HomeMy WebLinkAboutReso 66-19 Returned Deposited Item PolicyRESOLUTION NU. 66-19
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
ADOPTING A RETURNED DEPOSITED ITEM POLICY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, The City of Morro Bay collects payments for utility bills, transient occupancy tax,
business tax, permits and fees and charges for services; and
WHEREAS, the City of Morro Bay accepts multiple types of payments, including personal
check; and
WHEREAS, staff recommends the City Council adopt the proposed Returned Deposited Item
Policy to formalize a policy for consistent administrative application by staff.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,
that the "Returned Deposited Item Policy" as documented in Exhibit A, attached hereto and
incorporated herein, is hereby approved.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a special meeting
thereof held on the 9day of July 2019, by the following vote:
AYES:
NOES:
ABSENT
ATTEST:
Headding, Addis, Davis, Heller, McPherson
None
None
Resolution No. 66-19
COUNCIL POLICY
Returned Deposited Item Policy
Policy Statement
Exhibit A
The City of Morro Bay (City) provides many services to the Citizens of Morro Bay that have fees
due. The City Council sets legislative financial management policies, as recommended by staff
and/or advisory committees. This Returned Deposited Item Policy ("Policy") is designed to
establish guidelines to allow for City employees to collect payment for services provided.
Purpose
The Returned Deposited Item Policy establishes an authority for providing billing adjustments and
collection of payment guidelines to any payment that was provided and then returned by the City's
bank.
Definitions
Returned Bank Item — A check, bank draft/direct payment or electronic payment, received by the
City as payment for a service provided, that was returned by the bank as unpayable.
Returned Deposited Item Procedures and Fees
• The City charges for many different services provided, and can accept check, cash,
cI1 d0 d%& card, bank draft/direct payment or electronic payment as acceptable payments
(see Payment Type Policy).
• The original payment will be adjusted out of the payees' account, if applicable.
• Written notification will be provided to the payee by U.S. mail addressed to the mailing
address of the payee as on record with the City, when the City receives notification of
returned deposited item by the City's bank. The payee will be given 5 business days
(timeframe begins 2 business days after date of mailing) to make a payment in full after the
date the notification was mailed or posted.
• There will be a fee of $25.00 added to the amount of original payment for the first returned
deposited item, and $35.00 for the third and second.
• Payment can be made with cash, debit, credit, money order or cashier's check only. Check
and bank draft/direct payment will not be accepted for a returned item.
• If payment is not received within the 5 business days, the payee will be sent to a collection
agency or District Attorneys Bad Check Program at the City's discretion.
• If the returned item was a water payment, a second notice (in addition to the primary written
notification mailed to the payee as provided above) will be posted to the property receiving
the service with one additional business day to make the payment in full. If the payment is
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Resolution No. 6649
Exhibit A
not made in full, the account is subject to shut off during the City's monthly shut off process
with a reconnection fee due before services are restored, per the master fee schedule.
® If a payee has had three Returned Deposited Items, the City will not accept payment in the
form of check or bank draft/direct deposit from the Payee or the account the payment was
made for in a 24-month period. Such a situation will be documented with written notification
that will be sent to the payee by U.S. mail addressed to the mailing address of the payee as
on record with the City, and documented in the customer's account notes, if applicable.
This policy applies to all customers of the Gity of Morro Bay. The Finance Department is
responsible for the administration and enforcement of this policy.
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