STAFF REPORT

To: Works Committee

From: Barry H. Gutteridge, Commissioner, Works and Emergency Services

Subject:Universal Metering - Public Notification

Purpose:

To report on the procedures for issuing notices to property owners and tenants under the planned Universal Metering Program for the former City of Toronto flat rate customers.

Financial Implications and Impact Statement:

Financial implications associated with arrears in water rates under the Universal Metering Program Implementation to be reported on by the Chief Financial Officer and Treasurer under the Program's Annual Report.

Recommendations:

It is recommended that:

(1)the three written notifications to flat rate customers regarding the mandatory installation of a water meter, be provided to the person who receives the water bill for a property at approximately six month intervals with the notices to be coordinated with the implementation contract(s) for the Universal Metering Program; and

(2)It is recommended that the Chief Financial Officer and Treasurer report in the second ear of the Universal Metering Program on an appropriate strategy for resolving any arrears in water bills which are associated with the Universal Metering Program.

Background:

City Council at its meeting of October 26^th, 1999 adopted as amended, the June 30^th, 1999 report from the Commissioner of Works & Emergency Services and the Chief Financial Officer and Treasurer entitled Water Rate Harmonization and Universal Metering in the former Cities of Toronto and Etobicoke (Clause 30 a). The report recommends that the City provide a minimum of three written notices to flat rate customers concerning the mandatory Universal Metering Program. The notices will provide customers with sufficient time to arrange for the installation of water meters, however, if the customers refuse to cooperate and allow the City to install water meters, then the flat rate water and sewer service charge to the properties which refused to have a meter installed will be increased by 100% every year thereafter.

In considering this recommendation, Works Committee requested that a further report be provided regarding the notification procedure and the following issues:

(1)Special notification procedures given that the land owner is not located at the property;

(2)An investigation into the feasibility of placing the project cost on the tax bill rather than the water bill for such homeowners; and

(3)In the event that the owner refused and an increase in the flat rate were brought about, the placement of such increase in the tax bill rather than the water bill.

Comments:

The City's Finance Department, Revenue section currently bill flat rate customers in the former cities of Toronto twice yearly and Etobicoke, three times yearly. The bills are sent either to tenants or landlords, depending upon who initially requested the water supply to the premise. In some instances, due to the landlord and tenant arrangements, the tenant has applied to the City for water supply, and, the tenant receives the water bill from the City. In other instances, the land owner or landlord have applied for the water supply, and consequently, the land owner receives the water bill.

With respect to the notification procedures where the landowner is not located at the property (Item 1) Legal have advised that the notices under the Universal Metering Program to inform flat rate customers of the mandatory requirement to have a water meter installed should be sent to the landlord or the tenant, whichever had originally requested the water supply to the property and is currently receiving water bills from the City Finance Department. In the event that the landlord or tenant refuse to cooperate after the third notice, the City would then be in a position to increase the flat rates against the individual who originally applied for and was granted the water supply.

It should also be noted that section 50.(1) of the Public Utilities Act states that the City officials and employees have access to private premises at proper hours of the day and upon reasonable notice given to the landlord or tenant.

With regard to placing the Universal Metering project cost on the property owners tax bill (Item 2), the October 26^th, 1999 Council decision approved a financing plan whereby the rate harmonization for the former City of Toronto will be deferred for 3 ½ years to fund the estimated $21 million project cost. The Municipal Act allows for revenues to be used to fund water projects, however, the funding strategy which was adopted by Council at its October 26^th, 1999 meeting provided full funding for the Universal Metering Program from the water rates to be charged to the former City of Toronto customers.

With regard to recovering arrears in water bills against the tax bill of the property (Item 3) in the event that the flat rate charges are increased due to an uncooperative landlord or tenant, the City is entitled to recover these costs from the party who is responsible for payment of the water bill. The Public Utilities Act states that water charges owed by a property owner which are in arrears can be recovered in a manner similar to taxes which are in arrears with respect to the property to which the water was supplied. Consequently, if the City is sending water bills to landlords or land owners, the Public Utilities Act (Section 31) allows the City to recover water bills which are in arrears in the same manner as the tax bill collection process. The Public Utilities Act further allows the City to recover water bills to tenants which are in arrears through a distress sale upon the goods and chattels which the person owns. Further, the former City of Toronto Water Supply By-law (Article 3 section 340-20) provides the authority for the City to discontinue water supply to the property until such time as the arrear water bills have been paid.

It is unlikely however, that these extreme measures in the case of landlord or tenants will be required. The three notices will stress the importance of the user pay principle which a metered system provides along with the opportunity for water conservation savings within the household. It is planned that each notice will be separated by approximately six months to provide ample opportunity for the landlord or tenant to contact the City and arrange for the meter installation. In addition, the program includes funding for a Public awareness program to inform the public of the benefits of having a water meter installed. Notwithstanding these efforts, in the event that an increase in flat rates are required, the increase would not take place until the appropriate billing period following the third notice. In effect, tenants or landlords would have in excess of 18 months to arrange for the meter before any adjustments to flat rates would occur.

It is planned that the notices to landlords and tenants will be coordinated with the contract crews undertaking the meter installations, such that the homeowners and tenants who request meters will have relatively short waiting times to have the meters installed.

Conclusions:

It is anticipated that the three notifications provided to the homeowners and tenants, along with the public awareness program will minimize the number of increases in flat rates required to achieve the successful completion of the Universal Metering Program. It is recommended that the Chief Financial Officer and Treasurer report in the second year of the Universal Metering Program on an appropriate strategy for resolving any arrears in water bills which are associated with the Universal Metering Program.

Contact:

Wayne Green, P.Eng.

Director of Quality Control and System Planning

Telephone: 392-8257

Fax: 392-2974

   Michael A. Price, P. Eng. FICE

General Manager, Water and Wastewater Services

Tel: 392-8200

Commissioner, Works and Emergency Services

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