HomeMy WebLinkAboutAgenda Report - May 3, 1995 (68)CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Utility Bill Policies (Vacation Credit)
MEETING DATE: May 3, 1995
PREPARED BY: Finance Director
RECOMMENDATION: Authorize the Finance Director to conduct a 3 year pilot program to grant a
vacation credit for residential utility customers (single family residents only)
for garbage service when absent for not less than 30 days nor more than 90
days per year.
BACKGROUND:
The City has received a number of requests from customers for it vacation credit when absent. Prior to
1985 the City did give vacation credits. However, this practice was stopped because of the administrative
cost of tracking absent customers and because the City's flat rates are charged to account for both service
use and readiness to serve.
Whether the City charges residents for utility services based on metered or a flat rate service is a question
of policy. Electric utility customers are charged based on metered consumption plus a readiness to serve
charge. When absent, their bill should decrease to reflect their absence. On the other hand, water, sewer
and garbage customers are charged for their service based on a flat rate. In concept, this rate was
established by taking the total cost of providing the service and dividing by the total number of customers
by service class. Everyone shares equally by service class in the cost of the service regardless of the service
level.
In metered services , utitities often have a minimum change called a "readiness to serve charge". This
charge is imposed to recover in part or whole the fixed costs of providing the service. If the same concept
is applied to flat rate service customers, the rate could be reduced to recognize the customer's absence and
to insure the City collects for the fixed cost of the service.
Recommended Billing Practice
Utility customers may apply for a vacation credit for garbage service provided by the City when absent
from their residence for a period of one to three months (whole months).
APPROVED:
THOMAS A. PETERSON recycled paper
City Manager
cc -1
The City will grant a credit for garbage service for the period of absence for up to three months under the
following conditions:
• The residence will remain vacant and will not be occupied by anyone to include pets.
• Vacation credit will be granted in whole months and not be prorated for single family residents.
• The City reserves the right to verify the vacancy from time to time by spot checking and reading
the electric meter. If the residence is not vacant during the customers agreed absence, the
charge for garbage service will be reinstated with a 100% penalty.
Cost to the Garbage System
Staff estimates that between 30 and 50 customers per year will apply for a vacation credit. Normal
residential rates for garbage is $15.87 per month. The estimated cost to the garbage system is $1,900 per
year based on 40 residents absent for 90 days.
FUNDING
None.
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Dixon Flynn
Finance Director