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Agenda 06/12/2012 Item #16C4Proposed Agenda Changes Board of County Commissioners Meeting June 12, 2012 Move Item 16A16 to Item 11G: Recommendation to accept staffs progress report for locating a potential All Terrain Vehicle (ATV) site and that the Board adopt the proposed Resolution establishing the Collier County ATV Park Ad Hoc Committee, which Resolution also appoints the initial members to this Committee. (Commissioner Hiller's request) Move Item 16A24 to Item 11H: Recommendation to award Invitation to Bid (ITB) 12 -5906: Five Year Cost Benefit Analysis of the Ave Maria SRA (Stewardship Receiving Area) to Munilytics for a cost of $15,560. (Commissioner Hiller's request) Move Item 16C4 to Item 11I: Recommendation to accept the Water System Audit Progress Report and to approve adjustments to specific water /sewer accounts to correct previously billed water /sewer charges. (Commissioner Hiller's request) Move Item 16F8 to Item 11F: Recommendation to authorize the County Manager to reorganize certain functions within the County Manager's Agency to align strategic goals, optimize resources, and combine expertise under a balanced organizational structure. (Commissioner Hiller's request) Move Item 16G1 to Item 14A1: Recommendation that the Board of County Commissioners, acting in its official capacity as the Airport Authority, award Bid No. 12 -5822 USDA Immokalee Building Build Out in the amount of Two Hundred Ninety Six Thousand Ninety-Nine Dollars ($296,099) to One Source Construction Company & Builders, Inc., pending USDA approval. (Commissioner Hiller's request) Move Item 16G2 to Item 14A2: Recommendation to approve the conveyance of an Easement to Lee County Electric Cooperative for providing electric service to the Turbo Services Inc. leased site at the Immokalee Regional Airport located at 190 Airpark Boulevard, Immokalee at a cost not to exceed $27. (Commissioner Hiller's request) Move Item 16K2 to Item 12A: Recommendation to authorize an increase in the purchase order for Carlton Fields, P.A., in the case of Collier County v. John Reynolds & Sons, Inc., et al., Case No. 10- 6658 -CA (South Reverse Osmosis Raw Water Wellfield Pipeline Project No. 70030) (Fiscal Impact an additional $200,000). (Commissioner Hiller's request) Note: Item IOC: Resolution has been revised to more clearly state that the straw ballot will be presented solely to the voters within the boundaries of the proposed Immokalee Area Master Plan. Copies of the revised Resolution have been supplied to Commission members. Time Certain Items: 6/12/2012 Item 16.C.4. EXECUTIVE SUMMARY Recommendation to accept the Water System Audit Progress Report and to approve adjustments to specific water /sewer accounts to correct previously billed water /sewer charges. OBJECTIVE: Provide a progress report of the Water System Plan of Audit and to obtain guidance to make adjustments to specific water /sewer accounts to correct previously billed water /sewer charges. CONSIDERATIONS: In support of the County's 10 -year Strategic Plan, the Public Utilities Division implemented an annual audit program of key business processes and systems to improve asset visibility and internal controls. In August 2011, the Collier County Water -Sewer District (CCWSD) began Item II of the audit, a self - initiated, three -part audit program to fully assess all meters used for billing water usage. The three parts of the audit include - Part A — Meter Size Field Verification and Billing System Confirmation Part B — Meter Accuracy QA /QC Assessment Part C — Fire Assembly Assessment (to follow Parts A and B) The progress report dated May 17, 2012, is included in the agenda package (Attachment 1). Part A Overview Part A establishes a 10 -year audit cycle to verify the size of installed meters and to confirm the correct meter size is in the utility billing system database. A third parry consultant (TetraTech) was placed under contract to establish an audit process and to provide audit criteria using a random selection of ten percent of the system's meters. The Part A audit goals are to • audit the size of each meter in the field, • ensure each meter's assembly components are properly matched, and • ensure the meter size identified in the field is the same size in the utility billing system. There are 53,409 meters installed in the field; 53,084 (99.4 %) have been field verified to date, indicating substantial completion of this phase of the audit. Of those verified, 53,057 have matching components, and have had an initial site visit to complete the necessary data collection. There were 27 meters out of the 53,084 verified that did not have matching components. Those were changed out and the customers notified. To date, Utility Billing has confirmed that the size of the meter in the billing system matches the field verified meter size for 52,895 of the 53,084 meters audited (99.6 %). Packet Page -1672- Part A a. b. c. d. % Complete Field Audit Meter Size Field Audit Component Consistency % Field Audit Consistency UBCS Confirmed Meter Size 99.4% 53084 