Item Coversheet

CITY COUNCIL AGENDA COMMUNICATION
AGENDA DATE:December 10, 2019
SUBJECT:

Adopt a Resolution Amending the City of Allen Fee Schedule Relating to Water Service Charges by Amending the Initial Deposit for Water Service, Establishing Fees for Disconnection and Re-establishment of Service, and Eliminating Certain Obsolete Fees.

STAFF RESOURCE:

Steve Massey, Director of Community Services

ACTION PROPOSED:

Adopt a Resolution Amending the City of Allen Fee Schedule Relating to Water Service Charges by Amending the Initial Deposit for Water Service, Establishing Fees for Disconnection and Re-establishment of Service, and Eliminating Certain Obsolete Fees.




BACKGROUND

Initial Deposit. Water and Sewer Utilities typically establish various fees for the services they provide. The first fee encountered is the initial account deposit paid when a new account is opened. The current minimum monthly bill in Allen for residential water, wastewater, drainage, waste services, household hazardous waste, and taxes is just over $120 per month. A customer could actually accrue twice this amount, about $240, before a disconnect for nonpayment would happen. Our current deposit of $50 is substantially below the $240 that could be at-risk for a customer that departed without account closure and settle-up.

 

The Table below shows our initial deposit compared to that of other local cities. 

 

12- Cities

Deposit

Allen

$50

McKinney

$75

Richardson

$75

Forney

$75

Garland

$75

Wylie

$95

Royse City

$100

Plano

$100

Mesquite

$100

Farmersville

$100

Frisco

$125

Princeton

$150

Average

$93.33

 

The 12-City average of these initial deposit amounts is $93.33. To reduce the fund's exposure to write-offs, staff recommends that the initial deposit be set at $100. Our current ordinance does automatically refund initial deposits after the customer documents a two-year on time payment history.

 

Additional Disconnection Deposits. Our current Ordinance provides for an additional refundable deposit per disconnection made for nonpayment. The proposed rate resolution keeps this additional deposit at $50 per disconnection. Our current ordinance does automatically refund initial and additional deposits for disconnects after the customer documents a two-year on time payment history.

 

Disconnect Fee. The current fee the City charges for disconnection of an account is $20 for an on-duty disconnection and $40 for an after duty hours disconnection. The Table below shows our disconnection fees compared to that of other local cities.

 

Duty Hours

After Duty Hours

Allen

$20

$40

Mesquite

$25

$25

Farmersville

$30

$40

Garland

$30

$60

Royse City

$35

$50

McKinney

$40

$60

Plano

$40

$70

Princeton

$40

$80

Forney

$50

$50

Richardson

$50

$60

Wylie

$50

$65

Frisco

$50

$75

Average

$38.33

$56.25

 

The current average disconnect fee on-duty is $38.33 and after duty hours $56.25. These fees actually reflect two (2) trips to the home, one (1) to turn the meter off and another to turn the meter back on. Staff recommend that Allen implement one (1) fee regardless of the time of service termination or reestablishment of $40.

 

 

STAFF RECOMMENDATION

Staff recommends that the City Council adopt a Resolution amending the City of Allen fee schedule relating to water service charges by amending the initial deposit for water service, establishing fees for disconnection and re-establishment of service, and eliminating certain obsolete fees.

 

MOTION

I make a motion to adopt Resolution No. _________________ amending the City of Allen fee schedule relating to water service charges by amending the initial deposit for water service, establishing fees for disconnection and re-establishment of service, and eliminating certain obsolete fees.



ATTACHMENTS:
Description
Resolution