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HomeMy WebLinkAbout7319_CCv0001.pdf RESOLUTION NO. 7319 A RESOLUTIONT OF THE CITY COUNCIL OF THE CITY OF REDLANDS ESTABLISHING A LIEN NOTIFICATION PROCESS POLICY WHEREAS, the City of Redlands provides utility services consisting of water, sewer; and solid waste and street cleaning to residential and non-residential properties located in the City's jurisdiction; and WHEREAS, there are some properties that do not receive all four services due to their locations within the City, and WHEREAS, in 2009, City staff implemented a lien notification process for those properties that receive solid waste and street cleaning services and solid waste service only, who together are commonly referred to as"solid waste only"customers; and WHEREAS, within this group of"solid waste only" customers, there are a large number of property accounts that are in a tenant's name, rather than the owner's name; and WHEREAS, in the event a tenant does not pay the "solid waste only" bill, the owner can be held responsible for the delinquent amount through the placement of a lien on the property pursuant to Section 13.64.050 of the Redlands Municipal Code;and WHEREAS, City staff has proposed revisions to its lien notification process to address questions and concerns recently raised by some"solid waste only"customers;and WHEREAS, the proposed changes to the process include setting a delinquency amount threshold of$100 for notification to an owner by certified mail that the property may be subject to a lien, rather than notification by regular mail of the same, and establishing the number of days past-due at 60 days or more to be considered a delinquent account for purposes of the notification; and WHEREAS, staff has formulated its notification process into a formal policy for consideration by the City Council; NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Redlands as follows: Section 1. The Lien Notification Process Policy attached hereto as Exhibit"A," is hereby adopted. 1 I:',cclerk\Re- olutits \Res 7300-739%7319-Adoption of Lien Notification Process Policy.doc ADOPTED, SIGNED ANIS APPROVED this 3ird day of September, 2013. A Pete Aguilar, Mayor ATTEST: e-144 -Sam Irwin, Ci Cl r I, Sam Irwin, City Cleric of the City of Redlands, hereby certify that the foregoing resolution was adopted by the City Council at a regular meeting thereof held on the 3'd day of September,2013,by the following vete: APES: Councilmembers Harrison, Poster, Gardner, Gilbreath, Mayor Aguilar NOES: None ABSTAIN: None ABSENT: None S Irwin, City Cl 2 Ukuler R lwimsWes 73€10-7399!7319-Adoption of Liar Notification ss Policy-doe EXHIBIT "A" City of Redlands POLICY & PROCEDURES Subject: ; Lieu Notification process Department: Finance Policy No. F-002-2013 bate of Last Update: 0910312013 Ordinance/Resolution No. 7319 Initial Issue Date:09/23/2009 Definitions: enQuest --CIS Customer Information System Data Base Background: The City of Redlands 'City" provides utility services consisting of water, sewer, solid waste and street cleaning to residential and non-residential properties located in the City's jurisdiction, However,there are properties that do not receive all four services dire to their location and/or boundaries of City's services. For the purpose of this process, our focus is on properties that receive solid waste and street cleaning;services or solid este service only. Properties in these two groups are commonly referred to as"solid waste only" customers, Additionally,within this group of"solid waste only" customers, there are a large number of accounts that are in the tenant's name, not the owner's name. In the event the tenant does not pay his/her"solid wasteon4c" bill, the owner can be held responsible pursuant to Section 13.64.050 of the Redlands Municipal Code. Instruction. Ie New Customers_During theset-up process for"solid waste orris'' accounts,the customer service representative will make every attempt to determine if the customer is an owner or a tenant. If it is determined that the customer-is a tenant, the customer service representative will request the name, address and phone number of the owner. This o er information will be shred in an Excel spreadsheet for records purposes. Additionally, this information will be used to send a notice _(Exhibit 1 to the owner advising hi `her that he/she can be held responsible for any future delinquent charges incurred by the tenant. This is in compliance with Redlands Municipal Code 13,64.050; which states in part, "The city may notice a properq,owner that an application for itfility account kas been received by the chyfrom a person requesting utility-services utility—servicesin a nwwtkan the owner of the property to be serviced....." . Existing Customers—for all accounts, whether the account holder is a.tenant or a property owner, the normal collection process is followed. However, for those accounts that are in the name of tenant and have not responded to the"Final -Notice," notification(Exhibit ill be mailed to the property owner on file advising of the delinquent status and that the property owner can be held responsible as stated in Redlands Municipal Code section 13.64.050, which father states, "... in tke event of nonpayntentany rtion oft e municipal services state end any charges for service shall be deemed the responsibility of the property owner and may result in a lien against the property. This notification also advises the owner that he/she may directly assume responsibility for this service,if he/she chooses. 