53057 99.9% 52895 e. UBCS Credit Adjustments ($000's) $23 Total Meters in the System To Be Audited 53409 Packet Page -1672- 6/12/2012 Item 16.C.4. Part B Overview Part B establishes a 10 -year audit program to determine installed meter accuracy. A third party consultant (TetraTech) was placed under contract to establish an audit process that could be readily validated. The goals of this audit element are to • establish criteria to evaluate the system's accuracy, • establish that field verified information flows into the billing system to ensure billing accuracy, • provide specific recommendations for improvements or expansions to current practices, and • define a program for continuous testing and evaluation. A total of 5,139 meters, sized three- quarter to one - and -a -half inch, were randomly selected by TetraTech. To date, 3,468 (67.5 %) of those meters have been tested; 3,461 (99.8°/x) tested accurately. Undercharges for the meters that were under - reading were not back - billed as is the current practice, subject to Board confirmation. The slow meters were replaced and the customers were notified. There is no fiscal impact to date as a result of this audit element. A total of 146 two -inch meters were randomly selected as part of the accuracy audit. As Part B of the audit progressed, accuracy issues arose with respect to two -inch meters that primarily service multi - family residential and commercial properties. Early indications prompted the CCWSD to complete an expedited audit of all two -inch meters. As a result, Item II Part B.1 was established to focus on an assessment of all (100 %) two -inch meters installed. Part B.1 Overview There are currently 1,698 two -inch meters installed system wide. To date, 1,688 (99.4 %) have been field tested. This audit is substantially complete. Using the AWWA guidelines for meter accuracy, 1,250 (74.1 %) meters passed the field accuracy audit, leaving 438 (25.9 %) of the two - inch meters tested that did not meet AWWA guidelines for meter accuracy. All 438 meters have been replaced. The inaccuracies resulted in under - charges and over - charges to customer accounts (164 meters were under reading and 274 meters were over reading the volume of water passing through the meter). With direct reference to Item II Part B.1, the audit of two -inch meters, staff recommends no charges be applied to customer accounts that were under billed. Further, staff recommends that credits be applied to customer accounts that were over charged, with the credits calculated back four years in accordance with the Florida Statute of Limitations. This is consistent with the process followed for reclaimed water customers who received credits as a result of Item I of the Public Utilities Plan of Audit. Packet Page -1673- Part B a. b. c. d. % Complete Field Audit Meters Tested Meters Passing Field Audit % of Tested Meters Passing UBCS Credit Adjustments ($000's) 67.5% 3468 3461 99.8% $0 Total Meters in Audit Cycle 5139 A total of 146 two -inch meters were randomly selected as part of the accuracy audit. As Part B of the audit progressed, accuracy issues arose with respect to two -inch meters that primarily service multi - family residential and commercial properties. Early indications prompted the CCWSD to complete an expedited audit of all two -inch meters. As a result, Item II Part B.1 was established to focus on an assessment of all (100 %) two -inch meters installed. Part B.1 Overview There are currently 1,698 two -inch meters installed system wide. To date, 1,688 (99.4 %) have been field tested. This audit is substantially complete. Using the AWWA guidelines for meter accuracy, 1,250 (74.1 %) meters passed the field accuracy audit, leaving 438 (25.9 %) of the two - inch meters tested that did not meet AWWA guidelines for meter accuracy. All 438 meters have been replaced. The inaccuracies resulted in under - charges and over - charges to customer accounts (164 meters were under reading and 274 meters were over reading the volume of water passing through the meter). With direct reference to Item II Part B.1, the audit of two -inch meters, staff recommends no charges be applied to customer accounts that were under billed. Further, staff recommends that credits be applied to customer accounts that were over charged, with the credits calculated back four years in accordance with the Florida Statute of Limitations. This is consistent with the process followed for reclaimed water customers who received credits as a result of Item I of the Public Utilities Plan of Audit. Packet Page -1673- 6/12/2012 Item 16.C.4. Part B.1 % Complete a. Field Audit Meters Tested b. Meters Passing Field Audit c. % of Tested Meters Passing d. UBCS Credit Adjustments ($000's) 99.4% 1688 1250 74.1% $1,842 Total 2" Meters to be Audited 1698 Attached is the CCWSD administrative procedure for debit and or credit adjustments to customer accounts where an unforeseen situation has arisen, or where there was an error or omission by the CCWSD (Attachment 2), in accordance with the Uniform Billing, Operating and Regulatory Standards Ordinance number 