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HomeMy Public PortalAbout09-7949 Rebate to all Residential Utility Customers Sponsored by: Vice-Mayor M. Taylor RESOLUTION NO. 0 9-7949 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER TO REBATE ONE HUNDRED DOLLARS ($100.00) TO ALL RESIDENTIAL UTILITY CUSTOMERS WITHIN THE BOUNDARIES OF THE CITY OF OPA- LOCKA, PAYABLE FROM THE WATER AND SEWER ACCOUNT WHEREAS, there are approximately 2,438 residential utility customers living within the City of Opa-locka("City") who receive water and sewer service; and WHEREAS,many of the City's residential utility customers are experiencing hardship due to tough economic times; and WHEREAS, in recent years, many of the City's residential utility customers have been negatively impacted by high water and sewer bills from the City; and WHEREAS, Vice-Mayor Taylor has proposed that the City institute a rebate of One Hundred Dollars ($100.00) to all of the City's residential utility customer accounts; and WHEREAS,the proposed rebate would provide One Hundred Dollars($100.00)in the form of a check to each of the City's residential utility customers by December 31, 2009; and WHEREAS,the City Commission of the City of Opa-locka("City Commission") desires to authorize a rebate of One Hundred Dollars ($100.00)to all City residential utility customers; and WHEREAS,the auditing firm of Harvey, Covington and Thomas of South Florida,L.L.C., working in conjunction with the City Manager and the City's Finance Department have determined that the approximate financial total impact of the rebate,including postage,would be Two Hundred Forty Four Thousand Eight Hundred and Seventy Two Dollars and seventy-two cents($244,872.72). Resolution No. 0 9-7 9 4 9 NOW,THEREFORE,BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA: Section 1. The recitals to the preamble herein are incorporated by reference. Section 2. The City Commission of the City of Opa-locka hereby authorizes the City Manager to institute a rebate of One Hundred Dollars ($100.00) to all City residential utility customers who are living within the City of Opa-locka, in the form of a check and payable by December 31, 2009, from the City's water and sewer account. Section 3. This resolution shall take effect immediately upon adoption. this 28 day of OCTOBER , 2009. MOTION FAILED I SEP ' L LLEY MAYO Attest: Approved as to form and legal sufficiency: D-'•orah S. rby Burnadette Norris`=Weeks City Clerk City Attorney Moved by: JOHNSON Seconded by: TAYLOR Commission Vote: 4-1 Commissioner Holmes: NO Commissioner Johnson: NO Commissioner Tydus: NO Vice-Mayor Taylor: YES Mayor Kelley: NO 1 N4 EIA,, I Y, CON--1 '4 ON ,k. !'HO\I.Ati, Memorandum To: B. Norris Weeks, Esquire CC: City Commission, City Manager, and E. Orji, Ph,d, CPA From: Roderick Harvey, CPA, CVA Date: 10/22/2009 Re: Information regarding Rebate for Residents Harvey Covington & Thomas was requested to perform certain research regarding the total financial impact of a proposed rebate to water and sewer customers. Please see the below listed table for our analysis. 3816 Hollywood Blvd.Ste 203 I Hollywood,Florida 33021 I 954.966-4435 Ph 1 954-962-7747 Fax October 22, 2009 Number of Residents Number of Residents (Inside and (Inside) Outside) 2438 3518 Rebate Amount $ 100.00 $ 100.00 $ 243,800.00 $ 351,800.00 Estimate Indirect Cost $ 1,480.00 $ 1,850.00 (Assumed 80 Hrs to Prepare (Inside the City Customers) Postage - $ 1,072.72 $ 1,547.92 Other Ancillary Cost $ 1,428.13 $ 16,490.63 if Picked Up at City Total Cost of Customer Rebate $ 246,352.72 $ 371,688.55 if Mailed to Customers Total Cost of Customer Rebate $ 256,708.13 $ 370,140.63 if Picked Up by Customers We believe that there are several other factors that must be considered. The factors for consideration include: • The approval of an additional hardship increase for residents of $100. (Resolution 09- 7919 passed on 9/23/09) • The approval of an ordinance to maintain the water rates constant (Ordinance 09-16 passed on 09/09/09) • The approval of an ordinance to maintain the sewer rates constant (Ordinance 09-17 passed on 9/21/09) 2 October 22, 2009 • The State revolving loan agreement includes language that prohibits the City from providing "free" services. This is important to note if a monetary rebate will be given to residents with delinquent accounts. • The Water and Sewer fund generated a $1.8million increase in net assets in FY 2008 and a $1.2 million decrease in net assets for FY 2007. The FY 2006 fiscal year provided a $134,000 increase in net assets for the Water and Sewer fund The sufficiency of this research is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures and/or researched amounts described above, either for the purpose for which this report has been requested, or for any other purpose. We were not engaged to, and did not conduct, an examination, the objective of which would be the expression of an opinion on the financial impact of the rebate from the water and sewer fund. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the management of the Commission of the City of Opa Locka, Florida and the Finance department. It is not intended to be and should not be used by anyone other than these specified parties. I hope that the aforementioned information is informative and robust enough to assist you with any endeavors that you may have for the City of Opa Locka, Florida. We noted that the firm of Harvey Covington & Thomas, LLC is available to assist you and the other Commissioners in all your endeavors. 3