HomeMy WebLinkAboutMemo - Mail Packet - 11/10/2020 - Memorandum From Lisa Rosintoski Re: Excess Water Usage Surcharge Billing Error
Utilities
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222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: November 4, 2020
TO: Mayor Troxell and Councilmembers
FROM: Lisa Rosintoski, Deputy Director, Utilities Customer Connections
THROUGH: Darin Atteberry, City Manager
Theresa Connor, Interim Utilities Executive Director
RE: Excess Water Usage Surcharge Billing Error
A billing error was discovered on October 20 that determined the Excess Water Use (EWU)
surcharge was not being billed to 198 commercial accounts, 161 customersi, based on City
Code’s water supply requirements.
The billing error began in February 2020 but did not impact most customers (over 90%) until
August consumption, with 96% of the unbilled revenue occurring in the months of August,
September and October. The charge is predominately associated with irrigation season with
substantially higher water consumption during those months. A similar billing error occurred in
2018 and, based on an internal investigation, staff believes there is a glitch in Banner, our legacy
billing system, that switches the EWU trigger off, and causes EWU to not be charged.
Fortunately, both times, staff discovered the error during a routine audit performed on water
revenues.
Per City Code, an excess water use surcharge is assessed on commercial and irrigation taps when
water use exceeds the applicable annual water allotment based on the customer’s designated
water supply requirements.
A review of impacted customer accounts determined the following:
20 have a balance of $10,000 or more
19 have a balance between $5,000 and $10,000
62 have a balance between $2,000 and $5,000
97 have a balance less than $2,000
DocuSign Envelope ID: BA9064A7-BA30-4B72-A3E7-6F166393D380
11/3/2020
11/3/2020
11/5/2020
Most of the customer types impacted are:
Health Care
Homeowner Associations
Multi-Family
Office buildings
Restaurants
Retail
The Customer Accounts team, part of Customer Connections, will mobilize to include a letter to
the impacted customers in their December utility bill that includes the following
communications:
Apology on billing error and recognition of impacts to customer
Assistance to manage payment arrangements to support time needed to pay
Customer support from Customer Accounts for clarification, as well as review of
Allotment Management Plan applicability
CC: Lance Smith, Director, Utilities Strategic Finance
Lori Clements, Senior Manager, Customer Connections
SeonAh Kendall, Senior Manager, Economic Sustainability
i A customer can have multiple accounts.
DocuSign Envelope ID: BA9064A7-BA30-4B72-A3E7-6F166393D380