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Frontage is Dead — Long Live the MCP Program

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Water Conservation – The big loser in the 2012 Water & Sewer Rates Proposal.

There are two primary methods to bill for water and sewer in NYC. The first method is “Metered Billing” under which the size of one’s bill is solely based upon consumption. The more water consumed the more you pay. If you conserve water you realize an immediate saving.  The second method is Flat Rate billing in which you pay a fixed fee based upon certain characteristics of your building. Once you fee is fixed you can use as much water as you wish without incurring any additional cost. The two most prevalent Flat Rate billing methods in NYC are Frontage and the Multifamily Conservation Program (MCP). Under frontage you pay for the width of the front of your property (hence the name Frontage), height of the building, number of apartments, number of plumbing fixtures and other physical attributes, and under the MCP program you pay per apartment.

For as long as I can remember conservationist have been urging the NYC Water Board to eliminate frontage billing. Experience has shown that homeowners  will reduce their consumption if they  are forced to pay for what they use. The Water Board agreed with this in principle, and  back in the 1990s they mailed out letters to all customers stating that frontage would end in two years. Customers were urged to install meters and repair their leaks or face large bills. At the last moment the Water Board had cold feet and pushed off the deadline for another two years. The pattern kept repeating itself for over a decade. Finally in 2010 the Water Board said they were serious and Frontage would end in 2012. When members of the Water Board were asked why anyone should believe that 2012 would be different, they pointed out that Mayor Bloomberg was a lame duck and serious about conservation.

Well they are finally doing it. On March 30 the Water Board announced the end of frontage.  Bloomberg is good as his word. There is, however, one caveat: Everyone on frontage will be moved to the Multifamily Conservation Program. The rate for the MCP program will be the average of all frontage rates. In short all that has been accomplished with fourteen years of conservation lobbying is a change in the name of the flat rate billing program!

To be honest the program will require all building on the MCP program to install Water Sense Plumbing Fixtures and repair any leaks. This should result in some savings. The problem is that there is no motivation for anyone to continue repairing their leaks unless you believe the DEP when they say that they will be monitoring your consumption and throw you off the program if they detect leaks.

I never believed that the DEP would eliminate frontage. There are just too many reasons to keep billing on fixed rates. Fixed rate bills are generally paid on time by the mortgagee while metered bills are paid by the homeowners and chronically late. Furthermore: fixed rate bills are paid a year in advance. But most important is it really fair to ask property owners to pay fluctuating bills caused by their tenant’s consumption while maintaining fixed rate Rent Stabilization?

Author: Hershel

Hershel is a Water Management Engineer with Ashokan Water Services, where he's actively involved with conservation and building design issues. Prior to his Ashokan, he was with the City of New York. He is a former President of the New York chapter of the American Society of Plumbing Engineers (ASPE) and is a member of AWWA, NYARM and BOMA. Hershel is an avid kayaker.

4 thoughts on “Frontage is Dead — Long Live the MCP Program

  1. Sad how people only think about conservation only when its nessasary. Bloomberg thought it was. Check this out.
    http://www.uswaternews.com/archives/arcconserv/2mayblo2.html

    • Foxhall is a beautiful venue. I rnceetly got married there in the newly enclosed Grand Pavilion and it was a fabulous experience. The staff at Foxhall Resort are amazing!! Overall a perfect experience. I highly suggest you visit.

  2. Lee, It’s a completely dirnfeeft product. No, it is not on the river, but it is on a lake with no visible neighbors Unlike Dean Gardens, This is a timeless and classic estate property. In it’s current form, this is a move-in condition private estate. Dean Gardens was a tear down. The potential for this property is vastly superior because of its location 5 minutes from Downtown Alpharetta, 5 minutes from Windward Parkway, etc It could be developed, unlike Dean Gardens (no thanks to the good folks in CCOS) or it could be an equestrian estate.The detail, design and attention to detail are something that I wish every home could be built with.

  3. …and along with continued rising property taxes (despite a continued reession), high unemployment and high insurance rates, how does NYC intend to keep middle class folks living in NYC? Who is going to keep paying for all the 3rd world riff-raff who not contributing anything ?

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