05-07-2012 Council Agenda - Laserfiche WebLink

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PROPOSAL Utility Billing Services: Our arrangement would retain the same duties as listed in present relationship for utility billing as detailed above and /or contained in our current agreement. The only change we would make is all customer service calls would be made to Jessica Jagoe given our current employee situation (i.e. the loss of Shelly Rueckert as our Finance Director). Little Canada's costs to provide Utility Billing Services equal $6,649.40 per year or $1,662.35 per quarter. The quarterly amount equates to a billing charge per customer of $4.33 per quarter. Little Canada believes a 20% markup is reasonable to cover unknown costs. That yields a quarterly charge per account of $5.20 versus the current rate of $3.65. It should also be noted that the current rate of $3.65 was established in 2010 and has not received any inflationary adjustments. Proposal for Utility Billing: $5.20 per account per quarter effective with theist Quarter's billing. This constitutes an amendment to our current agreement. Unrecovered Costs: Little Canada would also like to recover the unrecovered costs we have incurred to date and as noted earlier in the amount of $5,433.01. We see two options to do so. 1. Make quarterly cash payments of 25% of the amount. To incept this option, Little Canada will discount the amount due to $4,800 so the payment would be $1,200 per quarter. 2. Increase the quarterly billing charge to $6.25 per quarter until the full amount is recovered. This would generate $403.20 additional revenue per quarter and $1,612.80 per year. It would take just under three and 'A years to recover the amount desired. If this option were selected, we would only increase the base rate of $5.20 per quarter by inflation and then add the fixed amount of $1.05 per account per quarter to the new, annual amount. If Birchwood Village decides to terminate our billing relationship, then any amount still outstanding based on the initial unrecovered amount of $5,433.01 Less the amount recovered from the additional quarterly charge would be immediately due and payable. We also want to make it clear that it is our fault we did not recover our costs to an adequate level and Birchwood Village has done nothing to contribute to this situation. However, we need to be accountable to our citizens and ensure we are not providing services to others that don't fully reimburse our costs. To that end, we hope we have demonstrated a good working relationship with you and that you would be willing to work with us to continue it into the future. 6