Agenda - Council Work Session - 09/15/2003

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,al CITY COUNCIL WORK SESSION Topic Report: Underbilled Water/Sewer Commercial Accounts Due to Meter Input Error at Connexus Energy. P,v.' ~iana T,nnd. Financ, e f~fficer Background: It was recently discovered by our Water Utility Department that Connexus Energy had been incorrectly recording those commercial accounts that had a 10,000 water meter installed in their establishments and billing them based on the readout of a 1000 gallon water meter (your typical residential meter). For example, a 1000-meter has one permanent zero on the meter and a 10,000 has two. Connexus was billing all accounts as though they had one permanent zero. The Water Utility Department has documentation, that was sent to Connexus, stating which businesses had 10,000 meters. Based on the incorrect recording of a 10,000 meter, Commercial businesses were only being charged 1/10 of their actual usage. Businesses were charged only for 1,000 gallons for every 10,000 gallons actually used. It should be noted that some of the commercial accounts that have been under-billed date back to 1998. Not only is the water amount collected understated, but sewer is also understated as sewer rates are based on the amount of water going through the main water meter. A listing of commercial accounts that would be affected by the under-billing of water and sewer is attached. Connexus Energy has prepared this list and calculated the amounts owing. As you can see from the list, the amount owing is substantial. Recommendation: Based on discussion.