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HomeMy WebLinkAbout06-06-2017 Item 06 Resolution Authorizing the Collection of Delinquent Code Enforcement Fines Meeting Date: 6/6/2017 FROM: Michael Codron, Community Development Director Prepared By: Anne Schneider, PE, 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 Auditor by means of special assessments on the secured property tax roll. DISCUSSION The Building & Safety Division enforces building, housing, zoning, storm water 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 preceded by an effort to contact the property owner to discuss the violation(s) and obtain voluntary compliance through the issuance of a Notice to Correct. 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 issued to property owners who fail to correct violations within a reasonable time period after issued a Notice of Violation. The property owner is afforded the right to appeal both the Notice of Violation and the Administrative Citation itself. Unpaid fines become delinquent after sixty (60) days and, pursuant to SLOMC Section 1.24.150, Government Code sections 53069.4, and 38773.5, unpaid fines may be collected by a special assessment pursuant (Attachment A). Special assessments require certification of the amount of the fines by the City Council. The proposed Resolution (Attachment B) authorizes the San Luis Obispo County Auditor to assess the amounts due on delinquent fines as special tax assessments against the properties listed. A list of the outstanding fines for each property is attached hereto as Attachment C. Each property owner has been sent two Notices of Proposed Special Assessment ; one 30 days before the hearing and again 10 days prior to the hearing, which notifies them of the time and date of Packet Pg 33 6 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 extensive cross-checking with our tracking spreadsheet and Energov 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. This overall approach authorized by both state law and the City municipal code has been used since 2015 and has proven to be the most effective ways to recover unpaid fines and resolve code issues. CONCURRENCES This process is consistent with the procedure prescribed in Municipal Code Section 1.24.150. ENVIRONMENTAL REVIEW There is no environmental review for this item. FISCAL IMPACT Projected revenue from the collection of delinquent fines by the County Auditor for Fiscal Year 2016-17 is expected to be $13,450. 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 want the lien cleared and pay the fines in addition to addressing the violation. Attachments: a - SLOMC 1.24.150 b - Resolution Collection of Delinquent Code Enf Fines c - Exhibit A to Resolution - List of Properties Packet Pg 34 6 1.24.150 Collection of unpaid fines. 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. A civil administrative fine shall be deemed unpaid the day after the due date set by the administrative citation, or if appealed, the day after the due date set by the hearing officer or applicable board in its decision. If the decision of the hearing officer or applicable board is appealed to, or petition for writ filed with, the superior court, the civil administrative fine shall be deemed unpaid the day after the due date set by the superior court. If the superior court upholds the administrative citation, but fails to set a due date, the fine shall be deemed unpaid on the eleventh day after the superior court decision is mailed. 1. Remedies Cumulative. Pursuit of one remedy does not preclude the pursuit of any other remedies. 2. Refusal to Issue Permits. A city department may refuse to accept an application for a city permit or license or 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 unpaid delinquent fines, liens or assessments. 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. 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 assessment against the property where a property related violation occurred in accordance with the procedures in Government Code Sections 38773.1 and 38773.5. The San Luis Obispo Municipal Code is current through Ordinance 1628, passed February 16, 2016. San Luis Obispo Municipal Code 1.24.150 Collection of unpaid fines.Page 1 of 2 Packet Pg 35 6 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 necessary to exhaust the administrative remedies concerning a legal challenge to the validity of any such lien or special assessment. (Ord. 1625 § 1 (part), 2015) The San Luis Obispo Municipal Code is current through Ordinance 1628, passed February 16, 2016. San Luis Obispo Municipal Code 1.24.150 Collection of unpaid fines.Page 2 of 2 Packet Pg 36 6 R ______ RESOLUTION NO. _____ (2017 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE SAN LUIS OBISPO COUNTY AUDITOR TO ASSESS AMOUNTS DUE ON DELINQUENT ADMINISTRATIVE FINES AS SPECIAL ASSESSMENTS AGAINST THE PROPERTIES PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 53069.4(a) 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 1.24.150 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, 