05-A Fees and Other CostsAGENDA INFORMATION SHEET
PROJECT: Consider an ordinance 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," to authorize the payment of City fees and other
charges by cash, check, or credit card where appropriate.
BACKGROUND: The City Council has requested the Finance Department to implement a program
authorized under State law whereby the City can accept payment of fees, fines, court costs, and other similar
charges by credit card. Chapter 132 of the Texas Local Government Code authorizes such arrangements,
subject to the terms and provisions of said Code. As a consequence of said request, the City Attorney's office
in conjunction with the Finance Department has prepared an ordinance amending the Code of Ordinances to
add a new Article XII which would address the issue of payment of fees, including payment by credit card.
DESCRIPTION: The proposed ordinance tracks very closely the provisions of Chapter 132 of the Texas
Local Government Code. As a consequence of adopting this ordinance, the City Finance Director would be
authorized, where appropriate, to accept credit cards where the City has equipment available to process same
for payment of City fees, fines, court costs, or other similar charges. By adoption of this ordinance the City
would be able to accept payment by MasterCard or Visa Credit Cards. There are certain limitations contained
in the statute and also contained in the ordinance as to those payments. Payments by credit card would not
be permitted where the charge was less than $25.00; this reflects the City's need to collect an appropriate
convenience fee as authorized by the statute in the amount of five percent (5%) as the amount reasonably
necessary and related to the expense incurred by the City in accepting payment by credit card. Although the
statute does not explicitly address the issue, the ordinance also authorizes payment by debit card. Other
charges authorized in the statute, such as service charges for payment by a credit card which is not honored
by the credit card company, are likewise authorized by the ordinance, in a manner similar to a fee which is
charged for collection of a check which is returned for insufficient funds. Finally, the Director of Finance is
authorized to enter into all necessary agreements with approved credit card issuers and other vendors necessary
to implement the program.
COST: The cost to the City of Paris will be the additional cost of processing payment through credit card
issuers. In return for that expense, the City will be able to assess a statutorily authorized 5% convenience fee.
RECOMMENDED ACTION: Consideration of the Ordinance.
STAFF CONTACT: Gene Anderson, Director of Finance, and Larry W. Schenk, City Attorney
SCHEDULE: The program will be implemented as agreements are signed between approved credit card
issuers and the City and agreements with vendors of equipment necessary to implement the program, as well
as a training period for City staff.
COUNCII, DATE: Consider approval ofthe ordinance at City Council's January 14, 2002, regular Council
meeting.
ADDITIONAL MATERIALS: See enclosed ordinance.
DRAFT
J:\Attorney\ALICE\ORDWORK\CiJRRENT\Fees & Other Costs - Add Article Ord.wpd
January 12, 2002
ORDINANCE NO.
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; IMPOSINGA 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 THIS 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, fine, 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.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney