City Clerk

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA AMENDING THE FEE SCHEDULE TO EXCLUDE REAL PROPERTY LEASE PAYMENTS BY CREDIT CARD AND TO ELIMINATE THE CAP ON CREDIT CARD PAYMENTS.

WHEREAS, Resolution 99-50 set a minimum for Credit Card payments of ten dollars; and

WHEREAS, Resolution 99-116 set a cap on Credit Card payments; and

WHEREAS, the intent for setting the cap on Credit Card payments was to address lease payments being made by credit card; and

WHEREAS, the Credit Card cap unintentionally affected several user groups; and

WHEREAS, subsequent computer runs made by the Finance Department have indicated that bad debt collections have gone down by approximately $200,000 in the last four years by using Credit Cards as opposed to checks; and

WHEREAS, the City Manager has negotiated with NBA new rates for Credit Cards as follows; and

TYPE New Old

Qualified 1.85 1.99

Mid Qualified 2.49 2.63

Non Qualified 3.00 3.14

WHEREAS, a number of commercial vessel operators have contacted the City Manager's Office and indicated that their preferred method of payment is with a Credit Card, because it is easier to carry than checks, they are used to paying everything with credit cards, and, etc.; and

WHEREAS, Credit Card payments increases the efficiency of the Port/Harbor Office and promotes viable payment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska amends the fee schedule to exclude real property lease payments by Credit Card and eliminates the cap on Credit Card payments so that the fee schedule regarding Credit Card payments reads as follows:

Credit Card are accepted for other than real property lease payments with a minimum of $10. purchases and/or payment of bills - minimum purchase amount of $10.00 and the maximum is $500.00.

PASSED AND ADOPTED by the Homer City Council this 24th day of January, 2000.

CITY OF HOMER

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ATTEST: JACK CUSHING, MAYOR

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MARY L. CALHOUN, CMC/AAE, CITY CLERK

Fiscal Note: Decrease bad debt and bad debt costs.