2001 -73, as amended, Section 1.3 G. As appropriate, proposed changes to these procedures will be reviewed with the Productivity Committee. Moving forward, internal Quality Assurance /Quality Controls have been established in a ten -year audit cycle of all system meters. Lessons learned as a result of the audit have been incorporated into daily business processes and practices (Attachment 3). Staff, in coordination with the County Attorney and special legal counsel, will continue to research potential third party liability issues. Staff will engage the Development Services Advisory Committee (DSAC) utility standards sub - committee regarding future proposed meter infrastructure modifications. LEGAL CONSIDERATIONS: This item is legally sufficient and requires a majority vote - JBW FISCAL IMPACT: If the Board of County Commissioners approves staff s recommendation to apply credits to customer accounts that were overbilled, the CCWSD Operating Fund (408) will incur revenue reduction of approximately $1,865,000 (results to date) in FY2012. This reduction will have no adverse impact on operations. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this item. RECOMMENDATION: That the Board of County Commissioners, as Ex- officio the Governing Board of the Collier County Water -Sewer District, a) accept the Water System Audit Progress Report, b) approve making adjustments to specific water -sewer accounts to correct previously billed water /sewer charges, and c) endorse current business practices (reference Attachment 2) for billing charges and applying credits consistent with the four year Statute of Limitations. PREPARED BY: Joseph G. Bellone, Manager, Utility Billing and Customer Service Attachments Attachment 1 — Progress Report dated May 17, 2012 Attachment 2 — Customer Account Adjustments Procedure Attachment 3 — Lessons Learned Packet Page -1674- 6/12/2012 Item 16.C.4. COLLIER COUNTY Board of County Commissioners Item Number: 16.C.4. Item Summary: Recommendation to accept the Water System Audit Progress Report and to approve adjustments to specific water /sewer accounts to correct previously billed water /sewer charges. Meeting Date: 6/12/2012 Prepared By Name: BrockMaryJo Title: Executive Secretary to County Manager, CMO 6/6/2012 7:15:11 AM Submitted by Title: Executive Secretary to County Manager, CMO Name: BrockMaryJo 6/6/2012 7:15:12 AM Approved By Name: YilmazGeorge Title: Director - Wastewater,Wastewater Date: 6/6/2012 7:42:11 AM Name: KlatzkowJeff Title: County Attorney Date: 6/6/2012 8:02:47 AM Name: SheffieldMichael Title: Manager- Business Operations, CMO Date: 6/6/2012 8:21:46 AM Packet Page -1675- 6/12/2012 Item 16.C.4. ATTACHMENT 1 Cale er Courety PUBLIC UTILITIES DIVISION PLAN OF AUDIT ITEM II: POTABLE WATER SYSTEM May 17, 2012 Background In support of the Board of County Commissioner's 10 -year Strategic Plan, the Public Utilities Division implemented an annual audit program of key business processes and systems designed to improve asset visibility and internal controls. Utility infrastructure audits are underway for quality assurance and quality control (QA /'QC) of services provided and billed. The Plan of Audit established five areas of audit, each designated as an Item, as follows: Item I - Reclaimed Water System Item II - Potable Water System Item III - Water /Sewer Impact Fees Item IV - GIS Based - Water /Sewer System Item V - Duplication of Effort/Pollution Control In August 2011, the Collier County Water -Sewer District began implementing the audit of Item II - Potable Water System as a part of a proactive multi- faceted three part meter audit program (Program) of all billing meters. To maintain visibility of the progress of this Program, a weekly status report is provided to the Public Utilities Division Administrator. The Item II audit was set up as a three part program in order to fully assess the water meters used for billing water usage. The three parts of the audit are: Part A - Meter Size Field Verification Part B - Meter Accuracy QA /QC. Assessment and Audit Part C - Fire Assembly Assessment Program Overview The Program is divided into three parts, with multiple tasks in each. PART A establishes a 10 -year audit cycle that verifies the size of meters installed in the field and a confirmation process that the correct meter size is entered into the utility billing system database. A third party consultant was placed under contract to set up a process of audit and provide audit criteria using a random selection of 10 percent of the system's meters [TetraTech, Project No. 200- 08486 - 11007]. The goals of this audit are to: • Audit the size of each meter lin the field. • Ensure each meter's assembly components are all the same size. • Ensure that the size of the meter in the field is the same size as that listed in the Utility Billing and Customer Service Department's Billing System. PART B establishes a 10 -year audit process that determines the accuracy of the installed meters. A third party consultant was placed under contract to set up a process of audit that could be readily validated [TetraTech, Project