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HomeMy WebLinkAbout2001 10 22 Regular A Potable Water Unexplained Excessive Use Policy " COMMISSION AGENDA ITEM A ICONSENT INFORMATIONAL PUBLIC HEARING REGULAR X Octo her 22, '7.001 Meeting MGR /V /DEPT. ~ -.::1-- Authorization REQUEST: The Finance Department is requesting the City Commission adopt Resolution 2001-39 establishing a "Potable Water Unexplained Excessive Use Policy". PURPOSE: To provide an administrative bill adjustment procedure to our customers for those water bills that are deemed excessive and their use is unexplained as an alternative to the appeal process to the City Commission. CONSIDERATIONS: . The City has had a few customers who have felt that their water bill was too high, that they couldn't possibly 'have -used -thebilled-number-ofgallons. .-A reread-of the 'meter and testing of the meter has proven it to be accurate. The usage in our customer's mind is "unexplained" and "excessive". We currently have a water leak policy that provides relief to customers when they can show that they have had a leak and have had it fixed. The City does not currently have a policy that allows us to provide any monetary relief to a customer whose usage, in their mind, is unexplained and excessive. . Currently, the City has an appeal process for any customer who feels their consumption was recorded in error. The user must make written application to the City Manager or his designee. The City re'reads meters and flow tests meters for those customers who make written application. If the City is satisfied with both the reading and the results of the flow test, the customer is asked to pay their bill. However, the decision of the City Manager or his designee may be appealed to the City Commission, whose decision is final and binding. . A policy that can be administered at a staff level to provide monetary relief for those customers who feel their bill is both excessive and unexplained is desired as a possible alternative to repeated City Commission appeals in an effort to save our customers time, staff time and City Commission time. . Rob Ori, President of Public Resources Management Group, Inc, (Utility, Rate, Financial and Management Consultants) was hired to assist in the drafting of this policy. . The policy was based on meetings and discussions with applicable staff, the City's current leak policy, the City's utility rate ordinance and the general experience ofPRMG in ratemaking policies. . The policy is basically in the same form as the City's water leak policy. . The policy pertains to customers whose usage meets specific thresholds. . The policy relies on the verification of the meter reading and the accuracy of the meter as substantiated by the flow test - the policy considers all of the recorded water "used". . The relief is in the form of a break in the rates charged for the incremental usage. Basically the lowest block rate is applied to the number of gallons usage between the "maximum" usage (which is the average consumption over the last 12 months) incurred in a month over the last 12 months, and the amount of usage in question. The regular rate structure is used. up to the maximum usage (the average) incurred. . The customer is given the choice to apply this policy or go through the regular appeal process. If they select application ofthis policy the customer waives the right to the appeal process. RECOMMENDATION: The Finance Department recommends that the City Commission adopt Resolution 2001-39 which establishes a Potable Water Unexplained Excessive Use Policy for use by staff. ATTACHMENTS: . Resolution 2001-39 establishing a Potable Water Unexplained Excessive Use Policy. . Section 19-98 of the City's Code of Ordinances pertaining to appeals. . Resolution 849 establishing a Potable Water Leak Policy. COMMISSION ACTION: RESOLUTION NO. ~~= \ -3,\ A RESOLUTION OF THE CITY OF WINTER SPRINGS, FLORIDA, ESTABLISHING AN UNEXPLAINED EXCESSIVE USE POLICY FOR DOMESTIC WATER USERS OF THE CITY'S UTILITY SYSTEM, PROVIDING AN EFFECTIVE DATE. WHEREAS, the City owns and operates a water utility system for the distribution of potable water throughout the City; and WHEREAS, from time to time residents incur unexplained water bills which are considered to be high or excessive when compared to bills incurred in previous months; and WHEREAS, in recognition of this problem and at the City's desire to adopt a uniform policy allowing an adjustment to potable water bills for the general benefit of those residents where unexplained excessive use occurs; and WHEREAS, the City desires the policy to be fair and reasonable to all utility customers of the City and to encourage residents to wisely use potable water for their individual needs and to ultimately discourage excessive water use by repeat offenders; and WHEREAS, the City would like to provide an alternative to both the City and its utility customers relative to the appeal of utility bills as referenced in Section 19-98 of the City's Code of Ordinances. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER -SPRINGS 'THAT-'THE- FOLLOWING"POLICI-ES-SHALL- GOVERN THE ADJUSTMENT OF POT ABLE WATER AND SANITARY SEWER BILLS RELATED TO UNEXPLAINED EXCESSIVE USE INCURRED BY CUSTOMERS OF THE CITY'S UTILITY SYSTEM: Section I - Definitions: A. Except as otherwise provided for in this Resolution, all definitions reflected in Chapter 19 entitled "Utilities" are applicable to the provisions of this policy. B. Unexplained Excessive Use - shall mean the amount of potable water use metered by the City at an individual customer's premise for a single billing period which is not considered as being customary for that account and is not known as to why the consumption occurred based on the usage criteria reflected in this policy. C. Individually Metered Residential Service - shall refer to those water accounts classified as being residential whose domestic water requirements are I060\ExcessUsePolicy.doc individually metered by the City. If the applicable customer has a single water meter that registers both domestic and irrigation water consumption, the measured water consumption associated with this meter will be considered as domestic water use. If the applicable customer has a dual domestic and irrigation service (two meters) which allows for the separate metering of both types of water use, only the meter which measures water consumption primarily for indoor use will be considered as the metered domestic water use for the purposes of this policy. D. Applicant - shall mean the customer, property owner, or person that applies for an unexplained excessive use credit with the City pursuant to the terms of this policy. E. Rate Ordinance - shall refer to Chapter 19 entitled "Utilities" of the City's Code of Ordinances which delineates, among other things, i) the monthly rates for water and wastewater service; ii) provisions regarding the billing, payment, and delinquency of utility bills; iii) appeals for the review of monthly utility bills by an account or property owner to the City; and iv) other applicable provisions relative to the rendition of service to the City's utility customers which are relied upon in the determination of this policy. Section II - Unexplained Excessive Use Criteria: A. The criteria used by the City in the determination of unexplained excessive water use in a particular billing period for an individually metered residential account as it relates solely to the application of this policy is as follows: 1. The metered water use of an account for the particular billing period shall be at least four (4)' times the average water use of such- account- for-the last .-... - twelve (12) consecutive months as metered and billed, by the City. 2. The metered water use of an account for the particular billing period shall be at least two (2) times the previous highest monthly water use of such account for the last twelve (12) consecutive months as metered and billed by the City. 3. Water service to the account must have occurred for a minimum of twelve (12) consecutive months prior to the month where the unexplained excessive use as occurred with no months having a zero usage period. 4. The occupants of the subject residential account must have lived in the residence continuously for twelve (12) consecutive months consistent with the historical water use period that is being relied upon in the determination of unexplained excessive use. I060\ExcessUsePolicy.doc 2 5. The net amount of metered potable water registered at the domestic meter which is considered as being excessive for the particular billing period must be a minimum of twenty thousand (20,000) gallons when compared to the average and maximum month water use for the account. B. In the review of the water use and Applicant characteristics as it relates to the review of the excessive use criteria discussed in Subsection A above, all of the criteria must be satisfied in order for the City to consider any utility bill adjustment in accordance with this policy. The requirements for providing proof of occupancy during the previous twelve (12) months are the responsibility of the Applicant. Section III - Applicability: A. The unexplained excessive use policy is only applicable to individually metered residential accounts and does not include service to master-metered residential service, commercial or non-residential service, or individually metered irrigation service. For single family residences that have a separate meter specific for measuring irrigation or outdoor water use, this policy does not apply to any water use measured by this irrigation meter. For those accounts that are not subject to the provisions of this unexplained excessive use policy, such accounts may still follow the general utility bill appeal process as allowed by the City's Rate Ordinance. Section IV - City Field Service Requirements: A. Any Applicant receiving individually metered residential service who feels that the monthly bill for potable water service is excessive and the reasons for such excessive use is not known or explainable by the Applicant may make a . 