5.3 ERMUSR 11-13-2018ElkRiver\,V��,
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Michelle Canterbury — Executive Administrative Manager
MEETING DATE:
AGENDA ITEM NUMBER:
November 13, 2018
5.3
SUBJECT:
2019 Utilities Fee Schedule
ACTION REQUESTED:
Approve the 2019 Utilities Fee Schedule for Adoption into Ordinance by the City Council
BACKGROUND:
Typically, the Elk River Municipal Utilities Commission approves the budget in December. In
January, the rates and fees are published. Per legal counsel, the Utilities' abihty to collect on
fees would be strengthened by having them listed as part of the city's master fee schedule and
adopted into City ordinance after being approved by the Commission.
DISCUSSION:
Annually ERMU staff reviews the proposed fees for the upcoming year. Proposed changes are
highlighted in yellow on the attached fee schedule. Proposed changes include:
Water Connection Charge and Water Availability Charge — In keeping in line with what the
city is proposing for their increase to Sewer Access Charges (SAC), staff is recommending
increasing ERMU's Water Access Charges (WAC) by the same percentage; 3.6%. In 2019,
ERMU staff will be going through and verifying our philosophy of allocation of cost and aid to
construction for water and electric connection fees, and analyzing that for consideration in the
2020 fee schedule.
NSF Fee — Although State Statute allows for a service charge, not to exceed $30.00, to be
imposed on any dishonored check, ERMU's practice has been to impose a $20.00 fee, as this
covers the costs associated with processing a returned check. We have communicated this fee to
customers with a clause on the monthly bill that states that there is a $20.00 charge for returned
checks in addition to any fees their bank may charge. Staff is recommending adjusting the fee
schedule to reflect our actual practice of a $20.00 NSF fee.
At the October 9 Commission meeting, the Commission supported the idea of an opt -out
program and directed staff to research and bring back some dollar amounts to offer the program
for both water and electric. Based on initial research, it appears that a onetime $50.00 opt -out fee
per service (electric or water), and a monthly $20.00 manual meter reading fee, would cover the
costs associated with offering the program. As there are still some unknowns, and further details
to work through before offering the opt -out program, staff recommends waiting to add these fees
to the fee schedule until everything is finalized.
Page I of 2
75
FINANCIAL IMPACT:
The proposed fees have been added or adjusted to cover the cost of providing services to our
customers.
ATTACHMENTS:
• Proposed 2019 Utilities Fee Schedule
Page 2 of 2
76
Elk River Municipal Utilities
Proposed 2019 Utilities Fee Schedule
Fee Description
ELECTRIC
2018
Proposed
2019
Proposed
Increase
New Residential Electric Connection - Developer - Lot with ERMU water service
$
475.00
$
475.00
New Residential Electric Connection - Developer - Lot without ERMU water service
$
575.00
$
575.00
New Residential Electric Connection - Builder
$
875.00
$
875.00
New Wire Footages over 200'(per foot)
$
4.00
$
4.00
New Seirvice Frost Trenching (per foot)
$
5.00
$
5.00
New Commercial & Industrial Electric Conne,:tion
50%
50%
Semite Upgrades or Additions for Existing Customers
100%
100%
Minimum Temporary Electric Service Fee - Existing Transformer
$
150.00
$
150.00
Minimum Temporary Electric Service Fee - Without Existing Transformer
$
500.00
$
500.00
Street Light - 30' Decorative Pole with 6' Arm and Fixture
$
1,850.00
$
1,850.00
Street Light - 23' Decorative Pole with Traditionaire Fixture
$
1,500.00
$
1,500.00
Security Light - Wood Pole with Fixture
$
975.00
$
975.00
Se,curity Light - Existing Pole
$
125.00
$
125.00
Pole Attachment Fee (per pole)
$
6.50
$
6.50
WATER
Water Access Charge = Water Connection Charge + Water Availability Charge
$
3,633.00
$
3,764.00
3.6%
Water Connection Charge (Per Plumbing Unit) - Builder
$
3,278.00
$
3,396.00
3.6%
Water Availability Charge (Per Plumbing Unit) - Developer
$
355.00
$
368.00
3.6%
Abandoned Water Service
$
2,500.00
$
2,500.00
Hydrant Water Sales - Rental (per week)
$50.00
$50.00
Hydrant Water Sales - Units (per 1000 gallons)
$
4.00
$
4.00
Deposit for 5/8" Hydrant Meter
$
150.00
$
150.00
Deposit for 2 112" Hydrant Meter
$
1,000.00
$
1,000.00
Private Hydrant Maintenance Program Monthly Fee
$
5.00
$
5.00
ADMINISTRATIVE
Administrative Fee for Continued Submission of Checks After No -Check Notice iven
20.uu
$
20.00
Billable Cost of Materials Markup
15%
15%
Billable Labor Markup
55%
55%
Billable Vehicle I Equipment (per employee per hour)
$
30.00
$
30.00
Commercial Application Fee
$
20.00
$
20.00
Electric Service Disconnect/Trip Fee - Meter Technician
$
50.00
$
50.00
Electric Service Disconnect/Trip Fee - Line Crew
$
150.00
$
150.00
Energy Audit
$
150.00
$
150.00
Meter Tampering Fee
$
250.00
$
250.00
Meter Testing Fee
$
50.00
$
50.00
NSF Fee
$
30.00
$
20.00
Decrease
Penalty Amount
10%
10%
Photocopies (per page)
$0.25
$0.25
Red Tag Handling Fee
$
20.00
$
20.00
Water Shut -Off Fee
$
100.00
$
100.00
77