5.2 ERMUSR 04-09-2024 - Laserfiche WebLink

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If the meter box was in obvious disrepair due to neglect, property owners were required to replace the box at their cost. In all other instances, Austin and Owatonna absorbed the repair costs needed to replace the meter. For water meters, Austin and Owatonna confirmed the most common repair was the installation/replacement of the plumbing shutoff valve, located just before the meter. There must be a functioning shutoff valve so the flow of water can be shut off prior to replacing the meter. Both cities reported the use of independent water service funds to absorb necessary repair costs. In both cases, the programs contributing to these funds were established prior to their AMI projects. These programs are primarily used to fund residential service line repairs between the main and the curb stop. Austin charges $3.00/month for their program. Owatonna charges $0.99/month for their program. Information on both programs is attached. 1910T11►[a]/-19 Although impossible to predict, a reasonable estimate is 10-20 homes across our service area may require a full replacement of their electric meter box. Using an estimated $1,000 cost per replacement, this equates to $10-20K in necessary electrical repairs. These funds would come out of the project budget. If the electric budget for the project is exceeded, the excess funds would come out of electric reserves. The electric budget for the project is $3.225M. Regarding water meters, a reasonable estimate is 100-150 homes may require the installation/replacement of their water shut-off valve. Using an estimated $300 per job, this equates to $30-45K in necessary plumbing repairs. These funds would come out of the project budget. If the water budget for the project is exceeded, the excess funds would come out of water reserves. The water budget for the project is $2.870M. Note: The amounts presented are estimates only, they are not intended to cap our expenses. If we choose to go this route, we will have to treat all customers the same, even if the total costs exceed our estimates. NEXT STEPS: Staff recommend absorbing the electric and water (plumbing) repair costs needed to facilitate residential meter replacement. Absorption of these costs would be limited to the AMI project's duration. Additionally, thought should be given to implementing a similar water service line program in Elk River. Staff would like commission direction on whether there is interest in discussing policy options at a future commission meeting for implementing such a program. ATTACHMENTS: • Owatonna Public Utilities Water Service Line Protection Brochure • Austin Utilities Water Service Fund Rules Page 2 of 2