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Home My WebLink AboutFIN-19-012 - Water Leak Adjustment PolicyREPORT TO:Community and Infrastructure Services Committee DATE OF MEETING:March 18, 2019 SUBMITTED BY:Saleh Saleh,Director of Revenue,519-741-2200 Ext 7346 PREPARED BY:Saleh Saleh,Director of Revenue,519-741-2200 Ext 7346 WARD (S) INVOLVED:ALL DATE OF REPORT:January 14, 2019 REPORT NO.:FIN-19-012 SUBJECT:Water Leak Adjustment Policy ___________________________________________________________________________ RECOMMENDATION: That the attached policy FIN-GRA-2014Water Leak Adjustment be approved. BACKGROUND: In response to customer feedback, staff are proposing that the City adopt a Water Leak Adjustment policy to allow Kitchener Utility residential customers limited financial relief for high water consumption due to leaks. Possible reasons for water leaks include malfunctioning toilets, water softeners, leaking taps inside or outside, reverse osmosis units, irrigation systems, and ruptured pipes on the also provide an incentive for the customer to fix any leaks thatmay have occurred. REPORT: The proposed policy is intendedto provide limited financial relief to residential customers who experience high consumption because of a water leak. This policy also supports water conservation as it encourages customers to fix leaks due to plumbing failures. Other municipalities have similar policies to provide financial relief and promote water conservation. As a courtesy,the City currently sends out letters to residents when meter reads indicate higher than normal consumption(approximately 2,250letterssent in 2018). In situations where the high consumption is deemed to be extreme,staff will also attempt to call the customer to advise them of a suspected leak. Customers are understandably frustrated and upset when they receive a high water bill. They also feel that the City has littlesympathy for the situation, as there is no offer to provide any relief from a high water bill. Staff spend a considerable amount of time dealing with customers without 8 - 1 having the ability to offer some relief. To increase customer satisfaction and internal efficiency, staff have developed a draft Water Leak Adjustment policy for consideration by Council. Although the policy provides some financial relief, it still holds the customer accountableand responsible to fix leaks in their home. The policy requires leaks to be repaired and a proof of repair to be submitted to qualify for a leak adjustment credit. This policy further allows a customer to appeal the recommended utility bill credit if they do not agree with the credit amount. Staff are also currently investigating options to detect water leaks quickly. These options include attaching aconsumption monitoringdevice to the water meter and reviewing the feasibility of automated meter reading (AMR) using the existing street lightinginfrastructure. In relation to AMR, staff are looking to leverage the work bythe Digital Kitchener Innovation Lab, whichincludes a series of design thinking exercises to clarify expectationsin order to maximize any opportunities that AMR can provide.The Innovation Labwill play a key role in creating a streetlight WiSun network, and create a number of tests to give deeper insight into this proposed technology and reduce lesser known, or potentially challenging aspects of this hardware, including (but not limited to): The type and amount of data that can be producedfrom these units. The reliability of the hardware, battery, radio and data in various scenarios. Testing for accuracy and reliability. Exploration of how the readings and data might be leveraged in more innovative or machine learning capacities. Identification of opportunities to improve the customer or staff experience though insight or efficiency. Staff will be bringing forward a report at a future date, whichwill provide an update on the work currently being undertaken and will identifypossible options for Council related to AMR. In the short-term, to provide some financial relieffrom high water leaks for customers, it is recommended that policy FIN-GRA-2014 Water Leak Adjustment be approved.Once approved, staff will start putting together a formal process to accept applications under this policy starting May 1, 2019. Further, it is expected that the policy would be in effect and applicable to customers who have experiencedleaks after January 1, 2019. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: tegic vision through the delivery of core service. 8 - 2 FINANCIAL IMPLICATIONS: It is anticipated that annual costs associated with this program will be approximately $50,000. The adjustments will be coveredwithin the water and sewer utility budgets based on actual costs incurred COMMUNITY ENGAGEMENT: INFORM council / committee meeting. The approved Water Leak Adjustmentpolicy will also be communicated to all customers through Kitchener Utilities website. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services 8 - 3 POLICY Policy No:FIN-GRA-2014 Approval Date:March 18, 2019 Policy Title:WATER LEAK ADJUSTMENT Reviewed Date:March 18, 2019 Policy Type:COUNCIL Next Review Date:March 18, 2024 Category:FinanceReviewed Date: Sub-Category:Grants, Rebates & Incentives Last Amended: Author:Director of Revenue Replaces: Dept/Div:Financial Services/Revenue Division Repealed: Replacedby: Related Policies, Procedures and/or Guidelines: FIN-19-012 1.POLICY PURPOSE: The purpose of this policy is to allow Kitchener Utilitresidential customers limited financial relief for high water consumption due to leaks. Possible reasons for water leaks include malfunctioning toilets, water softeners, leaking taps inside or outside, reverse osmosis units, irrigation systems, and an incentive for the customer to fix any leaksthatmay have occurred. 2.DEFINITIONS: -Properties classified as residential but not including properties with multiple units serviced by a house meter. Monthly -This equals an average of one- consumption for the subject propertydivided over 12 months. - average monthly consumption and greater than 18 cubic meters. 8 - 4 3.SCOPEAND ELIGIBILITY: a.Only residential water accounts qualify for adjustments under this policy. b.The high water leak adjustment must be requested within 90 days following the issue date of a high consumption bill. c. average monthly consumption and be greater than 18 cubic meters. The average monthly consumption will be calculated based on a one- consumptiondivided by 12 months. d.To receive the leak adjustment the customer must show proof of repair (example; repair invoice, statement of repair or receipt for parts) e.The application for consideration under this policy requires the following: i.A completed Leak Adjustment Request Form ii.Proof of repair as stated above in f.This policy does not apply to water usage due to filling apool or spa, irrigation system or other similar uses of water. g.A customer is only eligible for one leak adjustment per year and two leak adjustments over a 10-year timeframe per service address. h.The property cannot be vacant or unattended during the timeframe when the leak occurred. i.Water loss due to theft, vandalism, or construction damage is not eligible for an adjustment. 4.POLICY CONTENT: OBJECTIVES i.To facilitate an effective and efficient means to provide limited financial relief to ratepayers. ii.To encourage water conservation through timelyrepair of leaks. GOVERNING PRINCIPLES i.The City Treasurer may exercise discretion in furthering the objectives of this policy. ii.To outline a process, which will allow ratepayers to apply for limited financial relief for high water consumption. iii.At all times, the City should take reasonable care to respect and protect the interest of the customer as well as that of the City, including the rights to privacy and confidentiality. 8 - 5 MAXIMUM AMOUNT OF ADJUSTMENT 1.The billing adjustment is limited to a maximum of $1,000 and is calculated at maximum two-month period. 2.Any adjustment will be calculated using the ratesthat were in effect at the time of the high consumption. SAMPLE ADJUSTMENT CREDIT CALCULATION DISPUTE RESOLUTION PROCESS 1.If a customer does not qualify for an adjustment, they may file an appeal in writing to the City of Kitchener within 30 days of being notified of the decision. 2.To qualify for the dispute resolution process; a.The property must be residential. 8 - 6 b.The leak must have resulted in high consumption. c.The customer must have done due diligence (for example; inspection completed by a certified plumber) to repair the leak. 3.The Director of Revenue, the Director of Utilities and the Chief Financial Officer have the final say in resolving any appeals. A decision is to be provided in writing to the customer. 5.HISTORY OF POLICY CHANGES Administrative Updates No administrative history to date Formal Amendments 2019-04-01-As per Council resolution 8 - 7