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R7E-Policy Direction Toward Collecting Delinquent Account PaymentsCOMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND GITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,AUTHORZINGAPOLICY DIRECTION TOWARDS COLLECTING DELINQUENTACCOUNT PAYMENTS UNDER THE FEE IN LIEU OF PARKING PROGRAM. lntended Outcome Su Supporting Data (Surveys, Environmental Scan, etc.): lssue: Parking Fee ln Lieu Program Collection Item Summary/Recommendation : A RESOLUTION OF THE MAYOR AND GITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING A POLICY DIRECTION TOWARDS COLLECTING DELINQUENTACCOUNT PAYMENTS UNDERTHE FEE IN LIEU OF PARKING PROGRAM, UNDERSECTION {30.131, OFTHE CITY CODE; TO PROVIDE THE PLANNING DIRECTOR, CITY MANAGERAND CITYATTORNEYTHE AUTHORITY TO NEGOTIATE AND EXECUTE PAYMENT PLANS FOR DELINQUENT AGCOUNTS UNDER THE FOLLOWING CONDITIONS: ({) THE DELINQUENT AGCOUNT HOLDER MUST PAY THE CURRENT FISCAL YEAR FEE PRIOR TO ENTERING INTO A PAYMENT PLAN FOR DELINQUENT FEES; (2) THE DELINQUENT ACCOUNT HOLDER MUST REPAY THE ENTIRE AMOUNT DUE TO THE CITY, REGARDLESS OF THE YEARTHE DELINQUENCY OGGURRED; (3) THE DELINQUENT ACCOUNT MUST HAVE AN ACTIVE AND CORRECT BUSINESS TAX RECEIPT (BTR); (4) NO PAYMENT PLAN MAY EXCEED 36 MONTHS lN LENGTH; (5) FAILURE TO COMPLY WITH THE PLAN SHALL RESULT IN A REVOCATION OF THE BUSINESS TAX RECEIPT (BTR), AND/OR REVOCATION OF THE CERTTFTCATE OF OCCUPANCY/CERTIFTCATE OF USE (CO/CU) FOR THE DELTNQUENT ACCOUNT; (6) THE TOTAL OUTSTANDING BALANCE SHALL BECOME DUE AND PAYABLE IF PAYMENT UNDER THE PLAN !S NOT RECEIVED BY THE 1OTH OF THE APPLICABLE MONTH; AND (7) AUTHORIZE THE CITY MANAGER TO TAKE SUCH AGTION TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO COORDINATE THE EXECUTION OF PAYMENT PLANS Financial lnformation : Source of Funds: Amount Account 1 2 3 OBPI Total Financial lmpact Summary: E MIAMIBEACH DA rrEM R7 g- 544 g MIAMIBEACH City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33.l 39, www.miomibeochfl.gov COMMISSION MEMORANDUM To: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager DATE: February 11,2015 City Coftmission SUBJECT: A RESOLUTION OF THE MAY R AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,A POLICY DIRECTION TOWARDS COLLEGTING DELINQUENT ACCOUNT PAYMENTS UNDER THE FEE IN LIEU OF PARKING PROGRAM, UNDER SECTION 130.131 , OF THE CITY CODE; TO PROVIDE THE PLANNING DIRECTOR, CITY MANAGER AND GITY ATTORNEY THE AUTHORITY TO NEGOTIATE AND EXECUTE PAYMENT PLANS FOR DELINQUENT ACCOUNTS UNDER THE FOLLOWING CONDITIONS: (1) THE DELINQUENT ACCOUNT HOLDER MUST PAY THE CURRENT FISCAL YEAR FEE PRIOR TO ENTERING INTO A PAYMENT PLAN FOR DELINQUENT FEES; (2) THE DELINQUENT ACCOUNT HOLDER MUST REPAY THE ENTIRE AMOUNT DUE TO THE CITY, REGARDLESS OF THE YEAR THE DELINQUENCY OGGURRED; (3) THE DELINQUENT AGGOUNT MUST HAVE AN AGTIVE AND GORRECT BUSINESS TAx RECEIPT (BTR); (a) NO PAYMENT PLAN MAY EXCEED 36 MONTHS lN LENGTH; (5) FAILURE TO COMPLY WITH THE PLAN SHALL RESULT IN A REVOCATION OF THE BUSTNESS TAX RECETPT (BTR), AND/OR REVOCATTON OF THE CERTTFTCATE oF occupANcy/cERTlFtcATE oF usE (co/cu) FoR THE DELTNQUENT ACCOUNT; (6) THE TOTAL OUTSTANDING BALANGE SHALL BECOME DUE AND PAYABLE IF PAYMENT UNDER THE PLAN IS NOT RECEIVED BY THE 10TH OF THE APPLIGABLE MONTH; AND (71 AUTHORIZE THE CIw MANAGER TO TAKE SUCH ACTION TO EXECUTE ANYAND ALL NECESSARY DOCUMENTS TO COORDINATE THE EXECUTION OF PAYMENT PLANS ADMINISTRATION REGOMMENDATION Adopt the Resolution ANALYSIS ln an effort to collect