Item # 4B.
(September 26, 2011)
CITY OF HALLANDALE BEACH, REGULAR CITY COMMISSION MEETING
Date: September 26, 2011
Director’s Name: Patricia Ladolcetta
Department: Finance/Commercial Division
Subject: Outsourcing of Printing and Mailing Utility Bills
MOTION TO CONSIDER AND APPROVE:
The feasibility of outsourcing the printing and mailing of the City’s utility bills.
Why Action is Necessary
Currently it takes staff 30 hours per month, at an annual labor cost of $11,546, to prepare the utility bills for mailing for the 5 cycles. Another staff member then drives to the postal processing center on Dykes Road in Pembroke Pines to ensure that the bills are submitted before the 6:00pm deadline for each of the 5 cycles. A recent article suggests that there are plans for the United States Postal Service to close two bulk processing centers in South Florida, including the center on Dykes Road which impacts us directly. Should that occur, there could be additional courier costs of upwards of $1,500 unbudgeted and not accounted for in our analysis.
Furthermore, contracting with Severn Trent would alleviate the need to have an alternate plan for creating the utility bills if parts need repair. At present, needed repairs and/or maintenance is not known until the printer is powered on to create utility bills. The creation and issuance of bills is normally delayed several hours when this occurs.
What Action Accomplishes
Using the services of Severn Trent would allow the Utility Billing Specialist time to redirect resources to review/research as well as data entry of fire inspections, special meter projects/requests and other miscellaneous items impacting utility billing during working hours, thereby reducing overtime work. More attention can be given to customer concerns and requests as well.
Is this Action Goal Related
This action is related to the Strategic Priority of Excellence in Government by ensuring that local government is accountable, accessible and transparent in its operations; communicates effectively both internally and externally; values and supports community input and participation; and is effective in its management of fiscal responsibilities and by maximizing the efficiency and productivity of staff time.
Previous Action Taken
Staff recommends the outsourcing of utility bill printing and mailing. This will allow a more efficient use of staff time while still ensuring the proper creation and delivery of bills. An additional $17,720 would be needed to supplement budgeted monies in other accounts.
Fiscal Impact/Cost Summary:
Please refer to Exhibit 1
Exhibit 1 – Comparison of current process and outsourcing costs
Exhibit 2 –_Budget Note_________________________________
Prepared By: _______________________
Mark Antonio, City Manager Date
_____Approved _____Disapproved _____Hold for Discussion