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2002-004-ORD CREATING NEW ARTICLE XII TO CHAPTER 2 OF CODE OF ORDINANCES ENTITLED "PAYMENT OF FEES AND OTHER COSTS" ORDINANCE NO. 2002-004 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, CREATING A NEW ARTICLE XII TO CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, ENTITLED "PAYMENT OF FEES AND OTHER COSTS"; AUTHORIZING THE PAYMENT OF FEES, FINES, COURT COSTS, AND OTHER CHARGES TO THE CITY OF PARIS BY CASH, CHECKS, OR CREDIT CARDS, WHERE APPROPRIATE; IMPOSING A 5% CONVENIENCE FEE ON PAYMENT BY CREDIT CARDS; AUTHORIZING THE COLLECTION OF SERVICE CHARGES; AUTHORIZING CONTRACTS FOR COLLECTION AND SEIZURE OF OUTDATED OR UNAUTHORIZED CREDIT CARDS AND THE COLLECTION OF CHARGES FOR THE RETURN OF SAID CARDS; PROVIDING FOR DEPOSIT OF FEES SO COLLECTED; AUTHORIZING THE DIRECTOR OF FINANCE TO ENTER INTO ALL AGREEMENTS NECESSARY TO IMPLEMENT TillS ORDINANCE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER; PROVIDING A SAVINGS CLAUSE; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Chapter 132 of the Texas Local Government Code authorizes the governing body of municipalities to authorize appropriate municipal officials who collect fees, fines, court costs, or other charges on behalf of the municipality to accept payment by credit card for said costs, subject to certain conditions and additional fees as authorized by Chapter 132; and, WHEREAS, the City Council desires to authorize the Finance Director to collect fees, fines, court costs, and other charges due the City of Paris by credit card, where the Finance Director deems same appropriate; and, WHEREAS, the City Council finds and determines that collection of monies owed the City of Paris by cash, check, or credit card is in the best interests of the citizens of the city of Paris; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That Chapter 2, Administration, of the Code of Ordinances of the City of Paris, Paris, Texas, is hereby amended to add a new Article XII, entitled "Payment of Fees and Other Costs," said Article XII to read as follows: "ARTICLE XII PAYMENT OF FEES AND OTHER COSTS Sec. 2-600. Definitions. As used in this Article, the following words shall have the definitions ascribed to them by this section: 1. 'Cash' shall mean legal tender issued by the United States of America. 2. 'Check' shall mean a check drawn on a bank in a form acceptable to the Director of Finance of the City of Paris, provided said check is not otherwise defective on its face and provided the issuer of said check has not tendered checks for payment to the City of Paris in the past which were returned for insufficient funds. 3. 'Credit Card' shall mean a card, plate, or similar device issued by a banking . institution and used to make purchases on credit or to borrow money, or a similar card used to directly debit a bank account, provided said card is issued by an issuer acceptable to the Director of Finance of the City of Paris. 4. 'Director' shall mean the Director of Finance of the City of Paris. Sec. 2-601. Method of payment. The Finance Director of the City of Paris shall be and is hereby authorized to accept cash, checks, or, where the City has appropriate equipment for the receipt of same, credit cards as a means of payment of fees, fines, court costs, or other charges due and payable to the City of Paris. Provided, however, the City shall not be obligated to accept payment by credit card where the amount due and payable to the City is less than twenty-five dollars ($25.00), and acceptance of payment by credit card is hereby authorized by personal presentment of the credit card only, and not by telephonic or other electronic means. Sec. 2-602. Convenience Fee. The Finance Director shall be and is hereby authorized and directed to assess a convenience fee of five percent (5 %) of the amount of a fee, fme, court cost, or other charge being paid by the use of a credit card, as an amount reasonably necessary and related to the expense incurred by the City of Paris to accept said payment by credit card. Sec. 2-603. Service Charge. If, for any reason, a payment by credit card to the City of Paris is not honored by the credit card company on which the funds are drawn, the Director shall be and is hereby authorized to collect a service charge from the person who owes the fee, fine, court cost, or other charge to the City of Paris. The service charge is in addition to the original fee, fine, court cost, or other charge and is for the collection of that original amount. The amount of the service charge shall be the same amount as the fee charged for the collection of a check drawn on an account with insufficient funds. Sec. 2-604. Encumbrance of credit card; fee. The Director is hereby authorized to enter into agreements with companies which issue credit cards to collect and seize credit cards issued by the company that are outdated or otherwise unauthorized, and the Director is further authorized to charge the company a fee for the return of said credit cards. Sec. 2-605. Disposition of additional fees and charges. The Director shall deposit in the consolidated cash account with the official depository of the City of Paris any amounts collected by the City of Paris pursuant to this article for convenience fees, service charges, or other fees incidental to the use of credit cards. " Section 3. That the Director of Finance for the City of Paris shall be and is hereby authorized to enter into all necessary agreements with credit card issuers, equipment vendors, or other entities necessary and incident to implementation of this ordinance, including but not limited to form of payment agreements, customer processing agreements, equipment agreements (purchasing or rental agreements), or other similar agreements. Section 4. That all ordinances or portions of ordinances in conflict with the terms and provisions hereof shall be and are hereby repealed to the extent of such conflict only. Section 5. That, if any clause, sentence, paragraph, section, or other portion of this ordinance shall be determined as unlawful by a court of appropriate jurisdiction, the remainder of this ordinance shall remain in full force and effect, it being the intention of the City Council of the City of Paris that the terms and provisions of this ordinance are severable. Section 6. That this ordinance shall be effective February 1, 2002. ----... PASSED, APPROVED, AND ADOPTED this 14th day of January, 2002. ATTEST: '-m~"~~~ Mattie Cunningham, City Clerk APPROVED AS TO FORM: