1. 1 BILLING ADJUSTMENTS Utilities Department Orange County Board of County Commissioners March 20, 2012

2. 2 Background Response Existing Billing Adjustments Recommendation Presentation Outline

3. 3 Background Response Existing Billing Adjustments Recommendation Presentation Outline

4. 4 Homeowners who replace their lawn may face very high water bills The price of water in the two highest rate tiers was increased substantially in 2007 and again in 2009 to promote conservation No form of relief under existing business practices Background

5. 5 High water bills due to lawn replacement was discussed September 13, 2011 February 7, 2012 Board direction to review current business practices Increase public awareness Consider financial relief Background

6. 6 130 GPD/capita Faucets (6%) Bathtub (2%) Dishwasher (1%) Clothes Washer (12%) Leaks (5%) Other (1%) Showers (7%) Toilet (12%) Outdoor (54%) Water Use Categories (per capita 130g/day)

7. 7 Water Conservation Modify behaviors and practices that lead to more efficient water use Improve or take advantage of new technologies to reduce water consumption Three components – Education programs – Incentive programs – Regulatory programs Background Education IncentiveRegulatory

8. 8 Education School Programs Home Improvement and Garden Centers Composting and Rain Barrel Workshops Residential Irrigation Workshops Florida Friendly Landscape Workshops Website EPA Water Sense Partner Irrigation Focus Group Background Education 90% IncentiveRegulatory

9. 9 Incentive Mobile Irrigation Lab Audits Toilet Voucher Program Pre-rinse Spray Valve Program Low-Flow Fixture Program Background

10. 10 Regulatory Water Watch Program – Educational Contacts – Timer Resets – Violation Notices – Violation Hearings – Fines Issued Background

11. 11 OCU Rate tier structure Inclining block rates Conservation price signal Background

12. 12 Irrigation of new landscape is allowed any time of day on any day for first 30 days every other day for the next 30 days limited to the minimum necessary for such landscape establishment Background St. Johns River WMD South Florida WMD Water Management Districts Requirements

13. 13 Homeowners directed by landscaping companies to water excessively Monthly water bill can be in the $600 to $1,000 range or higher Lawn replacement affects a small segment of the customer base Approximately 300 customer inquiries annually Utilities we queried have no policies for financial relief Background

14. 14 Background Response Existing Billing Adjustments Recommendation Presentation Outline

15. 15 Increase customer education on lawn irrigation requirements Consider modifying business practices to provide financial relief Response

16. 16 Increase public education Bill messages Bill stuffers Website presence Landscape companies IFAS / Cooperative Extension – recommended irrigation guidelines for new lawns Response

17. 17 Modify current business practices to provide financial relief one time per year per home Homeowners requesting lawn replacement adjustment must: – Complete application and provide documentation of lawn replacement – Pay bill or establish satisfactory payment arrangement in the interim Response

18. 18 Utilities staff will: – Calculate previous 12-month average water usage – Compare average to usage during lawn replacement time period to determine water usage to be adjusted – Calculate adjustment for water usage in excess of the average – Usage above the average will be billed at appropriate rate tier – Adjust wastewater portion of bill if average usage falls below the 14,000 gallon cap for residential customers Response

19. 19 Response

20. 20 Response

21. 21 Response Customer Savings of $711.70

22. 22 Background Response Existing Billing Adjustments Recommendation Presentation Outline

23. 23 High bill issue brought up for discussion during February 7, 2012 BCC meeting during public comment and open discussion Board directed staff to review unexplained one time spikes in residential water consumption Existing Billing Adjustments

24. 24 Pool Fill Leak Fast Flow Unexplained Existing Billing Adjustments

25. 25 Pool Fill One time per year / per account Provides financial relief when customer supplies repair documentation Provides financial relief on wastewater portion of the bill only 12-month average usage is used to calculate wastewater adjustment for the month Processed 541 pool fill adjustments in FY11 totaling $11,830 Existing Billing Adjustments

26. 26 Leak Adjustment One time per year / per account Provides financial relief when customer supplies repair documentation Consumption over average is not subject to wastewater charges 12-month average usage is used to calculate water adjustment for the month Additional usage over average is billed at base rate Processed 3,342 leak adjustments in FY11 totaling $1,115,760 Existing Billing Adjustments

27. 27 Fast Flow Adjustment As tested and verified Meters are removed and bench tested adhering to AWWA standards (±1.5%) Meters registering above 101.5% threshold are provided adjustment for past 12 months Usage for prior 12 months adjusted based on AWWA standard Processed 222 fast flow adjustments in FY11 totaling $23,790 Existing Billing Adjustments

28. 28 Unexplained Adjustment Covered under Resolution No. 91-SW-09 Resolution predates the current 5 tier inclining block rate structure Provides financial relief to customers who experience high usage with no discernable explanation Processed 36 unexplained adjustments in FY11 totaling $19,190 Existing Billing Adjustments

29. 29 Background Response Existing Billing Adjustments Recommendation Presentation Outline

30. 30 Coordinate with County Attorney to draft resolution to address all five billing adjustment types going forward  Lawn Replacement  Pool Fill  Leak  Fast Meter  Unexplained New resolution will come back to BCC Recommendation

31. 31 BILLING ADJUSTMENTS Utilities Department Orange County Board of County Commissioners March 20, 2012