Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Sewer Agency Charge Billing and Collection Agreement with East Bay Municipal Utility District to Conduct Sewer Utility Commercial Account Billing Services for 10 Years, Effective July 1, 2023, Providing for Continuation of Billing Services for the City's Commercial Sewer Accounts for Approximately $40,000 Each Year Budgeted in Account 593-51-002-5830
Staff Report
COUNCIL PRIORITY
* Fiscal Sustainability
SUMMARY
The East Bay Municipal Utility District (EBMUD) has been providing service to the City of collecting business sewer charges on their water bills. The agreement was initiated in 2003 and last renewed in 2013. If approved, this new agreement would be largely in the same form for another 10 years.
RECOMMENDATIONS
Staff recommends the City Council adopt a resolution to approve and authorize the City Manager to execute a 10-year agreement with East Bay Municipal Utility District (EBMUD) for continuation of commercial sewer billing services.
BACKGROUND
The City of San Leandro Water Pollution Control Plant provides sewer collection and processing services to about 1,300 businesses. EBMUD bills these users on their water bill and passes the collected revenue onto the City. This generates approximately $2.4 million in revenue annually. EBMUD charges a fee for this service based on their cost of billing, which currently is about $40,000 annually, or about 1.7% of total revenue received.
Analysis
The proposed scope of services is a cost-effective way of billing commercial customers. EBMUD handles all the billing activities including sending invoices and collecting and processing payments. Alternatively, the City could bill customers directly, but this would result in a net increase in costs as staffing costs would be greater than EBMUD's fee.
Previous Actions
* On November 18, 2002, by Resolution No. 2002-159, the City Council approved a Sewer Service Charge Billing and Collec...
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