R5A-Amend Billing Procedure - Penalty For Late Utility Bills -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 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 ...
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:
Shall the Mayor and City Commission open and continue this item and refer it to the Finance and
Cit ide Pro·ects Committee?
Item Summary/Recommendation:
The Administration recommends that the City Commission open and continue this tern and refer it to
the Finance and Citywide Projects Committee (F&CWP) for Discussion.
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 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.
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.
After consultation with our EDEN Utility Billing System software provider, Tyler Technologies, the City
has been informed that the proposed methodology is not available; however, other methods are
available.
This item was prepared and placed on the March 1, 2012 F&CWPC meeting agenda, but not reached
for discussion. The next scheduled F&CWPC meeting is scheduled for April 19, 2012.
Adviso Board Recommendation:
The Finance and Citywide Projects Committee, at their October 19, 2011 meeting, originally
recommended the ro osed Ordinance be a roved b the Commission.
Financial Information:
Source of Amount
Funds: 1
I I
2
3
OBPI Total
Financial Impact Summary:
islative Trackin
Department Director
MIAMI BEACH 337
Account
AGENDA ITEM _B~5:-i-A_,___
DATE 3~ 2/-/2...
~ MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower and Members of the City Commission
Jorge M. Gonzalez, City ManagLY)r ·
~ SECOND READING (Open & Continue)
March 21, 2012 PUBLIC HEARING
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 open and continue this item and refer it to
the Finance and Citywide Projects Committee (F&CWP) for discussion.
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.
338
UTB CH 100 Ordinance 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 10%
per invoice.
After consultation with our EDEN Utility Billing System software provider, Tyler Technologies, the
City has been informed that the proposed methodology is not available; however, other methods are
available.
At the January 11, 2012 City of Miami Beach Commission meeting, upon second reading of the
Ordinance, the Commission unanimously voted to open and continue, and refer back the item to the
F&CWPC. The Commission was concerned that this item may be inadvertently incentivizing
customers not to pay their utility bill, by getting an inexpensive loan. The Commission further asked
for a summary of customers that were late three or more times during the past year, included below
for your review.
City of Miami Beach
Utility Billing Customers
Calendar Year 2011
(? at}d~J.lJ.;:;:~· ~h~J.ht~ . . . . ~
No. of Occurances No. Penalties
3
4
5
6
7
8
9
10
11
12
570
383
344
271
244
208
197
157
112
337
2,823
This item was prepared and placed on the March 1, 2012 F&CWPC meeting agenda, but not
reached for discussion. The next scheduled F&CWPC meeting is scheduled for April 19, 2012.
CONCLUSION AND RECOMMENDATION
The Administration recommends that the City Commission open and continue this item and refer
back to the F&CWP for discussion.
JMG/PDW/mm
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