Huge Water Bill Surprises Pinehurst Couple

As of Friday, December 23, 2011

Santa Claus delivered a $102,348.36 utility bill to the household of Jerome and Siriporn Phelps. The couple would have preferred coal.

The Pinehurst couple's bill from Moore County Public Utilities shows water usage of 900,466 gallons for the November billing period. Payment due date is Dec. 28.

"I knew the check wasn't going to clear the bank," Phelps joked in a telephone interview. He pays his utility bills by bank draft.

But when Phelps tried to reach the county's public works accounting office about his water bill, the telephone lines were tied up with calls from other customers unhappy with bill problems of a different sort.

That glitch involves a series of billing problems developing after the county utility system underwent a major upgrade involving a changeover from manual meter reading to remote read meters.

Public Works Director Randy Gould estimates that his office staff fielded 300 calls from confused and sometimes irate customers concerned about strange water bills.

Those problems were generated by a coordination lapse between the meter upgrade installation and the software developed to facilitate the meter readings.

Installation of the upgrade began several weeks ago with meters replaced by equipment that can be read by remote control from a motor vehicle driving beside households with utility accounts.

The new system is a big time-saver, because the meter reader no longer must park the vehicle, get out, walk to the building and read the meter up close. Now, the meter reader simply drives by the building, aims the remote reader at the meter and the usage is recorded on a laptop computer in the vehicle.

That system, already in use in Southern Pines and elsewhere, saves money as well as time, and Gould says he is already considering staffing adjustments because the county system will need fewer full-time meter readers. It's likewise supposed to be more accurate, but the customers with mixed-up bills earlier this fall might disagree.

Gould says the problem has been resolved and credited Southern Software of Southern Pines with helping work out the coordination problem. Southern Software is the firm headed by Larry Caddell, chairman of the Moore County Board of Commissioners.

"I think we have corrected all the mistakes," Gould said.

Actually, the bills were not really incorrect, he said, but were instead "just not complete" because of the coordination glitch. Gould said his office just completed the second billing under the new system and everything seems to be running smoothly again.

Remote meter readers have been used in parts of the county utilities' system for a number of years, but not all of the Pinehurst system had been converted.

Moore County Public Utilities has about 12,000 customers. Of that number, about 7,700 are on the Pinehurst system.

As for the $102,348.36 utility bill sent to the Phelps household, that is "a totally different problem," said Peggy Deaks, of the county utilities' accounting staff. The computer printout of the bill was apparently lacking a key coding that would have calculated the correct water usage and the correct amount due. The accidental omission skewed the figures.

By the time The Pilot caught up with Jerry Phelps, he was in a jollier mood and was laughing. He had already cleared up the glitch with Deaks.

"Does this set a record for the highest water bill ever in Moore County?" Phelps asked.

It is, according to Deaks, who has worked in utility billings about 30 years. She cannot remember such a big bill and says neither Moore Regional Hospital nor Pinehurst Resort pays that much for water.

When the bill was straightened out, the total was closer to $39. Phelps' check will clear the bank.

Contact Florence Gilkeson at florence@thepilot.com.

More like this story

herecomesthescience 1 year, 4 months ago

Mine was almost double, and crazy high. I have heard tons of stories like this, they need to fix this quick!

Toda 1 year, 4 months ago

" Southern Software is the firm headed by Larry Caddell, chairman of the Moore County Board of Commissioners."

Customer service on the NO-BID Utility Software sold to Moore County. Conflicts of interest continues to permeate the political landscape of our county government.

Unlimited Work Order Templates Track Customer, Location, Meter and Billing Histories Interface with multiple Hand Held Meter Reading devices Multiple billing options, including postcard or email Rich reporting options including drill-down

Has anyone read on a conservative blog where two commissioners with vested interest in Southern Software, Inc was quoted by an "inside" source according to Brantly Clifton that they would not continue to charge the county for their software as long as they were on the Board?

Has a familiar ring of extortion. SS, Inc. chose not to bid on services to their products currently in use by the county ~ an "inside" source said, "they didn't want to have to put their contract out to bid". Well they have made an easy $40,000.00 a year for the past several years.

The amount that a sworn county commissioner could charge for a product has risen from $24,000 to $40,000 in counties where the population of any municipality is not greater than 15,000. Thanks to the support of our House and Senate Representatives, the go-alone-to-get-along philosophy has provided legislation to keep ethical conduct just under the radar.

Toda 1 year, 4 months ago

A copy and paste from a Web site portal by Pinehurst Business man Brantly Clifton a close friend and confidant of two commissioners.

A well-placed source within Moore County government tells me that Southern Software — the Southern Pines-based developer of county public safety’s administrative software package — is officially out of the county budget. The company had been paid approximately $24,000 per year to maintain their software installed on the county network and to support county employees using the software package. Critics have cried foul about the payments because Commissioners Nick Picerno and Larry Caddell each serve on the company’s board. (Picerno founded the company.) My source says the move was strongly encouraged and supported by Caddell and Picerno. Southern Software does millions of dollars in business nationwide. $24,000 from Moore County was not a make-or-break deal for the company. Southern Software will continue its work with Moore County free-of-charge. My source says this scenario will remain in place for as long as either Caddell or Picerno serves as a Moore County commissioner AND has a professional tie to Southern Software. It’s not unusual to pay software companies for support. Intuit charges for support of Quickbooks. Apple charges for support of their products (more than one year past the date or purchase). It MAKES SENSE to have Southern Software support their product. What doesn’t make sense is smearing a company JUST for the sake of scoring few political points.

What Mr. Clifton fails to mention in his biased piece is the ethical issues of having two commissioners with positions of President and CEO operating a company and the taxpayers money. I'm sure others have details to share with respect conflict of interests.

M3rules 1 year, 4 months ago

My water bill went from $130.00 to $900.00 in one month last year as did several of my immediate neighbors. I called and wrote the jack@$$ at the county public works office and complained that it could not be correct. I was repeatedly told that I "must have a leak". I knew there was not leak and had everything checked "professionally". No leak. In the end I was told by the county that they were right and I was wrong and was forced to pay the bill as sent. I knew there was a problem with the drive by readings, but was treated like an idiot when I questioned my bill. I was upset then, but now I am really mad.

golfman808 1 year, 4 months ago

Now that the Water department is up to modern technology with remote meter reading equipment, why don't they pass those savings along to their customers,, Billing $6.10 per meter per month is outrageous, and then this charge is compounded into the sewer rate. Over 35% of my yearly water bill is not usage but Meter Reading Charges.

Raise my usage rates, but please lower my fixed costs of buying your water.

recondo 1 year, 4 months ago

I had the exact same problem that M3rules had. went from 115.00 to 675.00 in a month, when questioned i too was told i must have a leak and was actually given blue toliet tablets by the county. i had the house checked and under the house checked and no leaks, however there was standing water inside the meter box, finally had to pay the bill and continue to pay the bill at a crazy rate even though it is where my pipe hooks to their meter.Moore county made it for years with out a water system and i am lucky enough to still have a well so in a personal revolt it is my intention to instead of paying the county an inflated price to just spend the money and return back to the "good water" that was always cold and clean and only costs what little the electricity bill ran to pump it up. i think if a few more of us out there did this it would start tearing into that bottom line and then never have to deal with the other rip off expense the county created by not accepting phone payments themselves but rather having it handled out of county by a company that charges 2.00 per hundred to the customer who uses credit or debit cards........

BrantClifton 1 year, 4 months ago

Really, toda? (AKA Tommy Davis)

I am sure that Mr. Woronoff & co. would appreciate that -- if you are going to talk about me and my blog -- you go do it at www.dailyhaymaker.com. Also, I know the Mr. Clifton you cite in your rant would appreciate you not invoking his name. His name is similar to mine, but he is not ME.

