CR 2004-111 Sewer and Water Rates
iCIlY OF 'I
i '
. 'JUly 15, 2004 .,." Council Report 2004-111
HOPKINS
,First Reading
OrdinanceAmendingExisting City Code Sections 710, Water System and 715; Sewer
, and Water Rates
, Proposed Action.
Staff recommemdsadoption of the following motion: Move that Council adopt for first
readinqOtdinance 2004-929.amendinq CitvCode sections 710 and 715.
Overview. "
Staff proposes theCityCouncil 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 complet~City;.wide conversion and improve meterreadingefficiency,
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 anddonlallowfor 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 owne'f input '
. Summary of proposed revisions
Supportinq information.
..' Ordinance 2004-929
. Letter to propert owners
. Wat tering ports .
Steven J. Stadler, Public Works Director
Financial Impact: $ 0 Budgeted: Y/N--:...- Source:
. Related Documents (CIP, ERP, etc.):
Notes:
-~.
.-;'
.
Council Report 2004-111
Page 2
Analvsis oflssues
. 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 ohe .of the new compound
meters that meters low flow separately. . The low flow consumption for thefirst six .
months of 2004 was.more than 86,000 gallons. If not registered, that would be almost
$300 In lost revenue. Assuming one halfof the larger meters are not measuring low
flows, that equates to about $60,000/year ($300/meter x 100 meters x2) 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 overa5 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 allowthe 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 alot of work in. Hopkins. He stated that.the cost
to test and re'pair 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 improvementin efficiency forour 5-person water'
and sewer division. Additionally, city staffwon't have ~o g~in.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 l1leters 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 m~ter 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
$100/month fine & meter reading fee.
. All meters up to andiincluding one (1) inch are the property of the city. .
. All meters greater than one (1) inch will be the responsibility ofthe property
owner.
. Business owner input
. Staff sent a letter in late June to all commercial property Qwnersdescribing the meter
replacementpr~gram. In response, staff received several phone cal/sand one letter.
Most of those who responded were concerned about theJinancial impact ofthis
program, questioned the cost-effectiveness and felt that there's no benefit to the
property owner.
As mentioned, it's impossible to.quClfltify 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, atthe 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,S4bd. 7, 8 and 9 are
hereby amehdedtoread 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 oefJTlit from .. the Public Works
Deoartment isreQ~ired orior to thereolacement of any commercial meter or any meter laraer than
one inch. All meters must beeauipped with a transponder(s) approved by the City. All meters that are
two (2) inches or larger shall have a transponder for each reaister. one for hiah flow and one for low flow.
The approval of meters shall be made by the City Manager orhis/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 larger than 1"in diameter, in advance. Theowneraoo..shall
ensure that the meter and transPonder and outside remote meter are readily accessible to city staff. with
. a twelve (12) inch clear radius around the meter and transponder. to city staff. (Amended Ord. #97-798)
$u9d. 8. Accessible /\rea. Need to add something regarding the actual 'A-ater meter and
traRsponder'units inside the property. The outside remote shall be plaoed nolov'1er than four feet from
ground le'/eland located inan acoessible area. The city mayalfew it to be under three feet, under certain
conditions that are approved by tho City Manager or hislherdesignee. . The area must be v~8jble for meter
reading purposes and maintenance pUfJ3Gses. An inaccessible outside remote is one whichis.less than
three feet -above grode, within a fenced area, behind shrubs, '1eliJ8tation or debris, below decks, or 'Nithin
aR-eRGlosed area. The o'liner or occupant of the property shall mointain such areas in a cleaR and safe
condition for the mater reader at all times and shall not 0110''''' snow, ice or other debris to remain in the
area. These requirements shall apply to. all existing or ne'Nly installed outside. meter remotes and
tfaAspGR€#ef" Failure to respond to the citY's roquest to relocate an outside remote reader or othelv:ise
not granting permissien to the city to releGate the.-Gl:Jtsiee remote meter following 30 day written notice ....111
result in a$~ 0.00 service charge per subsequent meter readings. (Added Ord. #97 798)
Subd. 9. Movin~ Outside Remote. The outside remote shall not be mO'/ed or remO',,'ed
from the property 'Nithout proper authorization from the City Manager or hislher designee. If the outside
remote has been moved or removed 'Nithout authoriz3tion, tAeproperty-.9>....ner will be chorged f-or the cost
of relocation or replacement of remote unit. (Added Ord. 1197 798)
New Subd. Movina Transponder Unit. The transponder unit shall not be moved or removed
from the property without proper authorization froll) the City Manager or his/her desianee. If the
transponder or wires connecting 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 Tampering. Except for extinguishing fires, no person except authorized city employees
may use water from the water system of the city or pennit 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 designee. 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 shuttino 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) All charoes for discontiriuanceof the water service are paid. including the fee for
. . interfering with a meter. if applicable: .
(2) All charlles for reinstitution of water service are paid.
...-:~ "~i:,~~:,,~::;;2:;"O;E;:~~::5
New 710.30. Meter Responsibility & Testino, The city will maintain and repair or replace all 5f8!!
residential meters UP to and including 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 5f8!! residential meters UP to
and including one (1) inch w3ter meters are the prope of the city, and may be replaced or changed by
. th rSu den cessa
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 5/811 over one (1) inch shall include: certification testing once
every 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 meterina accuracy orio maintain compatibility with a
city meter readina program and technoloayand submittal of test results to the city's billing department
demonstrating meter is accurate.
All 5/8" meters up to and including (1) one inch '....ater meters are the property of the city, and may be
replaced or changed by the \Nater Superintendent when necessary.
Failure to allow the city access to the water meter for inspection or repair purposes, or failure to test and
repair .. all 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 $1 00 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 amendedto 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 fumished from
time to time shall be detennined 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 rocation 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 .eitIlef every month. or every 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 bycollncil resolution fot each 1,000. gallons of metered water
usage; provided that a ~ daily water usage be. established based on the average daily water
consumption in the month or quarter e~ding in January. February, or March. Incases of new construction,
Gf-additions or vacated properties ~ti-aH:mit, the average water consumption is to be
determined by the first 30 day period following its completion or occupancy until the next ensuing month
erquarter ending in-January. February or Marcil. Whenever such average water consumption of any
such single family dwellings during the months or quarteFS ending in January, February Gf-MaFGRis
shown to be unfairly disproportiof1atebecause 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 5uitabl.e methods. The determination of the superintendent is final.
Properties that have separate Water meters for domestic and sprinklina. purposes shall not have a dailv
averaae of usage set (Amended Ord. #99-828)
Section 4. The effective date ofthisordinance shall bathe 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 Obennaler, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorney Signature Date
.
Cityoj%Pkins , Pu6{ic Wor~
11100 p-i(cefsiof'13Cvti. -!l-fopl(insJ M9{,55343-3435 - pFione: 952-939-1382- !FQ;(i 952-939-1381
. 'We6 atltfress: W'UJW.liopR..insmn.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 I residential meter conversion was
comPleted eanier this year.
. Improve commercial water metering accuracy and ensure proper biliing
CJ Ensure accurate measurement of both low and high flows through larger water meters
CJ Ensures that the higher-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 transponderonJy (1 %"disc 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~i1 at mlauseng@hookinsmn.com. Or, you may also call
or emaH me at 95~-548-63501 sstadler@hookinsmn.com.
"s~ "
Steven J. Stadler '
Public Works Director
.
Partnering witli tfie Community to 'Enfi.tuu.e tfie Qg.a{i.ty of Life
+ Inspire + 'EtCucate + Invo(ve + Communit.ate +
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