HomeMy WebLinkAbout2009-05 Service Charge for Returned CheckRESOLUTION NO. 2009- 05
A RESOLUTION OF THE CITY CO CIL OF THE CITY OF U~CIAH ESTALISHI G
SERVICE CHARGE FOR EACH ETUR ED CECI~C
WHEREAS, Section 1719 of the Civil Code provides that damages equal to triple the amount of
an insufficient funds check could be enforced under specific circumstances; and
WHEREAS, returned checks made payable to the City of Ukiah 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, with the total cost ranging from $30.38 to 80.42; and
WHEREAS, on September 27, 1996, Governor Wilson signed into law AB 2643, effective
January 1, 1997, which provides that acheck-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 $35.00 for each subsequent check; 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
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 Ukiah City Council hereby establishes the fee
for a check returned for insufficient funds, stopped payment, account closed, and referred to maker of
$25.00 for the first check, $35.00 for each subsequent check and changed to "Cash Only" status after
three returned checks; and
BE IT FURTHER RESOLVED by the Ukiah City Council that this Resolution shall become
effective April 6, 2009.
PASSED AND ADOPTED on this 18t" day of February, 2009 by the following vote:
AYES: Councilmembers Landis, Thom Crane, R.odi and Mayor Baldwin
NOES: None
ABSENT: None
ABSTAIN: None ~~"
(fihilip E. i~ldwin, Mayor
T~EST~
Linda .Brown, Clerk
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