Loading...
2013-28203 Reso RESOLUTION NO. 2013-28203 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING REVISED ADMINISTRATIVE GUIDELINES FOR UTILITY BILLING DEPOSITS, SHUT-OFFS, AND PAYMENT PLANS AS RECOMMENDED BY THE FINANCE AND CITYWIDE PROJECTS COMMITTEE. WHEREAS, the Miami Beach City Commission, at its October 24, 2012 meeting, referred two discussion items regarding customer deposits and the implementation of rules and regulations for utility accounts to the Finance and Citywide Projects Committee (F&CWPC)for discussion;and WHEREAS, both referrals requested staff review current procedures for deposits and explore deposit policies used by other entities such as Miami-Dade County Water and Sewer; and WHEREAS,the City Commission,at its December 12,2012 meeting,additionally referred an item to the F&CWPC regarding shut-off procedures for delinquent accounts; and WHEREAS, City Administration has surveyed neighboring communities and utility companies for a comparison of utility billing deposit, shut-off, and payment plan practices and policies and has brought forth this analysis to the F&CWPC for review; and WHEREAS, the F&CWPC, at its January 24, 2013 meeting, unanimously recommended several modifications to the Administrative Guidelines for utility billing deposits, payment plans and shut-offs; and WHEREAS,the F&CWPC recommends holding a two month deposit on residential homes and condominiums and maintaining a three month deposit on commercial and apartment building accounts; and WHEREAS, the F&CWPC further recommends that the City pay interest on customer deposits at the annual interest rate earned by the City; and WHEREAS, the F&CWPC additionally recommends crediting customer deposits for residential homes and condominiums after 24 months of timely payments; and WHEREAS,in addition,the F&CWPC recommends establishing a new practice of extending payment extensions to customers requesting an additional two weeks to pay their utility accounts in an effort to avoid a service disconnection and bring their account back into current status; and WHEREAS, the F&CWPC also recommends establishing fixed guidelines for payment agreements for shut-off utility accounts; and WHEREAS,the revised Administrative Guidelines recommended by the F&CWPC, and as more fully set forth in the Commission Memorandum accompanying this Resolution and in Exhibit A hereto, are approved by the City Commission. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,that the Mayor and City Commission hereby adopt the Administrative Guidelines for utility billing deposits, shut-offs, and payment plans as recommended by the Finance and Citywide Projects Committee and as more fully set forth in the Commission Memorandum accompanying this Resolution and in Exhibit A hereto. PASSED AND ADOPTED this 8"' day of May, 2013. ATTEST: Matti HefrerEf Bower, Mayor Rafael Granado, City Clerk F,9 APPROVED AS TO �P FORM &LANGUAGE 'y &FOR CUTION 1SORP ORATED' TAAGENDA\2013\May 8\UTB Administrtative Guidelin R so. oc CH 26 , it ttorney ate Exhibit A Revised Administrative Guidelines Utility Billing Deposits Policy Type of Current Proposed Current Proposed Current Proposed Utility Deposit Deposit Interest Interest Deposit Deposit Account Amount Amount Paid Paid Refund Refund On on Policy Policy Deposits Deposits Residential Three Two City Credited to Credited to and Months Months N/A Interest account account after Condominium of of Rate when 24 months of Average Average Earned, account is timely Service Service Credited closed payments Annually Commercial Three Three City Credited to Credited to and Months Months N/A Interest account account when Apartment of of Rate when account is Buildings Average Average Earned, account is closed Service Service Credited closed Annually Payment Plan and Disconnection Policy Payment Extensions Extensions Initial Payment Due Final Payment Due 1 st Two-Week Extension $0.00 initially Total Balance Due at end 2nd Week 2 nd Two-Week Extension 50% of Outstanding Total Balance Due at end Balance 2nd Week Payment Agreements Description Amount Due First Shut-Off 30% balance due for reconnection, 35% balance due month two, and 35% balance due month three. 