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HomeMy WebLinkAboutItem VI(C) Resolution NO 94-22, relating to the accrual of interest on water/sewer deposits, the payment or forfeiture of that accrued interest, refund of deposits and/or application of deposit upon termination of services fl AGENDA 9-20-94 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Ocoee Item VI C ° 'cif NERS CITY OF OCOEE RUST OH N .r t i:4 , a HORS DRIVE PAUL W.FOSTER 150 N.LAKE SHORE OCOEE FLORIDA 34761-2258 VERN COMBS c (407)656 2322 JIM GLEASON 4Cf Gp4V FLUS MANAGER HAPIRO MEMORANDUM DATE: September 15, 1994 TO: The Honorable Mayor and Board of City Commissioners FROM: Montye E. Beamer, Director 991 Administrative Services SUBJECT: Resolution No. 94-22 Ordinance No. 94-23 authorized the City Commission to take certain action by resolution (Section 2,C.) in connection with the Utility Deposit Policy. Exhibit "A" as attached to Resolution No. 94-22 matches the proposed policy previously distributed to the City Commission with the following exceptions: (1) Prior paragraphs 1 and 2 were incorporated into the Ordinance; (2) Prior paragraphs 9 and 10 became paragraphs 2 and 3 so that the discussion of interest rate occurs directly after the initial discussion on refund. (3) A final paragraph was added to address partial payments; it simply demonstrates the relationship between the current Ocoee City Code and payments by the Due Date. Please note that, if water service is shut off and there is no deposit being held, then the consumer must pay a new deposit at the then current charge prior to reconnection along with all other applicable reconnection charges. Staff recommends that Resolution No. 94-22 be approved so that the policy may be implemented on October 1, 1994. It was prepared by the City Attorney. Action Requested The Mayor and Board of City Commissioners (1) approve Resolution No. 94-22 and (2) authorize the Mayor and City Clerk to execute. MEB/jbw RESOLUTION NO. 94-22 A RESOLUTION OF THE CITY OF OCOEE, FLORIDA RELATING TO THE CITY SEWER AND WATER DEPOSIT POLICY; PROVIDING FOR PAYMENT OF INTEREST ON SEWER AND WATER DEPOSITS; PROVIDING FOR THE REFUND OF SEWER AND WATER DEPOSITS; PROVIDING FOR THE FORFEITURE OF INTEREST EARNED ON SEWER AND WATER DEPOSITS; PROVIDING FOR THE APPLICATION OF SEWER AND WATER DEPOSITS TO ACCOUNT BALANCES; PROVIDING FOR NEW SEWER AND WATER DEPOSITS; ESTABLISHING PROCEDURES FOR CALCULATING THE INTEREST EARNED ON SEWER AND WATER DEPOSITS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the provisions of Chapter 173 of the Ocoee City Code authorize the City Commission to adopt by resolution policies regarding sewer and water deposits; and WHEREAS, the City Commission desires to adopt a comprehensive policy regarding sewer and water deposits. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: Section 1. The City Commission of the City of Ocoee has the authority to adopt this Resolution pursuant to Article VIII of the Constitution of the State of Florida, Chapter 166, Florida Statutes, Section C-8.AA of the Charter of the City of Ocoee, and Chapter 173 of the Code of Ordinances of the City of Ocoee. Section 2. The City hereby adopts the City of Ocoee Sewer and Water Deposit Policy attached hereto as Exhibit "A" and by this reference made a part hereof. Said policy is 1 supplemental to the provisions of Chapter 173 of the Code of Ordinances of the City of Ocoee and all other policies of the City pertaining to sewer and water service. Section 3. Severability. If any section, subsection, sentence, clause, phrase 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 4. This Resolution shall become effective immediately upon passage and adoption; however, certain portions of the policies adopted by this Resolution shall become effective on October 1, 1994 as more fully set forth in Exhibit "A" attached hereto. PASSED AND ADOPTED this day of , 1994. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY this day of , 1994. FOLEY & LARDNER APPROVED BY THE OCOEE CITY COMNIISSION AT A MEETING HELD ON , 1994 By: UNDER AGENDA ITEM NO. . City Attorney C:\WP51\DOCS\OCOE\PERDDH09.13B 19/15/941 DEBBIEN I PER:dh 2 EXHIBIT "A" TO RESOLUTION NO. 94-22 CITY OF OCOEE SEWER AND WATER DEPOSIT POLICY (1) Effective beginning October 1, 1994, the City will, subject to the terms and conditions set forth in this policy, pay interest on all sewer and water deposits. The interest rate will from time to time be established by the City as set forth in Paragraph 3 hereof and is subject to change. The deposits, plus interest thereon, will be refunded to the consumer after twenty-four (24) consecutive months without water service