HomeMy WebLinkAboutAgenda Report - May 20, 1992 (76)CITY OF LODI
AGENDA TOM UTILITY BILL AND COLLECTION SYSTEM
MEETING DATE: May 20, 1992
PREPARED BY: Finance Director
RECONLME DED ACTION 1. That the City Council authorizes the Finance Department to
conduct a one-year test and evaluation of a new billing format
for utility bills which will be mailed to City customers with a
return envelope, and
2. That the City Council authorizes Public Worcs to purchase and install a curb -side utility bill drop
box at City Hall. and
3. That the City Council approves and appropriates funds for the purchase or ease of the following
equipment, services and supplies:
• Twc) (2) ANZAC Lazar Jet Printers at a cost not to exceed $16G500 plus an annual
maintenance charge of $2,500.
• One (1) Pitney Bowes folder/inserter at a cost not to exceed $9500 plus an annual
maintenance charge of $1,250 per year.
Three (3) INTEWEC wands at a cost not to exceed $500.
• Design services and purchase of forms and envelopes at an annuals cost of $18,000 Pei
year -
Purchase of mailing servioes for utility bills at a cost of $9,500 per j year.
• Purchase and installation of a curb-sideutility bill dropbox at a cost Mot to exceed $1,500
BACKGROUND INFORMATION At the shirt -sleeve meeting on May 5. 119, the staff presenter
the City Council vlh a review of possible changes to the City':
utility bill and collection system intended to improve the Cit`
utility billing system by providing better information tc
customers. These changes include; (1) the design of a new
bill which presents not only service costs but consumption history for the current pe*iod and for the sam,
period in the prior year; (2) mailing the bill with a return envelope; and, (3) providing a curb -side drol
box to assist handicapped and non -handicapped customers when paying their bills at City Hall.
These changes were recommended to Council based on requests by members of the City Council. Cit;
staff, and City customers; and are. in part, in response to recent legislation which requires the City t(
provide utility customers with consumption history. In addition. the curb -side drop box will assis
handicapped customers as well as non -handicapped customers in paying their bills.
APPROVE %I of
THOMAS A PETERSON rec"Wo owM
City Managw 00
CC -1
COST AND SAVINGS
At the shirt -sleeve meeting cn May 5, 1992, staff discussed the cost involved in along these changes,
which is estimated to be an additional $34,000 per year plus one-time startup costs of $28,000. The
increase in operating costs of $34,000 is attributed to the increase in postage ($16.000 per year), the
increase in cost for bills and envelopes ($8,400 per year). and the cost of a mailing service ($9,600 per
yam)
staff anticipates that ihm costs will be offset by the savings gained by consolidating other City mail with
the utility bill (estimated savings of 525,000 to $29,000 per year) and the added investment earnings
achieved by the decrease in time needed to process paid bills in the Finance Department (estimated
savings of $6,700 per year) and improved efficiency savings of $10,000 per yam.
To obtain the lowest postage rates possible, staff has met with the Rst Office oarri� several occasions to
obtain their advice and assistance. At their recommendation, staff will add informhtion to the customer
address and bill which allows the City to obtain bulk rates. In addition, staff believes that using bar code
and scanning wands will improve staff efficiency by significantly decreasing the time to process bills.
TEST AND EVALUATION
To limit the potential for failure and to ensure that the change from the current Bill to the new bill is
made successfully, the Finance Director requests that he be given the nock► latitude to make
purchasing decisions in the selection and award of contracts to vendors and suppliers of equipment,
supplies and services based on price. reputation, assistance given to the City and experience. During the
development o f new foms and procedures, staff must experiment and test with the forms, equipment and
procedures to be used to determine which is workable. Accordingly. it is necessary to make purchasing
decisions as development occurs. In some instances, it may be in the City's best interest to lease
equipment for three to six months to determine if the equipment performs up to expectation or whether
alternative equipment or servioes should be used.
SHIRTSLEEVE MEETING
Based cm comments and suggestions by Council at the shirt -sleeve meeting on Mly 5, 1992, staff has
redesigned the utility bill for ane horizontal tear of that portion of the bill to be returned with payment.
FUN -DING
This project will be funded by a one time appropriation of Fund Balance from the General Fund of
$34,000 and Fund Balance of the Capital Outlay Reserve of $28,000.
Dixon Flynn ,l
Finance DireCtor
CITY OF LODI
SPECIAL ALLOCATION REQUEST
Ir: Finance Director DATE: May 20, 1992
FROM: City Clerk PROJECT NUMBER: /a - a5o • 00 - 5 00
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Request 1s made for funds to accomplish the following project which whs not included in
the current budget:
Description of Project Estimated Cost
Appropriation of funds for the purchase or lease of equipment, services, and supplies to
implement a neer billing format for utility bills
$62,000.00
534,000 - General Fund
$28,000 - Capital Outlay Reserve
(If you need more space, use additional sheet and attach to this form)
Date of Approval - May 20, 1992 Amount Approved - Not to ekeed $62,000
Council XXXXX City Manager
FUND OR ACCOUNT TO BE CHARGED
Current Budget $
Contingent Fund 4
Capital Outlay Reserve $ 2d, 000 • as
Utility Outlay Reserve $
Hotel/Motel Tax Reserve - $
General Fund Operating Reserve $
i
01 xo ynn,
Finance Director
Prior Year Reserve 4
General Fund Surplus $ -,M,00+
Gas
t.oa+
Gas Tax Funo $
Other (Election) $
W1 Ce M..Reimc e'
City Clerk
Submit this form in duplicate to the Finance Director. Distribution after approval will
be as follows: 1) Originating Department 2) Finance Department