08-01-1994 WS - Laserfiche WebLink

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STAFF REPORT PAGE THREE AUGUST 1, 1994 1. Institute a meter charge of $5.00 per quarter. 2 . Increase water rates by $ .05 per 1000 gallons . 3. Assess a one time meter fee for replacement. 4 . Finance the purchase of the change out through a lease to own or purchase agency. This option can be discussed further at the council meeting. It may have some good financial advantages. 5 . Commercial / Industrial and Multi-family residents would pay completely for their meters. Based on the preceding options, the following revenues could be produced: $5.00 / quarter meter charge = $23,725 / year $ .05 rate increase = $57,000 / year In summarizing all the preceding estimates of increased revenues, rates, and meter charges and decreased labor hours approximately $152,185 per year could be generated. If initial cash flow is needed, a loan from retained earnings of the Water fund could be used. Current pricing information indicates that a complete residential meter replacement would cost approximately $215 . As mentioned earlier in this report, the City has replaced approximately 500 meters in the last 10 years that could be retrofitted with the proper equipment to enable them to be compatible with an automatic reading system. The reduction in cost is anticipated to be $55 per meter or a $27,500 savings. These meters in the system would be randomly tested for accuracy. The aforementioned costs reductions in labor and the increased water revenues are two very good reasons for considering this project. Staff would also express some growing concerns related to reading water meters. In recent years fears throughout the general public to allow any strangers into homes has increased. Even though the City's meter readers are trained and carry identification, some residents will not allow them to enter their homes. There is also some concern expressed from City readers about entering homes alone and having to go down into a basement to read meters. Meter readers are allowed to return to a residency three times to attempt to get a meter reading. Many times the reading is not received. It is then the responsibility of the full time water operators to schedule an appointment to read the meter. One last comment for thought is that the City should receive payment for all water consumed by the community, and the customers should feel that the City is operating the Water business in the most efficient and cost effective manner. If Council should have any questions prior to the work session that may require staff to procure more information, or any general question, please feel free to call me.