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HomeMy WebLinkAboutO-2026-025 Amending FeesORDINANCE NO. 2026-025 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AMENDING CHAPTER 2, ENTITLED “ADMINISTRATION” BY CREATING A NEW SECTION ENTITLED “ELECTRONIC PAYMENT PROCESSING SURCHARGES” TO AUTHORIZE THE CITY TO RECOVER ELECTRONIC PAYMENT PROCESSING COSTS AS AUTHORIZED BY SECTION 215.322(5), FLORIDA STATUTES; PROVIDING FOR CODIFICATION, PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the acceptance of electronic payments provides a convenient payment option for residents, businesses, and visitors, but results in electronic processing fees that are currently borne by the City; and WHEREAS, the City Commission recognizes that convenience fees are intended solely to recover the actual costs associated with processing electronic payment transactions and are not intended to generate additional revenue for the City; and WHEREAS, Section 215.322(5), Florida Statutes, expressly authorizes units of local government, including municipalities, to accept electronic payments for financial obligations owing to the local government and to surcharge persons utilizing such payment methods in an amount sufficient to pay the applicable service fee charges; and WHEREAS, the City Manager directed staff to evaluate the feasibility of recovering electronic payment processing costs for designated non-utility transactions through the City's authorized third-party payment processors; and WHEREAS, staff coordinated with each affected department and its respective payment processor to evaluate implementation requirements, fee schedules, contractual considerations, and implementation timelines; and WHEREAS, the City Attorney has reviewed the proposed implementation and advised that the City may authorize the assessment of electronic payment processing surcharges, subject to applicable law, contractual obligations, and payment card network operating rules; and WHEREAS, the City Commission finds that authorizing, electronic payment processing surcharges is in the best interest of the City because it allows the recovery of electronic payment processing costs while continuing to provide convenient, secure, and efficient payment options to the public. 2 ORDINANCE #2026-025 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the above “WHEREAS” clauses are ratified and confirmed as being true and correct, and they are made a part of and incorporated into this Ordinance by this reference. Section 2. That Chapter 2 entitled the “Administration”; is amended as follows: * * * CHAPTER 2 ADMINISTRATION * * * 2-18 2-19 through 2-25 Reserved. Sec. 2-18. Electronic Payment Processing Surcharges. 2-18 through 2-25 Reserved. (a) Authority and Purpose. Pursuant to Section 215.322(5), Florida Statutes, the City may accept payment by credit card, charge card, bank debit card, electronic funds transfer, and other authorized electronic payment methods for financial obligations owing to the City and may impose an electronic payment processing surcharge in an amount sufficient to pay the applicable service fee charges imposed by the financial institution, payment processor, credit card company, or other authorized electronic payment provider. The surcharge authorized by this section is intended solely to recover electronic payment processing costs and shall not be established or administered for the purpose of generating additional City revenue. A payment processor may refer to such charge as a “convenience fee” or other similar terminology as required by the applicable payment platform or payment-card network rules. (b) Calculation of Surcharge. To the extent supported by the applicable payment platform, the surcharge may reflect the actual processing charge imposed for the transaction, which may consist of a percentage of the transaction amount, a fixed per-transaction charge, or a combination thereof. Where the actual processing charge cannot reasonably be passed through directly because of the configuration or functionality of the applicable payment platform, the City may establish a documented blended rate reasonably calculated to recover the processing costs attributable to the applicable payment platform or payment category. Any blended rate shall be periodically reviewed and adjusted as necessary to ensure that it remains reasonably related to the processing costs the surcharge is intended to recover. (c) Applicable Transactions. The electronic payment processing surcharge may be assessed on financial obligations owing to the City, including, but not limited to, permit fees, Certificates of 3 ORDINANCE #2026-025 Use, marina services, parks and recreation transactions, cemetery transactions, Business Tax Receipts, parking permits, parking meter transactions, pier-related payments, fines, zoning fees, and other authorized municipal revenues. The surcharge shall not apply to utility payments or public records unless subsequently authorized by the City Commission. (d) Implementation by Resolution. The City Commission shall establish the applicable electronic payment processing surcharge schedule by resolution. The resolution may establish different surcharge amounts or methodologies based upon the applicable payment processor, payment platform, payment category, or processing costs. The City Manager, or designee, may implement the authorized surcharges on a department-by- department or platform-by-platform basis as the applicable payment processors complete necessary configuration, testing, contractual, and implementation requirements. (e) Administration and Vendor Agreements. The City Manager, or designee, is authorized to administer the electronic payment processing surcharge program and to execute implementation documents and amendments necessary for its administration to the extent such documents are within the City Manager's existing contracting authority. Any agreement or amendment requiring City Commission approval under otherwise applicable City requirements shall be submitted to the City Commission for approval. All such documents remain subject to review and approval by the City Attorney as to form and legal sufficiency. * * * Section 3. That all ordinances or part of ordinances in conflict with the provisions of the Ordinance are repealed. Section 4. It is the intention of the Mayor and City Commission of the City of Dania Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made a part of the Code of the City of Dania Beach, Florida. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. Section 5. That this Ordinance shall be effective immediately after passage on second reading. PASSED on first reading on August 25, 2026. PASSED AND ADOPTED on second reading on September 14, 2026. First Reading: Motion by: Commissioner Rimoli. Second by: Commissioner Lewellen. Second Reading: 4 ORDINANCE #2026-025 Motion by: Commissioner Lewellen. Second by: Vice Mayor Salvino. FINAL VOTE ON ADOPTION: Unanimous X Yes No Commissioner Lori Lewellen ____ ____ Commissioner Luis Rimoli ____ ____ Commissioner Archibald J. Ryan IV ____ ____ Vice Mayor Marco Salvino ____ ____ Mayor Joyce L. Davis ____ ____ ATTEST: ERIN MCCLENDON JOYCE L. DAVIS DEPUTY CITY CLERK MAYOR APPROVED AS TO FORM AND CORRECTNESS: EVE A. BOUTSIS CITY ATTORNEY