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5.2. ERMUSR 10-09-2007J,~ Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 October 4, 2007 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey Jim Tralle From: Bryan Adams Subject: Abandoned Water Service Phone: 763.441.2020 Fax: 763.441.8099 At the September Elk River Municipal Utilities Commission meeting we discussed the issue of abandoned water services. Attached is my September 4; 2007 memo addressing this issue. Jerry Gumphrey suggests we set a fixed fee instead of the owner paying us the estimated costs to make the repair. We have verified that the cost of abandoning a leaking water service line is in the $3,000 to $7,000 range. An appropriate value could be azgued at $2500 because not all services will be abandoned. The proposed language would be... In the case where local unit of government will not issue a street disruption permit to allow the proper abandonment of water service, property owner shall pay Elk River Municipal Utilities the estimated costs to properly abandon water service along with GPS coordinates of the abandoned water stop. The Elk River Municipal Utilities will then assume all future liability to properly abandon water services and shall do so in case of service line leaks. Estimated cost shall be 52500. If in the future the water service is reused, the Elk River Municipal Utilities will refund the initial paid amount to the property owner. In the event a service to be reused is not of proper materials per Section 104, a new service shall be installed by owner and old service shall be abandoned by Elk River Municipal Utilities. ~/ Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 September 4, 2007 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey .Iim Tralle From: Bryan Adams Subject: Abandoned Water Services Phone: 763.441.2020 Fax: 76.3.441.8099 As homes are demolished or moved from a site, the abandoned water service continues to be a problem. Our current policy, Section 114 contained in the Water Rules, is attached for your reference. Recently we have had a number of houses demolished on either major streets or streets that were recently rebuilt and the county or city will not issue street disruption permits to allow the owner to disconnect the water service. The county or city feelings are they do not want the new street cut and damaged to remove a water service that may never leak. Our position is we do not like stub water lines that may cause contamination problems. But the major concern is finding the correct or unknowing property owner and having them fix a leak if and when one develops. Our current policy allows the property owner to post a bond but many property owners do not want the hassle of the long term bond. One solution suggested by the City Engineers is to have the affected property owners pay Elk River Municipal Utilities to take on the liability to remove the water service when it develops a leak. Depending upon the location and street of a potential service leak, disconnection costs would be in the $3,000 to $7,000 range with the majority of the costs in street repairs. Proposed language changes to our policy are as follows. Delete second, third and fourth paragraphs of the policy and replace with... In the case where local unit of government will not issue a street disruption permit to allow the proper abandonment of water service, property owner shall pay Elk River Municipal Utilities the estimated costs to properly abandon water service along tivith GPS coordinates of the abandoned water stop. The Elk River Municipal Utilities will then assume all future liability to properly abandon water services and shall do so in case of service line leaks. Estimated cost shall be determined by quotations from qualified contractors in the business of installing or repairing water services. If in the future the water service is reused, the Elk River Municipal Utilities will refund the initial paid amount to the property owner. In the event a service to be reused is not of proper materials per Section 104, a new service shall be installed by owner and old service shall be abandoned by Elk River Municipal Utilities. If other than compressor types of refrigeration units are used, the consumpt!on of water from the mun!cipal water supply shall be limited in amount to not more per ton of refr!geration produced that would be used by the compressor type described above. In no event shall this exceed one gallon per minute per ton of refrigeration. Failure to comply with the above regulations shall be sufficient cause to discontinue service. 114 ABANDONED WATER SERVICES All Discontinued or abandoned water services shall be shut off and disconnected at the main and the stop box shall be removed by a licensed plumber or licensed sewer installer at the expense of the property owner. A performance bond or deposit shall be furnished to Elk River Municipal Utilities to guarantee disconnection, before applicant can obtain a permit for moving or razing a structure. This will be returned as soon as service disconnection and stop box removal has been approved by Elk River Municipal Utilities. If the Owner is in doubt about the future use of the water service, one year may elapse before service must be disconnected at the main and stop box removed. Unless the Elk River Municipal Ut!lities is provided definite plans for future use, the bond or deposit shall remain until disconnection has been completed. In the event a service is to be reused and the service is not copper or cast iron construction, the service shall be replaced with copper tubing as per section "Repair Responsibility". If a new service is requested for property where an abandoned service remains connected to the main, the new service shall be refused until the abandoned service is disconnected. When a permit for moving or wrecking a house is granted, the City Building Department shall inform the applicant that a licensed plumber must shut off the water service at the main, an inspection must be made by Elk River Utilities before backfilling excavation; an that a bond or deposit is required by the Utilities The Elk River Utilities Office shall make out a repair order for the water foreman stating location and property owner and name of wrecker or mover. When the water is shut off, the water foreman shall note this on the repair order and turn it in to the Elk River Municipal Utilities' Office. In a situation where a new service is installed and the old service is abandoned. The Elk River Municipal Utilities shall notify the City's Building Department Office of said action and instruct the property owner to proceed to have the old abandoned water service disconnected and plugged at the main. 16