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.
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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 .
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Sewer ......., .rosy
T=SRI
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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
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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:
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(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
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