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HomeMy WebLinkAboutCOW 2009-09-28 Item 6E - Ordinance - Water and Sewer Bill Leak Adjustments COUNCIL AGENDA SYNOPSIS 4 1J ILA s\ S Initials ITEM No. 4 Meetin Date 1 Prepared by Mayor. revieav 1 Council review, r 1 09/28/09 1 SH 7.. ./'z. 1 P 1 1 10/05/09 SH I i/ .290= I 1 67, ITEM INFORMATION CAS NUMBER 09-137 1 ORIGINAL AGENDA D: "I'E: SEPTEMBER 28, 2009 AGI {ND.1 I li(\1 TI 11,1 An ordinance and policy regarding utility leak adjustments. C.1'II?COR) DiJCU.ision Motion Resolution Ordinance n Bid_-lwarcl n Public Hearing U Other A Itg Date 09/28/09 Altg Date Altg Date 10/5/09 Altg Date AItg Date Altg Date Altg Date SPONSOR Council Li Mayor Adm Svcs n DCD Finance Fire Legal P &R Police (i PW SPONSOR'S The ordinance adds new regulations, TMC 14.04.245 and 14.16.055, providing for adoption SuMM,\R1 by reference proposed Administrative Policy No. 300 -14, Utility Leak Adjustment Policy. The policy would provide for infrequent adjustment to customer charges for abnormally high consumption due to water leaks. The Council is being asked to approve the ordinance adopting Policy 300 -14. RI? \'IIAW'I.D BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 9/22/09 RECOMMENDATIONS: SP<)NSUR /ADMIN. Finance Department ComMrrrl:r• Unanimous Approval; Forward to C.O.W. COST IMPACT FUND SOURCE EXPI INDI Ill RI RI?QuIRI :D AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE I RECORD OF COUNCIL ACTION 9/28/09 10/05/09 MTG. DATE ATTACHMENTS 9/28/09 Informational Memorandum dated 9/15/09 Ordinance in Draft Form Administrative Policy No. 300 -14, Utility Leak Adjusment Policy, in Draft Form Minutes from Finance and Safety Committee meeting of 9/22/09 10/5/09 I TO: FROM: DATE: SUBJECT: ISSUE BACKGROUND DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee Shawn Hunstock, Finance Director September 15, 2009 Leak Adjustment Policy Jim Haggerton, Mayor The City is in need of a policy providing customers with occasional relief on their water and /or sewer bill due to high consumption related to a water leak. Billings for water usage is based on monthly reads by Public Works staff for all residential and commercial customers. Sewer charges are a flat fee for residential customers, currently $11.64 per month plus $31.90 from King County Wastewater Treatment Division for treatment. This rate is not related in any way to the water billing. For commercial customers however, the monthly sewer charge is based on a flat fee of $20.37 from the City, $31.90 from King County Wastewater Treatment Division, for the first 750ccf of consumption and $52.27 per additional 750ccf. For commercial customers, "consumption" is based on the customer's monthly water read. The Utilities staff in Finance works with approximately a 10 -20 customers per year who are billed for abnormally high consumption due to a water leak. Leaks before the meter are the responsibility of the City to repair, and the City looses out on any revenue associated with the lost water. Leaks after the meter are the responsibility of the customer to repair, and they are billed for consumption during the period of the leak. There is currently no authority in the Tukwila Municipal Code or Administrative Policies providing for an infrequent adjustment to water and sewer bills for excessive charges related to a leak. Customers that the Finance Department works with now frequently indicate that repair bills for Teaks could be several hundred dollars, and can be as high as several thousand of dollars, depending on the location of the leak and any structural damage that has occurred as a result of the water leak. These expenses are in addition to the abnormally high water and sewer bills the customers receive for up to several hundred dollars, and on rare occasions in the thousands of dollars. INFORMATIONAL MEMO Page 2 As you are aware, the water the City sells is purchased from Cascade Water Alliance (CWA). The water rates our customers pay are essentially a pass- through of the fees assessed by CWA, plus City administration of the water utility. Because the CWA costs are essentially a pass- through, the perception could be that other City utility customers would end up paying for any charges waived as a part of this policy. However, the water and sewer funds accumulate thousands of dollars in interest income each year that in theory could be used to "pay for" the waived utility charges. RECOMMENDATION The Council is being asked to approve the attached Utility Leak Adjustment Policy, and Ordinance adopting the Policy. This item is scheduled to be discussed at the September 22, 2009 Finance and Safety Committee meeting, the September 28, 2009 Committee of the Whole meeting and subsequent October 5, 2009 Regular Meeting. ATTACHMENTS Draft Ordinance Utility Leak Adjustment Policy 300 -14 C:ltemp\XPg rpwisetl nfoMemoLeakAdjustmentPolicy.doc 14.04.245 Water Bill Leak Adiustments 14.16.055 Sewer Bill Leak Adiustments W: \Word Processing\ Ordinances\ Water Leaks.doc SH:ksn 09/15/2009 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING NEW REGULATIONS REGARDING WATER AND SEWER BILL LEAK ADJUSTMENTS TO BE CODIFIED AT TUKWILA MUNICIPAL CODE SECTIONS 14.04.245, "WATER BILL LEAK ADJUSTMENTS," AND 14.16.055, "SEWER BILL LEAK ADJUSTMENTS PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council recognizes that Tukwila citizens and businesses occasionally incur excessive water and sewer charges related to water leaks; and WHEREAS, such excessive charges