HomeMy WebLinkAboutItem 4.04 Muni Code Public Welfare/oFDU~~~ CITY CLERK
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: December 2, 2008
SUBJECT: Ordinance Adding Chapter 5.66 to Title 5 (Public Welfare) of
the Dublin Municipal Code .relating to Maintenance of
Foreclosed Residential Properties.
Report Prepared by Jeri Ram, Community Development Director
and Elizabeth H. Silver, Assistant City Attorney
ATTACHMENTS: 1) Draft Ordinance Adding Chapter 5:66 to Title 5 (Public
Welfare) of the Dublin Municipal Code Relating to
Maintenance of Foreclosed Residential Properties.
2) City Council Agenda Statement dated November 18, 2008
(without attachments).
RECOMMENDATION: Waive the second reading and adopt the Ordinance adding Chapter
5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code
Relating to Maintenance of Foreclosed Residential Properties.
~~
FINANCIAL STATEMENT: The citation remedy of $1,000 per day per foreclosed residential
property allowed by the State Law would be directed towards
mitigating the costs of the City's nuisance abatement of programs in
general.
DESCRIPTION:
As a result of the foreclosure crisis in California, on July 8, 2008, the California Governor signed into law
Senate Bill 1137, urgency legislation relating to mortgages and maintenance of foreclosed properties,
which will be in effect through January 1, 2013. Pursuant to Civil Code Section 2929.3, which was added
by Senate Bill 1137, legal owners of vacant residential properties purchased at a foreclosure sale, or
acquired through foreclosure under a mortgage or Deed of Trust, must maintain the residential property or
face civil penalties of up to $1,000 per day. Under Senate Bill 1137, failure to maintain means failure to
care for the exterior of the property, including but not limited to, permitting excessive foliage growth that
diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters
from remaining on the property, or failing to take action to prevent mosquito larvae from growing in
standing water or other conditions that create a public nuisance.
Although the number of foreclosed properties in Dublin is relatively low compared to many communities
in California, Staff recommends inclusion of the remedies of Senate Bill 1137 in the City's Municipal
Code so that Code Enforcement Staff have the additional tools to ensure that community standards are
maintained.
COPY TO:
Page 1 of 2 ~
ITEM NO. •
GWgendas\2008\CCSR Foreclosed Maintenance Ord 12-2-08 2nd Read.DOC
The attached Draft Ordinance ("Ordinance") (Attachment 1) incorporates the authority to impose a civil
penalty of up to $1,000 per day and provides additional code enforcement tools for the City to address the
blight conditions that are often observed at vacant, foreclosed residential properties. In addition, the
Ordinance imposes additional maintenance and security requirements to address the conditions typically
observed at such vacant and foreclosed residences. Furthermore, the Ordinance declares that violations of
the maintenance and security requirements constitute a public nuisance. This Ordinance would be in
effect 30 days following the Second Reading. The Ordinance will remain in effect until January 1, 2013,
unless Senate Bill 1137 is extended by later enacted California legislation.
At the present time City Staff has been able to achieve compliance with the community standards for a
majority of the properties that are in foreclosure. However, should Staff need to use the provisions of this
Ordinance, there is a required 14 day notice that would be sent out to the violator.
City Council Action
On November 18, 2008, the City Council heard a presentation from Staff and conducted a public hearing
on the proposed Ordinance (Attachment 2). At that meeting, the City Council waived the reading and
introduced the Ordinance.
RECOMMENDATION:
Staff recommends that the City Council waive the second reading and adopt the Ordinance adding
Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code Relating to Maintenance of
Foreclosed Residential Properties.
Page 2 of 2
~~~
ORDINANCE NO. XX-08
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
ADDING CHAPTER 5.66 TO TITLE 5 (PUBLIC WELFARE) OF THE DUBLIN MUNICIPAL
CODE RELATING TO MAINTENANCE OF FORECLOSED RESIDENTIAL PROPERTIES
THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS:
WHEREAS, pursuant to the police power granted to the City of Dublin ("City") under the
California Constitution, the City may adopt rules and regulations to serve and protect the health, safety
and welfare of the public; and
WHEREAS, on July 8, 2008, the California Governor signed Senate Bill 1137, which added
Section 2929.3 to the California Civil Code; and
WHEREAS, the legislation was based on the impact of foreclosures in the State of California.
