At its bimonthly meeting Wednesday, the Baltimore Board of Estimates unanimously approved a $12 million contract increase to collect more than six times that amount in outstanding utility payments.

According to city documents, the contract was initially awarded to Itineris NA, Inc. in 2014, and the new increase runs through Oct. 30, 2026. The company develops and implements UMAX, a cloud-based customer information system specifically designed to improve customer service for utilities.

The decision came after a lengthy conversation between board President Zeke Cohen and Baltimore City Department of Public Works (DPW) deputy director Matt Garbark — and just hours before the board was set to vote on its proposed utility rate increase.

Cohen noted that the $12 million increase would be the sixth increase to the Itineris contract overall, bringing its total value to just over $53.6 million. Garbark said the increase is needed for DPW to maintain accuracy in its billing, which was largely done by estimation before 2014.

“The services have improved. We now have a much more robust system,” Garbark said of UMAX.

Garbark also said the increase would help with collecting outstanding utility payments, which DPW has pursued more aggressively since announcing the proposed utility rate increase. Still, he says the department tries to suspend water service only as a last resort for residential customers — especially those facing financial hardship.

“[Turning off water] is something that we have avoided and have been very much not looking to pursue,” Garbark said. “We’ve been trying to look at more incentives and assistance programs for people who are struggling, so we can get them into [payment] plans.”

According to Garbark, DPW has collected about $56 million in outstanding bills from just 46 accounts. He says this amount represents just 42% of the total to collect, but most remaining accounts are much smaller than the large commercial accounts initially targeted for owing seven figures to the city.

If Garbark’s figures are correct, the total amount in outstanding utility payments to be collected is roughly $133 million, meaning more than $75 million remains out there.

Cohen said DPW should get more aggressive with its collections approach.

“I’m hoping that we are moving as aggressively as is humanly possible to close that gap,” Cohen said.

If the board adopts the utility rate proposal, water and sewer bills would increase by 3% and 15%, respectively, upon their current rates effective Feb. 1 for the 2025 fiscal year. For the 2026 and 2027 fiscal years — which start on July 1, 2025, and July 1, 2026, respectively — the increases upon current rates shift to 9% for water, 9% for sewer and 3% for stormwater.

Figures given by DPW show that the average utility bill for a four-person household in the city would increase from the current $130.21 to $167.90 by fiscal year 2027 — a total hike of nearly 29% in the next 18 months.

Board clerk Audrey Quarles said the city received 54 formal statements of opposition to the proposed increase, and that some of these individuals will likely testify at the hearing.

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