2nd Shut-Off 50% balance due for reconnection, 50% balance due next billing due date. 3`d Shut-Off 75% balance due for reconnection, 25% balance due next billing due date. 4 1h Shut-Off Apply Deposit, 100% balance due for reconnection. Three-month deposit due, billed over three months. COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Adopting Administrative Guidelines For Utility Billing Deposits, Shut-Offs And Payment Plans As Recommended By The Finance And Citywide Projects Committee. Key Intended Outcome Supported: Increase community satisfaction with City Government. Supporting Data(Surveys, Environmental Scan,etc.): 87%of residents rated Miami Beach as an excellent or good place to live. Item Summa /Recommendation: The Administration recommends that the City Commission approve the item. At the October 24,2012 City of Miami Beach Commission(City Commission)meeting,two discussion items regarding customer deposits and the implementation of rules and regulations for utility accounts were referred to the Finance and Citywide Projects Committee(F&CWPC)for discussion. The City Commission, at their December 12, 2012 meeting, additionally referred an item regarding shut-off procedures for delinquent accounts. Administration has surveyed neighboring communities and utility companies for a comparison of deposit practices and policies. This analysis was brought forth to the F&CWP Committee for review. That F&CWPC,at their January 24,2013 meeting,heard a discussion item regarding utility deposits,shut offs and payment plans. The Committee recommends holding a two month deposit on residential homes and condominiums and maintaining a three month deposit on commercial and apartment building accounts. The Committee further recommended the City pay interest on customer deposits at the annual interest rate earned by the City. The Committee additionally recommended crediting customer deposits for residential homes and condominiums after 24 months of timely payments. The F&CWPC also recommended establishing a new practice of extending payment extensions to customers requesting an additional two weeks to pay their utility accounts in an effort to avoid a service disconnection and bring their account back into current status. The F&CWPC also recommended establishing guidelines for payment agreements: Advisory Board Recommendation: The Finance and Citywide Projects Committee,at their January 24,2013 meeting,recommended the proposed changes be approved by the Commission. Financial Information: Source of Amount Account Approved Funds: 2 3 4 OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Patricia D. Walker, ext. 6461 Sign-Offs: Department Dir r Chief Finand Off' r City Manager GPE PDW JLM T:\AGENDA\2013\May 8\ TB—Administrative Guidelines Sum.doc AGENDA( ITEM G 7 F A / V IA/01BEACH DATE 54-1 IM MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of t e City Commission FROM: Jimmy L. Morales, City Manager DATE: May 8, 2013 SUBJECT: A RESOLUTION OF THE MAY R AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING ADMINISTRATIVE GUIDELINES FOR UTILITY BILLING DEPOSITS, SHUT-OFFS AND PAYMENT PLANS AS RECOMMENDED BY THE FINANCE AND CITYWIDE PROJECTS COMMITTEE. ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the resolution. BACKGROUND At the October 24, 2012 City of Miami Beach Commission (City Commission) meeting, two discussion items regarding customer deposits and the implementation of rules and regulations for utility accounts were referred to the Finance and Citywide Projects Committee (F&CWPC) for discussion. Both referrals requested staff review current procedures for deposits and explore deposit policies used by other entities such as Miami-Dade County Water and Sewer. The City Commission, at their December 12, 2012 meeting, additionally referred an item to the F&CWPC regarding shut-off procedures for delinquent accounts. The F&CWPC, at their January 24, 2013 meeting, heard a discussion item regarding utility deposits, shut offs and payment plans. The City Commission, at their March 13, 2013 meeting, approved the minutes from the January 24, 2013 F&CWPC meeting. The F&CWPC and City Commission, over the course of the last few years, have endorsed various initiatives to assist residents and businesses with their utility accounts. Some of these initiatives included: 1. Condominium Association Assistance Program: provided for payment arrangements to those associations that are currently past due on their utility bills and can document that at least 15% of their units are in foreclosure. 2. Utility Bill Due Dates: increased the days allowed for payment of a utility bill from 15 to 21 days, to be consistent with other utility companies. City Commission Memorandum-UTB-Administrative Guidelines May 8, 2013 Page 2 of 6 3. Utility Bill Late Penalties: removed the one-time 10% penalty on the current portion of a utility bill and adopted a recurring monthly charge of 1.5% on any portion of the account balance that is past due. ANALYSIS Similar to the steps taken for the aforementioned mentioned initiatives, at their January 24, 2013 meeting, the F&CWPC unanimously recommended several modifications to the Administrative guidelines for utility billing deposits, payment plans and shut-offs. Listed