High foreclosure rates have adversely affected property values in California and will have even greater
consequences as foreclosure rates continue to rise. If foreclosed property is neglected, these properties
can cause blight in the community, and decrease the surrounding property values; and
WHEREAS, the Civil Code Section 2929.3 requires legal owners to maintain vacant residential
property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage
or Deed of Trust; and
WHEREAS, pursuant to Civil Code Section 2929.3, local governments, such as the City, upon
notice are authorized to impose civil penalty in the amount not to exceed $1,000 per day for failure to
maintain foreclosed vacant residential property; and
WHEREAS, this legislation remains in effect until January 1, 2013, and as of that date is
repealed, unless later enacted statute(s), enacted before January 1, 2013, deletes or extends that date; and
WHEREAS, pursuant to the City's police powers, authorized in Article XI, Section 7 of the
California Constitution, as well as under the City of Dublin Municipal Code and other provisions of
California law, including, but not limited to California Government Code Section 38771, the City has the
power through its City Council to declare action and activities that constitute a public nuisance.
NOW, THEREFORE, the City Council of the City of Dublin does hereby ordain as follows:
SECTION 1. Chapter 5.66 entitled "Maintenance of Foreclosed Residential Properties" is hereby added
to Title 5 (Public Welfare) of the Dublin Municipal Code to read in its entirety as follows:
"5.66 Maintenance of Foreclosed Residential Properties"
5.66.010 Purpose and Pre-Emption.
This Chapter is not intended to .preempt State law, but is only intended to carry out the provisions of
California Civil Code Section 2929.3. In event there is a conflict between the provisions of State Law
and this Chapter, the State Law shall control.
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Attachment 1
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5.66.020 Definitions.
"Failure to maintain" means failure to care for the exterior of the property, including, but not limited to
permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take
action to prevent trespassers or squatters from remaining on the property, or failing to take action to
prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance,
including conditions at or on the foreclosed residential property in violation of Sections 5.64.040,5.68.050
and 5.70.020 of Dublin Municipal Code
"Foreclosed residential property" means a vacant residential property purchased by the legal owner at a
foreclosure sale, or acquired by the legal owner through foreclosure under a mortgage or Deed of Trust.
"Landscape" includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges or similar
painting, decorative rock or bark or artificial turf/sod designed specifically for residential installation.
Landscape does not include weeds, gravel, broken concrete, asphalt, decomposed granite, plastics
sheeting, mulch, indoor-outdoor carpet or any similar material.
"Landscape maintenance" includes, but is not limited to, regular watering, irrigation, cutting, pruning,
mowing and removal of all trimmings of required landscape.
"Legal owner" means any person, partnership, co-partnership, association, corporation, fiduciary or any
other legal entity having a legal or equitable title or any interest in the foreclosed residential property.
"Residential property" means any improved real property, or portion thereof, situated 'in the City of
Dublin, designed, built or permitted to be used for dwelling purposes, specifically including the building
and structure located on such improved real property. This includes any real property being offered for
sale, trade, transfer or exchange as "residential" whether or not it is legally permitted or zoned for such
use.
"Secured" means treated with such measures as may be directed by City Manager or his/her designee
that assist in rendering the vacant foreclosed residential property inaccessible to unauthorized persons,
squatters, trespassers, including, but not limited to, the closure, locking, pad-locking, chaining, repair
and/or boarding of fence(s), wall(s), gate(s), window(s), door(s) (walk-through, sliding and/or garage),
and/or other openings of such size that may allow a child access to the interior of the accessible property.
In case of broken windows, secured included the reglazing or boarding of the window.
5.66.030 Maintenance of Foreclosed Residential Properties.
A legal owner shall maintain foreclosed residential property as follows:
A. Foreclosed residential property shall be maintained so as to be kept free of evidence of vacancy
and abandonment;
B. Foreclosed residential property shall be maintained free of weeds, dry brush, dead vegetation,
trash, junk, debris and excessive foliage growth that diminishes the value of surrounding
properties;
C. Foreclosed residential property shall be maintained free of mosquito larvae from growing in
standing water;
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D. Foreclosed residential property shall be maintained free of any building materials, any
accumulation of newspapers, circulars, flyers, notices (except those required by Federal, State, or
Local Law), discarded personal items, including but not limited to furniture, clothing, large and
small appliances, printed material or any other items that give appearance that the property is
abandoned; .
