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HomeMy WebLinkAbout05-20-2014 C9 Collection of Delinquent Code Enforcement FinesCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Derek Johnson, Community Development Director Prepared By: Joseph Lease, Chief Building Official SUBJECT: RESOLUTION AUTHORIZING THE COLLECTION OF DELINQUENT CODE ENFORCEMENT FINES RECOMMENDATION Adopt a resolution authorizing the collection of delinquent code enforcement fines by the San Luis Obispo County Assessor by means of special assessments on the secured property tax role. DISCUSSION The Building & Safety Division enforces building, housing, zoning, stormwater and property maintenance provisions contained in the San Luis Obispo Municipal Code through its Code Enforcement Neighborhood Wellness Programs. When violations are confirmed a Notice of Violation is issued to the property owner describing the violation(s) and providing a time period for correction. This is often preceded by an effort to contact the property owner to discuss the violation(s) and obtain voluntary compliance. When the initial Notice of Violation is not effective in gaining compliance an Administrative Citation may be issued pursuant to SLOMC Chapter 1.24. Fines associated with Administrative Citations range from $50, $100, and $200 per violation for the first, second and third citations, respectively, issued for property maintenance related violations. For other violations of the Municipal Code the fines are $100, $200, and $500 for the first, second and third citations, respectively. Each day a violation exists is considered a separate and distinct violation; therefore fines may be assessed on a daily basis for continuing violations beyond the third citation or in very delinquent or serious cases (ref: SLOMC 1.24.050 D). Code Enforcement Administrative Citation fines are assessed to property owners who fail to correct violations after being informed of them by the receipt of a Notice of Violation. Such fines are only assessed after a property owner has had an opportunity to correct the violation or appeal the notice. In addition, once an Administrative Citation is issued the owner is afforded another opportunity to appeal. Unpaid fines become delinquent after 60 days and under the City’s charter authority, and Government Code sections 53069.4, and 38773.5, unpaid fines may be collected by a special assessment pursuant to SLOMC Section 1.24.140 (Attachment 1). Special assessments require certification of the amount of the fines by the City Council. The proposed Resolution authorizes the San Luis Obispo County Assessor to assess the amounts due on delinquent fines as special tax assessments against the properties listed. This is the first attempt by the Community Development Department to utilize the provisions contained in Section 1.24.140 for special May 20, 2014 C9 - 1 Collection of Delinquent Code Enforcement Fines Page 2 assessments. In the past, unpaid fines were referred to the Finance Department for billing and collection and the recovery rate has been relatively low. Each property owner has been sent a Notice of Proposed Special Assessment 20 days prior to the hearing, which notifies them of the time and date of the Council Meeting when the assessment is to be considered and providing them an opportunity to pay the delinquent fines prior to the hearing. The Community Development Department utilized the Finance Department’s payment and billing records to identify those fines that were outstanding. Each case was then reviewed for accuracy, proper notice and service, and the completion of any appeal submitted prior to inclusion in the resolution. The outstanding fines in five cases were dismissed due to some type of defect in the notice or service, or due to a change of ownership. CONCURRENCES This process is consistent with the procedure prescribed in Municipal Code Section 1.24.140. FISCAL IMPACT Projected revenue from the collection of delinquent fines by the County Assessor for Fiscal Year 2014-15 is expected to be $2,750.00. ALTERNATIVES Do not adopt the resolution and continue to forward unpaid fines to a collection agency. This is not recommended as it typically does not result in fines being paid in an amount to cover the fine, but more importantly placing liens does have the potential effect of causing the correction of persistent violations as owners typically do will want the lien cleared and pay the fines in addition to addressing the violation. ATTACHMENTS 1. SLOMC 1.24.040 2. Recommended Resolution C9 - 2 ATTACHMENT 1 1.24.140 Collection of unpaid fines. [Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Drawing Tools tab to change the formatting of the pull quote text box.] A. City Remedies. The city, at its discretion, may pursue any and all legal, equitable, and administrative remedies for the collection of unpaid civil administrative fines. 1. Remedies Cumulative. Pursuit of one remedy does not preclude the pursuit of any other remedies until the total fines owed by a person under this chapter have been collected. 