3. Annual Review–On an annual basis, all "solid waste only" accounts that have delinquent unpaid charges will be reviewed for possible collection via county tax rolls. For those accounts that meet the"Delinquent Customer Criteria,"a special notification will be mailed to the property owner advising that these delinquent charges can be added to their property taxes,if not paid-in-full by the deadline provided. a. Notification Process and "Delinquent Customer Criteria"–On or about June 30 of each year,a preliminary list of all"solid waste only"accounts that have a delinquent balance equal to or greater than 60 days past due will be created. This list will be used to mail a Notice of Public Hearing(Exhibit 3)-- 10 days in advance of such hearing—to each property owner. Accounts with delinquent balances equal to or greater than$100 will receive the notification via certified mail. For accounts with delinquent balances less than$100, a notification will be sent regular mail. This is in compliance with Redlands Municipal Code Section 13.64.060, which states, "In addition to any other remedies it may have for the collection of delinquent accounts,the city may cause notice of a hearing on delinquent accounts in accordance with Government Code sections 25830.1 and 38790.1. Such notice shall be mailed to property owners listed as delinquent accounts not less than ten (10) days prior to the date of the hearing.At the hearing, the city council shall hear any objections or protests of such property owners. The city council may make such revisions,corrections or deletions to the report of delinquent accounts as it deems just,after which, by resolution, the report shall be confirmed, The delinquent charges set forth in the delinquent account report may be placed as a lien on such properties for the amount of such delinquent charges plus legal fees and administration costs.A certified copy of the confirmed report shall be filed with the city clerk,for the current tax roll. The lien created attaches upon recordation,in the office of the county recorder, of a certified copy of the resolution of confirmation.All laws applicable to the 16y,collection and enforcement of city ad valorem property taxes shall be applicable to such liens." b. Reporting to County Auditor/Controller-Recorder-On or around September 3 of each year a final list of all "solid waste only„accounts that are past due 60 days or more will be created. This list,containing parcel number and delinquent balance owed,is provided to the County Auditor/Controller-Recorder's Property Tax Division,for inclusion on the property owner's bi-annual tax bill. c. Removal of Delinquent Balance Owed from Utility Account–Once a"solid waste only" account is referred to the county for collection of a delinquent balance,the amount owed is then removed from the customer's utility bill with the City of Redlands. A-2) 1:\ccIcrkMmIutions\Res 7300-739317319-Adoption of Lien Notification Process Policy.doc EXHIBIT I Date <<OWNER NAME>> <<STREET NO>> <<STREET NAME>> <<CITY>> <<STATE>> <<ZIP>> Re-, Property located at: <<PREMISE ADDRESS>> Chapter 13.64 of the City of Redlands Municipal Code provides that any charges for City solid waste services to a property are the responsibility of the owner of that property, regardless of whether such services are established by a person other than the owner of the property, such as a tenant renting the property. In compliance with Redlands Municipal Code Section 13.64.050 C, the City of Redlands is notifying owners of property that, as an owner of such property, you may be held liable for any unpaid, delinquent solid waste service charges that may be accrued by a tenant of your property. In the event that the payment status of this solid waste account becomes delinquent in the future, the City may exercise its right to pursue any and all remedies for collection in accordance with Redlands Municipal Code Section 13.64.060. If you have any questions regarding this notification, or would like to directly assume responsibility for payment of the City's solid waste services bill for the above property, please contact our customer service group at 909-798-7516. A copy of Redlands Municipal Code Sections 13.64.050 C and 13.64.060 is enclosed for your review. Sincerely, Tina T. Kundig Finance Director Enclosure.- Redlands Municipal Code Sections 13.64.050 C and 13.64.060 Exhibit I -Page I L\cclerklResolutionstit cs 7300-7399\7319-Adoption of Lien Notification Process Policy,doc RMC 13.64.050: BILLING AND DEPOSIT FOR SOLID WASTE SERVICES: C. The city may notice aproperty owner that an application for utility account has been received by the city from a person requesting utility services in a name other than the owner ref the property to be serviced, and that in the event of nonpayment of arty portion of the municipal services statement, any charges for service shall be deemed the responsibility of the property owner and may result in a lien against the property. (Ord, 24315 1, 2000: Ord. 2382§1, 1998). RMC 13.64.060: FAILURE TO PAY CHARGES: A. Solid waste charges may be included in the city's municipal services statement. Failure to pay any part of the municipal services statement, including the solid waste charge, shall result in the delinquency of such statement, actionable as a civil debt to the city. B. In addition to any other remedies it may have for the collection of delinquent accounts, the city may cause notice of hearing on delinquent accounts in accordance with Government Code sections 25830.1 and 38790.1. Such notice shall be mailed to property owners listed as delinquent accounts not less than ten (10) days prior to the date of the hearing. At the hearing, the