CR 04-111 Letter to Property Owners
CITY OF
. July 15, 2004 ~ Council Report 2004-111
NaPKINS
First Reading
Ordinance Amending Existing City Code Sections 710, Water System and 715, Sewer
and Water Rates
Proposed Action,
Staff recommends adoption of the following motion: Move that Council adopt for first
readinq Ordinance 2004-929, amendinq City Code sections 710 and 715.
Overview,
Staff proposes the City Council amend the existing City Code Section 710, Water
System to allow for a citywide replacement program for commercial water meters. The
replacement program is sought in order to: 1} take advantage of current technology to
ensure metering of low and high flows through large meters, 2} upgrade to radio-read
meter system to complete city-wide conversion and improve meter reading efficiency,
and 3) to ensure commercial water users are metered and billed with the same
accuracy as residential users. Currently, most of the larger commercial meters are
quite old and don't allow for the metering of low flow rates. Meter reading efficiency
. could be vastly improved with the commercial meters included in the radio-read system,
which now includes all residential customers.
Primary Issues to Consider.
. More detailed justification
. Replacement program specifics
. Business owner input
. Summary of proposed revisions
Supportinq information.
Steven J. Stadler, Public Works Director
Financial Impact: $ 0 Budgeted: Y/N_ Source:
. Related Documents (C1P, ERP, etc,):
Notes:
.
Council Report 2004-111
Page 2
Analvsis of Issues
. More Detailed Justification
Staff would like to be able to bill all commercial water usage, Currently, we're not able
to determine whether low flows are being metered on meters 2" or larger - about 200
meters. It's hard to estimate the lost revenue with a high degree of accuracy. The new
MarketPlace Lofts development has a 3" water service and one of the new compound
meters that meters low flow separately, The low flow consumption for the first six
months of 2004 was more than 86,000 gallons. If not registered, that would be almost
$300 in lost revenue. Assuming one half of the larger meters are not measuring low
flows, that equates to about $60,OOO/year ($300/meter x 100 meters x 2) in lost
revenue. That lost revenue doesn't take into account inaccurately reading meters - see
Chapel View meter replacement example where actual flows doubled when the meter
. was replaced. The lost revenue in this instance alone was about $3700 over a 5 month
time period. Besides the revenue concern, it just seems fair that the city meter and
charge for commercial water use as accurately as for residential customers' water use.
Current technology radio-read compound meters will allow the city to determine if low
flows are being accurately metered as they separately meter and register low and high
flows. Staff spoke with Mr. Stan Anderson, Munitech, who has been maintaining and
reading meters for 30 years, including a lot of work in Hopkins. He stated that the cost
to test and repair one of the older 3" + meters can easily cost $1,000 including testing,
labor and materials. That's almost half the cost of purchasing a new 3" compound
radio-read meter and transponder. The cost to test and repair a 2" meter is
approximately $300.
By upgrading the commercial meters to radio-read technology, a city utility worker can
read all the city's commercial meters in 3 hours vs. the current system requiring 3-4
days each month. This is a substantial improvement in efficiency for our 5-person water
and sewer division. Additionally, city staff won't have to gain access to secure areas of
commercial buildings to read meters.
Most of the larger commercial meters are very old (25+ years), far exceed their design
life, are surely not metering accurately and are difficult to repair or find replacement
parts. This information is based on many meters that have been replaced in the past
few years. Therefore, staff feels that for a large percentage of existing meters a meter
. upgrade will be required within the next few years as repairs won't be possible.
--. - -.--..-
. Council Report 2004-111
Page 3
. Replacement program specifics
. Commercial property owners would be required to replace their meter and/or
radio-read transponder (if a newer, radio-read compatible meter) in 2005.
Property owners with multiple meters would be allowed to replace all meters
within a three year time period (2005-2007).
. A no-cost water meter replacement permit, issued by Public Works, would be
required prior to new meter installation. This will ensure the proper meter is
purchased, establish inventory of new meters, help track program progress
and allow timely inspection and transponder installation by utility division
personnel.
