R5A-Amend Fees Charges Rates And Billing ProcedureCOMMISSION 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 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 0.833% Per Month Of The Late Outstanding Balance ...
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:
I Shall the Mayor and City Commission approve the Ordinance?
Item Summary/Recommendation:
The Administration recommends that the City Commission adopt the alternative method proposed or refer it
to the Finance and Citywide Projects Committee for clarification.
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 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% per month to be consistent with other utility companies, such as
Florida Power and Light and TECO -Peoples Gas.
At the December 14, 2011 City of Miami Beach Commission meeting, upon first reading, the Commission
unanimously voted to remove the one-time 10% penalty on the current portion and instead adopt a recurring
monthly charge of 1.5% on any invoice that is past due, up to a cap of 1 0% per invoice.
We have consulted with our EDEN Utility Billing System software provider, Tyler Technologies who advised
that most utilities add a flat fee or a percentage to the past due bill. As a result, their software is able to add
a percentage fee to past due bills or charge a flat past due fee but can not accomplish the proposed
percentage cap by invoice.
An alternative method that could be used to achieve a similar result would be to charge .083% per month on
any past due balances. Using this method the annual interest rate would be 10%.
Board Recommendation:
Source of Amount Account
Funds: 1
I I
2
3
OBPI Total
Financial Impact Summary:
Clerk's Office Le islative Trackin :
Patricia D. Walker T:\AGENDA\2012\01-14-12\UTB CH 110 Ordinance Penalty -Summ 2nd Reading
Department Director Assistant
POW
MIAMI BEACH 199
AGENDA ITEM _R_;...5_A __
DATE [-lf-1 2-
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the Ci ommission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 11, 2012
SUBJECT: AN ORDINANCE AMENDING APTER 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 0.833% PER MONTH OF THE LATE
OUTSTANDING BALANCE; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION AND EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the alternative method proposed or
refer it to the Finance and Citywide Projects Committee for clarification.
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 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% per month 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.
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UTB CH 100 Qrdinance Revision
Page 2 of2
At the December 14, 2011 City of Miami Beach Commission meeting, upon first reading, the
Commission unanimously voted to remove the one-time 1 0% penalty on the current portion and
instead adopt a recurring monthly charge of 1.5% on any invoice that is past due, up to a cap of 1 0%
per invoice.
Patricia Walker, Chief Financial Officer was not certain that the Eden software system used for utility
billing could place a percentage cap by invoice and it was agreed that that the software company
would be contacted between first and second reading to determine if the proposed method was
feasible.
We have consulted with our EDEN Utility Billing System software provider, Tyler Technologies ,who
advised that most utilities add a flat fee or a percentage to the past due bill. As a result, their
software is able to add a percentage fee to past due bills or charge a flat past due fee but can not
accomplish the proposed percentage cap by invoice.
An alternative method that could be used to achieve a similar result would be to charge .0833% per
month on any past due balances. Using this method the annual interest rate for past due bills would
be 10%.
If this method does not achieve the Commission's goal, then it is recommended that the item be
referred back to the Finance and Citywide Projects Committee for clarification.
CONCLUSION AND RECOMMENDATION
The Administration recommends that the City Commission adopt the alternative method proposed or
refer it to the Finance and Citywide Projects Committee for clarification.
JMG/PDW/mm
T:\AGENDA\2012\01-11-12\UTB CH 110 Ordinance 1.5% Penalty-Memo 2"d Reading
201
ORDINANCE NO. ______ _
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 0.833% PER MONTH OF THE LATE OUTSTANDING BALANCE;
PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION AND
EFFECTIVE DATE.
