HomeMy WebLinkAbout2004 08 23 Consent 203
COMMISSION AGENDA
ITEM 203
CONSENT X
INFORMATIONAL
PUBLIC HEARING
REGULAR
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MGR F r6E~
Authorization
August 23, 2004
Meeting
REQUEST: The Finance Department is requesting the City Commission adopt Resolution No.
2004-36, establishing a bank draft policy. The Finance Department is also
requesting authorization to work with the City Attorney to create a bank draft
authorization agreement with all appropriate legal disclaimers.
PURPOSE: The purpose of this Agenda item is to request the City Commission adopt Resolution
No. 2004-36, establishing a bank draft policy, so that we may begin to offer this
service to our customers.
CONSIDERATIONS: On July 14, 2003, the City Commission authorized the acceptance of bank
drafts as an additional way for customers to pay for City services. The City has
worked with MUNIS to properly train and test this service. The City has tested this
product using City employees who are also utility customers. The City now requests
that the Commission adopt the formal Bank Draft Policy so we may begin offering this
service to all citizens. City staff requests authorization to work with the City Attorney
to create a bank draft authorization agreement form with appropriate legal disclaimers.
Once the bank draft authorization form is complete, it will be mailed to all of our
citizens to begin utilizing this service. Information will also be placed on the website
announcing this new service.
FUNDING: Funding for the Bank Draft service, which is estimated to be $75.00 per month, based
on a 600 customers (out of approximately 12,000 customers) utilizing this service at a
flat fee of $15.00 per month plus $0.10 per item (customer), will be paid for by the
Water and Sewer Utility Fund. The estimate of 600 customers is based on the City of
Oviedo's experience with this same service with a utilization rate of approximately
500 customers out of a base of 10,000 customers.
RECOMMENDATION: It is recommended that the City Commission approve Resolution No.
2004-36, establishing a bank draft policy as well as approve authorization to work
with the City Attorney to create a bank draft authorization agreement form with
appropriate legal disclaimers.
ATTACHMENTS: Resolution No. 2004-36
COMMISSION ACTION:
. RESOLUTION NUMBER 2004-36
A RESOLUTION OF THE CITY COMMISSION OF WINTER
SPRINGS, FLORIDA, ESTABLISHING A BANK DRAFT POLICY
FOR THE RESIDENTS OF THE CITY; PROVIDING FOR BANK
DRAFT FOR UTILITY SERVICES; PROVIDING FOR THE
REPEAL OF PRIOR INCONSISTENT RESOLUTIONS;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, from time to time Residents make requests to make payment to the
City by automatic bank draft; and
WHEREAS, the City desires to provide additional payment options for our
customers; and
WHEREAS, the City desires to adopt a uniform policy allowing draft of such
payments from the customer's bank or credit union accounts; and
WHEREAS, the City desires the policy to be fair as well as to encourage
customer participation in the bank draft program; and
WHEREAS, for purposes of this resolution~ the term "bank dTaft" shall mean a
check automatically drawn by the City's bank against funds deposited into the City's
utility customer's account at another bank authorizing the customer's bank to make
payment to the City for utility services rendered and/or invoiced by the City; and
WHEREAS, the City Commission of the City of Winter Springs deems that this
Resolution is in the best interests of the public health, safety, and welfare of the citizens
of Winter Springs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS
FOLLOWS:
Section 1. Incorporation of Recitals., The foregoing recitals are deemed true and
correct and are hereby fully incorporated by this reference.
Section 2. Bank Draft Policy. The following policy is adopted regarding the use
of bank draft to pay for utility services:
2.1 The use of bank draft to pay a utility account is encouraged by the City of
Winter Springs. Any utility customer ("customer") who desires to use bank draft shall be
required to sign an appropriate authorization form before bank draft commences.
City of Winter Springs
Resolution Number 2004-36
Page 1 of 3
2.2 Every customer should have the opportunity to participate, except for
those customers who are required to pay for utility services by cash or money order. An
account must be in good standing with no previous returned checks in order to be eligible
for automatic bank draft privileges.
2.3 Any account deemed not eligible for bank draft will be notified by the
City's Revenue Officer.
2.4 Bank draft will be for the entire monthly balance due and any outstanding
charges. Partial bank drafts will not be accepted.
2.5 Funds will not be debited from a customer's bank account for at least
fourteen (14) days after the bill date on the utility statement. The bank draft shall become
due immediately upon the City's submission to the City's banking institution.
2.6 Billing disputes must be received in writing by the City no later than
eleven (11) days following the bill date on the utility statement to prevent the bank draft
from being processed. All bill payments during the time period of the dispute must be
paid by means other than the automatic bank draft. Customers shall be required to
provide a detailed explanation for the dispute. Notification of a billing dispute received
after the deadline could result in the bank draft being processed for that bill.
2.7 Bank draft will continue until cancellation notice is received from the
customer. Bank draft cancellation must be received in writing by the City no later than
eleven (11) days following the bill date on the utility statement to prevent the bank draft
from being processed.
2.8 A customer shall not temporarily suspend a bank draft. Any written
request received by the City to suspend a bank draft for one month will be deemed a
cancellation request, unless said suspension is required to change banks or prevent fraud
on the customer's bank account.
2.9 Any bank draft returned for insufficient funds will result in the customer's
bank draft privileges being suspended and a fee will be assessed. Further, an interruption
in utility service could occur. Two insufficient fund notifications will result in permanent
cancellation of bank draft privileges as well as payment of future utility statements to be
in the form of cash or a money order.
2.10 At the direction of the City, bank draft privileges may be reinstated six (6)
months after cancellation or suspension of bank draft privileges as discussed in Sections .
2.7 and 2.8 ofthis Resolution.
City of Winter Springs
Resolution Number 2004-36
Page 2 of 3
2.11 If an existing bank draft customer desires to change banking institutions,
the bank change must be received by the City in writing, no later than fourteen (14) days
after the bill date to avoid any insufficient fund fees being assessed to the customer. In
the event of extraordinary circumstances including, but not limited to, fraud and closing
of a bank, exceptions to this rule may be made by the City. However, if fourteen (14)
days notice is not provided, the City can not guarantee the cancellation and/or
modification of the customer's bank draft.
2.12 All past due billings must be paid in full before a customer enrolls in the
bank draft program.
2.13 All customers participating in the bank draft program must permit the City
to conduct pre-draft testing with the customer's bank, as the City deems necessary.
Section 3. Repeal of Prior Inconsistent Resolutions. All prior resolutions or
parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, word,
or portion of this Resolution is for any reason held invalid or unconstitutional by any
court of competent jurisdiction, such portion shall be deemed a separate, distinct and
independent provision and such holding shall not affect the validity of the remaining
portion hereto.
Section 5. Effective Date. This Resolution shall become effective immediately
upon adoption by the City Commission of the City of Winter Springs, Florida.
RESOLVED by the City Commission ofthe City of Winter Springs, Florida, in a
regular meeting assembled on the 23rd day of August 2004.
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F. BUSI(~r
LORENZO-LUACES, City Clerk
t
/
e as to legal form and sufficiency for
'nter Springs only:
torney
City of Winter Springs
Resolution Number 2004-36
Page 3 00