LSBGHORZ

AGENDA MEMORANDUM

 

 

Meeting Date:           October 27, 2008

 

From:                          Jerry Boop, Finance Director, CPA, CGFO

 

Subject:                      Resolution adopting the Identity Theft Prevention Policy

 

 

Staff Recommendation:

Staff recommends approval of the Identity Theft Prevention Policy to become effective November 1, 2008.

 

Analysis:

The Fair and Accurate Credit Transaction Act of 2003 (FACTA) added new sections to the federal Fair Credit Reporting Act (FCRA, 15 U.S.C. 1681 et seq.), intended primarily to help consumers fight the growing crime of identity theft.  Accuracy, privacy, limits on information sharing, and new consumer rights to disclosure are included in FACTA. (Pub. L. 108-159, 111 Stat. 1952).  The changes proposed in this policy will ensure compliance with FACTA and will have the additional effect of improving the integrity of the information the City receives from customers and as a result, will improve collections.

 

The program will identify “RED flags” which include patterns, practices or specific activities that indicate the possible existence of identity theft.  This will protect our citizens’ information along with protecting the City of Leesburg by ensuring the information the customer provides is accurate. 

 

The City  currently uses Online Utility Exchange to generate credit checks.  Customers agree to a personal credit check at the applicant's expense of $5.00.  If the personal credit check demonstrates a credit record satisfactory to the city, the initial deposit may be eliminated or reduced.  However, with the new FACTA regulation,  the City is required to implement the program on new accounts as well as existing accounts.  Staff recommends phasing in the existing customer credit reports each quarter, beginning in December 2008 and each quarter thereafter, to minimize the fiscal impact. 

 

The advantages in implementing such a program now will in the long term reduce collections and write-offs, and the City will be able to increase its profit margin, cashflow and liquidity.

 

Options:

1.  Approve the Identity Theft Prevention Policy effective November 1, 2008, or

2.  Such alternative action as the Commission may deem appropriate

 


Fiscal Impact

ONLINE Utility Exchange will charge $.40 per credit check for large batch accounts.  The City has approximately 30,000 existing customers and anticipates approximately 2,000 new customers by the end of this fiscal year. 

Estimated Costs:

30,000 existing customers batched at .40 per check = $12,000.00

  2,000 new customer accounts at $5.00 per check  =    $10,000.00 *

 

*If applicant requests a waiver of deposit, the applicant will pay the $5.00 credit check.

 

  

Submission Date and Time:    10/24/2008 6:01 PM____

 

Department: ______________________

Prepared by:  ______________________                      

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                 

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. _____JB___________                                     

                              

Deputy C.M. _______EFS_________                                                                         

Submitted by:

City Manager ___________________

 

Account No. 001-1332-513.49-20___

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ____$90,000.00__________

 

Available ___$90,000.00__________


 

RESOLUTION __________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, ADOPTING AN IDENTITY THEFT PREVENTION POLICY, PURSUANT TO FEDERAL TRADE COMMISSION UNDER THE FAIR AND ACCURATE CREDIT TRANSACTIONS ACT OF 2003(FACTA) 16 CFR PART 681; AND PROVIDING AN EFFECTIVE DATE.

 

            WHEREAS, the Federal Trade Commission, through the Fair and Accurate Credit Transactions Act of 2003(FACTA) 16 CFR Part 681, adopted new requirements relating to the identity theft with respect to our accounts; and

 

WHEREAS, the new requirements help to identify red flags to prevent identity theft of City customer accounts; and

 

            WHEREAS, the FACTA has adopted new guidelines and regulation requirements, which require that the City:

 

(1)    implement a written program to detect, prevent and mitigate identity theft in    connection with the opening of an account or any existing accounts;

(2)    identify patterns, practices, and specific forms of activity that indicate the possible existence of identity theft and respond to fraud and activity alerts using the Red Flag sources;

(3)    establish reasonable guidelines that apply in connection with a consumer’s credit or deposit account that has been inactive for two years;

(4)    establish reasonable procedures for notifying customers of potential identity theft;

(5)    properly dispose of consumer report information; and

(6)    ensure the program is updated periodically, to reflect changes in risks to customers    from identity theft. 

 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA,

 

THAT the attached Identity Theft Prevention Policy is hereby adopted as an official policy of the City of Leesburg, to govern (together will applicable provisions of State and Federal law as they now exist or as they may hereafter be amended) the collection, use, retention and dissemination of the information, relating to the identity theft with respect to our account holders and customers to identify red flags and address account discrepancies.  And further,

 

THAT this resolution shall become effective November 1, 2008.

 

 

 

 

 

 

 

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg at the regular meeting held October 27, 2008. 

 

                                                                        __________________________________

                                                                        Mayor

 

ATTEST:

 

 

_______________________________________

City Clerk