E. Foreclosed residential property shall be maintained free of graffiti, tagging or similar markings by
removal or painting over with an exterior grade paint that matches the color of the exterior of the
structure, following a notice pursuant to Section 5.68.060 of Dublin Municipal Code or notice
pursuant to California Civil Code Section 2929.3, whichever is applicable;
F. Maintenance of abandoned properties shall include landscape maintenance of visible front and
side yards;
G. Pools and spas shall either (a) be kept in working order so the water remains clear and free of
pollutants and debris; or (b) drained and kept dry. In either case, properties with pools and/or spas
must comply with the minimum security fencing requirements of the State of California;
H. Foreclosed residential property shall be maintained free of public nuisance conditions as set forth
in Sections 5.64.040 and 5.70.020 of Dublin Municipal Code; and/or
I. Foreclosed residential property shall be secured, as defined in this Chapter. In addition, the
foreclosed residential property shall be secured in a manner that would prevent trespassers,
squatters or unauthorized persons from entering and/or remaining on the property.
5.66.040 Declaration of Public Nuisance.
Pursuant to City's police powers authorized in Article XI, Section 7 of the California Constitution, as well
as the City of Dublin Municipal Code and other provisions of California law, including, but not limited to,
California Government Code Section 38771, the City Council hereby declares that violation of the
maintenance and security requirements of Section 5.66.030 of this Chapter shall constitute a public
nuisance.
5.66.050 Civil Penalty Imposed.
A. Pursuant to California Civil Code Section 2929.3, the City of Dublin may impose a civil penalty in
the amount not to exceed $1,000 per day against the legal owner for failure to maintain the
foreclosed residential property, as required by this Chapter, provided that notice requirements of
Civil Code Section 2929.3, as set forth in Section 5.66.060 are satisfied. If imposed, the civil
penalty pursuant to this Section shall commence on the day following the expiration of the
compliance period, as provided in notice required by Section 5.66.060.
B. In determining the amount of the civil penalty, the City shall take into consideration any timely
and good faith efforts by the legal owner to remedy the violations at the foreclosed residential
property.
C. Civil penalties collected pursuant to this Section shall be directed to the City's nuisance abatement
programs.
D. The City shall not impose a civil penalty pursuant to this Section together with administrative
citations or fines, as may otherwise be authorized by the Dublin Municipal Code.
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5.66.060 Notice of Violation and Compliance Period.
A. If the City imposes a civil penalty pursuant to Section 5.66.050, the City shall first give a notice of
alleged violation, which includes a description of the conditions that have risen to the allegation,
notice of the City's intent to assess a civil penalty pursuant to Section 5.66.050, if actions
necessary to address and/or correct the violation(s) at the foreclosed residential property are not
commenced within a period of not less than fourteen (14) days and completed within a period of
not less than thirty (30) days, from the date of the mailing of the notice.
B. The City may provide less than thirty (30) days' notice to complete actions necessary to address
and/or correct the violation(s), if the City determines that a specific condition of the foreclosed
residential property threatens public health or safety and provided that the notice of violations
states that there is a threat to public health or safety, and shorter time for compliance is provided.
C. The notice of violation pursuant to this Section shall be mailed by certified mail to the address
provided in the Deed or other instrument specified in California Government Code Section
27321.5, including Deed, instrument conveying title, mortgage with power of sale; or if none, to
the return address provided on the deed or other instrument.
5.66.070 Appeals.
Any person aggrieved by any of the requirements of this Section may appeal insofar as such appeal is
permitted under the applicable Sections of Chapters 5.64, 5.68 and 5.70 of Dublin Municipal Code. Any
person aggrieved by the imposition of a civil penalty pursuant to Section 5.66.050 of this Chapter, may
appeal the imposition of the penalty to the City Council pursuant procedures set forth in Section 1.04.050
of Dublin Municipal Code.
5.66.080 Enforcement.
In addition to civil penalty authorized by Section 5.66.050, violations of this Chapter maybe enforced in
any combination as permitted by Chapters 5.64, 5.68 and 5.70 of Dublin Municipal Code and any other
enforcement and legal remedies available to the City under the law. However, in no event shall the City
impose a civil fine pursuant to Section 5.66.050, together with administrative fine that maybe authorized
by Dublin Municipal Code.
5.66.090 Sunset Date.
This Chapter shall remain in effect until January 1, 2013, and as of that date is repealed, unless the State
of California enacts a statute before January 1, 2013, that either deletes or extends Civil Code Section
2929.3.
SECTION 2. Severability. The provisions of this Ordinance are severable and if any provision, clause,
sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or
circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair
any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or
their applicability to other persons or circumstances.
