and communication to customers ◦ Dedicated customer support and payment support
◦ Writing-off of uncollectible debt
◦ Application and grant award for delinquent sewer charges ◦ Third-party parcel and account validation
◦ Legal review of noticing and communication
◦ Translated notices and using certified mail
◦ Issuing payment plans
Lien Process Overview (Cont.)
Regular bills, late notice mailings, penalty assessments and public notice publication have been carried out per CVMC Section 13.14.150 leading up to the Public Hearing The submitted accounts for Council to consider have been verified and the most up to date account status is reflected on the lien list
Many accounts have been resolved or granted payment plans since the initial late notices were sent and staff will continue to assist and remove accounts from the lien list through 8/8/23 As of 8/8/23, the lien list provided to City Council has 195 sewer accounts valued at $333k
Customer Service Impact
During the lien process, staff has assistance with account information and explained programs and options to help settle account arrearages
405 accounts valued at $633K are on an active payment plan $877K in AR paid-down since first past due notice from 5/4 $207K in previously applied grant money for lien-eligible accounts $243K in previously written-off receivables for lien-eligible accounts Of the City’s 15,000 sewer customer base; 563 accounts or 3.74%, were sent the initial Public Hearing Notice Letter. 195 accounts or 1.30% remain on the lien list today.
Lien Process Timeline
Recommended Action
Staff recommends City Council conduct the public hearing and adopt a resolution assessing certain delinquent sewer service charges as recorded liens upon the respective parcels of land and placement of those charges on the next regular property tax bill for collection by the County Treasurer-Tax Collector