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3) Elk River Municipal Utilities water step rate analysis by residential and <br />commercial/Industrial rate class. These spreadsheets also reflect consumption <br />and number of customers. The residential average of off season usages per <br />meter (Nov, Dec, Jan, Feb & March) reflect a downward trend over time from <br />8.3 units/meter to 5 units/meter. The commercial/Industrial average of off <br />season usages stays relatively flat which is also good. Lawn sprinkling <br />continues to drive high usage in the summer months. <br />4) Elk River Municipal Utilities water conservation brochures, which includes lawn <br />sprinkling restrictions & door hanger. <br />We do several articles in our local paper concerning lawn sprinkling and general <br />water conservation. <br />5) In an effort to raise water conservation awareness, we have mailed to all water <br />customers the following: <br />a) 2005 -Moisture meter with a letter <br />b) 2006 -Rain gauges with a letter <br />Again our goal is to raise awareness about proper lawn sprinkling <br />practices. <br />6) Elk River Municipal Utilities water rate sheets. These rates reflect a 2 tier inclined <br />block rate structure with the higher second block designed to more effectively <br />discourage lawn sprinkling. Rates are adjusted on an annual basis. We are <br />experiencing many more high water bill complaints than previously which indicates <br />the rate structure is having a impact. <br />The above information shows our public education and conservation efforts are having some <br />success, but the growth of our community requires more water production capacity. As you <br />are aware, we are trying to do pilot test of an aquifer storage and recovery (ASR) system <br />utilizing our well #2. This pilot test has gotten Bela}red due to the EPA's request for additional <br />information. We plan to continue this pilot test but due to the delay we need to increase our <br />peak pumping capacity by drilling another well. Our schedule indicates this additional well <br />will happen in the 2007 time frame. As our plans become finalized, we will make application <br />for this additional well. <br />If you have any additional questions about the above, do not hesitate to call. <br />Bes regards, <br />pan Adams, P.E. <br />eneral Manager <br />cc: file <br />Dave Berg <br />