HomeMy WebLinkAboutDocumentation_Workshop_Tab 02_4/1/2024 Agenda Item #2.
Workshop
STAFF MEMO
Meeting: Workshop - Apr 01 2024
Staff Contact: Marjorie Craig, Utilities Director Department: Utilities
Discussion of an Ordinance Amending the City Code of Ordinances Section 74-82 to Add a Process
and Allow a Lien on Property for Unpaid Utilities Service Charges Through a Magistrate
The Village of Tequesta's Utilities Department is asking the Village Council to discuss modifying the
current ordinance in place to lien delinquent utility bills to include a process. This item was previously
brought before the Village Council at the January 29, 2024, Council workshop and has been brought
back with additional information and a presentation for discussion and consideration.
The draft ordinance for discussion provides a process for a hearing by the Village Magistrate to
impose and record liens against property for water utility services and fees found to be delinquent or
a lesser amount that the Magistrate may deem just and fair.
CURRENT ORDINANCE
In the Village of Tequesta's Code of Ordinances, Utilities Chapter 74 Section 82 (74-82) Ordinance
No. 23-13 was passed that allowed a lien on property to recover any money owed by a customer on
their water bill, but did not provide a process to implement the lien:
Sec. 74-82. — Lien for unpaid service charges.
The village shall have a lien on all lands or premises served by the waterworks systems
of the village for all charges for water service or any other charges appearing on the
water bill until such charges are paid to the village together with all costs and expenses
incurred by the village in connection with the delinquent account. Such liens shall be
prior to all other liens on such lands or premises except a lien for state, county and
municipal taxes. Such liens, when delinquent for more than 30 days, may be foreclosed
on by the village attorney as provided by law.
(Ord. No. 23-13, §1, 9-13-2013)
DRAFT ORDINANCE FOR DISCUSSION
The attached proposed ordinance was drafted by the Village Attorney's Office to include a process to
impose, record, and foreclose to recover owed money and provide authority. The general process in
the draft ordinance is outlined below:
• The Utilities department sends a notice to the consumer and to the owner of the property, if
different, with the amount owed by certified mail
• The notice shall provide detail on the delinquent billing due with notice that it must be paid
within 30 days, and with a date and time of the next available lien imposition hearing following
the end of the delinquency notice period and their right to attend the hearing
Page 9 of 61
Agenda Item #2.
• If the consumer and/ or owner does not pay within 30 days, the hearing will take place, and
depending on the outcome, the date of the execution of the order imposing a lien shall be the
date of the levy of the assessment
• The Village Clerk shall record the order imposing a lien in the official county records
• The assessment will earn interest at the rate for judgments when the assessment was
imposed (Florida Statute 55.03(1)) and subject to foreclosure if not fully paid within three years
of the date of delinquency in the same way in which mortgage liens are foreclosed
CURRENT DELINQUENCY PROCESS
The current bill delinquency collection process is as follows:
• The Utilities Department bills 30 days after the water/ services are used (30 days in arrears)
• Bill 30 days late - a late notice is sent and a late fee is imposed of 1% of the outstanding
balance with a minimum charge of$15
• Bill 60 days late — water shut-off notice is sent, follow up with a phone call and initiates water
shut-off five (5) days after the notice is mailed (this is 90 days after the water/ services are
used)
• After the water is shut off, customer service continues to contact the customer again about bill
payment but if the water is shut off, they are no longer living at the property and charges
continue to accrue including late fees
• Inactive accounts (the customer has notified us they are moving out or another customer sets
up an account at the same address) are sent to our collections contractor after six months of
no payment and they continue to attempt to secure collection
• Bill write-off is considered after two to three years, after a review of the process by the Finance
department
• Active accounts (where they have moved out but not notified us) continue to accrue charges
and late fees and the water has already been shut off
DELINQUENCY PROCESS INCLUDING PROPOSED PROPERTY LIEN
Before a bill would be sent through the lien process:
• The Utilities Department bills 30 days after the water/ services are used (30 days in arrears)
• Bill 30 days late - a late notice is sent and a late fee is imposed of 1% of the outstanding
balance with a minimum charge of$15
• Bill 60 days late — water shut-off notice is sent, follow up with a phone call and initiates water
shut-off five (5) days after the notice is mailed (this is 90 days after the water/ services are
used)
• After the water is shut off, customer service continues to contact the customer again about bill
payment, but if the water is shut off, they are no longer living at the property and charges
continue to accrue including late fees
• Customer/owner would go through the lien process
• Inactive accounts (the customer has notified us they are moving out or another customer sets
up an account at the same address) are sent to our collections contractor after six months of
no payment on a priority basis by year and dollar amount, and they continue to attempt to
secure collection
• Bill write-off is considered annually, after a review of the process by the Finance department
• Active accounts (where they have moved out but not notified us) continue to accrue charges
and late fees and the water has already been shut off
Page 10 of 61
Agenda Item #2.
This document and any attachments may be reproduced upon request in an alternative format by
completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-
768-0443.
