Memorandum
City of Lawrence
Finance Department
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TO: |
Dave Corliss, City Manager
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FROM: |
Ed Mullins, Finance Director
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Date: |
October 16, 2013
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RE: |
Utility Service Charges |
Background
The City of Lawrence last increased its trip related charge for utility customer service orders by approving Ordinance 6629 on March 17, 1998. That ordinance established increases in the trip charge by $5 increments beginning with $5 and increasing to $25. Ordinance 5414, approved December 7, 1982, established the $10 fee to test a water meter. The test fee is only charged if the water meter is deemed to be accurate. Finally, Ordinance 5921, adopted July 5, 1988, provided for a $30 after-hours non-emergency service charge that included a $15 reconnection fee.
The existing fees were reviewed in accordance with the City’s fee review procedures, specifically looking at cost to provide the service, the purpose, cost recovery, and comparing rates to other communities. Based on this review, the Finance Department recommends changes to the fee.
Proposed Changes
The Finance Department proposes that all trip related service charges be set at $25 for two reasons. The Innoprise Customer Information System is not presently capable of increasing the trip related charge in $5 increments. It is anticipated that the Finance Department will begin using the Innoprise software in October. Secondly, the cost of responding to a customer has increased significantly since 1998. The cost of fuel, maintenance of the vehicle, cost of the vehicle, and salaries of the employees are significantly higher now.
The department views a trip to a customer’s location to conduct a test of the water meter’s accuracy as another type of trip related charge. It is proposed that the customer be charged $25, instead of the current $10, if the water meter proves to be accurate.
Finally, the department does not propose an increase in the $30 after hour’s non-emergency service charge. It is recommended that this charge not include the reconnection fee. Instead, the proposed $25 trip related charge would be added to the after-hours non-emergency charge making the total after hours charge $55.
The fees and charges assessed by area service providers are shown in the table below:
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Returned Check Fee |
Late Payment Charge |
Application Fee |
Trip Charge |
After Hours Charge |
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Water One |
$25 |
5% |
$0 |
$20 |
$80 |
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Olathe |
$25 |
5% |
$3 |
$40 |
$60 |
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Lawrence |
$25 |
2% |
$0 |
$5-25 |
$30 |
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BPU |
$30 |
5% |
$75 |
$10 |
N/A |
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Westar |
$30 |
2% |
$0 |
$15-20 |
N/A |
|
Black Hills |
$30 |
2% |
$0 |
$15-35 |
$25 |
Action Requested
The City Commission is requested to adopt on first reading, Ordinance No. 8931, establishing a $25 service related trip charge for all non-emergency trips to a customer’s location.