To: Mike Wildgen, City Manager
From: Ed Mullins, Finance Director and Toni Wheeler, Staff Attorney
Date: January 26, 2004
Subject: Utility billing changes
The Finance Department will be requesting the following changes to the method of billing and serving utility customers. The changes were discussed with Lawrence Apartment Owners Association on December 12, 2003. The relevant issues will also be discussed during a meeting with the Lawrence Home Buildings Association on February 10, 2004.
- Increase fees for meter tests, reconnection of service, and trip charges
- Increase the minimum deposit for residential rental property to $100
- Require that service for multi-family accounts with master meters be in the name of the owner or property manager
- Transfer service to the owner or property manager if no new tenant has signed up within 10 days of a service termination
- Establish a $100 fine for tampering with a water meter
- Bill the minimum for sanitary sewer usage for some types of vacant property
- Discontinue providing non-emergency field service after normal work hours
- Review the expanded use of radio transmit water meters in new subdivisions
A more detailed explanation of the requested changes is provided below:
1. Section 19-304 is amended to increase the water meter test fee from $10 to $20.
The $10 fee was set in 1982 and does not cover the cost of the service. The Utility Billing division conducts approximately 80 water meter tests per year. Each test takes at least 45 minutes to complete. There is no charge if the meter is faulty.
2. Section 19-306 is amended to establish the fine at $100 for a person found guilty of tampering with a water meter.
The fine is not specified in the current code provision.
In some locations, one tenant is responsible for obtaining service for a multi-family structure. That tenant must collect payment from the other residents. The amendment will place this burden on the owner or manager, who is in a better position to collect payment from all of the residents. The Utility Billing Division is hopeful this change will reduce the number of accounts that must be written off when the student tenants leave town without paying the final bill.
4. Section 19-307 is amended to incorporate into the Code the division’s policy of waiving the security deposit for owner-occupied residential dwellings.
5. Section 19-307 is amended to increase the minimum deposit for new service from $40 to $100 for residential rental customers.
6. Section 19-307 is amended to do away with the security deposit (equal to the average two month utility bill) collected from residential rental customers whose accounts become delinquent.
The additional security deposit imposed after an account becomes delinquent confuses residential customers. The division believes the increase in the initial deposit (from $40 to $100) will provide it with sufficient security to reduce future write-offs. The amount of charges written-off totaled $113,000 from 2001. A utility customer using just 3000 gallons of water will have a monthly utility bill in excess of $42.00 when water, sanitary sewer, storm water, and sanitation charges are combined.
7. Section 19-307.1 assesses a $5.00 trip charge for initiating service.
Currently the City does not charge for this service. This is designed to reduce our workload during student rush but encouraging tenants to match beginning and ending service dates.
This will reduce future write-offs.
9. Section 19-311 is amended to increase the reconnection charge from $10 to $15 when service is restored after a termination for nonpayment.
The $10 charge was set in 1991. Approximately 30-50 customers per week have service discontinued for nonpayment.
10. Section 19-314.1 is amended to provide for the application of the minimum sanitary sewer charge for unoccupied residential properties upon receipt of a $10 fee to cover administrative costs, and a statement confirming the property’s vacant status.
Local home builders and real estate agents requested this change. The homebuilders and agents were paying high sanitary sewer charges for vacant dwellings (primarily new construction) because the sanitary sewer charges are based upon water usage. The water usage for the properties is high because of lawn irrigation. When the property is occupied, a new sewer charge will be determined based upon the customer’s winter quarter water usage. The $10 fee is solely to offset the costs of administering the program and is not designed to increase revenue.
In addition to these code changes, the Utility Billing Division recommends the following changes to its policies.
1. Eliminate after hour non-emergency service calls.
Currently the Finance Department does not respond to non-emergency service calls after 8:00 PM or on weekends. The department recommends changing this to 5:00 PM for safety and efficiency reasons. The amount of overtime paid to Field Service personnel would be reduced. We would continue to provide non- emergency service to customers that have contacted our office prior to 5:00 PM.
2. Evaluate requiring radio-transmit water meters in new subdivisions.
Radio-transmit water meters would increase the cost of each meter by over $100. The meters would enable the City to delay the hiring of additional meter readers as the City continues to grow. The issue will be discussed with Utility employees and area homebuilders. A meeting with homebuilders has been set for February 10, 2004.