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STAFF REPORT <br /> PAGE TWO <br /> AUGUST 1, 1994 <br /> * Mounds View's average usage in million gallons per day, <br /> (mgd) , 1.3 mgd. <br /> * Mounds View's current water rate, $1. 15 / 1000 gallons <br /> * Mounds View's labor rate for water operators including <br /> benefits, approximately $18. 00 / hour. <br /> * Mounds View's costs for annual meter readers $6,000 . <br /> * Mounds View's Utility Clerks rate for meter reading <br /> data entry and billing time, $1,605. <br /> * Assuming a 90 % accuracy rating of water meters. <br /> Calculations of potential savings in labor and increased billable water <br /> usage: <br /> 10 % of 1.3 mgd lost / day is 130,000 gallons. <br /> 130,000 gal. * $1. 15 / 1000 gal. = $149 .50 lost / day <br /> $149 .50 * 365 days / year = $54,567 .50 / year lost <br /> revenue due to inaccurate meters. <br /> Add to $54,567 .50 the cost of labor related to water meters. <br /> $6,000 for annual meter readers <br /> ** Average of 300 meter readings annually = $5,400. <br /> ** 3 days labor to read commercial readings <br /> quarterly = $1,728. <br /> ** Labor saved and revenues earned from inaccurately read <br /> residents reading meters quarterly, and an average of 30 <br /> repairs required quarterly = $2, 160 <br /> ** Utility Clerk's wages for water billing = $1,605. <br /> ** These labor hours and wages can be saved by having employees <br /> involve in other productive tasks. In fact these rates could be doubled <br /> by the fact that employees are taken away from productive tasks to <br /> perform high rate menial labor tasks. <br /> $54,567 .50 - Lost water revenue <br /> 6,000.00 - Annual meter readers <br /> 5,400 .00 - Residential final readings annually <br /> 1,728. 00 - Commercial quarterly meter readings <br /> 2,160 .00 - Rereads and repairs <br /> 1,605 . 00 - Utility Clerks wages for water billings <br /> $71,460.50 Total real dollars saved <br /> Financing this type of project can be accomplished in many ways. There <br /> is no one correct procedure, each city has it's own methods and reasons <br /> for implementing their individual financing plan. Finance Director, Don <br /> Brager and I have briefly discussed a few of Mounds View's options. <br /> Should council approve a meter change out any one of the following <br /> options could be adopted: <br />