No. 200 - 08486 - 11007]. The goals include: • Establish criteria to evaluate the system's accuracy. • Utilize county- obtained field test data and billing workflows to determine the system's accuracy. • Provide specific recommendations for improvements or expansions to the county's current practices. • Define a program for continuous testing and evaluation. As the audit progressed to Item 11- Part B of the Program, the utility became aware of a usage measurement issue with certain 2" meters. The audit identified meters that were reading water usage between 36% and 47% higher than actual usage; the audit has also identified meters that were reading water usage between 10% and 100% lower than actual usage. It was determined that an expedited audit of 2" meters was necessary, and is separated below as Part B.I. Staff is working to determine the reason for the inaccurate meter readings. The County Attorney's Office is part of the Audit Team to determine any third party liability issues as the audit progresses. As staff determines that meters need to be replaced, the inaccurately- reading meters are removed and replaced with a new meter, and the customer is notified. A recommendation on policy related to adjustments to the affected customers will be brought to the Board of County Commissioners for review and approval. PART C will establish a 5 -year audit cycle that will assess fire service assemblies. This part will follow the completion of PARTS A and B. Packet Page -1676- PART A: Meter Size Field Verification 10 -year Audit Cycle % Complete a. Field Audit Meter Size b. Field Audit Component Consistency c. % Field Audit Consistency d. UBCS Confirmed Meter Size e. UBCS Credit Adjustments ($ in 3000's) 6/12/2012 Item 16.C.4. ATTACHMENT 1 Total Meters in the System To Be Audited 53409 Completed In Process Current Status: (a.) Of the 53409 meters, 53084 have been audited for meter size (99 %, to date). (b.) 53057 meters have been field verified with matching components and had an initial site visit to complete the necessary data collection. A total of 27 meters out of 53084 had components that were not matched, to date. These meters have been changed out and customers notified via letter from UBCS. (c.) UBCS has confirmed 52895 of the meters in the utility billing system match the field audited 53084 meters (99.6 %, to date). (e) $23,055 credit has been calculated to date. PART B: Meter Accuracy QA /QC Assessment and Audit of 3/4" to 1 -1/2 " Meters 10 -year Audit Cycle % Complete a. Field Audit Meters Tested b. Meters Passing Field Audit c. % of Tested Meters Passing d. UBCS Credit Adjustments ($ in 1000's) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 1Year10 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 99% 10% 30% 10% 30% 10% 30% 10.1 10% 10% 10% 53084 53057 99.9% 52895 $23 Total Meters in the System To Be Audited 53409 Completed In Process Current Status: (a.) Of the 53409 meters, 53084 have been audited for meter size (99 %, to date). (b.) 53057 meters have been field verified with matching components and had an initial site visit to complete the necessary data collection. A total of 27 meters out of 53084 had components that were not matched, to date. These meters have been changed out and customers notified via letter from UBCS. (c.) UBCS has confirmed 52895 of the meters in the utility billing system match the field audited 53084 meters (99.6 %, to date). (e) $23,055 credit has been calculated to date. PART B: Meter Accuracy QA /QC Assessment and Audit of 3/4" to 1 -1/2 " Meters 10 -year Audit Cycle % Complete a. Field Audit Meters Tested b. Meters Passing Field Audit c. % of Tested Meters Passing d. UBCS Credit Adjustments ($ in 1000's) Total Meters in Audit Cycle 5139 Completed In Process Current Status: (a.) Of the 5139 meters (sized 3/4" to 1.5"). randomly selected by the independent consultant Tetra Tech, 3468 have been tested, resulting in 67% of the selected meters, to date. (b.) 3461 of the meters tested accurately, to date. (c.) Undercharges for the six meters reading slow; continue current practice, subject to board confirmation. (d.) One meter overreading has been sent to the independent testing firm. PART B.1: Meter Accuracy QA /QC Assessment and Audit of 2" Meters 10 -year Audit Cycle % Complete a. Field Audit Meters Tested b. Meters Passing Field Audit c. % of Tested Meters Passing d. UBCS Credit Adjustments ($ in 3000's) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 JYear10 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 67% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 3468 3461 99.8% $0 Total Meters in Audit Cycle 5139 Completed In Process Current Status: (a.) Of the 5139 meters (sized 3/4" to 1.5"). randomly selected by the independent consultant Tetra Tech, 3468 have been tested, resulting in 67% of the selected meters, to date. (b.) 3461 of the meters tested accurately, to date. (c.) Undercharges for the six meters reading slow; continue current practice, subject to board confirmation. (d.) One meter overreading has been sent to the independent testing firm. PART