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HomeMy WebLinkAboutMinutes - 2/11/2002 - Finance and Personnel Committee ' FINANCE AND PERSONNEL COMMITTEE MEETING Monday,February 11,2002 Aldermen Conference Room, 6:30 p.m. �-' In Attendance: Committee Members: Aldernzan Bolger, Alderman Low, Alderman Murgatroyd. Also in Attendance: Mayor Althoff, City Administrator Lobaito, City Clerk Jones, Jon Schmitt, Assistant Director Public Works Marcinko. Chauman Alderman Murgatroyd called the meeting to order at 6:30 p.m. Water Meter Replacement Pro�ram Public Works Department Water Division Superintendent Jon Schmitt presented the new outside radio read meter. As the City has discontinued its contractual agreement with Nicor to read City water meters, Staff is in the process of installing the hardware needed to successfully convert the readings to an in- house procedure.. He noted as part of the conversion process, the City must ultimately change out all existing water meters. Superintendent Schmitt noted the old mechanical meters have shown major discrepancies when compared to outside readers. He stated in Lakeland Park Subdivision approximately 90% of the water meters aze located in crawl spaces, which makes it very difficult to effect a meter changeout. As a result many of the meters aze the original ones installed by Northern Illinois Utilities prior to the City's purchase of the Lakeland Pazk Water System. Many discrepancies have recently occurred between the water meter reading and the remote reader on the exterior of the houses. City Administraxor Lobaito stated typically the City Collector historically worked out a reasonable agreement with a customer experiencing a discrepancy in meter readings when a meter change out was completed. This was done on a case by case basis. � City Administrator Lobaito noted the conversion process to the new meters is anticipated to be completed within six years. Staff wants the Finance and Personnel Committee to be aware of the possibility of major discrepancies and seeks direction on how to deal with them. City Administrator Lobaito stated this is a multi-faceted problem. The City's Municipal Code states meters should be changed out every ten years. This ordinance has not been followed,primazily due to Staff shortage. Superintendent Schmitt reported 73%of the meters located within the City aze less than ten years old. It costs the City $173 for a complete meter change out. He said there are more than 6,000 water meters located in the City. City Administrator noted three possible solutions to handling the meter discrepancies: • Negotiate with resident on a case by case basis; • Forgive the discrepancies; • Deal with the discrepancies on a uniform basis. Alderman Low stated there are too many customers to consider the discrepancy on a case by case basis. Mayor Althoff commented the Committee, in order to be fiscally responsible, should consider collecting some portion of the disputed amount by implementing a policy . The water has been used. City Administrator Lobaito suggested a letter be sent or a door tag left notifying residents of the `,, discrepancy in the meter reading. This should not be the responsibility of the field representative. Chairman Murgatroyd stated he would like to see money collected if the discrepancy is over a certain pre-specified amount. ' Finance and Personnel Committee February 11, 2002 Page 2 � Mayor Althoff stated in the past the average was assessed by calculating the average over two billing cycles. Alderman Low opined a clear formula should be established, regardless of the amount owed. Mayor Althoff suggested placing an article in the newspaper advising the residents of the impending change outs and the possibility of discrepancies between the meter and the remote reader. Alderman Bolger suggested the entire amount be billed and, if questioned, be recalculated. Chairman Murgatroyd opined the entire amount owed should be paid. Mayor Althoff suggested averaging the rates over a period of years. Chairman Murgatroyd noted if direction to establish a policy comes from Council, it shifts the burden away from the City Collector. Chairman Murgatroyd suggested taking 75% of the discrepancy and calculating the cost at the current rate. Payment plans could be arranged if the amount owed the City is greater than $100. City Administrator Lobaito sa.id if a meter is older,the average usage over twelve months could be utilized as a base. It was the consensus of the Committee that in all discrepancies where the inside meter is higher than the outside remote reader, the current resident should pay 75% of the discrepancy over a twelve-month period. If the current resident has not resided at the location for a year, the bill should be calculated over two billing cycles in order to obtain an average consumption. Motion by Bolger, seconded by Murgatroyd, to present the matter to the entire Council in March for � review and formal action.Voti ng Aye: Bol ger, Murgatroyd, Low. Voti ng Nay: None. Moti on carried. City Administrator informed the Committee the City Staff began reading meters on February 11"'. Each route takes approximately one day to complete. Superintendent Schmitt stated the new meters eliminate human error. Each meter is keyed to a specific unique number. Other Business Alderman Bolger opined the City should give some consideration to increasing the Mayor's salary. Motion by Low, seconded by Bolger, to adjourn the meeting at 7:20 p.m All Ayes. Motion carried. Respectfully submitted, .Ji�'...�,-a C �f Steven C. Murgatroyd, C irman �