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HomeMy WebLinkAbout2009 02 23 Consent 204 Resolution 2009-17 Repealing Resolution 849, Re-Establishing a Leak Adjustment PolicyCOMMISSION AGENDA CONSENT IXX ITEM 2 04 INFORMATIONAL PUBLIC HEARING MGRS /DEPT February 23,2009 Meeting Authorization REQUEST: The Finance Department Requesting the Commission Approve Resolution No. 2009-17, Repealing Resolution No. 849 and Re-establishing a Leak Adjustment Policy. PURPOSE: The purpose of this Agenda Item is to approve Resolution No. 2009-17 to repeal Resolution No. 849 and establish a new revised leak adjustment policy the option for the adjustment to be calculated on a maximum of two billing periods not one. CONSIDERATIONS: On July 13, 1998 Resolution No. 849 was adopted by the City Commission which created a Potable Leak Adjustment Policy. This policy has been used as a guide for calculating water and wastewater/sewer charge adjustments to customer accounts when a customer experiences a water leak on the customer's side of the meter. Each year approximately 250 customers request a leak adjustment. After much discussion, the attached policy has been revised to enable staff to offer up to two billing period adjustments rather than the one billing period adjustment that is currently offered to the customer. If the customer discovers the leak and repairs it soon thereafter, a one month billing period adjustment may be an acceptable option. However, if the customer is not aware of the leak and receives notification of the leak by the city via a door hanger during the monthly billing process and/or by the monthly bill, the leak will span two billing periods. There have been occasions where the customer is unaware that they may have a leak, such as a leak under a house or building slab, until they receive their bill and/or a door hanger from the city. Two billing period adjustments should be sufficient time to allow a customer to repair the leak while still encouraging prompt repair of the leak. Michael Williams, Bond Counsel, of Akerman Senterfitt, has reviewed the attached policy and does not find it is in conflict with the City's current bond covenants. Please note that although the policy is in a slightly different format the only substantive change has been to enable staff to offer up to two billing period adjustments rather than the one billing period adjustment that is currently offered to the customer. Consent Agenda Item 204 February 23, 2009 Page 2 of 2 FUNDING: No funding is necessary to implement the policy. Each year an average of $12,000 in credits are issued to approximately 250 customers as a result of leak adjustment request. Adding one additional billing period for which a leak adjustment could be calculated could potentially double the annual average adjustment amount to $24,000. The adjustment is made to water, sewer and applicable tax revenues in the Water and Sewer Utility Fund, a fund that generates approximately $7.5 million in revenues per year. Please note that many leaks are ones that do not run through the wastewater/sewer system, such as an irrigation break, slab leak, broken solar pool panel system, or broken hot water heater, that although they may place an additional demand on the water system (and cost), they do not place an additional burden on the wastewater/sewer system and therefore no extra cost is incurred by the City. ATTACHMENTS: • Resolution No. 2009-17 • Resolution No. 849 RECOMMENDATION: The Finance Department recommends that the Commission approve Resolution 2009-17, repealing Resolution No. 849 and re-establishing a Leak Adjustment Policy. COMMISSION ACTION: RESOLUTION No. 849 A RESOLUTION OF THE CITY OF WINTER SPRINGS, FLORIDA, ESTABLISHING A POTABLE WATER LEAK POLICY ON A CUSTOMER'S PROPERTY, PROVIDING 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 ADJUSTMENT OF POTABLE WATER LEAKS OCCURING 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 waxer 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 Usaae Potentially Elisable for a Credit. A. Upon receipt of a request for adjustment accompanied by proof of repair the City will 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 of 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. In no event will the adjusted usage charges exceed the maximum billing threshold for residential customers (there is no threshold for commercial customers); and D. In the determination of the averagC sewer charges billed, the City will evaluate the customer billing history for no more than twelve (12) consecutive months of use in the determination of the excess billing charges. Section III -Adjusted Monthly Chaz~ze(s): A. Once a customer is determined to be eligible for an adjustment, the City will determine the appropriate water credit to be applied to the customer based on: 1. 