COUNCIL ACTION FORM NEW BUSINESS ITEM NO. 4 MEETING DATE: SEPTEMBER 15, 2014 STAFF CONTACT: LAURA GOURLEY, FINANCE DIRECTOR Agenda Item: Consider passing an ordinance amending Title 13 Utilities, Chapter 13.10 Water Regulations, Section 13.10.010 Customers Keep Pipes in Repair of the Municipal Code of the City of Gardner, Kansas, 2008, and amending or repealing all ordinances or regulations not in conformity herewith. Department: Finance Background/Description of Item: As a follow-up to the August 18, 2014 Council meeting during which City Administrator Harrison- Lee informed the Governing Body that there were requests to review the City s ordinance disallowing utility bill adjustments for leaks, staff completed a comparison of area water providers policies pertaining to leaks; the document Water Leak Adjustment and Penalties is enclosed for the Governing Body s review. (See tab Water Leak Adjustment Policy Comparison and subsequent tabs Rural Water District No. 7, Water One, and City of Gardner for further documentation related to water leak adjustments). Currently, the City s Municipal Code specifically prohibits any adjustments to charges due to leaks. It reads: 13.10.010 Customers keep pipes in repair. Customers shall, at their own expense, keep the water lines and fixtures located within or upon their property in good repair and free from leaks. No claim shall be made against the City for damages caused by breakage or leakage of any valve or service line, nor will any adjustments to charges be made to any customer for water that has passed through the meter due to leaks or waste. For more than a decade, staff was operating under an administrative Utility Bill Adjustment policy that allowed a 50% leak adjustment with appropriate proof of excess usage being due to an undetectable leak, and that the leak had been repaired. When the administrative policy was discovered to be in conflict with the aforementioned section of the City Municipal Code, staff ceased adjusting for leaks. (See the first City of Gardner tab for the excerpt of the policy related to leaks; this is no longer used because it is in conflict with City Code) Staff believes the City s existing, administrative Utility Bill Adjustment policy is fair to both the City and customers in relieving the financial burden of undetected leaks, compares favorably with other water service providers (as shown in the enclosed Water Leak Adjustment and Penalties document), and recommends amending the City Municipal Code to allow for leak adjustments in accordance with the policy. Attached for the Governing Body s review is the proposed ordinance; it has been reviewed by City Attorney Denk.
Per the Mayor s additional request at the August 18 meeting, also included for the Governing Body s review in the enclosed Water Leak Adjustment and Penalties document is a comparison of area utility providers policies/practices related to penalty and reconnection fees assessed to delinquent utility accounts. (See Penalties tab for the comparison and subsequent tabs for further documentation related to penalties and reconnection fees). Staff Recommendation: Approve Ordinance No. amending Title 13 Utilities, Chapter 13.10 Water Regulations, Section 13.10.010 Customers Keep Pipes in Repair of the Municipal Code of the City of Gardner, Kansas, 2008, and amending or repealing all ordinances or regulations not in conformity herewith
ORDINANCE NO. AN ORDINANCE AMENDING TITLE 13 UTILITIES, CHAPTER 13.10 WATER REGULATIONS, SECTION 13.10.010 CUSTOMERS KEEP PIPES IN REPAIR OF THE MUNICIPAL CODE OF THE CITY OF GARDNER, KANSAS, 2008, AND AMENDING OR REPEALING ALL ORDINANCES OR REGULATIONS NOT IN CONFORMITY HEREWITH. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF GARDNER, KANSAS: SECTION ONE: Title 13 Utilities, Chapter 13.10 Water Regulations, Section 13.10.010 Customers keep pipes in repair is hereby amended to read as follows: 13.10.010 Customers keep pipes in repair. Customers shall, at their own expense, keep the water lines and fixtures located within or upon their property in good repair and free from leaks. No claim shall be made against the City for damages caused by breakage or leakage of any valve or service line. Any adjustments to customer charges for water that has passed through the meter due to leaks will be made in accordance with the Utility Bill Adjustment policy which has been adopted and may be amended administratively. SECTION TWO: All other ordinances not in conformity herewith are hereby repealed or amended to conform hereto. SECTION THREE: This ordinance shall take effect and be in force following its passage, approval and publication as provided by law. PASSED and APPROVED this 15th day of September, 2014. (SEAL) Attest: CITY OF GARDNER, KANSAS Chris Morrow, Mayor Jeanne Koontz, City Clerk