Also, get your info right. I am neither a close friend or confidant of ANY Moore county commissioner. (I doubt that any of them could pick me out in a lineup.) You, and Ms. Gilkeson with this paper, worship at the feet of commissioner Tim Lea. You are embarrassed that I picked apart all of that garbage Tim fed you to spread around.

Also, The Daily Haymaker had this story on the water bills at least a month ago.

So, Tommy, come on over to my neighborhood (www.dailyhaymaker.com) and spout some more of your nonsense. You can have as much space -- unedited -- as you want. I have already done so for your buddy Mr. Francis.

native 1 year, 4 months ago

This deal and all the other deals with Southern Software and the County concerns, stinks to high heaven. Most honest people would go the extra mile to not even have anyone remotely suspect that they were being shady. Very troubling as more "deals" come to light.

SoPinesNo1 1 year, 4 months ago

In general, remote read meters are quite reliable, and many utilities are replacing their 20+ year old meters with them. Existing meters that are 20 years old or more, and have never been checked or re-calibrated, are a constant loss of revenue for water utilities.

Since the software interface problems have surfaced, I certainly would suggest that those of that paid extremely high bills request further consideration of a refund, expecially if the bills return to normal levels after the software bugs are fixed.

Toda 1 year, 4 months ago

"BrantClifton 3 hours, 14 minutes ago"

"if you are going to talk about me and my blog" I've visited your biased website. You are short of facts as well. You invoked my name as well indicating a correlation between Commissioner Tim Lea and myself. Wrong! I have never met, sit down to lunch, or offered a friendly handshake. So let's not talk about using anyone's name in connection with me as well.

" know the Mr. Clifton you cite in your rant would appreciate you not invoking his name. His name is similar to mine, but he is not ME." The copy and paste above came directly from your website unedited. Your name, your website!

"You, and Ms. Gilkeson with this paper, worship at the feet of commissioner Tim Lea." The only worshiping I do is in church. I can't speak for anyone who writes or works for The Pilot Newspaper. I have never met Mr. Woronoff. So whose throwing out diatribes and thoughtless innuendo?

" I picked apart all of that garbage Tim fed you to spread around." Didn't you invoke my name as Tim Lea's mouthpiece? Wrong! Any information I post on these blogs are verifiable. Unlike some who are too lazy to go to the county website or send an email to request information. You haven't picked apart anything...just what you were told to write. Get your facts straight.

"and spout some more of your nonsense." Facts are not nonsense when they come from reliable sources. What documentation do you have to support your opinions?

" I have already done so for your buddy Mr. Francis." I have never had the privilege of meeting Mr. Francis. I can say we are Facebook friends as well as Commissioner Nick Picerno.

I stand ready to defend my comments and statements. Didn't the county purchase the Municipal Utility Software from Southern Software, Inc. without a formal bidding process. Who has voted for the bonds for water lines and life stations?

Toda 1 year, 4 months ago

"im_a_harleyman 3 hours, 54 minutes ago" TODA is known for his penchant for fact less ramblings!

Kinda got stung the last time you tried to head-to-head with me on another blog. Here's a challenge to you since you are so opinionated when it comes to slinging out feces to see what will stick! Prove me wrong on anything I write on these blogs! Or are you computer illiterate? Every document I cite is verifiable ~ what do you have to offer? Nothing! But snide remarks....

Toda 1 year, 4 months ago

"golfman808 4 hours, 35 minutes ago" County Commissioners have to save face with taxpayers and voters. They voted for the General Obligation Bonds

Seven Lakes/Water Debt > 62,816.07 Pinehurst/Water Debt >1,464,169.85 Tower >472,966.25

As they have elaborated over the past few years, that users would pay down and pay off the debt they created for you to purchase their water. Ever wonder why Pinehurst wrote an ordinance to prevent homeowners from boring wells? Now Larry Caddell's dream of ownership of the utility software has come to fruition. Got Cha'

Toda 1 year, 4 months ago

A section of NC Law regarding ethical standards:

