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6.2. ERMUSR 08-22-2006~/ Elk River ~ '~ Municipal Utilities ~ 13069 Orono Parkway Elk River, MN 55330 August 8, 2006 To: Elk River Municipal Utilities Commission Jerry Takle Jim Tralle John Dietz From: Bryan Adams Subject: DNR Water Appropriation Increase phone: 763.441.2020 Fax: 763.441.8099 As seen from the production and sales graphs in the financial section of our packets, Elk River is consuming large quantities of water. This year we will be close if not exceeding our DNR appropriations of 875 million gallons. Attached is a letter dated 7-18-06 to DNR Water with the pertinent attachments requesting the annual water appropriation be raised to 1400 million gallons. This letter explains the reasons for the increase and our conservation efforts to minimize water use. The DNR also requires us to update water emergency and conservation plan which was last revised in 2001. Staff is in the process of completing this document. This is a large and time consuming effort with the end product of limited value. ~i \ Elk River Municipal Utilities 13069 Orono Parkway Elk River, MN 55330 July ] 8, 2006 Mr..1oe Richter DNR Water 500 Lafayette Road Box 48 St. Paul, MN 55155-4048 Subject: Water Appropriation Increase Dear Mr. Richter; phone: 763.441.2020 Fax: 763.441.8099 Our current water appropriation permit # is 7~-3215. The quantity is limited to 6800 gpm and 87~ million gallons per year. llue to the growth in Elk River, we desire to increase our water appropriation to 1400 million gallons per year, which will accommodate approximately 5 years of growth. We are also studying the potential of adding an additional Mt. Simon Hinckley well in 2007. Enclosed is the following information for your review as justification to increase the annual allocation: 1) Elk River Municipal Utilities water statistic graphs a) Peak day pumpage graph from 1991 to projected 2015 b) Annual water pumpage from 1991 to projected 2015 Elk River continues to be a fast growing community. Currently there are approximately 17 commercial/Industrial buildings under construction that are not yet on the water system. A couple of these will be large water users in the area of ~0 million gallons per year each. 2) Elk River Municipal Utilities water sales reports reflecting residential and commercial/Industrial sales, revenue and number of water meters. The increase in meter again reflects Elk River's fast growth rate. 3) Elk River Municipal Utilities water step rate analysis by residential and commercial/Industrial rate class. These spreadsheets also reflect consumption and number of customers. The residential average of off season usages per meter (Nov, Dec, Jan, Feb & March) reflect a downward trend over time from 8.3 units/meter to 5 units/meter. The commercial/Industrial average of off season usages stays relatively flat which is also good. Lawn sprinkling continues to drive high usage in the summer months. 4) Elk River Municipal Utilities water conservation brochures, which includes lawn sprinkling restrictions & door hanger. We do several articles in our local paper concerning lawn sprinkling and general water conservation. 5) In an effort to raise water conservation awareness, we have mailed to all water customers the following: a) 2005 -Moisture meter with a letter b) 2006 -Rain gauges with a letter Again our goal is to raise awareness about proper lawn sprinkling practices. 6) Elk River Municipal Utilities water rate sheets. These rates reflect a 2 tier inclined block rate structure with the higher second block designed to more effectively discourage lawn sprinkling. Rates are adjusted on an annual basis. We are experiencing many more high water bill complaints than previously which indicates the rate structure is having a impact. The above information shows our public education and conservation efforts are having some success, but the growth of our community requires more water production capacity. As you are aware, we are trying to do pilot test of an aquifer storage and recovery (ASR) system utilizing our well #2. This pilot test has gotten Bela}red due to the EPA's request for additional information. We plan to continue this pilot test but due to the delay we need to increase our peak pumping capacity by drilling another well. Our schedule indicates this additional well will happen in the 2007 time frame. As our plans become finalized, we will make application for this additional well. If you have any additional questions about the above, do not hesitate to call. Bes regards, pan Adams, P.E. eneral Manager cc: file Dave Berg Sheet2 Elk River Municipal Utilities Peak Day Pumpage 16000 ~a ~ 14000 ~ Maximum 0 ~ 12000 "~ 10000 o, 8000 Pum i Ga ~""' Probable E "'""~ a 6000 ~ Minimum ~ 4000 O ~ 2000 m a 0 1985 1990 1995 2000 2005 2010 2015 2020 Year This graph reflects the peak day system usages the water production facilities must satisfy. Growth of the peak day demand dictates when additional water wells, filter plants,and water towers must be added to the system. Pumpage projections in the above graph are a function of both weather and growth. Elk River Municipal Utilities Annual Water Pumpage 2500 R (7 0 °0 2000 0 0 0 1500 m rn co a ~ 1000 a °~,; ~ 500 R c c Q 0 Mnual limit for Elk Rfver i9 8'ir'S;000,t)<10 fiat; Maudmu-ri ~~ ~'`~ Probable ~~ ~~ Mlnlmum 1985 1990 1995 2000 2005 2010 2015 2020 Year This graph reflects the annual water use in Elk River. Water use of 651 million gallons is a 3.31 % decrease from 2003 due to unusual wet weather. 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