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Environmental Services i - 02-07-1995 - Page 0010 i To: City Manager City Council From: Environmental Services Director Subject: Graffiti Removal Cost Recovery • City of West Covina, Memorandum AGENDA REM NO. F-1 DATE 2-7-95 ® PRINTED ON RECYCLED PAPER January 29, 1995 Summary: This is a report on recent State legislation as, requested by the City Council. These new laws; would allow a city more -options for cost recovery from a.graffiti vandal. On December 20, 1994, the City Council requested a report on recent State legislation that allows a city more optionsQfor cost recovery from a graffiti vandal. -Specifically, these new laws would allow :a city to: seek full recovery of costs from the vandal for graffiti removal; increase the�limits of the costs that a city may - recover; and place a lien on the property of a convicted minor's,, parents to recover these costs. The City Council .also requested a report on how we recover our costs today. Staff has reviewed the new State laws and evaluated what would be cost-effective for the City to, employ. Staff is recommending the City Council request preparation of a code amendment to allow the City to recover from perpetrators and their parents all City,costs' associated.with the prosecution and removal of graffiti by a vandal. Current Collection Program Risk Management has the assignment to recover these costs, not the City Prosecutor. The reasons for this assignment are: 1. The dollar value of the graffiti vandalism is usually well below $5,000. Staff cannot think of any past cases of graffiti vandalism that exceeded this amount. 2. It is not cost-effective to use the more expensive City Prosecutor in a small claims action. The use of Risk Management's Account Clerk is more efficient use of AA our limited financial resources. 1 e VA Q H 3. The Risk Management Account Clerk has been -outstanding - in obtaining cost recovery from vandals after they have been caught and convicted. 4. The person convicted of graffiti vandalism can only be required to pay the City if they have the ability,to do so. This is the law followed by the Courts and the City. Risk Management is currently responsible for handling all of the City's uninsured losses. An uninsured loss is defined as any kind of damage to City property that is not covered by insurance, for example, traffic signals, signs, trees, vehicles, etc. Currently, we treat damage resulting from graffiti as any other uninsured loss. The City utilizes the following procedures in the pursuit of reimbursement collection for damaged property: • Review police report to determine.type of damage and responsible party ® Ascertain.repair, clean-up, or replacement costs ® Invoice responsible party (we send an invoice toathe parents -if a minor is involved) Responsible party is given 30 days to pay in full or set up a.payment schedule Delinquent & final notices are sent to responsible -party if no payment is received ® Cases are then reviewed to determine the feasibility of proceeding to Small Claims Court Following the above steps certainly does not guarantee recovery of City losses. Often times, we are unable to locate the responsible party. Risk Management does pursue every avenue available to ascertain the location of the responsible party. Staff makes many attempts to locate.the responsible parties. After we exhaust all avenues, we close the file. Many files are closed as uncollectable. Even once we locate.the responsible party, collection is still a .time consuming process. We must track the cases to ensure monthly payments are being kept. More often than not, we receive payment only after we send'a delinquent and - final notice threatening court action to the responsible party. Another stumbling block is the high rate of transient parties involved. We may receive a few payments but then parties move and it is necessary to try to re- locate them. We basically have three years to pursue collection from the responsible party. In order to protect our right of recovery, we must file a Small Claims Court Action prior to the three year statute. Often, the responsible party has no -means to pay for damages. This occurs because they are, 2 . n Y unemployed, they have no insurance; --or have no other assets. This basically renders them almost impossible to sue. Before proceeding to Small Claims Court, we review a case carefully. When we file a case with the court, the City, incurs additional costs. We can recover these costs as part of the judgment. However, judgment alone does not always guarantee payment. Many times the party does not show up at court proceedings, and/or they simply refuse to pay judgments. Often times 'we then are unable to locate the party for future court actions. Losses pursued in Small.Claims have a limit of $5,000.00 lor less. A judgment is valid for ten years. The court may assign cases to the Probation Department for recovery of losses when an individual is found guilty of la criminal offense. This includes adults and minors. Upon request.from Probation, we provide a "Statement of Loss" and they in turn seek restitution from the offender.. Our success rate for collection through Probation is much thee' same as cases,handled by Risk Management. It has been our experience that Probation encounters the same stumbling j blocks as referenced above. Often, follow-up by Risk Management on a case being handl',ed by Probation is -almost impossible. Files handled by Probation generally are.shifted from officer to officer. Case loads are heavy, and subsequently we have had very little success getting information on files that remain unpaid. Risk Management does not process a large number of graffiti cases. The primary reason appears to be failure to. apprehend and convict the vandals. We have a relatively good success 'rate on collection of graffiti losses; however, most are minuscule when compared with other uninsured losses. i The current recovery amounts for graffiti clean-up are inlla, memo between the Maintenance Director and the Police Department (copy attached). We currently do not recover 11 the actual cost of paint, indirect overhead, or law enforcement costs of apprehending the vandal. New State Legislation i There are five State laws that became effective January 1, 1995, that pertain to graffiti vandalism. The following is a summation of these laws: 1. "Graffiti Removal and Damage Recovery Program" The City:,may adopt an ordinance that requires the probation department and juvenile court to collect reimbursement for costs associated with a minor's defacement of property with graffiti. The City is 3 t. G already recovering costs from any convicted graffiti vandal. However, they are not the full costs as listed in this law. The -City should amend the City's Code to seek for full cost recovery. This "new" cost recovery program is subject to the ability of the minor to pay. The "new" cost recovery program would allow the citation of the minor's parent and seek reimbursement to the extent they have the ability to pay. These reimbursement approaches are what.the City and Courts follow today, except for the. inclusion of the law enforcement and associated costs. 