. Property owners who do not replace their meters would be subject to a
$1 aD/month fine & meter reading fee.
. All meters up to and including one (1) inch are the property of the city.
. All meters greater than one (1) inch will be the responsibility of the property
owner.
. Business owner input
. Staff sent a letter in late June to all commercial property owners describing the meter
replacement program. In response, staff received several phone calls and one letter.
Most of those who responded were concerned about the financial impact of this
program, questioned the cost-effectiveness and felt that there's no benefit to the
property owner.
As mentioned, it's impossible to quantify the city's lost revenues due to meters reading
inaccurately and larger meters not registering low flows. However, staff believes that a
majority of the commercial meters are well beyond their design life, and are not
accurately metering water consumption. Accordingly, the timing appears right to
upgrade the city's commercial meters and, at the same time, expand the radio-read
metering system to all customers, residential and commercial. Additionally, it simply
seems fair to meter and bill all water customers with the same degree of accuracy. This
is only achievable by using the compound meters that separately register high and low
flows.
. Summary of proposed revisions
The major revisions are:
- City is responsible for residential meters up to 1" size
- Maintenance and repair of meters greater than 1" is the
. responsibility of the property owner and this includes meter
replacement to ensure meter reading accuracy or to maintain
compatibility with a city meter reading program and technology
. CITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE 2004-929
AN ORDINANCE AMENDING CITY CODE SECTIONS
710, WATER SYSTEM AND
715, SEWER AND WATER RATES
The City Council of the City of Hopkins does hereby ordain:
Section 1. Hopkins City Code Section 710 - Water System - Section 710.17, Subd. 7, 8 and 9 are
hereby amended to read as follows:
Subd.7. Meters. All meters shall be an approved brand that is compatible with the city's
meter reading system and must measure by gallon units. A City pennit from the Public Works
Department is required prior to the replacement of any commercial meter or any meter larQer than
one inch. All meters must be equipped with a transponder(s) approved by the City. All meters that are
two (2) inches or laroer shall have a transponder for each reqister. one for hiqh flow and one for low flow.
The approval of meters shall be made by the City Manager or his/her designee. No turbine meters shall
be installed, unless it has been approved by the Utility Superintendent or an approved designee. The
owner shall pay for the meter & transponder larqer than 1" in diameter, in advance, The owner aflfl-shall
ensure that the meter and transponder 3Ad outside remote meter are readily accessible to city staff. with
. a twelve (12) inch clear radius around the meter and transponder. to city st3ff.(Amended Ord. #97-798)
Subd. 8. Accessible .^.rea. Need to add something regarding the actual water meter and
tr3l1sponder units inside the property, The outside remote shall be placed no lower than f.our feet from
ground level and located in 3n 3ccessible nrea, The city may allow it to be under three feet, under certain
conditions that are approved by the City Manager or his/her designee, The area must be visible for meter
reading purposes and maintenance purposes. I\n inaccessible outside remote is one 'Nhich is less than
three feet above grade, within a fenced area, behind shrubs, vegetation or debris, below decks, or within
an enclosed area. The owner or occupant of the property shall m3int:Jin such areas in :J clean and safe
condition for the meter reader at all times :lnd shall not 3110\', snow, ice or othor debris to remain in the
area, These requirements shall apply to all existing or newly installed outside meter remotes and
tr3Rsponder. Failure to respond to the city's request to relocate an outside remote reader or otherwise
not gr3Rting permission to the city to relocate the outside remote meter following 30 day written notice will
result in a $10.00 ser.'ice ch3rge per subsequent meter readings. (Added Ord. #97 798)
Subd. 9. MovinQ Outside Remote. The outside remote shall not be moved or removed
from the property without proper authorization from the City Manager or his/her designee. If the outside
remote has been moved or removed without authorization, the property owner ,,':ill be ch3rged for the cost
of relocation or replacement of remote unit. (/\dded Ord. #97 798)
New Subd. MovinQ Transponder Unit. The transponder unit shall not be moved or removed
from the property without proper authorization from the City Manaaer or his/her desjQnee. If the
transponder or wires connectinQ to the meter have been moved or removed without authorization, the
property owner will be charaed for the cost of relocation and/or replacement of the unit. (Added Ord.
