R5E-Amend Fees Charges Rates And Billing Procedure -Wolfson-COMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance Amending Chapter 110 Of The City Code, Entitled "Utilities," By Amending Article
IV, Entitled "Fees, Charges, Rates And Billing Procedure," By Amending Division 3, Entitled
"Billing Procedure," By Amending Section 11 0-191, Entitled "Payment Of Bills," By Amending
110-191(B) By Changing The Penalty For Late Utility Bills From Ten Percent Of The Current Bill
To 1.5% Per Month Of The Late Outstanding Balance; Providing For Repealer, Severability,
Codification And Effective Date.
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.
Issue:
l Shall the Mayor and City Commission approve the Ordinance?
Item Summary/Recommendation:
At the July 13, 2011, City of Miami Beach Commission meeting, a discussion item regarding the
reduction of a utility bill's penalty percentage was referred by Commissioner Jonah Wolfson to the
Finance and Citywide Projects Committee (F&CWPC).
Presently, a one-time ten percent penalty is added to the current portion of all past due water, sewer
and stormwater utility bills (utility bills). No additional interest or penalties are charged.
On October 19, 2011, at a meeting of the F&CWPC, the Committee unanimously recommended
removing the one-time 10% penalty on the current portion and instead adopted a recurring monthly
charge of 1.5% on any portion of the account balance that is past due.
This recommendation came after penalties and interest from other utility companies were presented.
The Committee recommended charging 1.5% to be consistent with other utility companies, such as
Florida Power and Light and TECO -Peoples Gas.
Previously, the Committee increased the days allowed for payment from 15 to 21 to be consistent with
other utility companies.
Financial Information:
Source of Amount
Funds: 1
I I
2
3
OBPI Total
Financial Impact Summary:
Clerk's Office le islative Trackin
Si
Assistant City Manager
MIAMI BEACH 375
Account
AGENDA ITEM __:...R.;....5~E~
DATE [2-/ tf-l/
~ MIAMI BEACH
City of Miomi Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
FIRST READING
DATE: December 14, 2011
SUBJECT: AN ORDINANCE AMENDING CHAPTER 110 OF THE CITY CODE,
ENTITLED "UTILITIES," BY AMENDING ARTICLE IV, ENTITLED "FEES,
CHARGES, RATES AND BILLING PROCEDURE," BY AMENDING DIVISION
3, ENTITLED "BILLING PROCEDURE," BY AMENDING SECTION 110-191,
ENTITLED "PAYMENT OF BILLS," BY AMENDING 110-191(B) BY
CHANGING THE PENALTY FOR LATE UTILITY BILLS FROM TEN
PERCENT OF THE CURRENT BILL TO 1.5% PER MONTH OF THE LATE
OUTSTANDING BALANCE; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION AND EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission approve the ordinance on first reading
and schedule a second reading public hearing.
BACKGROUND
At the July 13, 2011, City of Miami Beach Commission meeting, a discussion item regarding the
reduction of a utility bill's penalty percentage was referred by Commissioner Jonah Wolfson to the
Finance and Citywide Projects Committee (F&CWPC).
Presently, a one-time ten percent penalty is added to the current portion of all past due water, sewer
and stormwater utility bills (utility bills). No additional interest or penalties are charged.
ANALYSIS
On October 19, 2011, at a meeting of the F&CWPC, the Committee unanimously recommended
removing the one-time 1 0% penalty on the current portion and instead adopted a recurring monthly
charge of 1.5% on any portion of the account balance that is past due.
This recommendation came after penalties and interest from other utility companies were presented.
The Committee recommended charging 1.5% to be consistent with other utility companies, such as
Florida Power and Light and TECO -Peoples Gas.
Previously, the Committee increased the days allowed for payment from 15 to 21 to be consistent
with other utility companies.
376
UTB CH 100 Ordinance Revision
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CONCLUSION AND RECOMMENDATION
Pursuant to the recommendation of the FCWPC, the Administration recommends that the City
Commission approve the ordinance on first reading and schedule a second reading public hearing.
JMG/PDW/mm
T:\AGENDA\2011\12-14-11\UTB CH 110 Ordinance 1.5% Penalty-Memo 1st Reading
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ORDINANCE TO BE SUBMITTED
378