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HomeMy WebLinkAboutStaff Report 5.C 05/07/2018Agenda Item #5. DATE: May 7, 2018 TO: Honorable Mayor and Members of the. City Council through City Manager FROM: Leonard Thompson, Fire Chief '7]3' Jessica Power, Fire Marshal SUBJECT: Public Hearing and Resolution Approving Special Assessment Lien in the Amount of $34,293.38 Against the Property Located at 1482 Petaluma Boulevard North and Authorizing Recordation of a Lien and Placement of an Assessment on the Property Tax Roll for Collection. RECOMMENDATION It is recommended that the City Council conduct a public hearing and adopt the attached Resolution Approving Special Assessment Lien in the Amount of $34,293.38 Against the Property Located at 1482 Petaluma Boulevard North and Authorizing Recordation of a Lien and Placement of an Assessment on the Property Tax Roll for Collection. BACKGROUND On December 6, 2010, the City Council amended Chapters 1.10 through 1.16 of the Petaluma Municipal Code. The amendments provided more tools for enforcement of public nuisances and property maintenance regulations within the City. Municipal Code Sections 1. 14.060 and 1. 14.140 allow the City to recover all past -due costs and penalties as a result of enforcement action by imposition of a special assessment on real property. DISCUSSION The attached Notices of Intent to Impose Special Assessments, Notices of Hearing, and Cost Reports describe the debt as it relates to 1482 Petaluma Boulevard North, and on the attached Property Tax Levy Form Detailing Unpaid Debt. This debt is a result of administrative actions taken by staff dating back to 2017. The property owner address is 1478 Petaluma Boulevard North. The hazardous conditions existed at 1482 Petaluma Boulevard North. The APN for the property of 1478 and 1482 Petaluma Boulevard North is 048-142-005. With regard to notice to the property owner, they were issued an Administrative Citation. The Administrative Citation is sent to the Finance Department where additional invoices were sent to the property owner by accounts receivable. Costs incurred by the Fire Department include hazardous waste sampling, testing and clean-up ($12,274), Fire Department staff time ($5,386.07), and Water Department staff time ($393.38). A stipulated agreement that waived the administrative fees and costs with the property owner was signed on June 20, 2017. The property owner did not meet the requirements as listed in the agreement and has the debt outstanding and unpaid. Recently, the property owner received two notices from the City of Petaluma regarding their unpaid debt. The first notice, dated March 9, 2018, demanded payment within 10 days (attachment 2), advising the property owner that the City of Petaluma may seek to impose a special assessment on their property for any unpaid debt. The second notice (attachment 3), dated April 16, 2018, advised the property owner of this hearing and possible action by the City Council. These notices were prepared in accordance with Petaluma Municipal Code section 1.14.130 and are attached for Council review. A notice advising the property owner of 1482 Petaluma Boulevard North the decision of the approved special assessment will be mailed on May 8, 2018. The total amount being sought for special assessment is $34,293.38, the full amount for which the property owner is liable, as they never met the terms of the stipulated agreement and the lower amount therein. Using the current Sonoma County Tax Assessor's Role, staff has verified that the listed property owners still own the property where the violations occurred. FINANCIAL IMPACTS As noted above, there is a potential for recovering up to $34,293.38 of unpaid debt owed to the City of Petaluma. Any money collected will go into the General Fund. The fee charged by the County of Sonoma to enroll the direct charge to the tax roll is 0.85% of the levy. There is also an administrative fee of less than $100. ATTACHMENTS 1. Resolution 2. 