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�� . .,_ To: Ron Moorse, City Administrator Greg Gappa,Public Services Directo��"v'"" l From: Tom Kuehn, Finance Director 1� Date; February 22, 1999 Re: Sewer service fees at 2420 Shadywood Road I have reviewed John O'Sullivan's letter of 10/21/98,in addition to his worksheet,with regard to the � possibility of applying a credit to his sewer account. Mr. O'Sullivan contends that the charges we have applied to a quarterly sewer unit number of 41 (from the first quarter of 1996,through the third quarter of 1998)should have been 25 units in 1997;and 16 units in 1998. Based on those numbers he believes they have a credit of appro�mately $8,500, which he wants to apply to future sewer service charges. Resolution number 1525,adopted by the City on September 12, 1983, established the basis used to determine sewer chazges for commercial properties and was effective with the fourth quarter 1983 billing. The resolution stipulated that each 77,000 gallons of average annual water consumption equaled one sewer billing unit,and that the number of sewer billing units applied was to be adjusted on a biannual basis. In other words, each prior two year's average consumption was divided by 77,000 gallons, and the result was the nuxnber of sewer billing units to be applied to the next two year's billings. Therefore, if the property were using more water each two year cycle the number of billing units chazged would always be less than it should be,and if the property were using less water each two yeaz cycle the reverse would be true. At the time of the resolution was adopted the property in question was not affected by the stipulations of the resolution because there was no car wash,and the annual water usage was within the guidelines for one sewer unit charge. The caz wash was opened in late January of 1988,at which time a preliminary deternunation of the correct number of quarterly sewer units to be applied should have been done,but was not. My memory is not completely clear on the matter,but I do remember there was a difference of opinion between O'Sullivan and the B&Z Dept. as to how many SAC units the caz was should be required to pay. During the time from the first quarter billing of 1988,through the third quarter billing of 1993,the car wash was charged only one quarterly sewer unit. During the same time period the actual average annual water consumption was-approximately 2,200,00 gallons. I have reviewed the account from the beginning of the car wash through the third quarter of 1998, when all customers affected by the stipulations of Resolution number 1525 were converted to current quarter water consumption to determine current quarter sewer charges, based on a sewer rate per 1,000 gallons and not sewer units. I did find that we should have recalculated the number of sewer billing units effective with the first quarter of 1998, which would have resulted in a decrease of billing units from 41 to 33 through the third quarter. However, if we are to recalculate what the chazges should have been,then I think we should go back to the inception and recalculate. If we were to do this the account would get a credit of$1,877.85 for 1998, but would also be charged $16,456.85 for past under charges,with a resulting net amount due to the City of$14,579.00.