WHEREAS, on July 13, 2011, the City of Miami Beach Commission referred a
discussion item regarding the reduction of a utility bill's penalty percentage to the
Finance And Citywide Projects Committee; and
WHEREAS, presently, a one-time ten percent penalty is added to the current
portion of all past due water, sewer and stormwater utility bills; and
WHEREAS, on October 19, 2011, at a meeting of the Finance and Citywide
Projects Committee, the Committee recommended removing the one-time ten percent
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; and
WHEREAS, this recommendation came after the Finance and Citywide Projects
Committee analyzed and compared penalties and interest from other utility companies;
and
WHEREAS, on December 14, 2011, the City of Miami Beach Commission, upon
first reading, unanimously voted to remove the one-time 10% penalty on the current
portion and instead adopt a recurring monthly charge of 1.5% on any invoice that is past
due, up to a cap of 10% per invoice; and
WHEREAS, our Chief Financial Officer was not certain that the Eden software
used for utility billing could place a percentage cap by invoice and it was agreed that the
software company would be contacted between first and second reading to determine if
the proposed method was feasible; and
WHEREAS, after consultation with the City's Eden Utility Billing System provider,
Tyler Technologies, who advised that most utilities add a flat fee or a percentage to the
past due bill, and as a result their software is able to add a percentage fee to past due
bills or charge a flat past due fee, but cannot accomplish the proposed percentage cap
by invoice; and
WHEREAS, an alternative method that could be used to achieve a similar result
would be to charge .0833% per month on any past due balances; and
202
WHEREAS, using this method, the annual interest rate for past due bills would
be 10%; and
WHEREAS, if this method does not achieve the Commission's goal, it is
recommended that the item be referred back to the Finance and Citywide Projects
Committee for clarification.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1: That Chapter 110 of the City Code, Article IV, Division 3, Section 110-
191 (b), of the Miami Beach City Code is hereby amended as follows:
Sec. 110-191(b).-Payment of bills.
(b) All water, sewer, and stormwater utility bills, ... , shall be paid within 21 days from the
date of the bill. A teR 0.833 percent penalty shall be added to the past due balance of
all water, sewer, and stormwater utility bills ... , if not paid within 21 days from the date of
bill. .. A teR 0.833 percent penalty shall be added to the past due balance of all bills
rendered ...
SECTION 2. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby
ordained that the provisions of this ordinance shall become and be made part of the Code of the
City of Miami Beach, Florida. The sections of this ordinance may be renumbered or relettered
to accomplish such intention, and the word "ordinance" may be changed to "section", "article", or
other appropriate word.
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed.
SECTION 4. SEVERABILITY.
If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any
reason, held invalid or unconstitutional, such portion shall be deemed a separate, distinct and
independent provision and such holding shall not affect the validity or constitutionality of the
remaining portions of this Ordinance.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the ____ day of ______ , 2011, which is 10
days after adoption.
PASSED and ADOPTED this _____ day of ______ ,, 2011.
Mayor
ATTEST:
City Clerk
I Letters or numbers that are stricken through are deletions from existing mance.
Letters or numbers that are underlined are ad!9&s to existing ord\nance. City Attorne {F Date
1_6NE I THURSDAY, DECEMBER 29, 2011 MiamiHerald.com I THE MIAMI HERALD
~ MIAMIBEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC. HEARINGS
NOTICE IS HEREBY given that second readings and public hearings will be held by the Mayor and City Commission
of the City of Miami Beach, Florida, in the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive,
·Miami Beach, Florida, on WEDNESDAY, January 11, 201'2 to consider the following:
11i:15a.m.
Ordinance Amending Chapter 11 0 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 ren Percent
Of The Current Bill To 1.5% Per Month Of The Late Outstanding Balance.
Inquiries may be directed to the Anance Department at (305) 673-7 466.
10:20a.m. ..