2004)
.
. Section 2, Hopkins City Code Section 710 - Water System - Section 710.29 and 710.30 are hereby
amended to read as follows:
710.29. Meter Tamperino. Except for extinguishing fires, no person except authorized city employees
may use water from the water system of the city or permit water to be drawn therefrom, unless the water
is metered by passing through a meter supplied or approved by the city, or unless the water is paid for on
a flat rate basis when using a hydrant. No person may connect, disconnect, take apart, or in any manner
change, or cause to change, or interfere with a meter or the action thereof unless authorized by the Water
Superintendent or his/her desiqnee. Violation of this section shall subiect the property owner to a fee of
( $50', ). Violation may also result in the discontinuance of water service either by shuttinQ off
the water at the stop box or by severino the service at the water main if the stop box is inoperable.
Should the water service be discontinued. reestablishment may not be made until:
(1 ) AU charqes for discontinuance of the water service are paid. includino the fee for
interferino with a meter, if applicable;
(2) All charqes for reinstitution of water service are paid.
, -
New 710.30. Meter Responsibility & Testinq, The city will maintain and repair or replace all S~
residential meters up to and includino one (1) inch when rendered unserviceable through ordinary wear
and tear. When replacement, repair or adjustment of a meter is rendered necessary by the act, neglect
or carelessness of the owner or occupant of a premises, the expense caused the city thereby will be
charged against and collected from the owner or occupant of the premises by a statement of charge
itemizing the repairs. The property may be tagged and appropriately charged, and the water service may
be disconnected until the cause is corrected and the charge collected. All ~ residential meters up to
. and includino one (1) inch W'-3te:' mete+s are the propert of the city, and may be replaced or changed by
the Water Su erintendent when necessa
Repair and maintenance of all meters over 5/8" over one (1) inch shall be the responsibility of the
property owner. Maintenance of meters over 5/g" over one (1) inch shall include: certification testing once
eyery ten years or when deemed necessary by the city's utility billing department, necessary meter
repairs to correct deficiencies, meter replacement when deemed necessary by the City Public Works
Department or Finance Department to ensure water meterinq accuracy or to maintain compatibility with a
city meter readinq prooram and technolooy and submittal of test results to the city's billing department
demonstrating meter is accurate.
All 5/8" moters up to nnd including (1) one inch water meters are the property of the city, nAd may be
replaced or changed by the '.^later Superintendent when necessary,
Failure to allow the city access to the water meter for inspection or repair purposes, or failure to test and
repair illl meters over 5/8" after 30 days written notice from the city shall be considered an act of
negligence and shall be subject to a fine of $100 per month including the 30 day notice period. A person
violating this subsection is guilty of a misdemeanor and the superintendent may disconnect the water
supply to such meter.
(Amended Ord. #92-711)
Section 3. Hopkins City Code Section 715 - Sewer and Water Rates - Section 715.03. Subd. 1 and
715.07. Subd.1 are hereby amended to read as follows:
715.03. Water rates. Subd. 1. Metered Usage. The water rates per 1,000 gallons of metered water
. usage shall be established by City Council resolution. The number of gallons of city water furnished from
time to time shall be determined by water meter readings, and if any such water is used on premises
without a proper water meter or if the meter is out of order, the amount of water used at such interval shall
. be determined by averaging previous water bills for that location with the same or similar use, or by the
average amount of water consumed at other premises during a similar interval with a similar use or
business. Meters may be read by officials of the water department eitRef every month. or overy quarter.
(Amended Ord. #92-712)
715.07. Sanitary sewer; charges and rates. Subd. 1. Residential. The sanitary sewer rates, for
residential customers shall be established by council resolution for each 1,000 gallons of metered water
usage; provided that a maximum dailv water usage be established based on the 3VerJge daily water
consumption in the month or quarter ending in January. February, or March. In cases of new construction,
GF-additions or vacated properties to Jny resideRtia+-LJ-Ait, the average water consumption is to be
determined by the first 30 day period following its completion or occupancy until the next ensuing month
or quarter ending in-January, February or March. Whenever such average water consumption of any
such single family dwellings during the months or quarters ending in January, February or March is
shown to be unfairly disproportionate because of the customer's methods or lack of operation or any other
reason, then and in that event the water superintendent shall establish an average daily water
consumption for the use of fair and suitable methods. The detennination of the superintendent is final.
Properties that have separate water meters for domestic and sprinklinq purposes shall not have a dailv
averaqe of usaqe set. (Amended Ord. #99-828)
Section 4. The effective date of this ordinance shall be the date of publication.
First Reading: July 20, 2004
. Second Reading: August 4, 2004
Date of Publication: August 12, 2004
BY
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
.
City of%pkins Pu6{ic Wor~
11100 'E;(ce&wr 'B{va. · 5WpRjnsJ 9vf2{ 55343-3435 . PFwne: 952.939-1382. !Fa:{; 952-939-1381
. WeE mUTess: U1U1W.fwpJ(jn.smn.com
June 28, 2004
Hopkins Commercial Property Owners
Dear Business or Property Owner:
The City is in the process of starting a program to upgrade or replace all commercial property water meters.
The reasons to upgrade these meters include:
. Complete citywide conversion to radio-read meter technology, residential meter conversion was
completed earfierthis year.
. Improve commercial water metering accuracy and ensure proper billing
[J Ensure accurate measurement of both low and high flows through larger water meters
[J Ensures that the hlgher.consuming commercial water users are metered and billed with the
same accuracy as residential users
. Water utility cost savings by improving water meter reading efficiency
. Eliminate requirement for city employee'to gain access to businesses, apartment buildings, etc to
read water meters
The proposed program would require you to replace your water meter in 2005. If you have a newer meter that
. is radio-read compatible, the City would only need to install a radio read transponder to your existing meter. If
your property were multi-family housing with many meters, you may have the option of replacing them over a
two to three-year period, starting in 2005. The 2004 prices for 11/2" - 6" meters are as follows:
Badger 1 %" meter:......... ...... ..................... $ 435_00
Radio-read transponder only (1 Y<tdisc meter): $ 189.21
Badger 2" compound meter with transponder: $1,588.46
Badger 3" compound meter with transponder: $1,712.85
Badger 4" compound meter with transponder: $2,655.00
Badger 6" compound meter with transponder: $3,788.57
Badger radio-read transponder only (compound):$ 549.45
These prices reflect a substantial reduction from the standard retail meter cost. The meters come with
warranties up to 10 years for the internal parts.
At the July 20 City Council Meeting, the Hopkins City Council will consider approving City Ordinance changes
necessary to implement this water meter upgrade program. If you have questions, please contact Mr. Mike
Lauseng, Utility Superintendent, at 952-548-6373 or em,~lil at mlausenQ@hopkinsmn,com. Or, you may also call
or em ail me at 952~548-63501 sstadler@hopkinsmn,com.
.
part:nering with. tlie Community to 'EnfWnce tfie Quality of Life
+ Inspire. 'Eimate .Invo[ve . Communicate +
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. .Minutes - July 20, 2004 City Council Meeting
2. First Reading, Amendments to Sections 710 and 715 of the City Code (CR2004-111)
These changes to the City Code would allow a program for citywide replacement of
commercial water meters. Reasons for the replacement program are: 1) Technology is
more current for reading both high and low flows; 2) allows for a radio-read system,
completing the complete citywide system; and 3) to ensure that commercial users are
metered with the same accuracy as residential users. Steve Stadler reviewed the
changes.
