CITY OF CHARLOTTESVILLE, VIRGINIA
                  CITY COUNCIL AGENDA



  Agenda Date:        October 17, 2022

  Action Required:    Approval of Resolution

  Presenter:          Chris Cullinan, Director of Finance

  Staff Contacts:     Chris Cullinan, Director of Finance
                      Lauren Hildebrand, Director of Utilities

  Title:              Approving Compromise of Claim: Wastewater Leak Credit $31,516.31 for
                      525 Ridge Street - Management Services Corporation (1 reading)


Background
The multi-family property at 525 Ridge Street (owned by Management Services Corporation)
experienced a leak in its main water line in July and August. The leak resulted in usage
approximately 30x their normal consumption. Due to the location of the break, the water returned to
the storm sewer and not the sanitary sewer. Per the City’s leak credit procedures, MSC has
requested a credit to their wastewater account for this location.

Discussion
Utility billing staff have calculated the wastewater credit to be $31,516.31. Utilities staff has also
investigated this leak and concur with UBO’s analysis. Per the City’s Leak Credit Policy, the credit
waives 100% of the wastewater charges, as the water did not enter the sanitary sewer (note: MSC is
paying the full water charges).

The amount of the credit is greater than $10,000, thus City Code Section 11-132 (4) requires City
Council authorization.

Alignment with City Council's Vision and Strategic Plan
The City’s Leak Credit Policy aligns with “3.4 Be responsible stewards of natural resources” by
encouraging residents and businesses to minimize water loss by making timely leak repairs and “5.1
Integrate effective business practices and strong fiscal policies” as such a policy is considered a best
practice for utilities.

Community Engagement
None.

Budgetary Impact
The fiscal impact of the compromise of claim is $31,516.31 reduction in revenues to the Wastewater
Funds. However, since the water entered neither the City’s nor Rivanna Water and Sewer Authority
(RWSA) wastewater systems, no wastewater expenses were incurred. Thus, the credit is budget
neutral to the Wastewater Fund.

Recommendation
Staff recommends approval for the compromise of the claim and granting of the leak credit.

Suggested Motion: “I move the RESOLUTION approving the compromise of claim in the form
of a leak credit of $31,516.31 for wastewater charges to the utility account of 525 Ridge Street
– Management Services Corporation.”

Alternatives
City Council could deny the compromise of claim and therefore the leak credit would not be granted.

Attachments
1.   10.17.22 Resolution Wastewater Credit for 525 Ridge Street MSC