10 Day Notices of Intent to Impose Special Assessments dated March 9, 2018 3. Notice of Hearing and Cost Reports dated April 16, 2018 4. Administrative Order After Hearing (if applicable) dated May 8, 2018 5. Stipulated Agreement dated April 19, 2018 2 Attachment 1 RESOLUTION APPROVING SPECIAL ASSESSMENT LIENS IN THE AMOUNT OF $34,293.38 AGAINST THE PROPERTY LOCATED AT 1482 PETALUMA BOULEVARD NORTH WITHIN THE CITY OF PETALUMA FOR COSTS AND PENALTIES FOR VIOLATIONS OF THE PETALUMA MUNICIPAL CODE THAT REMAIN UNPAID BY THE RESPONSIBLE PARTIES AND AUTHORIZING THE RECORDATION OF A LIEN AND PLACEMENT OF AN ASSESSMENT ON THE PROPERTY TAX ROLL FOR COLLECTION. WHEREAS, Petaluma Municipal Code section 1.14.060(B) states that if the amount of any penalty imposed for a violation relating to an affected property has not been satisfied in full within sixty days of the date due and has not been successfully challenged by appeal or in court, the penalty amount may become a special assessment or lien against the affected property, as provided in Section 1.14.140; and WHEREAS, the property owners at 1482 Petaluma Boulevard North signed a stipulation agreement on June 20, 2017, which they have failed to comply with in a timely manner; and WHEREAS, Petaluma Municipal Code section 1.14.060(B) states that if the City elects to make any penalty a special assessment or lien against the affected property, a statement of the amount due, and any additional costs' or expenses that might be recoverable as part of the enforcement action, shall be prepared and submitted to the City Council for confirmation in accordance with the procedures described in Section 1.14.130, such accounting has been done and totals $34, 293.38 for the subject property; and WHEREAS, Petaluma Municipal Code section 1.14.130(A) states in relevant part that if any order authorizes the City to abate a nuisance condition or other code violations, the City official responsible for such abatement shall keep an accounting of the cost of abatement along with any other recoverable costs, and shall render a written report ("the cost report") to the City Council showing the cost of removing and/or abating the nuisance condition and describing the work performed and the cost report shall be agendized as a public hearing item by the City Clerk at a subsequent City Council meeting following the required notice periods; and WHEREAS, Petaluma Municipal Code section 1.14.130(B) requires that at least ten days prior to the submission of the cost report to the City Council, the City Clerk's office or their designee shall cause a copy of the cost report to be mailed to the responsible party and/or to the owner of the property where the nuisance condition existed and if the nuisance concerns real property, a copy of the cost report shall be mailed to the owner(s) at the address shown for such owner(s) on the last tax roll, which such report was mailed the owner on March 9, 2018 at the property; and WHEREAS, Petaluma Municipal Code section 1.14.130(B) requires the City Clerk's office or their designee to also cause a notice of hearing to be mailed to the same person(s) or entity receiving a copy of the cost report and the notice of hearing shall set forth the date, time and location of the City Council meeting at which the cost report shall be submitted to the City Council, which such notice was mailed on April 16, 2018; and WHEREAS Petaluma Municipal Code Section 1.14.140(D) states in relevant part, that any penalty imposed for violations of this code, including any other codes or statutes that have been incorporated into this code, and any costs of enforcement or administration or expenses associated with the abatement of any nuisance levied in accordance with Chapters 1.10 through 1.16, whether imposed or levied judicially or administratively, may become a special assessment against the real property where the nuisance condition(s) existed and the special assessment imposed on real property pursuant to this section may be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure and sale in case of delinquency as are provided for ordinary municipal taxes; and WHEREAS, in accordance with Petaluma Municipal Code section 1.14.130, on May 7, 2018, the Fire Marshal provided to the City Council of Petaluma an itemized report detailing the unpaid debts from the property located at 1482 Petaluma Boulevard North, Petaluma, as a result of administrative enforcement dating back to February 6, 2017, all as shown and set forth on the attached Cost Report and Property Tax Levy Form Detailing Unpaid Debts; and WHEREAS, in accordance with Petaluma Municipal Code sections 1.14 and 1. 