Oroinance Amending Chapter 26 Of The Miami. Beach City Code Entitled "Civil Emergencies," By Amending Article II,
Entitled "State Of Emergency," By Repealing Section 26-32, Entitled "Automatic Emergency Measures" Due To The
Preemption Of The Entire Field Of Regulation Of Firearms To The State Of Florida; By Amending Chapter 70, Entitled
"Miscellaneous Offenses," By Amending Article I, Entitled "In General," By Repealing Section 70-2, Entitled "weapons;
Discharging," Due To The Preemption OfThe Entire Reid Of Regulation Of Arearms To The State Of Florida; By Amending
Chapter 1 06 Of The Miami Beach City Code, Entitled '"Traffic And Vehicles," By Amending Article Ill, Entitled "Parades,"
By Amending Division 2, Entitled "Permit," By Amending Section 1 06-375(A)(1) To Repeal Language Regarding The
Regulation Of Firearms That Is Preempted By Tlie State Of Florida, And To Provide That Weapons Shall Not Include Any
Destructive Device ·or Firearm As Defined Under Florida Law,
Inquiries m&Y be directed to the Legal Department at (305) 673-7470.
10:25a.m. _
Ordinance Amending Chapter 10 Of The Miami Beach City Code Entitled "Animals," By.Amending Section 10-10, Entitled
"Animals Prohibited In Public Parks And On Beaches" To Cross-Reference Language In Section 1 0-11 Regarding
Off-Leash Areas For-Dogs; By Amending Section 10-11, Entitled "Running At Large Prohibited," By Extending The
Pilot Program 'Off-Leash Area For Dogs In South Pointe Park Until July 15, 2012, By Providing O,ff-Leash Hours In The
Designated Area In The Morning From Sunrise To 10:00 A.M. Daily And Between 4:00 P.M. And ·7:00 P.M. Monday
Through Friday, And Relocating The Off-Leash Area To The South And East OfThe Washington Avenue Entry Plaza.
Inquiries may be directed to the Parks and Recreation Department at (305) 673-7730.
5:00p.m.
An Ordinance Amendifl!fThe Land Development Regulations Of The :Code Of The City Of Miami Beach, By Amending
-Chapter 142;: "Zoning Districts And Regulations," ArticlE~ If, "District Regulations," Division 18, "PS Performance
Standard District", Section 142-696 "Residential Performance Standard Area Requirements"_To Modify The Maximum
Height Requirements For Residential Apartment Structures; By Amending Section 142-697 ·:setback Requirements In
The R-PS 1, 2, 3, 4 District," To Modify The Setback Requirements For Oceanfront Buildings.
Inquiries may be directe_d to the Planning Department at (305) 673-7550. ·
5:o5p.m.
Ordinance Granting To Florida Power And Light Company, Its Successors And Assigns, An Electric Franchise Imposing
Provisions And Conditions Relating Thereto, Providing For Monthly Payments To The City Of Miami Beach:
Inquiries may be directed to the Public Works Department at (305) 673-7080.
INTERESTED PARTIES are invited to appear at this meeting, or be represented by an agent, or to express )heir views in
writing addressed to the City Commission, c/o the City Clerk, 1700 Convention .Center Drive, 1st Floor, City Hall, Miami
Beach, Florida 33139. Copies of these ordinances are available for public inspection during normal business hours
in the City Clerk's Office, 1700 Convention Center Drive, 1st Floor, City Hall, and Miami Beach, .Florida 33139. This
meeting may be continued and under such eircumstances additional legal notice would not be provided.
Robert E. Parcher, City Clerk
City of Miami Beach
Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that: if a person decides to appeal any
decision made by the City Commission with respect to any matter considered at its meeting or its hearing, such person
must-ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence
upon ·which the appeal is to be based. This notice does not constitute consent by the City for the introduction or
admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not otherwise
allowed by law.
. -~-J
To request this material in accessible format, sign language interpreters, informatiol:} on ;at;cess for persons with
disabilities, and/or any accommoC!ation to review any document or participate in any city-sponsored proceeding,
please contact (305) 604-2489 (voice), (305)673-7218(ITY) five days in advanca to initiate your request. TIY users
may also call 711 (Florida Relay Service).
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