5.3 ERMUSR 11-09-2021UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Michelle Canterbury– Executive Administrative Manager
MEETING DATE: AGENDA ITEM NUMBER:
November 9, 2021 5.3
SUBJECT:
2022 Utilities Fee Schedule
ACTION REQUESTED:
Approve the 2022Utilities Fee Schedule for Adoption into Ordinance by the City Council.
BACKGROUND:
Typically, the Elk River Municipal Utilities Commission approvesthe budget in December. In
January, the rates and fees are published. Per legal counsel, ERMU’s ability 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
outlined below and highlighted in yellow on the attached fee schedule.
ELECTRIC FEES
After evaluation of our schedule of rates/aid to construction methodology, staff conducted an
audit of our electric fees to determine any necessary adjustments. Based on the audit, staffis
recommending the following changes:
Minimum Temporary Electric Service Fee – Existing Transformer – A proposed increase from
$150 to $220.
Minimum Temporary Electric Service Fee – Without Existing Transformer – A proposed
increase from $500 to $850.
Meter Installation Fee – The addition of a new $20 meter installation fee (per individually
metered apartment unit). Currently there is no fee being charged to capture the cost of labor
associated with this meter installation process.
WATERFEES
Water Connection Charge and Water Availability Charge –The cost-of-service study
conducted in 2020, which included an analysis of ERMU’s Water Access Charge (WAC),
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determinedthat ERMU’s 2020 WAC fee of $3,764 per unit did not cover the true cost for a
customer to buy into the existing water system, which is$3,990.Based on the cost-of-service
study, staff recommend a 6% increase tothe 2021 Water Connection Charge and Water
Availability Charge. The Commissionhad consensus to spread anincreaseof that size across
multiple years and approved a 4% increase for 2021, bringing the WAC fee to $3,915.
For the 2022 Fee Schedule, staff recommends increasing the WAC to $3,990, which is just under
a 2% increase.
Backflow Preventer Device Non-Compliance – As part of our backflow prevention program, a
$100 penalty fee has been created for customers that are in non-compliance.
FINANCIAL IMPACT:
The proposed fees have been added or adjusted to cover the cost of providing services to our
customers.
ATTACHMENTS:
Proposed - 2022 Utilities Fee Schedule
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