city council shall hear any objections or protests of such property owners. The city council may make such revisions, corrections or deletions to the report of delinquent accounts as it deems just, after which, by resolution, the report shall be confirmed The delinquent charges set forth in the delinquent account report may be placed as a lien on such properties for the amount of such delinquent charges plus legal fees and administration costs. A certified copy of the confirmed report shall be filed with the city clerk for the current tax roll. The lien created attaches upon recordation, in the office of the county recorder, of a certified copy of the resolution of confirmation. All laws applicable to the levy}, collection and enforcement of city ad valorem property taxes shall be applicable to such liens. (Ord. 2382§ 1, 1998) Exhibit I —Page 2 1:\cclerklResolrftionsiRes 7300-7399\7319-Adoption of Lien Notification Process Policy,doc EXHIBIT 2 Date oOWNER NAME)) <<STREE1:--)> <<STREET-NAME>> oCITY)> (<State)> eZIP>> Re: Property located at: <<PREMISE ADDRESS>> In compliance with Redlands Municipal Code Section 13.64.050 C, owners of property being used for rental purposes may be held liable for any unpaid, delinquent solid waste service charges that may be accrued by their tenant. Currently, our records indicate that your tenant's account is delinquent. In the event that the payment status of this solid waste account remains delinquent, the City may exercise its right to pursue any and all remedies for collection in accordance with the Chapter 13.64 of the Redlands Municipal Code. This may include placing a lien on your property. To determine if the delinquent balance owed has been paid or if you would like to directly assume responsibility for payment of the municipal utility services bill for the above property, please contact our customer service group at 909-798-7529. Copies of Redlands Municipal Code Sections 13.64.050 C and 13.64.060 have been included for your convenience. Sincerely, Tina T. Kundig Finance Director Enclosure: Redlands Municipal Code Sections 13.64.050 C and 13.64.060 Exhibit 2-Page I V,cclerk\ResolutioniMes 7300-7399\7319-Adoption of Lien Notification Process Poticydoe RMC 13.64.060: BILLING AND DEPOSIT FOR SOLID WASTE SERVICES: C. The city may notice a property owner that an application for utility account has been received by the city from a person requesting utility services in a name other than the owner of the property to be serviced, and that in the event of nonpayment of any portion of the municipal services statement, any charges for service shall be deemed the responsibility of the property owner and may result in a lien against the property. (Ord. 24315 1, 2000: Ord 2382§1, 1998). RMC 13.64.060: FAILURE TO PAY CHARGES: A. Solid waste charges may be included in the city's municipal services statement. Vailure to pay any part of the municipal services statement, including the solid waste charge, shall result in the delinquency of such statement, actionable as a civil debt to the city. B. In addition to any other remedies it may have for the collection of delinquent accounts, the city may cause notice of hearing on delinquent accounts in accordance with Government Code sections 25830.1 and 38790.1. Such notice shall be mailed to property owners listed as delinquent accounts not less than ten (10) days prior to the date of the hearing. At the hearing, the city council shall hear any objections or protests of such property owners. The city council may make such revisions, corrections or deletions to the report of delinquent accounts as it deems just, after which, by resolution, the report shall be confirmed. The delinquent charges set forth in the delinquent account report may be placed as a lien on such properties for the amount of such delinquent charges plus legal fees and administration costs. A certified copy of the confirmed report shall be filed with the city clerk,for the current tax roll. The lien created attaches upon recordation, in the office of the county recorder, of a certified copy of the resolution of confirmation. All laws applicable to the levy, collection and enforcement of city ad valorem property taxes shall he applicable to such liens. (Ord 2382§1, 1998) Exhibit 2—Page 2 L\"Ierk�ResolufioatskRcs 7300-73W%7119-Adoption of Lien Notification Proms Policydoc EXHIBIT 3 DATE <<OWNER NAME>> <<STREET NO>> <<STREET NAME>> <<CITY>> <<STATE>> <<ZIP>> RE- APN # <<PARCEL #>> PREMISE ADDRESS: <<PREMISE ADDRESS>> DELINQUENT BALANCE AS OF THIS NOTICE- $<<AMOUNT OWED>> NOTICE OF PUBLIC HEARING This notice is to inform you that on <<MONTH>> <<DAY>>, <<YEAR>> at <<TIME>> p.m. in the City of Redlands Council Chambers located at 35 Cajon St., Suite 2, Redlands, California, the Redlands City Council will hold a public hearing to consider the submittal of a report to the Auditor of San Bernardino County for recordation of a Special Assessment on the <<YEAR-YEAR>> tax roll against your property resulting from non-payment of a City of Redlands municipal services account. As the property owner of record, you have the opportunity to present to the City Council comments and/or testimony regarding this matter. To prevent this impending lien action, please remit your past due balance in full no later than <<DAY>>, on <<MONTH>> <<DAY>>, <<YEAR>>. For questions regarding this matter, please contact Cindy Tryon, Utilities Customer Service Supervisor, at 909-798-7678, Extension 1, or Karin Grance, Revenue Manager, at 909-798-7596. Exhibit 3 —Page I hoclerk\RcsolationsWes 7300-7399\7319-Adoption of Lien Notification Ptocess Policy.doc