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11. Delinquent Sanitation Accounts and Placement of LiensFile #: 3377 Claremont City Council Agenda Report TO: TARA SCHULTZ, CITY MANAGER FROM: ADAM PIRRIE, FINANCE DIRECTOR DATE: JUNE 23, 2020 SUBJECT: Item No: 11. Reviewed by: City Manager: TS Finance Director: AP ADOPTION OF A RESOLUTION APPROVING THE REVISED DELINQUENT SANITATION ACCOUNT REPORT OF JUNE 23, 2020 AND ORDERING THE PLACEMENT OF LIENS UPON REAL PROPERTY FOR THE UNPAID SANITATION AND SEWER MAINTENANCE FEES REPORTED DELINQUENT SUMMARY Claremont Municipal Code Section 8.08.160 allows for the collection of delinquent sanitation utility service fees by placing a lien or special assessment against the respective parcels of land for which the service was provided and for which fees remain unpaid. RECOMMENDATION Staff recommends that the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, APPROVING THE REVISED DELINQUENT SANITATION ACCOUNT REPORT OF JUNE 23, 2020, ORDERING THE PLACEMENT OF LIENS UPON REAL PROPERTY FOR THE UNPAID SANITATION AND SEWER MAINTENANCE FEES REPORTED DELINQUENT. ALTERNATIVES TO RECOMMENDATION In addition to the staff recommendation, there are the following alternatives: A. Request further information. B. Take no action. FINANCIAL REVIEW The Sanitation and Sewer funds are self-supporting enterprise activities. A resolution authorizing the CLAREMONT Page 1 of 4 Printed on 6/18/2020 placement of a special assessment on property tax bills as a method of collection for delinquent, unpaid debts for services assures that households and businesses receiving service pay for the service. As of the publication date of this report, staff has identified 224 accounts with delinquent amounts outstanding on their sanitation bills. The total amount outstanding for sanitation and sewer service is $110,979. The costs to research this issue, prepare documentation and complete this report are estimated to be $700. These costs are in staff time and are included in the operating budget of the Financial Services Department. ANALYSIS All residents and business operators receiving sanitation and sewer services provided by the City are billed for such services. Sanitation utility bills cover charges for sanitation services (refuse pick-up and street sweeping) and sewer maintenance. Bills are mailed quarterly to residential customers and monthly to commercial customers. Notices were sent on May 7, 2020 and May 21, 2020 to those property owners with outstanding balances that had not been paid in more than 180 days. Despite the notices, 224 accounts remain delinquent (refer to Exhibit 1 of the attached Resolution). The number of delinquent accounts for the last four years is shown below: DETAILS 2017 2018 2019 2020 Number of delinquent accounts 211 208 220 224 presented for City Council action Dollar value of accounts $104,605 $98,753 $109,858 $110,979 presented for City Council action Amount placed on property tax $86,248 $86,586 $93,355 Will occur bill * August 2020 Actual amount recovered the $86,248 $82,737 $83,229 Will occur in following year from placement of 2020-21 delinquent amount on property tax bill * The amount placed on the property tax bill was less than the City Council approved because customers paid their bills after City Council action but prior to sending delinquent accounts to the County. Due the financial stress COVID-19 may have caused, the City provided residents with the option to make payment arrangements that allow for the payment of delinquent balances over an extended period in order