Exh 8GAGENDA ITEM #3G
JANUARY I0, 2005
CITY OF ATLANTIC BEACH
• ~ CITY COMMISSION MEETING
- STAFF REPORT
AGENDA ITEM: Authorization to draft an ordinance amending Chapter 22 on
utilities to allow billing adjustments for excess water consumption
resulting from leaks.
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: January 1, 2005
BACKGROUND: As a result of the recently adopted inclining block water
conservation rate structure, a number of customers have asked for
' ' credits related to high usage from leaks. The City's policy is to
only credit the sewer portion of the bill under the assumption that
we did not treat the water that was leaked into the ground. We do
not adjust the water portion of the bill unless the City caused the
• leak. All water was charged at the same rate of $1.74 per thousand
gallons. Therefore if a leak caused a customer that normally uses
• ~ 10 thousand gallons to have an additiona130 thousand gallons in
consumption, the City would charge them the $1.74 per thousand
or $52.20 for that leak. Although the customer would claim that
they did not use this water, the City charges for it in order to
recover the cost of providing it.
With the new rate structure in place, another. factor has entered the
• ~ equation. We are charging a higher amount for high usage to
discourage consumption. Furthermore, these higher volume rates
have no relation to the City's cost. Tf no change in the City's code
' ' is adopted, this same customer with a leak of 30 thousand gallons
• over normal consumption of 10 thousand gallons will pay $122.62.
The difference from the old rates is $70.42 more for a typical leak.
' In my opinion, it was not the City's intention to penalize the
average use customer for having cone-tune leak.
BUDGET: Based on the past few months, adjustments due to leaks causing
consumption in the highest volume rate blocks should amount to
about $3,500 per year.
. RECOMMENDATION: Authorize the City staff to propose an ordinance providing
for the ability to adjust customer accounts for excess consumption
due to leaks to the volume block rate that represents that
customer's normal usage.
REVIEWED BY CITY MANAGE