SUBJECT
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An Ordinance of the City of Laredo, Texas, amending section one of Ordinance 2023-O-062 of the City of Laredo and authorized to increase the Insufficient Fund Fee to $100.00 plus the per axle toll fee for southbound commercial vehicles that arrive at the toll booth with insufficient funds in the Automatic Vehicle Identification (AVI) System and if an AVI account has multiple insufficient fund U-Turns the company must leave a credit card on file and schedule automatic replenishment of funds as further described in Exhibit “A” and hereby repealing all conflicting sections in all ordinances currently in effect.
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PREVIOUS COUNCIL ACTION
On May 20, 2024, City Council approved the public hearing and introductory ordinance amending Ordinance 2023-O-062 of the City of Laredo and authorized to increase the Insufficient Fund Fee to $100.00 plus the per axle toll fee for southbound commercial vehicles that arrive at the toll booth with insufficient funds in the Automatic Vehicle Identification (AVI) System and if an AVI account has multiple insufficient fund U-Turns the company must leave a credit card on file and schedule automatic replenishment of funds as further described in Exhibit “A” and hereby repealing all conflicting sections in all ordinances currently in effect.
BACKGROUND
The need to increase the insufficient fund fee for southbound commercial vehicles utilizing the Automatic Vehicle Identification System (AVI) is to continue to avoid a disruption to the flow of traffic.
Currently when a vehicle arrives at the toll booth and the AVI account associated with that vehicle does not have enough funds to cover the toll fee, the vehicle is not allowed to continue into Mexico and advised to turn around and exit the toll facilities.
The average insufficient fund U-Turns per month at Colombia Solidarity Bridge are 20 and at World Trade Bridge are 260.
COMMITTEE RECOMMENDATION
The Port of Entry Advisory Committee has been made aware of this process and unanimously agreed to increase the insufficient fund fee and if an AVI account has multiple insufficient fund U-Turns the company must leave a credit card on file and schedule automatic replenishment of funds to continue to decrease the U-Turn occurrences.
STAFF RECOMMENDATION
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Increase the insufficient fund fee to $100.00 plus the per axle toll fee for southbound commercial vehicles that arrive at the toll booth with insufficient funds in the AVI account and make it mandatory to leave a credit card on file and schedule automatic replenishment of funds for companies with multiple violations.
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Fiscal Impact
Fiscal Year: 2024
Budgeted Y/N?: Yes
Source of Funds: Fees
Account #: 553-4015-351-1059 & 553-4061-351-1059
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
The estimated monthly financial impact if the average U-Turns per month continue will be $34,000.00