16, the property owners have not exercised their rights to appeal the original fines and penalties imposed and the time to file such an appeal has expired; and WHEREAS, in accordance with Petaluma Municipal Code section 1.14.130(B), a cost report and notice of hearing for special assessment was mailed, on April 16, 2018 via U.S. Mail and certified mail, return receipt requested, to the identified property owners at the addresses listed on the most recent Tax Assessor's Role, advising the property owners of the City of Petaluma's intent to impose a special assessment for all outstanding debts that remained after 10 days of said notice; and WHEREAS, at the time and place referred to in said notice, the City Council heard the Fire Marshal's Cost Report, together with any objections raised by the property owners, and the City Council made its recommendations and any modifications it deemed necessary to be included in the final report; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. The Fire Marshal's Cost Report ("the Report"), and each amount and part thereof, is hereby confirmed, and as to the delinquent parcel listed therein, the amount shown for such parcel constitutes a special assessment against the property. 2. In accordance with Petaluma Municipal Code section 1.14.130(D), a copy of this Council Order confirming costs against the responsible party shall be served on the responsible party within ten days of such order in the manner described in Section 1.14.020(B), which states that it shall be served upon the responsible party or owner personally or by United States il mail, first-class postage prepaid, and if by such mail, it shall be sent to the last known address listed on the most recent tax assessor's records; when service is by first-class mail, a copy of the Council Order shall be conspicuously posted at the affected property when reasonably practicable for a period of not less than three calendar days prior to the first date of commencement of the action. 3. In accordance with Petaluma Municipal Code section 1.14.020(C), proof of service of the Council Order confirming costs shall be certified by a written declaration under penalty of perjury executed by the person effecting service, declaring the date, time and manner of service, and the date and place of posing, if applicable and the declaration shall be affixed to a copy of the Council Order and retained by the enforcement officer. 4. In accordance with Petaluma Municipal Code section 1.14.140(D), a notice of any special assessment that is levied on real property shall be given to the owner by certified mail, and shall contain the information set forth in Government Code Section 38773.5(c); and 5. A copy of this Order shall be received by the County Auditor -Controller Treasurer Tax Collector's Office for placement of the special assessment on the real property prior to August 10, 2018 for placement on the 2018 property tax roll, which shall be collected at the same time and in the same manner as ordinary municipal taxes are collected. 5 Attachment 2 a -CITY OF PETALUMA POST OFFICE Box 61 8 5 a PEITALUMA, CA 94953-0061 RE: Notice of intent to impose special assessment on real property located at 1478 Petaluma Boulevard North, Petaluma, CA. Dear Property Owner: This letter shall serve as your notice of the City of Petaluma's intent to impose a special assessment against your property for the following unpaid debts owed: 1. Sampling, testing, and cleanup of hazardous waste related to.a non-pelmitted marijuana grow between February 6, 2017 and February 9, 2017. Total owed is $12,274 I. Administrative Citations 01145 and 01146, issued on March 2, 2017 in the amount of $16,250. Total owed is $16,250. 3. Administrative costs of $5,769.33. Total owed is $5,769.45. The total amount owed to the City of Petaluma is $34,293.45. If payment is not received in full within 10 days. of this letter, the City of Petaluma will commence proceedings to impose a special assessment on your property, pursuant to Section 1. 14.140 of City of Petaluma Municipal Code, ' Fir Department 198 March 9, 2018 David Glass notifying you that the property may be sold after three years by the tax collector for Mayor unpaid delinquent assessments. The tax collector's power of sale shall not be affected by Fax (707) 931-0668 Johnnie Johnson Cbris Albertson Teresa Barrett Te 1478 Petaluma Boulevard North Mille Healy Petaluma, CA 94954 Gabe Kearney d fdi as provided ordinary municipal taxes. All applicable to thlev p y l ll l p Pp thelevy, collection and Dave King Katby Miller By Regular Mail and Certified Mail, Return Receipt Requested Connoibnembers Subject Property: 1478 Petaluma Boulevard North APN: 048-142-005 RE: Notice of intent to impose special assessment on real property located at 1478 Petaluma Boulevard North, Petaluma, CA. Dear Property Owner: This letter shall serve as your notice of the City of Petaluma's intent to impose a special assessment against your property for the following unpaid debts owed: 1. Sampling, testing, and cleanup of hazardous waste related to.a non-pelmitted marijuana grow between February 6, 2017 and February 9, 2017. Total owed is $12,274 I. Administrative Citations 01145 and 01146, issued on March 2, 2017 in the amount of $16,250. Total owed is $16,250. 