Agenda

Back to Calendar Return

New Business

Brentwood City Commission Agenda

Meeting Date:	02/26/2018
Resolution 2018-19 Adoption of Utility Billing Adjustment Policy
Submitted by:	Kirk Bednar, Administration
Department:	Administration

Information

Subject

Resolution 2018-19 - Adoption of Utility Billing Adjustment Policy

Background

↵In response to customer concerns about the equity of the City's existing billing adjustment policies related to water leaks on the customer's side of the water meter, the City Commission recently undertook a review of the existing billing adjustment policies. As a result of that review, it was decided to modify the billing adjustment formula for water leaks to reduce the financial impact for major leaks that were unknown to the customer for an extended period of time.

In lieu of adopting the new billing adjustment policies in ordinance form, staff is recommending adoption of a comprehensive Utility Billing Adjustment Policy via resolution. The intent would be for this new policy to include various administrative procedures, timelines, etc. related to utility billing adjustments and more clearly explain the procedures and document existing administrative practices.

The attached proposed Utility Billing Adjustment policy covers both water and sewer service. The provisions of this proposed policy related to sewer service does not reflect any change from existing policies and procedures. The attached does, however, reflect several changes to the billing adjustment policy related to excessive water usage as a result of an unknown leak in the customer's water lines or plumbing fixtures. As discussed previously by the Board of Commissioners, this policy makes the following changes:

The formula for adjusting a customer's water bill due to excessive water usage related to a leak is modified so that the volume of water in excess of the customer's normal water usage will be charged at 50% of the lowest volume based rate tier with the additional stipulation that the maximum bill in this situation is capped at twice the bill for the customer's normal water usage plus applicable taxes and surcharge. Note that "Normal Water Usage" is defined as a customer’s three-month average water usage for the same time period the previous calendar year, or for the most recent three month period if there is insufficient customer usage data for the prior twelve month period. (See item 3 under Water Service Billing Adjustments).
If the City identifies the leak either through monthly billing data or via daily usage data available through the automatic meter reading system, the City will make its best effort to contact the customer based on available contact information. In order to qualify for a billing adjustment, the customer must repair the leak within ten (10) days of being notified by the City. (See item 4 under Water Service Billing Adjustments).
The proposed policy allows for a billing adjustment of the second consecutive month's bill if the duration of the leak spanned two billing cycles and the customer repaired the leak in a timely manner once notified by the City. (See item 5 under Water Service Billing Adjustments).
If a customer questions the accuracy of the water meter, policy provides the option for the customer to request that the meter be switched and tested. If testing results indicate the meter is performing within industry accuracy specifications, then the customer shall pay a $50 test fee for a standard 5/8 inch or 3/4 inch water meter. For larger meters, the customer shall pay all costs for third-party testing, including shipping charges and taxes. The test fee will be applied to the customer’s water bill. If the meter test results conclude the meter has malfunctioned or does not meet industry accuracy specifications for excessive reading (under reading shall not permit an adjustment), then the City shall adjust the customer’s account for those months affected, as accurately as can reasonably be determined. (See item 7 under Water Service Billing Adjustments)

The change in methodology for calculating adjustments for excessive water usage related to a leak will result in reduced revenue to the Water and Sewer Fund. Based on FY 2018 year to date adjustments, the amount of additional adjustments to customer bills is estimated to be approximately $20,000 annually, but that number can fluctuate considerably based on the number and size of leaks. Also, as the department proceeds with full implementation of the automatic meter reading project, identification of customer leaks should occur much sooner which will result in less overall impact both in terms of gallons lost and financial adjustments.

If you have any questions, please contact Water and Sewer Director Chris Milton.

Staff Recommendation

Staff recommends approval of Resolution 2018-19.

Fiscal Impact

Amount :
Source of Funds:	W&S Fund
Account Number:

Fiscal Impact:

Based on FY 2018 year to date adjustments, the amount of additional adjustments to customer bills is estimated to be approximately $20,000 annually, but that number can fluctuate considerably based on the number and size of leaks. Also, as the department proceeds with full implementation of the automatic meter reading project, identification of customer leaks should occur much sooner which will result in less overall impact both in terms of gallons lost and financial adjustments.

Attachments
Resolution 2018-19
Billing Adjustment Policy
Signed Resolution