Saturday, January 12, 2013

Coldstream's Billing Tactics Hitting the Fan



ADDENDUM 3:30 pm POST-PUBLISH: 
Oops...sorry!

"Just to clarify, the sewer rate for the year is set using the first quarter readings ie: Jan 1 - Mar 31 each year (or whatever dates DoC actually read the meters prior). "  D.McDonald




Sure, water bills are high.
As are sewer charges.

Ever on the hunt for more money from residents' wallets, the District of Coldstream has resorted to inflating your sewer rates by reading the fourth quarter late--adding another week of water consumption--as discovered by Duncan McDonald of Coldstream when he gathered up his bills.

What tipped him off is they showed his household using more water in the fourth quarter, with no change in habits.
Every year.
Always in the fourth quarter.

Something stank in Coldstream.
Proof was when meters were read (which Duncan had noted).

It's the last quarter's water meter readings that determine residents' sewer charges for the year.

Reading water meters 7 or 8 days beyond the end of the last quarter equates to another week of consumption, hence, flushing the toilet!

How convenient this coincidence is for Coldstream's coffers!

Sure, invoices always state the period covered, and the quarters are always stated as ending when we expect them to end...March 31st for the 1st Q, June 30th for the 2nd Q, September 30th for the 3rd Q, and December 31st for the 4th Quarter...365 days a year divided by 4 equals meter readings approximately every 91 days.  Except the fourth quarter, which Duncan discovered was ~98 days.


He calculated that one additional week resulted in an additional $70 being added to his annual sewer charges.

"the district has picked up some much needed cash through deceptive practices."     D.McDonald

So he contacted the District.

Here is Duncan McDonald's "comment" (placed on this blog's "Developer" article of January 10, 2013).


"Duncan McDonald January 11, 2013

How's this for a pound flesh from potentially each and every sewer customer in Coldstream... different topic (to the Developer story) but related all the same.

Maybe it was only myself who was naive enough to believe that my water and sewer invoices were billed as indicated. I contacted DoC to find out what dates my water meter was read as it seemed we had pretty high usage for the first 8 days of January when the latest bill arrived. I was advised that the billing dates and the actual usage dates were not in sync and our meter had actually been read Sept 4th and again Dec 6th to comprise this latest bill, despite what is clearly stated on my invoice, "Billing Period: 01/10/12 - 31/12/12". Officially, the software DoC uses is apparently not sophisticated enough to reflect each individual users ACTUAL billing cycle. Right.



"I estimate I was overcharged roughly $70 for the year, which isn't a lot of money, but is (was!) mine. Of greater concern is whether or not everyone in Coldstream was subject to this "stretching" of their billing period as well. 3000 users (give or take) overpaying $70 each per year equals a tidy $210K... not bad for doing nothing."   D.McDonald.

No biggie except that when I then requested my meter reading dates from the past year they were as follows, according to the email from DoC; 'In your particular case, your water meter was read on December 6/12. Prior to this it was read September 4/12, June 4/12, March 9/12, and December 2/11.'

Dec 2/11 - March 9/11(
sic.../12) is 98 days, about 9% longer than an average quarter. Again, this would not matter at all except this is the period that DoC uses to calculate the sewer rate for the ENTIRE year! I estimate I was overcharged roughly $70 for the year, which isn't a lot of money, but is (was!) mine. Of greater concern is whether or not everyone in Coldstream was subject to this "stretching" of their billing period as well. 3000 users (give or take) overpaying $70 each per year equals a tidy $210K... not bad for doing nothing.

My query was very quickly escalated to senior management (Thanks Trev!) who promptly dismissed my query as an uninformed rate payer unable to understand basic mathematical principles. After several emails back and forth they simply ignored me and left their stance as follows (email from Seibel):

""""Your query was not dismissed and I certainly apologize if that is the way it came across. As noted previously, there is a defined process for the timing of the meter reads and this process is applied to everyone the same. There was not a miscalculation of the consumption rates for the 1st quarter 2012 billing cycle as it was based on the meter read taken at that time. I understand your concern with the 7 day variance between a “normal” (or equal) quarterly cycle of 91 days and the 98 days for the 2012 1st quarter read. However our meter reading process was followed consistently and all meter reads obtained under the same approach. There is no definitive way to say that the consumption values were equally incurred over the 98 days and as a result there is no way to validate the figures you provided.

There are many factors that impact the meter reading for the 1st quarter including weather, human resources and functioning equipment (meter reading equipment and obtaining a read from the house meter). Based on the fact that the process was applied consistently for all meter reads in the 1st quarter of 2012 I find no basis to provide a rebate to your account.

Thank you,
Trevor Seibel""""


In reading Mr Seibel's response, it is pretty clear that all residents were subjected to this little cash grab and the district has picked up some much needed cash through deceptive practices. So far, it appears the buck really starts and stops with the utility provider and is not regulated or overseen in any fashion.

I guess I will contact the mayor next, we'll see how that goes!"

"How convenient for Coldstream," admits Kia, "probably why the District NEEDED to hire a chartered accountant."

Coldstream received ~$210,000 over and above what residents owed for sewer!

Mr. McDonald will be interested to learn even that amount is conservative.
Because the Highlands Golf property is on septic ... as are most rural properties in Coldstream.
And rural properties on septic pay sewer charges.