to avoid the placement of a lien. As of the publication date of this report, 38 residents have taken advantage of this option and are currently submitting payments to reduce their delinquent balance. Outstanding balances for these property owners will not be sent to the County for the placement of a direct assessment on their property tax bills provided the property owners continue to make payments on their outstanding balances. California Health and Safety Code Section 5470-5474.10 and Claremont Municipal Code Section CLAREMONT Page 2 of 4 Printed on 6/18/2020 8.08.160 allows for the collection of delinquent sanitation and sewer fees through the placement of delinquent amounts on the property tax bills of affected property owners. Upon adoption of the resolution authorizing the placement of delinquent sanitation and sewer fees on the property tax rolls, staff will send to the Los Angeles County Auditor -Controller a listing of properties and the applicable amounts of the delinquent fees to be added to the property tax bills. Collection of the delinquent amounts will take place during the next fiscal year and remitted to the City as property tax bills are paid. RELATIONSHIP TO CITY PLANNING DOCUMENTS Staff has evaluated the agenda item in relationship to the City's strategic and visioning documents and finds the following: Council Priorities - This item relates to the Council Priority Goal entitled "Maintain financial stability". General Plan - This item relates to General Plan Implementation Measure 1-16: Maintain funding of the City's Enterprise Funds reserves, sufficient to sustain desired operations and equipment replacement, as part of the City's annual budget process. 2019-20 Budget - This item meets the Financial Services Department Work Plan Goal FS -1: Provide administrative support to the City Council, City Manager, and all operating departments on a daily and long-range planning basis. CEQA REVIEW This item is not subject to environmental review under the California Environmental Quality Act (CEQA). Under CEQA Guidelines Section 15378(b)(5), continued administrative activities and organizational activities that will not result in a direct or indirect physical change in the environment are not CEQA projects. Moreover, under CEQA Guidelines Section 15378(b)(4) government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment are not CEQA projects. The adoption of a resolution authorizing the placement of liens on properties with delinquent sanitation accounts is an organizational activity of the government which involves fiscal activities but does not commit to any specific project; therefore, this item is not a CEQA project. Even if it was determined to be a CEQA project, pursuant to CEQA Guidelines Section 15061(b)(3), CEQA does not apply to this item because there is no potential for causing a significant effect on the environment. The adoption of a resolution authorizing the placement of liens on properties with delinquent sanitation accounts will not have a significant effect on the environment because the action will not result in or lead to a physical change in Claremont. Therefore, no additional environmental review is needed at this time. PUBLIC NOTICE PROCESS Notices were mailed on May 7, 2020 and May 21, 2020 to those property owners whose accounts were delinquent. The notices informed property owners that if their payments were not received by June 1, 2020, the Claremont Courier would publish a notice that includes the sanitation service addresses and delinquent balances. The notice also informed