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HomeMy WebLinkAbout10352As Amended December 12, 2022 ORDINANCE NO. 10352 AN ORDINANCE AMENDING SECTIONS 7-1-3, 7-3-5, 7-3-42, AND 7-4-4, AND CREATING NEW CHAPTER 9 OF TITLE VII OF THE PUEBLO MUNICIPAL CODE RELATING TO LIENS FOR NUISANCES, LITTER, JUNK VEHICLES, WEEDS, AND VACANT PROPERTY REGISTRATION, AND EXPANDING THE REMEDIES TO COLLECT SUCH LIENS TO INCLUDE FORECLOSURE AND ASSIGNMENT BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Section 3 of Chapter 1 of Title VII of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 7-1-3. - Cost of abatement. . . . (b) In all cases where the Mayor, Fire Chief or Health officer shall incur any expense for abating any nuisance found upon any lot or premises, the expense of such abatement plus twenty-five percent (25%) for incidental costs plus interest at the rate of ten percent (10%) per annum shall be assessed against the lot or premises upon or on account of which such expense was incurred, or from which such nuisance was abated, removed or corrected. A bill for such expense shall be mailed to the owner, occupant, or the person who shall have caused or permitted the condition to exist. The cost of such abatement, removal or correction and such incidental costs, plus interest at the rate of ten percent (10%) per annum, shall be assessed jointly and severally against the owner and occupant of such property, and the person who shall have caused or permitted the condition to exist, if different. The City may pursue all civil collection remedies and recover the amount of such charges together with all collection expenses, including reasonable attorneys' fees and costs. In addition, upon recording in the County Clerk and Recorder's office of a statement under oath of the Mayor showing the cost thereof and describing the property, such assessment shall be and constitute a perpetual lien on the property having priority over all other liens, except general tax liens, and such lien shall remain in full force and effect until such charges and interest have been paid in full. The City may collect such lien by sale, assignment or foreclosure. An assignee of such lien may collect such lien in any manner available to the City in their own name subject to all claims and defenses and subject to the limitations and requirements of Chapter 9 of Title VII of this Code, but may not assess it to the tax roll. As an exclusive remedy for the City, \[I\]in case such assessment lien is not paid within six (6) months of recording, the assessment may be certified by the City Clerk to the county treasurer who shall collect the assessment, together with a ten percent (10%) penalty for cost of collection, in the same manner as other taxes are collected. The laws of this state for assessment and collection of general taxes, including the laws for the sale and redemption of property for taxes, shall apply to the collection of such assessments. All remedies provided in this Chapter are cumulative. . . . SECTION 2. Section 5 of Chapter 3 of Title VII of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 7-3-5. - Unlawful not to remove, charges, lien. . . . (b) If the owner or occupant of such real property is given notice of not less than ten (10) days, and shall fail or refuse to remove all such debris, trash, litter and rubbish from such property and dispose of the same, the Mayor is authorized to cause the abatement and removal of such litter, debris, trash and rubbish from said real property. The cost of such abatement and removal plus twenty-five percent (25%) for incidental costs plus interest at the rate of ten percent (10%) per annum shall be charged against the property or the owner or the occupant of such property. A bill for such expense shall be mailed to the owner or occupant of the property. The cost of such abatement and removal and such incidental costs, plus interest at the rate of ten percent (10%) per annum, shall be assessed jointly and severally against the owner and occupant of such property. The City may pursue all civil collection remedies and recover the amount of such charges together with all collection expenses, including reasonable attorneys' fees and costs. In addition, upon recording a verified statement by the Mayor in the office of the County Clerk and Recorder to show such costs and describing the property, such assessment shall be and constitute a perpetual lien on the property having priority over all other liens except general tax liens and shall remain in full force and effect until such charges and interest have been paid in full. The City may collect such lien by sale, assignment or foreclosure. An assignee of such lien may collect such lien in any manner available to the City in their own name subject to all claims and defenses and subject to the limitations and requirements of Chapter 9 of Title VII of this Code, but may not assess it to the tax roll. As an exclusive remedy for the City, \[I\]i case such assessment lien is not paid within six (6) months of recording, the assessment may be certified by the City Clerk to the county treasurer who shall collect the assessment, together with a ten percent (10%) penalty for cost of collection, in the same manner as other taxes are collected. The laws of this state for assessment and collection of general taxes, including the laws for the sale and redemption of property for taxes, shall apply to the collection of such assessments. All