B.1: Meter Accuracy QA /QC Assessment and Audit of 2" Meters 10 -year Audit Cycle % Complete a. Field Audit Meters Tested b. Meters Passing Field Audit c. % of Tested Meters Passing d. UBCS Credit Adjustments ($ in 3000's) Total 2" Meters to be Audited 1698 Completed In Process Current Status: (a.) Of the 1698 meters, 1688 have been audited for meter accuracy (99 %, to date). (b.) Of the meters audited, 1,250 tested accurately, 438 meters (1688 -1250) failed. (c.) $1,842,449 is the 4 year overcharge calculation completed to date, representing 274 of the overreading meters. Undercharges for the 164 meters reading slow; continue current practice for undercharges, subject to Board confirmation. CERTIFICATION: 1 have reviewed the meter Audit Progress report as of May 17 , 2012. Based on my review the PUD Plan of Audit, the Meter Audit Item 11 including Part A, B, and B.1 continues to progress within the established testing protocols. Andrew T. Woodcock, PE, MBA Pm "' ><r .. _ _tf" x i 05 �2 3s, "L www.tetr.tech.com Packet Page -1677- Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 JYear10 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 99%100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 1688 1250 74.1% $1,842 Total 2" Meters to be Audited 1698 Completed In Process Current Status: (a.) Of the 1698 meters, 1688 have been audited for meter accuracy (99 %, to date). (b.) Of the meters audited, 1,250 tested accurately, 438 meters (1688 -1250) failed. (c.) $1,842,449 is the 4 year overcharge calculation completed to date, representing 274 of the overreading meters. Undercharges for the 164 meters reading slow; continue current practice for undercharges, subject to Board confirmation. CERTIFICATION: 1 have reviewed the meter Audit Progress report as of May 17 , 2012. Based on my review the PUD Plan of Audit, the Meter Audit Item 11 including Part A, B, and B.1 continues to progress within the established testing protocols. Andrew T. Woodcock, PE, MBA Pm "' ><r .. _ _tf" x i 05 �2 3s, "L www.tetr.tech.com Packet Page -1677- 6/12/2012 Item 16.C.4. ATTACHMENT 2 - CCWSD CUSTOMER ACCOUNT ADJUSTMENTS PROCEDURES COLLIER COUNTY WATER -SEWER DISTRICT A) ADMINISTRATIVE PROCEDURE FOR DEBIT OR CREDIT ADJUSTMENT OF CUSTOMER ACCOUNTS FOR UNFORSEEN SITUATIONS, ERRORS AND OMISSIONS ,l,',e The purpose of this Collier County Water -Sewer District (CCWSD) procedure is to provide a debit or credit adjustment to the water and/or sewer account of a customer where an unforeseen situation has arisen or an error or omission by CCWSD has been identified. The situation will likely have occurred as a result of meters or devices that are part of a customer's water service system being incorrectly installed, not assigned to the customer account, the provided service being incorrectly identified on the account, or the incorrect rate code being applied to the account. CONDITIONS Situations may arise whereby CCWSD services have been provided to a property without appropriate charges and fees being applied to the customer account. Furthermore these services may have been provided to the property through one or more changes of ownership of the property. It is the customer's responsibility to promptly discover services that are being received but not being billed. There is no obligation for the CCWSD to adjust accounts when the water and/or sewer services have been metered and charged properly. Also, fixtures or devices may have been installed incorrectly or have malfunctioned. It is the CCWSD's desire to make prompt reimbursement for the unusual circumstance by fair apportionment of the cost of the billing charges resulting from the stated conditions. Similarly it is the CCWSD's responsibility to recover costs for services that have been provided but not correctly billed. The Water -Sewer District is self - supporting through the customer fees received monthly for the services provided. By virtue of the Special Act that created the District, Section 17 states: Free water and sewer services prohibited. - No free water or sewer service shall be rendered by the District and no discrimination shall exist in the fees, rates, and charges for users of the same class. Under the Florida Statute of Limitations, we have an obligation to all customers of the Water - Sewer District to recover all back charges owed for up to four years. CUSTOMER RESPONSIBILITY Should a customer discover that an unforeseen situation, error or omission has occurred affecting their account, it is the customer's responsibility to contact Customer Service to report the matter as soon as practicable. Effective Date: June 12, 2012 Packet Page -1678- 6/12/2012 Item 16.C.4. ATTACHMENT 2 - CCWSD CUSTOMER ACCOUNT ADJUSTMENTS PROCEDURES ADJUSTMENT PROCEDURE 1. Upon discovery by CCWSD staff or notification of the situation, error or omission, a customer service representative or billing team member will evaluate the circumstances and prepare an initial adjustment proposal. 