HomeMy WebLinkAbout(2)WATER BILLS - MAILING COSTSMEMORANDUM
CITY OF PORT ARTHUR
Utility Operations Department
TO:
Steve Fitzgibbons, City Manager
FROM:
DATE:
RE:
Daniel Shepherd, Director of Utility Operations//~
April 2, 2003
· Estimated of Additional Costs Involved if Present Water Bill Mailing is Modified
COMMENTS
The following are estimated additional costs to modify our existing water bill mailing procedures:
1. Insert the present water bill (postcard) into a custom window envelope.
The cost to do this "in house" with no additional equipment is estimated to run around $60,000
annually. To automate this process will require minimum first year costs for equipment and
maintenance ($16,000) resulting in a total annual cost approaching $70,000. Subsequent-
year costs should drop to around $54,000.
Insert the present water bill (postcard) and a return envelope into a custom window
envelope. The cost to do this "in house" with no additional equipment is estimated to run
around $76,000 annually. To automate this process will require minimum first year costs for
equipment and maintenance resulting in a total annual cost approaching $83,000.
Subsequent-year costs should drop to around $63,000.
The equipment and maintenance costs cited above are from DMS (Dynamic Mail Systems) based
in Houston-maintenance and service would also originate from there. The added cost for their
equipment for Proposal #2 is for a machine with a three-tire feed tower. Please note that the
greatest potion of each annual estimate is for increased postage (approximately $42,000/year).
Please let me know if you have any questions.
/aw
"Remember, we are here to serve the citizens of Port Arthur."