HomeMy WebLinkAbout2006 09 11 Regular 302 Delinquent Fee Utility
COMMISSION AGENDA
ITEM 302
REGULAR
September 11, 2006
Meeting
MGR DEPT
Authorization
REQUEST: The Finance Department is requesting that the City Commission authorize staff
to delay increasing the delinquent fee for utility customers until the formal
system-wide rate study is completed by the City's consultant. It is also requested
that City Commission delay a decision on the Televox notification service until
the delinquent fee increase can be readdressed.
PURPOSE: The purpose of this Agenda item is to request that the City Commission authorize City
staff to delay increasing the delinquent fee for utility customers at this time.
CONSIDERATIONS: On August 28, 2006, Regular Agenda Item 305 was presented to the City
Commission to request authorization of Televox, an automated customer notification
of their delinquent payment status and impending service disconnection. During the
agenda item discussions, it was recommended by the City Commission to charge only
the users of this service and not spread the cost over the entire utility population. After
further review, City staff recommends revising the delinquent fee from the greater of
$5.00, or 5.0% of the outstanding balance, to the greater of $6.00, or 5.0% of the
outstanding balance, to cover the additional cost of the automated notification system.
However, before the delinquent fee can be increased, Florida Statute 180.136 requires
the utility provide notice of any proposed fee increase to each customer of the utility
system through the utility's billing process. This notification process would take
approximately 6 weeks. Once the notification process is complete, an Ordinance could
be formally adopted by the Commission after two public hearings. Due to the required
notification process, legal advertising and public hearings, City staff recommends
delaying the delinquent rate increase until the system-wide rate study is commissioned
in Fiscal Year 2006-2007. This would mean the City would only notify the users of
the system of potential rate increases once not twice during a twelve month period.
During the system-wide rate review process, any fees associated with system
improvements as recommended by George Colombo in his Customer Service Review
Report can also be addressed.
FUNDING: No funding is required at this time.
Regular Agenda Item 302
September 11, 2006
Page 2 of2
RECOMMENDATION: It is recommended that the City Commission authorize City staff to delay
increasing the delinquent fee for utility customers until the system-wide rate study is
commissioned during Fiscal Year 2006-2007, at which time the delinquent fees,
Televox notification service and any system improvements as recommended by Mr.
Colombo in his Customer Service Review Report can be readdressed.
A TT ACHMENTS: N/ A
COMMISSION ACTION: