CC - Agendas - City Council - REGULAR - 12/2/2014

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Agenda Item: Adoption of Resolution No. 4264-1473 establishing a policy for credits to utility bills for excessive water loss on the customer side of meters experience leaks. The City has built a rate structure to encourage conservation. Although this has reduced water usage, it can result in costly bills for conservation-oriented customers who incur leaks. In 2009, the City Manager approved a policy that allowed the water portion of the bill to be reduced by 50% if the following criteria were met: 1. The customer must notify the City within 90 days from the date of their statement that there was a leak or other unexplained high water usage 2. The usage must be extraordinarily higher than the normal usage of the account. A new policy, with more specific, uniform eligibility criteria, is proposed for incorporation into the City Code. As an actual example, a customer's toilet ran constantly due to a defective shutoff valve. Their average monthly usage was 6,786 gallons, and monthly bill $102.39. The leak resulted in 108,890 gallons being used during a one-month billing cycle, for which the bill was $1,721.73. After the credit was applied, the customer paid $897.35. The highest credit under the current policy was due to an irrigation system leak that went undetected. The normal bill for this irrigation meter was $38.73 with an average usage of 3,758 gallons. Their leak resulted in 551,300 gallons being used during a one-month billing cycle and a bill of $11,162.68. After the credit was applied, the customer paid $5,590.34. The average annual number of customers and the total credits they received are 253 customers and $85,000. During the unusually cold winter of 2013, 310 customers received $119,098 in credits. Additional Information since the November 4,2014, Meeting. Every week, the Utility Billing Section processes 5,500 bills, of which 800 are identified as exceptions: high reads, 0 reads, and negative reads due to faulty meters. Approximately 60% of the exceptions are high usage. If the usage is abnormally high, the account is set for a manual read, and a letter is sent to the customer with a "Guide to Finding and Fixing Water Leaks" (attached). Customers who receive this letter usually contact the City to have a technician verify that the read is correct and the meter is working properly. On many occasions, the technician will find that the meter is moving (showing a constant use or a leak) and will help the customer identify the cause. Additionally, Water Smart fliers are included with all utility bills periodically during the year, providing guidelines for efficient irrigation, and preventing leaks (attached). 2