2. The representative's supervisor will review the adjustment proposal. The supervisor will send any adjustment proposals for review, as appropriate. [See authority levels at the end of this document] 3. The approved adjustment proposal will be passed to the accounting team for calculation. 4. Using the following guidelines, the accounting team member will calculate the adjustment. GENERAL INSTRUCTIONS A. Any debit or credit adjustment will reflect a fair assessment of any services not received or services used where inadequate notification or awareness was afforded to the customer. B- Calculation of any adjustment will be made by the accounting team on a form provided and shall include a complete and adequate description of the problem and justification for the adjustment. The. L�tiPS Division io�a -en her- designee, FFffist appfeve�any-adjustmei4 C. Proposed adjustments will be reviewed and approved or denied bye Customer- Sefviee Manager- in accordance with the table of authorities contained within before any adjustment is made to the customer's account. D. Proposed adjustments in e3ioess of $2,500.00 will be feviewed and appfeved or- deaied-4y E. All adjustments Tequir-e —up—to twe— appfevals— depending -oft the f,eY4.,,.pf& ,.,, F. Once the adjustment has been made to the customer's account, the customer will be notified by a customer service representative via telephone and the adjustment with explanatory notes will be included on the next utility bill. IMPLEMENTATION The Public Utilities Division Administrator, or his or her designee, shall be responsible for implementation and interpretation of this procedure and is authorized to exercise the applicability of this procedure in the various circumstances involving unforeseen situations, errors, and omissions, in accordance with the Uniform Billing, Operating, and Regulry Standards Ordinance 2001 -73, as amended, Section 1.3 G. Effective Date: June 12, 2012 Packet Page -1679- 6/12/2012 Item 16.C.4. ATTACHMENT 2 - CCWSD CUSTOMER ACCOUNT ADJUSTMENTS PROCEDURES COLLIER COUNTY WATER -SEWER DISTRICT B) ADMINISTRATIVE PROCEDURE FOR ADJUSTMENT OF CUSTOMER ACCOUNTS FOR EMERGENCY SITUATIONS INVOLVING LOSS OF METERED WATER PURPOSE The purpose of this Collier County Water -Sewer District (CCWSD) procedure is to provide a credit adjustment to the water and/or sewer account of a customer who has experienced an emergency situation involving the loss of metered water. The excess water metered will have occurred as a result of conditions beyond normal and reasonable control of the customer or other parties responsible for the use, care and maintenance of fixtures and devices that are a part of the customer's water service system. CONDITIONS It is the customer's responsibility to promptly discover and stop the loss of water on the customer's side of the meter. In addition, the customer is responsible for making arrangements to repair or have repaired the fixture or device causing the water loss. There is no obligation for the CCWSD to adjust accounts when the water has been metered properly. It is the CCWSD's desire to encourage customers to make prompt and permanent repairs and to show consideration for the unusual circumstance by sharing the cost of the billing charges resulting from the stated conditions. Where the loss is believed to have been taken without the permission of the customer, however, it is the customer's responsibility to report to the local law enforcement office and no credit will be made. CUSTOMER RESPONSIBILITY 1. The customer must provide information describing the emergency situation or circumstances that resulted in the loss of water within 30 days of the disputed utility bill invoice date. The information required includes the date the problem was discovered, what action was taken to stop the loss of water, and the arrangements made for repairs. 2. The customer must provide a copy of the plumber's bill or receipts for materials purchased if the customer made the repair him/herself. These documents are needed to support the condition that the repair is a quality job of a permanent nature. ADJUSTMENT PROCEDURE 1. Within 30 days of receipt of the customer's plumber's bill, or receipts for materials purchased, or confirmation on the field work order of a leak on the customer side together with written confirmation from the customer that the leak has been repaired, a customer service representative will complete an evaluation of the circumstances surrounding the water loss. Effective Date: June 12, 2012 Packet Page -1680- 6/12/2012 Item 16.C.4. ATTACHMENT 2 - CCWSD CUSTOMER ACCOUNT ADJUSTMENTS PROCEDURES 2. The customer service supervisor will review the evaluation and determine whether an adjustment is appropriate. If an adjustment is approved then the customer service supervisor will request the accounting team to provide the adjustment calculation. 3. Upon completion, the calculation will be passed for review then and approval before it is forwarded to the billing team for application of the adjustment to the customer account. Explanatory notes will be included on the next bill, or a letter explaining the adjustment will be forwarded to the customer. 