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HomeMy WebLinkAbout2000-07-05 Agenda Packet - Board (9) III STAFF REPORT TO Board ofDirectorsw - �� FROM Mary Chapman, Administrative Services manager �r `_�� S(/BJECT CAnsi� at�an of outsourcing bdl pant and mail processes to:NISC June�30 2000�'� s When Peter, Steve and 1 visited CADP's (now NiSC or National Information Solutions Cooperative) business office in January, 1999, we toured their mail room services center.In their center, they have several pieces of high production equipment to print and mail member bills. They currently send out over 2 million bills per month. The District staff has always done our own bill print and mail processes using various methods and equipment to help simplify the task. We are now sending out approximately 11,000 bills each month. We have only one stuffing machine and one bill printer. The stuffing equipment is very intricate and breaks down several times a year. We wait for someone to come from Sacramento to service it. When the printer goes down, we wait for someone to come from Reno to service it. Obviously these machines only have problems on the days that we are printing and stuffing bills. Our equipment is not very sophisticated. For example, we have to send return envelopes to equal payment plan customers or to customers with credit balances. Additionally, when we send out any kind of bill stuffer, it has to be sent to everyone. 1 have attached NISC's Mail Room Services rate schedule. The handout also describes the advantages of using their services. In particular, the benefits that 1 believe the District will receive are: 1. The ease of changing the bill format in the future. 2. The ability to use duplex printing on selected customers or go to a second page of detail when necessary. 3. The ability to add up to 3 bill stuffers and to put them in the envelopes selectively. 4. No more inserting of return envelopes in with equal payment plan or credit balance bills. 5. We would save on form printing charges by using a blank piece of paper. NISC's system starts with a blank piece of paper. 6. We would have more flexibility in sending messages to customers, which would print on the bill. 7. Processing of multiple bills going to the same customer in a billing cycle would be greatly simplified. This is currently a manual process for us and takes about 10 hours per month. 8. The NISC system offers redundancy we don't currently have. They have multiple machines to do the job and a staff dedicated to maintaining the equipment and the bill print and mail processes. 9. The staff time saved could be put to much better use. RECOMMENDATION: Authorize staff to proceed with using NISC's mail room service center to print, stuff and mail bills to District customers beginning with the conversion to the new billing system in November. COST COMPARISON TO PRINT BILLS AT NISC VS TDPUD: NISC Print Bills .05 Insert & Mail .04 Paper Cost .0181 Carrier Envelope .0158 Return Envelope .0149 Total Cost per Bill 1388 X 11,000 Customers = $1,5271mo X 12 = $18,3241yr TDPUD Print & Stuff Bills: Printer cost (depreciation) 1,2281yr Printer maintenance agreement 8781yr Stuffing equipment (depreciation) 1,9001yr Stuffing equipment maintenance agreement 2,3761yr Printer supplies (toner) 1,3501yr Print labor ($17.74 x 12 hours x 1.5609 x 48 weeks) 15,9501yr Postal software 1,1001yr Billing forms ($.0205 x 11,000 x 12 month) 2,8001yr Carrier envelope ($.0237 x 11,000 x 12 months) 3,1501yr Return envelope ($.0237 x 11,000 x 12 months) 3,1501yr Misc labor, paper& supply costs 5001yr Total annual billing costs $34,3821yr Difference in costs between NISC & TDPUD $16,0581yr *The above costs do not include postage. I do not expect that this will change. If there is a difference, NISC will be able to save additional money due to their totally automated system. Mail .Room Services January 1, 2000 The following rates approved by the CADP Board of Directors are in effect for the entire year of 2000, unless there are significant paper price increases or decreases. IBl i G 'T 1VIE =S GL-UDl G EL 1VGt MEN-- S Gtl= O & F C Members using an 8 1/2" x 7" form Members using an 8 '/2" x I I" form Print Bills .035 Print Bills .05 Insert and Mail' .04 Insert and Mail' .04 Paper Cost .0132 Paper Cost .0181 Carrier Envelope .0155 Carrier Envelope .0158 Return Envelope .0141 Return Envelope .0149 Total Cost per Bill .1178 Total Cost per Bill A 388 ' CADP will insert the bill and return envelope into a carrier envelope and mail from St. Peters, MO zip code 63376. Only the 63376 will show on the carrier