Council disputes 42‑unit complex’s $99,000 overbilling claim; staff point to leaks, late payments and sewer‑credit policy

Council members discussed a water‑billing dispute in which the manager of a 42‑unit complex requested about $99,000 in alleged overpayments. City staff reviewed account histories and told the board the property’s three‑year usage and billed totals ranged from roughly $60,000 to $95,000 by year, and that some high bills were tied to leaks and periods of nonpayment.

Staff explained that the city’s practice when customers request relief is to credit the sewer portion of an unusually high bill or offer a payment plan for the water charges; a staff example cited a sewer portion figure of $4,644 associated with one property’s high bill. Staff said they had attempted to contact the property manager during the period in question and documented multiple late payments and a leak the city later identified. The property manager’s request, the staff said, had been prompted by HUD guidance to pursue recovery steps, but staff concluded the $99,000 figure was not supported by the city’s records.

Council members asked whether the city should involve legal counsel; staff indicated the board sets policy for credits and that legal action would follow only if the claimant pursues litigation. No council motion was made to pay the $99,000 demand; one councilor said the board could let the claim 'die' unless further legal steps are taken.

Next steps: staff will not issue the requested refund without further council direction or litigation; if the claimant files suit the city will involve legal counsel as needed.