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6.38 Page 5 Exhibit A Finance Department Revenue Services Division August 28, 2006 Administrative Policy - Utility Water Leak Credits (A) QUALIFICATIONS: To qualify for a water leak credit, evidence of having repaired the leak is required. Such evidence may consist of a plumber's repair bill, materials receipt, or field verification from a Public Works Services (Meter Shop) employee. Customers must also submit a written request for a water leak credit and in the letter describe the nature of the problem. Water leak credits are granted on a one time on Iv per customer basis for the history of the account. Furthermore, water leak credits will not be provided beyond a two-month billing cycle. (B) CREDIT CAlCULATION: The water leak credit is calculated by first determining the preceding two (or three years if available) years units of consumption during the same time period to calculate the average consumption for the time period in question. This average is then deducted from the units of consumption during the leak period to arrive at an estimate of the amount of water usage attributed to the leak. The credit adjustment for the leak is calculated by recalculating the customer's water charges by applying the lifeline rates (the lowest tier rate) to the water consumption attributed to the leak. This amount is then added to the basic service charge and average water consumption to produce a revised bill. The revised bill is then subtracted from the initial bill to arrive at the credit amount. The credit amount is then used to reduce the customer's Initial bill. To illustrate: Customer Bob Smith calls to request a water leak credit for his July 1, 2004 - August 30, 2004 utility bill where consumption was recorded at 53 units and water charges amounted to $149.44. A review of his utilfly history shows that for the past two years, 19 and 23 units were consumed for his July 1, 2003 - August 30, 2003 and July 1, 2002 - August 30, 2002 utility bills, respectively. The average units of consumption for this period are 21 units, and the water consumption attributed to leak is 32 units (53 less the average). As such, the credit calculation would be computed as follows: Basic Service Charge 0-10 Units at Lifeline 11-25 Units rate Revised leak charge Total $22.34 11.00 21.23 3520 $89.77 ($11.17 per month x 2 months) (10 units x $1.10) (11 units x $1.93) f32 units x $1.10) 53 units The resultinq cmdH is $59.67 ($149.44 original less $89.77 revised bill).