title
GRU - DEPOSIT REQUIREMENTS FOR RESIDENTIAL AND NONRESIDENTIAL SERVICES (B)
Ordinance No. 0-07-19
AN ORDINANCE AMENDING CHAPTER 27, ARTICLE 1, SECTION 27-7 OF THE CODE OF ORDINANCES OF GAINESVILLE, FLORIDA RELATING TO DEPOSIT REQUIREMENTS FOR RESIDENTIAL AND NONRESIDENTIAL SERVICE; AMENDING CHAPTER 27, ARTICLE 1, SECTION 27-14 OF THE CODE OF ORDINANCES OF GAINESVILLE, FLORIDA RELATING TO THE DATE PAYABLE FOR COMBINED STATEMENTS, LATE FEE PENALTIES, AND THE DELINQUENT ELIGIBILITY DATE AND SERVICE RECONNECTION POLICIES; AMENDING APPENDIX A, UTILITIES SECTION (7), SUBSECTION a RELATING TO DEPOSITS FOR RESIDENTIAL SERVICE; AND AMENDING APPENDIX A, UTILITIES SECTION (7), SUBSECTION b(4)(i) SERVICE CHARGES BY INCREASING CERTAIN ADDITIONAL CHARGES FOR SAME DAY OR AFTER HOURS RECONNECTION OF SERVICE FOR DELINQUENT DISCONNECTIONS; PROVIDING A REPEALING CLAUSE; PROVIDING DIRECTIONS TO THE CODIFIER; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDNG AN EFFECTIVE DATE.
recommendation
The City Commission adopt the proposed ordinance.
explanation
Executive Summary:
On February 26, 2007, the City Commission approved the recommendation of the Regional Utilities Committee and authorized the City Attorney to prepare and the Clerk to advertise the above entitled ordinance. The ordinance revises certain provisions of Chapter 27, Gainesville Code of Ordinances, relating to customer utility deposits.
Explanation:
In general, the revisions address utility deposits, cut for nonpayment timing and delinquent reconnection. The revisions require modifications to current ordinance language which need to be in effect with the implementation of the new Customer Information System (CIS) in April, 2007.
A self-directed work team was chartered to research each of the ten (10) stages of the current Collections process: Initial Deposit, Late Fees/Penalties, Delinquent Processing, GRU Payment Assistance, Additional Deposit, Agency Payment Assistance, Convert to Final Pending, Credit Bureau Referral, Credit Bureau Collections and Bad Debt Write-off. At each stage of the process, business and customer measurements used to identify improvement opportunities were calculated for cost, quality, service and speed. This data helped the team identify the process elements and constraints that must be met or changed when re-engineering the process. After evaluating all the opportunities, the team agreed that the following strategies would provide the highest gain: 1) Cost - create processes to minimize the amount in an account referred to the credit bureau or for delinquent processing; 2) Speed - create a process to reduce cycle time for the delinquent and credit bureau referral processes; 3) Quality/Service - provide better communication for delinquent accounts.
After developing the strategies for re-engineering, the team then sought input from the key community stakeholders by hosting a social service summit. Representatives of local government, churches, and social services agencies were present to discuss re-engineering alternatives. In general, the participants were supportive of proposals to: 1) revise the initial and additional deposit policies; 2) shorten the delinquent and credit bureau referral processes; 3) mail a separate delinquent notice letter. The proposal to shorten the credit bureau referral process by seven (7) days was implemented in February, 2006. However, adoption of the remaining proposals was deferred until the new CIS could be implemented: 1) replacing combined utility deposits with deposits for each utility service provided; 2) shortening the delinquent eligibility date by seven (7) days; and, 3) mailing separate delinquent notice letters.
Revisions to the ordinance are needed to complete these process changes.
Fiscal Impact:
Funds are available in the FY 2007 budget to implement the proposed process changes.