Norfolk officials outline causes of extended water bills, offer relief and launch AMI pilot
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Summary
City officials told the council that contractor absenteeism, turnover and meter accessibility after storms drove recent extended billing cycles that left some customers facing bills roughly 50% higher than usual; staff described short-term remedies and a four-year plan to replace 70,000 meters with AMI technology, starting with a 700-meter pilot.
City of Norfolk officials told the council that recent extended water billing cycles were driven primarily by contractor absenteeism, contractor turnover and reduced meter accessibility after severe weather, and outlined short-term relief and a multi-year meter upgrade plan.
Doug Bieber, introduced on the agenda as deputy city manager for the utility update, said residents experienced longer billing cycles in the last two months and that "customers were seeing upwards of 50% increase in their normal bill," stressing that water charges are volume-based and the yearly total paid would not change. He told the council the city uses a contractor, identified in the presentation as Alexander Contract Services (ACS), to read roughly 70,000 meters and that recent staffing shortfalls left ACS with about 10 readers instead of the 14–16 needed to meet the 20-cycle monthly schedule.
The nut graf: Utilities staff said they have taken immediate steps — public notices on the Hampton Roads utility billing system and the utilities website, media outreach, increased contractor oversight and enforcement of contract penalties — and offered direct customer relief such as time extensions and payment plans. They also announced a long-term transition to advanced metering infrastructure (AMI) intended to reduce reliance on manual reads.
Staff described short-term and customer-facing actions. Customer service staff said the utilities department has granted more than 1,100 time extensions and 360 monthly installment agreements since Nov. 1, and recounted a recent case in which a resident with nearly $600 of accumulated balance was given a 12-month plan with $50 monthly installments and a leak check. Utilities staff said misreads are subject to a $10 penalty; in one recent month those misread penalties totaled about $8,700 and are deducted from ACS's invoice rather than passed directly to residents.
On the technical side, the utilities presentation said the city plans a four-year AMI rollout to upgrade about 70,000 meters and will begin a 700-meter pilot next month in Downtown Norfolk, East Beach and Southeast Norfolk. Bieber said the AMI program and the existing contractor contract schedule create an opportunity to revisit the reading contract before its final renewal in October 2026 and that he would return with a cost breakeven analysis for AMI.
Council members sought clarification on who bears penalty costs and whether the city can alter the contract before the current renewal window. Customer-service staff explained that penalties are deducted from ACS's monthly invoice. Several council members suggested using penalties to fund direct assistance for residents and urged staff to ensure stronger contract terms at renewal. Staff said they would discuss with the Hampton Roads Sanitation District the possibility of waiving late fees for a 30-day window while billing cycles normalize.
The presentation closed with staff promising further outreach, mailed notices and a return briefing with AMI cost and savings estimates.
The next steps: utilities staff will provide a breakeven analysis for AMI costs and follow up with the council on contract-renewal options and any temporary late-fee waivers for affected customers.
