5.3 ERMUSR 11-13-2018 - Laserfiche WebLink

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ElkRiver\,V��, Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Michelle Canterbury — Executive Administrative Manager MEETING DATE: AGENDA ITEM NUMBER: November 13, 2018 5.3 SUBJECT: 2019 Utilities Fee Schedule ACTION REQUESTED: Approve the 2019 Utilities Fee Schedule for Adoption into Ordinance by the City Council BACKGROUND: Typically, the Elk River Municipal Utilities Commission approves the budget in December. In January, the rates and fees are published. Per legal counsel, the Utilities' abihty to collect on fees would be strengthened by having them listed as part of the city's master fee schedule and adopted into City ordinance after being approved by the Commission. DISCUSSION: Annually ERMU staff reviews the proposed fees for the upcoming year. Proposed changes are highlighted in yellow on the attached fee schedule. Proposed changes include: Water Connection Charge and Water Availability Charge — In keeping in line with what the city is proposing for their increase to Sewer Access Charges (SAC), staff is recommending increasing ERMU's Water Access Charges (WAC) by the same percentage; 3.6%. In 2019, ERMU staff will be going through and verifying our philosophy of allocation of cost and aid to construction for water and electric connection fees, and analyzing that for consideration in the 2020 fee schedule. NSF Fee — Although State Statute allows for a service charge, not to exceed $30.00, to be imposed on any dishonored check, ERMU's practice has been to impose a $20.00 fee, as this covers the costs associated with processing a returned check. We have communicated this fee to customers with a clause on the monthly bill that states that there is a $20.00 charge for returned checks in addition to any fees their bank may charge. Staff is recommending adjusting the fee schedule to reflect our actual practice of a $20.00 NSF fee. At the October 9 Commission meeting, the Commission supported the idea of an opt -out program and directed staff to research and bring back some dollar amounts to offer the program for both water and electric. Based on initial research, it appears that a onetime $50.00 opt -out fee per service (electric or water), and a monthly $20.00 manual meter reading fee, would cover the costs associated with offering the program. As there are still some unknowns, and further details to work through before offering the opt -out program, staff recommends waiting to add these fees to the fee schedule until everything is finalized. Page I of 2 75