HomeMy WebLinkAboutResolutions - No. 2003-137RESOLUTION NO. 2003-137
A RESOLUTION OF THE LODI CITY COUNCIL
INCREASING FEE FOR RETURNED CHECK
CHARGES FROM $10.00 TO $25.00 FOR EACH FIRST
RETURNED CHECK AND INCREASING LATE FEES
FOR 30 -DAY PAST DUE UTILITY BILLS FROM
$5.00 TO $10.00
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WHEREAS, Section 1719 of the Civil Code provides that damages equal to
treble the amount of an insufficient funds check could be enforced under specific
circumstances; and
WHEREAS, returned checks made payable to the City of Lodi have increased in
the last six-year period; and
WHEREAS, an analysis of cost incurred by staff in an attempt to collect
exceed $25.00 for each check, and the total cost is currently $56.68 excluding any cost
by the accounting department to reverse entries and balance the bank reconciliation;
and
WHEREAS, on September 27, 1996, Governor Wilson signed into law AB 2643,
effective January 1, 1997, which provides that a check -writer of the dishonored check
shall be liable to the "payee" (person named on the check) for a service charge in an
amount not to exceed $25.00 for the first check dishonored; and
WHEREAS, it is the policy of the City Council that the enterprise activities
(electric, water, wastewater, and solid waste) of the City be efficiently managed and
based on sound economic principles by following prudent business practices; and
WHEREAS, it is the policy of the City Council to encourage customers to pay
utility bills on a timely basis in full and to discourage delinquent utility bills; and
WHEREAS, it is the policy of the City Council that City staff will be sensitive to
customer hardships or other unusual and one-time circumstances that preclude timely
payment of utility bills.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
increases the fee for a first check and all subsequent checks returned for non -sufficient
funds, account closed, and referred to maker from $10.00 to $25.00 and increases late
fees for 30 -day past due utility bills from $5.00 to $10.00.
BE IT FURTHER RESOLVED by the Lodi City Council that this Resolution shall
become effective immediately.
Dated: July 16, 2003
I hereby certify that Resolution No. 2003-137 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 16, 2003, by the following
vote:
AYES:
COUNCIL MEMBERS — Beckman, Hansen, Howard, and Land
NOES:
COUNCIL MEMBERS — None
ABSENT:
COUNCIL MEMBERS — Mayor Hitchcock
ABSTAIN:
COUNCIL MEMBERS — None
Susan Blackston
City Clerk
2003-137