delinquent fees from the Parking Fee in Lieu of Program (the "Program"), the Administration has met with several property owners owing such fees. Consistently, there has been a demand for a payment plan to pay the sometime large fees. ln order to expedite the collection of these fees, the Administration is recommending the adoption of the attached Resolution authorizing payment plans under strict and non- negotiable conditions. lf a property owner wishes to amend any of the conditions in the Resolution, that owner would have to seek City Commission approval of that settlement 545 offer. However, if the property owner agrees to the conditions, this Resolution would authorize the City Manager to execute the settlement offer without any further Commission actionrequired. Theconditionsfortheseproposedpaymentplansettlementsareasfollows: (1) The current fiscal year fee must be paid by prior to entering into payment plan for delinquent fees. (2) The delinquent account must repaythe entire amount due to the City, regardless of year delinquency occurred. (3) The delinquent account must have an active and correct Business Tax Receipt (BTR). (a) No payment plan may exceed 36 months in length. (5) Failure to comply with the payment plan shall result in a revocation of the account's BTR, revocation of CO/CU. (6) Demand for immediate payment of the total outstanding balance becomes due and payable if payment is not received by the 1Oth of the month.(7) Authorizing the City Managerto take such action and execute any and all necessary documents to coordinate the execution of payment plans. CONGLUSION The Administration recommends that the City Commission approve the attached Resolution. *@yl T:\AGENDA\20't S\February\Fee in Lieu of Parking Delinquincy.doc 546 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING A POLICY DIRECTION TOWARDS COLLECTING DELINQUENT ACCOUNT PAYMENTS UNDER THE FEE IN LIEU OF PARKING PROGRAM, UNDER SECTION f 30-131, OF THE CITY CODE; TO PROVIDE THE PLANNING DIRECTOR, CITY MANAGER AND CITY ATTORNEY THE AUTHORITY TO NEGOTIATE AND EXECUTE PAYMENT PLANS FOR DELINQUENT ACCOUNTS UNDER THE FOLLOWING CONDITIONS: (1) THE DELINQUENT ACCOUNT HOLDER MUST PAY THE CURRENT FISCAL YEAR FEE PRIOR TO ENTERING INTO A PAYMENT PLAN FOR DELINQUENT FEES; (21 THE DELINQUENT ACCOUNT HOLDER MUST REPAY THE ENTIRE AMOUNT DUE TO THE CITY, REGARDLESS OF THE YEAR THE DELINQUENCY OCCURRED; (3) THE DELINQUENT ACCOUNT MUST HAVE AN ACTIVE AND GORREGT BUSINESS TAx REGEIPT (BTR); (a) NO PAYMENT PLAN MAY EXCEED 36 MONTHS IN LENGTH; (5) FATLURE TO COMPLY WITH THE PLAN SHALL RESULT rN A REVOCATTON OF THE BUSTNESS TAX RECEIPT (BTR), AND'OR REVOCATION OF THE CERTIFICATE OF occuPANcY/GERTTFTCATE OF USE (CO/CU) FOR THE DELINQUENT ACCOUNT; (6) THE TOTAL OUTSTANDING BALANCE SHALL BECOME DUE AND PAYABLE IF PAYMENT UNDER THE PLAN IS NOT RECEIVED BY THE 1OTH OF THE APPLICABLE MONTH; AND (7) AUTHORIZE THE clTY MANAGER TO TAKE SUCH ACTION TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO COORDINATE THE EXECUTION OF PAYMENT PLANS WHEREAS, at the beginning of 2014, the Planning Department initiated an on-going internal review of all Planning processes and procedures commencing with the Fee in Lieu Parking program; and WHEREAS, the review included a pool of approximately 180 Fee in Lieu of Parking accounts managed by the department; and WHEREAS, during the review of the selected accounts staff observed irregularities ranging from minor to material deficiencies in the management of the program which were outlined in