City commission endorses outside study of Yachats’ water rates after more errors discovered

city of Yachats
The city of Yachats slightly adjusted its water and sewer bills in May after finding an error that could have started back in July 2016.

By QUINTON SMITH/YachatsNews.com

Tom Lauritzen wants to know if the city of Yachats is going to return his $54.72.

Lauritzen, a retired accountant and former finance consultant for the city, discovered an error in his water bill two months ago. Since 2016, when the city revamped water rates, it had been charging him – and maybe 850 other accounts – twice for payments into the water and sewer system’s capital improvement account.

He notified the city in April. In May, water bills throughout the city were adjusted – most households seeing a drop between 55 cents and $1.10.

Tom Laurenitz
Tom Lauritzen

Based partly on that mistake and another study of large users, Tuesday afternoon the city’s Public Works and Streets Commission voted unanimously to endorse a water and sewer rate study, which is already in the city’s proposed 2019-20 budget.

To drive home his point Tuesday night, Lauritzen had three questions for the City Council: How does he get his money back? Is this an isolated incident or does it affect everyone? And, are there other water and sewer rate issues?

“We don’t have an answer for you today,” Mayor John Moore replied.

The double-billing for sewer and water capital improvements is estimated to total $37,000 since July 2016, Lauritzen said Wednesday.

Earlier Tuesday, the public works commission looked at recommendations from Lauritzen, chairman Bob Bennett and member Tom Fisher. The trio have been working on rate issues for months and asked the committee if it wanted to try to fix rate issues itself or look for outside expertise.

The commission has also been trying to decide what to do about a study by Bennett and Fisher that showed 10 large water users are being undercharged a total of about $2,000 a month and two large users overcharged by more than $400 dating back to when rates were changed in February 2016 and then adjusted for inflation five months later.

The names of the businesses have not made public, but they are motels, restaurants, an assisted living facility and a large apartment complex.

The proposed city budget for 2019-20 is calling for a water and sewer rate study estimated to cost $24,000.

After a lengthy discussion, the public works commission decided to endorse the outside look. Several commissioners initially sided with a suggestion that the commission involve local residents to sort out the rate issues.

But City Manager Shannon Beaucaire and water system leader Rick McClung said an outside specialist who can factor in different use rates, future construction costs and other factors would be of great help in sorting out mistakes, true costs and planning for the future.

“I’m really curious what an outside look would bring,” McClung said.

Drew Roslund

Drew Roslund, one of the owners of the Overleaf Lodge and Fireside Motel, urged the commission to get outside help.

“It looks like I’ve been billed incorrectly but I’m paying the bills sent to me,” he said.

Roslund said he served on the public works commission for eight years, oversaw several water rate studies but said Tuesday he never could understand the 2016 rate changes.

“The previous smart people came up with a plan that wasn’t implemented right,” he said. “Get an expert and do it right.”

Fisher said the commission should get it right with a new study.

“No mistakes this time,” he said. “The perception of an outside expert can give the public confidence in the results.”

 

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