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HomeMy WebLinkAbout1976-06-29 OrdinanceORDINANCE NO. 76-2802 `O AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE CITY OF IOWA CITY, IOWA, BY REPEALING SECTION V, ORDINANCE NO. 75-2773 AND ENACTING A NEW SECTION IN LIEU THEREOF. BE ENACTED BY THE CITY COUNCIL OF IOWA CITY, IOWA: SECTION I - PURPOSE The purpose of this Ordinance is to amend certain procedures regarding the billing for water services, by establishing a bi- monthly reading/billing program for utilities. SECTION II Section V of Ordinance #75-2773, Classification of Water Service, shall now read as follows: "Water service shall be divided by user type; residential, commercial/retail, industrial, governmental/institutional, other (consumers outside corporate limits). The Director of Public Works shall determine the allocation for each consumer based on such criteria as rate of consumption, water use, size of meter, etc. Meters on residential service shall be read bi-monthly (once every two months). Charges and billings for services shall be billed bi-monthly (once every two months) based upon actual readings. Meter readings for other users shall be determined by the Director Of Finance. All charges are due and payable when rendered and become delinquent 15 (fifteen) days thereafter." SECTION III Repeal of Section V of Ordinance #75-2773, and any and all other Ordinances or parts of Ordinances which are in conflict with this Ordinance are hereby repealed. SECTION IV - SAVINGS CLAUSE In the event any section, provision or part of this Ordinance shall be adjudged by a court of competent jurisdiction to be invalid or unconstitutional, such adjudication shall not affect the validity of this Ordinance as a whole or any section, provision, or part thereof not adjudged invalid or unconstitutional. , 76-2802 ORDINANCE # SECTION V - EFFECTIVE DATE PAGE 2 This Ordinance shall be in effect after its final passage, approval and publication as required by law. Foster and seconded by It was moved by dePro ,se that the Ordinance as read be adopted, and upon roll call there were: 1976. NAYS: ABSENT: Balmer deProsse Foster Neuhauser Perret Selzer Vevera Passed and approved this 29th day of June C- MAYOR �..( /t.-�/ v4-�../ Wit..• -7, CITY CLERK It was moved by Foster and seconded by deProsse that the rule requiring the Ordinance to be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended, the first and second consideration and vote be waived, and that the Ordinance be voted upon for final passage at this time. Roll call: Perret, Selzer, Balmer, deprosse, Foster, Neuhauser, all voted "Aye", Vevera absent. Nays: none. Motion adopted, 6/0. DATE OF PUBLICATION pity o4 Iowa City - MEMORANDUM TO: Neal Berlin, City Manager DATE: June Y5, 1976 FROK pat Strabala, Director of Finance RE: Utility Billing System As noted in the attached memorandum from Nancy Heaton to myself, there are a number of specific changes that we feel are needed in the current utility billing system to correct and improve it. The City Council in its adoption of the procedures for filing tax liens has corrected a major inadequacy in our system by allowing us a hearing procedure and also a lien filing procedure for collection of delinquent accounts. In addition to this ini ahmodificat onange, we loflike toour systemtoa bimohly billingrate te wih e August tnttsystemchange based on actual reads and the initial preparation for modification of the system to accrual accounting, as required by the State' City Finance Committee in its authority under Chapter 384 of s the Iowa Code. The following reasons should be noted for changes made in the system: 1. Increased Accuracy Billing - In the original conception of the present computerized billing system, it was envisioned that we would proceed to an actual read basis as quickly as possible to minimize the complexity of the system and to insure adequate control and customer satisfaction. The present system of increasing confusiestimate reads has caused some on in the community and resulted in increasing complaints concerning inadequate or incorrect estimates. The change to a billing on an actual read will increase the accuracy of all billings to customers, thereby reducing or eliminating the inaccuracy of estimate and confusion caused by their usage. 2- Reduction of Costs - Reduction of costs by going to an actual read vs. an estimated read system.comes areas. As noted in the memo rfrom a number of different andum, we can reduce the cost of postage by reducing the number of bills, delinquent bills, and forms utilized in our current billing process. It Should be noted that in the past several years the cost of postage as well as paper Products has increased Significantly. Secondly, the utilization of computer time would be decreased because 0 • Utility Billing System _2_ June 25, 1976 of the less frequent processing of bills and need to update files and prepare reports. 