v . 0 03 P a g e | 1
August 8, 2023
ITEM TITLE
Solid Waste Service: Assess Delinquent Solid Waste Service Charges as Recorded Liens Upon the Respective Parcels of Land and Place Delinquent Charges on the Next Regular Property Tax Bill for Collection by the County Treasurer-Tax Collector
Report Number: 23-0176
Location: No specific geographic location.
Department: Finance
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
City Council conduct the public hearing and adopt a resolution assessing certain delinquent solid waste service charges as recorded liens upon the respective parcels of land and placement of delinquent charges on the next regular tax bill for collection by the County Treasurer-Tax Collector. (4/5 Vote Required)
SUMMARY
To enhance collection efforts and safeguard the City’s interest in solid waste service charges and related delinquent fees and ensure that collection efforts are directed toward the responsible property owner, the Finance Department is recommending t he approval of placing property liens against affected parcels as a preliminary action to placing the delinquencies on county property tax rolls if they remain unpaid. Adopting this resolution will reduce uncollectible losses, ensure payments are received on a timelier basis, and ensure responsible parties meet their solid waste service payment obligations. This process has been previously approved by the City Council.
ENVIRONMENTAL REVIEW
The Director of Development Services 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 of the State CEQA Guidelines because the proposed activity consists of a governmental P a g e | 2
fiscal/administrative activity which does not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
City residences and places of business benefit from the weekly collection of solid waste. Accordingly, per Chula Vista Municipal Code (“CVMC”) Section 8.24, the collection of solid waste is a mandatory service and shall not be discontinued or su spended. The City implements an Integrated Solid Waste Management Plan, through its authorized collector, Republic Services, and an associated f ranchise agreement. The City’s management plan effectively controls the storage, collection, transport, processi ng and reuse, disposal or conversion of solid waste, recyclables, and organic waste in a safe, sanitary, and aesthetically acceptable and economical manner. This plan includes all administrative, financial, legal, and operational aspects of solid waste handling.
To assist in collection efforts and ensure all residents and business owners meet their obligations, CVMC Section 8.24.180 allows delinquent solid waste service charges and associated fees to be assessed as recorded liens upon the affected propertie s and ultimately placed on the county property tax bills on that parcel for collection by the County Treasurer -Tax Collector. The municipal code also states that upon notification of the property owners, a public hearing be set for solid waste service accounts that are over 90 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 submitted or as modified or corrected by the City Council. Lastly, the City Council adopts a resolution assessing such amounts as reordered liens upon the respective parcels of land, and the amounts are charged to the property owners on the next regular property tax bill. As these amounts are collected, the monies are remitted to Republic Services, less the City’s Franchise Fees, AB939 Compliance Permit Fee/Household Hazardous Waste and associated delinquent fee charges.
The last time a property lien resolution for delinquent solid waste s ervice charges approved by the City Council was in August 2018. At that time, 1,138 accounts valued at $202,424 were approved. Primarily due to the COVID-19 pandemic, the City has delayed the assessment of delinquent solid waste service charges as recorded liens upon the affected properties. With the end of the COVID -19 emergency and due to the initiation of the collection process described below, City staff is recommending the assessment of recorded liens upon the affected properties as allowed by the Municipal Code Collection Process
In the months leading up to this public hearing, Finance Department staff have worked closely with Republic Services, third party vendors, and cross-departmental staff to put together an effective and informative approach, which is in-line with the Municipal Code and, best practices, to re-establish the annual recording of property liens upon affected parcels. Republic Services and the City have identified and submitted 1,229 delinquent accounts valued at $799,935 to the City for collection through the lien process. The account status P a g e | 3
and property ownership on these accounts have been verified by Republic Services and City staff, through a third-party consultant, Spicer Consulting Services.
These property owners have been notified of their delinquencies through a series of past due notices sent by Republic Services and reviewed and approved by City staff, until they were ultimately submitted to the City for collection through the lien process. Additionally, the City notified property owners of the public hearing via public hearing notice letters sent by certified mail, where they were asked to pay their delinquent solid waste service charges prior t o transmittal of their delinquent account to the County to avoid a lien being placed on their property. City staff also published a public hearing notice to a locally circulated newspaper.
City staff has been working with Republic Services to resolve any c ustomer disputes as they arise and payment arrangements have been set up as needed. Staff will continue to update the delinquent 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 to reflect the most current payment postings as well as leading up to the lien recording submission date, to avoid submitting accounts resolved following the public hearing.
Staff is recommending that the City Council approve the final list of delinquent solid waste service accounts as submitted, and that these charges 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.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of the resolution supports collection of delinquent solid waste charges totaling $799,935. A portion of this amount will be realized by the City as Franchise Fees, AB939 fees and related delinquent fee revenues.
The projected revenues for this action will be reflected in the First Quarter Report for fiscal year 2023 -24 budget.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact. Solid waste service charges and related delinquent fees referred with this resolution will ultimately be recovered via county property tax bills or property lien release payments within this fiscal year.
ATTACHMENTS
None.
Staff Contact: Jimmy Vasquez, Finance Department
Sarah Schoen, Director of Finance/Treasurer