SECTION 3. Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following
its adoption.
SECTION 4. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at
least three (3) public places in .the City of Dublin in accordance with Section 36933 of the Government
Code of the State of California.
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PASSED, APPROVED AND ADOPTED this 2nd day of December, 2008 by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
Caroline Soto, City Clerk
G: IAgendas120081CC ORD Foreclosed Maintenance 12-02-08 2nd read
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CITY CLERK
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: November 18, 2008
SUBJECT: PUBLIC HEARING: Ordinance Adding Chapter 5.66 to Title 5
(Public Welfare) to the Dublin Municipal Code relating to
Maintenance of Foreclosed Residential Properties.
Report Prepared by Jeri Ram, Community Development Director
and Elizabeth H. Silver, Assistant City Attorney
ATTACHMENTS: 1) Draft Ordinance Adding Chapter 5.66 to Title 5 (Public
Welfare) of the Dublin Municipal Code Relating to
Maintenance of Foreclosed Residential Properties.
RECOMMENDATION: 1)
2)
3)
~ 4)
5)
Receive Staff Presentation;
Open public hearing;
Receive public testimony;
Close public hearing and deliberate; and
Waive reading and introduce Ordinance adding Chapter 5.66
to Title 5 (Public Welfare) of the Dublin Municipal ,Code
Relating to Maintenance of Foreclosed Residential
Properties.
FINANCIAL STATEMENT: The citation remedy of $1,000 per day per foreclosed residential
property allowed by the State Law would be directed towards
mitigating the costs of the City's nuisance abatement of programs in
general.
DESCRIPTION:
The recent increase in the number of mortgage default notices filedagainst California homeowners and
the number of foreclosures have raised to the highest level in more than 15 years. The properties in the
Foreclosure Process often end up vacant and abandoned, prior to or after the lender/bank takes title to the
property. Moreover, the foreclosed properties may remain vacant and on the market for a prolonged
period of time. Typically, such vacant abandoned residences are not maintained and not monitored by the
lenders banks, which may result in residences with dry, dead or overgrown landscaping, lawns and
vegetation; trespassers, vandals and thieves entering the property; graffiti and/or vandalism of both the
exterior and interior of the dwelling; accumulation of junk, debris, trash, and personal items; and/or pools
with polluted water or mosquito larvae growing in the water. The lack of .security and maintenance of
abandoned residential properties can result in detrimental effects, including the unsightly appearance of
blighted residential neighborhoods, lowered property .values, and to discourage potential buyers from
COPY TO:
Page 1 of 3
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G: IAgendas110081CCSR Foreclosed Maintenance Ord /1.18.081st ReadDOCs1C ment 2
purchasing homes in adjacent neighborhoods affected by the resulting squatting, vandalism, and
burglaries which can pose a risk to the public peace, safety and welfare of the City. '~~
As a result of the foreclosure crisis in California, on July 8, 2008, the California Governor signed into law
Senate Bi11 1137, urgency legislation relating to mortgages and maintenance of foreclosed properties,
which will be in effect through January 1, 2013. Pursuant to Civil Code Section 2929.3, which was added
by Senate Bill 1137, legal owners of vacant residential properties purchased at a foreclosure sale, or
acquired through foreclosure under a mortgage or Deed of Trust, must maintain the residential property or
face civil penalties of up to $1,000 per day. Under Senate Bill 1137, failure to maintain means failure to
care for the exterior of the property, including but not limited to, permitting excessive foliage growth that
diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters
from remaining on the property, or failing to take action to prevent mosquito larvae from growing in
standing water or other conditions that create a public nuisance.
Senate Bill 1137 has only been in effect since July, 2008 and cities are just beginning to adopt ordinances
implementing all or a portion of the remedies available under the new law. To date, the cities of Chula
Vista, Fresno, Beaumont, Desert Hot Springs, Cathedral City, Indio, Covina and Greenfield have
implemented portions of the legislation. The City of Pittsburg is in the process of approving a similar
ordinance as well. At a recent seminar in Southern California where Meyers Nave presented a session on
this Senate Bill, attendees indicated that where the cities had adopted provisions of the remedies allowed
by Senate Bill 1137, it was successfully working to maintain community standards.
Although the number of foreclosed properties in Dublin is relatively low compared to many communities
in California, Staff recommends inclusion of the remedies of Senate Bill 1137 in the City's Municipal
Code so that Code Enforcement Staff have the additional tools to ensure that community standards are
maintained.