2. Lien on Propert The City may place a lien on the property of a minor's parents for the reimbursement of costs associated with correction of graffiti vandalism. This assumes one can .find the parents, their property, and ascertain if there may be too many liens on the property already. This process would require the use of legal counsel to execute a lien. Most -of the cost recoveries are about $100. Unless there was a large amount of graffiti done by a vandal and they are caught and convicted, .the lien approach does not appear to'be cost-effective. If a person has vandalized a large number of sites or many square feet of wall surface and they are caught and. convicted, the lien approach may be more cost- effective. West Covina has not experienced -this circumstance. The City Council may consider this approach and amend the Code if they.want to have this option available. Staff is not recommending a code change. 3. Increase in Parental Liability This law increases the amount a parent may be responsible to pay for any graffiti vandalism from $10,000 to $20,000. This State Code Section is already referenced in the City's current Municipal Code. We may use this State law in conjunction with the City's current Code.. This dollar amount is greater than that allowed in. Small Claims proceedings. The City Prosecutor would -have to take the lead. Our current Code already gives us the ability to use this approach if needed. 4. Graffiti Clean-up The law would allow a.City the use of City funds to repair or replace that part of a property from which graffiti may not be removed cost-effectively. This may be a useful tool for the City, but .we are not sure there will be an instance where we could not remove the graffiti some way. Under the current program, any graffiti on private property may be removed by the owner of the property. If it is not removed,. then it could be removed by the Boys and Girls Club of the San Gabriel Valley (the "Club") at a cost of $20 a site. If a particular property becomes consistent target -for 4 graffiti, we would getwith a•.property owner to see what has to be done to prevent the graffiti.` If a property owner refuses to remove.graffiti or allow the "Club" to remove it, the City can cite the property owner for a maintaining a public nuisance. While this is an option for the City Council, staff believes it best to use this approach for large jobs rather than using City funds. 5. Definition of Graffiti Vandalism. This law has revised the definition of vandalism to include the malicious defacing of another's property with graffiti. This includes any unauthorized inscription, word, figure, mark, or design that is "written, marked, etched, scratched, drawn or painted on real or personal property." Our current Code has language that encompasses this revision. There is no need to amend the Code. Reality of Cost Recovery Staff supports the concept of full cost recovery from graffiti vandals and their parents. However, we must keep in mind the reality of achieving this end. Staff has reviewed the legislation and the Municipal Code for possible, amendment. Any possible amendment should consider: • In today's economy;, it is doubtful that the City will have much success recovering losses under thisnew legislation. • As we.have seen with the City's Party Ordinance, offenders will be reluctant to pay.the additional costs. The graffiti vandalism full cost recovery has no formal appeal process. Someone sent a bill for full cost recovery still has the ability to appeal to the City Council as any citizen may do. • In addition, the legislation does not address the responsible party's ability to pay. If the responsible party has no means to pay -for damages, it is highly unlikely they will own property upon which we can place a lien special assessment. Although the concept is good, the reality is not promising. • The new legislation raises the cost recovery.limits from $10,000.00 to $20,000.00. This would not appear to be of significant interest to the City because we have yet to have a graffiti loss above the recoverable amount in small claims. Again, the higher recovery limits would only be to our benefit if the responsible party owns property. • Should we have a loss that exceeds the small claims limit, the court process could be more costly because we would need to utilize attorneys. 0 This stated, City Staff, including.Risk Management, recommends that the City Council consider full cost recovery. Much to our consternation, graffiti is a realism we must address. The ability of a person to pay is not within our control. The ability to seek full recovery of costs is our option. Staff believes we should seek full cost recovery. Options ,There are options available to.this recommendation. These are: 1. Make no.change to the Municipal Code. 2. Change the City policy and not seek cost recovery for graffiti vandalism. 3: Amend the Municipal Code to include a property lien option. 4. Use City funds to remove persistent graffiti on private property instead of forcing the property owner to do so. Recommendation Staff recommends the City Council direct staff to prepare the necessary code amendment to allow the City to recover all City costs associated with the prosecution and removal of graffiti by a vandal. Michael L. Miller Environmental Services Director Attachment 6