HomeMy WebLinkAbout06.01.2009COUNCIL WORK SESSION
June 1, 2009
5:00 p.m.
Council Chambers
Members present: Mayor Hurley, Cole, Getty, Hart, Greenwood, Steve Schmitt, Welper, Reggie
Schmitt.
Moved by Reggie Schmitt, seconded by Steve Schmitt that the Agenda, as proposed, be
approved. Ayes: Seven. Motion carried.
Mayor Hurley explained that a little over a year ago Dennis Clark, General Manager of the
Waterloo Water Works; Nancy Eckert, City Clerk; and Kim Veeder, Black Hawk County IT
Director; started talking about how to improve the combined utility bill and also get our
messages out to the citizens.
Dennis Clark, General Manager of the Waterloo Water Works, noted that the current invoice
used by the Water Works is small and is limited on the number of lines that can be used. We are
unable to put number of garbage cans, size or recycling information. The proposed form will be
8%2 " x 11" with a bar code. There is a box on the right side to be used by the Water Works and
the City to get messages out to the citizens. The bottom portion will be torn off and returned to
the Water Works in the enclosed return envelope.
The advantages to the new billing are: customer privacy, bill appearance, improved customer
communications, extra space, return envelope and up to two pages for inserts. The disadvantage
is the increased costs which is borne on a 50/50 basis per the agreement approved in 1976. In
addition, the Water Works collects 1 percent from the city's revenue.
The committee, consisting of Michelle Weidner, Dennis Clark, Nancy Eckert, Mary Ratovich
and Kim Veeder, considered a private turnkey system or lease/purchase equipment. With the
turnkey system there are three days where the data cannot be looked at and inserts have to be
printed by the private company. The second option was to lease/purchase equipment from
Pitney Bowes. The process would remain at Black Hawk County who runs the patch, prints the
invoices, folds and mails out. The cost for the turnkey process is almost identical. The
consensus of the committee was that using the same process reduced the fear of failure and
provided more flexibility for last minute changes and the option of the inserts.
Mr. Clark reviewed the current costs vs. the cost for the new process. The lease/purchase for the
equipment will add an additional $40,000 to $50,000 per year. It was the consensus of the
committee to lease the equipment because of the upfront cost plus there was a maintenance cost
if the equipment is purchased. The lease system includes the annual software updates.
Mr. Clark reported that the Board of Trustees of the Waterloo Water Works approved the
lease/purchase and new invoice last week because they felt it improved customer service and the
shared talents between the Water Works, Black Hawk County and the City of Waterloo.
Mayor Hurley asked if direct deposit customers will still get a statement. Mr. Clark responded
he thought they would and also receive any messages.
Councilperson Reggie Schmitt suggested that the cost could be less than $40,000.00 because we
can use the system for the stormwater brochures. Mr. Clark indicated that was discussed and
also that we can use the new equipment for the Water Works Consumer Confidence Report, and
the committee talked about the garbage schedule, etc. The message box can be used for
information that is not time sensitive because of the quarterly billing cycle.
Councilperson Steve Schmitt asked if the committee talked to other vendors. Mr. Clark
responded Pitney Bowes was the only vendor with this type of equipment that the committee
talked to, but they did talk to Professional Office Concepts. In answer to a question, Mr. Clark
noted that the City of Dubuque uses this type of equipment as well as other cities.
Council Work Session
June I, 2009
Page 2
Councilperson Cole stated she likes the new proposal because of the return envelope, the fact
that there will be space to use for City and Water Works' messages and because it will be more
customer friendly. Mr. Clark noted that it will give both entities a chance to tell their story in a
positive, accurate way.
Councilperson Welper asked if the committee looked at selling to non -profits using the insert
capabilities. Mr. Clark responded the committee did not go that far,
Eric Thorson, City Engineer, stated that they are excited about the new system for the
stormwater requirements. They can mail out flyers rather than brochures, which will be more
cost effective.
Councilperson Getty stated he is pretty happy to see this happen. There is not much difference
between purchase/lease price, and he noted there is less upfront cost with the lease. Mr. Clark
noted that at the end of five years, they will own the equipment.
This item is on tonight's council agenda for council approval.
With no further business before the council, it was moved by Getty, seconded by Cole that the
meeting be adjourned at 5:19 p.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk
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