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zones and up to 25 zones would cost $1,000. He has estimated that it will be approximately <br />$1,000 to complete the audit and make the necessary changes that he anticipates he would <br />find through the audit process. The information we quickly pulled together for last month's <br />Utilities Commission meeting indicated that the cost to convert the system was <br />approximately $600, which is the cost of a "SMART" controller in a standard size capable of <br />handling 9 zones. The reality of this situation is most associations are going to need the <br />larger "SMART" controller at a cost of $1,000 plus the audit and any repairs or <br />modifications that are necessary. So the total cost of converting an average association <br />system will be in the $2,000 range. We believe that the cost to totally convert a residential <br />system would be approximately half this amount. <br />We are therefore modifying our recommendation from last month's to indicate a rebate of <br />$250 for a single family residential conversion and $500 for an association and <br />commercial/industrial conversion. Rather than increase the amount of the credit per month <br />on the water bill, we have extended the number of water bills that would receive the credit, <br />so a single family resident would receive a $25 credit for 10 months, and an association or <br />commercial/industrial property would receive a $50 credit for up to 10 months. If the <br />Utilities Commission is comfortable with this proposed change, we are prepared to send <br />notices to the associations in the city and make announcements in the City of Elk River's <br />upcoming newsletter, detailing the rebate program. <br />C:\Documents and Settings\dberg\Local Settings\Temporary Internet Files\OLI~DB\OS 12 09 memo Utilites Commission.doc <br />