remedies provided in this Chapter are cumulative. . . . SECTION 3. Section 42 of Chapter 3 of Title VII of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 7-3-42. - Removal procedure; expense. If the owner or occupant of any premises upon which a junked vehicle exists fails to have such vehicle lawfully disposed of within ten (10) days after the date of said notice, the Mayor is authorized to abate the nuisance by removing and storing said vehicle, by contract or otherwise, in such a manner as he or she may deem in the best interest of the City. The cost of such abatement and removal plus twenty-five percent (25%) for incidental costs plus interest at the rate of ten percent (10%) per annum shall be charged against the property or the owner or the occupant of such property. A bill for such expense shall be mailed to the owner or occupant of the property. The cost of such abatement and removal and such incidental costs, plus interest at the rate of ten percent (10%) per annum, shall be assessed jointly and severally against the owner and occupant of such property. The City may pursue all civil collection remedies and recover the amount of such charges together with all collection expenses, including reasonable attorneys' fees and costs. In addition, upon recording a verified statement by the Mayor in the office of the County Clerk and Recorder to show such costs and describing the property, such assessment shall be and constitute a perpetual lien on the property having priority over all other liens except general tax liens and shall remain in full force and effect until such charges and interest have been paid in full. The City may collect such lien by sale, assignment or foreclosure. An assignee of such lien may collect such lien in any manner available to the City in their own name subject to all claims and defenses and subject to the limitations and requirements of Chapter 9 of Title VII of this Code, but may not assess it to the tax roll. As an exclusive remedy for the City, \[I\]in case such assessment lien is not paid within six (6) months of recording, the assessment may be certified by the City Clerk to the county treasurer who shall collect the assessment, together with a ten percent (10%) penalty for cost of collection, in the same manner as other taxes are collected. The laws of this state for assessment and collection of general taxes, including the laws for the sale and redemption of property for taxes, shall apply to the collection of such assessments. All remedies provided in this Chapter are cumulative. SECTION 4. Section 4 of Chapter 4 of Title VII of the Pueblo Municipal Code is hereby amended to read as follows: Sec. 7-4-4. - Removal or destruction by City. The Mayor may abate, cut, cause to be cut or destroyed and remove weeds in excess of ten (10) inches in height from any land within the City if the owner or occupant of said property has failed to abate, cut, destroy or remove said weeds within ten (10) days of service of a notice directing him or her to do so. The cost of such abating, cutting or removal, together with twenty-five percent (25%) thereof, or one hundred dollars ($100.00), whichever is greater, for administrative and incidental costs, plus interest at the rate of ten percent (10%) per annum, shall be assessed against the property, or the owner or the occupant of such property. A bill for such expense shall be mailed to the owner or occupant of the property. The cost of such abatement and removal and such incidental costs, plus interest at the rate of ten percent (10%) per annum, shall be assessed jointly and severally against the owner and occupant of such property. The City may pursue all civil collection remedies and recover the amount of such charges together with all collection expenses, including reasonable attorneys' fees and costs. In addition, upon recording a verified statement by the Mayor in the office of the County Clerk and Recorder to show such costs and describing the property, such assessment shall be and constitute a perpetual lien on the land having priority over all other liens, except general tax liens, and such lien shall remain in full force and effect until such charges and interest have been paid in full. The City may collect such lien by sale, assignment or foreclosure. An assignee of such lien may collect such lien in any manner available to the City in their own name subject to all claims and defenses and subject to the limitations and requirements of Chapter 9 of Title VII of this Code, but may not assess it to the tax roll. As an exclusive remedy for the City, \[I\]in case such assessment lien is not paid within six (6) months of recording, the assessment may be certified by the City Clerk to the county treasurer who shall collect the assessment, together with a ten percent (10%) penalty for cost of collection, in the same manner as other taxes are collected. The laws of this state for assessment and collection of general taxes, including the laws for the sale and redemption of property for taxes, shall apply to the collection of such assessments. All remedies provided in this Chapter are cumulative. SECTION 5. Chapter 9 of Title VII of the Pueblo Municipal Code is created to read as follows: CHAPTER 9 – Sale and Assignment of Liens Encumbering Real Property. Sec. 7-9-1. - Notice of Sale. No less than thirty (30) days prior to listing a lien for sale and assignment, the City shall publish notice of its intent to sell and