2.6. ERMUSR 04-12-2016 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key Accounts
John Dietz—Chair Manager
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 9th, 2016 2.6
SUBJECT:
Revised Elk River Municipal Utilities Water-General Tariff
BACKGROUND:
Staff recently discovered a typo on the Elk River Municipal Utilities Water-General tariff sheet.
The Commercial Irrigation Permanently Installed basic monthly charge and the Commercial
Irrigation Seasonally Installed monthly charge had been inadvertently transposed.
DISCUSSION:
During the review of customer account bills, there was an inconsistency between what the water
tariff outlines and the way the monthly bills were calculated. Upon review of the irrigation only
accounts and the current tariff sheet, it was determined that the rates that were being applied to
the customer accounts were correct and that the tariff sheet was incorrect due to the two
transposed amounts. As the correct rates have been billed, there will be no effect on customers
past or moving forward as a result of this correction to the proposed ERMU Water-General
Tariff Sheet.
In the discussion of how the rates are billed, staff determined that customers could be confused
by the listing of the tier one rate listed as an applicable cost for water use under the irrigation
only tariff. The irrigation only customers will not have winter volumes to calculate the tier one
volume to apply the tier one rate. Tier one rates are not applicable to irrigation only customers
because they will not have any winter use on that account. Staff has made further clarification of
this on the proposed ERMU Water-General Tariff Sheet.
ACTION REQUESTED:
Approve the revised Elk River Municipal Utilities Water-General Tariff Sheet which reflects
current practice and is consistent with Commission intent at the time of the 2016 budget
approval.
ATTACHMENTS:
• Proposed Elk River Municipal Utilities Water-General Tariff Sheet
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ELK RIVER MUNICIPAL UTILITIES
Water-General
Available: To all customers who have municipal water service available at their
property, lying within the corporate limits of the City of Elk River.
Special Conditions: Each customer served by one meter. Multiple living entities, such
as apartments, may be served by a combined meter upon approval of the Elk River
Municipal Utilities and acceptance of applicable charges.
Special Charges: An Account Maintenance Charge shall be applied to each meter
based on the meter size according to the schedule below, and is separate from any
water use. An additional monthly fee of$0.53 will be collected on a monthly basis from
each non-commercial account to recover the total annual cost of$6.36 for the State of
Minnesota Safe Drinking Water Testing Program (Minnesota Statutes 144.3831).
Winter Period: November 1 through March 30 usage
Summer Period: April 1 through October 30 usage
Rates:
BASIC 1st TIER 2nd TIER 3rd TIER
METER TYPE MONTHLY Cost per Cost per Cost per
CHARGE 1000 gallons 1000 gallons 1000 gallons
Residential $ 8.64 $ 1.72 $3.50 $4.00
Commercial 3/ $ 10.37 $ 1.72 $3.50 $4.00
Commercial 1 $ 11.53 $ 1.72 $3.50 $4.00
Commercial 1 '/ $ 12.69 $ 1.72 $3.50 $4.00
Commercial 1 '/z $ 13.84 $ 1.72 $3.50 $4.00
Commercial 2 $ 18.45 $ 1.72 $3.50 $4.00
Commercial 3 $40.35 $ 1.72 $3.50 $4.00
Commercial 4 $ 55.35 $ 1.72 $3.50 $4.00
Commercial 6 $ 80.71 $ 1.72 $3.50 $4.00
Commercial 8 $109.53 $ 1.72 $3.50 $4.00
Commercial Irrigation
Permanently Installed $ 18.45/16.11 $-a-72 $3.50 $4.00
Commercial Irrigation
Seasonally Installed $ 46.11 18.'15 $4-72 $3.50 $4.00
Rate Tier Definition:
Residential:
First Tier Rate = 0-9,000 gallons per month.
Second Tier Rate = Between 9,000 and 15,000 gallons per month.
Third Tier Rate =Above 15,000 gallons per month.
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ELK RIVER MUNICIPAL UTILITIES
Water-General
Commercial:
First Tier Rate = 0— 1.1 X previous year's average winter period monthly
consumption.
Second Tier Rate = Between 1.1 X previous year's average winter period monthly
consumption to 1.1 X previous year's average winter monthly consumption + 40,000
gallons.
Third Tier Rate =Above 1.1 X previous year's average winter period monthly
consumption +40,000 gallons.
For Commercial Irrigation, account maintenance charge is only applicable for months
meter is installed. in service. Commercial irrigation accounts are not eligible for First Tier
Rate as there is no winter use.
For new customers, if a minimum of 3 winter months previous years history is not
available to establish the Tier amount, the First Tier rate shall be utilized until a minimum
of 3 months history is established. Commercial irrigation is not eligible for First Tier Rate
as there is no winter use.
Minimum Bill: Account Maintenance charge plus any charges applicable to multiple
living entities.
Terms of Payment: Bills are due and payable upon receipt and delinquent if not paid by
the due date note on the bill. There will be a ten (10) percent late payment charge added
to all accounts that are not paid by the due date.
Residential water- exempt from sales tax.
Commercial water-subject to sales tax unless exemption is filed.
Approved Adopted December 8, 2015
Revised April 12, 2016
Effective January 1, 2016
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