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COLLEGE CAMPUS – WATER/SEWER
Situation:
A medical college campus was interested in a comprehensive utility audit. Trend analysis and like kind comparison indicated several buildings down line from the main water meter were using excessive amounts of water. After informing the appropriate college officials, it was explained that the buildings always use that much water and that the buildings needed to use that much water to perform their teaching and lab functions.
Solution:
Unconvinced that the amount of water flow was normal, an extremely thorough inspection and detailed inventory of every devise that consumed water was performed in each building supplied by the water meter. The total volume of water consumed inside the buildings did not equal the amount of flow registered on the meter.
A leak detection company was hired and a major leak was discovered from the 4” supply line. After the leak was repaired, the water/sewer cost on that one meter dropped more than $20,000 each month. It had been leaking for several years.
Result:
$147,500 sewer credit granted retroactively. More than $250,000 annually flowed to the bottom line thereafter.
Situation:
A large hospital was receiving a bill for estimated water/sewer readings on its main plant meter. A detailed inspection of the area supplied by the meter revealed a 6” pipe that led underground and out of the building. Hospital operations officials explained that the pipe at one time supplied softened water to a laundry facility located across the street. That facility was no longer in existence.
Solution:
It was determined that when the laundry facility closed and no longer needed the water from the plant, the meter suddenly called for only 20% of the water as before. The water department’s computer interpreted this significant drop in consumption as a meter malfunction and automatically began to estimate the reading at the same level as when the laundry was operational.
Result:
After much explaining to the water department and meter flow tests for verification, a $136,000 water refund was granted.
Situation:
A 1000 unit apartment complex had 8 water meters supplying the campus. Trend and comparison analysis revealed the overall consumption was approximately 20% higher that expected.
Solution:
A detailed analysis of each individual meter with Error Detection Software revealed that the water department had inadvertently added an extra zero to the register of one of the meters causing that reading to be 10 times higher than actual.
Result:
After a thoroughly documented explanation was presented to the water department, a $350,000 credit was immediately applied to the bill.
Situation:
A sports arena’s electric bills were audited for accuracy. A detailed site inspection was performed to insure the bills reflected the actual meter configuration and were free from overcharges.
Solution:
Our custom spreadsheets developed to utilize the Error Detection Software revealed a minor change within the underlying tariffed rate structure on one meter that was charged but not indicated on the bill. Upon initial presentation of the facts, the utility company argued the situation was a “gray area” and that it was not their responsibility to return the overcharge.
Result:
After much negotiation, a settlement satisfactory to both parties was reached. A credit of $54,000 was posted to the bill. In addition, a change to the utility company’s billing software was made to insure this type of charge would be reflected on any customer’s bill in the future.
Situation:
A property tax appeal was authorized on a group of high-rise medical office buildings. The taxing authorities contended that the buildings benefited from additional value derived from the fact that they were attached to a hospital via skywalks. Furthermore, the county appraisers argued that the physician leases in the buildings contained below market rents and should not be used to establish fair market value.
Solution:
Through the consultant’s knowledge and expertise, a well developed appeal was presented along with the aid of a third party appraisal. After careful review of the Cost, Market and Income approaches to value, an agreement concerning fair market value was reached on all properties and the appeals were settled prior to the State Board of Equalization hearings.
Result:
A collective property tax savings of $625,000 annually was enjoyed by the client. The lower appraised value carried forward on subsequent reappraisals.