Mr. Stadler stated that the benefits are difficult to quantify. The older meters are not
accurate.
The changes would begin in 2004 and continue through 2007,
Council members discussed the life expectancy of water meters (15 to 20 years) and
phasing in the installation on properties that have several meters.
Sandy Miller, President of the Meadow Creek Association stated that homeowners that live
in condos and town home are being treated differently than those in single-family homes.
The Meadow Creek Association would need at least four years to accomplish the change
over to new meters.
. Patricia Butler, Westbrooke Patio Homes, stated that they have replaced several meters in
the past few years, but there are still many more to replace, Ms. Butler asked if the meters
could be retrofitted with the transponders. Mr. Lauseng answered that they could. Ms.
Butler stated that they would still need four years to complete the changes,
Tom Buehner, 612 Oak Park Lane, stated that he was angry that condo and townhome
owners were being treated differently than single-family homeowners. He stated that their
association owns two buildings with 1 Y;-inch meters. Single family homeowners had theirs
replaced, why not these?
Doug Strandness, Meadow Creek Condos, stated that they seem to have a lot of "leaks"
and asked jf there was any way the new meters could be monitored to see where the leaks
were located. Mr. Lauseng answered that the technology has not reached the point where
a continuous monitor would be available. Mr. Stadler answered that would be something
the City would encourage.
The Council discussed the time frame and indicated that they would like to see anyone
with fifteen or more meters to replace, have four years to replace them.
The Council discussed the difference in treatment of single-family homeowners and condo
and town home homeowners. Mr. Steiner, City Attorney, stated that the City treats the
. different classifications of homeowners differently in other ordinances. Mr. Genellie stated
that the City does not differentiate between the types of homeowners; rather, the City
differentiates between the sizes of the meters.
1
. Council Member Thompson moved and Council Member Brausen seconded a motion to
adopt for first reading Ordinance 2004-929, amending City Code Sections 710 and 715. A
poll of the vote was as follows: Council Member Brausen, aye; Council Member
Thompson, aye; Council Member Johnson, aye; Mayor Maxwell, aye, The motion carried
unanimously.
Minutes - August 4,2004 City Council Meeting
Several residents came forward to address the second reading of ordinance amending
sections 710 and 715 of the City Code.
Sandy Miller, President of the Meadow Creek Condo Association, stated that the multi-
family homeowners were being treated differently and felt that their tax dollars were being
used to support single-family homeowners, but the reverse was not true.
Steve Stadler stated that the difference is in the size of the meters, not the type of
homeowner. Other services we perform, such as garbage removal, are different for
different types of homeowners. Commercial is also based on size.
Lori Oestreich, Landmark Tr. N, asked if single-family homes with larger meters were
replaced free or if they would pay. Mr. Stadler responded that they would pay.
. Mark Knoblauch, Westbrooke Patio Association, stated that they have replaced several
meters at their expense and now would have to have some of them retrofitted. This will be
a large expense for their association. Mark stated that the pipe size was arbitrary.
Patricia Butler, General Manager Westbrooke Patio Homes, stated that both Meadow
Creek and Westbrooke are not for profit associations.
June Degrandis, resident of Meadow Creek, asked for the difference in cost of a one-inch
meter and a larger meter and asked if the City could pay the difference.
Council Member Thompson asked if the ordinance could be changed to give the meter to
homeowner occupied units,
City Attorney Steiner responded that they could look at home owner occupied language,
but there could be mixed uses on a line.
Council Member Brausen said the meters have to be verified for accuracy. Homeowners
that already have the new meters could say that those who do not have new meters are
not paying for all the water they use. Some meters have never been tested. The testing
could cost as much as the new meter,
Council Member Johnson stated that she would like to look into the idea of owner occupied
. homes getting meters from the City.
Council Member Rowan agreed.
