Exh 8EAGENDA ITEM #8E
DECEMBER 9, 2002
City of Atlantic Beach
City Commission Meeting
Staff Report
AGENDA ITEM: 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 AMEND 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: November 27, 2002
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 Jax Neptune
Cost Cha a Cha a Beach Beach
Turn-On $21.50 $1.5.00 $20.00 $10.00 $25.00
Regular Hours
Turn-on $56.50 $40.00 $0.00 $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 Fee $31.50 $15.00 $20.00 $10.00 25.00
AGENDA ITEM #8E
DECEMBER 9, 2002
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.
Service Number of Old Rate Proposed Difference Additional
Times Rate in Rates Revenue
Performed-
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
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 Numbei 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.
ATTACHMENTS: Ordinance Number 80-02-66
REVIEWED BY CITY MANAGER:
AGENDA ITEM #8E
DECEMBER 9, 2002
ORDINANCE N0.80-02-6G
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 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 City has evaluated the cost of performing the tasks related to the
turn-on of new services, reconnecting services, re-reading meters and transfers of
services, and
WHEREAS, the City has found the cost ofproviding 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
for new services, transfers of services or reconnects after customer requested cut-offs in
an effort to provide competitively priced customer service, and
WHEREAS, the City would like to recover full cost from those customers that
had service cut-off due to non-payment
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION
ON BEHALF OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, that;
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 cutoff or
transfer.
a•~A turn-on fee of frfEeen twen dollars ($~-20.00) will be charged
to t-urn-aa establish service for all new customers.
b•~If water service is turned off,
upon the request of the customer, a e-tt~ ert re-connect fee of ~#een
twenty dollars ($-~-20.00) shall be charged and paid prior to
restoring water service.
AGENDA ITEM #8E
DECEMBER 9, 2002
c.) If water service is turned off because_ of delinquency of navment. a
re-connect fee of thirty dollars ($30.00) shall be charged and paid
prior to restoring water service.
d•) If water service is transferred to another residence, a been twenty
dollar ($~ 20.00) transfer fee shall be charged.
e_.) An additional charge of thirty dollars ($30.00) will be added to the
Turn-on charee for service requested before 8:OOa.m. and after
4:30p.m. on business days.
Section 2. Sec. 22-22. City Code of Ordinances be amended as follows:
Sec. 22-22. Fee established for re-read of meters
Upon~request of a consumer, the.meter will be re-read by the city. A fee of
twenty-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 may perform 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 day of December,
2002.
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
ATTEST:
Maureen King, CMC
City Clerk