HomeMy WebLinkAbout04/12/93CITY COUNCIL WORK SESSION
April 12, 1993
5:30 p.m.
Large Conference Room
Roll call: Mayor Manning, Angel, Buck, Hudak, Lemke, Fox, Dell and
Wright.
Larry P. Burger, Clerk/Auditor, explained that this work session
was scheduled to discuss the billing format for water, sewer and
garbage services. Black Hawk County Data Processing is upgrading
its main frame computer, which has resulted in rewriting the system
and now affords an opportunity to make improvements to the current
system including information capacity for each account and more
complete customer information. As a part of the rewrite, this
opportunity also allows us to increase the size of the bill to an
82 x 11 inch format as opposed to the current postcard type bill.
The Waterloo Water Works now performs sewer and garbage billing for
the city at a cost of 1% of the proceeds. The city pays one-half
of the actual cost of postage, paper stock, data processing
services, etc. The Waterloo Water Works Board of Trustees has on
two occasions denied the staff's request to participate in one-half
or one-third of the annual cost of this billing change. Estimated
total annual cost is approximately $18,000.
Angel now present at 5:40 p.m.
Mr. Burger explained that the larger billing format would allow
more information to our customers reflecting changes to the
delivery of sewer and garbage services.
The 1% paid to the Water Works generates approximately $55,000
annually and automatically increases with each sewer and garbage
rate increase. In response to a question by Councilperson Fox, it
was noted that the Water Works remits cash payments to the city,
per agreement, within 45 days of receipt of same. Reed Craft,
Manager of the Waterloo Water Works, stated that even with garbage
and sewer rate increases, the 1% fee and interest accumulated from
the city's receipts has been stable in the last two (2) year even
with the declining interest rate. The Water Works and the City of
Waterloo split the actual billing cost of approximately $48,000
each.
The Water Works expends approximately $400,000 annually for
administrative costs.
Mr. Burger also explained that the new system would allow the bills
to be sent with bar codes which could in the long run result in
labor savings. Mr. Craft pointed out that the bar code system
would cost more to operate now even without the purchase of the
computer hardware since the carrier route system (mail delivery) is
cheaper and does not accommodate bar coding.
Mr. Burger stated that this is a golden opportunity to change the
billing format and provides benefit to both the Water Works and the
city. It was noted that this cost does not include the cost of
monthly billing although customers may go monthly billing at any
time. Councilperson Buck questioned whether the city could take
over the garbage, sewer and water billing. Mr. Burger said that
this would be possible. Mr. Craft pointed out that the enhanced
data processing system would allow us to switch to an 8i x 11 inch
format at any time.
Councilperson Budak stated that the $400,000 office cost seemed
quite high and questioned whether the city had ever considered a
billing agency. This question was answered in the negative.
Leon Mosley, Board Member of the Waterloo Water Works Board of
Trustees, stated that they had carefully reviewed the change in
billing format; however, it was the Board's recommendation that
there would be very little benefit to the Water Works and that if
the city was interested in pursuing the new format, the city should
be responsible for paying for it.
City Council Work Session
April 12, 1993
Page 2
Mayor Manning categorized this change as very important as we enter
the informational age. Councilperson Lemke stated that the larger
billing format should be done at whatever cost.
Councilperson Fox questioned Mr. Craft why there has not been more
communication and cooperation on this matter. Mr. Mosley responded
that the Water Works has been very satisfied with the postcard
format and sees no need to change. Mayor Manning questioned
whether the Water Works would have any information to place on the
bill if the city went to the larger billing format.
The council's direction was that the Clerk/Auditor's staff be
instructed to investigate the possibility of performing all billing
services related to garbage, sewer and water. This should be done
in a spirit of cooperation.
With no further business before the Work Session, the meeting was
adjourned at 6:15 p.m.
Larry P. Burger
City Clerk/Auditor