Exh 7B1
AGENDA ITEM #7B
JANUARY 27, 2003
City of Atlantic Beach
City Commission Meeting
Staff Report
AGENDA ITEM: SECOND READING OF: ORDINANCE N0.80-02-66
AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE
II, WATERWORKS SYSTEM, SECTION 22-20, FEES TO ESTABLISH
SERVICE OR RE-ESTABLISH SERVICE AFTER CUT-OFF OR
TRANSFER, TO INCREASE THE TURN-ON FEE, TO PROVIDE FOR
A RE-CONNECT FEE, TO PROVIDE FOR A RE-CONNECT FEE FOR
DELINQUENT ACCOUNTS, TO INCREASE THE TRANSFER FEE,
TO PROVIDE FOR AN AFTER-HOURS FEE, TO DELETE THE
REQUIl2EMENT THAT RE-CONNECT ,FEES SHALL BE PAID
PRIOR TO RE-ESTABLISHING SERVICE, TO AIMEND SECTION 22-
22. FEE ESTABLISHED FOR RE-READ OF METERS TO INCREASE
THE RE-READ FEE, AND TO PROVIDE AN EFFECTIVE DATE
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: January 21, 2003
t
BACKGROUND: The charges addressed in this ordinance all relate to recovering the costs
associated with a service involving a City worker making a special trip to the
customer's location. How much those trips cost depend primarily on whether the .
employee is on overtime, after hours, what is to be performed on the site and how
long he will be there, and if the trip out there can be done in conjunction with
other services in the area. Every trip to the customer location will cost the City a
different amount. Below are two schedules. The first shows an estimate for the
upper end of the range of costs for each service together with the current and
proposed charges. The last two columns show Jax Beach and Neptune Beach for
comparison. The table indicates that the upper cost estimate is slightly higher
than the proposed charges. The actual cost in many cases is less than this and
therefore on average the proposed rates should recover the full cost of providing
the services.
Service Upper Current Proposed Jas Neptune
Cost Cha a Chac-ae Beach Beach
Turn-On $21.50 $15.00 $20.00 $10.00 .$25.00
Regular Hours
Turn-on $56.50 $40.00 $50.00 $25.00 $50.00
After Hours
Reconnect Charge- $31.60 $15.00 $30.00 $20.00 25.00
Delinquent (requires
two trips to
location
Re-read - $21.50 $5.00 $20.00 $10.00 $0.00
Customer
Re uested
Transfer Fce $31.50 $15.00 $20.00 $10.00 25.00
AGENDA ITEM #7B
JANUARY 27, 2003
' The next table shows the.number of times each of the respective services was
performed last year and the estimated increase in revenues based on those
frequencies. I would expect that the revenues for re-connects on delinquent
' accounts would go down over time because the increased charge should result in
fewer customers allowing the account to go unpaid until cut-off.
7
1
Service Number of Old Rate Proposed Difference Additional
Times Rate in Rates Revenue
Pcrformed
Last Year
Turn-On 2,420 $15.00 $20.00 $5.00 $12,100.00
Regular Hours
Turn-on 280 $40.00 $50.00 $10.00 $2,800.00
After Hours
Reconnect Charge 4,149 $15.00 $30.00 $15.00 $62,235.00
Delinquent (requires
two trips to location)
Re-read -Customer 60 $5.00 $20.00 $15.00 $900.00
Re uested
Transfer Fee 193 $15.00 $20.00 $5.00 $965.00
' The preceding information was presented in an earlier staff report.
Since that report and the first reading of this ordinance, one additional
. change has been made. The requirement of a customer to pay the re-
' connect fee prior to re-establishing service has been deleted. This will all
the City to re-establish service at a specific location and charge the re-
connect fee to the customer account instead of insisting that it be paid
' immediately. This will give the customer additional time to acquire the
funds needed to get their account up to date.
n
BUDGET: The sum of the additional revenues on the above schedule is $79,000. This
revenue would enhance already budgeted services and I would not recommend -_~
increasing the budget until the following budget cycle.
