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17. Sykes' Sewer and Water BillAgenda -April 14, 1997 AGENDA ITEM 17 - SYKES' SEWER AND WATER BILL BACKGROUNDICONSIDERATION: This is a continuance item from previous meetings. RECOMMENDATION: My recommendation is to follow your current requirements for over -billing procedures. ACTION REQUIRED: MOTION directing staff for final disposition of this item. Agenda -April 7, 1997 AGENDA ITEM 10 - SYKES' SEWER AND WATER BILL BACKGROUND/CONSIDERATION: I have enclosed more background information for this item. In an effort to assist us in understanding the plumbing system in Syke's, we have attempted to have a diagram that would illustrate the line location and metering location. I have enclosed the diagram submitted by Chuck's Plumbing and Heating for our assistance. The third meter is not an issue in this billing question. The third meter was installed in 1992 after some disagreements about the billing at that time. Mr. Williams compiled an agreement with Syke's to remove the delinquent amounts. The sewer rates were to be charged against all water used but some was actually going to the cooling system. The City had no knowledge that this was going to the cooling system. Apparently, Syke's was not aware of the ability to have a sewer deduction for the cooling system water usage. I have enclosed the 1992 agreement for your information. I have also enclosed the original (11/8/96) memo to me from the Water Department. Based upon this memo, we attempted to get their plumber to go with our personnel to inspect the plumbing system. After several calls and attempts to make arrangements, Mrs. Wise was able to get the plumber with our employee. The plumber insisted that the changes were completed prior to October, 1996, but cannot tell us when and does not have any records to verify any changes. Agenda -April 7, 1997 I have enclosed a copy of their consumption record (titled meter pending inquiry) that reveals a change in usage on January 3, 1994 when it increased from 66 to 134 units and upward after this date. The existing rules page relating to our charging is enclosed as well as our calculations based upon the existing regulations. RECOMMENDATION: My strong recommendation is to reimburse Syke's as per our legal rules and regulations. If we set a new precedent, we may need to reanalyze our policies. The responsibility for the private system changes are shared by the private owner and their plumber. No notification to the City was made until October, 1996. November 8, 1996 (�J" TO: CLARENCE KREPPS, CITY MANAGER FROM: HOLLI GE MBALA, WATER CLERK RE: SYKES GROCERY 202 2ND AVE WEST ACCr#12-693 Sykes has three meters on their premises. one meter is for water only which is for their cooling system. The other two meters are for water and sewer usage in their store/restaurant and for the "new addition" (?) they put on. One of the water/sewer meters began "NO►P READING" in May 1994. We began estimating usage at that time. In January 1995, meter was changed out and new meter put in. New meter has also been estimated since that tam due to NoT READING. -°_-� Sykes called twice in the last six months regarding a leak by the sidewalk. Jeff �(one of our outside servicemen) went over both times and told them there mist be a broken line under sidewalk. The last time he was there, 10/29/96, he turned <-� water OFF because Sykes did not want to dig up sidewalk and repair leak. While,F - Jef f was there a plumber said they were going to re -plumb so that all water/sewer tt usage went through one*meter. Jeff'took out meter which was put in January 1995 that we have been estimating usage on previous months usage. Meter showed NO USAGE; still read all ZEROS. Jeff tested meter and meter is functioning Properly. July Wise, one of the owners of Sykes, believes she is entitled to a refund going all the way back to May 1994 when meter was first estimated. She claims she has spent $5,971.61 since that time. that meter wasve nono 1 ne through �i to l the files be used. cannot also talc drk orders to J and the otter water guys outside, and nobody is aware of any changes. The water has always been on as it was just turned OFF 10/29/96. Before this meter began not reading there was about 160,000 to 110,000 gallons through meter every two months. Logically if the water was nest registeringthrough this meter it would have gone through one of the other meters and their usage would have increased considerably, yet usage has remained constant on other two meters. I also cannot understand why they never ccxmmuticated with us that meter was not being used. Why would anyone want to pay $365.46 every two months if they did not need to? As I am sure youare aware, our rules and31ations only allow us to go back six months (thre billing cycles) to do anof adustment. I am hesitant of any ttyy of adjustment as I cannot underswhy thatmuch usage just shed when n TIng has changed. If water was on and service was leaking, water was going through scmewhere. As our rules and regulations also state, if service is Ma minimum bill will be �,.generated until water department comes and actually turns water off at curb. As stated before, water was turned OFF 10/29/96. I have attached a copy of the customers account and my calculations of an adjustment based on a mum bill versus what we estimated usage and charged them for. I show a total adjustment of $1 358.34. Mrs. Wise is very"adamant about her $5, 971. 