3. The current billing personnel's time could be reallocated to other more productive uses because of the reduction of the need to correct estimates and respond to citizens' complaints regarding estimates or inaccurate billings. This increase in their time resulting from less errors and increased accuracy as well as the reduction in volume of receipts and bills could be applied effectively to the new, but time consuming, procedures required for collection of delinquent accounts. In addition, the personnel required by the Water Revenue area to read meters will not necessarily be increased because of increased productivity within their area caused by the acceleration of the installation of outside -read meters. 4. Increased Flexibility of the Computer Program - The modification of our current system allows us the opportunity to increase services provided to the citizens. As noted in the comments on the Ordinance concerning liens on property and collection of delinquent bills, we will be able to activate a responsible party mechanism within our current system. This will allow responsible parties, owners of property, to be notified of delinquent accounts as they occur, rather than after a tenant or individual has left their property and we confrontrthe property owner with a delinquent account. 5. Increased Dollar Billings to Customers - Although the actual read system increases the effectiveness and usefulness of the City personnel, it has an adverse effect, to an extent, on customers. In fact, the customer will be receiving a bill which is double the current bill he/she receives each month. This situation, in fact,is the same system,however, that we were utilizing prior to 1973 and it is felt the increased accuracy and less frequency of billing will negate the effect of the larger amount. Since the utility ordinance identifies the frequency with which utility bills are submitted, we have attached an ordinance change which would permit us to modify into a bi-monthly billing cycle, and it is our recommendation that we do that concurrently with the sewer rate change August 1, 1976. If you have any questions regarding this information, please contact me at Ext. 221, or Nancy Heaton at Ext. 225. PJS:bac DATE: June 24, 1976 TO: Pat Strabala, Director of Finance FROM: Nancy Heaton, city Treasurer 9� RE: Sewer Rates Effective August 11, 1976 and Recommended Changes in Billing Program the In compliance with Ordinance #75-2774, "AeaOrdinanceling Are ding Sewer Municipal Code of Iowa City, Iowa, by Treatment Plant, and Establishing a New Chapter in Lieu Thereof.", a change in the computation of sewer rates will be made on all water used after August 1, 1976'100 e new sewer e erwcharge for Iowa Cita minimum residents will be ft. p charge of 200 cu. ft. or 54C. Breakdown of the minimum billing on $'S the new rate is $2.60 water, $.08 tax and Veenstra & Kimml tOf he $3.22. According to the Rate Study (1975) by average monthly usage of 1200 cu. ft. for residents would be $11.69 per month. The present bill for 1200 Cu- ft. is $12.55. The non-resident sewer rate will be 54C per 100 cu. ft. of water billed and will result in slightly higher billings for the 1200 cu. ft. average billing, rising from $12.39 to $12.77. The average residential consumer will be charged less o the eanew rate, but nn-rst and ed large consumers will be paying oUniversity g of Iowa with an average usage of 7,202,610 cu. ft. will pay $8,635.09 more per month. ate The review and rewrite of the computer opportunity rogram stotreview yand e sewer rate change presents an excellent system. Preliminary meetings were held improve the entire billing onnel, and between staff in the Public works with Sta-Fed computer pers and Finance Departments to identify areas of concern which could be dealt with most effectively at the time we make a program change to implement the new sewer rate. Of major concern to the staff now working with the billing and handling of complaints on the present system is the desirability of actual readings. The estimates donot work well forird consumers whose usage varies,creating 4ebillings credit billings. On the three month schedule, an unreadmeter means a six month usage period before an actual reading genrate is obtainedlong if a leak has ocWdAinvolveincorrect csixeading month period.will IowaeCity's an incorrect billing hichcannot population is a mobile one and the quarterly reading program isercentage flexible enough to accomodate the frequent