Resentments swamp water bills payment deal
Jan 22, 2025
Resentment about an unapproved cost increase to pay county water bills via credit card overflowed in the inaugural meeting of Miami-Dade’s new Appropriations Committee, at least temporarily sinking approval of extending a decades old bill-processing contract.
Some members were surprised last week that the vendor could raise charges to residents without commission approval. All seemed upset that water and sewer officials hadn’t prepared early enough to have alternative vendors lined up when the 2003 contract expired.
Trapped by a seeming lack of alternatives, the committee postponed action for a month as administrators meanwhile try to get vendor ACI Payments Inc. to turn off its unilateral 13.7% increase in monthly payment processing fees on credit card bill payments.
As Miami Today reported last week, Miami-Dade’s contract with ACI has expired and the county is now developing its own payment processing system. But the new system isn’t ready, so the county is seeking to buy time by extending the contract with ACI for one to three years in the interim.
ACI isn’t raising costs to the county, but in the extended contract it raised customers’ cost to process credit card payments from $3.95 to $4.49, which the county legislation called a “slight increase” of 13.7%. The measure earlier last week passed in the Infrastructure, Innovation and Technology Committee.
But the word “slight” was never heard as Appropriations Committee members attacked aspects of the increase that ACI levied last September without a word to commissioners.
Calling himself “a little bit flustered and a little frustrated,” Commissioner Roberto Gonzalez began the attack by saying, “I hate companies that charge you a fee to use your own money…. What bothers me about this item is that it is asking us to retroactively approve a fee increase from $3.95 to $4.49…. How did this happen? How can we avoid this happening in the future?… So are we just rubberstamping?”
“We are in agreement,” said Amanda Kinnick, interim director of the Water & Sewer Department. “We’re working with [county chief administrative officer Carladenise Edwards] to put together a legislative urging to try to control some of these convenience fees, specifically on debit cards, where there is not an associated risk, and we are also going to put forward an RFP [request for proposals] to look at alternative solutions, potentially incorporating alternative platforms like Zelle and Venmo that don’t have these convenience fees.”
Questioned by Mr. Gonzalez, Ms. Kinnick said county attorneys had reviewed the contract and said ACI had the right to increase fees. A county attorney said commissioners absolutely have the right not to extend the contract, but the committee was told no alternative is now available.
Committee Chair Danielle Cohen Higgins asked in vain if an ACI official was present to answer questions.
“To the business community, if your item is on the Appropriations Committee agenda,” she said, “I strongly encourage you to find it within your very busy schedules to show up here and answer the questions that this board may or may not have regarding items on the agenda.”
She then theorized for the water department officials about what had happened. “I think when the company got wind that you were trying to find alternatives that are not going to impose a fee on our residents they decided ‘Let’s increase the fee because we may not have a renewed contract with Miami-Dade County in short order.’ I could be wrong … but they are not here to correct that. I am not comfortable raising the fees on our residents.”
So she moved successfully to defer action to the next meeting and have ACI “explain to us why the fee needs to be increased.”
“I am sure that given the gravitas of this board,” said Ms. Edwards, “that we will be able to negotiate something that is mutually agreeable so that the residents are not adversely impacted by the decision.”
A negotiated agreement might last a while. Frances Morris, chief financial officer of the Water & Sewer Department, said plans are to update the internal billing system first and only when that is done request proposals from vendors that would match the new system.
“We need to put out RFPs well in advance of the expiration of contracts so that we are not backed into a corner and put into a bind where we are forced to accept contracts because contracts have already expired,” Ms. Cohen Higgins responded, where commissioners “have to rubberstamp” what’s already done.
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