61 and I am hoping you can Wlp with a, ,solution to the problem. Please let me know if you need further information or if I have not made situation clear enough. �.' .�: ,�.,_��� �` ..Wa ''S';` ` .i"�=�,4 �i* ,S'z+n�•• .g. ;..F tdi, ,6��i,A. i r 4 . �-- is �., ,� `, • •v .sue PA'ar N41 ja v rr 0-1 12-693 NAME Sykes Grocery STREET 202 2nd Ave. West Size & /p a9-�l ('FA= leptune 34392 R.O.M. /V �alwlf l�st� t_ tk 7` Ii5 wuhr% all re laolzlv, Meter . #r2-ra9t Sewer ......., .rosy T=SRI r t n 19 1 DAY DEC. NOV OCT SEAT. AUG. 11AY jUNE - y + APR. MAR. R�AOING top of stairs left ROM -I NET READING GtG METER READING INQUIRY SERVICE # 12-691 12-691 RESS 202 2ND AVE WEST SYKES GROCERY U..jT P 0 BOX 0277 METER NO 3661942 KALISPELL MT 59903-0277 STATUS ACTIVE BOOK/PAGE 12/ 131 DIGITS: 4 0 TYPE DOCUMENT DATE CUSTOMER METER READ 1 READ 2 USAGE BOOK 01/03/95 12-691 3661942 1582 154 BOOK 11/01/94 12-691 3661942 1428 188 BOOK 09/02/94 12-691 3661942 1240 174 BOOK 07/07/94 12-691 3661942 1066 164 BOOK 05/02/94 12-691 3661942 902 157 BOOK 03/01/94 12-691 3661942 745 13t BOOK n�% p -24 _ - 6 91 �� "-u y �4 2 --- ---6 -1 -1 66 BOOK 11/02/93 12-691 3661942 545 64 BOOK 09/01/93 12-691 3661942 481 80 BOOK 07/01/93 12-691 3661942 401 75 BOOK 05/03/93 12-691 3661942 326 67 BOOK 03/04/93 12-691 3661942 259 55 W Uvj�- mow AGREEMENT This AGREEMENT made and entered into this 29th day of January, 1992, by and between the City of Kalispell, a municipal corporation, (hereinafter CITY) of Kalispell, Montana, and Sykes Grocery, (hereafter SYKE'S), of Kalispell, Montana. W I T N E S S E T H: WHEREAS, the CITY operates, pursuant to the laws of the State of Montana, a municipal water distribution system and a municipal sewer disposal system in accordance with the rules and regulations of the Montana Public Service Commission, and WHEREAS, SYKE'S is a customer of said utilities, within the corporate limits of the CITY, served by two utility accounts, to - wit: # 12-691 and # 12-693, and WHEREAS, as of the date of this AGREEMENT account # 12-691 has a delinquent balance due of $2,429.85 and a current balance due of $1,870.64, and WHEREAS, as of the date of this AGREEMENT account # 12-693 has a delinquent balance due of $1,582.18 and a current balance due of $1,592.00, and WHEREAS, total delinquencies on account #'s 12-691 and 12-693 total $4,011.03, and WHEREAS, the City in accordance with its Rules and Regulations for the operation of the CITY water and sewer utilities has given SYKE'S notice of the delinquency and posted notice upon the premises that water service will be terminated, on January 30, 1992, unless the delinquent accounts, herein reference,= -.are paid in 'full, and WHEREAS, the parties hereto are desirous of entering into this AGREEMENT whereby the City agrees to continue service to the premises in consideration for SYKE'S agreement to retire the delinquencies, pay current billing, and continue to pay billings in the future. NOW THEREFORE IT IS AGREED BETWEEN THE PARTIES TO THIS AGREEMENT AS FOLLOWS:.-4 x 1 j That SYKES shale, on = or before tl a 5th day off " February;61992 pay the current bill Mcif ­$1,570.64 on account # ` 12-691, 'in full. 2) That SYKE'S shall, on or before the February, 1992, pay the current bill of account #_12-693, in full. - ", 1 5th day of $1,592.00 on 3) That SYKE'S shall retire the delinquencies in account #'s 12-691 and 12-693 by paying the sum of $500.00 per month to the CITY with payments to commence on the 5th day of February, 1992 and continuing until the sum of $4,011.03 has been paid in full. 4) That SYKE'S shall pay future billings before they become delinquent. 5) That the CITY, in consideration of the covenants of SYKE'S, herein recited, shall continue to serve the premises of SYKE'S so long as terms of this AGREEMENT are observed and shall not terminate service to the premises on January 30, 1992. DATED THIS 29TH DAY OF JANUARY, 1992. SYKE'S GROCERY BY • 1 • '�''Q.e" CITY OF KALISPELL BY Mayor 2 CHUGIVS PLUM"N"S & HEATING, 1190 Ciawk Drive Kalispell, MT 59901 (406) 755-8900 APPLICATION FOR WATER,,9ERY19E Account Number: Meter Reading: 'e UNDERSIGNED OWNER/OWNER'S �,4aENT Y T�E hereby applies to the City of Kal ispel i fo Water Service at said premises. The undersigned agree to abide by all rules, regulations and ordinances of the City relating to rater Service and to pay promptly -for all water -and sewer charges therefor. The undersigned owner is aware of and agrees that he wi I be 1 iable for al l water and service charges to 'said - promises. as provided by Section 2,! 