property owners that payments on delinquent accounts not received by June 15, 2020 would be subject to City Council action involving the placement of a property lien for delinquent charges and recording fees. CLAREMONT Page 3 of 4 Printed on 6/18/2020 In addition, the May 21, 2020 notice informed those with delinquent accounts that a public hearing would be held June 23, 2020. At the hearing, property owners may present objections or protests. California Health and Safety Code Sections 5470-5474.10 require that such notices be published in a newspaper of general circulation that is printed and published within the City. The notice of public hearing was published in the Claremont Courier on June 5, June 12, and June 19, 2020. This item has also been noticed through the regular agenda notification process. Due to the current health orders related to the COVID-19 pandemic, parts of the City's regular agenda distribution process have been suspended as public review copies cannot be placed at their regular locations due to facility closures, or limited access. The agenda and this staff report are available on the City's website. If you desire a copy, please contact the City Clerk's Office. Submitted by: Adam Pirrie Finance Director Attachment: Resolution Prepared by: Bibi Ameer Accounting Supervisor CLAREMONT Page 4 of 4 Printed on 6/18/2020 ATTACHMENT RESOLUTION NO. 2020- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, APPROVING THE REVISED DELINQUENT SANITATION ACCOUNT REPORT OF JUNE 23, 2020 ORDERING THE PLACEMENT OF LIENS UPON REAL PROPERTY FOR THE UNPAID SANITATION AND SEWER MAINTENANCE FEES REPORTED DELINQUENT WHEREAS, Claremont Municipal Code Section 8.08.160 authorizes that the City shall, by resolution, order that liens be placed on real property for the collection of sanitation and sewer fees reported delinquent by the Financial Services Department pursuant to delinquent sanitation and sewer account reports; and WHEREAS, on the 21th day of May, 2020, the Finance Director gave written notice to all property owners by United States mail, with postage properly affixed, informing them that on Tuesday, June 23, 2020, at 7:00 p.m., or as soon thereafter as possible, a public hearing shall be held to hear the above mentioned report and any objections or protests thereto. Said notice was mailed, as required by Claremont Municipal Code Section 8.08.160, more than fourteen (14) days prior to the hearing. In addition, a list of the delinquent service addresses and outstanding balances was published in the Claremont Courier on June 5, 2020, June 12, 2020, and June 19, 2020, as required by California Health and Safety Code Section 5470-5474.10; and WHEREAS, the City Council, in accordance with and pursuant to Claremont Municipal Code Section 8.08.160, also included in the total amount of liens the costs to release the lien at such time as the lien is removed; and WHEREAS, the City Council considered the revised delinquent sanitation account report of June 23, 2020 and duly considered all protests related thereto. NOW THEREFORE, THE CLAREMONT CITY COUNCIL DOES HEREBY RESOLVE: Section 1. The City Council hereby approves the revised delinquent sanitation account report of June 23, 2020 and determines that each charge is proper and correct. Section 2. That a processing fee and direct assessment per parcel fee due to the Los Angeles County Auditor -Controller will be added to the delinquent fee total. Section 3. That it is hereby ordered that a lien be placed by the Los Angeles County Recorder on the parcels of real property