HomeMy WebLinkAboutDocumentation_Regular_Tab 11_6/13/2024 Agenda Item #11.
Regular Council
STAFF MEMO
Y
Meeting: Regular Council - Jun 13 2024
Staff Contact: Marjorie Craig, Utilities Director Department: Utilities
ORDINANCE 03-24, SECOND READING, AN ORDINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, FLORIDA, AMENDING THE VILLAGE CODE OF ORDINANCES AT
CHAPTER 74. UTILITIES. SECTION 74-82. LIEN FOR UNPAID SERVICE CHARGES. REVISING
THIS SECTION TO PROVIDE A PROCESS FOR THE VILLAGE SPECIAL MAGISTRATE TO
IMPOSE DELINQUENT UTILITY SERVICE CHARGES AGAINST THE PROPERTIES SERVICED;
PROVIDING THAT 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
The Village of Tequesta's Utilities Department recommends modifying the current ordinance in place
to lien delinquent utility bills to include a process. This is the first reading of the ordinance to consider
approval.
This item was brought before the Village Council at the January 29, 2024, workshop. Additional
information and a presentation were brought back to the Council at the April 1, 2024, workshop for
consideration and discussion.
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)
Page 174 of 344
Agenda Item #11.
DRAFT ORDINANCE FOR CONSIDERATION OF APPROVAL
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 water service
application process and lien process will be modified in the Utilities Department's Utilities Service
Policy Manual as needed to reflect the direction of the Council for reference. This includes modifying
applications to require residential services to be in the residential owner's name.
The general process in the draft ordinance is outlined below, and will be incorporated into the Utilities
Service Policy Manual:
• 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
• All new/ transfer residential requests for water services will now be in the residential owner's
name
• 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
• 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)
• All new/ transfer residential requests for water services will now be in the residential property
owner's name
• 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)
• Payment plan options are discussed if needed
• 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 set
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:
Page 175 of 344
Agenda Item #11.
• The Utilities Department bills 30 days after the water/ services are used (30 days in arrears)
• All new/ transfer residential requests for water services will now be in the residential property
owner's name
• 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
• New water utility requests will be in the name of the property owner
• 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)
• Payment plan options are discussed if needed
• 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 set
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
Attached are the following documents:
• The draft lien ordinance
• For reference, the same presentation given at the April 1st workshop updated with one bullet
added, slide 6, highlighted in a lighter blue referencing the Utilities Service Policy Manual
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.
QUDGET INFORMATION:
BUDGET AMOUNT N/A AMOUNT AVAILABLE N/A EXPENDITURE AMOUNT: N/A
FUNDING SOURCES: N/A IS THIS A PIGGYBACK:
❑ Yes 0 N/A
DID YOU OBTAIN 3 QUOTES?
❑ Yes 0 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 SELECTIONNot related to a procurement item
Page 176 of 344
Agenda Item #11.
ATTACHMENTS:Md
24.0509.Ord. 03-24 Water Service Liens Final Draft
24.0509.Lien Ordinance Presentation-FINAL
Page 177 of 344
Agenda Item #11.
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. SECTION 74-82. LIEN
FOR UNPAID SERVICE CHARGES. REVISING THIS SECTION TO
PROVIDE A PROCESS FOR THE VILLAGE SPECIAL MAGISTRATE
TO IMPOSE DELINQUENT UTILITY SERVICE CHARGES AGAINST
THE PROPERTIES SERVICED; PROVIDING THAT 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, current Village code states that unpaid water utility service charges
shall become a lien against the real property served, however, the code does not
contain any process for effectuating said liens; and
WHEREAS, based upon the recommendations from Village staff, the Village
Council desires to revise the code and establish procedures, including notice and a
hearing before the Village's Special Magistrate, for reducing unpaid water utility service
charges to liens upon the property served; and
WHEREAS, in conjunction with the adoption of this new procedure for securing
liens for unpaid water utility service charges, the Village's Utilities Department will also
revise its policy manual to include these procedures and to require all utility accounts to
be opened and maintained in the name of the property owner only; and
WHEREAS, the Village Council has determined that the code revisions
contained in this ordinance will serve 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 establish procedures, including notice and a hearing
1
Page 178 of 344
Agenda Item #11.
before the Village's Special Magistrate, for reducing unpaid water service charges to
liens upon the property served; providing that Sec. 74-82 shall hereafter read as follows:
Sec. 74-82. - Lien for unpaid service charges; notice of lien imposition to
consumers; public hearinas; recording of lien in public records of the county,
foreclosure of lien.
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, y
ho fnror+lnQoH h" thin- voll to � may be imposed, recorded, and foreclosed in the
following manner:
fa)The director of the utilities department, or his or her designee, shall send by
certified mail, a delinauencv 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 delinauencv and the
amount of the non-payment of water and/or other service charges. The
owners, tenants, or lessees shall severally and jointly be responsible for
water and/or other service charges.
Lb)The delinquency notice shall specify the delinauent billings, individual and
total, and shall notify the consumer and/or owner that the delinauencv must
be paid within 30 days from the date of the notice, and that if the consumer
fails to pay the delinauencv within 30 days of the date of notice that a lien
imposition hearing will take place in front of the village special maaistrate.
The notice shall state the date and time of the lien imposition hearina which
shall be the first available hearing date following the end of the delinquency
notice and shall notify the consumer of their right to attend, present
evidence, and dispute the imposition of the charaes at the hearing.
Uc Unless within 30 days the consumer and/or owner pays the amount of the
delinauencv the Village Special Magistrate may by an order imposina lien
levy such charges against the property served in the amount of the
delinauencv 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.
kW 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.
2
Page 179 of 344
Agenda Item #11.
Ue The assessment shall bear interest at the rate for iudaments at the time of
imposition required by Sec. 55.03(1), Florida Statutes, as that section may
be amended from time to time. The assessment shall be subject to
foreclosure if not fully paid within three years of the date of delinauency. The
lien shall be foreclosed in the same manner in which mortaaae liens are
foreclosed.
The village's Utilities Service Policy Manual shall include the above procedure for
securing liens for unpaid water utility charaes, as same may be amended from time to
time.
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 180 of 344
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