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MEMO TO: Mayor and City Council <br />FROM: Don Brager, Finance Director -Treasurer <br />DATE: August 16, 1989 <br />SUBJECT: UTILITY BILLS <br />I have been informed that Councilmember Quick has received some <br />comp ro riate to review the billing format and the <br />complaints that our utility bills are difficult to understand. <br />feel it may be app P <br />reasons it was chosen. <br />Prior to billing a postca d is sent to utility customers <br />requesting that they read their meter and send the reading to <br />s, Near the portion of the <br />re The instructions state that an estimated bill will be sent <br />if the card is not returned listen berecordedis printed the <br />The <br />card where the meter reading a the customer to read <br />message, "Return Card by July 6 to Avoid e the Est. Charge'• <br />estimation charge is intended to es. ncourag <br />the meter lananreturn <br />the <br />hencard <br />esoimate isltaken.ot of adThe ladditional <br />handling the estimated billing, the computer does <br />is not making explaining <br />handling past usage. The additional handling is high, <br />why 9 <br />that based on <br />to the customer. who believes the <br />Theestimate <br />difficultosituation is <br />and how the estimate was made. <br />h• <br />explaining a billing in a quarter subsequent to that in stic a <br />estimate was made. Usually what happends is this: An estimated <br />billing is sent for a quarter in which the customer has used more <br />water than their average usage• The estimated billing is for <br />the customer has thus been under billed. The <br />average usage and <br />is the <br />next quarter the customer reads the plusthedifferenceThe gbetween <br />sum of the current quarter's usagep <br />the previous quarter's actual usage and estimated usage. At <br />times that can be an unusually large bill for the customer. <br />Staff greatly prefers customers to read their meter so their <br />billings reflect their actual usage. cpostcard <br />A postcard billing is sent to all utilitysassoceated with <br />billing was choslan ecuse of cost cbngathe bill tin an envelope. The cost savings <br />postcards over p <br />are a result of the following: to place bills in an <br />1. Staff time is saved by not having <br />envelope. <br />2. Postcards are less expensive than a bill and an envelope. <br />3age machine because envelopes <br />, Less wear and tear on post <br />must be sealed. piece than <br />4. Postage for a postcard is $.08 less for each p <br />sending envelopes. We send 2,970 bills each tuartear. is <br />savings of $237.60 each quarter and $950.40 each y <br />realized. <br />