The URL can be used to link to this page

Home My WebLink About1998 06 22 Regular Item-Add-On D COMMISSION AGENDA ADD-ON ITEM D Consent Informational Public Hearing Regular X June 22. 1998 Meeting MGR ;ftvN DEPT_ Authorization REQUEST: City Manager requesting the City Commission to adopt a policy relative to the adjustment of water bills involving leaks on private property. PURPOSE: The purpose of this agenda item is to formalize the City's policy on adjusting water bills in conditions where a leak is experienced on private property. CONSIDERA nON: The City has recently experienced a number of requests for adjusted water bills related to leaks on private property. These leaks involve in some cases large water bills due to the conservation rates that have been applied. The City does not have a Commission approved policy related to this matter. Rob Ori, the Rate Consultant that has done previous work for the City is recommending the policy attached, which he will discuss tonight. This recommendation is essentially what the City is currently doing as a matter of practice. FUNDING: None required. RECOMMENDATION: It is recommended that the City Commission adopt a policy on the adjustment of water bills in cases where leaks occur on private property and return such policy to the Commission in the appropriate format at the next Commission meeting. This policy will become effective upon adoption by the Commission at tonight's meeting. ATTACHMENT: 1. Rob Ori recommendation policy letter. COMMISSION ACTION: U6/19/98 FRI 16:22 FAX ..1Oi 623 5;)3..1 PR~lG lllJ 002 ~ Public Resources Ma~agement Group, Inc. . Utility, Rate, Financial and Management Consultants JUne 19,1998 PRMG #1060-01 Mr:' Ronald W. McLemore City Manager City of Winter Springs 1126 East S.R. 434 Wip.ter Springs, FL 32708 'SUBJECT: Water Use Policy..; Leaks on Customer Premises Dear Ron: " ' ...' As we discussed and as a result of the recent abriormally hot weather being experienced for the Central Florida area, the water use among the utility customers of the City, have. been unusually' . high. As. a result of this change in' water usage habits, it is my understandlng that severai cust0r11ers are now inspecting their syst~ms for the p6'tentiaI of water loss due to leaks which would occur on the customer side of the meter m service line. Based ort .our discussions, you were concemed 'With what other utili tie's may be doing in the I',itak relativ.e to providing any type of credit for leaks on the customer side and to develop a policy relative .to this issue. ' Based on my experience with other utilities ,across the state, there are. three (3) components which need to' be addressed when providing a credit for water use associated with a leak on the customer ,side of the w~ter meter. T~ese three (3) components include the following: i) proof' of repair of the leak which indkates the problem causing the excessive water use has been corrected; ii) an evaluation of.the amount of.se\ver charges applied to the customer for water use that essentially was not re1;urned,to the sewer system (Le., lost); and iii) the application of any water credits for excessive use by. the customer as a 'result, of the leak when compared to normal or'general seasonal use of the customer. As ~e discussed~ I believe a very fair wat~r' billing guideline relative to. w~ter consumption caused by a leak on the customer side 'ofthe .~neter would be as follows: L 'The customer must'first prove that the excessive'water use when compared to prior periods is the result of a leak located on the customer side 'of the. meter and that adequate proof of . correction of the leak is provided to the City. . Additionally, a review .of the . billing period subsequent to the cO.tTection of the ,leak i~ required to ascertain that the water use is now 225 SOUTH SWOOPE AVENUE. SUITE 2U. MAITLAND, FL 32751 TELEPHONE (407) 628-2600 . FAX (401) 628-5884 06/19/98 FRI 16:23 FAX 407 628 5884 PRMG ~003 Mr. Ronald W. McLemore June 19, 1998 Page 2 normalized when compared to prior periods before the Incurrence of the leak by the customer. 2. Based on your review of the prior customer usage history when compared to that period of. jime for which the excessive water use was metered by the City' (the period for which the l.eak was detected), the City will credit the excess sewer usage charges billed on such excessive water use, but iri no event will the usage charge's exceed the maximwn billing thr~shold for' residential customers (there is no billing threshold for commercial ~ustomers). In the determination of the average sewer charges biped, the City will evaluate the cust0mer billing history' for no more thap. twelve (12) consecutive months of use in the determination of the excess billing charges. 3. With respect to the excess water use (consumption) due to this non-recurring event, the City will .determine the 'appropriate water credit to be applied to the customer based on: i) a review of the history of the customer usage patterns for the last twelve (12) ~onsecutive . months or period as deemed appropriate; and ii) 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 th~ excessive water use. A credit equal to the level of w~ter greater . than the average monthly water use will be applied. This credit will be based on the application of the rate for the tirst conswnption block of use for the particular water customer classification requesting the credit times the amount of water use determined to be .in excess of the normal or seasonal use for tQ.is customer at the time for which the leak occurred. For example, if a customer used 20,000 gallons each month on average and then had monthly water use of 100,000 gallons, the' credit would be equal to the actual billed consumption charges by the City applied to the 80,000 gallons of "'lost" water determined incrementally and the 80,000: gallons which would be billed asswning the application of the usage rate for the first consumption block. A determination.of the normal or seasonal use will, be made by the City Manager or his designee. ' 'In developing the water loss guideline above, we have given consideration to both applying, a credit to excessive sewer use for that water which was not returned tothe sewer (i.e., the water associated with the leak) and giving the benefi~ of doubt to the customer that the leak is not considered as exces$ive water' use but was a non-recurring or extraordinary event of tl~e customer. However, the customer is r~sponsible for all wat~r use metered through the City's facilities and must compensate the City for its use. Since the City has t6 produce the water for which'the customer is using, the customer should ,pay for it. The issue is simply one of pricing and by pricing the extraordinary water use at the lowest rate block of the City, we believe that this provides the fairest app~oach of meeting the needs of both the customer and the City. If you have any questions regarding these guidelines or would like any information regarding our thoughts on how does the application of the guidelines would be applied to customers which I) 6 / 19/ 9 S FR I 16: 2.3 FAX ..10 i 62 S 583..1 PR.\lG lllJ 004 Mr. Ronald W. McLemore June 19, 1998 Page 3' experienced a leak or if you, need assistal1cedrafting the codification of these guidelines, please do not hesitate to give us a call.' I hope our thoughts on ~s matter are of assistance ,to the City arid you as you develop your water usage policies: . Very truly YOUIS, , . Public Resources Management Group, Inc. ~/Q- Robert J. Od President Icttcrs/mclemS.let