2. Refusal to Issue Permits. A city department may refuse to accept an application for a city permit or license or to refuse to issue, extend, or renew to any person, who has unpaid delinquent fines, liens, or assessments, any city permit, license, or other city approval pertaining to the property that is the subject of a notice of violation and/or an unpaid administrative citation. 3. Suspension of Issued Permits. Notwithstanding any other provision of the code, any permit, license, or any type of land use approval issued by the city to a person who has unpaid administrative citations totaling five hundred dollars or more which remain delinquent for thirty days or longer may be suspended by the department which issued the permit or other entitlement. The suspension becomes effective ten days after the date the notice of the suspension is placed by the issuing department in the United States mail, postage prepaid, addressed to the person, and continues until the administrative delinquency is paid in full. The person may request an appeal or review hearing pursuant to the specific permit, license, or other city approval procedures or ordinance if such a request is filed before the ten-day period ends. 4. Criminal Remedies. The city attorney, at his or her discretion, may also issue a criminal citation or complaint (infraction or misdemeanor) to any person for a code violation when the applicable fine has not been paid. B. Violations Constitute a Public Nuisance. The director may pursue the remedies described in this section whether or not the city is pursuing any other action to terminate an ongoing code violation that was the basis for an administrative citation or to otherwise abate the violation or sanction the property owner. To compel code compliance, the city may also seek to collect assessed fines by means of a nuisance abatement lien or special C9 - 3 ATTACHMENT 1 assessment against the property where a property related violation occurred in accordance with the procedures in Government Code Sections 38773.1 and 38773.5. C. Lien Conditions. To recover any delinquent administrative fines as a lien or special assessment on real property, the following conditions must be met: 1. The director must submit to and receive approval from the city council for a resolution certifying the amounts of the liens and special assessments sought to be collected from each property owner; and 2. The total amount of the delinquent fine against the property owner must be delinquent for sixty days or more. D. Lien Collections. The director is authorized to take any steps necessary to enforce collection of the lien or special assessment, including but not limited to the following: 1. Request the county recorder to record a notice of any lien or special assessment certified by resolution of the city council. 2. Request the county tax collector on behalf of the city to collect any special assessments certified by resolution of the city council. E. Notice of Lien Collection Procedures. All administrative citations shall contain a notice that unpaid fines are subject to the assessment and lien collection procedures of this chapter. This notice shall satisfy the notice requirements of Government Code Sections 38773.1 and 38773.5 when an administrative citation is served on the person. In addition, the director shall by first class mail send notice to each property owner at least ten days before the city council considers the resolution to certify the amounts of the liens and special assessments stating the date, time, and location of the meeting. The lien or special assessment shall be imposed on the date the administrative citation for the code violation is issued to the responsible person and shall become effective upon the recording of a notice of lien or special assessment by the County Recorder. F. Contesting Certification of a Lien. A person may contest the amount or the validity of any lien or special assessment for a civil fine at the public hearing when the city council considers the resolution to certify the liens or assessments. Such contests shall be limited to the issue of the amount or validity of the lien or assessment and may not consider whether the underlying code violation occurred. Pursuit of such a contest by a person is C9 - 4 ATTACHMENT 1 necessary to exhaust the administrative remedies concerning a legal challenge to the validity of any such lien or special assessment. (Ord. 1576 § 1 (part), 2012) C9 - 5 R ______ RESOLUTION NO. _____ (20xx Series) A RESOLUTION OF THE CITY OF SAN LUIS OBISPO AUTHORIZING THE SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT ADMINISTRATIVE FINES AS SPECIAL ASSESSMENTS AGAINST THE PROPERTIES WHEREAS, Government Code Section 53069.4(a) authorizes the City to adopt an ordinance that governs the imposition, enforcement, collection and administrative review of administrative fines arising out of violations of the Municipal Code; and WHEREAS, Pursuant to Government Code Section 53069.4(a), the City adopted Chapter 1.24 of the Municipal Code, which has been subsequently amended; and WHEREAS, Section 1.24.140 of the Municipal Code provides that the City may request that the County Assessor