Title
EPCOR Agreement to Terminate Water Service and Provide Water Consumption Information of Shared Customers (Ordinance S-53194) - Out of City
Description
Request to authorize the City Manager, or the City Manager's designee, to execute an Agreement between the City of Phoenix and EPCOR to support enforcement efforts for delinquent sewer accounts for shared customers. Shared customers are considered those who receive water services from EPCOR and sewer service from the City of Phoenix. EPCOR will assist the City by terminating water service for delinquent shared sewer accounts and by providing water consumption information for shared customers when necessary for account management. Further request authorization for the City Manager, or the City Manager's designee, to execute any necessary amendments to the Agreement within the Council-approved expenditure authority.
Report
Summary
EPCOR provides water service to portions of Paradise Valley, including customers who also receive sewer service from the City of Phoenix. These shared customers occasionally accrue delinquent sewer balances that require additional enforcement measures. EPCOR has agreed to support the City's collections process for delinquent sewer accounts by terminating water service when requested under the terms of the Agreement. EPCOR will also provide water consumption information for shared customers to help validate account usage and ensure accurate billing and collections. As consideration for EPCOR's assistance the City will pay for the financial impacts such as account deactivation cost, lost water revenue and other applicable fees EPCOR will incur supporting the City pursuing delinquent accounts. As the number of delinquent accounts, and time period for delinquent accounts to become current will vary significantly year to year the financial impact is not predictable and can only be estimated.
Contract Term
This agreement will be effective for one year from the date of execution and will automatically renew for a consecutive one-year term unless either party provides notice of intent to withdraw from the agreement.
Financial Impact
The City of Phoenix will be responsible for paying EPCOR a monthly lost revenue fee and other applicable fees. The estimated total cost to the City for one year of the agreement is estimated at $10,400. Funds are available in the Water Services Department's Operating budget.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Water Services Department.