4. Using the following guidelines, the accounting team will calculate the adjustment. The adjustment shall be 50% of the amount in excess of the previous twelve (12) months average billings for water volume charges for the first bill involving the loss of metered water, and 100% of the amount in excess of the previous twelve (12) months average billings for wastewater volume charges, for the first bill involving the loss of metered water and subsequent bills until the leak is repaired, for the following conditions or similar situations where the water has not returned to the sewer system: • Burst pipes or underground leaks • Irrigation system leaks • Faulty water heaters or pressure reducing valves, and • Faulty pool auto fill devices and pool leaks Where aproperty owner accidently leaves a hose running, or has a similar incident that is not the consequence of a leak or fault, 100% of any sewer charges over the previous 12 months average Awl billings will be credited. Where the previous 12 months includes one or more months of higher disputed consumption, this should not be included in the average calculation as this would unfairly distort the average. In this situation include months beyond the twelfth month to offset the high consumption months. In no instance will the total credit adjustment of 50% of the amount in excess of average billings for water volume charge exceed $250.00. Where new sod has been laid or new landscaping planted, and we have invoiced confirmation of the purchase, 100% of the amount in excess of the previous twelve (12) months average billings for wastewater volume charges, can be credited for each consecutive month of the additional watering, for a period of 30 days from the planting. NOTE: The maximum wastewater volumetric charge for individually metered residential property shall be 15,000 gallons per month. In the event of an unusually high water consumption resulting from a leaky toilet or other internal plumbing fixture where the water did return to the sewer system, a sewer consumption credit of 50% of the amount in excess of the previous twelve (12) months average billings for waste water volume charges will apply. Effective Date: June 12, 2012 Packet Page -1681- 6/12/2012 Item 16.C.4. ATTACHMENT 2 - CCWSD CUSTOMER ACCOUNT ADJUSTMENTS PROCEDURES If a full twelve (12) month average is not available, because we do not have 12 reads, then for each month where we have no read, the average shall be established as follows: Residential, individually metered - ten thousand five hundred (10,500) gallons, rounded down to 10, defined as one (1) Equivalent Residential Connection (ERC) (equal to 350 gallons per day) per household times thirty (30), which is the number of days in a normal billing cycle. Residential, master metered — the adjustment will depend on where the water loss occurred. Wherever the loss point is identified the adjustment will be based on the number of units on the loss side. Generally the square footage of a unit should be available from the Property Appraiser, HOA, or Property Management Company. Number of Units (see table below) x ERC rate x 350 gallons /day x 30 days (rounded down) Unit size (s q. ft. ERC rate 0 to 750 0.33 751 to 1,500 0.67 1,501 or more 1.0 Commercial - the adjustment will depend on where the water loss occurred. Wherever the loss point is identified the adjustment will be based on the square foot of office or retail space affected on the loss side. Generally the square footage_ should be- available - from -the Property Appraiser, Engineer of Record, or Property Management Company. Offices: Number of square feet x 0.15 gallons 30 days (rounded down) Retail: Number of square feet x 0.1 gallons x 30 days (rounded down) GENERAL INSTRUCTIONS A. No water adjustment shall be made for any period beyond the initial billing period in which the excessive consumption was identified. Not more than one (1) adjustment for an excessive water bill caused by the same condition shall be made within a period of one (1) year per customer. B. The above calculations will be made by the accounting team on a form provided and shall include a complete and adequate description of the problem and justification for the adjustment. C. Review and approval will be in accordance with the table of authorities contained within. P. A proposed adjustment in e�Eeess of $250.00 will be r-eviewed and appr-eved or- denied b5 b •"d .