5.3. ERMUSR 10-15-2003 - Laserfiche WebLink

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>I*Elk River Municipal Utilities 322 King Avenue phone: 763.441.2020 Elk River,MN 55330 Fax:763 441.8099 September 17, 2003 To: Elk River Municipal Utilities Commission John Dietz Jerry Takle James Tralle From: Bryan C. Adams Subject: Water Rate for Bulk Water Station During our discussion concerning the construction of the bulk water fill station, staff was asked to survey other communities and determine an appropriate rate for bulk water. Attached is a survey reflecting the results. The majority of the communities do business as we have. They utilize a hydrant and meter adjacent to one of the utilities' facilities that is staffed to receive the payment, watch, and inspect the filling operation. Also, hydrant and hydrant meters can be rented for off-site use with a nominal fee. The normal water rate is used to charge for the water sold. The normal water rate is in the $1 to $2/1000 gallon range. Elk River Municipal Utilities' current bulk water rate is $10/load. Upon moving to our new administration facilities at city hall, we will no longer have a good place to provide bulk water sales at one of our staffed facilities. An automatic remote bulk water station then becomes a necessity. Only Albertville, St. Michael, and Brooklyn Park utilize automatic fill stations at approximately 250/100 gallons. The reason for this rate structure is time and hydraulic characteristic of their particular system. The automatic water shut-off valve is operated by time, not flow or volume. The more money that is paid, the longer the valve remains open. One desires to sell water is small quantities to prevent needlessly over filling the tanks on the vehicle. Once we get our system in and operational, we will calibrate our system and time the water valve opening and closing. I would guess our rate will also be in the 250/100 gallon range or $2.50/1000 gallons which is close to the normal water rate.