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<br />Finance Officer Lund reviewed the cost comparisons between Connexxus and Opus 21. <br /> <br />Councilmember Jeffrey confirmed that there would be a one-time conversion fee of $28,000. <br /> <br />Mr. Shuba stated that $20,000 of the fee can be incorporated over a 5 year contract and noted <br />that they have agreed that the conversion amount will not exceed $20,000 and he thinks it may <br />even be less. <br /> <br />Councilmember Elvig stated that if the City compares the costs of Opus 21 to Connexxus, he <br />feels the revenue loss from the underbilling done by Connexxus should be included in our costs, <br />which puts Connexxus much higher than that of Opus 21. <br /> <br />Finance Officer Lund stated that she felt the in-house billing information was self explanatory. <br /> <br />Councilmember Dehen asked why in-house billing was so inefficient. <br /> <br />Finance Officer Lund stated that the City contracts with LOGIS for the billing software and the <br />City would need to share the costs for the system which is very expensive. She stated that Opus <br />21 would not have these costs because they have created their own software. <br /> <br />Mayor Gamec asked if residents would have to call an 800 number if they had questions if the <br />City went with Opus 21. <br /> <br />Mr. Shuba stated that there can be a local access number or an 888 number. He stated that <br />Cottage Grove uses a local number, which then rolls over to their offices in Woodbury. <br /> <br />Councilmember Jeffrey asked for a comparison of bad debt collection with Opus compared to <br />the current procedure. <br /> <br />Finance Officer Lund stated that Opus 21's policy is when a person moves out, their past due <br />account is sent to the previous home owner for 60 days and then a letter is sent to the new home <br />owner stating that the outstanding bill is there and if not paid, will revert to the property address. <br />She stated that this allows the outstanding amount to be collected as part of closing costs on the <br />property. <br /> <br />Councilmember Jeffrey asked what would happen in a case where a resident is not moving, but <br />just has not paid their bill. <br /> <br />Finance Officer Lund stated that once an account is 60 days past due, the resident will get a <br />certified statement and if they do not pay, it will be put onto their taxes. <br /> <br />Mayor Gamec asked about late fees and whom the monies went to. <br /> <br />Finance Officer Lund stated that the late fees are 10% of the outstanding bill and those fees corne <br />to the City. <br /> <br />City Council Work Session /December 3, 2007 <br />Page 4 of9 <br />