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November 12, 2024
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 Tax Bill for Collection by the County Treasurer-Tax Collector
Report Number: 24-0277
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 resolut ion 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.
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 , safeguard the City’s interest in s olid waste 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 timeli er basis, and ensure responsible parties meet their solid waste service charge payment obligations.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (C EQA) 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 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
Background
City residences and places of business benefit from weekly collection of solid waste. Accordingly, per Chula Vista Municipal Code (CVMC) Chapter 8.24, the collection of solid waste is a mandatory service and shall not be discontinued or suspended. Through a franchise agreement with the City of Chula Vista, Republic Services manages the collection, transport, processing and disposal of solid and organic waste, and recyclables in a safe, sanitary, and aesthetically acceptable manner.
CVMC Section 8.24.180 allows delinquent solid waste service charges and associated fees to be assessed as recorded liens upon the affected properties and ultimately placed on the County property tax bills on those parcels for collection by the County Treasurer -Tax Collector. Staff submits accounts to City Council for approval at a public hearing on a biannual basis.
Statistics & Performance
In May 2024, City Council approved 698 delinquent accounts with an aggregate value of $ 281,000 to be submitted to the County Assessor for placement of property liens on their respective parcels. Since the May 2024 action, staff has identified 1,412 delinquent accounts totaling $412,780 being submitted to City Council for approval. The listing of accounts is available to the public at the Finance Department.
In Fiscal Year 2023-24, $424,000 delinquent solid waste service charge fees were placed on the County property tax rolls, $368,000 has been collected, resulting in an 87% successful collection rate. In August 2024, $315,752 was placed on the County property tax rolls, this is a combination of the delinquent accounts approved in public hearings held in December 2023 and May 2024. Delinquent solid waste service charge fees placed on the County property tax rolls in August, are included in property tax bills received in September and are due in two installments, the first is due on November 1 and second is due on February 1.
Collection Process
Leading up to this public hearing, staff put into effect an informative process, in -line with Municipal Code requirements and collections best practices, to impose the recording of property liens upon affected parcels.
Property owners have been notified of their delinquencies through a series of past -due notices sent by Republic Services.
City staff notified property owners of the public hearing via public hearing notice letters, requesting them to pay the delinquent charges prior to transmittal of their delinquent account to the County Treasurer -Tax Collector to avoid a lien being placed on their property. Staff also published a public hearing notice in a locally circulated newspaper. Account status and property ownership have been verified by Republic Services staff and City staff through a third-party consultant, Spicer Consulting Services.
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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 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 this resolution supports the collection of delinquent solid waste serv ice charges through the County property tax roll collection process. Collection of delinquent charges in the amount of $ 315,752 should occur in Fiscal Year 2025. A portion of this amount will be realized by the City as Franchise Fees, AB939 fees and related delinquent fee revenues.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this action. 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 the current fiscal year.
ATTACHMENTS
None.
Staff Contact: Jimmy Vasquez, Revenue Manager
Sarah Schoen, Director of Finance/ Treasurer