5.2. ERMUSR 06-11-2013 - Laserfiche WebLink

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c51 N) Elk River 4 Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: June 11, 2013 5.2 SUBJECT: Water Availability Charge (WAC) Program BACKGROUND: At the June 3rd City Council meeting, the Council adopted Ordinance 13-13, which created a "look back"option for calculating the Service Availability Charge (SAC) for sewer connections. The ordinance is similar to what the City of Otsego uses. The City also adopted a flexible SAC financing option based on their 2012 Ordinance 12-17 which allowed for costs associated with connections to city service be paid as a special assessment. DISCUSSION: In ERMU's Policy 5.0 — Water Rules, the Water Availability Charge (WAC) determined by the City's calculation of SAC units. The philosophy behind the ERMU being lock-step with the City is that typically water in = water out. The calculation for sewer units should equal the water units for the same building. There is the potential for specific cases where this would not be true, for example a building with a large chiller with high water evaporation. However, there is good justification for the WAC units to be the same as the SAC units. As a result of the City's adoption of the a "look back" ordinance amendment for SAC, staff has considered the application to the water department and determined that it is appropriate for ERMU to adopt a program that would mirror the City's. To minor the City's "look back" ordinance, ERMU needs to make the following change in the Water Rules: SECTION 106 WATER ACCESS FEES & CONNECTION CHARGES COMMERCIAL/INDUSTRIAL DEVELOPER a) Connection, access and meter fees (See Base Charge List) must be paid and plumbing permit number supplied before delivery of the water meter will be made. The remaining portion of the WAC fee of$2,000 per unit plus tax will be paid at this time upon determination of total WAC units. The number of rig PoffEOEO er Page 1 of 2 jNATUREI Reliable Public Power Provider P o w r n r o T c S f 9 V