Water Watch NYC

Everything you need to know about water in NYC.

Rate Hikes, Liens and Service Termination

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The debate over further DEP rate hikes rages on. Today, the New York City Council gathered for a hearing to discuss water bill delinquencies and collection strategies targeting delinquent customers.

The meeting was jointly chaired by Democrats David Weprin of the Finance Committee and James Gennaro of the Environmental Protection Committee. The bulk of the meeting was spent hearing from NYC DEP Commissioner Emily Lloyd and NYC Office of Management and Budget Director Mark Page.

After about a half hour of pleasantries and thinly guised praises of the work performed by the DEP since they took over the responsibility of water bill collecting from the Department of Finance, Lloyd immediately got defensive about the DEP’s proposals that the City Council is trying their damnedest to reject.

The first of these proposals is an additional 11.5-18.5% rate increase in water/sewer bills. (The exact rate of the increase is unknown at this point. The numbers being thrown around most at today’s meeting were 11.5%, 18% and 18.5%.) Like Water Watch NYC, the city council is against the implementation of these new rate increases.

According to the DEP’s consultant, Booz Allen Hamilton, the DEP should have the right to levy stand-alone lien sales and terminate service. (To view the complete Booz Allen report, click here. To download it, right-click and select “Save Link As….” Either way, be aware that it’s 111 pages long.) The DEP insists it must raise rates unless it is permitted to terminate service and sell liens.

Water Watch NYC sees these continuous rate hikes as unfair posturing by the DEP, political arm-twisting to try and get the city legislators to comply with their other demands. Clearly, New Yorkers can’t afford these soaring water and sewer rates and when they begin to impress this opinion on the city council, the DEP believes that the city council will have no choice but to allow stand-alone lien sales and the Water Board will have no choice but to allow service termination.

Which begs the question: What’s wrong with service termination and stand-alone lien sales? The problem with service termination is that it doesn’t actually penalize the perpetrators. The vast majority of buildings in New York City are inhabited by parties other than the owner. This means that tenants who are paying their rent will lose their water service because their landlords didn’t pay his water bill.

Additionally, the logistics of service terminations are a nightmare. Turning off city water mains is a process much more complicated than turning off other utilities like gas and electric. Imagine a scenario where the DEP sends representatives to turn off an apartment building’s water. As soon as they get there, the owner sees that they’re serious and he runs down to pay his bill. A few hours later, DEP representatives have to go through the process all over again just to turn the water back on. Part of this process would be inspecting every single apartment in the building to make sure no water fixtures are on so that water doesn’t start gushing as soon as water service is restored.

But even besides these complications, politicians still don’t want the DEP to have the power to terminate service. When the newspapers begin reporting on all of the families who can no longer live in their homes without water the elected officials are the ones that get blamed.

As for the ability to sell liens against water bill non-payment, there really is no downside. So why is the city council so resistant to permitting the DEP this power? The answer is pretty simple. The DEP is a mess. The city council has been asking the DEP to clean up their act for years and the DEP has been reluctant to comply. Sure, they’ve lowered the wait time on customer service phone calls considerably, but they refuse to allow the formation of any kind of oversight committee to supervise their procedures.

Water Watch NYC estimates that nearly 10% of all water bills are inaccurate. The current procedure that’s in place to dispute these bills is severely lacking. The DEP doesn’t accept any evidence that their bills, reads or estimates are incorrect and regards the information offered by their employees as infallible.

For years the city council has asked the DEP to set up an independent body to which people can present their cases of unjust water bills and be judged fairly based on evidence as in any court of law. Because the DEP has refused to censure itself, the city council has refused its request for lien sales.

Of course the DEP responds that part of its cleaning up its act would be to collect delinquent accounts, for which they need to be able to sell liens. The city council responds that there are plenty of other steps that the DEP can take to clean up their act before they can sell liens. And the bickering continues from there.

Meanwhile, while lien sales and service terminations are not yet implemented, the DEP still sees it fit to penalize plenty of upstanding citizens by raising rates as much as 30% for everyone, regardless of whether they’ve paid their water bills or not.

If your council member was present at the meeting you may want to call him or her to commend them for attending the meeting and/or to voice your opinion on the matter.

The following council members were present at the meeting: Gale Brewer (Democrat, Manhattan’s 6th district), Leroy Comrie (Democrat, Queens’ 27th district), Bill de Blasio (Democrat, Brooklyn’s 39th district), Mathieu Eugene (Democrat, Brooklyn’s 40th district), Lewis Fidler (Democrat, Brooklyn’s 46th district), James Gennaro (Democrat, Queens’ 24th district), Vincent Gentile (Democrat, Brooklyn’s 43rd district), Alan Gerson (Democrat, Manhattan’s 1st district), Robert Jackson (Democrat, Manhattan’s 7th district), Oliver Koppell (Democrat, The Bronx’s 11th district), Melissa Mark Viverito (Democrat, Manhattan’s 8th district), Michael McMahon (Democrat, Staten Island’s 49th district), James Oddo (Republican, Brooklyn and Staten Island’s 50th district), Domenic Recchia (Democrat, Brooklyn’s 47th district), Helen Sears (Democrat, Queens’ 25th district), James Vacca (Democrat, The Bronx’s 13th district), Peter Vallone (Democrat, Queens’ 22nd district), David Weprin (Democrat, Queens’ 23rd district).

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.

7 thoughts on “Rate Hikes, Liens and Service Termination

  1. very interesting.
    i’m adding in RSS Reader

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