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<br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway • P.O. Box 430 <br />Elk River, MN 55330-0430 <br />UTILITIES COMMISSION MEETING <br />~~ <br />Phone: 763.441.2020 <br />Fax: 763.441.8099 <br />TO: FROM: <br />Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations <br />John Dietz, Chair <br />Jerry Gumphrey, Vice Chair <br />Dar 1 Thom son, Trustee <br />MEETING DATE: AGENDA ITEM NUMBER: <br />Se tember 15, 2010 5.5 <br />SUBJECT: <br />Meter Reading <br />BACKGROUND: <br />In 1988, Patrick McBrady entered into a meter reading agreement with Elk River Municipal Utilities <br />(ERMU). This agreement automatically renews annually with the current contracted year ending on June <br />1, 2011. Over the years this contract has been modified due to improvements in technology and changes <br />in costs. On August 2d`~', Patrick McBrady informed staff that September would be his last month reading <br />meters from ERMU. The contract does allow for termination in mid term by mutual agreement. A <br />Termination Agreement has been sent to Patrick for execution. <br />DISCUSSION: <br />Moving forward, there are a number of options to meet our meter reading needs. We could contract out <br />the meter reading, or bring the meter reading in house using current staff, or we could bring the meter <br />reading in house and hire additional staff. Contracting out the meter reading reduces our control on the <br />process, quality, and scope of work. Starting over with a new meter reading company would introduce <br />new challenges with teaming ERMU's system, policies, and procedures. Bringing meter reading in house <br />also gives ERMU more control on controlling cost and efficiency. It would be favorable to bring the <br />meter reading in house. <br />Over the past years, ERMU has been changing the mechanical electric and water meters out and replacing <br />with electronic Encoder-Receiver-Transmitter (ERT) meters. These meters can be read remotely. With <br />the advancement in meter reading technology and the progress made in changing out meter to ERTed <br />meters, ERMU has seen great improvements in meter reading efficiency that have kept up with our <br />growth rate. A year ago, ERMU purchased an upgraded meter reading device, called a McLite, which is <br />capable of cutting the meter reading time to a fraction of what it is currently. Staff has been working on <br />an implementation plan for this new piece of equipment and had McBrady Meter Reading testing the <br />equipment. With this piece of equipment it would not be inconceivable to bring the meter reading in <br />house without hiring additional staff. This device does, however, have some limitations with the number <br />of routes that can be loaded. Days afrer the meter reading agreement termination notice from McBrady, <br />staff was contacted by the company that sold us the McLite with an opportunity to purchase anew-in-the- <br />box second-hand device, a mobile collector. This device would be a significant upgrade in meter reading <br />abiliTy to the McLite and would eliminate the limitations on the number of routes that can be loaded. This <br />