below for your review is a summary of the current and proposed utility billing deposit, payment plan and disconnection rules and practices. Attached as "Exhibit A" is a detailed outline of the City's current procedures for collections and disconnections of service after an account enters into an in-arrears state. A. Deposit Policy Current Utility Deposit Policy Currently, the City Code reserves the City's right to require a deposit of up to four times the amount of any previous monthly bill. The City's current practice is to request a deposit equivalent to the three months of average service. Per the City Code, this deposit is held until such time as the account holder requests services are discontinued. At this point, the guarantee of payment deposit shall be refunded less outstanding charges for service. Administration has surveyed neighboring communities and utility companies for a comparison of deposit practices and policies. This analysis was brought forth to the F&CWP Committee for review. Proposed Utility Deposit Policv The Committee recommended holding a two month deposit on residential homes and condominiums and maintaining a three month deposit on commercial and apartment building accounts. The Committee further recommended the City pay interest on customer deposits at the annual interest rate earned by the City. The Committee additionally recommended crediting customer deposits for residential homes and condominiums after 24 months of timely payments. Proposed Utility Billing Deposits Policy Type of Utility Current Proposed Current Proposed Current Proposed Account Deposit Deposit Interest Paid Interest Paid Deposit Refund Deposit Refund Amount Amount On Deposits on Deposits Policy Polic Residential Three Months Two Months City Interest Credited to Credited to account and of Average of Average N/A Rate Earned, account when after 24 months of Condominium Service Service Credited account is timely payments Annually closed Commercial Three Months Three City Interest Credited to Credited to account and Apartment of Average Months N/A Rate Earned, account when when account is Buildings Service of Average Credited account is closed Service Annually closed City Commission Memorandum-UTB-Administrative Guidelines May 8, 2013 Page 3 of 6 B. Payment Plan and Disconnection Policy Current Payment Plan and Disconnection Policy The City reviews utility billing accounts on a monthly basis per an average 30 day cycle. Bills are generated and mailed within one week after the read date. This is done after service orders are created for re-reads for extraordinary high or low reads. Utility customers are billed on a monthly basis and have twenty-one (21) days to make payment for a utility invoice. Customers currently have several options available for making their monthly payments. These .options include payments via: • On-line via the City's web portal; • Through the City's lock-box with their bills enclosed envelope; • In person at the City's cashier's window; and, • Via "Auto-Pay," an automatic ACH or credit/debit card charge. Payment arrangements are offered to customers that cannot make full payments on their utility accounts in an effort to avoid service interruption and bring the account back into current status. Plans are offered to all types of accounts: residential, commercial, apartments and condominiums. Payment plans require that the customer make a payment on a go-forward basis of their entire current portion of their bill, plus an additional payment to bring down the balance that is in arrears. The traditional payment arrangement is paid within a three-month period. There have been instances where a plan has been extended beyond the three months, due to extenuating circumstances. Proposed Payment Plan and Disconnection Policy The F&CWPC recommended establishing a new practice of extending payment extensions to customers requesting an additional two weeks to pay their utility accounts in an effort to avoid a service disconnection and bring their account back into current status. Payment Extensions Extensions Initial Payment Due Final Payment Due 1 st Two-Week Extension $0.00 initially Total Balance Due at end 2nd Week 2 nd Two-Week Extension 50% of Outstanding Total Balance Due at end Balance 2nd Week The Committee recommended implementing the above-mentioned payment extensions under the following conditions: • If a payment extension is entered into, current bills must be paid by due date. • NSF/Returned Items: not eligible for payment extensions. • If payment extension is broken, no further extensions offered. City Commission Memorandum-UTB-Administrative Guidelines May 8, 2013 Page 4 of 6 The F&CWPC also recommended establishing the following guidelines for payment agreements: Payment Agreements Description Amount Due First Shut-Off 30% balance due for reconnection, 35% balance due month two, and 35% balance due month three. 