changes. A large p of estimatetelephone systemmandilengthdeal ofwith timecustomer between rreadingsfaction on the 0 0 Water/Sewer Billing & Rates -2- June 24, 1976 Cleo Kron, Regina Schreiber, and June Higdon, who have worked daily with the utility billing system, strongly support the return to billing on actual readings, using the estimate (or the last actual billing) only when a reading cannot be obtained. Due to the increased workload and personnel involved in a monthly reading/billing system, I propose that we move to a bi-monthly reading/billing program on August 1, 1976 and submit the following supportive information: 1. The bi-monthly reading/billing program will reduce costs $850 - $900 per month in identifiable mailings, computer costs and billing forms. A. Postage - $475 1. 509 of billings billed each month will reduce costs $400 (6000 X .07 @ postage) 2. 509 fewer delinquent billings mailed if we bill people every two months rather than every month, as almost one-half of people on the delinquent list are a few days late, but pay their bills before the next month listing would be generated. This would reduce costs $45 (346 notices X .13 @) 3. If readings were bi-monthly and more effort were put into obtaining reads, fewer letters would then be mailed to obtain readings. At a minimum, the savings would be $35 (270 letters X .13 @) B. If 509 of the consumers were billed bi-monthly instead of one-third billed monthly, the Sta-Fed personnel have assured us that we would reduce charges by one-third or a minimum of $400. (Average monthly billing for utility accounts is $1200) C. 509 of the billing forms would be mailed each month and cost of having them printed is around 6C each. 6000 fewer forms mailed would save $36. 2. A second and important plus factor of the bi-monthly program is the personnel time savings. 509 less billings would be handled each month, incoming mail would be reduced 50%, 509 less postage would be required, and fewer correction memos processed. Reduction of customer complaints which deal with the estimates frees personnel time and would improve morale. 0 Sewer/Water Billing 6 Rates -3- June 24, 1976 3. The personnel time saved needs to be directed toward collection of delinquent accounts. This process as outlined by City Ordinances will be time consuming if carried out effectively. 4. Cleo Kron has worked toward improving the quality and quantity of meter readings. A change in meter readers, rechecking meter books and escalation of installation of outside readers ,has markedly improved the accuracy and timeliness of the readings. Present staff can handle the bi-monthly reading/ billing program. Two disadvantages of the bi-monthly system are: 1. Changing programs will decrease billing and cash flow on the first month. Two of the four cycles would be run, but billed only for one month. On the second billing month when the remaining two cycles are billed, they would be billed for the two month period. Receipts should then be basically the same with 508 of the consumers paying for a two month usage rather than 100% of the consumers paying for one month's usage. 2. The bi-monthly billing will be for two months and double or almost double the current bill sent monthly. We feel that the negative effect will be modifed by billings based on actual readings and improved service. Attached is a memo to Ray Wells and George Bonnett from Joe Pugh stating the items to be addressed for data processing, the present method, proposed policy and comments. in the commentary section on meter reading and billing, the former Finance Director recommends consideration of monthly or actual readings. It would indicate that he considered the estimate system as an interim method, with a change to actual readings as the program became more defined. 10/23/73 CITY OF IOWA CITY DEPARTMENT OF FINANCE M E M O R A N D U M TO: Ray S. Wells, City Manager George, Bonnett, Acting Director of Public Works Re: Utility Billing System The purpose of this memorandum is to document for internal discussion several items regarding the impending conversion of the City's water and sewer utility billing to electronic data processing. There are several policy matters that need to be resolved in establishing the systems design and it is hoped that the input from both the Department of Public Works and the Department of Finance together with the City Manager can rapidly resolve certain problems prior to the 25th of October. The computerized utility billing system has been designed as a flexible, self -checking system designed to perform the accounting and reporting func- tions associated with water and sewer rental billing, meter reading, and receivable activities. The system