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HomeMy WebLinkAboutR-2002-086 RESOLUTION NO. 2002-086 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE IMPLEMENTATION OF THE INITIAL PHASE OF REIMBURSEMENT OF UTILITY DEPOSITS TO ELIGIBLE CUSTOMERS; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Pursuant to Ordinance No. 2002-030, utility customers shall be reimbursed utility deposits provided they have met established criteria; and WHEREAS, The City wishes to implement the initial phase of utility deposit reimbursements based on those utility customers who have met established criteria pursuant to City Code of Ordinances, §27-23 and §27-55; and WHEREAS, the initial phase of reimbursements will include those customers who met the criteria in the initial twenty-three (23) months of service (pursuant to City Code of Ordinances, §27-23 and §27-55) and also met the criteria in the last twenty-three (23) months of service, with the cut-off period being February, 2002; and WHEREAS, the initial phase of reimbursements will cost a total of $122,848.10, which includes the addition of a three (3) percent interest rate; and WHEREAS, each phase hereafter will be implemented according to criteria established via Ordinance No. 2002-030. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1: That all resolutions or parts of resolutions in conflict with this resolution are repealed to the extent of such conflict. Section 1: That this resolution shall be effective immediately upon its passage and adoption. 1 RESOLUTION NO. 2002-086 PASSED AND ADOPTED THIS 11th day of June, 2002. ROB` H. CHUNN, JR. MAY O - COMMISSIONER ATTEST: CHARLENE JOH ON CITY CLERK ROLL CALL: COMMISSIONER BERTINO - YES COMMISSIONER MCELYEA - YES COMMISSIONER MIKES - YES VICE-MAYOR FLURY - YES MAYOR CHUNN - YES • APPROVED AS TO FOR AND CORRECTNESS: BY: M V THOM J. NSBRO CITY ATTORNEY • 2 RESOLUTION NO. 2002-086 • CITY OF DANIA BEACH T DEPARTMENT OF FINANCE MEMORANDUM TO: Ivan Pato Memo: DF-02-017 City Manager FROM: Macciano K. Lewis Acting Finance Director DATE: June 3, 2002 SUBJECT: Implementation of Initial Phase of Utility Deposit Reimbursements Issue The issue is the implementation of the initial phase of utility deposit reimbursements. Explanation • Pursuant to Ordinance No. XXXX, utility customers meeting established criteria are entitled to a full reimbursement of utility deposits plus applicable interest. The criteria are as follows and are specifically detailed in said Ordinance. 1. After a consumer has established a satisfactory payment record and had continuous service for a period of 23 months, the payment of deposit as required under City Charter, §27-23 and §27-55, shall be refunded, provided that the consumer has not, in the preceding twelve (12) months, -Made more than one (1) late payment of bill (after the bill has become past due); or -Paid with check refused by bank; or -Had service disconnected; or -Tampered with meter; or -Used service in a fraudulent or unauthorized manner. 2. Deposits will accrue interest at the average annual rate earned by the City on its pooled investments. The interest will be applied to the account for which the deposit is held, at the close of the fiscal year on those accounts having been held for a year. • The implementation of the initial phase of reimbursements will include those customers who have had service with the City greater than twenty-three (23) months as of February, 2002. While many customers have met the requirements established under criteria one (1) for the first twenty-three (23) months of service, some of these customers, after this period, have not continuously met the requirements established via Ordinance No. XXXX. As a Is result, for the initial phase of reimbursements, refund of deposits will be provided to those customers who met the requirements in the initial twenty-three (23) months and also met the requirements in the last twenty-three (23) months of service, with the cut-off period being February, 2002. Under these circumstances, the City will be liable for $122,848.10 in reimbursements.* This total includes the addition of a three (3) percent interest rate.** The idea is to not reimburse those customers currently not in 'good standing' with the City. Customers not meeting the established criteria for the last twenty-three (23) months of service will have their deposits held by the City and reimbursed when customers request closure of account. A reimbursement will be provided given the final statement amount is less than the reimbursement amount. In the event a final bill exceeds deposit amount, a final bill will be mailed to customer. The schedule for reimbursement will be updated and executed on a yearly basis hereafter. Recommendation A recommendation is being made to initiate the reimbursement of utility deposits based on customers meeting established criteria for both the initial twenty-three (23) months and the last twenty-three months of service. Deposits to be reimbursed will be increased by a 3% interest rate. This will be called the initial phase of reimbursements. Every phase of reimbursement hereafter will be made according to criteria established via Ordinance No. XXXX. Staff considered mailing reimbursements to eligible customers. However, once the expense of checks, postage, etc., and the possibility of checks being lost or stolen, the decision was made to implement the program by crediting individual accounts. C: Michelle Spatafora, Utility Billing Clerk `For the initial phase of reimbursements,ONLY customers who met criteria one(1)for both the first twenty-three(23)months of service AND the last twenty-three(23)months of service,with the cut of period being February,2002,are eligible for a full reimbursement of deposit.All scheduled reimbursements following the initial phase of reimbursements will be made according to criteria number one(1). "'For the initial phase of reimbursements,a flat rate of 3%was arbitrarily chosen for calculating individual reimbursement amounts.Surrounding cities that do provide utility reimbursements fluctuate anywhere from 24%,capping out at 5%.All scheduled reimbursements following the initial phase of reimbursements will be adjusted according to criteria number two(2).