being shut-off or a notice of lien being filed for non-payment. If a utility account is voluntarily closed and deposits are held by the City at the time the account is voluntarily closed, then the consumer shall be entitled to interest on the deposits only if they have been held by the City without water service being shut-off or a notice of lien being filed for non-payment for at least twelve (12) consecutive months prior to the date of voluntary disconnection. No interest shall be earned on a deposit during the time the water service is disconnected or a notice of lien is filed for non-payment. (2) No retroactive interest will be paid with respect to current deposits held by the City. However, prior to October 1, 1994, the City will refund all deposits (without interest) to consumers who have had deposits with the City for at least twenty-four (24) consecutive months without having their water service shut-off or having a notice of lien recorded for non-payment. (3) The interest rate earned on the deposits shall be annually established by the Director of Administrative Services and shall become effective on October 1 of each year. The interest rate paid by the City on deposits shall be based on the average interest rate paid by banks in Central Florida on passbook savings accounts as of September 1 of each year. (4) If water service is shut-off or a notice of lien is filed for non-payment, then the consumer will forfeit, as a penalty, all interest otherwise payable on the deposits. After water service is reconnected (or in the case of a notice of lien, payment is made in full) , then the deposits will again accrue interest and be refundable after twenty-four (24) consecutive months without water service being shut-off or a notice of lien being filed for non-payment. (5) If water service is shut-off, then the City may apply the deposits toward the outstanding balances of the applicable utility bills and invoice the consumer for any remaining balances after applying the deposits or refund the remaining deposits if the outstanding balances are less then the deposits. If a notice of lien is filed for non-payment, then the City may apply the deposits toward the outstanding balances of the applicable utility bills and invoice the consumer for any remaining balances after applying the deposits, but the City shall not refund any remaining deposits so long as the consumer is still receiving water service from the City. (6) If a utility account is voluntarily closed and there are no outstanding balances due on the account, then any deposits held by the City shall be refunded to the consumer. If a utility account is voluntarily closed and there are outstanding balances due on the account, then at the time the account is closed the City shall apply the deposits towards the outstanding balances of the applicable utility bills and invoice the consumer for any remaining balances after applying the deposits or refund the remaining deposits if the outstanding balances are less than the deposits. (7) If a utility account is voluntarily closed, then accrued interest on the deposits shall be paid or credited to the consumer in the same manner as set forth in Paragraph 6 above only if the deposits have been held by the City without water service being shut-off or a notice of lien filed for non-payment for at least twelve (12) consecutive months prior to the date of voluntary disconnection. Otherwise, all accrued interest on the deposits shall be forfeited to the City at the time of voluntary disconnection. (8) If a utility deposit has been refunded (or if for any reason the consumer does not have a utility deposit on account with the City) and water service is subsequently shut-off, then, as a condition for re-connection, the consumer must pay new utility deposits to the City, such deposits being equal to the then current deposits required by the City. (9) In the event a consumer makes a partial payment of the consumers consolidated utility statement (which statement charges for garbage and trash, stormwater management, sewer and water) , then the provisions of Section 150-7 (C) of the Ocoee City Code shall be applicable to such partial payment and the determination by the City as to whether sewer and water charges have been paid by the Due Date. Section 150-7 (C) of the Ocoee City Code provides as follows with respect to the consolidated utility statement: "In the event that a partial payment is received, the payment shall first be applied to garbage and trash, next applied to stormwater management, next applied to sewer and finally applied to the water account. " C:\WP51\DOCS\OCOE\PERDDH09.17A 19/15/94 1 DEBBCEH 1 PER:dh