Exh 7AAGENDA ITEM #7A
FEBRUARY 12, 2001
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Ordinance 80-QI-63 Amending Chapter 22, Article I,
Adding Section 22-4 Authority to Adjust Charges in
Appropriate Cases and Adding Section 22-5 Accounts
Receivable Write-Offs
SUBMITTED BY: Jim Hanson, City Manager
DATE: February 12, 2001
BACKGROUND:
1) Changes to the City's utility code are needed to authorize the City to adjust customer
accounts with disputed amounts. Accounts have been adjusted in the past to correct errors, but the
current code does not specifically provide authority to the City Manager or his staffto negotiate and
resolve disputed charges. The Section 22-4 code addition wi1P give the City authority to resolve
disputes requiring account adjustments.
2) The City's independent auditors, Purvis Gray and Company, recommended that the City
implement policies and procedures to provide for the periodic write-off of past due accounts
receivable. Historically, a reserve for uncollectible accounts was adjusted annually by increasing the
City's bad debt expense for all customer billed amounts greater than 120 days past due. However,
the City has never had a policy in place to uniformly write-off accounts deemed uncollectible. A
separate staff report, also included in this meeting's agenda, outlines the recommended policies and
procedures to be implemented. The Section 22-5 code addition addresses the adoption of these
policies and procedures.
BUDGET:
There is no impact to the current budget.
RECOMMENDATION:
The City Commission adopt the proposed additions to Chapter 22, Article I: Section 22-4
Authority to Adjust Charges in Appropriate Cases and Section 22-5 Accounts Receivable Write-
Offs.
ATTACHMENTS:
Ordinance 80-01-63.
AGENDA ITEM #7A
FEBRUARY 12, 2001
ORDINANCE NO. 80-01-63
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA AMENDING CHAPTER 22 ARTICLE I IN
GENERAL ADDING SECTION 22-4. AUTHORITY TO
ADJUST CHARGES IN APPROPRIATE CASES, ADDING
SECTION 22-5. ACCOUNTS RECEIVABLE WRITE-OFFS,
PROVIDING FOR SEVERABILITY; PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED. BY THE CITY COMMISSION OF THE CITY OF
ATLANTIC BEACH, FLORIDA:
SECTION 1. Section 22-4 is added as follows:
Sec. 22-4 Authority to adiust charges in appropriate cases.
~__Right to dispute. Every utility customer shall have the
b) Authority to adiust. The adjustment will be made in those
Director deems necessary and aopropriate.
been assessed or not assessed in error. When a customer is
c) Terms of adjustment. The adjustment shall be accomplished
AGENDA ITEM #7A
FEBRUARY 12, 2001
SECTION 2. Section 22-5 is added as follows:
Sec. 22-5. Accounts receivable write-offs.
SECTION 3. Severability. If any section, sentence, clause
or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said
holding shall in no way affect the validity of the remaining,
portions of this ordinance.
SECTION 4. This ordinance shall take effect immediately
upon its final passage and adoption.
Passed by the City Commission on first reading: _Day of
February, 2001.
Passed by the City Commission on second and final reading
this Day of February, 2001.
ATTEST:
MAUREEN RING
City Clerk
Approved as to form and correctness:
ALAN C. JENSEN, ESQUIRE
City Attorney
JOHN S. MESERVE
Mayor, Presiding Officer