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Ord 661 Amending Chapter 2 Section 2-162 Establishing a Credit Card processing or handling feeTOWN OF WESTLAKE ORDINANCE NO. 661 AN ORDINANCE OF THE TOWN OF WESTLAKE, TEXAS AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE V, FINANCE, DIVISION 1. GENERALLY, ESTABLISHING SECTION 2-162, A CREDIT CARD PROCESSING OR HANDLING FEE. PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY CLAUSES; AND PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE. WHEREAS, Chapter 132 of the Local Government Code authorizes municipalities to collect a fee for processing or handling at the point of sale for the use of a credit card to pay a municipal fee, fine or other charge, said amount being reasonably related to the expense incurred in processing or handling the credit card payment, not to exceed five percent (5%) of the amount of the fee, fine, court cost or other charge ("Fee"); and WHEREAS, Chapter 132 of the Local Government Code further authorizes municipalities to collect a service charge if, for any reason, a payment by credit card is not honored by the credit card company on which the funds are drawn, said amount being equivalent to that charged for the collection of a check drawn on an account with insufficient funds ("Service Charge"); and WHEREAS, Chapter 132 of the Local Government Code also authorizes municipalities to charge a reasonable fee designed to recover the costs incurred in providing through the internet: access to information, collection of payments for taxes, fines, fees or other charges; or other services authorized by law; and WHEREAS, Chapter 132 of the Local Government Code also allows municipalities to contract with a vendor to provide access, collect payments or provide authorized services; and WHEREAS, the Town Council of Westlake ("Town Council") has determined that the Town of Westlake, Texas ("Town") receives many requests to pay for municipal fees, fines and other charges through the use of a credit card; and WHEREAS, the Town Council has determined that it is in the best interest of the Town and its citizens to allow individuals to pay for municipal fees, fines and other charges through the use of a credit card; and WHEREAS, the Town Council has determined that allowing the payment of municipal fees, fines and other charges through the use of a credit card requires the Town to incur additional expenses for offering this service; and WHEREAS, the Town Council has determined that it would be beneficial to the citizens of the Town to provide access to information, collect payments of taxes, fines, fees or other charges, or other municipal services authorized by law through the internet; and Ordinance 661 Page 1 of 3 WHEREAS, the Town Council has determined that providing the access to information, collect payments of taxes, fines, fees or other charges, or other municipal services authorized by law through the internet is not feasible without the imposition of a charge designed to recover the costs directly and reasonably incurred in providing the access or service; and WHEREAS, the Town Council has determined that the additional expenses incurred by the Town for offering this service will be significantly less for payment of charges commonly found on utility bills by credit card, as opposed to the payment of all other municipal fees, fines or other charges by credit card; and WHEREAS, as a result of this discrepancy between utility bills and all other municipal fees, fines and other charges, the Town Council has determined that it is in the best interest of the Town to collect one processing and handling fee for the payment of utility bills, by credit card, and another processing and handling fee for payment of all other municipal fees, fines and other charges, by credit card; and WHEREAS, the Town Council has determined that it is in the best interest of the Town and its citizens to charge the Fee and Service Charge, if necessary, to offset the cost of providing this service of convenience as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That all matters stated in the preamble are found to be true and correct and are incorporated herein as if copied in their entirety. SECTION 2: That Chapter 2, Administration, Article V, Finance, Division 1. Generally, Section 2-162, Credit Card Processing and Handling Fee. The Town of Westlake Code of Ordinances is hereby amended as follows. Sec 2-162:. Findings Incorporated. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. Sec 2-163: Establishment of Processing or Handling Fee. A processing or handling fee of three percent (3%) is hereby established to be charged by the Town at the point of sale for processing or handling each time a credit card is used to pay a utility bill. For the purposes of this Ordinance, a utility bill includes those charges commonly found on a Town utility bill, including but not limited to charges associated with water, sewer, trash, storm drainage and optional donations. A processing or handling fee of five percent (5%) is hereby established to be charged by the Town at the point of sale for processing or handling each time a credit card is used to pay all other municipal fees, fines or other charges. The Town Council finds that said amounts are reasonably related to the expense incurred by the Town in processing or handling the credit card payment. Sec 2-164: Establishment of Service Charge. A service charge in an amount equivalent to that charged for the collection of a check drawn on an account with insufficient Ordinance 661 Page 2 of 3 funds is hereby established to be charged by the Town if, for any reason, a payment by credit card is not honored by the credit card company on which the funds are drawn. Sec. 2-165 — 2-180 reserved. SECTION 3: Savings/Repealing Clause. All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict; but such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and effect. SECTION 4: Severability. Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. The Town hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid. SECTION 5: Effective Date. This Ordinance shall become effective immediately upon its passage. PASSED AND APPROVED ON THIS 29th DAY OF AUGUST 2011. r ATTEST: Lura Wheat, Mayor rn Kelly dward awn Secretary Tomas . r, Town Manager ©�I.1 OF Wc� APPROV H S TQ RM: M L. anton ry, g n Attorney•. FxA S Ordinance 661 Page 3 of 3