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December 5, 2023
ITEM TITLE
Sewer Service: Assess Delinquent Sewer 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: 23-0318
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
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
Conduct the public hearing and adopt a resolution assessing ce rtain delinquent sewer 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.
SUMMARY
To enhance collection efforts an d safeguard the City’s interest in sewer service charges and related delinquent fees and ensure that collection efforts are directed toward the responsible property owner, the Finance Department is recommending the approval of placing 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 sewer service payment obligations.
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 activit y consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment . T herefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
City residents and places of business benefit from the use of the City’s wastewater system. Through Title 13 of the Chula Vista Municipal Code (“CVMC”), the City regulates sewer construction, sewer use and industrial wastewater discharge; to provide for equitable distribution of the City’s costs and to provide procedures for complying with wastewater discharge requirements placed upon the City through interagency agreement and by state and federal regulatory bodies.
CVMC Section 13.14.150 allows delinquent sewer service charges to be assessed as recorded liens upon the affected properties and ultimately placed upon the county property tax bills on that parcel for collection by the County Treasurer-Tax Collector. The Municipal Code states that upon notification of the property owners, a public hearing is set for sewer service accounts which are over 60 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 resolutio n 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.
The last time a property lien resolution for delinquent sewer service charges was submitted to and approved by the City Council was in August of this year . At that time, 195 sewer accounts valued at $ 333,000 were approved. In accordance with the execution 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 our water authority partners, third party consultants, and cross -departmental staff to put together an effective and informative approach, which is in-line with the Municipal Code and collections best practices to impose the recording of property liens upon affected parcels. Staff has identified and submitted 214 delinquent accounts valued at $ 67,323 to the City for collection through the lien process. The account status and property ownership on these accounts have been verified by 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 the Finance Department. Additionally, the City notified property owners of the public hearing via public hearing notice letters, where they were asked to pay their delinquent sewer service charges prior to 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 will create payment arrangements as needed and 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 P a g e | 3
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 sewer 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 Poli tical 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 sewer charges totaling $67,323. All expenses associated with this action are funded by the City’s sewer funds and all sewer service charges collected as a result of this action will be deposited into the City’s sewer funds.
ONGOING FISCAL IMPACT
There is no o ngoing fiscal impact resulting from this action. Sewer service charges and related delinquent fees referred with this resolution will ultimately be recovered via county proper ty tax bills or property tax bills or property lien release payments within this fiscal year.
ATTACHMENTS
None.
Staff Contact: Jimmy Vasquez, Revenue Manager
Sarah Schoen, Director of Finance/ Treasurer