HomeMy WebLinkAbout04.k. Authorize recording of certificates of unpaid charges for delinquenciesCentral Contra Costa Sanitary District ,[Y�
' BOARD OF DIRECTORS •
POSITION PAPER
Board Meeting Date: September 6, 2012
subject: ADOPT A RESOLUTION AUTHORIZING STAFF TO RECORD
CERTIFICATES OF UNPAID CHARGES AND TO RECORD RELEASES OF
CERTIFICATES OF UNPAID CHARGES WHEN PAYMENT HAS BEEN RECEIVED
Submitted by: Initiating Dept. /Div.:
Earlene Millier, Engineering Assistant III Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
C14 L1111-
E. Millier Bri tbill J. iyamoto -Mills K. Ann E. Farrell
General Manager
ISSUE: A resolution of the Board of Directors passed by a majority (three votes) is
needed to record a Certificate of Unpaid Charges to establish a lien on property owned
by a person who has not paid applicable fees and charges, or to release a lien.
RECOMMENDATION: Adopt a resolution authorizing staff to record certificates of
unpaid charges and to record releases of certificates of unpaid charges when payment
has been received.
FINANCIAL IMPACTS: Recording certificates of unpaid charges on property whose
owners have not paid applicable fees and charges will ensure collection of the
delinquent amount at or before eventual sale of the property.
ALTERNATIVES /CONSIDERATIONS: Do not approve the resolution. Staff would
then seek Board approval of a resolution to file a certificate of unpaid charges for each
property with delinquent charges, as these situations arise. It is possible that a property
could change hands while staff is seeking Board approval of a resolution, and in that
case, collecting the charges could become more complicated or impossible.
BACKGROUND: Placing delinquent charges on a property owner's tax bill ensures
that the District's charges are collected. The first installments of property tax bills are
normally mailed out in October and become delinquent on December 10 of each year.
Until that happens, unpaid charges placed on the tax bill are not secured.
California Health and Safety Code Section 6520.10 states that "... if any real property
to which the lien would attach has been transferred or conveyed prior to the date on
which the first installment of the taxes would become delinquent, then the lien shall not
attach to the real property and the charges shall be transferred to the unsecured roll."
Collecting the charges would likely be more complicated. Filing a certificate of unpaid
charges, however, makes it possible for the District to collect charges out of escrow if
the property changes hands before the tax bills are delinquent.
N: \ENVRSEC \Position Papers\Millier\2012 \9- 6 -12 \PP Certificate of Unpaid Charges 9 -6 -12 FINAL2.doc
POSITION PAPER
Board Meeting Date: September 6, 2012
subject. ADOPT A RESOLUTION AUTHORIZING STAFF TO RECORD
CERTIFICATES OF UNPAID CHARGES AND TO RECORD RELEASES OF
CERTIFICATES OF UNPAID CHARGES WHEN PAYMENT HAS BEEN RECEIVED
This resolution, if approved, would give staff the ability to file a certificate of unpaid
charges when the charges are first discovered and become delinquent after a property
owner has been notified of the charges and has been given 45 days to pay. After a
certificate of unpaid charges is filed, and if the charges are then paid, a release of the
certificate will be filed with the Contra Costa County Recorder's office.
A certificate of unpaid charges remains in effect for ten years after recording, and must
be re -filed if the District's charges are to remain secured.
The Budget and Finance Committee will consider this matter at the September 4, 2012
committee meeting.
RECOMMENDED BOARD ACTION: Adopt a resolution authorizing staff to record
certificates of unpaid charges and to record releases of certificates of unpaid charges
when payment has been received.
N: \ENVRSEC \Position Papers \Mi11ier\2012 \9- 6 -12 \PP Certificate of Unpaid Charges 9 -6 -12 FINAL2.doc
RESOLUTION NO. 2012 -076
A RESOLUTION AUTHORIZING STAFF TO RECORD A CERTIFICATE OF
UNPAID CHARGES TO ESTABLISH A LIEN ON PROPERTY AND TO
RECORD A RELEASE OF THE CERTIFICATE OF UNPAID CHARGES WHEN
PAYMENT HAS BEEN RECEIVED
WHEREAS, properties may have been connected to the sanitary sewer without
payment of appropriate capacity fees and other fees due; and
WHEREAS, when said fees and charges became delinquent, the Central Contra
Costa Sanitary District ( "District ") assessed delinquency charges, and since that
time has assessed penalties pursuant to provisions of District Code Section
1.08.080; and
WHEREAS, the District may elect to secure the delinquent charges by recording
a Certificate of Unpaid Charges in the office of the Contra Costa County
Recorder as authorized by Section 6520.12 of the California Health and Safety
Code; and
WHEREAS, the District considers it to be prudent to record a Certificate of
Unpaid Charges to secure the amount of the delinquent charges;
NOW, THEREFORE, be it resolved by the Board of Directors of the District:
1) THAT the General Manager is authorized to execute a Certificate of
Unpaid Charges to secure the amount of the delinquent charges; and
2) THAT District staff is authorized to record the Certificate of Unpaid
Charges in the office of the Contra Costa County Recorder; and
3) THAT District staff is authorized to record a Release of the Certificate
of Unpaid Charges when payment of the charges has been received.
Passed and adopted this 6th day of September, 2012 by the Board of Directors of
the Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
James A. Nejedly
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Resolution No. 2012 -076
Certificate of Unpaid Charges
Page 2 of 2
COUNTERSIGNED:
Elaine R. Boehme, CIVIC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm
Counsel for the District