CITY COMMISSION AGENDA ITEM

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Department:

Finance

Commission Meeting Date:  December 19, 2017

Staff Contact:

Bryan Kidney, Director

Recommendations/Options/Action Requested:

 

Finance Department staff recommends to cease accepting Utility Bill payments made through the grocery store drop boxes effective February 16, 2018.

 

Executive Summary:

The City of Lawrence currently collects Utility Bill payments from the following grocery store drop boxes in Lawrence:

  • Dillon’s at 6th & Lawrence Ave.
  • Dillon’s at 6th & Wakarusa Dr.
  • Hy-Vee at 23rd & Kasold Dr.
  • Dillon’s at 23rd & Naismith Dr.
  • Checkers at 23rd & Louisiana St.

 

Approximately 150 payments per week are received through those drop boxes, which represents approximately 600 Utility Bill customers (less than 2% of the 32,000 customers), who utilize this service. Payments received through the boxes are made with checks and money orders.

 

Three out of five of the grocery store drop boxes are not locked or secured in any way, which means anyone could tamper with them. There is no proof or documentation associated with placing a payment in a drop box, whereas most other payment methods come with a receipt. For example, if a customer pays at the utility billing counter or pays online they are provided with a receipt.

 

Drop boxes inside the grocery stores are being collected only twice weekly, which means customers need to allow 5 – 6 business days for processing their payments. Multiple times in the last 12 months customers made a payment at the drop box then had their service disconnected the next day due to the fact that the drop box payment wasn’t processed immediately. Service is not able to be restored until the payment is collected from the drop box and verified. This can add another day to the process of restoring service.

 

Instead of purchasing new lockable boxes and adding additional cost and time for picking up payments more frequently, the Finance Department recommends to cease accepting Utility Bill payments made at the grocery store drop boxes effective February 16, 2018. This will allow us to avoid the security risks and challenges of processing payments. Customers will be directed to other payment options:

·         Drop box outside City Hall (which is secured, locked, and collected each business day)

·         Online free of charge

·         Mail (envelopes will be left at the current boxes through February)

·         In person at the Utility Billing counter

·         City Code does not dictate what payment options should be made available for Utility Bills

 

Customers would be notified about this change as follows:

  • Press release the week of January 22, 2018
  • City’s Social Media
  • Billing message December 29, 2017 – January 22, 2017
  • City of Lawrence website
  • Request an article in the Lawrence Journal World
  • Starting January 16, 2018, post updated signs on all grocery store drop boxes informing them of February 16, 2018 date, other payment options, and location of City Hall drop box
  • Notify the managers at all the grocery stores with drop boxes

Strategic Plan Critical Success Factor

Effective Governance/Professional Administration

Sound Fiscal Stewardship

Fiscal Impact (Amount/Source):

The fiscal impact to the City is $2,500 net decrease.  

Attachments:

None

 

 

 

 

Reviewed By:

(for CMO use only)

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