(a) A returned item is defined as a demand note that has been written to the City of St. Clairsville or an Automated Clearing House (hereinafter, ACH) payment to the City and has been returned by the City’s depository due to non-sufficient funds, closed account, or any other reason causing the financial institution to reject the note by the payor.
(b) When a returned item is received by the City, the Director of Finance shall write a letter to the payor informing the payor of the returned check or ACH item. In the event that the returned item was for utility services, the amount shall immediately be added back to the payor’s utility account, which may put them into an arrears position that may lead to a termination of utility services pursuant to the Termination Ordinance 96-23. In the event that the returned item was for any other service offered by the City of St. Clairsville, the payor shall be given ten working days to come to the City Building in person to make good on the returned item with a cash payment, certified check, money order, or credit card. An additional fee of twenty dollars ($20.00) shall be charged by the City for each returned item, plus whatever the depository bank charges for returning the check or payment to the City. In the event that the return item was for utility services, this fee shall be added back to the payor’s utility account; otherwise it shall be added to the amount due to the City. A returned ACH transaction automatically results in the removal from the ACH process unless the return was caused by a bank error.
(c) If the payor of any other service, other than utilities, makes no response within the ten working day period, the Director of Finance shall notify the Director of Law. The Director of Law shall write a letter to the payor informing the payor to make the payment or criminal charges will be filed. If the payor of any other service, other than utilities, makes no response within seven working days, the Director of Law shall contact the Prosecutor’s office and file criminal charges for passing a bad check.
(d) The City will not accept any checks from the payor during the time between the first notification by the City’s depository bank of the returned item and the time that the payor makes restitution on the utility account or for any other services offered by the City.
(e) If the City ultimately has no recourse to recover the funds, recreation services and any other services provided by the City will be immediately discontinued.
(f) If the City receives a second returned item from the same payor within a six month period, the preceding steps shall apply. In addition, the City will no longer accept payment in the form of a personal check in the payor’s name or anyone else’s name on their behalf. Any and all services must be paid in cash, by cashier’s check, money order, or credit card for the next twelve months. At the end of the twelve month period, when a customer is reinstated to personal check payments, a third returned item during the following year will result in the City no longer accepting any payments in the form a personal check from that payor. All future payments must be made in cash, by a cashier’s check, money order, or credit card from that date forward.
(g) Upon receipt of the first returned item, the Director of Finance shall inform the payor of the City’s policy on returned items. The Director of Finance shall notify the department of the actions taken against its customers.
(h) The Director of Finance and Utility Office Manager may make adjustments in extenuating circumstances.
(Res. 2005-66. Passed 11-21-05.)