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<br />Mayor Gamec inquired about the possibility of beginning with self reading to keep operation <br />costs down. <br /> <br />Finance Officer Lund indicated there are options to consider. She noted another benefit of <br />bringing the billing in-house is that Connexus does not give the City the opportunity to include <br />anything with the bills. She pointed out if the City were to have the ability to include <br />information about things such as winterizing sprinkling systems residents would not be able to <br />say they were not aware of these type of maintenance needs, which was the situation with the <br />resident that recently had a $5,000 water bill. <br /> <br />Public Works Director Olson pointed out moving to self reading would be a decline in service <br />from the current service with an increase in cost. <br /> <br />Councilmember Look stated there should be software available to allow the City to access <br />customer records at Connexus at a much more reasonable cost than the cost to bring on <br />additional staff and the start up costs associated with bringing the billing in-house. The other <br />component is the cost involved in collecting from people that do not pay their bills. <br /> <br />Finance Officer Lund indicated the City receives a yearly list from Connexus that shows who has <br />not paid their utility bills. Letters are sent to the individuals and they have until the first week in <br />November to pay until the cost is certified on their taxes. She stated a lot of the delinquent bills <br />are from people that have moved out and have not left a forwarding address. When people move <br />in they are not aware of the delinquent billing, and the City is able to certify the taxes to the pin <br />number of the house. By bringing the billing in-house they could likely keep better track of <br />when that final account is and inform the new homeowner of the delinquent billing that goes <br />with the property. <br /> <br />Councilmember Elvig noted collection is the City's obligation regardless of whether or not the <br />billing is done in-house. He stated he has always been a firm believer that when you grow an <br />organization you need to have quick shrink capabilities. Once you hire an individual you do not <br />have the ability to eliminate that position. However, he believes this situation is different in that <br />there is an ongoing revenue source that is in place. The City will not be taxing the residents or <br />developing a new source of revenue to pay for a new individual coming into the City; they are <br />just reallocating where those funds are diverted to. He noted the current cost paid out to <br />Connexus is $56,000 per year and asked what the cost would be to hire staff in-house. <br /> <br />Finance Officer Lund replied the cost for in-house staff would be approximately $67,000 <br />annually. <br /> <br />Councilmember Jeffrey pointed out there would also be the $40,000 cost as a retainer to LOGIS. <br /> <br />Councilmember Strommen noted there are still costs involved with the billing being through <br />Connexus, such as staff time dealing with utility billing and issues. It should be determined <br />whether or not those costs are negligible. <br /> <br />City Council Work Session I March 27, 2007 <br />Page 4 ors <br />