5.3 ERMUSR 11-10-2020 - Laserfiche WebLink

Home Browse Search

UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Michelle Canterbury– Executive Administrative Manager MEETING DATE: AGENDA ITEM NUMBER: November 10, 2020 5.3 SUBJECT: 2021 Utilities Fee Schedule ACTION REQUESTED: Approve the 2021Utilities Fee Schedule for Adoption into Ordinance by the City Council. BACKGROUND: Typically, the Elk River Municipal Utilities Commission approvesthe budget in December. In January, the rates and fees are published. Per legal counsel, the Utilities’ ability 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 – Based on the cost of service study conducted in 2020 which included an analysis for ERMU’s water access charge (WAC), staff recommends increasing the Water Connection Charge and Water Availability Charge. The study determined that ERMU’s current WAC fee of $3,764per unitwas less than it should be to cover the true cost for a customer to buy into the existing water system at $3,990. The proposed change results in a 6% increase to the Water Connection Charge and Water Availability Charge. Hydrant Wrench – After review of our hydrant meter rental agreement and associated procedures, staff has determined that a hydrant wrench fee should be added to the fee schedule. The hydrant wrench fee would be charged only in instances when the wrench is damaged or not returned. FINANCIAL IMPACT: The proposed fees have been added or adjusted to cover the cost of providing services to our customers. ATTACHMENTS: Proposed - 2021 Utilities Fee Schedule ______________________________________________________________________________ Page 1 of 1 71