is flexible in that it maintains a set of continuously updated files on a computer. The water billing system is logically proportioned into five modules; systems input, meter reading, receivables cycle, billing cycle, and report generation. It should be emphasized that physically, water and sewer rental billing is a continuous flow system; i.e., the system in run once for each type of input data. In order to properly evaluate and discuss the relationship between the proposed system for utility billing and present practice, the following tables and charts have been provided. Pi'��l.i Pim �SICE The City presently bills each 1. Meter Read- residential account once every jug 6 Billing other month and each commercial account once pet month. There are approximately 10,000 utility cust- omers. Meter readings are by route and match the fre tencytOf billing depending on account is a residential or Comm- ercial account- pgOpOSED &11 meter locations, "•'- commercial or residential, are to monthly basis. be billed on a every customer In each quarter, will receive two estimated bill - with ings and one actual billead UeLterly• most tionsswill beto be rmade for cer- F�ccep those tain large use and/or cubic customers utilizing ore. All of feet per month or a monthly these will be read on basis as in the Past, There are approximately0 2. Nd Minimum meter locations that do not h ave Chargesa minimum charge and if there is no consumption, they are not billed. These meters are primar- ily for air conditioners and ondititiersand out- side lawn watering cct� fs (See schedules attached) This built-in delay factor between meter readings and billings will allow for follow-up on those readings that are not able to be d made to for one reason or another or follow_ vide a period of timefor reflect:: up on those readings a possible malfunction Ofml beeter- ached Ali utility customers files Per ,led in four billing Y month within our route a°d�e8. Although the FinanceDelectronlc prepared towit the meter reading'`, processing as it now exists, reaponsibility it is suggested that consideration' be given to the following: All meter readers wotk for l the Department of Financeram Of 2. An accelerated prog outside readers be established. - 3. The eventual imp enta tion of monthly readings - It is suggested that every that meter that the City owns US - is installed in a property a mil ing City water be charged mum for that size meter. No minimum charge for the pu' poses of air conditioning units,' outside watering, etc-, are Oak apparent conflict with the C3Wc inance which requires that a min'. mum charge be levied against all e in Pl city owned meters ttr Itissugget to measure water• made in the oI that no change be meter local c nane and that those conform Iwith no minimum charge the present ordinance. 3. Customer- ovned Meters 4. No Sewer Charge 5. No Water Charge PiHS^'rT Pr't1 JC: Basically we have approximate. ly 19 meter locations that are customer-ovued and if there is no consumption there is no bill. Eight of these meters are at the Veterans Administration Hospital. As far as we are able to determine at this time, all of the customer - owned meters have a special rate of 46c per thousand cubic feet for the first 3,000 cubic feet of vatei used. There are approximately 137 utility locations that are pres- ently not charged an amount for sewage. There are presently 9 cus locations which are billed for sever at the regular rate and is no charge for water. PWIPOS;'D POLICY Again, it is suggested that all of the customer -owned meters be charged the minimum. The Purpose of the minimum charge is to cover the basic level of oper- ating costs of the syarm to pro- vide water on demand. Because of the problem with the extension of sever facilitie. into some areas, it will be necessary to continue this type of service indefinitely. It is suggested that these locations remain as they now are for an indefinite period as ther are some areas in the community that do not have water service but are connected to the City sewer system. C10NidE.'V4$ - The purpose of the minimum` charge in one sense is to providr a minimum level of revanue.input to support the basic overhead opi ating cost of producing Crater. Allwing utility customers to pw chase their own meters provides problems of its own aside from tt fact that they are not then bill) a minimum charge. Customer -owned meters are not subject to the se, maintenance follow-up as all* owned meters are and there i way under thia arrangement to be' sure that maintenance is provided It is suggested that customer -own meters not be allowed in the futu and that the ones in existence be checked for proper maintenance as replaced if necessary. It