138A 36. Public servant participation in official actions. (a) Except as permitted by subsection (d) of this section and under G.S. 138A 38, no public servant acting in that capacity, authorized to perform an official action requiring the exercise of discretion, shall participate in an official action by the employing entity if the public servant knows the public servant or a person with which the public servant is associated may incur a reasonably foreseeable financial benefit from the matter under consideration, which financial benefit would impair the public servant’s independence of judgment or from which it could reasonably be inferred that the financial benefit would influence the public servant’s participation in the official action. (b) A public servant described in subsection (a) of this section shall abstain from taking any verbal or written action in furtherance of the official action. The public servant shall submit in writing to the employing entity the reasons for the abstention. When the employing entity is a board, the abstention shall be recorded in the employing entity’s minutes.

The entire chapter is too long to paste here...if you chose to read more on this ethical matter, surf!

deidretg 1 year, 4 months ago

@BrantClifton....." You can have as much space -- unedited -- as you want. I have already done so for your buddy Mr. Francis."

Truly stated sir, and I thank you for allowing me to post the pertinent NC General Statute 138A-36 as well as the exception to that statute, NC General Statute 14-234, followed by the Moore County BOC Minutes of their meeting on Dec 13, 2007, all in one sequence.

It is extremely important to have all of those pieces in one post in order to see just what kind of problem this whole thing is for Moore County. It is not just a problem for Southern Software and its two original officers. In the end, it will be much more than just some unreliable, no-bid, self-serving software that is generating for unsuspecting Moore County supplied water customers $600, $700, $800 or $900 water bills on demand.

I hope the heat in this kitchen does not scare you off. The Pilot largely controls the output of county information for the general public. Those of us who are not into 'social chitchat' but are very much interested in the real meat and potatos of 'Law and Ethics' as it relates to the 'goings on' in Carthage for the last 5 years or so, will do much better on your blog if it survives the coming firestorm.

Toda 1 year, 4 months ago

"deidretg 2 minutes ago"

Wow ~ seeing you back on the boards gives hope to honest and verifiable research. Your eloquent writing style and fact based threads give rise to the fact that information based on law leaves little to no speculation or innuendo. Wouldn't it be great if we could have a referendum to vote Caddell out of office? Ergo, that law was solidified by our legislature.

Did you know my projection that Larry Caddell would have his name on a building came true. I nailed that one 5 years ago....

I think people are now seeing the gravity of the voting records of our Board of Commissioners. And it's all profitable for Southern Software, Inc.

M3rules 1 year, 4 months ago

@recondo I ended up having a couple of bills that were in the stratosphere and never got anything other than a smug response from the folks at MPW. They did come replace my meter and magically my bill went back to normal in the $30.00 to $40.00 range. I told the gentleman at the office that I thought it was a conspiracy by the county to fleece the public with no recourse. He promptly replied that "I have no problem sleeping at night". I'll meet you at the MPW offices any time and lets see if we can get an audience.

fugitiveguy 1 year, 4 months ago

"That system, already in use in Southern Pines and elsewhere, saves money as well as time, and Gould says he is already considering staffing adjustments because the county system will need fewer full-time meter readers."

The water meter readers union (WMRU) will not take this lying down!

Mort3380 1 year, 4 months ago

You know what disturbs me more than anything out pf this wholr article? The facf that people are going to lose their jobs during a time of economical hardship over a remote control meter reader. Did you know that when FirstHealth Hospital installed the robot medicine and supply delivery carts, 10 people lost Jobs? Insane!! Self-checkouts at Lowes Foods cut 4 positions down to one? Again, insane! Now the county with remote meter readings and they're excited because they are going to be able to eliminate some positions? How would they feel if their position was eliminated because of technology.

fugitiveguy 1 year, 4 months ago

"How would they feel if their position was eliminated because of technology"

I do feel sad for those put out of work due to technology but the sad truth is... well given its the holidays I will leave the sad truth for another time.

buddysmith 1 year, 4 months ago

wonder what the total cost of the "remote control readers" were compared to paying someone a little over minimum wage to read the old ones?

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