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; and WHEREAS, the property owners responsible for the violations were notified of the violations and received citations and were subsequently notified in writing by a notice mailed May 23, 2017, pursuant to Section 1.24.150 (E) of the Municipal Code of this hearing and their right of appeal. NOW, THEREFORE, BE IT RESOLVED by the City Council of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and incorporated herein by this reference as the findings of the City Council. SECTION 2. Action. The City of San Luis Obispo hereby authorizes the San Luis Obispo County Auditor to assess the amounts due on delinquent accounts as special assessments against the properties listed on the Exhibit A, pursuant to California Government Code 54988, et seq. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2017. Packet Pg 37 6 Resolution No. _____ (2017 Series) Page 2 R ______ ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Pg 38 6 Exhibit A to Resolution No. ______ (2017 Series) List of Properties Name of Property Owner Assessor’s Parcel # Property Address Amount Citation # 1335 Foothill LLC 052-082-035 1335 Foothill $200.00 00006674 Amelia Sinclair 052-093-021 117 Longview $50.00 00008240 Amelia Sinclair 052-093-021 117 Longview $100.00 00008474 Aracely Plateroti 003-511-023 570 Marsh $100.00 00008935 Arthur Fry 052-352-001 4 La Entrada $100.00 00007796 Banez Epitacia C 003-724-009 260 South $50.00 00006183 Burdett John W Living Trust 004-731-013 1171 San Carlos $500.00 00008065 California Coastal Investments LLC 004-581-001 2881 Broad $50.00 00007689 Christopher Nielsen 052-092-017 1274 Bond $100.00 00005955 Concepcion Hernandez 004-581-019 646 Perkins $150.00 00007814 Concepcion Hernandez 004-581-019 646 Perkins $200.00 00008076 Darin Grandfield 003-564-009 1690 Fairview $100.00 00008321 Delta Sigma Phi Frant SLO 052-072-011 244 California $100.00 00007204 Eric Newton, Triad Real Estate 003-523-002 1234 Broad $200.00 00006035 Fiduciary Properties Inc 053-051-047 3566 So. Higuera 205 $100.00 00007165 Fiduciary Properties Inc 053-051-047 3566 So. Higuera 205 $200.00 00008034 Fiduciary Properties Inc 053-051-047 3566 So. Higuera 205 $500.00 00008749 Grand High LLC A CA LLC 052-231-015 470 Grand $100.00 00008806 Grand High LLC A CA LLC 052-231-015 470 Grand $200.00 00008915 Jerry Burch 004-784-009 2505 Johnson $800.00 00006910 Jerry Burch 004-784-009 2505 Johnson $800.00 00007102 Jerry Burch 004-784-009 2505 Johnson $800.00 00007468 Jerry Burch 004-784-009 2505 Johnson $800.00 00007778 Jerry Burch 004-784-009 2505 Johnson $800.00 00008067 Justin Warren 003-656-009 1026 George $100.00 00008186 Justin Warren 003-656-009 1026 George $200.00 00008853 Kinsey Fay 003-737-006 2046 King $100.00 00005924 Kinsey Fay 003-737-006 2046 King $100.00 00006182 Kinsey Fay 003-737-006 2046 King $50.00 00006378 Kinsey Fay 003-737-006 2046 King $200.00 00006379 Kinsey Fay 003-737-006 2046 King $200.00 00006534 Kinsey Fay 003-737-006 2046 King $200.00 00006705 Lee Brazil 003-571-018 1901 Henry #M $400.00 00006919 Mark Alonzo 052-202-021 446 Hathway $50.00 00006884 Matthew Herrera 001-132-018 1575 Phillips $100.00 00007319 Matthew Herrera 001-132-018 1575 Phillips $200.00 00007662 Matthew Herrera 001-132-018 1575 Phillips $500.00 00007948 Matthew Herrera 001-132-018 1575 Phillips $500.00 00008411 Matthew Herrera 001-132-018 1575 Phillips $500.00 00008839 McCapes Family LLC A CA LLC 052-072-002 215 Hathway $50.00 00007953 Mid-State Properties LLC 004-532-005 1228 Atascadero $200.00 00006252 Nevarez Guillermo R Tre 052-234-012 1990 Loomis $50.00 00008618 Olsen Jon C 1996 Trust 410 Grand $50.00 00008570 Packet Pg 39 6 Exhibit A to Resolution No. ______ (2017 Series) List of Properties Pacifica Investments LLC A Ut LLC 052-071-020 158 California $100.00 00006645 Pacifica Investments LLC A Ut LLC 052-071-020 158 California $200.00 00006955 Potts Family Trust 052-092-005 138 Orange $200.00 00005891 Potts Family Trust (Tr 2) 052-091-015 191 Orange $100.00 00008712 Potts Family Trust (Tr 2) 052-091-015 191 Orange $200.00 00006881 Ramesh T & Madhu R Patel 001-142-009 1604 Monterey $50.00 00008309 Regan & Shelley D Candelario 004-781-009 1284 Sydney $50.00 00006303 Regan & Shelley D Candelario 004-781-009 1284 Sydney $100.00 00006440 Regan & Shelley D Candelario 004-781-009 1284 Sydney $200.00 00006686 SLOCA LLC A CA LLC 052-126-026 344 Henderson $50.00 00007979 Snyder Family Survivor's Trust 053-182-029 3191 South Higuera $200.00 00007679 Spade Timothy E Tre ETAL 052-231-008 430 Grand $200.00 00005609 Spade Timothy E Tre ETAL 052-231-008 430 Grand $200.00 00006579 Spade Timothy E Tre ETAL 052-231-008 430 Grand $200.00 00006731 Steve Ferrario 052-081-001 108 Crandall $50.00 00006040 Steve Ferrario 052-081-001 108 Crandall $100.00 00006332 Tank Farm Center LLC A CA LLC 053-251-050 120 Tank Farm $100.00 00008448 Tank Farm Center LLC A CA LLC 053-251-050 120 Tank Farm $200.00 00008929 Warren Justin J 003-656-009 1026 George $100.00 00008855 $13450.00 Packet Pg 40 6