RECOMMENDATION: Approve Ordinance Number 80-02-66 amending Chapter 22 of the
City Code of Ordinances to increase or establish utility service fees for turn-ons,
after hours, transfers, meter re-reads and reconnections on delinquent accounts.
Also to delete the requirement to pay re-connect charges prior to re-establishing
service.
ATTACHMENTS: Ordinance Number 80-02-66
REVIEWED BY CITY MANA
AGENDA ITEM #7B
JANUARY 27, 2003
' ORDINANCE N0.80-02-66
AN ORDINANCE AMENDING CHAPTER 22 UTILITIES,
ARTICLE II, WATERWORKS SYSTEM, SECTION 22-20,
FEES TO ESTABLISH SERVICE OR RE-ESTABLISH
SERVICE AFTER CUT-OFF OR TRANSFER, TO INCREASE
THE TURN-ON FEE, TO PROVIDE FOR A RE-CONNECT FEE,
' TO PROVIDE FOR A RE-CONNECT FEE FOR DELINQUENT
ACCOUNTS, TO INCREASE THE TRANSFER .FEE, TO
' PROVIDE FOR AN AFTER-HOURS FEE, TO DELETE THE
REQUIREMENT THAT RE-CONNCT FEES SHALL BE PAID
PRIOR TO RE-ESTABLISHING SERVICE, TO AMEND
' SECTION 22-22. FEE ESTABLISHED FOR RE-READ OF
METERS TO INCREASE THE RE-READ FEE, AND TO
PROVIDE AN EFFECTIVE DATE
'
. WHEREAS, the Cit has evaluated the cost of. erformin the tasks relat
Y p g ed to the
turn-on of new services, reconnecting services, re-reading meters and transfers of
' services, and
WHEREAS, the City has found the cost of providing those services exceeds the
current charges for those services, and
WHEREAS, it is the City's intent to recover all of the costs associated with
' providing services were appropriate and feasible, and
WHEREAS, the City recognizes that it may not be appropriate to charge full cost
1 for new services, transfers of services or reconnects after customer requested cut-offs in
an effort to provide competitively priced customer service, and
i WHEREAS, the City would like to recover full cost from those customers that
had service cut-off due to non-payment
i WHEREAS, the City would like to alleviate the burden on the customer of
having to make payment of additional charges prior to re-connection by allowing for the
charges to be added to the customer's next bill.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION
ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH
,
FLORIDA, that;
i Section 1. Section 22-20 of the City Code of Ordinances be amended as follows:
Sec. 22-20. Fees to establish service or re-establish service after cutoffor
transfer.
a.) A turn-on fee of ~eea twenty dollars ($-1-5-20.00) will be charged
' to t~i-en establish service for all new customers.
1
AGENDA ITEM #7B
JANUARY 27, 2003
b.~If water service is turned off,°~*"° '~~^^~~~° ^ra°'~^ A°~=fir
upon the request of the customer, a E~tt-en re-connect fee of been
twenty dollars ($~-20.00) shall be charged. and~al~ie~-ta
1 c.) If water service is turned offbecause of delinquency of payment, a
re-connect fee of thirty dollars ($30.00) shall be charged.
d.) If water service is transferred to another residence, a €~een twenty
dollar ($~ 20.00) transfer fee shall be chazged.
e.) An additional char~,e of thirty dollars ($30.00) will be added to the
' Turn-on charge for service requested before 3:OOa.m. and after
on business da
4:30
m
s
p.
.
.
y
' Section 2. Sec. 22-22. City Code of Ordinances be amended as follows:
Sec. 22-22. Fee established for re-read of meters
i Upon request of a consumer, the meter will be re-read by the city. A fee of
twen -fie dollars ($20.00) will be charged for all customer-requested re-reads
when it is determined that the initial read was not in error. At the discretion of the
city manager, or his designee, the city mayperform a re-read at no cost to the
consumer. .
Section 3. This ordinance shall take effect immediately upon its adoption.
' Passed by the City Commission on first reading this 13 day of January 2003.
Passed by the City Commission on second and final reading this day of
' January 2003.
John S. Meserve
Mayor /Presiding Officer
Approved as to form and correctness:
Alan C. Jensen, Esquire
City Attorney
Maureen King, CMC
City Clerk