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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission <br /> MEETING DATE: <br /> Michelle Canterbury—Executive Administrative Manager <br /> AGENDA ITEM NUMBER: <br /> November 12, 2019 5.4 <br /> SUBJECT: <br /> 2020 Utilities Fee Schedule and Street/Security Light Service Rate <br /> ACTION REQUESTED: <br /> Approve the 2020 Utilities Fee Schedule for Adoption into Ordinance by the City Council. <br /> Approve the Revised Street/Security Light Service Rate sheet. <br /> BACKGROUND: <br /> Typically, the Elk River Municipal Utilities Commission approves the budget in December. In <br /> January,the rates and fees are published. Per legal counsel, the Utilities' ability to collect on <br /> fees would be strengthened by having them listed as part of the City's Master Fee Schedule and <br /> adopted into city ordinance after being approved by the Commission. <br /> DISCUSSION: <br /> Annually ERMU staff reviews the proposed fees for the upcoming year. Proposed changes are <br /> highlighted in yellow on the attached fee schedule. Proposed changes include: <br /> Street Light Fees—Two new product offerings are being added to the fee schedule, a 14 foot <br /> decorative pole with an acorn fixture, and a 14 foot decorative pole with a cobra fixture.These <br /> new product offerings will help fulfill the City of Elk River's downtown, and the City of Otsego's <br /> street lighting needs. With the addition of the new street lighting options, staff conducted a <br /> cost analysis of our existing street lights and is recommending price increases to the 30 foot <br /> decorative pole, and the 23 foot decorative pole.The proposed prices include the cost of <br /> materials and labor. As a result of the addition of the decorative poles, the Street/Security Light <br /> Service Rate sheet has also been revised to include the associated monthly rate per fixture. <br /> Historically there has been an annual increase to the Water Connection Charge and Water <br /> Availability Charge. As ERMU staff will be working with a consultant to conduct a cost of service <br /> and rate design study in 2020, at which time we'll verify our philosophy on allocation of cost <br /> and aid to construction for water connection fees, staff is recommending no increase to these <br /> fees at this time. <br /> FINANCIAL IMPACT: <br /> The proposed fees have been added or adjusted to cover the cost of providing services to our <br /> customers. <br /> Page 1 of 2 <br /> 210 <br />