AGENDA CAPTION:
Title
Consider approval of Ordinance 2021-29, on the second of two readings, temporarily changing the method for calculating residential Wastewater Rates established by Ordinance No. 2007-54 by excluding the month of February 2021 from the months used to calculate average water consumption upon which Wastewater Rates are based due to the higher than average water consumption resulting from Winter Storm Uri during the week of February 15; including procedural provisions; and providing an effective date.
Body
Meeting date: May 4, 2021
Department: Finance
Amount & Source of Funding
Funds Required: N/A
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Fiscal Note:
Prior Council Action:
Council approved the Winter Average methodology in Ord. 2007-54
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Background Information:
Residential wastewater bills are determined annually by averaging the three lowest outdoor consumption months of the year (Dec, Jan, Feb) and the average is then used to bill monthly amounts for a full year. The winter storm Uri in February 2021 caused leakage due to damaged piping and faucets were set to run increasing water usage beyond normal amounts. This could distort the actual winter average and potentially overcharge customers for the year. Accordingly, approval of this ordinance changes the formula to determine the rate for 2021 using only the months of December and January in order to avoid any customer bill impacts from the storm event. This is only applicable for 2021 and the normal formula of the three months to be used will be the basis in 2022. This change applies only to residential services. Commercial services are not billed under a winter averaging formula.
We have reviewed the Seasonal Sewer Average (SSA) calculation comparing December 2020, January 2021 & February 2021 (Dec-Feb) to December 2020 & January 2021 (Dec & Jan). The Dec.& Jan. months are based on normal billing periods not impacted by winter storm Uri anomalies causing water-leaks, periods of no usage or additional usage due to customers dripping faucets. As of April 12th, 66 water-leak adjustments for usage in February and 1 due to a dripping faucet have been provided. Based on the review focusing on customers with usage equal to city average of 5000 gallons, 87 customers will be negatively impacted being billed more than the basic charge. But 450 customers will be positively impacted. Dec-Feb has 3,800 residential accounts with usage greater than 5,000 and Dec.& Jan. had 3,350. The 450 customers will have a lower SSA calculate charge. There are approximately 9,436 residential sewer (wastewater) accounts.
Council Committee, Board/Commission Action:
N/A
Alternatives:
Leave as currently defined in ordinance
Recommendation:
Staff recommends approval