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6.1. ERMUSR 12-14-2010ElkRiver --- Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 5 5 3 30-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.8099 TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. - Director of Operations John Dietz, Chair Jerry Gumphrey, Vice Chair Daz I Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: December 14, 2010 6.1 SUBJECT: Staff U dates -Director of O erations DISCUSSION: Staff has conducted interviews and made an offer to fill the recently open Customer Service Representative position. Staff is in the process of replenishing the vacant Maintenance Person position. Due to the recent employee retirement incentive program that Great River Energy (GRE) has offered in conjunction with their budget cuts, GRE has given notice of termination of their After Hours Call Answering and Dispatch Service. Staff is currently exploring other options. With the recent wind and snow storms, this region has experienced many electrical outages. All around ERMU service territory, our neighboring utilities were challenged to restore services quickly. Because ERMU experienced minimal electrical service outages due to these storms, ERMU provided mutual aid by supplying equipment to Princeton Public Utilities and dispatching crews to Connexus Energy. It makes me proud that our staff is called upon again and again during situations like this. Attached is a letter from Connexus Energy thanking ERMU for our help. This month, GRE provided tours of their Elk River Energy Recovery Station, Elk River Peaking Station, and their newly acquired Resource Processing Plant. City and Utilities department heads met to begin work on developing the action steps for our Vision and Goals. Updates will be provided for the Commission in the future as the process continues. Attached for your review are the results from the 2010 Utility Rate Survey. This survey compares our water rates to other Minnesota utilities. CO~N/.~(NNEXUS° ~LJ \V I Your Community Energy Partner December 3, 2010 Troy Adams Elk River Municipal Utilities 13069 Orono Parkway PO Box 430 Elk River, MN 55330-0430 Deaz Troy: 14601 Ramsey Boulevard Ramsey, Minnesota 55303 763.323.2600 Fax: 763.323.2603 1.800.642.1672 www.connexusenergyeom into~connexusenergy. com A note of appreciation for the assistance your employees provided while restoring power to the homes of our members following the November 13 storm. Your lineworkers stepped up to the challenge and helped us deal with a tough situation. The heavy, wet snow caused widespread damage throughout Connexus' service area. The damage was caused mainly by fallen trees and tree branches on our lines. Approximately 15,000 of our members were left without power. Thanks to everyone's efforts, power was restored to all our members within three days. Once again, all of us at Connexus Energy appreciate your help with getting things back to normal for our members so quickly. Sincerely, /~~ Mike Rajala PresidenUChief Executive Officer `, i e~ ^~'.: NORTH CENTRAL UTILITY RATE SURVEY Q W ~1E~~S The Financial Link ~~ ~,~ ° , ~. t ^ _,~ ~ ~i~~~ ,_ ~ ~.`_ t ~, . ~ } .