1" ak' (th" Ii .,,\ th wntten app lcatton. or-.me.an_.on-sIte.appearance.. e _app catlOn__J__to..__e Finance Director or his/her designee requesting for a bill evaluation and potential adjustment in accordance with this policy. The application by the Applicant must be. within ten. (10) . days after. the. date.ofr.endering. (mailing) of.. .-- the bill by the City. B. Once an application is made by an Applicant for review of the utility bill accordance with this policy and the unexplained excessive use meets the water use criteria as delineated in this policy as determined by the City, the City shall perform the following field service activities in order to evaluate the metered water consumption at the Applicant's premise: 1. The City will reread the water consumption at the meter to verify the accuracy of the initial water reading and for consistency in the amount of water consumption billed to the Applicant. I 060\ExcessUsePolicy .doc 3 2. The City will remove the current meter from the Applicant's premise and install a new meter which is considered by the City to be measuring potable water use within the accuracy standards as defined by the meter manufacturer of the particular meter being installed. 3. The City will perform a flow or "bench" test of the meter that was removed from the Applicant's premise with the City's testing equipment to verify the flow registration accuracy of such meter. 4. Only with the prior receipt of the concurrence from the Applicant which filed the application for the excessive use adjustment, the City will send a Utility Field Representative to the Applicant's premise or property to conduct a general visual review of such premises to identify any unique circumstances and to assist the customer with addressing the unexplained excessive use situation. This review is not considered by the City as a detailed inspection or water use audit of the property to verify use or specific conditions and is expected to be performed during the removal of the existing meter and the installation of the new meter. 5. The City will notify the Applicant by direct mail the results of the City's meter flow test and report whether the meter was registering potable water use within the accuracy limits established by the meter manufacturer within, to the extent practical, five (5) business days after the removal of the meter from the Applicant's premise. Section V - Calculation of Excess Potable Water Use Potentially Eligible for Credit A. If the City determines that the potable water meter that was removed from the Applicant's premise was measuring the potable water use at such premise inaccurately, the.. City. .will.recalculateuthe_.utility_.hilLin .accordance_with .its general policy and notify the Applicant of the amount due. To the extent that the recalculated bill would still result in an unexplained excessive use position, then the provisions of this. policy willsti1Lbe applicable..... uo.....___..,._... B. Based on the City's review of the prior twelve (12) months domestic metered water consumption history when compared to that period of time (not to exceed one [1] billing period) for which the unexplained excessive water use was measured by the City, the City will determine the unexplained excessive use credit as follows: 1. The City will determine the average monthly water use for the Applicant during the previous twelve (12) months that will serve as the maximum water consumption or usage (rate) threshold for the determination of the unexplained excessive use credit. The difference between the actual metered water consumption registered by the meter and the consumption determined to be the maximum water use threshold will i) considered as I060\ExcessUsePolicy.doc 4 being used by the Applicant and ii) will be billed at the first water consumption block rate applicable to the individually metered residential class in effect at the time of the application for the unexplained excessive use credit by the Applicant, all in accordance with the provisions of the City's Rate Ordinance. 2. The amount of metered water consumption not considered as being excessive (i.e., - up to and equal to the maximum water use threshold) will be calculated in accordance with the prevailing water consumption or usage rates in effect at the time of the application for the unexplained excessive use credit by the Applicant, all in accordance with the provisions of the City's Rate Ordinance. 