-emit adjustment is .,..,, made to the o stemer�s_an..4 f E. In accordance with Utility Billing & Customer Service procedures, a copy of the form will be retained in the Billing Section for one month. F. Once the adjustment has been made to the customer's account, the customer will be notified by a customer service representative via telephone and the adjustment with explanatory notes will be included on the next utility bill. Effective Date: June 12, 2012 Packet Page -1682- 6/12/2012 Item 16.C.4. ATTACHMENT 2 - CCWSD CUSTOMER ACCOUNT ADJUSTMENTS PROCEDURES IMPLEMENTATION The Public Utilities Administrator, or his or her designee, shall be responsible for implementation and interpretation of this procedure and is authorized to exercise the applicability of this procedure in the various circumstances involving abnormal water usage or loss, in accordance with the Uniform Billing_, Operating, and Regulatory Standards Ordinance 2001 -73, as amended, Section 1.3 G. Utility Billing and Customer Service - Table of Authorities Operations Support PUD Administrator, or County Manager, or Adjustment Transaction Director, or designee* designee* designee* Balance Transfer - Full Balance up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Crossed Meter - Same Meter Size up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Duplicate Bill Fee or Penalty Credit up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Fire Meter Base Charge Credit up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Fixed Amount Credit up to $2,500 $2,501 -S10,000 $10,001 - $50,000 (1) Lock Fee, Move In Service Fee, Over Time Unlock Fee, Meter Pull Fee, Re -Read Fee, NSF Service up to $2,500 $2,501 -$10,000 $10,001_ - $50,000 (1) Charge Credit Balance Refund up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Move In/Move Out - Full Amount (USCS not up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) notified) Move In /Move Out - Prorated by the Number of up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Days Sewer Credit Only - All of the Sewer Charge up to $2,500 $2,501 410,000 $10,001 - $50,000 (1) Water -Sewer Penalty up to $2,500 $2,501 410,000 $10,001 - $50,000 (1) Residential Water Loss where the water does not up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) return to the sewer Residential Water Loss where the water does return up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) to the sewer Commercial Water Loss where the water does not up to $2,500 $2,501 410,000 $10,001 - $50,000 (1) return to the sewer Commercial Water Loss where the water does return up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) to the sewer Residential Sewer Only up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Commercial Sewer Only up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) Effluent Water Loss up to $2,500 $2,501 -$10,000 $10,001 - $50,000 (1) * Operatins Support Director, Administrator, and County Manager are additions to current practices (1) Adjustment amounts over $50,000 by Board action Effective Date: June 12, 2012 Packet Page -1683- 6/12/2012 Item 16.C.4. ATTACHMENT 3 Findings and Lessons Learned Procedural Changes to Business Processes and Practices Public Utilities Plan of Audit Audit findings revealed during Item II Parts A and B identified the following procedural changes to business processes and practices: I. Water Distribution a. Meter Audits should be conducted on the %" to 2" meters on a more frequent basis. New proactive meter audit program as outlined in the attached Executive Summary will require documented audit conducted of 10% of randomly selected meters annually, along; with the expedited meter program at 100% of 2" meters. b. Technology that allows testing of the meter in place at the customer's location with a MUN -1 meter testing device should be provided to all distribution staff members. Previously these devices and certification as competent staff members was limited to a few members of the meter maintenance team. Now all distribution crews have the devices and are certified to use these critical testing devices. c. More appropriate inventory data regarding manufacturer, date of install, size and type would allow for more relative tracking information in the future. This data will allow for a deeper segregation of assets, allowing for specific trending of accuracy over the life, producing a more accurate actual product life cycle. II. Utility Billing a. Develop a customized, comprehensive meter report in the billing system to identify, for each meter, the meter size, install date, the type of service (potable, potable irrigation, reclaimed, and fire) provided, the service location, and whether that location includes sewer service (in combination with Geographic Information System (GIS) data layers). b. Further enhance lagging indicators and add leading indicators moving forward with enhanced meters. c. Age of meters is not the only factor in determining the potential end of useful life of this crucial asset. New report created from the InHance billing system that quarterly provides a list of meters that have reached 80% of the Manufacturer's recommended maximum life cycle. Report will be reviewed for potential out of cycle meter testing and change out. III. Planning and Project Management a. A statistical sampling plan, as shown in Attachment 1, at a minimum 10 %, 10 -year cycle should be utilized. By sampling the meters in a more effective manner, and evaluating the data in more relative terms, a truer meter life could be determined, providing a more concise, predictive maintenance plan moving forward. b. Fully develop the GIS based asset management system for meters, including layers for water, wastewater, and reclaimed water and integrate with billing system GIS layers to identify discrepancies. Packet Page -1684-