3. Administrative costs of $5,769.33. Total owed is $5,769.45. The total amount owed to the City of Petaluma is $34,293.45. If payment is not received in full within 10 days. of this letter, the City of Petaluma will commence proceedings to impose a special assessment on your property, pursuant to Section 1. 14.140 of City of Petaluma Municipal Code, ' Fir Department 198 Pursuant to Government Code Section 38773,5(c), the City of Petaluma is hereby Petaluma, CA 94952 notifying you that the property may be sold after three years by the tax collector for Phone (707) 778-4390 unpaid delinquent assessments. The tax collector's power of sale shall not be affected by Fax (707) 931-0668 the failure. of the property owner to receive notice. The assessment may be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure and sale in case of delinquency F1rePrevention .Uureall II English&reet d fdi as provided ordinary municipal taxes. All applicable to thlev p y l ll l p Pp thelevy, collection and Petaluma, CA 94952 Phone (707) 778-4389 Fax (707) 206-6036 0 enforcement of municipal taxes shall be applicable to the special assessment. However, if any real property to which the cost of abatement relates has been transferred or. conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches thereon, prior to the date on which the first installment of the taxes would become delinquent, then the cost of abatement shall not result in a lien against the real property but instead shall be transferred to the unsecured roll for collection. Payment can be made to the following: City of Petaluma Attn: Accounts Receivable 11 English Street Petaluma, CA 94952 Your cooperation with this matter is greatly appreciated. Please do not hesitate to contact me with any further questions or concerns you may have. Thank you. Sincerely, _ Jes ca Power Fire Marshal Cc: Accounts Receivable Attachment 3 a CITY OF PETALUMA POST OFFICE, Box 61 g 5 8 PETALUMA, C.A. 94953-0061 Subject Property: 1482 Petaluma Boulevard North APN: 048-142-005 RE: Notice of Hearing to seek City Council authorization to impose a special assessment for costs and penalties for violations of the Petaluma Municipal Code on real property located at 1482 Petaluma Boulevard North, Petaluma, CA. Dear Property Owner: Pursuant to Petaluma Municipal Code sections 1. 14.060(B) and 1.14.130, this letter shall serve as your notice of the City of Petaluma's intent -to impose a special assessment against your property for the unpaid debts described in the attached Cost Report. The City Council Meeting will be'on the following date, time and location: DATE: May 7, 2018 TIME: 6:45 p.m. LOCATION: City Hall: Council, Chambers 11 English Street Petaluma, CA 94952 If you would like to make a payment before the City Council hearing, payment may be made to the following: Fire Department `D" April 16, 2018 David Glass Mayor Attn: Accounts Receivable Phone (707) 778-4390 Johnnie Johnson Chrls Barrett Albertson TerB Teresa 1478 Petaluma Boulevard North Mike Healy Petaluma, CA 94952 Gabe Kearney Dave King Kathy Miller By Regular Mail and Certified Mail, Return Receipt Requested Councibnembers Subject Property: 1482 Petaluma Boulevard North APN: 048-142-005 RE: Notice of Hearing to seek City Council authorization to impose a special assessment for costs and penalties for violations of the Petaluma Municipal Code on real property located at 1482 Petaluma Boulevard North, Petaluma, CA. Dear Property Owner: Pursuant to Petaluma Municipal Code sections 1. 14.060(B) and 1.14.130, this letter shall serve as your notice of the City of Petaluma's intent -to impose a special assessment against your property for the unpaid debts described in the attached Cost Report. The City Council Meeting will be'on the following date, time and location: DATE: May 7, 2018 TIME: 6:45 p.m. LOCATION: City Hall: Council, Chambers 11 English Street Petaluma, CA 94952 If you would like to make a payment before the City Council hearing, payment may be made to the following: Fire Department `D" Cit of Petaluma y 198 Sheet Petaluma, CA 94952 Attn: Accounts Receivable Phone (707) 778-4390 11 English Street Fav (707) 931-0668 Petaluma, CA 94952 Rre Prevention Bureau 11 English Street Petaluma, CA 94952 Phone (707) 778-4389 Fax (707) 206-6036 Please do not hesitate to contact me with,any further questions or concerns you may have.. Sincerely, Jes, ca Power Fire Marshal Fire Prevention Bureau City of Petaluma Fire Department 707-778-4485 Cc: Finance Division .City Attorney M Cost Report. Pursuant to Petaluma Municipal. Code PMC 1.14.060(B) and 1.14.130'. 