01-13-2015 ERMU MIN - Laserfiche WebLink

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Since this policy was adopted in 2010,the economy has begun to recover and we've added additional tools to help us collect on bad debt. However,the risk remains even if bad debt write off has decreased. Troy Adams wanted to review the policy to ensure it adequately protects our customers, is not too burdensome to administer, and that it is not too restrictive that it stifles growth and economic development. Tom Sagstetter had done some research on what others in our industry were doing in terms of required deposits for commercial accounts. They ranged from two months of their average projected usage to only requiring a deposit if there is evidence of delinquency. One of our peers had a policy similar to ours,requiring two months of their average projected usage with the option of waiving the deposit if they sign up for bill pay. Troy Adams added that our deposit policy amount was established to cover the risk,but can also be large enough that it may be a barrier to attracting commercial customers into ERMU service territory. Jennie Nelson shared that we've had to put more deposits on accounts and there's been pushback from both residential and commercial customers. There was discussion on how to reduce the risk without increasing the burden. One idea was shortening the time between usage and payment by implementing bi-monthly billing for commercial customers. While this is not possible with our current system, it may be possible after the transition to our new billing software. Other items of discussion were pre- pay,bank pay, letter of irrevocable credit and personal guarantee. John Dietz requested staff look into this further and bring back some options that will help protect us and reduce our risk even further. Staff will continue to analyze and bring back ideas as they find ways to reduce risk and improve the process. 5.3 Wastewater SCADA Water Tower Attachments The City of Elk River Wastewater Treatment Department needs to utilize two of our water towers to install SCADA antennas to transmit information back to the wastewater treatment plant from the surrounding lift stations. Eric Volk has been working with Matt Stevens, Chief Operator of the Wastewater Treatment Department, on the process of getting their SCADA antennas attached to the Gary and Auburn Street Towers. The plans have been generated and approved and we're now looking at how to proceed regarding a contractual agreement between the City of Elk River Wastewater Treatment Plant and Elk River Municipal Utilities. Troy Adams explained that we'd like to put together a memorandum of understanding that would layout notice times.Eric Volk presented three different options for the compensation part of the agreement. Troy added that with an attachment to a tower there is an opportunity cost for that space, and as we don't currently have a buyer for that space we wouldn't need to charge the city to attach to the tower. We're looking at recognizing the value of being able to attach to the tower for each antenna,and donating that amount back as a pilot.As the Wastewater Treatment Department is an enterprise fund,they would be financially Page 3 Regular meeting of the Elk River Municipal Utilities Commission January 13,2015