Anybody willing to take odds on the same gouging tactic occurring in Vernon?
And the regional district's septic areas?

No takers...
No surprise there.

Sustaining Coldstream...Nulli Secundus.
Second to none in deceiving residents.
Add it to the list.

4 comments:

  1. Thanks for posting that Barb. Just to clarify, the sewer rate for the year is set using the first quarter readings ie: Jan 1 - Mar 31 each year (or whatever dates DoC actually read the meters prior).

    As cliche as it sounds, it's not the money that bothers me, it's the principle. For example, I just had a look at my Fortis Gas bill online. It is full of information and transparency so I know exactly what I am getting billed for and how they arrived at that figure. They publish meter reading dates, consumption and days cycle so I can compare my usage to last month or last year. They even publish the average temperature so I can actually use the bill as a tool to conserve energy and reduce our environmental footprint.

    By comparison, my DoC water and sewer invoice is deliberately misleading. I really believed the dates on the invoice were the ACTUAL dates for which I was billed. Call me stupid, but I just can't read the bill any other way. There is no explanation, no blurb, no clarity.

    In December I replaced all the toilets in our house with low flush models and upgraded our showerheads and aerators to low flow units with the view I could save a few dollars but mainly to do our part to conserve water and reduce our burden on system. Surely water and sewer rates have increased to encourage conservation, right?

    I also took advantage of DoC's toilet rebate. They gave me $125 towards the purchase of 2 new low flush models, which was great. I challenge anyone to find details of the program on the DoC website. I found out through a friend and when I went to the hardware store to purchase the toilets they told me they hadn't done a rebate for a Coldstream resident in several years.

    So, is Coldstream serious about residents reducing water use and freeing capacity on the it's sewers or is it using sewer rates as covert taxation? As the end user, how can I possibly use my water bill as a tool to reduce my usage if the data isn't accurate? Unless I call DoC for the meter reading dates on each bill, I actually have no idea how many days usage I am paying for. We wouldn't accept this kind of bullshit from any other service provider, why do we collectively put up with it from our municipality?

    In the end, it's kinda like if you ordered a small coffee and "accidentally" got charged for the large but then had to pay that price for the rest of the year. And there was just no other coffee shops in town.

    Sad.



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  2. ADDENDUM ADDED 3:30 pm POST-PUBLISH to correct my goof!
    Thanks for notifying me.

    The fact remains: Coldstream is raking in ~$210,000 more than they're entitled to receive by using FIRST QUARTER results--with an extra week of water consumption--to determine sewer rates.

    Good point about Fortis bill.
    Hydro does the same, it's very transparent.
    But local government can do what it wants to residents, because Victoria simply legislates "broad powers".

    The thing that ticks me off the most is the BASIC charges. They apply even if you are away for 3 months and use no water. I recall officials years ago talking about billing and rates. I forget who said it, but it went something like this: "Yes, but look at the number of Coldstream residents who are away all winter; we wouldn't get any water revenue from them." So the basic rate was applied because they're desperate for money.

    Remember when it rained all spring? Decreased revenues, from the combination of household conservation and no outdoor watering, had officials' knickers in a knot. So it's more about revenue than conserving a "scarce" resource, no matter what the Okanagan Basin Water Board people say. We have additional water licences in the uplands that we can access.

    Oh, to have the late Brian Harvey still here. He was the Vernon Irrigation District Manager. He never blew smoke up people's trousers. He was up-front and honest, and never hid "reasons" for decisions.

    Congrats on the upgrades you've made to your plumbing--as well as being more conscious of water-saving.

    Back to water rates: This property has 3 water meters. Obviously, the irrigation meter hasn't activated at all in the period October 1st to December 31st = zero consumption. My irrigation bill was $211.10. The clubhouse was closed for the season (but still doing some cleaning) = 6 cubic metres consumption. That bill was $156.37. My residence (two adults) showed a consumption of 86 cubic metres for a bill of $156.16.

    For a grand total of $523.63 for 92 cubic metres water.
    THAT'S $5.69 PER CUBIC METRE!

    I could probably find an analogy for that $5.69 per cubic metre of water. But it wouldn't be printable; I like your analogy.

    Did you contact Councillor Kiss? or the Mayor?

    I'll now RESEND this to members of the Coldstream Acreage Owners Association, notifying them of my goof.

    Thanks for this, Duncan.
    Please let me know if anything further comes to light.

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  3. Yes, I contacted Councilor Kiss several days ago and have not received a response. I was also contacted by the Kelowna Courier today and have forwarded all correspondence to their reporter.

    Also, I got back in touch with DoC and requested meter reading dates from the past 4 years. I guess I could go back even further but it is sufficient to indicate that out of the last four years there were two first quarters that were long, one that was about right and one that was actually short. This data suggests that is is more an issue of poor management than deliberate manipulation of meter readings to collect extra revenue.

    I'm still not super happy about the lack of transparency and the discrepancy between billing cycle dates and meter reading dates but I think I have spent enough time on this for now. Hopefully, DoC will update it's software and give us sufficient information to use our water bills as a tool for conservation.

    Cheers for now.

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  4. Interesting that the Kelowna Courier is on the ball for investigative journalism, while the Morning Star appears happy to only scratch the surface on a multitude of local issues.

    Please check back when you receive Councillor Kiss' reply.

    In the meantime, thanks for bringing this up.


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