envelope. Programming time is billable at$75.00 per hour. A new standard bill takes between 60-80 hours, and a standard delinquent takes between 16-20 hours. Each additional insert is .015 per insert. Printing duplex forms is an additional .02 per bill form for 8 'W x 7" and .025 for 8 'W x 11". A one-time set up fee for each simplex form of$750, duplex$950. A minimum charge of$35 applies to all production jobs for any standalone print job such as Final Bill Immediates, Delinquent Notices, Special Bill runs, etc. For Members using Automated Mail Services to produce their laser printed bill statements we can now provide a CID of the complete bill print that is mailed to consumers. The C/D is created at the same time as the bills are printed and mailed back with special handled bills. Cycle bills are accumulated on each CID for a rolling month. The C/D can be loaded to a share directory and viewed by anyone on the network. The charge is $20.00 per month and $30.00 per cycle. Note: Inserts must be delivered to CADP one week prior to scheduled production. Inserts need to be folded and banded in groups of 200-300 and packaged to minimize damage during shipping. The maximum size of an insert cannot exceed-the size of the primary insert item (i.e., folded laser printed bill) The ideal weight paper for folded inserts is 20# bond 65# cover or equivalent, and 80# card stock for unfolded pieces. The ideal size of inserts is 3 Y:" x 7"for either size bill, minimum size 31/2" x 6'/2". If you would like, CADP can coordinate the ordering, printing and delivery of inserts through a local vendor. Please contact CADP before ordering any new inserts. GRED7= .NEC~ Laser printed self-sealed capital credit checks are .15 cents per check plus postage and $750 set up fee. Laser printed capital credit checks that are inserted into a carrier envelope are .18 plus .015 for each additional insert. If you have questions, please contact Rick Willmann, Bill Stone, or John Baucom. ffG 1. Ability to print Bills, Delinquents, Allocation Notices, Annual Meeting Notices, Capital Credit Checks and move into new forms as needed in the future. 2. COST SAVINGS —The average cost for an 8 Y2"X 7" bill using a carrier and return envelope is 11.78 cents. The same for an 8 '/2" X 11" bill is 13.88 cents. 3. CADP can duplex print or selectively duplex print the bills. F 4. Turn around time is very good. The bills are usually in the mail within 24 hours of the billing run. 5. COST SAVINGS ON INSERTS — CADP has the ability to print inserts and get volume discounts. This minimizes shipping costs. 6. CADP can handle up to three additional inserts each with different criteria for insertion. CADP can change the insertion criteria each month as needed. 7. Bills can be printed in black and either red, green or blue ink. 8. COST SAVINGS ON PAPER PRODUCTS — Purchases are made in very large quantities, usually two million sheets at a time, so costs are kept low. Paper costs are adjusted once a year. 9. There is no preprinted stock to worry about if background information changes (such as addresses, office hours or telephone numbers). 10. Our Members have the flexibility to enter several different messages each month through the control record, or CADP can produce a message if needed. 11. The bill calculation and bill print programs are integration tested to insure the accuracy of any change. 12. One stop shopping with CADP. The bill calculation, bill print and inserts are all produced and scheduled together by one group. 13. Industry standards are followed for paper, envelopes and postal requirements insuring maximum postal discounts. 14. Quick turnaround - Some cooperative Members receive their bills the day after CADP mails them. 15. CADP is in this cooperative business for the duration and has purchased the necessary hardware to do the job and provide redundancy. 16. CADP is committed to your Members and all aspects of the cooperative business the same as you are, and is constantly looking at other services to enhance mailing services. 17. COST SAVINGS — Multiple bills in one envelope saves money. 18. Knowledge of data — No one knows your data better than CADP. 19. Knowledge of entire process— CADP's knowledge of the cooperative process and cooperative data changes in the future means flexibility to alter processes as the need arises. 1. Selective inserting —board district elections, target marketing, bank drafting, budget billing, rate information, low interest loans. 2. Selective insertion of return envelopes (coop read)— no envelope for bank drafts, credit bills or Members who pay at the counter. 