2nd Shut-Off 50% balance due for reconnection, 50% balance due next billing due date. 3rd Shut-Off 75% balance due for reconnection, 25% balance due next billing due date. 4" Shut-Off Apply Deposit, 100% balance due for reconnection. Three-month deposit due, billed over three months. The Committee recommended implementing the referenced payment agreements under the following conditions: • If a payment agreement is entered into, current bills must be paid by due date. • NSF/Returned Items: not eligible for payment agreements. • If payment extension is broken, no further agreements offered. CONCLUSION The Administration recommends that the City Commission adopt. the proposed resolution as recommended by the F&CWP. JLM/PDW/GPE/MM T:\AGENDA\2013\May 8\UTB—Administrative Guidelines City Commission Memorandum-UTB-Administrative Guidelines May 8, 2013 Page 5 of 6 Exhibit A Utility Billing Procedures for Collections and Disconnections of Service City of Miami Beach Current Utility Billing Collection Process Utility Account Type Description Residential Commercial Apartments Condominiums Cycle 30 days 30 days 30 days 30 days Due Date 21 days 21 days 21 days 21 days 1.5%on past due 1.5%on past due 1.5%on past due 1.5%on past due Penalty balance balance balance balance Late Notice 22 days 22 days 22 days 22 days 3 Day Notice N/A N/A Yes Yes Auto-Call -48 HR before 24 HR to make 24 HR to make 24 HR to make 24 HR to make service disconnection payment payment payment payment • If a bill is not paid a within twenty-one (21) days, a 1.5% penalty is added to the past due balance on the account and a courtesy "Late Notice" is generated and sent to the customer. The account is then "Past Due" which allows for an additional seven (7) days to pay otherwise service will be subject to disconnection. • If the past due balances are still not paid and no payment arrangement has been made: o Residential/Commercial service is disconnected for all water monies owed. This includes all past due funds with any additional billings that have been generated (current billing). o Apartments and Condominiums receive a three day notice placed on the premises by Public Works for all monies owed. This includes all past due funds with any additional billings that have been generated (current billing). • If no payments are made and no calls have been received to make payment arrangements, service is scheduled to be disconnected. • Once the account is scheduled to be disconnected, the customer will receive a phone call (placed to the account's main contact number) before the scheduled disconnection. The phone call outlines the date the account is scheduled to be disconnected (48 hours) and the process as to how to resolve the issue. The phone call also includes the final day/time payment can be received (24 hours) to prevent the disconnection order from being executed. • Service disconnections are performed on Tuesday, Wednesday, and Thursday, based on staff availability, as well as, respect to holidays. City Commission Memorandum-UTB-Administrative Guidelines May 8, 2013 Page 6 of 6 • If the utility account is paid, or a payment arrangement is made, on the day of the service disconnection, the account will be reconnected the same day if the payment/arrangement is made before 3pm. A $40 disconnect/reconnect charged is billed to the customer. • If the utility account is paid, or a payment arrangement is made, on the day of the service disconnection, after 3:00 PM, the service will be reconnected the next business day. • If customer wants service reconnected after normal working hours, the Public Works Department is contacted in order to verify there are available personnel to reinstall service. If staff is available for an afterhours turn-on, a $50 afterhours charge is billed to the customer. • For those customers that have had their utility service disconnected and no payment has been made, a service order is created to verify that the service is still off and no tampering/illegal use has occurred. If an illegal connection has been made, the Public Works Department will remove the meter and a Lien letter is sent to the customer. A $100 tampering/illegal use fee is charged to the account. For a second offense a $200 fee is imposed and $300 fee for a third violation. • If the service has been disconnected and no payment arrangements have been made, a thirty (30) day "Lien Letter" is sent to the property owner. If after thirty (30) days no response or payment is made, the Lien is then sent to Miami-Dade County to be officially recorded.