08-01-1994 WS - Laserfiche WebLink

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REQUEST FOR COUNCIL CONSIDERATION Agenda Section: CMOS STAFF REPORT Report Number: " °gin August 1, 1994 Report Date: AGENDA SESSION DATE 7 26 94 DISPOSITION Item Description: Discussion Regarding Rates and Meter Operations f,, Administrator's Review/Recommendatio - No comments to supplement this repo, , ,i X11, - Comments attached. Explanation/Summary (attach supplement sheets as necessary.) $[JMMARY; A city wide meter change out is proposed for the 1995 budget.The __ proposed new system will allow for automatic meter reading and billing. This new technology will save on increasing labor costs, and increase revenues in water sales. Estimated costs for this capital expenditure is $620,000. Although this is a high ticket capital investment, it must be noted that the city has never pursued a water meter change out since the system was installed in the 1960 's . These water meters produce revenues for the water division which not only pay for the water produced, but wages for staff, and a borrowing source for other city projects. Staff has researched this project, and received some information from vendors and other cities- relating to the average accuracy ratings of their existing meters. The average rating for meters comparable to our system is 85% accuracy. Since meters very rarely register high, that means the meter is sending a low reading to the register. This happens when meters wear out, or become plugged with minerals such as iron and manganese that are in the water. Mounds View has a very good chance of having many of these such meters. For almost 10 years the Water Division has replaced 500 meters in the system. Many of the meters replaced were either worn out or plugged. Mounds View has approximately 2900 water customers, of which 50 to 60 are commercial/industrial or multi-family buildings .The potential * for revenue loss in a larger meter is considerably higher than in residential meters . Using conservative numbers a short analysis was done to estimate revenues lost to inaccurate meters, and labor costs to read meters once a year, read commercial meters quarterly and perform final readings on residential services throughout the year. /i) Li Mia rich, Public Works Director RECOMMENDATION;