HomeMy WebLinkAboutStaff Report 3.D 01/22/20073.0
CITY OF PETALUMA, CALIFORNIA January 22, 2007
AGENDA BILL
Agenda Title:
Resolution To Increase City's Fee For Payment Made From An Account Meeting Date:
With Non-Sufficient Funds to Reflect City Costs January 22, 2007
Meeting Time: ~ 3:00PM
D 7:00PM
Categorv: 0 Presentation lZJ Consent Calendar 0 Public Hearing 0 Unfinished Business 0 New Business
DeQartment: Director: Contact Person: Phone Number:
Admin Services Steven Cam1ichael Steven Camrichael 778-4352
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Cost of Pro[!osal: Account Number:
Additional revenue to compensate for actual fees to City for bounced checks N/A
Amount Budgeted: Name of Fund:
N/A N/A
Attachments to Agenda Packet Item:
Resolution Approving Fee Increase
Summary Statement:
The City has had a non-sufficient funds fee of$10 for over 15 years. Staff is recommending increasing the fee to
$25. Currently, the City pays Wells Fargo $25 for each bounced check we process which means the City is losing
$15 per check. In addition, staff has to complete seven different manual operations to void payment of a check.
These individual, manual entries take approximately 20 minutes for each check. For the above reasons, staff is
recommending an increase to $25. If the same person or business gives the City more than one bounced check,
the fee will go to $35 for each subsequent check.
Recommended Citv Council Action/Suggested Motion:
Approve Resolution raising the fee for payment made from an account with non-sufficient funds to $25.
R wiewed bv Admin. Svcs. Dir: Reviewed bv City Attorney: Approved~ Citv Manager:
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Date: d I I \o1 Date: Date:
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CITY OF PETALUMA, CALIFORNIA
JANUARY 22, 2007
AGENDA REPORT FOR
Resolution to Increase City's Fee for Payment Made From An Account With Non-
Sufficient Funds to Reflect City Costs
1. EXECUTIVE SUMMARY:
The City has had a bounced check fee of $10 for over 15 years. Staff is recommending
increasing the fee to $15 due to increased costs. Currently, the City pays Wells Fargo $25 for
each bounced check we process which means the City is losing $15 per check. In addition, staff
has to complete seven different manual operations to void payment of a check. The costs listed
above are justification to raise the fee to $25.
2. BACKGROUND:
The City Council has approved three five year banking contracts without raising the bounced
check fee to cover City's cost.
3. ALTERNATIVES:
1. Leave fee at $10 and continue to make a gift of public funds to citizens who bounce
checks.
2. Adopt a different amount for proposed fee.
4. FINANCIAL IMPACTS:
City would receive reimbursement for some of the cost it currently loses.
5. CONCLUSION:
City is not collecting the cost it incurs for doing business. City Council has directed staff to be
sure all costs the City incurs in doing business be reimbursed. Modifying this cost of doing
business is one small way of accomplishing that goal.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION:
This would help towards the performance measure of increasing City revenues.
7. RECOMMENDATION:
Approve Resolution increasing fee.
S:/agenda/12M 18~06 bounced check fcc increase
RESOLUTION AMENDING THE FEE FOR PAYMENTS MADE
WITH NON-SUFFICIENT FUNDS
WHEREAS, the City of Petaluma requires a fee for payments made from an account with
non-sufficient funds; and
WHEREAS, the City does not fully recoup its costs related to non-sufficient funds check
processing by keeping the current charge; and
WHEREAS, it is important for the citizens to pay the cost the City incurs for doing
business.
NOW, THEREFORE BE IT RESOLVED that the fee for payment made to the City fi·om
an account with non-sufficient funds is amended as follows:
NON-SUFFICIENT FUNDS FEE-$25.00 FIRST OCCURANCE
$35.00 FOR EACH SUBSEQUENT ACTION
BE IT FURTHER RESOLVED that all resolutions inconsistent with this resolution are
hereby repealed to the extent of such inconsistency.
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