5.3 ERMUSR 10-09-2018 Elk River
Municipal Utilities ' UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
October 9, 2018 5.3
SUBJECT:
2019 Utilities Fee Schedule
ACTION REQUESTED:
Discussion on 2019 Utilities Fee Schedule
BACKGROUND:
Annually ERMU staff reviews its fees for the upcoming year to make sure they are fair,
reasonable, and proportionate to the actual cost of the service for which the fee is imposed. The
addition of any new fees is also considered at this time.
DISCUSSION:
The 2019 proposed utilities fee schedule will be presented at the November 13 Commission
meeting. Staff is considering the addition of two new fees and would like discussion on the
following:
Opt-Out Fee
ERMU has been approached by a customer that would like to opt-out of the automated
meter reading(AMR)process we currently offer. Presently we do not have an opt-out
option for our customers. There are a few different options we can consider. Staff is
interested in talking through the pros and cons of each of the options and getting
Commission direction before proceeding forward.
• Continue to not offer an opt-out option
• Offer an option to opt-out where the customer covers all costs associated with
meter change out and manual meter reads
• Offer an option to opt-out where the customer covers some of the costs associated
with meter change out and manual meter reads
• Offer an option to opt-out where ERMU covers all costs
Residential Application Fee
Staff is also considering implementation of a residential application fee as customers are
often moving from apartment to apartment and ERMU incurs costs for credit checks, meter
reading, account setup, etc. ERMU currently has an application fee only for our commercial
customers. This was implemented as a way to recover costs associated with the application
process when it was redesigned a few years ago. This is a standard practice amongst utilities
and staff would like discussion with the commission and feedback on whether they are
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interested in implementing this fee. The following are some examples of other utilities'
fees:
• Connexus Energy: $21
• Wright-Hennepin Electric Cooperative: $15
• Shakopee Public Utilities: $15
Management will review the philosophy of allocation of cost, and aid to construction for water
and electric connection fees next year for consideration in the 2020 fee schedule.
Attached for reference is ERMU's current fee schedule.
ATTACHMENTS:
• 2018 Utilities Fee Schedule—for reference only
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Elk River 2018 Utilities Fee Schedule
Municipal Utilities
ELECTRIC
New Residential Electric Connection -Developer-Lot with ERMU water service $475.00
New Residential Electric Connection -Developer-Lot without ERMU water service $575.00
New Residential Electric Connection -Builder $875.00
New Wire Footages over 200'(per foot) $4.00
New Service Frost Trenching(per foot) $5.00
New Commercial&Industrial Electric Connection 50%
Service Upgrades or Additions for Existing Customers 100%
Minimum Temporary Electric Service Fee-Existing Transformer $150.00
Minimum Temporary Electric Service Fee-Without Existing Transformer $500.00
Street Light-30' Decorative Pole with 6'Arm and Fixture $1,850.00
Street Light-23' Decorative Pole with Traditionaire Fixture $1,500.00
Security Light-Wood Pole with Fixture $975.00
Security Light- Existing Pole $125.00
Pole Attachment Fee(per pole) $6.50
WATER
Water Access Charge=Water Connection Charge+Water Availability Charge $3,633.00
Water Connection Charge(Per Plumbing Unit)- Builder $3,278.00
Water Availability Charge(Per Plumbing Unit)- Developer $355.00
Abandoned Water Service $2,500.00
Hydrant Water Sales- Rental (per week) $50.00
Hydrant Water Sales- Units(per 1000 gallons) $4.00
Deposit for 5/8"Hydrant Meter $150.00
Deposit for 2 1/2"Hydrant Meter $1,000.00
Private Hydrant Maintenance Program Monthly Fee $5.00
ADMINISTRATIVE
Administrative Fee for Continued Submission of Checks After No-Check Notice Given $20.00
Billable Cost of Materials Markup 15%
Billable Labor Markup 55%
Billable Vehicle/Equipment(per employee per hour) $30.00
Commerical Application Fee $20.00
Electric Service Disconnect/Trip Fee- Meter Technician $50.00
Electric Service Disconnect/Trip Fee- Line Crew $150.00
Energy Audit $150.00
Meter Tampering Fee $250.00
Meter Testing Fee $50.00
NSF Fee $30.00
Penalty Amount 10%
Photocopies (per page) $0.25
Red Tag Handling Fee $20.00
Water Shut-Off Fee $100.00
Adopted by the Utilities Commission on October 10,2017 under authority per Minnesota Statute 412.361-Amended April 10,2018
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