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 particulaz water customer classification requesting the credit multiplied (}~ 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 Adjustment: 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. This resolution shall be effective upon it adoption. All resolutions in conflict with this Resolution aze superceded to the extent of any such conflict. PASSED AND ADOPTED this 13`~ day of July, 1998 SPRINGS Paul P. Partyka Mayor Attest: City Cle RESOLUTION NUMBER 2009-17 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, REPEALING RESOLUTION 849; RE- ESTABLISHING A WATER LEAK POLICY ON A CUSTOMER'S PROPERTY; PROVIDING FOR THE SEVERABILITY, REPEAL OF PRIOR INCONSISTENT RESOLUTIONS, AND AN EFFECTIVE DATE. WHEREAS, from time to time water losses occur due to the leaks on the customer side of the water meter or service line; and WHEREAS, in recognition of this problem and 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 discourage adjusting water bills for repeat offenders; and WHEREAS, the Commission deems that this Resolution is in the best interests of the public health, safety and welfare of the citizens of the City of Winter Springs, Florida. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: SECTION 1. RECITALS. The foregoing recitals are deemed true and correct and are hereby fully incorporated by this reference. SECTION 2. AUTHORITY. This Resolution is adopted pursuant to the Ordinance, Chapter 166, Florida Statutes, and other applicable provisions of law. SECTION 3. DEFINITIONS. All capitalized terms in this Resolution shall have the meanings defined in the Resolution and the implementing resolutions adopted pursuant thereto. SECTION 4. LEAK ADJUSTMENT POLICY. The City Commission hereby adopts the following policy governing the adjustment of water leaks occurring on private property: I. Eli ibility for Credit: A. Customer, residential or commercial, 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 wishing to apply for an adjustment to their water bill for excessive water use resulting from a leak on the customer's side of the water meter or service line must present the City a request for an adjustment and proof of repair of the leak causing the excessive water use; and, C. City has reviewed the billing period subsequent to the repair of the leak to ascertain that the water use is now normalized when compared to prior billing periods before the incidence of the leak reported by the customer. II. Calculation of Excess Water Usage Eligible for a Credit: A. Once a customer is determined to be eligible for an adjustment, the City will determine the appropriate water credit to be applied to the customer based on: 1. A review of the history of the customer metered water usage patterns for the last twelve (12) consecutive months or other period deemed appropriate but which is no more than twelve (12) consecutive months. 2. The water use deemed to be above (or in excess of) the average or normal water use for the month (or billing period) when the leak was detected. 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 the leak occurred; and, C. The credit, if any, may be calculated for a period of not to exceed two consecutive billing periods to encourage prompt repair of leaks; and, D. The credit, if any, should include all applicable taxes; and, E. A determination of the normal or seasonal use will be calculated by the City Manager or his designee. City of Winter Springs Resolution Number 2009-17 Page 2 of 4 III. Calculation of Excess Wastewater/Sewer Usage Eligible for a Credit: A. Once a customer is determined to be eligible for an adjustment and it is deemed the customer had excessive metered water usage for the billing period in which the leak was detected, the City will determine the appropriate wastewater/sewer credit to be applied to the customer based on: 1. A review of the history of the customer metered wastewater/sewer usage patterns for the last twelve (12) consecutive months or other period deemed appropriate but which is no more than twelve (12) consecutive months. 2. The wastewater/sewer use deemed to be above (or in excess of) the average or normal wastewater/sewer use for the month (or billing period) when the leak was detected. B. The credit, if any, will be equal to the excessive wastewater/sewer usage charges calculated for and billed as a result of the excess water usage calculated in Section II. A. 2. of this policy; and, C. The credit, if any, may be calculated for a period of not to exceed two consecutive billing periods to encourage prompt repair of leaks; and, D. In no event will the adjusted usage charges exceed the maximum billing threshold for residential customers (there is no threshold for commercial customers); and, E. The credit, if any, should include all applicable taxes; and, F. A determination of the normal or seasonal use will be calculated by the City Manager or his designee. IV. Limitation on Eli ibility for an Adjustment: 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 and no more than twice within ten years. SECTION 5. SEVERABILITY. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. City of Winter Springs Resolution Number 2009-17 Page 3 of 4 SECTION 6. REPEAL OF PRIOR INCONSISTENT RESOLUTIONS. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 7. EFFECTIVE DATE. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. RESOLVED BY the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled this 23`d day of February, 2009. CITY OF WINTER SPRINGS, FLORIDA (SEAL) John F. Bush, Mayor By: ATTEST: By: Andrea Lorenzo-Luaces, City Clerk Approved As To Legal Form And Sufficiency For The City Of Winter Springs Only: By: Anthony A. Garganese, City Attorney City of Winter Springs Resolution Number 2009-17 Page 4 of 4 RESOLUTION NUMBER 2009-17 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, REPEALING RESOLUTION 849; RE- ESTABLISHING A WATER LEAK POLICY ON A CUSTOMER'S PROPERTY; PROVIDING FOR THE SEVERABILITY, REPEAL OF PRIOR INCONSISTENT RESOLUTIONS, AND AN EFFECTIVE DATE. WHEREAS, from time to time water losses occur due to the leaks on the customer side of the water meter or service line; and WHEREAS, in recognition of this problem and 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 discourage adjusting water bills for repeat offenders; and WHEREAS, the Commission deems that this Resolution is in the best interests of the public health, safety and welfare of the citizens of the City of Winter Springs, Florida. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA, AS FOLLOWS: SECTION 1. RECITALS. The foregoing recitals are deemed true and correct and are hereby fully incorporated by this reference. SECTION 2. AUTHORITY. This Resolution is adopted pursuant to the Ordinance, Chapter 166, Florida Statutes, and other applicable provisions of law. SECTION 3. DEFINITIONS. All capitalized terms in this Resolution shall have the meanings defined in the Resolution and the implementing resolutions adopted pursuant thereto. SECTION 4. LEAK ADJUSTMENT POLICY. The City Commission hereby adopts the following policy governing the adjustment of water leaks occurring on private property: I. Eli ig bility for Credit: A. Customer, residential or commercial, 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 wishing to apply for an adjustment to their water bill for excessive water use resulting from a leak on the customer's side of the water meter or service line must present the City a request for an adjustment and proof of repair of the leak causing the excessive water use; and, C. City has reviewed the billing period subsequent to the repair of the leak to ascertain that the water use is now normalized when compared to prior billing periods before the incidence of the leak reported by the customer. II. Calculation of Excess Water Usage Eligible for a Credit: A. Once a customer is determined to be eligible for an adjustment, the City will determine the appropriate water credit to be applied to the customer based on: 1. A review of the history of the customer metered water usage patterns for the last twelve (12) consecutive months or other period deemed appropriate but which is no more than twelve (12) consecutive months. 2. The water use deemed to be above (or in excess of) the average or normal water use for the month (or billing period) when the leak was detected. 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 the leak occurred; and, C. The credit, if any, may be calculated for a period of not to exceed two consecutive billing periods to encourage prompt repair of leaks; and, D. The credit, if any, should include all applicable taxes; and, E. A determination of the normal or seasonal use will be calculated by the City Manager or his designee. City of Winter Springs Resolution Number 2009-17 Page 2 of 4 III. Calculation of Excess Wastewater/Sewer Usage Eli~?ible for a Credit: A. Once a customer is determined to be eligible for an adjustment and it is deemed the customer had excessive metered water usage for the billing period in which the leak was detected, the City will determine the appropriate wastewater/sewer credit to be applied to the customer based on: 1. A review of the history of the customer metered wastewater/sewer usage patterns for the last twelve (12) consecutive months or other period deemed appropriate but which is no more than twelve (12) consecutive months. 2. The wastewater/sewer use deemed to be above (or in excess of) the average or normal wastewater/sewer use for the month (or billing period) when the leak was detected. B. The credit, if any, will be equal to the excessive wastewater/sewer usage charges calculated for and billed as a result of the excess water usage calculated in Section II. A. 2. of this policy; and, C. The credit, if any, may be calculated for a period of not to exceed two consecutive billing periods to encourage prompt repair of leaks; and, D. In no event will the adjusted usage charges exceed the maximum billing threshold for residential customers (there is no threshold for commercial customers); and, E. The credit, if any, should include all applicable taxes; and, F. A determination of the normal or seasonal use will be calculated by the City Manager or his designee. IV. Limitation on Eli ibility for an Adjustment: 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 yeaz and no more than twice within ten yeazs. SECTION 5. SEVERABILITY. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion hereto. City of Winter Springs Resolution Number 2009-17 Page 3 of 4 SECTION 6. REPEAL OF PRIOR INCONSISTENT RESOLUTIONS. All prior resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 7. EFFECTIVE DATE. This Resolution shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. RESOLVED BY the City Commission of the City of Winter Springs, Florida, in a regular meeting assembled this 23`d day of February, 2009. (SEAL) ATTEST: By: And a Lorenzo-Luaces, City Clerk Approved As To Legal Form And Sufficiency For The City Of Winter~Springs Only: B~~-'~ ~--- -~ Anthony A. Garganese, City Attorney CITY OF WINTER SPRINGS, FLORIDA a ~~ - ,, B ~. ; y Jo .Bush, Ma}rax ~' ,.; ~~.- ;~ `~ -i_ City of Winter Springs Resolution Number 2009-17 Page 4 of 4