identified on the revised delinquent sanitation account report of June 23, 2020 attached hereto as an Exhibit. Section 4. That, in addition, it is hereby ordered that an electronic file, which includes the delinquent accounts, be sent to the Los Angeles County Auditor Controller's Resolution No. 2020 - Page 2 Office, and that said delinquencies thereby become an addition to the regular property tax bill for each respective parcel of real property. Section 5. The City Clerk shall cause a certified copy of this Resolution to be recorded in the Official Records of the County of Los Angeles. Section 6. The Mayor shall sign this resolution, and the City Clerk shall attest and certify to the passage and adoption thereof. PASSED, APPROVED, AND ADOPTED this 23rd day of June, 2020. Mayor, City of Claremont ATTEST: City Clerk, City of Claremont APPROVED AS TO FORM: City Attor ey, City of Claremont City of Claremont Exhibit Delinquent Sanitation Accounts As of June 18, 2020 Page 1 of 6 Service Location Balance due 1 325 WEST POINT DR 421.58 2 356 WEST POINT DR 468.50 3 424 WEST POINT DR 763.46 4 400 E ARROW HWY 551.26 5 420 E ARROW HWY 411.92 6 142 E GREEN ST 587.66 7 163 E GREEN ST 295.68 8 156 KIRKWOOD 419.83 9 185 E AMERICAN 397.78 10 157 BROWN DR 411.92 11 150 BRYN MAWR 401.04 12 200 E SAN JOSE 411.92 13 230 E ANNAPOLIS 297.35 14 504 CITADEL 260.44 15 612 CITADEL 564.02 16 120 MEREDITH 356.11 17 660 S COLLEGE 417.14 18 790 S COLLEGE 394.12 19 432 CONVERSE 468.50 20 537 CONVERSE 707.53 21 325 SYCAMORE 862.48 22 358 VICTORIA PL 346.64 23 374 SYCAMORE 284.96 24 435 VICTORIA PL 311.92 25 132 BELHAVEN 341.20 26 923 W ARROW HWY 468.50 27 325 W GREEN ST 468.50 28 1118 OAK PARK DR 422.79 29 274 OAK PARK DR 564.02 30 219 CREIGHTON CIR 564.02 31 225 W SAN JOSE 304.88 32 555 W SAN JOSE 564.35 33 679 W SAN JOSE 468.50 34 621 COLGATE PL 411.92 35 633 COLGATE PL 564.02 36 669 COLGATE PL 411.92 37 318 S MOUNTAIN 468.50 38 310 CARLETON 468.50 39 339 CARLETON 351.04 Page 1 of 6 City of Claremont Exhibit Delinquent Sanitation Accounts As of June 18, 2020 40 433 CARLETON 411.92 41 479 CARLETON 411.92 42 630 CARLETON 575.85 43 631 CARLETON 468.50 44 323 GENEVA 564.02 45 356 GENEVA 340.16 46 526 GENEVA 411.92 47 612 DOANE AVE 508.56 48 641 BUCKNELL 356.11 49 453 GUILFORD 849.55 50 541 GUILFORD 710.50 51 624 HENDRIX 763.46 52 240 S INDIAN HILL 446.36 53 373 VIRGINIA RD 304.88 54 318 MARYGROVE 468.50 55 340 MARYGROVE 564.02 56 465 MARYGROVE 763.46 57 416 FORDHAM PL 574.81 58 318 SPRINGFIELD 360.48 59 473 ST BONAVENTURE 468.50 60 833 DRAKE 468.50 61 888 WAYN E ST 468.50 62 118 PRINCETON 468.50 63 141 PRINCETON 411.92 64 284 PRINCETON 395.68 65 192 PIEDMONT 309.50 66 226 PIEDMONT 375.46 67 511 CLARION PL 405.39 68 672 AURORA DR 468.50 69 1662 DENVER 411.92 70 1696 DENVER 411.92 71 1685 ROCKFORD DR 564.02 72 658 BLUEFIELD 304.88 73 320 W 6TH ST 621.38 74 137 W 8TH ST 468.50 75 403 UNIVERSITY CIR 468.50 76 520 W 10TH ST 707.53 77 614 W 10TH ST 587.66 78 789 W 12TH ST 564.02 7A 1585 OXFORD AVE 564.02 Page 2 of 6 City of Claremont Exhibit 1 Delinquent Sanitation Accounts As of June 18, 2020 80 2141 OXFORD AVE 413.00 81 2177 OXFORD AVE 918.39 82 1458 N MOUNTAIN 564.02 83 1848 N MOUNTAIN 411.92 84 446 STANFORD DR 596.47 85 452 STANFORD DR 564.02 86 2206 BRESCIA 564.02 87 225 FERRIS 587.66 88 263 E ALFRED DR 356.11 89 1687 CHATTANOOGA 468.50 90 1736 CHATTANOOGA 371.74 91 528 SCOTTSBLUFF DR 468.50 92 3779 ELM I RA 463.46 93 249 INDEPENDENCE 236.76 94 864 YUBA 552.26 95 927 BRANDEIS 564.02 96 427 FORSYTH 536.64 97 3762 HENDERSON WAY 468.50 98 627 N INDIAN HILL 304.88 