AGENDA MEMORANDUM

Meeting Date:           February 12, 2007

From:                          Bill Pfeilsticker, Finance Director

Subject:                      Resolution  authorizing  an agreement with Tijuana Flats Burrito Company to provide a payment method to eliminate unpaid electric utility charges.

Staff Recommendation:

Staff recommends approval of the agreement between Tijuana Flats Burrito Company (Tijuana Flats) and the City of Leesburg (the City)  whereby Tijuana Flats agrees to pay the City for uncollected electric utility charges with twenty-four equal monthly interest free installments of $594.57 for a total of $14,269.68. Those charges will be in addition to the regular monthly utility bills.

Analysis:

Due to an administrative error, Tijuana Flats was incorrectly billed for electric service from January 2006 through August 17, 2006.  The “multiple 40” meter type was not described in the billing system, therefore, they were only charged for 1/40 of the energy delivered.  An internal audit of accounts found the discrepancy.

Tijuana Flats is a new business in Leesburg and has insufficient cash flow at this time to pay the bill more quickly than proposed. No interest is proposed because the City is primarily at fault. The customer had some responsibility to notify the City of the very apparent error in their electric bills but failed to do so.  The owner and City’s Finance Director negotiated the proposed payment schedule.

Code of Ordinance Section 22-196 describes in detail City electric rates and how charges are to be billed. The ordinance obligates the City to collect for all electricity sold and does not allow for exceptions. State law also supports the collection for under-payments of this sort.

Options:

1.  Approve the resolution as presented, or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact:

The revenues totalling $14,269.68 will be credited to the Electric Fund as  received.

Submission Date and Time:    2/7/2007 6:52 PM2/7/2007 9:57 AM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                       Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                     Deputy C.M. ___________________                                          Submitted by: City Manager _______RS____________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH TIJUANA FLATS BURRITO COMPANY TO PROVIDE A PAYMENT METHOD TO ELIMINATE UNPAID ELECTRIC UTILITY CHARGES; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement with Tijuana Flats Burrito Company, whose address is 276 Springside Road, Longwood Florida 32779, for $14,269.68 uncollected electricity charges. 

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 12th day of February 2007.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk