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95-79Council File # ` �+ _ t� RESOLUTION Green Sheet # 23600 CITY OF SAINT PAUL, MINNESOTA Presented By Re£erred To Committee: Date a� 1 2 3 4 5 6 7 8 9 10 11 � 13 14 15 16 17 18 19 � 21 22 �3 2r� 25 26 27 � 29 � 31 �L �3 34 35 36 37 � a"9 40 41 WHEREAS, The Board of Water Coinmissioners of the City of Saint Paul, through the Saint Paul Water Utility, issues combined invoices for Water Consumption Charges and Sanitary Sewer Charges; and WHER.EAS, The Board of Water Commissioners of the City of Saint Paul, did promulgate rules and regulations for rebating sanitary sewer charges (credits) for quantities of clear water diverted from the Sanitary Sewer System by enacting Resolution No. 3355, dated December 15, 1982; and WHEREAS, To eliminate confusion, this resolution defines "clear water" as metered water entering a particular property, which does not result in sanitary sewer use; and �4'HEREAS, The City Council of the City of Saint Paul, did approve the rules and regulations promulgated by the Board of Water Commissioners by enacting Council File 279633, dated December 30, 1982; and WxE�AS, The Board of Water Commissioners Resolution No. 3355 made it the responsibility of the Public Works Department to prepare an application form, review the applications and supporting documentation, and to determine what adjustment or refiznd should be made; and WHEREAS, Current City Policy is silent regarding the allowed credit application period, and current practice has been to grant credits up to six (6) years from the invoice date; and WxER�as, These credits are approximately one-third (1/3) of the gross Sanitary Sewer charges; and WHEREas, Sanitary sewer volumes and the resultant revenues have been difficult to predict due to water conservation; and WHER.Ens, The timely application for these credits is vital for proper evaluation of projected revenues and cash flow issues in the Sewer Service Enterprise Fund; and WHEREas, The City's current credit program produces a large unknown and possibly very old liability for clear water credits, which is not considered good accounting policy; and WHER�ns, Recording clear water credits within the annual accounting cycle would Page 1 of 3 qs-�9 . .. . . : y :� .w :� . .. .� :: �Y ' . :1 : v . : :� :: :v appropriately match revenues with associated credits; Now, therefore, be it E�soLVID, That the following changes to the rules and regulations governing Sanitary Sewer charge credits are hereby adopted and will become effective for all invoices issued on, before, or after January 1, 1995: 1. All applications for Sanitary Sewer chaxge credit for invoices issued prior to January 1, 1995 must be postmarked or received by the Public Works Department no later than December 31, 1995; and 2. All applications for Sanitary Sewer charge credit for invoices issued January 1, 1995 or thereafter must be postmarked or received by the Public Works Department no later than one (1) year after the billing date printed on the invoice for which a credit is sought; and 3. Exceptions to the items numbered 1 and 2 above will be very rare and available only in extraordinary circumstances, according to the following: a. If an applicant is unable to make application by the beyond the applicant's control, a written request for sent to: Public Works Director 600 City Hall Annex 25 West 4th Street St. Paul, MN 55102 deadline for reasons an exception must be b. Upon receipt of the written request for an exception, the Public Works Director will determine if variance from the one (1) year standard is warranted. For invoices issued prior to January 1, 1995, the written request for an exception to the one (1) year period must be postmarked or received no later than June 30, 1996. d. For invoices issued on or after January 1, 1995, written requests for exception will nat be reviewed if postmarked or received later than eighteen (18} months from the invoice date. 4. The Sewer Division of the Department of Public Works shall notify all Sanitary Sewer System customers, and all other potential clear water credit applicants, not later than one hundred twenty (120) days after the final adoption of this resolution, through all of the following methods: � � Publication of this action (in summary form) in the Saint Paul Legal Ledger; and A letter written and mailed to each Sanitary Sewer System customer who has applied for credit since January 1, 1990; and Page 2 of 3 95 - �19 . . .� .. ., . . ..; �t c Written notice included with the next combined waterJsewer invoice sent to each customer immediately following adoption. Page 3 of 3 Y�^- Requested by Department of: Public Works By: rp i� Adopted by Council: Adoption Certified by Form App oved by City Attorney By: approved by Mayor £or Submission to Council $Y�� ,� �,,;,,-. , ._ _ _ , � � �. D ARTMEZ�/OFFICER '"� �Publie Works 12/7/94 GREEN SHEET INITI AlE - EPARiMENTDIRECTOR rj ' fyY ATTORNEV �_ P/�aE$ � � ICi1P ALL LOCATIONS f-0R SIGNATUHE) ❑� SENIOR � No .23 00 '�g CIT'COIiNCIL . ._ " � CIiVCLEPoC ag FIN 8 MGT. SERVICES DIR. ❑� F'"'e M"�, — '� �DEPAR7MENTAC( 9y Approve Resoludon amending §77.05 of the Legislative Cale establishing a one (1) year application period for credit for water use which dces not result in Sanitary Sewer System use. RECOMMENDATbPS-Apqova py orRaje(2 (F� _ PLANNING COMMISSION _CML SEAVICE COMMISSION CIB COMMITfEE __ p STAFF _ D6TAICTCWNCIL _ SUPPoRTS WHICH COUNqL OBJECTNE? PERSONAL SEHVICE CONTRACTS tAl1.ST ANSWER THE FOLLOWING �UESTIONS: 1. Has rtiis perSONfirtn ever worked under a coMraci for this depatmien[? YES NO 2. Has ihis persorvfirm ever been a ciry empbyee? YES NO 3. Oces ihis persoNfirm possess a sltill not nortnally possessed by any curtent ciry employee? VES NO Explaio all yes ansvrers on separate sheet and attaeh to green sheet � INITIATNCa PFiOBLEM, ISSUE, OPPOR7UNIT' (WHO, WHAT, WHEN, WHERE, WH1�: - Sanitacy sewec volumes and [he resultant revenues have been difficult to predict due to water conservaaon and other variable factors. A large portion of the total gross Sanitary Sewer chazge is comprised of refundable amounts related to water that is used but does not result in �""'' Sanitary Sewer system use (approximately one-third of the gross Sanitary Sewer charges). Tfrnely applicaaon for these credits is vital for �� ,;, proper eval'uaflon of projected revenues and cash flow issues in the Sewer Service Enterprise Fund. Currenc City Policy is silent regarding the allowed credit application period, and ciurent pracdce has been to grant credits up to six years from the invoice date. This current pracdce -: produces a lazge unlrnown and old liabiliry for crediu, which is not good policy, and recording these crediu within the annual accoundng cycle worild appropriately match revenues with associated credits. ' ADVAM'AGES IF APPROVED: , , , . ';' = Sanitary Sewet Chazge cevenaes will be more predictable due to the recognidon of credits within one yeaz of receigt of the associated ��. ' revenue. �; `(Please see the attached Boazd of Water Commissioneis Resolnfion establishing the ability to obtain eredits, a�'�, o�ncil Resoluaon radfying the acdon of the Boazd of Water Commissioners.) JAN �� 1995 � . , . �� a� '�� DISADVANTAGES IF APPflOVEO: � �- Sam[ary Sewer system customers will notbe able ro abtain creditfor non-sanitary water use so far back in bme. �.; . �4��3�� 9'�4 '�i3#�' a,', JfNfN ,�k i ��7 t:. ,F.,.. __ � DISADVANTAGES.IFNOFAPPROVED: `- -- � ��_ , Uncertainry will remain in past revenues collected for Sanitary Sewer use. A liabiliry which should be placed on the financial statements of � the Sewer Service Enterprise Fond will e�cist, atthough there is no proven way to fairly estimate that liability. �� B i B�� gd � Revenues collected and credits paid will noc be appropriately matched �AN �3 1995 - ��$�"�� -,� TOTALAMWNf OFTRANSACTION S Il �Il COSTiREVENUE BIYDGETED iCIpCLE ONE) YES No WNDING SOUHCE FINANCIAL MWRMATION: (EXPLAINj f;r;' s' .; � , �ti, ACTIVIN NUMBER . �, �.. f �.\ _ :/ SAINT PAL'L LEGISLATIVE CODE 56R'E?S ?.ND DR2.LY5 vice shzl? be zccepced withoui indudina there- with the sewer service cnazge. (b) In cases of premises wnere water is not sun- plied by 'the ciiy, said w2te* boazd will rer.der, either monthly or ouarieriy, as may be most ex- pedizni, to th= owr.ers,l=ssees or occunanis oEsucn prooerty, oills `or the znount o[ sewe* service cnazges. In the event the biils ior =_zwer =ervice rendered for nr=mises whereon wa:er is not suo- plied by the ciiy ue not paid wichin thiry (30l days after the rendering thereof, sucn board oi waier commissioners snall certify ihe same to ihe county auditor oi the county in which such proo- eriy is siivated, and the same sha11 be collected and the collection thereof enforced in the same manner, in z11 respects, as county and state taxes, subject to like penalty, costs and interest cnazges. (c) Whenever a premises is szrved by both the boazd of water commissioners oE the City of Sainc Pau1 and private sources of suoply, sucn premiszs sha11 be treated as though the encire amounc Q[ water u=ed was furnisned by said board, and the coliection oi che sewer service chasge enfarced in the manner provided for colleccion oEs2wer rentals from premises served esclusively hy sucn wace: board. (d) Whenever such sewer service charge is re- quir2d o[ such premiszs for a neriod oF tir.ie 1e<s than ihe normal billing pernod for such type of premises, the sewer service chazge sha11 be pro- raced on a per diem basis; provided, howeve*, the minimum chazge for any such nroraced period shall be inree dollars tS3.00). (Code 1956, § 231.09) Sec. 77.04. Measuring water use. For the ourpose oi determining ihe cnazge 'to be readere3 prenises using the sewage system whereon the water Lsed is de*ived in whole or in part from sources indepeadent of the waier boazd, the wa'ter used thereon suppfied from privaie sources shail he measured by a wzter meiar in conformance with the Saint Paui Water Utility's Well Meter Specitic2tions; such meter shall be in- stalied and maintained by the owne* or occupant of said premises at his own cost and expense and shall be suoject to supervision and inspection by the water utiliiy. The sewer service chazge for Sepp. No. 16 °►5 � 7� § 77.01 sucn premises snzl be deEe:mined by the ouan- iiiy af wzEer mezsu;ed by the mecers en both public aad private water sepplies, according to the schedule of charges sei forch as provided herein. If the ow, e: oc occ�oanc fails io insiai? such n_2ter znd in c2ses wnere ihe waie* uti!iiy fir.ds chat ii is noi oractica6(e io zttzmcE to mea- sure waEe: mnsumed at 2ny nrooe*cy, the w2cer uiility shall, based on ooeracionei iniormation, es- timace the waie: auanticy in order to determire the sewe* service cnuges. (Cade 1950, § 231.04) Sec. i7.05. Regulaiions. The boazd of waier commissione:s shail have power to make and enforce such general r,�les and reo Iations, both as to public aad private wate: suoply, for the cotlection, rebaiing, reFundine or zdjustment oE sucn sewer service charges for zny - rezsor., including diversion oFwaier from the sewe* system as may be reasonabIy necessazy to avoid injustices, to the end that all prope*iy discnara ng sewag° into the sewer system �Yill bear its iair and equiczble or000riionate snaze wiih other pron- ercy, suojeci io the:ecommendation znd advice oF the deoartmeni oi oublic works and resolution of ihe city council regazding such rules, rea lations and adjusimencs. (Cade 1956, § 231A5) Sec. 77.06. Sewer service fvnd. The funds received ;rom the colIection ef tne sewzr szrvic= chazges provided in this cnapier =_ha11 be deposited wich the deoartment oE finaace znd manag=_ment serrices and shz11 be keot as a separate and distinct fund, and there is hereby estah&shed a fund to be known 2s "Sewer Service Fund." (Code 1956, § 231.061 Se�. 77.0'1• Serrce availability chazges. To comply wiih the metronolitzn wasie conirol commission's meEhod o[ chazging 1oca1 governing bodies for reserve czoaciiy chazges, the ciiy councii may, by resolution adopted following a public hearing and seven (7) days' published notice thereof, es'tabiish a service avzilabiliiy chazge to be colIected from aftected reai property located 8d7 ' , lr�,.�,.cc / „�✓A»iswENT }( fYO�i / • �/ ; � _.--- ':esrnted Sy Ref=_rrzd To C; Y�r�' o r� J.z i ti�r 1'.� t� L F�i� N0. �� y _Co%ncil ) : � C.�rtN-�, Resolz�tion r� � v l: ,+ c� 9s= �q Committee: Date Out oi Committee 3y Da[e ,2F'SOLVED, inat [he City Council, upoa che recor=endation or tne °uhlic `dorks ➢eozrta=_nc ioes hereoy aporove thz rulzs ar.d regulatioas proeul�ated 'oy the boarc of G:atei Co�issicne:s :o� se•.:zr szrvice char�e acjuscuents, a cooy oi said rules and�re�ulations to be r,.zin�ai^ed in _t;e off±ce of the Wacer Utility and ?ublic w'or'.:s Departa:ent. COUNCIL}tEN Yeas `{aps r,u�: �-Ye_ rnaeeox Mc"�ahon g+owaiix Tedrsco Wiizon ?,dopted hy Councit: v In Favor (/ Against Oate nFC 3 0 1982 CernE�r�'�� ed Council creeary f3 � �' �' m�z<�=�2�1 ��"`t'� . .1E��•r.n. d hc 1lavoc. Dace Requestgd by Departmeni of: Tc� • / � B <�� fu/� For:n Approved by C y.�LO��eY � / � �� . $Y � / / " �� ; i .� / Approved by i�ayo�Eo[ Su6mission to Council � gy. • �� j`/ � - �� — � ---- " GITY OF 57. PAUI No.��= i � �i 77 =`" OFE[CE OF THE 80ARD OE WATER COt�ItAiSSIONERS � f�%� ' RESOLUTION — GENERAL FORM q S• ;� ��esev��o sv t�icos;a o; Dece�oer 15. 1982 COMMISSfONcft � �� . �'t?�?.�35, Section 77.05 0£ Cne City of Saiat °aul tegislative Code gives tne Board of Siatet Conraissioners poc:er ro r.iak= and enzo*ce rules znd re�u'_at:ons fer tne collection, rebati^g, re-aneiag or aejust_ent of se�aer servicz ca�ro°s sabiect to�rzcocr..enc2tions and advicz oi " Puolic 4Tor.s and resoiation oi the City Cou^cil; and t`�e Denartuent o� r{E:rr�qg� _, �c�artcznt or Public I•�ori�s ias rzco�ended the rules a�d regulations listed below; �nd , �.�._ c� - +n:.R.._._S, The General "�.ag=_r ras reviea%z3 the recocrezd°d rules and -.egui2tioas; eeter- �iaec ta° sta=f o[ Che litil�ity czn carry out their responsi6ilities in reoard to tne activi- ties neeced by suca rules; deter-iazd that ai1 costs will be iaciuded in tne se�.%zr ser✓ice chato°s in 2ecorZ=_nce �«ich SecCion 77.02 oi tne Lesislative Code; and, r°cocL:.ends adoption by =ne �oard; r.oa, the:eiore, be it ?.�,SOLVc.D, T.^,at t?�e iolloaring ru1_s and r2gulations �overning seczr servicz cnarges are here- oy acopted and 6eco�e a`iective Januaiy 1, 1953:' 1. ?:ooerties icom <aiich auantities oc" water, diverted froc the sanitary se::er systecn, caa be efc=_ctivaly 3easured sha21 be elioible fer se�aer se:vic_ ac- just�.eats -n th= c�anner provided in these rules. a) �:`ien c2t°r�ined �racticaole oy t'r.e Peolic �:ort=s Dz�>rtnenC, zn aonroved volw:.atric r.eterin� dzvice snali oe uszd eo r_aasure Quantities pr vater lost to 2vaporation, diverted ir.to 2 stor,a secaer, use3 in a oroduct oz Por 1zwZ sprin.'..1iag, or ot::er ei- versions. �- b) 2"ne oc sna11 pay z11 costs involved in tce zuraisnir.�, instal- latioa, =nd ruainte.^.anc2 oi tne aiore...�entioaed u�_tering eevice. -. c) F!hen retering is i�orzcticaole, c:zter �iverted iroa t:�e sanitzry sewzr systeci cay be dete �ir,ed as a perczntage of Gater used for �roductioa or Sy other oneratioaal inforaation, ptovi�ed the Puolic Works D=p�rt�ent shoil approve the oasis o? n=asure�ent estd tne aethod oE czter�iniag snd reporting cuaatities. 2, T'ae Depart-ent oi Puolic :�.TOrks sha11 datereine tne reportzng daCa necessary to substentiate any clains for adjust�ent or reiunds, orepzre apoiication :oras and nal:z these avaiiable to the gene*a1 public. �VaEer Commissioners �dopted 6y the Board of �VaEer Commissione*s y Nays In iavor Oppose� ASST. 5£CY. °� w tM t0.56 , CfTY OE ST. PAUL N - 27 � ;;; - � OEFICc OF THE BOARD O�r WATER COMt�11S5fONERS RESOLUT(ON — GcNERAt FORM � S q 1 PR�ScNT£O BY DAT' COMMISSIONcR �G� �-[��i� , - Dd�fl —Z— . . . 3� �.�Dl ic�tior_s for sec%er service cnzrg_ adjust�eat or refund snall 6e eade oy tne oc..ier oi tne nroperty served, or o*.aer's aoent, on •_`or:as prov�cec ar.d filed ::ith tae Puoiic ?:"oz:s �°pzr��ent. '?"ne D2oart=ent 5(t211 '"-�iev _he a�nlicztion and sunportirg cocu�encatioa, aad d°_ter�ine cahat adjust �ent or rz=unn sna11 be =ade. [;. i[ie Public :�:or`-:s ➢e�artnznt sna11 notirY t"e aaolica; t ar.d tne GFater IItility of the ap?roved zount oi adjustn_at cr re�and, and th'_ Wat°r Utility sna11 zejust its recores zccordingly. In che evenc tne apoli- cant is not satis.`ied �aith tne C2C2?TL_i�Zt=ORp an dODE2I to the Eoard o� :�zter Coe�issioa=rs sha11 ee 'ilzd •«ith t�e �o2rd's Secretary c%ithin 30 days acter receipt oF aotiiicatioa. I� r.o a?pzal is `iled within the said 30-day period, the Be?ast�.ent's eecision s�all oe d°°'ed �iaa1 ar.d conclusive. j, In cases oF apo°a15, tae Board sna11 concuct a n=_�rin� �aitltin 30 dzys iroca tne iiling �aCe. 2totice oc the nearin� sha11 6e u�ailed to tne apoli- cant, and the Eoard saa11 render a decisicn o¢ tne aapezl <.aithout uare�-' sonable c'elay. Dzcis�oas s::all 6e -ina1, suoi=ct to judicial rzview oi t`;e District Court. P_�oeals to District Court sn211 ba served upoa *_.^.e City Clzr?: c%it`:1n 30 d2;is F�ter the dec�sior. ,.�s been �ailzd to c�° a�oLi- caat. T:�e decision snail be dc=red fina! =n.'.^co.clusive iL eo 2poeal is oer�ecCed �aitnin tne 30-day period pravidzd 'ner_. 6. The :,aCer iitility is autnorized to nake adjustnenCS norc.21 to a re,ular billing process such as co[recC�ons �or ��eter ra2ding errcrs a�d s____ar adjust:�eats suoject to t¢e geneT_a1 approval o= ty�e znd kind by the De- nartaent of Public 4:orks; now tnerePoz°, oe it FUP.":r.cc2 '?.FSOLVc"B, '!'Fiat the City Cour_cil be reauested to concur in taese ruies and regu- lations by resolution. Water Commissioners Yeas Langevin Mzs2nz Nicosia Vice President Bachrach President Levine In favor—_�_ Nays OPFas� � �.�, ,... 1M t0-60 Adonted by the Board oi tiVater Gommissione*s D c mber �S —19 � � �� ' �' SEGY. INTER-DEPARTMENTAL MEMO DEPaxTMENT oF rusLic woxxs Stary M. Becker, Director ry^_^� �; .' � ( CITY OF SAINT PAUL Norm Coleman, Mayor To: Barb Renshaw Mayor's Budget Of�ice 240 City Hall From: Bruce Beese ��"" Public Works Accounting 600 City Hall Annex ` L� Re: December 7, 1994 Draft Non-Sanitary Sewer Resolution ��^E1VED ,.�.�, p�C 8 1994 BUD6ET O�FiCE Thank you for your suggestions on our draft resolution crediting water that is used, but does not result in sanitary sewer use. Before I begin I need to say that I received a great deal of help answering your questions from Phil Ethier, Mike Kassan, Roger Puchreiter, and Dick Rupert. I have also attached a revised draft of this resolution. 1. Zs a resodution required? Can the policy be changed without it? Because this is a change in palicy, the City Council should be given the opportunity to set it, based upon our recommendation. Public Works feels better discussion and understanding by all concerned will be developed if this discussion is held in the public arena. We want to make sure we are "up front" about this. 2. ...could you simply notify elected of�cials that this is what you plan to do and wait for their comments? We feel a resolution is required to make sure that the decision is made at the appropriate policy setting level, because the Mayor's Administration and the City Council will likely hear complaints from individuals and businesses if they disagree with this policy change. Staffin the Public Works Sewer Division would be much more comfortable enforcing a policy such as this if an ofTicial City Council action exists. 3. What do other municipalities do? In the City of Minneapolis, some organizations are required to file monthly reports. If they fail to file them, no credit is given and there is no grace period. This does not apply to most of their accounts however. Most Minneapolis customers with sewer credits have private meters (the credit meters) read monthly by City meter readers. Page 1 Responsive Services • Qua[ity Facili[ies • Employee Pride � qs-�9 In Brooklyn Park, Edina, Riehfield and Roseville, all customers who wish credits get separate City water meters. All reading is done by City personnel. Credits are not used and all reductions are made against the original billable reading. In Anoka and Burnsville, private meters Credits are not used and all reductions are reading. are read by City personnel. made against the original billable 4. Who will this affect? All sanitary sewer system users who may be eligible for credits in the future, as well as those who have creditable volumes not yet requested. This includes both residential and commercial customers, but in the final analysis, only those who do not apply for credit in a timely fashion will be effected. 5. Do they tend to be businesses or residential customers? Credit requests are normally received from businesses, because only a small number of residential customers have entered the program. 6. What are the circumstances under which credits are typically giaen? Sewer charge credits are necessary to insure that customers with an unusual situation only pay their fair share of the cost of using and main- taining the sanitary sewer system. Saint Paul and Minneapolis have a very diverse customer base, therefore administration of credits must be done individually, since no formula or standard procedure will suffice for all accounts. The Saint Paul Water Utility bills for sewer charges based on the volume of water used in the billing period. The Water Utility determines these charges by reading meters on City-supplied accounts and private wells. Not all the water is actually used for sanitary sewer purposes. • Water used for lawn sprinkling and other irrigation returns to ground water, is evaporated, or becames part of plants. • Water used for evaporative cooling is lost to the air. • Water used for direct cooling absorbs heat, and is then discharged to a storm sewer. This is water properly referred to as clearwater. "Clearwater Credit" is a term often used to refer to all sewer credits, although technically only clean water discharged to a storm sewer can be called clearwater. • Water which becomes part of a product and is then sold. In Saint Paul these praducts include candy, industrial chemicals, orange juice and beer. To adjust sewer charges to reflect these non-sanitary sewer uses, Public Works sends credit memoranda to the Water Utility to be applied directly to the Page 2 qs-�9 customer's account. About $700,000 of credits are issued each month, adding up to more than $8 million annually. Customers are required to show evidence of non-sanitary sewer use in order to qualify for these credits. The most common method is a meter within the customer's water system. The customer is required to purchase, maintain and test these meters under the supervision of Public Works. A study and investigation is done to determine how the sewers are being used by an individual customer. These studies take into account any factors which relate to the sewer charge for which the customer is responsible. Public Works creates a customized "Application for Adjustment" for each customer. The customer must file an application each billing period to receive credit. Public Works selects methods and procedures for each situation in an attempt to treat each customer fairly and equitably. Guidelines used are the standards of the American Water Works Association, Saint Paul Legislative Code and direction of the Board of Water Commissioners. 7. In the case of credits that are from a number of years ago, what are the circumstances? Are they circumstances that the customer has control of? Late credits of the type we are considering are caused by the customer's failure to apply for credits in a timely manner. Sometimes they just forget. Sometimes they have a change in personnel. There is no predictable pattern. 8. What dollar impact (you could giue a high and low estimate) would you expect the resolution to have? The effect of a one-year limit on residential customers would be minimal. There are only a handful of residential customers who have entered the program. The typical credits given to residential properties are the result of isolated instances such as a broken pipe in a crawl space. These things do not come up after long periods of time, but are generally addressed by the residential customer shortly after the abnormally large water/sewer bill is received. Phil Ethier looked back and found credits of this type, for both residential and commercial accounts, starting in 1992: •In calendar 1992, eight customers were credited for non-sanitary sewer use more than one year after billing. These credits totaled $18,577.72. •In calendar 1993, four customers were credited for non-sanitary sewer use more than one year after billing. These credits totaled $4,149.00 •As of October 5, in calendar 1994, thirteen customers have been credited for non-sanitary sewer use more than one year after billing. These credits total $7,369.36 so far. Page 3 °15 - �1 °i Thanks again for your help clarifying these issues. If you have further questions or comments, please feel free to call me at 266-6063. CC: Stacy Becker Phil Ethier Mike Kassan Roger Puchreiter Dick Rupert Ed Warn attachments Page 4 OFFICE OF THE MAYOR CITY OF SAINT PAUL Norne Caleman, Mayar DAT'E: September 27, 1994 BUDGET SECTION Joseph Reid, Budget Director 240 Ciry Ha11 � � IS West Ke!logg Boulev¢rd Saint Paul, Minnesata 55102 TO: Bruce Beese and Roger Puchreiter, Public Works � FROM: Bazb Renshaw Yl� RE: Draft Resolution on Cleaz Water Credits 9s-`1°I Telephone: (612) 266-8543 Facsimile: (612) 266-8513 Bruce, first I would like to know if a resolution is required? Can the policy be changed wiehout it? I am not suggesting the policy be changed without review and notice, but could you simply notify elected o�cials that this is what you plan to do and wait for their comments? Assuming you do need a resolution, I have reviewed the draft you sent me. I can understand why Public Works would want such a change. I know it is difficult to project, with accuracy, sewer revenues. I am enclosing a copy of the draft with my comments on it. I sent Bernie Bulled a copy to review. His staff informed me they have no objections to the resolution. Bazb Woolsey expressed surprise that Public Works gives credits so faz back in time. She said that the Water [Ttility would only go back about one quarter. Which brings me to the question, what do other municipalities do? Roger, before the Budget Office can suQport the resolution we would like to have more information. Who will this affect? If you can give us more background on who gets credits, that would really help Joe Reid and I to understand what the impacts would be. Do they tend to be businesses or residential customers? What are the circumstances under which credits aze typically given? In the case of credits that are from a number of years ago, what are the circumstances? Are they circumstances that the customer has controi of? While some anecdotal information might be helpful, I would prefer a summary of actual cases over some time period (a year?). The summary might say that in X% of the cases, the credits given were for such and such a reason, and this accounted for $Y (%) of the dollars. What dollar impact (you could give a high and low estimate) would you expect the resolution to have? Please feel free to add any more information you think would be useful. I will hold on to the resolution until I get this information. ca Stacy Becker Joe Reid Dick Rupert F:W SIILS\AENSRAVJ�W Pt7[.FS�BRUROG