BUDGET • •
BUDGET AMOUNT N/A AMOUNT AVAILABLE N/A EXPENDITURE AMOUNT: N/A
FUNDING SOURCES: N/A IS THIS A PIGGYBACK:
❑ Yes ❑x N/A
DID YOU OBTAIN 3 QUOTES?
❑ Yes ❑x N/A
QUOTE 1 - BUSINESS NAME N/A QUOTE AMOUNT N/A
QUOTE 2 - BUSINESS NAME N/A QUOTE AMOUNT N/A
QUOTE 3 - BUSINESS NAME N/A QUOTE AMOUNT N/A
COMMENTS/EXPLANATION ON SELECTION Not related to a procurement item
DRAFT Ord. 03-24 Utilities Rates and Fees-v3
24.0326.Lien Ordinance Presentation-FINAL
Page 11 of 61
Agenda Item #2.
ORDINANCE NO. 03-24
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF
ORDINANCES AT CHAPTER 74. UTILITIES. AT SECTION 74-82. LIEN
FOR UNPAID SERVICE CHARGES. TO REVISE THE SECTION TO
OUTLINE A PROCESS FOR THE VILLAGE MAGISTRATE TO IMPOSE
DELINQUENT VILLAGE UTILITIES SERVICE CHARGES AGAINST THE
PROPERTIES SERVICED; PROVIDING EACH AND EVERY OTHER
SECTION AND SUB-SECTION OF CHAPTER 74. UTILITIES. SHALL
REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ADOPTED;
PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND
AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR
OTHER PURPOSES.
WHEREAS, the current code section states that unpaid water utilities service
charges shall TEQUESTA become a lien against the real property served but does not
outline any process for doing so; and
WHEREAS, the Village Council desires to revise the section to require a hearing
in front of the Village Magistrate and by delegating authority to the Village Magistrate to
hear cases regarding unpaid Village utilities service charges and to impose and record
liens for charges found to be delinquent; and
WHEREAS, the Village Council believes the code amendment contained in this
ordinance will be in the best interests of the citizens of the Village of Tequesta.
NOW THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1: Chapter 74. Utilities. of the Code of Ordinances of the Village of
Tequesta is hereby amended at Article II. Water Service. by amending Section 74-82.
Lien for unpaid service charges. to revise that code section as follows:
Sec. 74-82. - Lien for unpaid service charges-: notice of lien imposition to
consumers; public hearings; recording of lien in public records of the county;
foreclosure of lien.
1
Page 12 of 61
Agenda Item #2.
The village shall have a lien on all lands or premises served by the waterworks
systems of the village for all charges for water service or any other charges
appearing on the Village utilities bill until such charges are paid to the village
together with all costs and expenses incurred by the village in connection with
the delinquent account. Such liens shall be prior to all other liens on such lands
or premises except a lien for state, county and municipal taxes. Such liens,
when delinquent for more than 30 days, may be fnrcGlesed by village
atterney may be imposed, recorded, and foreclosed in the following manner:
(a) The director of the utilities department, or his or her designee, shall send by
certified mail, a notice to the consumer at the account name and address,
and to the owner of the property, if different, at the address shown of the
county's ad valorem tax rolls of the delinquency and the amount of the non-
payment of water and/or wastewater service charges. The owners, tenants,
or lessees shall severally and jointly be responsible for water and/or
wastewater service charges.
(b) The final delinquency notice shall specify the delinquent billings, individual
and total, and shall notify the consumer and/or owner that the delinquency
must be paid within 30 days from the date of the notice, and that if the
consumer fails to pay the delinquency within 30 days of the date of notice
that a lien imposition hearing will take place in front of the Village
magistrate. The notice shall state the date and time of the next available lien
imposition hearing following the end of the delinquency notice period and
shall notify the consumer of their right to attend, present evidence, and
dispute the imposition of the charges at the hearing.
(c) Unless within 30 days the consumer and/or owner pays the amount of the
delinquency the village magistrate may by an order imposing lien levy such
charges against the property served in the amount of the delinquency then
outstanding or in such lesser amount as the magistrate shall decide is just
and fair. The date of the execution of the order imposing lien shall be the
date of levy of the assessment.
(d) The Village Clerk shall cause the order imposing lien to be recorded in the
official records of the county in which the property is located, by recording
the order imposing lien.
(e) The assessment shall bear interest at the rate for judgments at the time of
imposition required by Florida Statute 55.030). The assessment shall be
subject to foreclosure if not fully paid within three years of the date of
delinquency. The lien shall be foreclosed in the same manner in which
mortgage liens are foreclosed.
[All other definitions shall remain the same as previously adopted.]
2
Page 13 of 61
Agenda Item #2.
Section 2: Each and every other section and subsection of Chapter 74. Utilities.
shall remain in full force and effect as previously adopted.
Section 3: All ordinances or parts of ordinances in conflict be and the same are
hereby repealed.
Section 4: Should any section or provision of this Ordinance or any portion
thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction
to be invalid, such decision shall not affect the validity of the remainder of this Ordinance.
Section 5: Specific authority is hereby granted to codify this Ordinance.
Section 6: This Ordinance shall take effect immediately upon adoption.
3
Page 14 of 61
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