2 � Code of the C isof l i spe l l @ Montana. Address: i3ati� ®d+��ed:'y"?"� Start service: Turned on: .j.- _ �y: Number of Units - Signature: x Sewer— Aa,04-/ ­ ­ ­ --- . -.-- .. . - - 1— out of City Charge Remarks: w!— r r ———— i r s w ®—— m.s s — s® - , s ® r 0 NOTICE -TO 12UQQNNE!Q1ZREQQNNE!gT­WATE8 SERVICE Account g Meter Reading. • Customer Signature:— - Address:' Mail Final To: Ordered: Turned Off: By: z..Aw Completed: Turned On: BY': �I?ECIAL CIRCt1M§jAHCE8_./ C5 a Ce -1 ` -1`s Starting Date and Time: , Uv(,llC. �'!'1 1 ��e of •Work : Extent of Work: s 4 § -4y vja,� —PAI�La.�J'Tktvial VWcr-- -#b Mai aq erv-4 2 jkAl q� R mor im j V R5 W T6- We lw4 Sup. jdt, 9 p �otll �.i *Jt Lv t�� �3(a5.41- q(- -b tj at, t qq 4 WTV I 32 vsm WTY- WTr- fit. `-EJ ,�Sw 2- oa3 I. �J A u�M- ` - 52- z WTI-- � ��•�z (4)"'Adjustrgent'of'Bills,;. The'.customerj at the custom4rks.yequest'i!. to be instructed o_n ficnt tq.xead the."water meter~ if the customer believe the meter readimg shown' on the' ball is incorrect by com- paring previous billings" and current readings, the customer shall notify the Water Department -"within five days of receipt of the -- billing in question.. In case "of a dispute as to the accuracy of _ tliemeter, the customer, upon depositing the amount set forth in r the Rate Schedule, may denand that the meter be removed and tested for accuracy in the presence of the customer. If the meter is found to be registering correctly within two percent of true re- cording or in favor of the customer, the amount deposited shall be forfeited to the Water Department. If the meter is found to be recording incorrectly (i.e. over two per cent of true recording) against the customer, the Water Department shall refund the deposit and refund to the customer the overcharge, based on a true re cording for a period of six months or for a lesser period, if the date of cause can be established from records related to the cause. (5) 'Error "in "Billing. If an error in billing has been made, the Water Department may go back six months to recover any under -billing or k must go back six months to refund any over -collections. _ (6)""Detid Neters. If a meter is found not to register for any period, the Water Department shall compute the water used as follows: - (a) For customers who have been served for over one year, the amount billed shall be based on the same consump- tive use as occurred during the same period the pre- - ' vious year. (b) For customers who have been served for less than one year, the amount billed shall be based upon water used for the last billing period_ Exceptions will be made to'the rule if the facts reasonably show — that either method does not give the correct consumption for the period. Rule X Complaints The Water Department shall make a full and prompt investigation of all coin- ..^ plaints made to it by its customers, either directly or through the City Council and report the results thereof to the customer. If the complaint is not rectified to the satisfaction of the customer, the Mater Department shall notify the customer of the privilege of appeal to the City Council. Rule XI 'Service 'Interruptions --- (1) Notification of. Scheduled Tnterruption. Every customer affected by an interruption in service shall be notified in advance of all 'programmed work.: Such notice shall be made at least 18 hours -7- Agenda -March 24, 1997 AGENDA ITEM 9 - SYKES' SEWER AND WATER BILL BACKGROUND/CONSIDERATION: I have enclosed a letter sent to Syke's in reference to some problems and overcharging of water/sewer bills since May of 1994. In October of 1996, Mrs. Wise brought to our attention a possible mistake in our water billings. As outlined in my letter, we have completed our investigation, and I have offered a refund based upon the facts, timing, and especially existing. As you will notice, we have a six month maximum for overcharging corrections. I understand this has been enforced by the staff in past incidents. I also need to stress that the responsibility of changes within a resident's/business' facility water/sewer system is strictly the owners. The repair, changes, and responsibility to notify the City of changes lies with the owner. I do, however, recognize that we should have also realized that a change had been made by comparing all of the meter readings. By estimating, not investigating, we continued to exacerbate the problem for the past three years. RECOMMENDATION: My recommendation is outlined within my letter to Mrs. Wise. I have based it upon: 1. Owner's responsibility - failure to notify the City of system change; 2. Owner responsibility for changes within their system - City has no responsibility inside private property. Agenda -March 24, 1997 3. Existing regulations adopted by the City Council to limit refunds to a maximum of six months. 