the report submitted to City Commission on Septembe r 171h, 2014; and 547 WHEREAS, based upon that report, the City Commission directed the following measures be taken: Partial invoicing occurred in 2010, these accounts should be re-billed, for those accounts that have not paid; and continue to invoice all accounts for 2011- to the present; to bring back to the Commission finalize settlements for the release of funds held in escrow; continue to collect any fees included in "Agreements" based on the terms contained therein; and file suit on those accounts that refuse to pay, after invoicing; and WHEREAS, the Planning Department, in its collection efforts has met with many of the principals and representatives of entities participating in the Fee ln Lieu of Parking program who have inquired about payment plans that would allow account to become current over time; and WHEREAS, the Planning Department would like to expand its collection efforts to consider full payment of outstanding balances through payment plans under the following conditions: (1) The current fiscal year fee must be paid by prior to entering into payment plan for delinquent fees. (2) The delinquent account holder must repay the entire amount due to the City, regardless of the year the delinquency occurred.(3) The delinquent account holder must have an active and correct Business Tax Receipt (BTR). (4) No payment plan may exceed 36 months in length. (5) Failure to comply with the payment plan shall result in a revocation of the account holder's BTR, and a revocation of the Certificate of Occupancy and/or Certificate of Use (CO/CU). (6) City shall require immediate payment of the total outstanding balance if payment under the payment plan is not received by the 1Oth of the month.(7) Authorize the City Manager to take such action and execute any and all necessary documents to coordinate the execution of payment plans. and WHEREAS, the Administration recommends that the City Commission authorizes the Department to implement payment plans to recapture unpaid Fee ln Lieu Of Parking accounts, under the above guidelines. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission authorize a policy direction towards collecting delinquent account payments for the Fee ln Lieu of Parking Program, under Section 130-131, of the City Code; to provide the Planning Director, City Manager and City Attorney the authority to negotiate and execute payment plans for delinquent accounts under the following conditions: (1) the delinquent account holder must pay the current fiscal year fee prior to entering into a 548 payment plan for delinquent fees; (2) the delinquent account holder must repay the entire amount due to the City, regardless of the year the delinquency occurred; (3) the delinquent account must have an active and correct Business Tax Receipt (BTR); (4) no payment plan may exceed 36 months in length; (5) failure to comply with the plan shall result in a revocation of the Business Tax Receipt (BTR), and/or revocation of the Certificate of Occupancy/Certificate of Use (CO/CU) for the delinquent account; (6) the total outstanding balance shall become due and payable if payment under the plan is not received by the 1Oth of the applicable month; and (7) authorize the City Manager to take such action to execute any and all necessary documents to coordinate the execution of payment plans. PASSED and ADOPTED this ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor day of 2015. APPROVED AS TO FORM & LANGUAGE , (-.r'Ll - --Dole 549