3. If the Applicant also receives wastewater service from the City, the City will determine the maximum monthly wastewater to be billed to the Applicant based on the amount of use which would be billed recognizing the maximum consumption threshold for the determination of the unexplained excessive use credit. In no event will the adjusted usage amount exceed the maximum wastewater billing threshold for individually metered residential customers as reflected in the City's Rate Ordinance. To the extent that the amount of the unexplained potable water use being considered as excessive use results in an increase in the amount of wastewater use being billed to the Applicant, the amount of such use above the maximum monthly wastewater billed will be credited to the Applicant. Specifically, the amount of wastewater billed for the particular billing period under review will not exceed the maximum amount of wastewater billed during any billing period during the previous twelve (12) months for such Applicant. 4. If the Unexplained Excessive Use Credit as calculated by the City is, accepted by the Applicant, the City will adjust the amount of the water and/or wastewater bill due the City and the total amount of the adjusted bill will be due and. .payable_to.. the. City .by_.the..Applicant jn accordance_with____ ___ City Policy. 5. Included on Attachment A is a template and example to illustrate the calculation of the unexplained excessive use credit. Section VI - Payment Provisions A. All provisions of the Rate Ordinance relative to the payment of utility bills are applicable under this policy. 8. If the adjusted utility bill for service, even after the recognition of the excessive use credit, results in a monthly bill which is in excess of one hundred dollars ($100.00) of the maximum bill incurred for utility service by the Applicant I060\ExcessUsePolicy.doc 5 during the previous twelve (12) months, the City at its sole discretion may allow for the payment of the excess water use component of the bill on an installment basis. The payment of the excess water use on an installment basis will not exceed six (6) consecutive months and will be billed uniformly over the installment period. The installment period must be finalized between the City and the Applicant prior to the due date of the current utility bill that was under review by the City and will be included on the utility bill for monthly service during the installment period. The billing of the installments will begin on the next immediate bill for service. In no event will the City allow the payment of the excessive water use on an installment basis if the Applicant has not achieved a good payment history (no delinquent payments or if Applicant has had service discontinued for nonpayment) during the past twelve (12) months of service. C. To the extent that an Applicant elects the installment method of payment of the unexplained excessive use charges, all of the City's rules and regulations relative to the billing and payment for service in accordance with the City's Rate Ordinance will apply, including the provision that the Applicant's utility service may discontinued for the nonpayment of utility service. D. If the Applicant requests a verification of the flow test performed by the City by a third party (e.g.- meter manufacturer or another utility), and the results of such test are consistent with the results of the City's flow test (whereby the results would not result in a change of general accuracy of the meter), the Applicant will be responsible for the actual cost of such tests. The actual cost is the amount invoiced by the third party to the City for the performance of the additional flow test and will not include any costs or markup for administration by the City. If the test results performed by the third party indicate that the meter is not registering within the accuracy limits in accordance with City policy, then meter willuhe __considered. _~_ heing_ inaccurate_ _and___the_ bilL_ ____u_______ recalculation policy of the City will be performed. E. To the extent that the Applicant.does not. accept the results of the unexplained-------- excessive use credit as determined by the City under this policy, then the entire amount as initially billed by the City for utility service shall be due and payable in accordance with the provisions of the Rate Ordinance. The Applicant shall have the right to appeal the utility bill in accordance with the provisions of the Rate Ordinance. Any reductions in the amount billed which may be due to the Applicant as a result of the appeal of utility bill will be credited by the City in the next immediate bill rendered to the Applicant after the appeal has been finalized. Section VII - Limitations on Adiustment Eligibility and Other Miscellaneous Provisions A. No unexplained excessive use credit to an Applicant's utility bill determined in accordance with this policy will be permitted more than once a year or no more I060\ExcessUsePolicy.doc 6 than twice within ten years. No unexplained excessive use credit will