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2.8. ERMUSR 07-12-2016 Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Michelle Canterbury—Executive Administrative John Dietz—Chair Assistant Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: July 12, 2016 2.8 SUBJECT: Residential and Commercial Water Connection Agreements BACKGROUND: Currently we are using the same Water Connection Permit/Agreement for both residential and commercial customers. This has caused some confusion as the commercial water access charges are based on the number of units calculated by the city, and commercial accounts are charged sales tax whereas residential are not. Another issue has been that the permit/agreement requires annual revisions as there are actual dollar amounts listed for water connection fees and water meters. DISCUSSION: In an effort to standardize our agreements for service, and direct customers to our fee schedule for pricing, staff has revised the Residential Water Connection Agreement and has created a new Commercial Water Connection Agreement. Legal counsel has reviewed and approved the proposed agreements. As service agreements are currently part of our policy manual, Commission approval is required for the implementation of the proposed agreements. ACTION REQUESTED: Staff recommends approval of the revised Residential Water Connection Agreement and the new Commercial Water Connection Agreement ATTACHMENT: • Old ERMU Policy—S.15—Water Connection Permit—for reference only • Proposed ERMU Policy—S.15—Residential Water Connection Agreement • Proposed ERMU Policy—S.16—Commercial Water Connection Agreement POWERED BY • Page 1 of 1 NATURE Reliable Public' Power Provider P OWERED T o S ERV E 62 1/1/2016 Elk River ----- Municipal Utilities 13069 Orono Parkway P.O.Box 430 phone: 763-441-2020 Elk River,MN 55330-0430 fax: 763-441-8099 WATER CONNECTION PERMIT (Name of Applicant) (Phone) (Service Address of Applicant) (Mailing Address of Applicant) Hereby requests permission to connect to the Elk River Municipal Utilities water system at: Lot Block Addition Signature of Applicant: WHEREAS, the said applicant agrees to pay the sum of: $ 3,090.00 Water Connection Fee $ 335.00 Water Access Fee (if applicable)* $ 3,425.00 Water Access Charge (WAC) $ 218.00 Water Meter $ 14.99 Tax on Meter Total Due this Permit $ 3,657.99 or $3,322.99 *Please contact Elk River Municipal Utilities to determine if water access fee has been prepaid. WHEREAS, the connection as above specified, has been approved and inspected by Elk River Municipal Utilities. NOTICE: A Sewer and Water hook-up permit is required by the City of Elk River and must be obtained from City Hall. 63 7/1/16 IVElk River RESIDENTIAL WATER CONNECTION Municipal Utilities AGREEMENT Owner Mailing Address Phone# Fax# Email (Hereinafter called the Owner),in accordance with the following terms and conditions: The owner hereby requests permission to connect to the Elk River Municipal Utilities(ERMU)water system located at: 1. Location of premises: Address Lot Block Addition 2. The following fees,terms and conditions shall apply: A) Home Builder/Owner shall complete an ERMU Residential Water Connection Agreement. B) A Sewer and Water Hook-Up Permit and Plumbing Permit are required by the City of Elk River.Copies of the permits must be provided to ERMU before delivery of the water meter will be made. C) Plumber shall install the meter. D) Notification by the plumber that the water meter has been set and ready for seal and inspection by ERMU Water Department shall be done at least 24 hours prior to final plumbing inspection by the City Building Department.Certificate of Occupancy will not be issued until meter is sealed by ERMU Water Department. E) Owner agrees to pay the sum of the following per ERMU fee schedule,plus applicable tax: $ Water Connection Charge $ Water Availability Charge(if applicable)* $ Water Meter $ Sales Tax on Water Meter $ TOTAL AMOUNT DUE *Please contact Elk River Municipal Utilities to determine if water availability charge has been prepaid. By signing below,Owners confirms that Owner has read,understands,and agrees to the terms and conditions set forth above. Owner Date 64 7/1/16 Elk River ^^ COMMERCIAL WATER CONNECTION Municipal Utilities AGREEMENT Owner/Developer Mailing Address Phone# Fax# Email (Hereinafter called the Owner or Developer),in accordance with the following terms and conditions: The owner hereby requests permission to connect to the Elk River Municipal Utilities(ERMU)water system located at: 1. Location of premises: Water Meter Size: Inches Address Lot Block Addition 2. The following fees,terms and conditions shall apply: A) Commercial Owner/Developer shall complete an ERMU Commercial Water Connection Agreement. B) A Sewer and Water Hook-Up Permit and Plumbing Permit are required by the City of Elk River.Copies of these permits must be provided to ERMU before delivery of the water meter will be made. C) Plumber shall install the meter. D) Notification by the plumber that the water meter has been set and ready for seal and inspection by ERMU Water Department shall be done at least 24 hours prior to final plumbing inspection by the City Building Department. E) The number of Water Access Charges(WAC)units shall be calculated the same as the Sewer Availability Charges(SAC),as provided in Section 78-189 of the City of Elk River Code of Ordinances. F) Owner agrees to pay the sum of the following per ERMU fee schedule,plus applicable tax: Water Connection Charge$ X Units = $ Water Availability Charge $ X Units = $ Total WAC = $ Total WAC $ Sales Tax on WAC $ Water Meter $ Sales Tax on Water Meter $ TOTAL AMOUNT DUE $ By signing below,Owners confirms that Owner has read,understands,and agrees to the terms and conditions set forth above. Owner Date 65