2
. In response to questions asked by the City Manager, Mr. Stadler said that the meters are
paid for from the water utility funds, not tax dollars; and the City installs the smaller meters,
a plumber has to install those over one inch, The City has limited the service to what the
City is capable of doing, similar to garbage collection.
Council members questioned the time line. Mr. Stadler responded that the program begins
in 2005, so there is nothing compelling action at this time.
Mr. Genellie stated that staff would notify all those identified as being affected by the
ordinance when the discussion will be held. It probably would not be until October.
Council Member Rowan suggested a credit on the water bill for owner occupied units.
Council Member Johnson asked if there were other affected homeowners. Mr. Stadler
said that he would do the research prior to a work session discussion.
Council Member Brausen moved and Council Member Rowan seconded a motion to
continue the second reading to a future date. A poll of the vote was as follows: Council
Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye;
Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously.
.
.
3
. Water meter replacement plan irks homeowners
Marc Ingber
Sun Newspapers
(Created 8/12/2004 9: 12: 15 AM)
The city's plan for replacing all of its water meters has left many Hopkins residents
feeling like they got the short end of the stick.
Because of a technicality dating back to 1977, some properties will be paying for the
replacement while others were let off the hook.
Several residents spoke about the issue during the Hopkins City Council meeting Aug. 4.
The issue became apparent in June when the city sent a letter telling all owners of
properties with water meters greater than one inch in diameter, usually businesses,
condominiums, apartments and multi-family homes, that their water meters need to be
replaced. The replacement is needed because the meters are out of date and under-
reading, costing the city money, said Doug Strandness, property manager for Meadow
Creek Condos.
. Technically, the city only owns the water meters that are one inch in diameter or smaller.
Therefore it replaced all those meters without billing the properties' occupants.
But the properties that have a water meter greater than one inch in diameter will be billed
for their replacement.
According to Steve Stadler, public works director, those properties with only one water
meter will have until the end of 2005 to replace them, properties with 2 to 15 meters will
have up to three years and those with more than 15 will have up to four years.
But the fact that they have to pay for the replacements has rubbed many residents the
wrong way.
"We feel like the city is saying there are two different kinds of homeowners," Strandness
said. "If [owners of single-family homes aren't] writing out a check neither should multi-
family homes."
Several condominium officials vented their frustrations at the Aug. 4 Hopkins City
Council meeting. As a result, the council is planning to discuss ways to differentiate
between multi-family homes and businesses, Stadler said,
He said the city sent out the letters in June, way ahead of the deadline, for a reason.
e "The letter did what it was supposed to do, so everybody was informed," he said.
1
. Meadow Creek has 536 units and 28 water meters, which are each 1.5 inches in diameter.
Strandness said it would cost $17,700 to replace the water meters.
The tec1micality saying the city owns only meters smaller than one inch in diameter is
what is causing this problem, Strandness said, but back then there weren't nearly as many
multi-family homes, so it wasn't very controversial.
He said the best and most fair solution would be for the city to pay for the replacement of
all the water meters.
"The size shouldn't matter," Strandness said. "They're all homeowners."
Pat Butler, general manager of Westbrooke Patio Homes, said the City Council should
change the rules to make it fair.
She also said that Westbrooke is a nonprofit organization, so it wasn't an issue of
increasing their earnings. Butler said the water meter issue likely affects more than 1,000
households and more than 2,000 people in Hopkins.
Strandness said the council should deal with this issue now that it is getting negative
feedback. He said he is optimistic about a resolution.
. "They're very fair and reasonable people," he said of the City Council. "Based on past
experiences I've got a hope there will be a fair conclusion."
Water meter replacement
The city replaced all the water meters that were one inch in diameter or smaller without
billing any of the property owners.
But for water meters greater than once inch, the property owners will be billed, These
properties include many businesses, condominiums and multi-family homes.
Because this is angering many residents, the City Council is discussing ways to
differentiate between businesses and multi-family homes,
.
2