5.1. ERMUSR 07-12-2016 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Eric Volk—Water Superintendent
John Dietz—Chair Jennie Nelson—Customer Service Manager
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
July 12, 2016 5.1
SUBJECT:
Revised Elk River Municipal Utilities Water-General Service Tariff
BACKGROUND:
In 2015, staff implemented a"permanently installed" irrigation rate where the monthly customer
charge is lower than the seasonally installed irrigation charge; however the charge is billed all
year instead of only when the meter is in service. The permanently installed irrigation meters are
not required to be removed at the end of the season and returned to the field services building as
the seasonally installed meters are. Previously, ERMU used the seasonally installed irrigation
charge which required meters to be removed and returned to ERMU every fall. These two
irrigation rates were designed to be revenue neutral for the typical customer.
DISCUSSION:
Having seasonally installed irrigation meters has become problematic from an operational and
administrative perspective. Staff would like to propose a change to the Water-General Service
Tariff and have all irrigation accounts be billed the same customer charge all year long. We
would not require seasonally installed customers to turn in their irrigation meters at the end of
the season. Because the customer will have the meter in their possession all year long, they
would be billed a customer charge every month instead of only when the meter is in service. This
will keep all irrigation accounts in the billing system uniform and prevent irrigation meters from
being installed in the wrong locations in the spring.
ACTION REQUESTED:
Staff requests the commission approve the proposed change to the Water-General Service Tariff.
ATTACHMENTS:
• Proposed Elk River Municipal Utilities Water-General Service Tariff
E®
P D N E D E D D 1
Page 1 of 1 NATURE
Reliable Public
Power Provider P O W E R E D T O S ERV E
98
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 3/4 $ 10.37 $ 1.72 $3.50 $4.00
Commercial 1 $ 11.53 $ 1.72 $3.50 $4.00
Commercial 1 1/4 $ 12.69 $ 1.72 $3.50 $4.00
Commercial 1 1/2 $ 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
Seasonally or $ 18.45 $3.50 $4.00
Permanently Installed
$--46.11 $3.50 $4.00
Seasonally Installed
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.
99
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.
meter i,installed. 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 July 12April 12, 2016
Effective January 1, 2016
100