3. CADP can print 128 bar-code or OCR-A for remittance processing. 4. Additional criteria in bill calculation program to catch bills in error from going to the consumer. This can be done by rate and dollar amount, for example rate 01 and >500.00 would be special handled. 5. Suppression of(if you wish) bills with zero balance or inactives with a balance. 6. Information in different size fonts such as budget bill, bank draft, credit"do not pay". 7. Rate reference description, rather than just the rate schedule number itself, this is not hard coded so any changes are dynamic. 8. CADP can print other helpful information such as the cycle code in the return address if 30 days > min delinquent amount. We can print an ' on the bill stub if the consumer should pay the CASH ONLY. 9. Messages for delinquent account and the amount overdue on the bill so that the delinquent notice does not need to be produced. We can also vary messages by the amount owed. 10. CADP can print up to 5 lines of 75 characters each using the normal messages from the control record, or we can use the expanded print message control record. 11. CADP can vary the printing on the back of the bill based upon information on the front of the bill. For example, if the consumer has a balance forward, print the Members rights and remedies on the back of the bill. 12. Final bill immediates can be processed with the next cycle that bills rather than having to process them separately. The following are guidelines for design, folding and packaging of inserts. Conforming to these. will help us minimize machine setup time and maximize throughput helping insure we meet your mailing schedules. PACKAGING AND SHIPPING • When packing for shipping to CADP, please ask your printer to use paper bands around the material. This keeps the inserts in place in the shipping carton and minimizes the amount wasted due to shifting in the box during shipment. This also minimizes handling by our operators. • Inserts need to be delivered to CADP a minimum of five working days prior to the first run with which they will be used. " Please ask your supplier to indicate the number of pieces-in each carton. This will assist us with scheduling and inventory of unused material. MATERIAL • Newsletters and other materials that are folded should be 20 lb. bond paper or equivalent. ' Single sheet material that does not require folding should preferably be at least 65 lb. cover card stock. Lighter weight material can cause significant machine jams, multiple pieces being erroneously inserted in the same envelope and reduced system speed. FOLDING INSERTS FOR 8 1/2"X 11" LASER PRINTED BILLS The inserts'final fold should be letter style (c-folded)and be between 3 1/2" and 4"inches wide and 7" T and 8 1/2"inches long. Z-Folding is NOT permissible because it does not provide a clean edge for the inserter. Single card or Folded 3 1/2"to 4"wide X 65 lb.cover 2C0 lbb. 7"to 8 1/2"long FL L—� FOLDING INSERTS FOR 7"X 8 1/2"LASER PRINTED BILLS • The final fold should be either letter style(c-folded)or in half.The insert size should be between 3 1/2" and 4"inches wide and 6 1/2"and 7" inches long. • Z-Folding is NOT permissible because it does not provide a clean edge for the inserter. Single card or Folded 3 1/2'to 4"wide X 651b.cover 20 lb. 61/2"to 7"long �L—� Following these guidelines will help insure your schedules are being met. Thank you for your support and for using our Mail Room Services. If you have any questions, please do not hesitate to call Rick Willmann, Bill Stone, John Baucom, or Jo Ann Pitts. cow Mail Room Services' Laser Questionnaire 1. Cooperative Name and ID 2. Size of Bill 8 1/2 x 7_ 8 1/2 x 11 _ Color of Bill Green/Black_ Blue/Black— Red/Black_ 3. One side or two?_ 4. How many Cycles?_ Total Accounts Please break down number of accounts per cycle: Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5- Cycle 6 Cycle 7 Cycle 8 Cycle 9 Cycle 10 5. Will Bills be mailed from CARP? 6. What Date is the first live run? What Cycle? 7. Is the bill tailored after another Rural Electric's bill? Yes_ No_ If yes,which one? 8. Will there be an insert each month? Yes_ No_ Will Vary_ Inserts should be at CADP one week prior to live run and meet CADP standards. Will you want CADP to produce your inserts? Yes No 9. Will there be special handled*bills?Yes_ No_ *Special handled means the bills are printed at CADP and returned to the Rural Electric for handling If yes, approximately how many per cycle? Note: You may want to reconsider what bills you are special handling! Are there any accounts that you print two sets of bills? Example: one for coop, one for consumer? Yes— No_ Please explain caw 10. Will there be any bills that are printed at the Rural Electric such as Large Power or Meter Reading Only Cards? Yes_ No_ If yes,please explain Note: Large Power and Meter Cards can go on laser. 