Agenda Item 7ACITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: ORDINANCE NO 80-14-84
AGENDA ITEM# 7A
FEBRUARY 10, 2014
AN ORDINANCE AMENDING CHAPTER 22 UTILITIES, ARTICLE I,
SECTION 22-4 AUTHORITY TO ADJUST OR WAIVE CHARGES IN
APPROPRIATE CASES, (E) ADJUSTMENT FOR LEAKS ON CONSUMER'S
SIDE OF METER, AND (F), ADJUSTMENT FOR FILLING SWIMMING
POOL; PROVIDING FOR SEVERABILITY AND PROVIDING FOR AN
EFFECTIVE DATE.
DATE: January 22, 2014
SUBMITTED BY: Nelson VanLiere, City Manager ~~
STRATEGIC PLAN LINK: N/A
BACKGROUND:
As is customary for most utilities, it is the City's policy to adjust utility bills for excessive
consumption for leaks or pool fills. The inclining block rate structure adopted in 2004 is
designed to charge increasingly high amounts per thousand gallons to discourage wasteful use.
In the case of a leak, or a pool fill, the otherwise low usage customer is penalized for the
excessive use as if they were wasteful, when in fact they may be very conservation oriented.
When excessive consumption occurs, the current practice is to adjust the bill amount down by
charging the excessive gallons used at lower volume rate. Excessive is considered consumption
above a twelve month average for the location due to a documented leak or a pool fill. This
practice has been in place for years.
Through recent customer complaints, it has come to our attention that the adjustments given are
not truly helping the customer as much as the policy intended. In 2005, the City recognized the
need to adjust bills for high consumption as a result of the new rate structure and added
language to the code to allow for this. The decision made at the time was to adjust bills down
to the second tier rate instead of the first tier. This still results in a very large bill for customers
that experience leaks and after providing documentation and receiving an enormous bill,
provides little relief.
Since the intent of the higher block rate is to encourage conservation and not penalize otherwise
prudent customers, it is my recommendation that we amend the code to allow adjustments for
excessive consumption down to the first tier. The impact to the City will be to slightly lower
AGENDA ITEM# 7 A
FEBRUARY 10, 2014
revenues collected for water and sewer volume charges by the difference between the first and
second tier rates. This reduction should be easily absorbed by the utility.
Example; If a customer that averages 5k gallons a month has a toilet leak and uses 20k gallons,
he would see volume charges go from $24.14 to $119.25. Under the current code, we would
adjust the bill down to $99.58 resulting in a reduction of $19.67. This is very little help and
penalizes the customer who usually conserves water for a one-time occurrence of excessive
consumption due to a leak.
The proposed language would allow that same customer to have an adjustment of $73.3 7
bringing the volume charges down to $45.88.
The City made 18 adjustments in November including 8 toilet leaks, four pool fills and 6 slab or
line leaks. It would seem appropriate to adjust the accounts down to an amount that was more
in-line with the consumption history of the location than to burden the customer with an
excessively large bill for water that he/she did not intend to waste.
BUDGET: The Public Utility revenue budget should be able to absorb the revenue loss from
the additional adjustments. An annual estimate based on November's adjustments would
approximate a $20,000 revenue loss.
RECOMMENDATION: To adopt Ordinance No. 80-14-84 on second reading.
ATTACHMENTS: Ordinance No. 80-14-84
REVIEWED BY CITY MANAGER --n Y ~ t.;?'u._ f
ORDINANCE NO 80-14-84
AN ORDINANCE AMENDING CHAPTER 22 UTILITIES,
ARTICLE I, SECTION 22-4 AUTHORITY TO ADJUST OR
WAIVE CHARGES IN APPROPRIATE CASES, (E)
ADJUSTMENT FOR LEAKS ON CONSUMER'S SIDE OF
METER, AND (F), ADJUSTMENT FOR FILLING
SWIMMING POOL; PROVIDING FOR SEVERABILITY
AND PROVIDING FOR AN EFFECTIVE DATE.
AGENDA ITEM# 7A
FEBRUARY 10, 2014
WHEREAS, the City has carefully considered the complaints of utility customers
regarding the amount of adjustment received for excessive water consumption related to a leak or
pool fill, and
WHEREAS, the City has determined that amending the code to allow adjustments down
to the first tiered rate from the second tier would more appropriate, and
WHEREAS, the City proposes to amend the code of ordinances to reflect this change in
policy recognizing the financial impact to the City's utility is reasonable.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION ON BEHALF
OF THE PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, that;
SECTION I. Chapter 22 Utilities, of the Code of Ordinances of the City of Atlantic Beach,
Florida is hereby amended to read as follows:
ARTICLE I-IN GENERAL
Sec. 22-4. Authority to adjust or waive charges in appropriate cases.
(e) Adjustment for leaks on consumer's side of meter. An adjustment may be
made to the rate charged for excessive water volume consumed as a result of a leak on
the user's side of the meter where the discharge entered the sanitary sewer system. The
adjustment for water and sewer volume charges would be based on water usage in excess
of that location's average normal monthly consumption for the previous twelve-month
period. The adjusted rate for those excess gallons used would be the rate in effect for the
four (4) to eigh-t (8) zero (0) to three (3) thousand gallon usage per month block rate.
Also, an adjustment to the volume billed may be made to the sewer volume potiion of the
utility bill as a result of a leak on the consumer side of the meter if the water service was
broken at the point where the discharge did not enter the sanitary sewer system. The city
shall decide the extent of the adjustment based on water usage in excess of that location's
average monthly usage for the previous twelve-month period.
AGENDA ITEM# 7A
FEBRUARY 10, 2014
Any request for an adjustment for either water volume or sewer volume charges must be
accompanied by documentation of the leak, in a format acceptable to the city.
No allowances will be made due to running water due to weather conditions.
(f) Adjustments for filling a swimming pool. A one time, per owner, allowance or
adjustment of volume billed for gallons used may be made to the rate charged for
excessive water consumed as a result of filling a swimming pool. The adjustment would
be based on water usage in excess of that location's nmmal monthly usage based on prior
consumption history of the previous twelve-month period. The adjusted water volume
rate for those excess gallons used would be the rate in effect for the four (4) to eight (8)
zero (0) to three (3) thousand gallon usage per month block rate. The sewer volume
billed is to be adjusted down to the average normal monthly usage.
Any request for an adjustment for water and sewer volume charges for filling a
swimming pool must be accompanied by documentation for a new pool or repair, in a
format acceptable to the city.
SECTION 2. Severability
If any section, sentence, clause, or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no way
affect the validity of the remaining portions of this ordinance.
SECTION 3. Effective Date
This Ordinance shall take effect upon its final passage and adoption.
Passed by the City Commission on first reading this 13th day of January, 2014.
Passed by the City Commission on first reading this __ day of , 2014.
Carolyn Woods
Mayor I Presiding Officer
Approved as to fmm and conectness:
Richard Komando
City Attorney
ATTEST:
Donna L. Bartle, CMC
City Clerk