1482 Petaluma Boulevard North (APN:.048-1.42-005) Below please find an itemized account of the fines and penalties owed to the City of Petaluma: .1. Sampling, testing, and cleanup of hazardous waste related to a non-pei-pitted marijuana grow between February 6, 2017 and February 9, 2017. Total owed is $12,274 2, Administrative Citations 01145 and 01146, issued on March 2, 2017 in the amount of $16,250. Total owed is $16,250. 3, Administrative costs of $5,769.33, Total owed is $5,769.45. The total amount owed to the City of Petaluma is $34,293.38 K 10 Attachment 4 CITY OF PETALUMA :. POST OFFICE BOX 61 \r s 5 $ PETALVMA, CA 94953-0061 David Glass The total amount owed to the City of Petaluma is $34,293.38.. The City of Petaluma will Mayor May 8, 2018 Cbris Albertson Teresa Barrett Johnnie Johnson Mike Healy 1478 Petaluma Boulevard North GaDaKearney ve Ying g Petaluma, CA 94952 Kathy Miller unpaid delinquent assessments. The tax collector's power of sale shall not be affected by Comrcilnternbers By Regular Mail and Certified Mail, Return Receipt Requested Subject Property: 1482 Petaluma Boulevard North APN: 048-142-005 RE: Notice of special assessment on real property located at 1482 Petaluma Boulevard North, Petaluma, CA. Dear Property Owner: Pursuant to Petaluma Municipal Code Section 1.14.130(D), this letter and the attached Order shall serve as your notice that the City of Petaluma is going to record a special assessment against your property for unpaid debts owed. This special assessment was authorized the by the City Council of the City of Petaluma on April 16, 2018 for the following unpaid debts owed to the City: 1. Sampling, testing, and cleanup of hazardous waste related to a non -permitted marijuana grow between February 6, 2017 and February 9, 2017. Total owed is $12,274 2. Administrative Citations 01145 and 01146, issued on March 2, 2017 in the amount of $16,250, Total owed is $16,250. 3. Administrative costs of $5,769.33. Total owed is $5,769.45. 11 The total amount owed to the City of Petaluma is $34,293.38.. The City of Petaluma will Fire Department 19s "Y' Street be recording a special assessment on our property on or after August 1 2018. g P Y p P Y g Petaluma, CA 949S2 Phone (707) 778.4390 Pursuant to Government Code Section 38773.5(c), the City of Petaluma is hereby Fax (707) 931-0668 notifying you that the property may be sold after three years by the tax collector for unpaid delinquent assessments. The tax collector's power of sale shall not be affected by the failure of the property owner to receive notice. The assessment may be collected at Fire Prevention Bureau - Il English street the same time and in the same manner as ordinary municipal taxes are collected, and shall Petaluma, CA 94952 be subject to the same penalties and the same procedure and sale in case of delinquency Phone (707) 778-4389 Fax (707) 206-6036 11 as provided for ordinary municipal taxes. All laws applicable to the levy, collection and enforcement of municipal taxes shall be applicable to the special assessment. However, if any real property.to which the cost of abatement relates has been transferred or conveyed to a bona fide purchaser for value, or if a lien of a bona fide encumbrancer for value has been created and attaches thereon, prior to the date on which the first installment of the taxes would become delinquent, then the cost of abatement shall not result in a lien against the real property but instead shall be transferred to the unsecured roll for collection. Your cooperation with this matter is greatly appreciated. Please do not hesitate to contact me with any further questions or concerns you may have. Thank you. Sincerely, Jessi a Power Fire arshal F, ry-- v Fire Prevention Bureau City of Petaluma Fire Department 701-778-4485 12 Attachment 5 CITY.OF PETALUMA POST OFFICE BOX 61 �x $ PETALUMA, CA 94953-0061 David Glass April 19,2Q17 Mayor Chris Albertson Subject Property: 1482 Petaluma Boulevard North Teresa Barrett APN: 048-142-005 Mike Healy Gabe Kearney Dave King RE: Abatement Agreement and Schedule Kathy Miller Councilmembers This Agreement is between the City of Petaluma (".City") and Johnnie Johnson, the property owner ("Property Owner") of 1482 Petaluma Boulevard North ("Property"). The purpose of this Agreement is to bring the Property into compliance with the requirements of the City's Municipal Code and/or laws of the State of California and to recover the costs associated with the City's abatement of the hazardous materials on the Property that occurred on February 6, 2017 through February 9, 2017. On February 6, 2017, with the Property Owner's permission, the Petaluma Police Department and the Petaluma Fire Department conducted an inspection of the Property after receiving a report of a non - permitted marijuana grow. City staff observed numerous code violations inside of the Property that were related to a marijuana grow. As a result of the February 6, 2017 inspection, the City issued a Notice of Violation on February. 