assign the lien once in a newspaper of general circulation within the City, identifying any lien to be sold and assigned by type, encumbered property address or legal description, and amount due. The notice shall also be served by certified mail, postage prepaid addressed to the owner of the property or any other party holding an interest in the affected real property as the party's name and address appears on the last assessment roll of the county, if such so appears, or as known to the City Clerk. Sec. 7-9-2. – Opportunity to Cure. An owner or other party may pay the amount due to the City, including interest and costs, and cure the default any time before an auction to sell and assign a lien, or other action to enforce payment of the lien, concludes. Sec. 7-9-3. - Sale and Approval. The City may accept less than the face value of the lien as payment in full for the sale or assignment. An assignee shall be responsible for paying all costs incident to sale or assignment, including administrative fees such as publication costs, service of process fees, title insurance or related costs, document recording fees, legal fees, and any other associated costs; any taxes due; and any fee for commission or buyer’s premium, not to exceed fifteen percent (15%) of the purchase price of the lien, imposed by either the City or a vendor selling the lien on behalf of the City, as a fee for administering the sale. SECTION 6. The officers and staff of the City are authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 7. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on November 28, 2022. Final adoption of Ordinance by City Council on December 12, 2022 . President of City Council Action by the Mayor: ☒ Approved on December 19, 2022 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk As Amended December 12, 2022 City Clerk’s Office Item # R-4 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 12, 2022 TO: President Lawrence W. Atencio and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Lisa Macchietto, Assistant City Attorney SUBJECT: AN ORDINANCE AMENDING SECTIONS 7-1-3, 7-3-5, 7-3-42, AND 7-4-4, AND CREATING NEW CHAPTER 9 OF TITLE VII OF THE PUEBLO MUNICIPAL CODE RELATING TO LIENS FOR NUISANCES, LITTER, JUNK VEHICLES, WEEDS, AND VACANT PROPERTY REGISTRATION, AND EXPANDING THE REMEDIES TO COLLECT SUCH LIENS TO INCLUDE FORECLOSURE AND ASSIGNMENT SUMMARY: This Ordinance amends the sections of the municipal code that provide for collection of nuisance abatement and vacant property liens. It expands the remedies available to the City to include foreclosure and assignment, and provides that any assignee of a City lien may use any of the remedies listed and collect the debt evidenced by the lien in their own name as if it was the City itself collecting. PREVIOUS COUNCIL ACTION: On September 14, 2015, Council approved Ordinance No. 8917, which levied interest of ten percent (10%) on unpaid balances and expanded the collection remedies the City may pursue to include all civil remedies and certification to the County Treasurer’s tax roll. On March 26, 2018, Council approved Ordinance No. 9249, which amended the code provisions concerning litter and storage receptacles, and provided new violations thereof and powers of the Municipal Court to impose conditions at sentencing to deter future violations. On June 11, 2018, Council approved Ordinance No. 9296, which implemented the Mayor-Council form of government and made amendments to Title VII to remove refences to the City Manager and replace them with references to the Mayor. On April 17, 2021, Council approved Ordinance No. 9930 adding Chapter 9 to Title IV of the Pueblo Municipal Code generally referred to as the Vacant Property Registration Ordinance, and providing penalties for violation thereof, and authorizing the City to file liens for unpaid penalties. BACKGROUND: Currently, the City can pursue various civil collection remedies to collect the debt secured by its nuisance abatement and vacant property liens. Expanding the collection remedies available to it to include assignment and foreclosure of the liens will aid the City in increasing its collection rate. Assignment, in particular, is an effective and efficient means of collecting debt secured by liens because it allows the City to sell the lien to a third party, and then that third party may proceed in their discretion and in a manner they deem desirable to collect the debt. Foreclosure is also an effective collection remedy because it would allow the City to foreclose on its liens in court. This process could conclude in the City collecting its debt and costs when an owner or other interested party redeems the property by paying the debt due, or if not redeemed, in the City becoming the new owner of the property at the end of the foreclosure action. FINANCIAL IMPLICATIONS: The City’s Finance Department oversees the collection of debt due for nuisance abatements and vacant property registration requirements. When the debt due is not paid within a time certain, a lien is recorded to secure the payment of the debt. By expanding collection remedies, the City will likely increase its collection rate resulting in fewer unpaid accounts and more timely collections. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance does not pass it will not be possible for the City to pursue collection of the liens by assignment to a third party. RECOMMENDATION: Passage of the Ordinance. Attachments: None