FINANCE DEPARTMENT
M E M O R A N D U
M
To: Honorable Mayor and City Commission
From:
By: Steven Chapman II, Finance
Director
Date: March 31, 2009
Subject: Second
Update:
At the February 24, 2009 City Commission meeting, the Commission approved the first reading of the attached ordinance updating utility billing procedure. Tonight, we are presenting the same ordinance for a second reading and final adoption.
Background:
At the November 13, 2007 Commission meeting, the Commission adopted Ordinance 07-11-1198 which authorized changes to the City’s utility billing and payment structure. During the same period of time, the City was working through a comprehensive change in its computerized accounting system. Recently it has come to the attention of the Finance Department that there are inconsistencies with the current utility ordinance and the billing procedures that are actually in place.
Section 70-6 “Billing Procedure; delinquent accounts” is inconsistent with itself. This inconsistency is leading to confusion with the utility customers that sometimes find themselves in a past due situation and do not understand what the City’s expectation is for compliance. Another circumstance that is not included in the current ordinance but is being felt by the City in practice, is the issue related to partial payment. The code is silent regarding a procedure for handling a partial payment situation. This occurs when a customer makes payment, but in an amount less than the minimum balance due. Currently the system is set up not to charge a late payment for this issue, but the City should codify the condition under which a late payment would in fact be justified.
As a result of these two conditions, an amendment to the ordinance is necessary to incorporate the billing procedural change as well as specify the responsibility of the Finance Director with respect to late payment fees on partial payments.
Recommendation
The
City Administration recommends that the Commission consider and approve the
attached Ordinance amending Chapter 70 of the Code of Ordinances of the City,
entitled “Utilities,” Section 70-6, thereof, entitled “Billing procedure; delinquent
accounts,” to permit the City to provide for consistent treatment of customer
billing .
ORDINANCE
NO.______________
AN ORDINANCE OF THE CITY OF NORTH LAUDERDALE, FLORIDA, AMENDING CHAPTER
70 OF THE NORTH LAUDERDALE CODE OF ORDINANCES, ENTITLED “UTILITIES”, BY
SPECIFICALLY AMENDING SECTION 70-6, ENTITLED “BILLING PROCEDURE, DELINQUENT
ACCOUNTS”: PROVIDING FOR AN AMENDMENT TO THE CITY’S BILLING PROCEDURES FOR
DELINQUENT UTILITY ACCOUNT PAYMENTS; PROVIDING FOR A LATE FEE FOR DELINQUENT
UTILITY PAYMENTS; PROVIDING FOR CODIFICATION; PROVIDING FOR CONFLICTS;
PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
WHEREAS, Section
70-6 of the City of North Lauderdale Code of Ordinances sets forth a billing
procedure for the City’s receipt of utility payments and offers a process for
handling such payments that are late or delinquent; and
WHEREAS, the
City’s professional staff has reviewed the City’s current practices and
procedures regarding utility billing in general, and late and delinquent
payments in particular, and concluded that certain revisions to the City’s
existing process may result in greater efficiency and better service to the
City’s utility customers; and
WHEREAS, the
current economic situation has resulted in a greater number of delinquent and
late payments, and the City is especially sensitive to the financial struggles
of the citizens and residents of the City, Broward County and the greater South
Florida region; and
WHEREAS, in
light of such exigent economic conditions, the City Commission, among other
things, desires to provide the Finance Director with specific discretion to
waive in certain instances the penalties for certain first incidences of late
payments of utility bills; and
WHEREAS, the
City Commission deems this revision to the City’s utility billing procedure to
be in the best interests of the citizens and residents of the City of
NOW, THEREFORE, BE IT ORDAINED BY THE CITY
COMMISSION OF THE
Section 1. The foregoing “Whereas” clauses are hereby ratified as true
and correct and incorporated herein by this reference.
Section 2. The City Commission of the City of North Lauderdale hereby amends Chapter 70 entitled "Utilities,” of the City of North Lauderdale Code of Ordinances, by amending Section 70-6, entitled “Billing Procedures, Delinquent Accounts”, as follows:
Sec. 70-6. Billing procedure; delinquent accounts.
(a) Bills for the city utility services shall be rendered once per month, based on the rate structure then in effect, and shall be due when rendered and delinquent 15 days subsequent to the billing date.
(b) If payment has not been received by the city by the delinquency date, a "past due" notice and a late payment fee, shall be applied to the customer's subsequent monthly bill.
(c) If "past due" payment is not received during regular business hours on the fourteenth (14) day following the "past due" notice, utility service will be disconnected.
(d) The Finance Director, or his/her designee, shall have the discretion to waive a first instance of a late payment fee based on the partial payment of an amount due at the time when a late fee would otherwise be applied.
Section
3. It is the intention of the
City Commission of the City of North Lauderdale
that the provisions of this Ordinance shall become and be made a part of the
Code of Ordinances of the City of North
Lauderdale, Florida, and that the Sections of this Ordinance may be
renumbered, re-lettered and the word “Ordinance” may be changed to “Section,”
“Article” or such other word or phrase in order to accomplish such intention.
Section 4. If any clause, section or other part of
this Ordinance shall be held by any court of competent jurisdiction to be
unconstitutional or invalid, such unconstitutional or invalid part shall be
considered as eliminated and in no way affecting the validity of the other
provisions of this Ordinance.
PASSED AND ADOPTED BY
THE CITY COMMISSION OF THE CITY OF
PASSED AND ADOPTED BY
THE CITY COMMISSION OF THE CITY OF
APPROVED AS TO FORM:
______________________________
SAMUEL S. GOREN
CITY ATTORNEY
____________________________________
MAYOR
JACK BRADY
ATTEST:
____________________________________
VICE
MAYOR JOHN R. CANGEMI
_______________________________________
PATRICIA VANCHERI,