“UTILITY BILLING BEST PRACTICES”

1. “UTILITY BILLING BEST PRACTICES” The trials and tribulations of dealing with water/sewer customers and their bills

2. Florida Government Finance Officers Association (FGFOA) • School of Government Finance – November 18-22, 2013 • “UTILITY BILLING BEST PRACTICES” • Presentation by Ingrid Gaskin-Friar • November 21, 2013 – 10:00 a.m. – 11:40 a.m. • City of Melbourne Website

3. Section I Introduction

4. LEADERSHIP A) Wren, J.T. (Ed.). (1995). The Leader’s Companion: Insights on Leadership Through the Ages. New York: Free Press, p.70. Water: “The wise leader is like water. Consider Water: Water cleanses and refreshes all creatures without distinction and without judgment; Waterfreely and fearlessly goes deep beneath the surface of things; Water is fluid and responsive; Water follows the law freely. Consider the Leader: The Leaderworks in any setting without complaint, with any person or issue that comes on the floor; the Leader acts so that all will benefit and served well regardless of the rate of pay; the Leader speaks simply and honestly and intervenes in order to shed light and create harmony. From watching the movements of Water, the Leader has learned that in action, timing is everything. Like Water, the Leader is yielding. Because the Leader does not push, the group does not resent or resist.”

5. The City of Melbourne bills approximately 58,000 utility customers monthly. • Staff address 8,000 to 10,000 calls monthly. • The City utilizes Tyler, MUNIS CIS-software for its utility billing. • Water and Sewer rates increased by an average of 7% in this fiscal year, in accordance with a five-year rate plan approved by Melbourne City Council in May 2012. • The water and sewer system budget is proposed to increase by $1,897,846 from this past year. • Total water sales: $24,000,000 Sewer charges: $18,000,000 • Note: The City of West Melbourne utilizes the City’s bulk water sales at the inside City rate. The City of West Melbourne utilizes 9% of the City of Melbourne’s water sales. B)

6. Section II Overview – Hierarchy & Responsibilities Of Staff

8. STAFFING RESPONSIBILITIES RELATING TO CUSTOMER SERVICE CALLS: • Four (4) Accounts Clerks provide cashiering function in conjunction with Customer Service at the front office. • Chief Accounts Clerks and Senior Accounts Clerks assist with Customer Telephone calls in conjunction with other daily assignments. • Utility Billing Specialist addresses customer complaints transferred from staff, prior to forwarding to the Customer Service Manager. • Financial Systems Administrator is responsible for all technological improvements/upgrades and month end closing. • Customer Service Manager addresses customer complaints that are forwarded from the Utility Billing Specialist, Director of Finance, and City Manager/Council. • Finance Director assumes the customer complaint, if the customer refuses to speak with the Customer Service Manager. • City Manager delegates customer complaints to Director of Finance and/or Customer Service Manager for resolution. • 99 % OF CUSTOMER ISSUES ARE ADDRESSED AT THE STAFFING LEVEL

9. Section III City Code – Chapter 32

10. City of Melbourne Utility Billing City Code City Manager: (Reference City Code Sections below) MELBOURNE CITY CODE Sec. 32-11 Administrative Adjustments to Utility Bills MELBOURNE CITY CODE Sec. 32-79 Authorized to provide adjustments to Water Bills MELBOURNE CITY CODE Sec. 32-308 Sewer Service Rate

11. Section IV Bill Samples and Billing Rates

12. Residential Customers’ Water and Sewer Security Deposit¾ inch meter - $120.00 * Water and Sewer Security Deposits vary by size of meter or number of units for multi-family establishments and by city ** Commercial customers -2 ½ times the average monthly bill at same location

13. City Code Sec. 32-78Construction Meter Water Sales: A customer may tap a fire hydrant for construction use only with permission from the City and after placing a meter deposit and payment for the water used based on volume registered by the meter. Deposit is refunded when the meter is returned.

14. View a Typical Bill Charges: • Water • Sewer • Garbage • Recycling • Yard Trash • Advisory Notes on back of utility bill: • City of Melbourne water, sewer, garbage, recycling and yard trash, reclaim water • City of Melbourne water, Brevard County sewer, garbage, recycling, yard trash, and utility tax • City of Melbourne water, City of Cocoa Beach sewer • City of Melbourne water, City of Palm Bay sewer (Lakes of Melbourne) • City of Melbourne water, City of West Melbourne sewer* Late Fee, Shut Off Fee, Lien Fee are also included on the bill • Bills include a Shut Off date where applicable • *The City of West Melbourne utilizes the City of Melbourne’s bulk water sales at the inside City of Melbourne rate.