Proposed Ordinance
The attached Draft Ordinance ("Ordinance") (Attachment 1) incorporates the authority to impose the up
to $1,000 per day civil penalty and provides additional code enforcement tools for the City to address the
blight conditions that are often observed at vacant, foreclosed residential properties. In addition, the
Ordinance imposes additional maintenance and security requirements to address the conditions typically
observed at such vacant and foreclosed residences. Furthermore, the Ordinance declares that violations of
the maintenance and security requirements constitute a public nuisance. The key provisions of the
Ordinance are discussed in more detail below.
Maintenance and Security Requirements
The Ordinance imposes various maintenance requirements to address the conditions typically observed by
the City Staff at vacant foreclosed residences, including but not limited to; dry, dead or overgrown
landscaping and vegetation, graffiti and vandalism of both the exterior and interior of the dwelling, and
boarded windows and doors. In addition, the Ordinance. requires the legal owners of vacant foreclosed
properties to secure the property in a manner that would .prevent trespassers, vandals, thieves or any
unauthorized persons from entering the property. The Ordinance also incorporates the City's residential
property maintenance requirements, weeds and graffiti regulations,. as provided in Chapters 5.64, 5.68 and
5.70 of Dublin's Municipal Code.
Notice and Civil Penalty Provisions
The Ordinance authorizes the City to impose a civil penalty in the amount not to exceed $1,000 per day
pursuant to Senate Bill 1137, when a legal owner fails to maintain the vacant foreclosed residential
property.. Prior to issuing a civil penalty, the City must first provide the legal owner with: 1) notice of
Page 2 of 3
violation; 2) notice of the conditions establishing the violation(s); and 3) notice of the City's intent to issue
the civil penalty in the amount up to $1,000, if actions necessary to address and/or correct the violation(s)~~~
at the foreclosed residential property are not commenced within 14 days and completed within 30 days.
Under the circumstances where a specific condition on the property threatens the public health or safety,
the City may establish a compliance period shorter than 30 days.
If the legal owner fails to remedy the violation(s), the City may assess a civil penalty of up to $1,000 for
each day the vacant foreclosed property is not maintained. In imposing the fine, Senate Bill 1137 requires
the City to determine the amount of the fine based on any timely or good faith efforts by the legal owner
to remedy the violation(s). The civil penalties collected pursuant to the Ordinance shall be directed to
City's nuisance abatement programs.
Flexibility of Using Either. this Ordinance or Existing Property Maintenance Ordinance
The Ordinance provides the City with an additional tool for enforcing the City's property maintenance,
weeds and graffiti regulations; and does not prevent the City from proceeding with abatement of public
nuisances pursuant to existing Chapters 5.64 (Property Maintenance), 5.68 (Graffiti) and 5.70 (Weeds and
Refuse) of the Dublin Municipal Code. However, the City cannot pursue penalties under each Section of
the Code. Therefore, if the City enforces the civil penalty allowed under Senate Bill 1137 the City cannot
also issue a citation under the other chapters of the Code.
Ordinance Sunset Date
The Ordinance will remain in effect until January 1, 2013, unless Senate-Bill 1137 is extended by later
enacted California legislation.
Appeals
Any person aggrieved by the imposition of the civil penalty pursuant to the Ordinance may appeal the
penalty to the City Council pursuant to Section 1.04.050 of Dublin Municipal Code, by filing a written
notice of appeal with the City Clerk and specifying the reasons for the appeal. Notice of appeal must be
filed with the City Clerk within 14 calendar days from the City's issuance of the civil penalty and in no
even later than 20 calendar days. The City Clerk will set the date of the appeal hearing before the City
Council and the appellant will be provided with at least 5 calendar days' notice of the time and place of
the appeal hearing.
Implementation
This Ordinance would be in effect 30 days following the Second Reading. At the present time City Staff
has been able to achieve compliance with the community standards for a majority of the properties that
are in foreclosure. However, should Staff need to use the provisions of this Ordinance, there is a required
14 day notice that would be sent out to the violator. Should that occur, Staff has developed a procedure
similar to Public Hearing Notices in that the City Council and City Manager would receive a copy of the
Notice.
RECOMMENDATION:
Staff recommends that the City Council: 1} Receive Staff. Presentation; 2) Open public hearing; 3)
Receive public testimony; 4) Close public hearing and deliberate; and 5) Waive reading and introduce
Ordinance adding Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code Relating to
Maintenance of Foreclosed Residential Properties.
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