arise at the same time that significant expenses are incurred in the repair of such leaks; and WHEREAS, the City Council has determined that it is in the best interest of Tukwila citizens and businesses to provide relief for excessive water and sewer charges related to water leaks; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regulations Established. Tukwila Municipal Code Section 14.04.245, "Water Bill Leak Adjustments," is hereby established to read as follows: City Administrative Policy No. 300 -14, "Utility Leak Adiustment Policy," is hereby adopted and incorporated into this chanter by reference as if fully set forth herein and is attached as Exhibit A. The Finance Director is required to maintain the administrative leak adiustment policy. Changes to the policy require approval of the City Council Finance and Safety Committee. Section 2. Regulations Established. Tukwila Municipal Code Section 14.16.055, "Sewer Bill Leak Adjustments," is hereby established to read as follows: City Administrative Policy No. 300 -14, "Utility Leak Adiustment Policy," is hereby adopted and incorporated into this chapter by reference as if fully set forth herein and is attached as Exhibit A. The Finance Director is required to maintain the administrative leak adjustment policy. Changes to the policy require approval of the City Council Finance and Safety Committee. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Page 1 of 2 Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2009. ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC APPROVED AS TO FORM BY: Office of the City Attorney Attachment: Exhibit A Administrative Policy 300 -14 W: \Word Processing\ Ordinances Water Leaks.doc SH:ksn 09/15/2009 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 1.0 PURPOSE: 2.0 ORGANIZATION AFFECTED: 3.0 REFERENCES: 4.0 POLICY: TITLE: UTILITY LEAK ADJUSTMENT POLICY To provide a procedure for approval, calculatioFand#justment of water and sewer charges (Single family Non single famiiit accoul lassifications) where excessive water consumption can be attril ed..to °a water tea 4.1 The property owner, or their-a- must requhe adjustment in writing by completing a request fpm Ioc t the Finance Department in City Hall or on the website Reiredi fatrnation shall include: a a service a. ess where leak occurred and account numb Upon t ofompleted request form, a representative of the City Public WW depa tit will confirm, through visual inspection, that the leak has be* repair. CITY OF TUKWILA ADMINISTRATIVE MANUAL escripWn of leak an,iate repaired y oa r bill or merials receipts ei Index: 300 -14 Page 1 of 3 EXHIBIT A 4.3 Ft wing co: irmation of repair, Finance personnel will adjust no more tha n laiifg cycles (2 months). Single- family account types will have water y adjusted. Non single family account types, where the custorr's sewer bill may be based on the water consumption, will be allowed an adjustment to the water, City sewer and Metro sewer charge, provided it can be confirmed to the satisfaction of the Finance Utilities Supervisor that the additional water volume was due to the leak and did not enter the sanitary sewer system. 4.4 The consumption used to determine the leak adjustment amount will be the actual consumption from the same bill cycle of the previous year if the current resident /tenant also occupied the space during the same period in the prior year. TITLE: UTILITY LEAK ADJUSTMENT POLICY 4.5 For property owners who have been owners for less than one year, or in situations where the current tenant did not occupy the same space in the previous year, the consumption used to determine the leak adjustment amount will be one of the following: 4.8 An average of the water consumption in the three complete billing cycles imme.dinlelTtpreceding the bill cycle in which the leak begatzt- In the absence of threo water consumption after be lea prior billing cycles, pair is complete can be used to estimate consurription duF4the leak period. Index: 300 -14 Page 2 of 3 4.6 One leak adjustment per 12 —moth period per account wifl bT thorized. If an additional adjustment reques submied for an accoutin the next or following year(s), the Finance Uti supervisor will consult with the Water Utility Engineer to determine if Pity will require the customer to complete extensive re: :ES to the service ti and /or fixtures. 4.7 Property owners will be igrik a leak adgement if the total dollar amount of the adjustment kr both at r and sewer is greater than $50.00 (or $25.00 fora water only account), nbirt05ceed a credit of $500.00 for water otments. Ad are limited to no more than $5,0045 for a .ombinationf water and /or sewer charges, regardless of thenrr of cusner. following required approvals: or less nance Utilities Supervisor n $500.00 and up to $5,000.00 Finance Director 4: If the prope Towne. the decision made by the City in which the disputed arridant exceeds $500.00, he or she may submit a written rest to th ity of Tukwila Finance Director for an administrative review stment by the City Council Utilities Committee. Reco rdations for leak adjustments made by Utilities Committee will be submitted to the full City Council for final consideration and approval. Such request should identify the property, describe the leak and repair, and state the basis for the request for an administrative review. The Finance Director must receive the written request for administrative review within 15 days from the date the City posted the adjustment to the account. Pending