is suggested that each o these 137 locations be reviewed again to determine if they defin ly are not on the City sever at time. As suggested in the it o it should be determined if f these accounts are definitely not on City water at, this time. rr_ 6. Flat Rate 7. Termination of Service PPLzi:,r FRrr`itcE There are 8 locations in whic charges for sewer rental is billed at a predetermined rate. There ar no meters at these locations and a flat rate for sewer rental has bees determined. at the time the request for service has been made. At the present time, on a bi- monthly bill, a reminder is sent t each after utility customer thirty days the te of tutility ll Fifteen days afterthatreminder a final notice is sent giving the customer five days in which to complete payment on their account. After the five-day period service to these accounts is terminated. PR; P��_� FOT_SCi It is suggested that 1 1 ocr.z gTs the flat rate accountsa of As far as we are able to in favor of meteribe droppe dere � ng the source IIe, a flat rate amount for Of the water supply sewage is not an:adequate quare sol On monthly billing, a re- minder would be generated by the computer fifteen days after the date the utility bill was calcu- lated. This reminder would est- ablish a date, approximately five days after the date of the render, on which complete pay- ment of the bill would have to be made. If the bill was not paid within that five-day period service would be terminated, to properly control the utioa lic facilities,goouse Of'pUb. the trailer court south ofxample is which has a $100 a Iowa e6 month sewer rey al charge which was established`at the time the trailer court was fi opened. This is now a large faci ty and there is no way to determin if the flat rate charge is a at to cover the cost that oche would be in curred if the sour f the water consumption was metered: This is one area that prese.n some very difficult problems for,.' utility billing and one that needs a good deal of attention. Without exception, it has not been possibl to enforce the termination of ser- vice regulations because the shut- off lista are generally not acted upon with any regularity. As aa',:, example, the July 26 shut-off re -- port transmitted to the Water Plant still has not been As a result, one customer imgjkmest accumulated a $407 utili ty which in subsequent months ielgo' to become more difficult to colle There are many instances of uneve enforcement and unusual practice' this whole area of termination of service which needs to be evaluat and discussed, 0 ORDINANCE NO. 76-2803 AN ORDINANCE TEMPORARILY VACATING CERTAIN STREETS IN THE R14 URBAN RENEWAL PROJECT IN IOWA CITY, IOWA, AND REPEALING ORDINANCE NO. 75-2776, EXCEPT SECTION 1, SUBSECTION 3 THEREOF. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: SECTION I. PURPOSE. That Ordinance No. 75-2776 is hereby repealed, except for section 1, subsection 3, of Ordinance No. 75-2776, which shall remain in full force and effect. SECTION Ii. VACATION. That the following streets in Iowa City, Iowa, here- inafter described, be and the same are heieby temporarily vacated from July 1, 1576, through December 31, 1976. A. College Street west of a line extending from the intersection of the southerly right-of-way line of College Street and the westerly right-of-way line of Dubuque Street to the intersection of the northerly right-of-way line of College Street and the easterly right-of-way line of Dubuque Street, to the easterly right-of-way line of Clinton Street. B. Dubuque Street from the southerly right-of-way line of Washington Street to the northerly right -o£ -way line of College Street. SECTION I.II. SEVERABILITY CLAUSE. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION IV. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and publication as required by law. It was moved by __roster and seconded by deProsse that the Ordinance be finally adopted, and upon roll call there were: .LYES- NAYS: ABSENT: X Balmer X deProsse X Foster X Neuhauser X Perrot X Selzer X Vevera ATTEST: Vl_, ��•-./ ,rL �: V� /� -, _ U Mayor City Clerk Passed and approved this 29th day of June , 1976 i`i,5t-eonsiaer-atioa - - i as—moved y- Foster and seconded by deProsse Vote -for -passage: that -the rule requiring the Ordinance to be considered and voted on for passage at two Second Consideration- Council meetings prior to the meeting -at which Vote -for. -passage: itis to be finally passed be suspended; the first and second consideration and vote be waived and that the Date of Publication Ordinance be voted upon for final passage at this time. Roll call: Ayes: Balmer; deProsse, Foster, _Neuhauser,-Parrett Selzer. .Nays: none. v-_asra absent. Motion a&pted,` 6/0.