Bulletin: NY000078

Dear Associates:

As we reported last August, the City of New York is in the process of changing the way water and sewer charges are handled. New water and sewer charges, for lots as they are converted, are being posted in the City's Department of Environmental Protection (DEP) computer system. At this time, all of Manhattan and Staten Island have been completed, and Brooklyn conversions are being started.

In the interim, as accounts are converted, new charges for each converted lot will appear only on the DEP system and not in the Department of Finance (DOF) system. Old charges and charges on unconverted lots will appear only in the DOF system. There is a possibility that old charges will later be converted to the new system. We have received reports that an advisory from DEP will be issued in the next few days, which may report on the status of the conversion, and outline new procedures.

The immediate problem is that the new DEP system, called CIS (for Customer Information System), is not yet fully operational for converted lots. Information on converted lots is presently available by telephone at 718-595-7000, or in person at the DEP Bureau of Water and Energy Conservation, 59-17 Junction Boulevard, 1st floor Low Rise, Corona, NY 11368-5107. Because of the expectation of telephone delay, you may note that searches provided by some outside vendors do not include a DEP search. This is because the potential for unreliability of a search obtained orally over the telephone is significantly greater than that obtained from an examination of the records.

If your vendor does not provide a DEP search on converted property, you may contact DEP directly for the relevant information. Until the situation improves, because of the potential unreliability of orally obtained information, an exception should be taken, as follows, for affected properties:

T-8A The water and sewer account for the premises described in Schedule A is being transferred to the Department of Environmental Protection. At the present time, accurate searches are not available. An oral report from DEP discloses the following open items not shown on the tax search ___________________________________________________. Water and sewer charges affecting the premises will be excepted unless a current bill or paid receipt is presented at closing. A bill can be obtained by calling 718-595-7000, or in person at the DEP Bureau of Water and Energy Conservation, 59-17 Junction Boulevard, 1st floor Low Rise, Corona, NY 11368-5107.