R5A-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 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 approve an amendment to Chapter 110 of the City Code,
by changing the penalty for late utility bills from 10% of the current bill to 1.5% per month of the
late outstanding balance?
Item Summary/Recommendation:
The Administration recommends that the City Commission approve the item as recommended by the
Finance and Citywide Projects Committee (F&CWP).
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. ·
On April 19, 2012, 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.
The Finance and Citywide Projects Committee, at their October 19, 2011 and April 19, 2012 meeting,
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:
City Clerk's Office Legislative Tracking: I Patricia D. Walker
Si n-Offs:
Department Director
POW POW
T:\AGENDA\2012\05-9-12\UTB CH 110 Ordinance Penalty -Summ 2nd Reading
MIAMI BEACH 205
Account
JM
AGENDA ITEM-----
DATE S-9-tL
(9 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 Manager ~
May 9, 2012 S~OJo.-iEADING AND 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 approve the item as recommended by
the Finance and Citywide Projects Committee (F&CWPC).
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.
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UTB CH 100 Ordinance Revision
Page 2of2
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.
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
u i-"JA .t'Jd#ff. w.#;, ;gdp) . . •
No. of Occurances No. Penalties
3 570
4 383
5 344
6 271
7 244
8 208
9 197
10 157
11 112
12 337
2,823
On April 19, 2012, at a meeting of the F&CWPC, the Committee unanimously recommended the
City remove 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.
CONCLUSION AND RECOMMENDATION
The Administration recommends that the City Commission approve the item as recommended by
the Finance and Citywide Projects Committee.
JMG/PDW/mm
T:\AGENDA\2012\05-09-12\UTB CH 110 Ordinance Penalty-Memo 2"d Reading-May 9, 2012
207
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 1.5% 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, on January 11, 2012, the City of Miami Beach Commission referred
the item back to the Finance and Citywide Projects Committee for further discussion;
and
WHEREAS, on April19, 2012, at a meeting of the Finance and Citywide Projects
Committee, the Committee again recommended removing the one-time ten perce'nt
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;
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:
208
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 tefl1.5 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 tEffi 1.5 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 ______ , 2012, which is 10
days after adoption.
PASSED and ADOPTED this _____ day of _______ , 2012.
Mayor
ATTEST:
City Clerk
letters or numbers that are stricken through are deletions from existing ordinance.
Letters or numbers that are underlined are additions to existing ordinance.
:APPROVED AS TO
FORM & LANGUAGE
&-50R EXECUTlON
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