99 1905 BROCKPORT CT 405.96 100 1114 HARVARD 468.50 101 1481 LAFAYETTE RD 516.65 102 1558 TULANE RD 706.82 103 842 BUTTE ST 468.50 104 1412 WELLS AVE 417.14 105 810 REED DR 468.50 106 816 REED DR 596.89 107 1422 ASHLAND 468.50 108 531 NORTHWESTERN DR 429.29 109 822 NORTHWESTERN DR 468.50 110 841 NORTHWESTERN DR 468.50 111 1869 MARYHURST DR 468.50 112 1445 NIAGARA 411.92 113 963 AMADOR ST 361.57 114 1555 QUEENS CT 550.98 115 1573 QUEENS CT 468.50 116 983 VANDERBILT 587.66 117 1085 WHITMAN 357.71 118 1122 WHITMAN 364.02 119 985 OTTAWA DR 411.92 Page 3 of 6 City of Claremont Exhibit 1 Delinquent Sanitation Accounts As of June 18, 2020 120 1405 REGIS 587.66 121 839 SCRIPPS DR 417.14 122 913 SCRIPPS DR 340.06 123.916 SCRIPPS DR 468.50 124 940 SCRIPPS DR 564.02 125 755 OCCIDENTAL DR 564.02 126 853 OCCIDENTAL DR 468.50 127 1767 BRIDGEPORT 279.29 128 1865 WHEATON AVE 564.02 129 1913 WHEATON AVE 564.02 130 1681 CLEMSON 411.92 131 895 PROVIDENCE PL 763.46 132 1546 NEWCOMB PL 516.65 133 1907 CHAPMAN RD 564.02 134 812 HURON DR 564.02 135 517 BOWLING GREEN DR 411.92 136 520 BOWLING GREEN DR 513.49 137 544 BOWLING GREEN DR 686.29 138 174 MONTERREY DR 716.05 139 203 MONTERREY DR 706.82 140 777 VALPARAISO 417.14 141 888 SYRACUSE DR 405.39 142 2365 SILVERTREE RD 312.79 143 2381 SILVERTREE RD 468.50 144 595 RIDER CT 550.57 145 421 MIRAMAR 468.50 146 845 ST JOHNS PL 564.02 147 537 REDLANDS 782.88 148 2142 WILKES CT 763.46 149 208 ANDOVER 411.92 150 1252 REIMS ST 411.92 151 1257 FT LEWIS DR 468.50 152 1225 ARMSTRONG 468.50 153 2505 BONNIE BRAE 564.02 154 1268 BRIARCROFT RD 434.02 155 1238 BRIARCROFT RD 552.52 156 1401 MURAL DR 813.14 157 606 MARTIN WAY 452.98 158 177 LIMESTONE 382.96 159 184 LIMESTONE 468.50 Page 4 of 6 City of Claremont Exhibit 1 Delinquent Sanitation Accounts As of June 18, 2020 160 1127 TURNINGBEND DR 468.50 161 564 MT CARMEL 763.46 162 665 MT CARMEL 468.50 163 2425 N SAN DIEGO 763.46 164 411 CHAMPLAIN 468.50 165 2746 MONTICELLO 417.14 166 3310 N MILLS 564.02 167.655 MARSHALL 468.50 168 135 NASSAU 468.50 169 1502 WEBSTER 564.02 170 1575 WEBSTER 411.92 171 136 BLOOM 405.96 172 761 ALAMOSA 293.60 173 3643 PADUA 255.30 174 238 W 10TH 402.37 175 228 W 10TH 402.37 176 743 HARVARD 1,244.66 177 161 BLUE MOUNTAIN WAY 468.50 178 146 E COLLEGE WAY 417.14 179 200 SMITH DR 493.30 180 4010 GAREY 411.92 181 4263 LA JUNTA 763.46 182 1053 MOAB 511.31 183 1033 POMELLO 468.50 184 4250 PIEDMONT MESA 564.02 185 3936 WILLIAMS 411.92 186 1019 AMADOR ST 564.02 187 1312 BRIARCROFT RD 332.29 188 3308 CAMPUS 297.08 189 3428 CAMPUS 455.03 190 3408 DUKE 414.02 191 616 GAYVILLE 411.92 192 1698 MURAL DR 851.04 193 2926 RHODELIA 564.02 194 193 ARLINGTON 311.92 195 415 MIDDLEBURY 544.30 196 1011 FULLER 304.88 197 2057 NEW HAVEN 445.16 198 1274 W BASELINE 707.53 199 4388 VIA PADOVA 575.46 Page 5 of 6 City of Claremont Exhibit 1 Delinquent Sanitation Accounts As of June 18, 2020 200 971 APPALACHIAN 564.02 201 928 HERITAGE CT 468.50 202 755 HURON PL 564.02 203.403 SAN FRANCISCO CT 468.50 204 427 BOSTON DR 411.92 205 816 CITRUS CT 411.92 206 419 BOSTON DR 468.50 207.738 HURON PL 346.64 208 728 HURON PL 564.02 209 715 HURON PL 468.50 210 406 SAN FRANCISCO 468.50 211 722 HURON PL 862.48 212 924 BASELINE RD 596.82 213 830 CITRUS CT 830.16 214 404 SAN FRANCISCO CT 468.50 215 691 HURON PL 596.89 216 690 HURON PL 468.50 217 696 HURON PL 468.50 218 1172 NEWBERRY LN 468.50 219 1050 NEWBERRY LN 575.46 220 4327 NASHOTAH 564.02 221 160 S CLAREMONT BLVD 411.92 222 918 APPALACHIAN 500.62 223 901 APPALACHIAN 957.86 224 11393 APPALACHIAN 346.64 $ 110,979.13 Page 6 of 6