11. Do you have accounts using Additional Address for Meter Reading Only Cards? Yes_ No_ Other_ Please explain 12. Should any bills not be printed such as bills with a zero balance, inactives with a balance? Yes No_ Please explain 13. Do you have Seasonal Accounts? Yes_ No_ If yes,when do they run? 14. Do you use Operation Round-Up? Yes_ No_ Note: If you are Consumer Read, check `Yes' to questions 16 and 17. 15. Insert a return envelope for accounts with a credit balance? Yes_ No_ 16. Insert a return envelope for accounts with a Bank Draft?Yes _ No_ 17. Don't insert a return for accounts that have a specific field value defined, for accounts such as consumers who come into the office to pay their bill. (Explain in detail) 18. If the bill is a bank draft account, should CARP print-a message in the due date box that would read"DRAFTED ON 99/99/99"? Yes_ No_ OR "BANK DRAFT DO NOT PAY" Yes_ No 19. If the bill is a credit, should CADP print a message in the due date box that would read"CREDIT BILL DO NOT PAY"? Yes_ No_ 20. If the bill is a budget account, should CADP print a message in the due date box along with the budget amount that reads "BUDGET BILL"? Yes— No_ cow 21. The rate reference file will be used to describe what rate description to use. We can normally print up to and including 20 characters on each rate. You will need to change the control record before your first billing. 22. Should an *print in the return address area indicating that the account has a debit balance forward, or debit budget pay status amount ? Yes_ No_ 23. Will a disconnect message be printed on the bill if the arrears (30+60+90 >delq minimum)? Yes_ No_ NOTE: The message can include the balance forward amount and the cutoff date for the balance forward. 24. How many lines of informational message should be used? 1 _ 2_or 3 _ 25. Is the regular message record used or the expanded record? 26. Should the code 128 bar-code be printed on the stub for the hand held remittance processor?.Yes_ No ** Note:this does not apply to XL-Plus 27. Should an OCR line be printed for remittance processing?Yes_ No_ If yes,what transactions are used to post payments 28. Should the same return address be used on all accounts?Yes_ No_ If No,please list the addresses and specifics for them. 29. Do we use coop or manufacturer's meter number? 30. What dates are used in the Cycle Record and what for? (Other than the obvious) Billing date Y_ N Delinquent date Y_ N_ Cutoff date Y_ N_ Consumption date Y— N_ Misc 1 Y_ N_ Misc 2 Y_ N_ Misc 3 Y N 31-A. What field (Misc 2, Misc 8 or Misc 9) on the Consumer Record should be used to j combine accounts into one envelope? 31-B. XL-Plus users envelope group for multiple Bills in one envelope. cow 32. A prompt on the Billing will ask how many pieces per envelope this refers to number of bills and does not include inserts or a return envelope,most of the time if there is no insert a `3' can be entered for the 8 1/2 x 11, and a `4' for the 8 1/2 x 7. If using an insert, CADP will inform you what to enter in this field the day of Billing. 33. Field 39 on the coop defined control record is number of inserts, this will normally be a 1 if you have one insert and a 4 if you have two inserts. 34. Are there any special messages currently printing that are hard coded? Yes_ No_ If yes,what are they? 35. Can Final Bill Immediates be billed with the next cycle to be billed?Yes No_ 36. The postage will need to be prepaid and the amount will be calculated by: Total active account- special handles * .26= . A check should be sent to Marilyn Railey @ CADP, one month prior to live run. 37. In order to accurately test the new laser form: 1. Create test files with accounts that you would like to see on a laser test. Keep in mind we need several from each rate and try to include a variety of accounts such as new connects, finals, estimates,prorates,meter exchanges,bank drafts, budgets, credit bills, adjustments etc. 2. Send the tape of the test files to CADP (input into a billing). 3.Run a billing against the files created in step 1,produce bills and send to CADP along with tape created in step 2. CADP will produce a new billing with the files from step 2 and compare the new laser bill produced to the bills created in step 3. Once these bills are produced and compared for accuracy,we will send them to you for approval for the live run.