HomeMy WebLinkAbout07/21/2003 15 A K E R S F I E L D
,',..;u_~~~-~/~..~'~'~,. Mike Magga rd, Chair
Alan-Tandy ~:~ty [Vl~f~er - Harold Hanson
Staff: Darnell W. Haynes Mark Salvaggio
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Monday, July 21,2003 · 4:00 p.m.
City Manager's Conference Room - City Hall
1. ROLL CALL
Called to Order at 4:10 p.m.
Present: Councilmembers Mike Maggard, Chair; Harold Hanson and
Mark Salvaggio
2. ADOPT APRIL 21, 2003 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
5. NEW BUSINESS
A. Review and Committee recommendation regarding advanced billing for
refuse services
Finance Director Gregory Klimko provided background. For many years, the City
billed commercial refuse services three months in advance. Councilmembers were
getting many complaints about the three-month deposits when the customer first
signed up for service. The Council at that time changed the Municipal Code and
provided the Finance Director with the options of requiring or not requiring
deposits.
In 1995 when billing was converted to the HTE system, in order to simplify
computer entries as new customers make changes until their service needs are
established (more or less bins, etc.), the Refuse Division requested to go to a
monthly billing system and deposits were no longer required.
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Monday, July 21, 2003
Page - 2 -
AS of July 1st this year, a system was implemented that requires a one-month
deposit for new commercial refuse service, delinquent accounts or customers
reconnecting who have been shutoff for nonpayment. Commercial customers with
good payment records are not being required to pay a deposit.
There are approximately 5,000 commercial refuse accounts. The current write-off
rate for nonpayment is one to two percent. Upon approval of the City Council,
delinquent accounts that are written off are sent to a collection agency.
City Attorney Bart Thiltgen explained although there are health concerns, there are
provisions within the Government Code that allow for collecting deposits for
utilities, which would include refuse services, and to give notice and shut off
service for nonpayment.
Committee Member Hanson stated he referred this item for review because he
thought requiring deposits would reduce losses and increase revenue.
The City Attorney questioned if businesses with good payment records moving to a
new location would be considered "new accounts" and be required to pay a
deposit. The Finance Director explained he could clarify this administratively.
There will be no deposits required for commercial refuse customers with good
payment records who are just moving their businesses to a new location.
As deposits are now being required for new service, delinquent accounts or
reconnecting customers who have been shutoff for nonpayment, no further action
was taken by the Committee.
B. Review and Committee recommendation regarding acceptance of
2001-02 Transportation Development Act Funds Financial Statements
Assistant Public Works Director Jack LaRochelle explained this Financial
Statement (audit) is required yearly and routinely referred to the Committee for
review and recommendation.
Finance Director Gregory Klimko stated he has reviewed the Financial Statements.
There were no exceptions or concerns in the financial report.
The Committee accepted the 2001-02 Transportation Development Act Funds
Financial Statements and recommended adoption by the City Council.
6. COMMITTEE COMMENTS
Committee Member Hanson asked when the Park Development Fees report will be
brought back to the Committee. According to the agenda summary report from the
last Committee meeting, the report was to be on today's agenda. Staff responded
at the time the agenda was being prepared the fees were still being reviewed.
Staff has met with the Building Industry Association (BIA) and the Park
Development Fees will be on the next Committee agenda.
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Monday, July 21, 2003
Page - 3 -
Committee Chair Maggard commented the Urban Development Committee is
scheduled to meet on the Transportation Development Fees at its meeting on
Wednesday and wanted to ensure all the involved parties are ready as this issue is
of high interest to the community and has also taken a long time in development
and review.
7. ADJOURNMENT
The meeting adjourned at 4:27 p.m.
Attendance: Assistant City Manager Alan Christensen; City Attorney Bart Thiltgen;
Assistant to the City Manager Darnell Haynes; Finance Director Gregory Klimko;
Assistant Public Works Director Jack LaRochelle; Assistant to the Public Works Director
Georgina Lorenzi; and Solid Waste Director Kevin Barnes
cc: Honorable Mayor and City Council
S:\Darnell\03Budget and Finance~bf03ju121summary