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6.3. ERMUSR 06-10-2008~/ Elk River -=~ Municipal Utilities 13069 Orono Parkway • PO. Box 430 Elk River, MN 55330-0430 June 3, 2008 To: Elk River Municipal Utilities Commission Jerry Takle John Dietz Jerry Gumphrey From: Bryan Adams Subject: Water Shut-Off Policy (A Can of Worms and a Bag of Snakes) Phone: 763.441.2020 Fax: 763.441.8099 The mortgage crisis and the number of foreclosed and vacant homes continue to be very troublesome. The issue your staff wrestles with is, should we or should we not be turning the water off at the curb stop if we know the house is vacant or if we are asked by the mortgage holder to turn off the water. When the electric is disconnected, the water pipes will freeze in the winter and water damage will occur. The pro's and con's of turning off the water at the curb stop is as follows: Pro's Con's 1) Provides good customer service by offering this service. 2) Possibly provides a revenue source by charging for this service. Ability to collect fee may be difficult. 3) Prevents further water damage to house. 4) Minimizes water loss and lost water revenue from broken and running water lines in the home or business. I) It often takes 3 to 4 hours to find the curb stop. It would be difficult to set a reasonable fee to cover all conditions-collecting fee from out-of--state owners will be difficult. 2) Many curb stops are damaged (20%-30%) where they are not operable and water cannot be shut off. 3) If we agree to turn off the water at the curb stop but cannot do it due to a damaged curb stop, we have assumed some liability for damages if we do not notify the owner of our inability to shut off the water. (We currently have this issue going on with one customer.) 4) Damage can still occur if the curb stop is closed because the house is not properly winterized. Frozen water is still in the water lines, sink traps, toilets, etc. 5) Broken water lines can utilize thousands of gallons of water which results in hundreds of dollars of water revenue that is difficult to collect. Either way there is no good answer. Closing the valve before the meter is not adequate either because the exposed pipes will freeze before the meter. Staffs' position to date is it is the property owners' responsibility to protect his property. Attached is a letter we hang on customers' door when we disconnect the electric. Do you desire to maintain staffs' position, or do you desire to change it? April 16t~, 2008 11701 193rd Ave NW Elk River, MN 55330 Dear Current Resident; Recently we have reviewed the account on this address and were made aware that no one has signed up for utilities at this residence. Due to not having signed up, the utilities at your home have been disconnected. Elk River Municipal Utilities is not responsible for any damage done to the home due to the disconnection. Please call our office at # 763-441-2020 to provide owner information for utilities and we will be glad to reinstate your utilities at our earliest convenience. If we have to come out after 4:30 to reconnect, there will be a $100.00 charge. Sincerely, Elk River Municipal Utilities 763-441-2020