Be Beer er Co Co. Cobourg Council Meeting Monday, August 12 th , - PowerPoint PPT Presentation

Wi William liam St Street reet Be Beer er Co Co. Cobourg Council Meeting Monday, August 12 th , 2019

Who We Are • William Street Beer Co. (WSBC) • Micro Brewery • Located in Cobourg • Opened in 2014 • Partner in Cobourg’s Vibrant Small Business Community

The Is Issue • Overcharged for water and sewer for a total of $8,050 • Despite demonstrating and providing evidence the water was not consumed, LUSI refuses claim for reimbursement

Background • Moved to Victoria Place, 975 Elgin St. W. in September, 2016 • December 18 th , 2017, a new digital water meter installed and the over-billing problems started • Over approx. the next five months, WSBC was billed for undelivered water and the related sewer fees • Over-billing refund requested is $10,101 Water and Sewer $8,050 + Interest $2,051

Impact on WSBC • Reduced cash needed to run the business • Planned products could not be produced • Plans were disrupted • Revenue decreased • Opportunities were lost • Management and employees were stressed • Business suffered

Two Questions to Consider • Could the amount of water have possibly been consumed? • If not, is there a plausible explanation for the excessive meter readings?

Water Volume 1 Cubic Meter (M3) 1 Litre x 1,000 =

LUSI Claims • In 133 days (December 18, 2017 to April 30 th , 2018) • WSBC was charged for 2,416.58 M 3 • An average of 18.17 M 3 per day • That’s 18 vats per day!

Resolution Efforts • WSBC had numerous meetings − LUSI Staff − LUSI Management − Town CAO & Public Works − Mayor (former) Brocanier − Mayor (former) Coombs • Requested to present to LUSI’s Board a number of times – Denied. • No resolution was achieved

LUSI Investigation • LUSI did not test the meter on site • LUSI observed no leaks • Plumber’s inspection found no leaks • No evidence of a leak • No wet floor • No running water sound • LUSI can’t explain where the water went

LUSI’s Position • Must have changed the production process or there must be a leak • Claim the meter is correct • Pay the bill or be disconnected

Alternative Explanations Ignored • Electronic interference from a nearby water-cooled condenser motor • LUSI staff surprised that the water meter was located so close to this electrical equipment and motor • Public Works Staff also suggested proximity interference during meeting with the CAO

Meter, Condenser and Drain Line

Reasons Water Cooled Condenser Was Not Consumption Source • Excessive water usage didn’t reduce back to normal levels until 2+ days later • Valves fail slowly over time as opposed to working periodically (fluctuations in water consumption) • Supply line to the condenser is only ¼” and could not flow that much water unless under great pressure (Town’s water supply isn’t pressurized) • Drain line is exposed and flows to a floor drain. Water would have been spraying all over the place

Meter Data Log Meter Data Log 25.000 Data Log 2 Data Log 1 Condenser 20.000 Replaced 15.000 10.000 5.000 0.000

In Industry ry Caution • Reasonable distance between a smart meter (an electrical device) and industrial electrical equipment is: − Best practice − Common sense • Colorado River Agency: Electrical Services − Metering installation requirements 301.9-1 “ Unacceptable equipment in meter rooms ” − Equipment not permitted within the electric meter room includes, but is not limited to following: 1. 3. Mechanical equipment – including motor /generator sets

WSBC’s Defense • WSBC keeps detailed production records: − Including water usage − Quality & cost control − CRA calibration required for excise tax − Two CRA audits at this location; both passed with no issues • WSBC records match the meter readings when LUSI meter works correctly

William Street Beer Co. Water Consumption - Litres Brew Date Batch BBT Volume Packaging Date Water Consumed Cooling Process Brewing Total Cleaning Fixture Ave. TOTAL Cubic Meters Per Day Dec. 3, 2017 Winter Warmer 720 Dec. 19, 2017 972 432 1404 220 12,000 13,624 13.62 0.45 Jan. 5, 2018 Cliff Top Pale Ale 1590 Jan. 25, 2018 2146.5 954 3100.5 Jan. 9, 2018 Farmstand Lager 800 Mar. 9, 2018 1080 480 1560 Jan. 24, 2018 Monkey Mountain 810 Mar. 14, 2018 1093.5 486 1579.5 660 8,000 14,900 14.90 0.50 Feb. 15&16, 2018 North Shore Ale 1560 Mar. 14, 2018 2106 936 3042 Feb. 22, 2018 Farmstand Lager 780 Mar. 22, 2018 1053 468 1521 440 8,000 13,003 13.00 0.43 Mar. 2018 NONE 0 N/A 0 0 0 0 9,000 9,000 9.00 0.30 Apr. 4, 2018 Farmstand Lager 790 Apr. 23, 2018 1066.5 474 1540.5 Apr. 11, 2018 Red Sky Amber 1750 Apr. 26, 2018 2362.5 1050 3412.5 Apr. 26, 2018 Cliff Top Pale Ale 1820 May. 20, 2018 2457 1092 3549 660 10,000 19,162 19.16 0.64 May. 2, 2018 Farmstand Lager 820 May. 23, 2018 1107 492 1599 May. 18, 2018 Orange Cream Cycle 890 Jun. 6, 2018 1201.5 534 1735.5 May. 22&23, 2018 North Shore Ale 1720 Jun. 13, 2018 2322 1032 3354 May. 24, 2018 Farmstand Lager 835 Jun. 21, 2018 1127.25 501 1628.25 880 9,000 18,197 18.20 0.61 Jun. 14, 2018 White Sail Hefeweizen 810 Jul. 3, 2018 1093.5 486 1579.5 Jun. 15, 2018 Farmstand Lager 860 Jul. 11, 2018 1161 516 1677 Jun. 22&23, 2018 Red Sky Amber 1850 Jul. 11, 2018 2497.5 1110 3607.5 660 10,000 17,524 17.52 0.58 July 9, 2014 Farmstand Lager 860 August 8, 2014 1161 516 1677 July 17&18, 2018 Cliff Top Pale 1650 August 10, 2014 2227.5 990 3217.5 July 19, 2018 Orange Cream Cycle 910 August 14, 2014 1228.5 546 1774.5 660 15,000 22,329 22.33 0.74 Aug 10, 2018 Farmstand Lager 860 Sep 10, 2014 1161 516 1677 Aug 15&16, 2018 North Shore Ale 1710 Sep 17, 2014 2308.5 1026 3334.5 Aug 20, 2018 Harvest Ale 850 Sep 17, 2014 1147.5 510 1657.5 660 17,000 24,329 24.33 0.81 Sept 14, 2018 Farmstand Lager 790 Oct 10, 2014 1066.5 474 1540.5 Sept 18&19, 2018 Red Sky Amber 1790 Oct 8, 2014 2416.5 1074 3490.5 440 14,000 19,471 19.47 0.65 Monthly Average 3,427.3 4,626.8 2,056.4 6,683.2 670.0 10,318.2 17,671.4 17.67 0.59