collect, on behalf of the City, any administrative fines which are more than 60 days delinquent, and which are certified by the city Council as special assessments; and WHEREAS, Pursuant to Government Code Section 38773.5 and Section 1.24.140E of the Municipal Code notice has been served on each owner listed below notifying them of the date, time and place of the public hearing and affording the opportunity to contest the amount or validity of the special assessment; and WHEREAS, The City Council of San Luis Obispo finds that all of the fine amounts for the referenced properties listed below are at least 60 days delinquent. NOW, THEREFORE, BE IT RESOLVED that the City Council of San Luis Obispo hereby authorizes the San Luis Obispo County Assessor to assess the amounts due on delinquent accounts as special assessments against the properties listed below. Name of Property Owner Assessor’s Parcel No. Property Address Amount Magdalena R. Bascos 004-532-013 1154 Atascadero St, SLO, CA $350.00 Maynard V. Lowe Jr 052-492-001 647 Cuesta Dr., SLO, CA $150.00 Joan D. & Daryl D. Hill 052-082-008 1327 E. Foothill Blvd, SLO, CA $500.00 2885 South Higuera St., LLC 053-021-029 2885 Higuera S., SLO, CA $400.00 Jack Heaslet 053-501-030 921 Isabella Way, SLO, CA $100.00 Peter Burtness 004-782-067 2675 Johnson Ave., SLO, CA $200.00 John Rourke Tre Etal 052-092-001 110 Orange Dr., SLO, CA $850.00 C9 - 6 Resolution No. _____ (20xx Series) Page 2 Regan M. & Shelley Candelario 004-781-009 1284 Sydney St, SLO, CA $50.00 John Rourke Tre Etal 052-301-004 159 Tassajara N Dr., SLO, CA $50.00 John Rourke Tre Etal 052-301-004 159 Tassajara N Dr., SLO, CA $100.00 Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 20xx. ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Anthony Mejia City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney C9 - 7 Page intentionally left blank. C9 - 8 y x?i tl .IVEi:) MAY 2 0 2014 Community Development Department 919 Palm Street, San Luis Obispo, CA 93401, Ph. (805) 781 -7180, Fax (805) 781 -7109 Website: http:// www. slocity. org/ communitydevelopment lbuildingsafety.asp AGENDA CORRESPONDENCE INTEROFFICE MEMORANDUM' DATE: May 20, 2014 TO: Mayor and Council FROM: Derek Johnson, Director of Community Development BY: Joseph Lease, Chief Building Official VIA: Katie Lichtig, City Manager RE: May 20, 2014 Council Agenda Item C9 - Revision to Resolution Authorizing the Collection of Delinquent Code Enforcement Fines Subsequent to the publication of the Council Agenda, the following four property owners have paid their delinquent code enforcement fines: Joan D. & Daryl D. Hill Jack Heaslet Peter Burtness Regan M. & Shelley Candelario Therefore, we have revised the Resolution by removing their names and properties from the list included therein. The Revised Resolution is attached for your consideration. RESOLUTION NO. (20xx Series) A RESOLUTION OF THE CITY OF SAN LUIS OBISPO AUTHORIZING THE SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT ADMINISTRATIVE FINES AS SPECIAL ASSESSMENTS AGAINST THE PROPERTIES WHEREAS, Government Code Section 53069.4(a) authorizes the City to adopt an ordinance that governs the imposition, enforcement, collection and administrative review of administrative fines arising out of violations of the Municipal Code; and WHEREAS, Pursuant to Government Code Section 53069.4(a), the City adopted Chapter 1.24 of the Municipal Code, which has been subsequently amended; and WHEREAS, Section 1.24.140 of the Municipal Code provides that the City may request that the County Assessor collect, on behalf of the City, any administrative fines which are more than 60 days delinquent, and which are certified by the city Council as special assessments; and WHEREAS, Pursuant to Government Code Section 38773.5 and Section 1.24.140E of the Municipal Code notice has been served on each owner listed below notifying them of the date, time and place of the public hearing and affording the opportunity to contest the amount or validity of the special assessment; and WHEREAS, The City Council of San Luis Obispo finds that all of the fine amounts for the referenced properties listed below are at least 60 days delinquent. NOW, THEREFORE, BE IT RESOLVED that the City Council of San Luis Obispo hereby authorizes the San Luis Obispo County Assessor to assess the amounts due on delinquent accounts as special assessments against the properties listed below. Name of Property Owner Assessor's Parcel No. Property Address Amount _ Magdalena R. Bascos 004 -532 -013 1154 Atascadero St, $350.00 052- 492 -001 SLO, CA Maynard V. Lowe Jr 647 Cuesta Dr., SLO, $150.00 CA 2885 South Higuera St., LLC _ 053- 021 -029 2885 Higuera S., SLO, $400.00 CA John Rourke Tre Etal 052- 092 -001 110 Orange Dr., SLO, $850.00 052- 301 -004 CA $50.00 John Rourke Tre Etal 159 Tassajara N Dr., SLO, CA John Rourke Tre Etal 052- 301 -004 159 Tassajara N Dr., $100.00 i SLO, CA 0 Resolution No. (20xx Series) Page 2 Upon motion of _, seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of Mayor Jan Marx ATTEST: Anthony Mejia City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney 20xx.