Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Policy topic
No spam. Unsubscribe anytime.
Council signals support to limit "lifetime" returned-check restriction; staff to draft five-year policy
Summary
Council members questioned a utility policy that requires customers with two returned checks or drafts to be forced into cash-only payments for the life of the account. Staff suggested a five-year sunset; council asked staff to draft language for later consideration.
Council members brought up the city's utility payment policy during the Jan. 14 meeting after a resident contacted a council member about the policy that converts an account to cash-only after two returned checks or drafts "for the lifetime of the account."
A council member said the lifetime restriction is “pretty harsh” and that many customers prefer paying by check. City staff (Kevin) confirmed the policy is in effect and said the city could draft a change with a sunset provision; staff suggested a five-year sunset as a reasonable alternative and offered to prepare revised policy language for council review. Council members asked staff to draft a policy limiting the returned-check restriction to five years and to bring the revised policy back for formal consideration.
Staff noted returned-check fees (the city referenced a $30 returned-check fee) can be costlier to process depending on a bank and that administrative convenience and fraud-prevention considerations motivated the existing policy. Council members emphasized balancing administrative burden on staff and customer fairness when setting the sunset period.