extend beyond one (1) billing period. B. If an Applicant accepts the unexplained excessive use credit as determined by the City and the credit is applied to the Applicant's monthly utility bill, the Applicant will waive the right to subsequently appeal the said utility bill in accordance with the provisions of the Rate Ordinance. This Resolution shall be effective upon its adoption. All resolutions in conflict with this Resolution are superceded to the extent of any such conflict. PASSED AND ADOPTED this _ day of ,2001. CITY OF WINTER SPRINGS PaulP.Partyka Mayor Attest: City Clerk I060\ExcessUsePolicy.doc 7 A TT ACHMENT A EXAMPLE / TEMPLATE OF CALCULATION OF UNEXPLAINED EXCESSIVE USE CREDIT ~: Example 11,000 gallons Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: Step 8: Step 9: Determine Average Monthly Water Use Water Use - Unexplained Excessive Period Unexplained Excessive Use Subject to Billing Adjustment Total Potable Water as Billed for Period Calculation of Revised Bill with Adjustment: Base Facility Charge (3/4" meter) Water Use - Maximum Water Threshold Volume Charge - Block I Volume Charge - Block 2 Volume Charge - Block 3 Volume Charge - Block 4 Volume Charge - Block 5 Volume Charge - Block 6 Water Use - Unexplained Excessive Use Volume Charge - Block I Total Adjusted Water Bill with Credit Total Water Excessive Use Credit Is Maximum Water Threshold greater than 10,000 gallons (circle one) If Step 7 is No; Calculate Wastewate(Credit: Water Use - Maximum Water Threshold Sewer Residential Billing Threshold Difference in Billed Usage.. . Wastewater Usage Charge ($/1,000 gallons) Billed Wastewater Use Credit Total Unexplained Excessive Use Credit YesINo 10,000 gallons $2.59 45,000 gallons 34,000 gallons $82.68 $3.58 11,000 gallons $9.10 $1.25 $0.00 $0.00 $0.00 $0.00 34,000 gallons $30.94 $44.87 $37.81 Yes 10,000 gallons 10,000 gallons o gallons $2.59 $0.00 $3LBl UTILITIES that such fees are required by the Code of Ordi- nances, the charges may be established by the city commission and assessed at the time of application. (D Service avaiLability charges. A new user requiring a new connection to the sewer and water treatment facilities shall pay a charge for sewer and water capacity available at the treat- ment facilities, distribution system and collection system. The charge shall be assessed on a per- gallon basis and shall be related to the cost of providing such capacity. Developers will be re- quired to enter into a developer's agreement, which outlines in more detail the requirements of connection to the city's utility system. These charges do not include actual physical connection to the utility system. (Code 1974, ~ 16-45) Sec. 19-97. Billing, payment, delinquency. Users of the water and wastewater system shall be billed monthly and payment shall be due when rendered. If payment is not received by the city in full within twenty (20) days from the date of mailing, the unpaid amount is to be considered to be in arrears and shall be considered delin- quent. If there is an arrearage amount due when the next monthly bill is printed, a late fee will be assessed at the rate of five (5) percent per month on the arrearage amount or five dollars ($5.00), whichever amount is greater. The customer shall be notified of the delinquent amount along with the late fee charges by reference in the next month's billing or specific notification as consid- ered necessary by the city manager or his desig-.... nee. If the entire bill is.not paid in full. within ten. ... (10) days from the date of mailing of the second bill, service shall be discontinued. A fee of twenty dollars ($20.00) shall be assessed to reinstate service, and a fee of thirty dollars ($30.00) shall be assessed for reinstallment of a meter if re- moved for nonpayment or unable to lock-off. A fee of twenty dollars ($20.00) shall be assessed for each check returned for insufficient funds or closed account. Any customer who has two (2) returned checks within a six-month period will be required to make payment in cash or money order. (Code 1974, * 16-46; Ord, No. 449, * r, 1-9-89; Ord. No. 538, * I, 12-14-92; Ord. No. 702, * I, 6-8-98) S 19-100 Sec. 19-98. Appeals. (a) Any user who feels their monthly bill for water and sewer service is unjust and inequitable may make written application to the city manager or his designee requesting a review of their monthly bill within ten (10) days after the date of render- ing the bill by the city. The written request shall, at a minimum, show the basis of the adjustment including the actual or estimated average flow of the water and sewer use in comparison to the amount upon which the charge is based and include a statement explaining the methods used in calculating the measurements or estimates for the appeal. (b) The city manager or his designee shall review the request and, if substantiated, the monthly bill for that user shall be recomputed based on the revised flow data and the new charge shall be adjusted on the next bill. The decision of the city manager may be appealed to the city commission whose decision shall be final and binding. (Code 1974, ~ 16-47; Ord. No. 702, * II, 6-8-98) Sec. 19-99. Annual rate review. (a) The city shall review the user charge at least annually and revise the rates as necessary . to ensure that adequate revenues are generated to pay the costs of operation and maintenance and replacement including depreciation and debt ser- vice and the sewerage system capital improve- , lll.e~~.