§ 25-32. Lien for failure to pay water and sewer charges.

(a)

Fees and charges prescribed by this chapter may be recovered by the city by an action at law or suit in equity, and shall constitute a lien against the property, ranking on a parity with liens for unpaid taxes.

(b)

A lien may be placed on the property in the amount of up to three (3) months of delinquent water and sewer charges, plus any applicable penalties and interest on the delinquent charges, plus reasonable attorney fees and other costs of collection not exceeding twenty percent (20%) of the delinquent charges. In no case shall a lien for less than twenty-five dollars ($25.00) be placed against the property. In the case of services to a tenant, unless water is required to be provided pursuant to subsection 25-31(a) above or other applicable law, or a payment extension plan has been entered into pursuant to section 25-34 below, if the city does not cease supplying water to the tenant within sixty (60) days after the bill becomes delinquent, there shall be no lien placed on the property for charges and collection costs beyond the 60-day period and no recourse against the property owner for service beyond the 60-day period.

(c)

A lien may be placed on the property for water and sewer services used by a tenant only if the city has:

(1)

Advised the property owner in writing that a lien may be placed on the property if the tenant fails to pay any delinquent water and sewer charges;

(2)

Mailed by first-class mail to the property owner, or sent electronically if requested by the property owner, at the address listed in the written authorization from the property owner (or such other address as the owner may provide), a duplicate copy of the final bill sent to the tenant at the time of sending the final bill to the tenant;

(3)

Applied the security deposit held by the city to the payment of the outstanding balance;

(4)

Employed reasonable collection efforts and practices to collect amounts due from the tenant including filing for the Set-Off Debt Collection Program if the city is a participant; and

(5)

Provided the property owner with thirty (30) days' written notice with a copy of the final bill to allow the property owner a reasonable opportunity to pay the amount of any outstanding balance and avoid the recordation of a lien against the property.

If the property owner fails to pay the amount of the outstanding balance within the 30-day period, the city may record a lien in the amount of the outstanding balance against the property owner. Upon payment of the outstanding balance, or any portion thereof, or of any amounts of such fees and charges owed by the former tenant, the property owner shall be entitled to receive any refunds and shall be subrogated against the former tenant in place of the city in the amount paid by the property owner. The city shall execute all documents necessary to perfect such subrogation in favor of the property owner.

(d)

Unless a lien has been recorded against the property owner, the city shall not deny service to a new tenant who is requesting service at a particular property address based upon the fact that a former tenant has not paid any outstanding fees and charges charged for the use and services in the name of the former tenant. The city shall provide information relative to a former tenant or current tenant to the property owner upon request of the property owner. If the property owner provides the city with a request to be notified of a tenant's delinquent water and sewer bill and provides an email address, the city shall send the property owner notice when a tenant's water and sewer bill has become fifteen (15) days delinquent.

(e)

The lien shall not bind or affect a subsequent bona fide purchaser of the real estate for valuable consideration without actual notice of the lien until the amount of such delinquent charges is entered in the official records of the office of the clerk of the circuit court for the city. The clerk shall make and index the entries in the clerk's official records for a fee of five dollars ($5.00) per entry, to be paid by the locality and added to the amount of the lien.

(f)

The lien on any real estate may be discharged by the payment to the city of the total lien amount and the interest which has accrued to the date of the payment. The city shall deliver a fully executed lien release to the person making the payment. The city shall provide the fully executed lien release to the person who made payment within ten (10) business days following the payment if the person who made the payment did not personally appear at the time of the payment. Upon presentation of the lien release, the clerk shall mark the lien satisfied. There will be no separate clerk's fee for the lien release.

(Ord. No. 14-1700-959, § 1, 10-21-14; Ord. No. 16-1700-987, § 1, 5-3-16)

(Ord. No. 14-1700-959, § 1, 10-21-14; Ord. No. 16-1700-987, § 1, 5-3-16)