Background:
Subject: An Ordinance authorizing adjustments to water and wastewater utility customer accounts that incurred an unusually high utility bill as a result of flooding caused by hurricane Harvey.
Recommendation: Notwithstanding current provisions in Chapter 47 that address water and wastewater billing concerns, Houston Public Works (HPW) recommends that City Council authorize HPW to make strategic, one-time adjustments and provide relief to the Affected Accounts, and to allow HPW to issue a one-time credit for wastewater charges associated with residential pool refills necessitated by Hurricane Harvey.
Specific Explanation:
Notwithstanding current provisions in Chapter 47 that address water and wastewater billing concerns, the Director of HPW recommends that City Council authorize HPW to make strategic, one-time adjustments and provide relief to the Affected Accounts, and to allow HPW to issue a one-time credit for wastewater charges associated with residential pool refills necessitated by Hurricane Harvey.
After Hurricane Harvey, Houston Public Works (“HPW”) identified approximately 6,362 residential water utility customer accounts that showed an increase in charges of 200% or more during or immediately following Hurricane Harvey (“Affected Residential Account”) and approximately 10 commercial or industrial wastewater utility customer accounts that registered wastewater usage in excess of their average usage during or immediately following Hurricane Harvey (“Affected Nonresidential Accounts”) (referred to together as the "Affected Accounts").
The Customer Account Services section of HPW, on an interim basis, placed an administrative hold on all Affected Accounts to ensure no disconnection of service and no accrual of penalties for lack of payment. HPW, working in collaboration with the Administration and City Council, then sought to identify how this unusual increase occurred and what alternatives are available to assist these customers.
HPW determined that at least 1,882 of the Affected Residential Accounts involve service addresses for residential properties for which a claim was filed between August 25, 2017 and November 30, 2017 with the Federal Emergency Management Agency (“FEMA”) and that some of the remaining Affected Residential Accounts involve service addresses for residential properties for which a private insurance claim was filed after incurring damage because of the flooding caused by Hurricane Harvey. Furthermore, HPW recognizes that there may be other Affected Residential Accounts involving residential properties that incurred flood damage caused by Hurricane Harvey for which a FEMA claim or private insurance claim was not filed.
HPW advises that the provisions in Chapter 47 of the City Code of Ordinances that address water and wastewater billing and provide relief to water and wastewater customers for customary problems do not provide sufficient relief to the Affected Accounts. Therefore, notwithstanding those provisions, HPW recommends that City Council authorize HPW to make strategic, one-time adjustments to provide sufficient relief to the Affected Accounts, and to allow HPW to issue a one-time credit for residential pool refills necessitated by Hurricane Harvey.
HPW seeks authorization to make the following adjustments:
1) For Affected Residential Accounts where a FEMA claim was filed between August 25, 2017 and November 30, 2017 for damages resulting from Hurricane Harvey, the water charges for the billing cycle reflecting usage during or immediately following Hurricane Harvey shall be calculated based upon the average monthly usage over the previous 12 months. For accounts active for less than 12 months, the water charges shall be calculated based upon the average monthly usage of the active billing cycle. The sewer charge for these accounts shall be adjusted pursuant to Section 47-135(a) of the City Code. These accounts are known to HPW and will be adjusted automatically, without the need for an application.
(2) For Affected Residential Accounts where FEMA claim was filed after November 30, 2017 for damage resulting from Hurricane Harvey, where a private insurance claim was filed for damage resulting from Hurricane Harvey, or for which documentary evidence is presented to the Director to substantiate that the unusual usage was caused by flooding as a result of Hurricane Harvey, the water charges for the billing cycle reflecting usage during or immediately following Hurricane Harvey shall be adjusted in the same manner prescribe in subsection (1) of this Section. The sewer charge for these accounts shall be adjusted pursuant to Section 47-135(a) of the City Code. Residential customers requesting an adjustment under this subsection must file an application, which shall include a copy of the FEMA claim, private insurance claim, or documentary evidence, with the City not later than 90 days after passage of this Ordinance.
(3) For Affected Nonresidential Accounts, the wastewater charges for the billing cycle reflecting usage during or immediately following Hurricane Harvey shall be calculated based upon the average monthly usage over the previous 12 months. For accounts active for less than 12 months, the wastewater charges shall be calculated based upon the average monthly usage of the active billing cycles. These accounts are known to HPW and will be adjusted automatically, without the need for an application.
(4) For residential customers who refilled permitted swimming pools as a result of flooding caused by Hurricane Harvey, the wastewater charges associated with the water used for the refill will be credited upon application and presentation of documentary evidence that the customer refilled a permitted swimming pool due to flooding caused by Hurricane Harvey.
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Carol Ellinger Haddock, P.E.
Director
Houston Public Works