~~.~o\J,nt. Thesystem shall also be reviewed . .~~ ,~~~tlr.et}:la~ it continues to provide for the proportional distribution charges among users and user classes. (b) The city shall notify each user at least annually of the rate being charged for operation, and maintenance, and replacement including debt service and depreciation of the water and sewer utility system. (Code 1974, ~ 16-48; Ord. No. 702, * III, 6-8-98) Sec. 19-100. Application requirements. (a) All applications shall be made at the busi- ness office during office hours. 1241 RESOLUTION No. 849 A RESOLUTION OF THE CITY OF WINTER SPlUNGS, FLORIDA, ESTABLISHING A POTABLE WATER LEAK POLICY ON A CUSTOMER'S PROPERTY, PROVIDJNG FOR AN EFFECTIVE DATE. WHEREAS, from time to time potable water losses occur due to leaks on the customer side of the water meter or service line; and .. WHEREAS, in recognition of this problem and a the City's desire to adopt a uniform policy allowing an adjustment to water bills involving such leaks; and WHEREAS, the City desires the policy to be fair, encourage customers to inspect their water systems frequently for leaks, and to repair leaks promptly, and therefore discourages adjusting water bills for repeat offenders. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS THAT THE FOLLOWING POLICIES SHALL GOVERN THE ADJ1JSTMENT OF POT ABLE WATER LEAKS OCCURlNG ON PRIVATE PROPERTY: Section I - Eligibility for Credit: A. Customer's experiencing a water leak on the customer side of the water meter or service line must first have the water leak repaired; and B. ,Customer's wishing to apply for an adjustment to their water bill for excessive water use resulting from a leak on the customers side of the water meter or service line must present to the City proof of repair of the leak causing the excessive water use. Section II - Calculation of Excess Usage Potential Iv Eligible for a Credit. A. Upon receipt of a request for adjustment accompanied. by_proof of repair the .City wilL .u. ----. review the billing period subsequent to the correction of the leak to ascertain that the . water use is now normalized when compared to prior periods before the incidence o( the leak reported by the customer; and B. Based on the City's review of the prior customer usage history when compared to that period of time for which the excessive water use was metered by the City (the period for which the leak was detected), the City will credit the excessive sewer usage charges calculated for and billed on such excessive water use; and C. ill no event will the adjusted usage charges exceed the maximwn billing threshold for residential customers (there is no threshold for commercial customers); and D. ill the determination of the average sewer charges billed, the City will evaluate the customer billing history for no more than twelve (I2) consecutive months of use in the detennination of the excess billing charges. . . .' Section m - Adiusted Monthly Charge(s): A. Once a customer is detennined to be eligible for an adjustment, the City will deternline the appropriate water credit to be applied to the customer based on: L A review of the history of the customer usage patterns for the last twelve (12) consecutive months or period deemed appropriate. 2. The water use deemed to be above the average or normal water use for the month(s) in question relative to when the leak was in place which attributed to the excessive water use. B. The credit, if any, will be based on the application of the rate for the first consumption block of use for the particular water customer classification requesting the credit multiplied (X) by the amount of water use determined to be in excess of the normal or seasonal use for this customer at the time for which the leak occurred; and C. A determination of the normal or seasonal use will be calculated by the City Manager or his designee. Section IV - Limlitations on Eligibility for an Adiustment: No adjustment to a customer's water bill due to a leak on the customer side of the water meter or service line, will be permitted more than once a year or no more than twice within ten years. TIris resolution shall be effective upon it adoption. All resolutions in conflict with this Resolution are superceded to the extent of any such conflict. PASSED AND ADOPTED this 13th day of July, 1998 Attest: /