15. TWO TYPES OF BILLING E-Bills Regular paperbills viaU.S. Mail Billing Functions are outsourced with AXIS

16. SAMPLE RESIDENTIAL ACCOUNT COMPUTATION Each week of month is a regular billing period for 12,000 to 16,000 Bill Accounts. Approximately 700 – 800 accounts are finaled monthly. • * Waste Management Contract ** Funds utilized to manage Recycling Division

17. SAMPLE COMMERCIAL ACCOUNT COMPUTATION • *Waste Management Contract • ** Funds utilized to manage Recycling Division • Shut Off Charge $30.00 Late Fee 1.5% , Minimum $5.00 *** Call Commercial Customers or use Door Knocker

23. The City of Melbourne provides billing services for the following cities at “outside” City rates for city water and Brevard County sewer charges:

24. The City of Melbourne provides billing services for Utility Taxes - charges each City a billing service fee: Notably absent: City of Melbourne customers have no Utility Tax

25. The City of Melbourne bills sanitation services for the following companies under contract: Waste Management (Back door, curbside, multi-family)for garbage, recycling andyard trash Waste Pro (Back door, curbside, multi-family)for garbage, recycling andyard trash

26. Customer Contacts: • Letter • Telephone • Outside Drop Box • Lobby Drop Box • Email • Fax • Customer Walk Ins

27. Section V Bad Debt

28. A) Write off/bad debt 1) 3 years history of write offs 2) write off as a percentage of water sales WATER SALES

29. BAD DEBT • 011

30. PERCENTAGE OF BAD DEBT TO WATER SALES

31. B) SEWER CHARGES

32. RECONNECTION CHARGE $30.00SHUT OFF FOR NON PAYMENT 3% UTILITY TAX BILLING FEE

33. SERVICE FEEBROKEN METER OR CURBSTOP SERVICEINITIATION FEE

34. WASTE MANGEMENTBILLING FEE$.79 PER BILL WASTE PROBILLING FEE$.79 PER BILL

35. BILLING FEES MELBOURNE VILLAGE3% UTILITY TAX REVENUE PALM BAY (SEWER)$1.59 PER BILL

36. BILLING FEES BREVARD COUNTY (SEWER)$1.59 PER BILL COCOA BEACH (SEWER)$3.00 PER BILL

37. RECLAIMED WATERSALES LATE FEES 1.5%$5.00 MINIMUM

38. RECORDING FEES Administrative Fee $25.00 Recording Fee $25.00

39. Section VI Refunds

40. A) History of water and sewer adjustments • B) Approval process • C) Melbourne City Code Sec. 32.308(d) • LEAK ADJUSTMENTS: • Pool Fill • Pool Refill • Slab Leaks • Special City Manager Request • SEWER CREDITS WILL NOT BE GRANTED FOR: • Broken or leaky water lines where the water enters the sanitary sewer system (leaky toilets or inside faucets) • Water used for irrigation • Negligent use of water • Undetermined use of water

41. SEWER ADJUSTMENTS

42. WATER ADJUSTMENTS

43. Section VII Mandatory Hook-up

44. WATER AND SEWER IMPACT FEES • WATER AND SEPTIC SYSTEM • WATER ONLY • ANNEXATION – BILL GARBAGE ONLY (TEMPORARY) • MAY BILL BASED ON A FIVE-YEAR LINE EXTENSION PAYMENT PLAN – INTEREST INCLUDED

45. Section VIII Application Process

46. A) Refundable Security Deposit – Residential ¾” Meter B) $43.00 Water and $77.00 Sewer C) Non-refundable Initiation Fee D) Rental Lease E) Picture Identification – Driver’s License/Passport F) Ownership Documentation or HUD Statement G) Annual Water and Sewer Rates H) ERC Where Applicable I) ERC Computation for Multi-family & Commercial Accounts Exemption from Security Deposit: Twelve Consecutive Months of Good Pay History at a Prior Address Note: May Relinquish Capacity in Writing or After 12 Months, Pay Impact Fees or Pay Water and Sewer Base Charges

47. Section IX Collections

48. BANKRUPTCY A) Bankruptcy Court Documentation – Bankruptcy Date B) Compute Bankruptcy Amount – Amount Written Off C) New Account Established – Post Bankruptcy Date D) Type of Bankruptcy – Chapter 7, Chapter 11, etc. E) Receivership – Receiver Pays Utility Bills(legaldocument) Required to Change Name

49. LIENS AND COLLECTION AGENCIES A) $100.00 Minimum Balance to Place a Lien B) Lien on Owner Account C) Probate Documentation/New Owner to Establish Service

50. LIENS Following Lien Schedule for Liens and Lien Releases 2008 – 2011 Liens Gradually Increased LIENS RELEASED LIENS FILED