Water Consumption Costs Month Consumption W Srvc. Chrg. Fire Protect W Usage B1 W Usage B2 S Srvc. Chrg. S Usage B1 S Usage B2 Total Charged Delta 1.5% /mo. Total Dec. 2017 13.62 $12.23 $25.79 $14.30 $0.00 $13.35 $18.52 $0.00 $84.19 $715.36 $631.17 overcharge $0.00 $631.17 Jan. 2018 14.90 $12.66 $25.79 $17.14 $0.00 $13.83 $21.16 $0.00 $90.57 $1,989.38 $1,898.81 overcharge $9.47 $640.63 Feb. 2018 13.00 $12.71 $25.79 $14.95 $0.00 $13.88 $18.46 $0.00 $85.79 $1,832.45 $1,746.66 overcharge $38.09 $2,577.53 Mar. 2018 9.00 $12.71 $25.79 $10.35 $0.00 $13.88 $12.78 $0.00 $75.51 $1,839.30 $1,763.79 overcharge $64.86 $4,389.05 Apr. 2018 19.16 $12.71 $25.79 $22.03 $0.00 $13.88 $27.21 $0.00 $101.62 $1,442.46 $1,340.84 overcharge $92.29 $6,245.14 May. 2018 18.20 $12.71 $25.79 $20.93 $0.00 $13.88 $25.84 $0.00 $99.15 $239.07 $139.92 overcharge $113.79 $7,699.77 Jun. 2018 17.24 $12.71 $25.79 $19.83 $0.00 $13.88 $24.48 $0.00 $96.69 $195.91 $99.22 interest $117.60 $7,957.28 Jul. 2018 22.10 $12.71 $25.79 $25.42 $0.00 $13.88 $31.38 $0.00 $109.18 $185.27 $76.09 interest $120.85 $8,177.35 Aug. 2018 24.84 $12.71 $25.79 $26.14 $3.02 $13.88 $32.28 $3.71 $117.53 $183.73 $66.20 interest $123.80 $8,377.24 Sept. 2018 19.14 $12.71 $25.79 $22.01 $0.00 $13.88 $27.18 $0.00 $101.57 $157.45 $55.88 interest $126.65 $8,570.10 Oct. 2018 25.47 $12.71 $25.79 $26.14 $3.92 $13.88 $32.28 $4.82 $119.54 $167.59 $48.05 interest $129.39 $8,755.37 Nov. 2018 14.72 $12.71 $25.79 $16.93 $0.00 $13.88 $20.90 $0.00 $90.21 $128.89 $38.68 interest $132.05 $8,935.47 Dec. 2018 21.15 $12.71 $25.79 $24.32 $0.00 $13.88 $30.03 $0.00 $106.74 $147.69 $40.95 interest $134.61 $9,108.76 Jan. 2019 17.68 $12.71 $25.79 $20.33 $0.00 $13.88 $25.11 $0.00 $97.82 $128.12 $30.30 interest $137.25 $9,286.96 Feb. 2019 24.85 $12.71 $25.79 $26.14 $3.03 $13.88 $32.28 $3.73 $117.56 $140.55 $22.99 interest $139.76 $9,457.03 Mar. 2019 18.70 $13.22 $25.79 $23.56 $0.00 $14.44 $27.68 $0.00 $104.69 $120.61 $15.92 interest $142.20 $9,622.22 Apr. 2019 21.03 $13.22 $25.79 $26.50 $0.00 $14.44 $31.12 $0.00 $111.07 $122.92 $11.85 interest $144.57 $9,782.71 May. 2019 14.16 $13.22 $25.79 $17.84 $0.00 $14.44 $20.96 $0.00 $92.25 $102.94 $10.69 interest $146.92 $9,941.48 Jun. 2019 18.06 $13.22 $25.79 $22.76 $0.00 $14.44 $26.73 $0.00 $102.93 $114.70 $11.77 interest $149.28 $10,101.45 TOTAL 347.02 $1,904.61 $9,954.39 $8,049.78 Refund AVERAGE 18.26 $100.24

Cubic Meters per WSBC M3 WSBC vs LUSI Water Usage month LUSI M3 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00 Sep. 2017 Oct. 2017 Nov. 2017 Dec. 2017 Jan. 2018 Feb. 2018 Mar. 2018 Apr. 2018 May. 2018 Jun. 2018 Jul. 2018 Aug. 2018 Sep. 2018 WSBC Tracking LUSI Meter Sep. 2017 19.22 0.00 Oct. 2017 16.76 0.00 Nov. 2017 17.37 0.00 Dec. 2017 13.62 224.44 Jan. 2018 14.90 611.05 Feb. 2018 13.00 548.30 Mar. 2018 9.00 556.05 Apr. 2018 19.16 413.80 May. 2018 18.20 62.94 Jun. 2018 17.52 17.24 Jul. 2018 22.33 22.10 Aug. 2018 24.33 24.84 Sep. 2018 19.47 19.14