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CASE # / REVIEWiAGREEMENT WITH ANOKA ELECTRIC COOPERATIVE TO PROVIDE QUARTERLY UTILITY BILLING SERVICES By: Jessie L. Hart, Finance Officer Background: Anoka Electric O, ooperative (AEC) contacted the City of Ramsey a number of months ago with an offer to provideiutility billing services. This venture transpired from the fact that AEC was developing a new billing system and that it already provided an avenue for billing purposes to all but a few properties located in the City of Ramsey. AEC has utihzed the City's billing records for the past two quarters and has "shadow" billed to determine thc compatibility of their new system with our practices. These shadow billings have been highly successful. They are able to provide all of the same service information that the City has provided on ~ts utility bills as well as thc possibiLities of adding additional information and service types. Tli, eir system would also allow for the addition of a residential recycling charge line item which our cim'ent system, without major upgrades, cannot provide. AEC would provide the following services, for a charge of $1.02 per billing, sent out on a quarterly basis for those accounts in existence as of March 31, 1994 (see attached letter Option #1): 1) 2) 3) 4) 5) 6) 7) Physical reading of alt water meters on a quarterly basis. CAlculation and preparation of billings for services on a quarterly basis. Changes to accounts for new service connections and changes in ownership. l~eparation of ail aging and service reports necessary for our record keeping reguirements. Albply late penalties at a rate of 10% of the current balance. Ail cash collections with transfers to the City on a no less than monthly basis via Mr.e transfer or another method agreed upon.' Agswering all billing questions with technical or mechanical questions being fot'warded to the appropriate party at the City of Ramsey. There would be a one time charge of $1.25 per account to set up new accounts. When transfers are made due to [changes in ownership, them would be a one time charge of $2.75 to have the meter read and tq perform the maintenance on the account. These costs cover only those accounts located within th~ AEC service area. Customers that would potentially come on line that are not AEC service customers would be charged under a different rate structure as outlined in the options. There other optiogs outlined in the attached proposal which at some point in time would affect the City, such as the addition of recycling or street lighting to non-utility customers. The utility service billing would appear on the electric customers billing statement on a quarterly basis. This servige agreement, if approved, is estimated to begin with the quarter ending March 31, 1994 and be ~ effect for a period of three years. The City employees would continue to do all meter installations and answer calls regarding technical billing questions or mechanical follow-ups. The City would no longer accept payments locally for utility l,Serdces and would forward all billing questions to AEC regarding readings and payments. The City would still maintain at least one meter gun for checking meters when installations are made and when a customer requests that a meter be checked for mechanical purposes.