01-50 Resolution No . 01-50
RESOLUTION
ADOPTING A WATER SERVICE AND CONSUMPTION CREDITS POLICY
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that it hereby adopts a Water Service and Consumption
Credits Policy dated February 2001 as the City of Elgin' s policy
for extending water service credits and water consumption credits,
a copy of which is attached.
s/ Ed Schock
Ed Schock, Mayor
Presented: February 28 , 2001
Adopted: February 28 , 2001
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
•
City of Elgin
Water Service and Consumption Credits Policy
The water customer credits below have been established to assure that quality service is provided
and the expectations ofresidents and the businesses ofElgin are satisfied. Two types of credits have
been established: a service credit and a consumption credit. The service credit is associated with
the reasonable expectations of the customer to receive accurate,courteous and professional service.
The consumption credit may be the result of recorded consumption inconsistencies.
A thorough investigation of the water customer's history shall be made before any credit is
authorized. All credits will be issued as credits to the customer's account and consumption credits
are issued on a one-time basis.
Additionally,the water service credits and water consumption credits presented below are listed by
way of example. The Water Director or Fiscal Services Manager may also authorize other water
service credits or water consumption credits in an amount not to exceed 50%of the bill in question
(not withstanding examples below) when in the opinion of the Water Director or Fiscal Services
Manager such a credit is appropriate as a remedy to address unsatisfactory service provided by the
City regarding the furnishing of water service to a particular customer.
Service Credits, examples of, but not limited to the following:
A customer service credit in the amount of$50 may be provided for the following issues:
1) A service appointment missed by the City that is rescheduled for another day.
2) An AMR water meter installation which interrupts the customer's phone service and
is not corrected until the next day.
3) Bank draft error by the City ($50 or customer bank charge fees - whichever is
greater).
4) An improper water service shut-offby the City(e.g. the wrong address is shut-off or
the account is current).
•
Consumption Credits, examples of,but not limited to the following:
1) Lagging Remote Adjustment: When the outside remote register (used for billing)
reads less consumption than the actual water meter, a lagging remote condition
exists.
2) One-Time Spike in Water Consumption: Infrequently, the water meter may record
a one-time increase (spike) in customer consumption.
February `01
•
3) AMR Water Meter Correlation Error: This condition occurs when the AMR
electronic read does not equal the reading of the mechanical register on the AMR
meter.
4) Leak Notification:On rare occasions, a customer may not receive timely notification
of possible leak conditions.
Please see Appendix if additional information is desired on any of the above consumption credits.
In closing, the types of service and consumption credits listed above are examples of what may
occur. However,there may be other circumstances under which credits may be issued. The purpose
of this program is to empower City Staff to meet the customer service expectations as set forth by
the City Council.
February `01
•
APPENDIX
Lagging Remote Adjustment: When the outside remote register (used for billing) reads less
consumption than the actual water meter, a lagging remote condition exists. The customer is billed
for the higher consumption recorded on the actual inside water meter whether or not the bi-annual
inspection required by ordinance has been performed. A lagging remote consumption credit may
be issued if the bi-annual inspection has not been completed. The customer shall only be responsible
for the unpaid average bi-annual consumption.
Example:The outside register is recording 85 HCFT units less than the actual water
meter, which represents a$352 increase to the customer's water bill. The average
actual biannual water use of the customer is 250 HCFT (current actual read minus
the last actual inside meter read recorded). Over the past two years, the customer
has paid for 225 HCFT units of water. Therefore, the customer pays for 25 HCFT
of water to reach the biannual average (250 HCFT) and a credit is issued for the
remaining 60 HCFT ($249).
Note:The remote register is no longer used for billing purposes,actual inside reads
are required. Therefore,as inside reads are obtained and AMR meters installed,the
lagging remote issue will be phased out.
One-Time Spike in Water Consumption: Infrequently, the water meter may record a one-time
increase (spike) in customer consumption. When consumption before(previous 2 years)and after
(following two billing periods) the spike period are normal and the customer insists there were no
leaks or extra consumption' (gardens, new sod, etc.) a one-time consumption credit may be
authorized. A consumption credit of 50%of the bill(less the average bill) to a maximum of$100,
but not less than$25 may be issued.
AMR Water Meter Correlation Error:This condition occurs when the AMR electronic read does not
equal the reading of the mechanical register on the AMR meter. The correlation error can produce
a high or low bill for the customer. Large differences may be detected within one or two billing
periods. However, it may be several years before the error is discovered if the consumption
difference is close to the customer's normal consumption.When this condition exists,a consumption
credit equal to 50% of the bill up to a maximum of$250, but not less than$25 may be authorized.
Leak Notification:On rare occasions,a customer may not receive timely notification ofpossible leak
conditions. If the investigation reveals that the city should have responded sooner,depending upon
the customer's responsibilities to also act, a consumption credit up to 50% of the bill in question
(less than the average bill)may be authorized.
February`01
;.s.4 OF E4c.
City of Elgin Agenda Item No
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February 8 , 2001 1111
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TO Mayor and Members of the City Council " i 11$
/'� FINA NCCAL Ur'STABLE CITY GOVERNMENT C
FROM: Joyce A. Parker, City Manager EFFICIENTERV4:ES.
AND QUALIT Y INFRASTRUC T U N E
SUBJECT : Customer Service Credits
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with information to consider enhancing our
customer service initiatives through the issuance of customer
service credits .
BACKGROUND
The City has over 26, 000 water customers that we primarily bill on
a bi-monthly basis, producing over 160, 000 bills annually.
Additionally, there are over 10, 000 water customer contacts each
year that require a Water Department employee to be dispatched to
further investigate or follow through on a customer request (i . e.
meter read, check for leaks, exchange meters, etc . ) .
On occasion, there are unusual or extraordinary instances when
dealing with a customer a credit to their bill would be in order .
Currently, however, the only remedy that can be provided to a
customer is the leak adjustment .
For example, 1) if a service appointment is missed or delayed to
the next day; 2) a customer' s phone service is disrupted by an AMR
installation and is not corrected until the next day; 3) a remote
( located on the outside of the house) meter reads less than the
consumption on the actual (inside) meter and the customer is back
billed for the difference; 4 ) or when the AMR meter becomes
defective, causing a correlation error (e . g . transmitting one-tenth
of actual usage) . In cases such as these, where there is no fault
on the part of the customer, staff has no authority to adjust a
bill to make up for the service deficiency.
Customer Service Credits
February 8, 2001
Page 2
Although these types of occurrences are infrequent, they do occur,
and should be addressed within an approved ordinance framework to
better serve and respond to our customers' needs . Therefore, in
keeping with the City Council' s established goals to understand
. citizen expectations and to respond with a "Nordstrom" /"Ritz
Carlton" customer service attitude, the attached Water Service and
Consumption Credit Policy is presented in order to empower staff
with the ability to provide other water service credits when
warranted.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Customer Service Team representatives .
FINANCIAL IMPACT
)A-
It is difficult to estimate the exact dollar amount of credits that
may be issued. However, it is estimated that less than $5, 000
would be granted based upon the examples contained within the
policy, the dollar limitations, and infrequent occurrences that
require credit consideration. The annual budget for the Water Fund
totals over $16 million.A� IIC�II 'EGAL IMPACT
✓�r}
None .
ALTERNATIVES
1 . Approve the proposed Customer Service Credit policy.
2 . Modify the proposed Customer Service Credit policy.
3 . Do not approve the proposed Customer Service Credit policy.
RECOMMENDATION
It is recommended that the City Council approve the proposed
Customer Service Credit policy.
.R pectfully submitted,
a ( LA--
J■yce k . Parker
City Manager
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Attachment