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CITY OF SAN BERt, ..RDIN~REQUEST ~ lR COUNCIL ACTION
Frcm: Wayne Overstreet
Subject: Amendment to the San Bernardino
Municipal Code Section 3.10.010
Charge for Collection of Returned
Checks
~dpt: Facilities Management
Date: December 8, 1989
Synopsis of Previous Council action:
August 5, 1980 adopted Ordinance No, 3955
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Recommended motion:
That further reading be waived and the ordinance
laid over for final adoption.
Contact person:
Wavne Overstreet
Phone:
384-5244
Supporting data attached:
Yes
Ward:
All
FUNDING REQUIREMENTS:
Amount: N / A
Source: (Acct. No.)
(Acct, Description)
Finance:
ouncil Notes:
Agenda Item No.
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CITY OF SAN BERJ.. ..RDINO - REQUEST " ~R COUNCIL ACTION
STAFF REPORT
August 5, 1980, the City adopted Section 3,10,010 of the San Bernardino
Municipal Code (SBMC), imposing a charge of six dollars, ($6,00) for
each check that was returned as uncollectible, the charge to be added
to all sums due,
Ten (10) cities and business' within the surrounding areas were surveyed
to see their charB"es, We found that their charges were as follows:
County of San Bernardino"",""""""""""'"
City of Rialto",,""""""""""""""""""
City of Fontana"",,""'" , """"""""""""
City of LOMa Linda"",,"""""""""""""'"
City of Colton"",,"""""""""""""""""
Stater Brothers""""",.""""""""""""",
Von's",,""""""""""""""""""""""
Winston Tires"""""""".""""""""""",
Southern California Gas Co""""""""""""",
Southern California Edison Co""""""""""""
$10,00
$12,00
$10,00
$10,00
$15,00
$10,00
$10,00
$15,00
$ 7,50
$ 5,00
This departr.Jent averages approximately thirty (30) to forty (40) returned
checks per year, It requires us to expend approximately one and a half
(11) hours per check to clear it up, at an average hourly rate of $10,14,
It costs the City $15,21 to collect or charge off a returned check, The
California Government Code, Section 6157 allows a charter city to charge
not more than $10,00 for returned checks,
Based upon our survey, and the State Governr.Jent Code, it is recommended
that our Municipal Codes, Chapter 3,10 "Checks Returned for Insufficient
Funds" be changed from six dollars ($6.00), to ten dollars ($10,00),
and the attached ordinance be adopted,
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1 ORDINANCE NO,
2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
3.10.010 BY INCREASING THE CHARGE FOR THE COLLECTION OF RETURNED
3 CHECKS DUE TO INSUFFICIENT FUNDS.
4 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO
DO ORDAIN AS FOLLOWS:
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SECTION 1.
Section 3,10,010 of the San Bernardino
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Municipal Code is amended as follows:
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"A charge of TEN DOLLARS ($10.00) is imposed for the cost
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of collection of each check payable to the City of San
Bernardino in payment of any tax, fee, fine or charge and
which is returned by the City's depository as being
unco11ectible for insufficient funds or for other reasons.
The charge of TEN DOLLARS ($10.00) shall be added to a11
sums due for the tax, fee, fine or charge.
From the time
the City is notified of the return of the check until
payment in full is made, including the charge imposed
pursuant to this ordinance, the City shall not be obligated
to provide or grant to the maker of the check any services
or to permit approval to which the payment relates."
I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on the
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PZ/dys/ses
December 27, 1989
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1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTION
3,10.010 BY INCREASING THE CHARGE FOR THE COLLECTION OF RETURNED
2 CHECKS DUE TO INSUFFICIENT FUNDS,
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day of
, 1990, by the following vote, to wit:
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Council Members:
AYES
NAYS
ABSTAIN
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ESTRADA
6 REILLY
FLORES
7 MAUDSLEY
MINOR
8 POPE-LUDLAM
MILLER
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City Clerk
The foregoing ordinance is hereby approved this
day
of
, 1990,
W, R. Holcomb, Mayor
16 City of San Bernardino
17 Approved as to form
and legal content:
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JAMES F. PENMAN,
City Attorney
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By: ~v."",,, .jI~
o
PZ/dys/ses
December 27, 1989
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