7, 2017 and administrative citations on March 2, 2017. As of April 12, 2017, the administrative penalties of $16,250, administrative costs of $5;769.33, and hazardous waste sampling, testing, and cleanup costs of $12,274 are still outstanding. This totals $34,293.38. In consideration of the Property Owner's agreement to bring the Property into compliance with the City of Petaluma's Municipal Code and laws of the State of California, the City hereby agrees to waive the administrative penalties and administrative costs totaling $22,019.33 pursuant to the following conditions: 1. The Property Owner agrees to reimburse the City for the costs of abating the hazardous waste, which totals $12,274.00. The Property Owner agrees to pay the City $6,274.00 by 5:00 p.m. by June 29, 2017. Payment can be made in person or by mail to Administrative Services Department -Citations, 11 English Street, Petaluma, CA 94952. Beginning July 1, 2017, the Property Owner agrees to pay the City a minimum of $500 per month until the hazardous waste abatement costs are paid in full. The Property Owner will submit the payment by close of business by the 15"' of each month. Beginning July 1, 2017, interest shall accrue on the -Police Departmentbalance of the abatement costs at the rate of one and one half percent (1.5%) per '69 Petaluma Boulevard North month, pro rata, until all abatement costs are paid to the City. Petaluma, CA 94952-6320 Phone (707) 778-4372 2. Property Owner agrees to resolve all issues addressed in the February 7, 2017 Fac (707) 778-4502 Notice of Violation and March 2, 201'7 Administrative Citations within 45 days of E-41rail: signing this agreement. If there is an unanticipated delay with bringing the . iliceadmin®cipetal:mra.ca.us Property into Compliance within the 45 day period, the Property Owners shall contact Neighborhood Preservation Coordinator Joe Garcia within five days of becoming aware of the delay. 13 Y 3. The Property Owner acknowledges that the appeal period for the Notice of Violation and Administrative citation has lapsed and hereby waives any further right to appeal and any and all due process rights associated with any rights to appeal said Notice of Violation and Administrative citations. 4. The Property Owner agrees to obtain all applicable permits necessitated by the work to correct the violations. If compliance is not achieved per the above-mentioned conditions, the Property Owner is responsible for paying the suspended administrative penalties and administrative costs of $22,019.33 within 60 days of notice from the City. Failure to meet these conditions may result in the City imposing a lien or special assessment upon the Property pursuant to the Petaluma Municipal Code to collect any outstanding costs and/or penalties. The lien or special assessment shall remain in effect until the costs and penalties are paid in full. The City also reserves its right to collect the costs and/or penalties via any other method authorized by the Petaluma Municipal Code. Additionally, if compliance is not achieved per the above-mentioned conditions, the City reserves its right to abate or cause the abatement of any violation of the Petaluma Municipal Code pursuant to the Order. This agreement is not transferable. Should the property be transferred or sold, this agreement will be deemed violated and the City may immediately proceed with further abatement action. The parties hereby agree and stipulate to the terms and conditions of this agreement. Each party signing this. Agreement on behalf of a party which is not a natural person hereby represents and warrants to the other party that all necessary legal prerequisites to that party's execution of this Agreement have been satisfied and that he or she has been authorized to sign this Agreement and bind the party on whose behalf he or she signs. 4�;L, Property Owner(s) Signature G/VI�17 sir C/0/,2/7 -el Property Owners) Name(s) (printed) *G W,W,2W7 Date City Representative's Signature HN',---. &OWN , 6� rY N t2._ City Representative's Name and Title / 7 Date le!