the decision on this review, the customer who requests such review must continue to pay the disputed charge as billed until the written decision of the Finance Director is provided. A decision of such an administrative review will be provided within 30 days of receipt of the TITLE: UTILITY LEAK ADJUSTMENT POLICY 10/1/09 written request for administrative review. Upon the written decision of the Finance Director, if an account has been incorrectly charged, the account will be adjusted accordingly to cover all billings occurring during the administrative review and all billings that preceded the date of receipt of the written request for review, in accordance with City policy. Title: UTILITY LEA'ADJUSTMENT POLICY Effective Date: Supercedes: N/A Index: 300 -14 Page 3 of 3 Initiating Department: Finance Department Mayor's Office Approval Signature: FINANCE AND SAFETY COMMITTEE Meeting Minutes September 22, 2009 5:00 p.nz.; Conference Room #3 PRESENT Councilmembers: Pam Linder, Chair; Joe Duffie and De' Sean Quinn Staff: Shawn Hunstock, Bob Giberson, and Kimberly Matej Guests: Jeremy Eide CALL TO ORDER: Chair Linder called the meeting to order at 5:00 p.m. I. PRESENTATIONS No presentations. City of Tukwila Finance and Safety Committee II. BUSINESS AGENDA A. Seattle Southside Visitor Center Lease This item has been removed from the Committee Agenda, per agreement of the full Council at the Regular Council meeting on September 21, 2009. Since the Seattle Southside Visitor Center Lease is currently in draft form and changes at the staff level are anticipated, Council felt it would be more efficient to review the item once staff has made final changes. Due to time constraints, this item will move directly to the next scheduled COW on September 28, 2009 instead of returning to Committee on October 6. FORWARD TO SEPTEMBER 28 COW FOR DISCUSSION. B. Resolution Ordering the Cancellation of Outstanding, General Fund Claims and Payroll Checks, Municinal Court Checks and Foster Golf Gift Cards Staff is seeking approval of an annual resolution writing -off unredeemed and outstanding items which will be reported to the Washington State Department of Revenue by November 1, 2009. This year's cancellations total $4,602.33. All cancellations will be remitted to the Washington State Department of Revenue Unclaimed Property Section. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 28 COW. C. Resolution Onnosina Initiative 1033 At the request of the City Council, staff is bringing forward a resolution which opposes Initiative 1033 (I- 1033). Initiative 1033 is scheduled to be on the November 3 General Election ballot. If approved, I -1033 would limit the growth of state, county and city revenue to the annual inflation and population growth. Committee members suggested adding additional language to the resolution that would strengthen the understanding of the initiative's impact on the City, including identifying basic levels of service (i.e.: fire and police) and recession concerns. The Committee discussed possible ways of notifying voters of the importance of opposing this initiative. Shawn Hunstock, Finance Director, will follow -up with the City Attorney to address some of these suggestions and will report out at the September 28 COW. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 28 COW. D. Ordinance and Policy Reaardina Utility Leak Adiustments Staff is seeking full Council approval of a policy, and subsequent approval of an ordinance, that will 4" provide utility customers with occasional fiscal relief on their water and/or sewer bill due to high consumption as a result of a water leak. Finance Safety Committee Minutes Seotember 22, 2009 Page 2 We have approximately, 10 -20 instances a year that would be eligible for a utility leak adjustment under this policy. The policy is based on the following parameters: Adjustment of no more than two billings cycles (two months). One leak adjustment per 12 -month period, per account. Water only adjustments cannot exceed a credit of $500. Adjustments will be limited to $5,000 for and combination of water and /or sewer charges, regardless of customer type. Currently, the City of Tukwila is the only member of Cascade Water Alliance who does not have a water and sewer leak adjustment policy. It was also suggested by WCIA that the City implement a formal mechanism to respond to such adjustments. UNANIlVIOUS APPROVAL. FORWARD TO SEPTEMBER 28 COW FOR DISCUSSION. E. City Investment Update As required by Finance Policy 03 -17, Shawn Hunstock, Finance Director, provided the Committee with a quarterly investment report. Previously, this report has not been presented to the Committee on a regular basis. Shawn reviewed the City's Investment Portfolio Summary with the Committee and stated that we continue to strive for increased returns on investments, but the economic climate makes it extremely challenging at this time. Investments are diversified. Shawn explained that although CD's are not necessarily common among cities, we are currently earning more with CD investments than with the State. Additionally, the CD's we hold with USBank essentially cover the City's bank fees. For example, the CD's earn interest in which we, in turn, use to pay off bank fees. A majority of these cash investments are related to non General Fund monies. INFORMATION ONLY. III. MISCELLANEOUS Meeting adjourned at 5:50 p.m. Next meeting: Wednesday, October 6, 2009 5:00 p.m. Conference Room #3 F SL- Committee Chair Approval Minutes by KAM.