Council approves large utility adjustment for resident after reported leak

Parent City Council approved an adjustment to a resident’s water bill during its consent agenda, after discussion about the city’s leak-adjustment policy and coordination with the local special service district.

The council debated how the city treats large overage bills caused by undetected leaks. Speaker 3 summarized current municipal policy: a first qualified adjustment typically covers the full overage, a second within 12 months is adjusted by half, and a third is generally denied absent extraordinary circumstances. Council members also noted that the city does not distinguish in the ordinance between in-city and out-of-city customers.

In the specific case raised under the consent agenda, staff reported a usage spike of roughly 187,000 gallons on one meter for resident Merrill Duncan; Speaker 3 said staff recommended an adjustment and that the special service district representative (Jacob) agreed the city could deduct any amount written off for the customer from the payment the city remits to the district. "The adjustment for Duncan will be an amount of $161,160 dollars and 93¢," Speaker 3 said during the meeting.

Council approved the consent agenda, including the Duncan adjustment, by voice vote. The council did not alter the city’s written policy at the meeting; members discussed whether a future ordinance amendment should explicitly treat outside-of-city accounts differently but took no final action on that change.

The next procedural step is the usual accounting adjustment and settlement with the special service district; staff said they will apply the deduction to the amount the city remits to the district.