4. Deduction of minimum water/sewer bill for the six months of overcharging allowed for refund since the City was not notified -this is the typical policy. 5. No notification by the plumber of changing system routing around on existing meter system. ACTION REQUIRED: A MOTION to verify my offer to Mrs. Wise. If you desire to refund more, you will need to make a motion to direct me to refund whatever the amount may be. I must caution you that an exception may set future precedent or may undermine future overcharge settlements. This decision must be based upon facts and regulations, and not because of the establishment involved. coV 6d ( J Incorporated.1892 relephone (406) 758-7700 Douglas Rauthe 'FAX (406).758-7758 Mayor Post office Sox 1997 Kalispell, Montana Clarence W. Krepps Zip 59903.1997 City Manager City Council Members: March 13, 1997 Gary W. Nystul Ward I Cliff Collins Mrs. Judy Wise Ward I c/o Syke' s Grocery Norbert F. Donahue 202-2nd Avenue West ward If Kalispell, MT 59901 Dale Haarr Re.: Water/Sewer Billings for Syke's Grocery Ward11 Jim Atkinson Dear Mrs. Wise: Ward III In response to our discussion in October of 1996 concerning your Lauren Granmo Ward III water bill, I instructed the Water Department employees to compile a complete summary of your billing since 1994. I also Pamela B. Kennedy instructed the water meter employee to make a walk through of Ward IV your facilities with your plumber to determine if, when, and M. Duane Larson tat changes have been made within your facilities. We would ward IV en be able to ascertain or verify if changes have been implemented. The employees had attempted on several occasions to make an appointment with Chuck's Plumbing without success. However, we were finally able to make the inspection with Chuck's Plumbing in February of 1997. Since Chuck's Plumbing apparently does not have any formal records related to changes within your facility, we were only able to verify that a change in your system as well as a change in the method of metering was done by visual inspection, by verbal verification of Chuck's Plumbing, and by reviewing the records. Upon completing all of these activities it is apparent that there was a plumbing change in May of 1994. The plumbing and metering system changes were done without notification to the City Water Department by you or your plumber. The billings continued as if the one meter was "dead" with estimates being utilized for the billing amount. You continued to pay the bills, as if both meters were working and without any inquiries to the City, until October 29, 1996, at which time you did inquire about your water bills. I have further reviewed the billings to compute the amount that has been "over -collected". This computation was done based upon r-,,notification'of a plumbing/meter system change by you and it plumber. In other words, rather than figuring your bill at the estimated usage (or billed to you), we have calculated only a minimum billing for water and sewer. Based upon this calculation from May 1994 to October 1996, an over -collection of $5,458.16 (water $1,532.65, sewer $3,925.51) was received by the City. However, further review of the rules/regulations of the Kalispell Water Department reveal restrictions for errors in billings. Rule #9 (5) states, "If an error in billing has been made, the Water Department may go back six months to recover any under -billing or must go back six months to refund any over -collection". Based upon these rules, I can authorize a refund to you (deducting the minimum water/sewer bills) of $299.46 for the water over -collection and $1,059.69 for the sewer over -collection for a total refund of $1,359.15. If the $1,359.15 is acceptable, we will issue a check to you immediately. You do have the right to an appeal to the City Council if you are not satisfied with the proposed refund. Please notify me in writing of your decision to accept or reject the proposed refund so we can put this item to rest for you and me. I am truly sorry for the over -collection. However, the responsibility or irresponsibility lays not only with the City but must be shared by your plumber and, ultimately, by you for not notifying the City of the plumbing system changes within your facility. Thank you for your patience during this investigation period. Respectfully, Clarence W. Krepps City Manager CWK/ksk SYKES' Grocery and MarLet SECOND STREET AND SECOND AVENUE WEST PHONE 756-4304 P. O. BOX 277 KALISPELL. MONTANA 59901 `2 ;, �' 7/ STATEMENT SYKES' GROCERY & MARKET 202 SECOND AVE. W. — KALISPELL, MT 59903-0277 P.O. Box 277 — Phone 257-4304 -----------19___ � � S � 9 / a S � S D