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November 12, 2024
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 Tax Bill for Collection by the County Treasurer-Tax Collector
Report Number: 24-0276
Location: No specific geographic location
Department: Finance
G.C. § 84308: No
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) 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 certain 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
The Finance Department is recommending the 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. This enhances collections efforts, safeguards the City’s interest in sewer service charges and related delinquent fees, and ensures that collection efforts are directed toward the responsible property owner . 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 activity consists of a government fiscal/ P a g e | 2
administrative activity which does not result in a physical change in the environ ment. 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
Background
City residents and places of business benefit from the use of the City’s wastewater system. The City ensures an equitable distribution of the costs of complying with wastewater discharge requirements placed upon the City through interagency agreements and by state and federal regulatory bodies.
Chula Vista Municipal Code (CVMC) section 13.14.150 allows delinquent sewer service charges and associated fees to be assessed as recorded liens upon the affected properties and ultimately placed upon the County property tax bills on those parcels for collection by the County Treasurer-Tax Collector. Staff submits the listing of accounts to City Council for approval at a public hearing on a biannual basis.
Statistics & Performance
In May 2024, City Council approved 153 delinquent accounts with an aggregate value of $ 62,500 to be recorded as liens. These accounts were in addition to the 176 delinquent accounts with aggregate value of $53,622 approved by the City Council in December 2023. Of these 329 total delinquent accounts approved by the City Council for collection via property tax billing, 108 were resolved and 221 in the amount of $84,450 were submitted to the County Treasurer-Tax Collector in August 2024. Delinquent sewer service charge fees placed on the County property tax rolls in August, are included in property tax bills issued in September 2024 and are due in two installments, the first is due on November 1, 2024, and second is due on February 1, 2025.
Since the May 2024 action, staff iden tified 1,142 accounts totaling $ 2,097,000 as being over 60 days delinquent. Through preliminary collection efforts, 906 accounts have been resolved, and the remaining 236 delinquent accounts value d at $113,468 are now submitted to City Council for approval . The listing of accounts is available to the public at the Finance Department.
Collections Process
Staff execute an equitable process, through an in formative approach, consistent with CVMC requirements and collections best practices, to impose the recording of property liens upon affected parcels . Property owners have been notified of the delinquencies through a series of past -due notices sent by the Finance Department.
For accounts remain ing over 60 days delinquent, staff notifies property owners of the public hearing via mailed notices, requesting them to pay the delinquent charges prior to transmittal of the delinquent account to the County to avoid a lien being placed on the property and eventual collection through property taxe s.
Account status and property ownership is verified by Staff through a third-party, Spicer Consulting Services.
Staff also publishes a public hearing notice in a locally circulated newspaper.
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At the public hearing, staff submit a lien list to City Council , containing a list of accounts for related parcels and the most up to date delinquent amounts for consideration, together with any objections or protests by interested parties, of approving the placement of property liens. Staff accept payments and continue to create payment arrangements and work with customers during the public hearing and leading up to the lien recording date, to avoid submitting accounts resolved following the public hearing.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdi ngs 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 this resolution supports the collection of delinquent sewer se rvice charges through the County property tax roll collection process. Collection of delinquent charges in the amount of $544,700 should occur during fiscal year 2024-25. All expenses associated with this action are funded by the City’s sewer funds and all sewer service charges collected because of this action will be deposited into the City’s sewer funds.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this action. Sewer 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 the current fiscal year.
ATTACHMENTS
None.
Staff Contact: Jimmy Vasquez, Revenue Manager
Sarah Schoen, Director of Finance/ Treasurer