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Elk River~~ <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />UTILITIES COMMISSION MEETING <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />www.elkriverutilities.com <br />TO: FROM: <br />Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations <br />John Dietz, Chair <br />Daryl Thompson, Trustee <br />Al Nadeau, Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />Februa 14, 2012 5.3 <br />SUBJECT: <br />Review De osit Polic Revision <br />BACKGROUND: <br />At last month's commission meeting with the review of fourth quarter write-offs, there was some <br />discussion on the deposit amounts for apartments. This was taken back to staff and a proposed <br />increase was discussed. <br />DISCUSSION: <br />When the policy was first written, it was determined two times the average month's usage was <br />an appropriate deposit amount, and this was stated in the policy. Rather than calculate that <br />amount for every individual signing up for service, averages were determined that could be <br />applied across the board to all residential customer classes: $80 apartments, $100 water and <br />sewer services, $150 all-electric heat services, and $250 for all three services (electric, water, and <br />sewer.) These amounts are now listed out in the revised policy for better communication with <br />our customers. <br />Given the history that we now have for apartments since the adoption of the policy, an increase <br />seems appropriate to better cover our risk. A $20 increase to $100 for apartments (that are not <br />all-electric heat) is more reflective of a two month average apartment usage and would help to <br />mitigate our risk for nonpayment. <br />ACTION REQUESTED: <br />Staff requests approval of the attached revised Deposit Policy. <br />PRNEREO BI <br />I~A~'URE <br />P,: ta, r~ =Ea~~ <br />