~ /~ Aye '. ~~,~ y ~ a Y y. ~.A..r _• 1: "w ~.3 t.. ". .. .T White Bear Lake, MN +r Fridley, MN Eagan, MN Plymouth, MN WATER SYSTEMS BY METRO/STATE The graphs depict typical monthly residential water utility bills for those municipalities who responded to the survey separated by Minneapolis/St. Paul Metro Area and State. The bills are based on 7,500 gallons per month. Oakdale, MN Minnetonka, MN Rosemount, MN Brooklyn Park, MN Mounds View, MN Hopkins, MN Chaska, MN ~, Eden Prairie, MN V St. Louis Park, MN Edina, MN Ramsey, MN St. Paul Park, MN Richfield, MN Bloomington, MN* Spring Lake Park, MN Mahtomedi, MN Falcon Heights, MN* West Saint Paul, MN* Waconia, MN Arden Hills, MN* Minneapolis, MN Golden Valley, MN* Mound, MN MINNEAPOLIS/ST. PAUL METRO AREA $9.73 ^ $11.91 _ _ - ^ Water Fixed Charge ® $12.50 ®$12.91 I~ ® Water Volume Charge Based on 7,500 Gallons' ~ ---_ ® 813.38 ~ $13.66 surface Water Ground Water ~~ Bviih Sttrfsre ~s1~ I ~ $13.85 Grousty W"titer i ~ $14.01 ® $14.26 ~ $14.78 ~ $14.78 1 ~ $15.21 ~ $15.57 e $15.62 ~ $16.20 ® $17.50 ® $19.21 ® $19.81 i ® $27.32 ® $21.95 ® $22.fi2 ® 32283 ® $23.06 ® $25.89 $31.12 $32.49 ~ $32.fi5 P 0 5 10 15 20 25 30 35 40 45 50 55 Typical Monthly Residential Water Utility Bill ($) (*All or Partial Purchase) Copyright ©POIO AE2S ~ All Rights Reserved - _ - 1010 North Centrol Otility Rote Survey ~ Poge 7 [~' ~ _,~ r,j ~ ~ , Y "* ~.+ .~ .~. 4 t p~ qJ~ 7. -`'`' - x . ~~` Rogers, MN Monticello, MN Rochester, MN Lake City, MN Willmar, MN '''"' Albert Lea, MN Detroit Lakes, MN Elk River, MN Big Lake, MN Bartell, MN Cloquet, MN Buffalo, MN Austin, MN St. Joseph, MN Brainerd, MN Fergus Falls, MN Litchfield, MN Worthington, MN Marshall, MN U St. Michael, MN Bemidji, MN St. Cloud, MN Little Falls, MN Chisholm, MN Grand Rapids, MN Alexandria, MN Crookston, MN Baxter, MN Hibbing, MN Thief River Falls, MN Oak Grove, MN* Moorhead, MN Hutchinson, MN New Ulm, MN St. Francis, MN Fairmont, MN East Grand Forks, MN Copyright©1010 AE2S-All Nights Reserved WATER SYSTEMS BY METRO~STAT (Excluding IVlinneapoiis/St. Paul IVletro) $11.97 '~ Water Fixed Charge $93.36 i ® Water Volume Charge $15.93 Based on 7,500 Gallons) $16.23 -- $tA.88 Surface Water $18.03 ~ GornNrre~ U5`atuc $18.75 Bof6T S~rFaee aa~~;~ $19.41 ' ^~-,,.;~ae,~~ ~Iv!ate,.. $14.54 1 $20.30 $21.38 $21.41 $23.70 $23.91 529,&3 $26.73 $27.00 $27.51 $27.94 $29.48 $29.62 $30.13 $30.13 $30.17 $30.60 $31.23 $33.31 $34.64 $37.41 $37.53 $3'2.67 $37.98 $38.75 $41.66 $43.65 0 5 10 15 20 25 30 35 40 45 50 55 Typical Monthly Residentrial Water BIII ($) *All or Partial Purchase 1010 North Cemml WiGry Rote Survey Page 8 ,. "fr . ~. `' ,~ 7 ~- ^~ ^ ~;,~,` GENERAL MtNN~SQYA N~ON!~I'~~TRO STATISTICS ~. W J Q W J~ 2~ W W 3 3 a '" c i Q _'' Q a, 3 3 U W Q j S W W Lr W W H N O Fa- ~ ~ way pQN 3 3 r~n ~ CITY POP. rq C7 f 3 rn z 3 y • t r .. Albert Lea, MN 18,356 ^ ^ $n.ea $3a.6s $o.oo $sz 74 Alexandria, MN 12,415 ^ ^ $3oso $le oo $3 00 . $s1 6o Austin, MN 23,500 ^ ^ az1.a1 $25.e1 . $zso . $as 71 Baxter, MN ~ 6,600 ^ Outsourcetl $3331 $39.54 $2.10 . $74 95 Bemid i, MN 13,500 ^ ^ $zs as $az.so $6.26 . $78 64 Bi Lake, MN 9 174 ^ . Brainerd, MN , 13 600 ^ ^ $lsat $37.25 $3.25 $59.91 Buffalo, MN , 14 154 ^ ^ $23.91 $42.63 $300 $fi9.53 Chisholm MN , 4 960 ^ $21.38 $43.80 $5.00 $70.18 , , ^ ^ $30.13 $so.es $o.oo $sosfi CIO uet, MN 11 500 ^ Outso tl , urce $20.30 $34.98 $0.00 $55.28 Crookston, MN $,192 ^ ^ $31.23 $13.75 $0.00 $44.98 Detroit Lakes, MN 141 8 ^ ^ East Grand Forks MN , 7 893 ^ $1s.o3 $3a.o7 $2.51 $sa.6t , , ^ $a3s1 $ze.1s $0.00 $7z.o9 Elk River, MN 23,000 ^ ^ s1a ~s $za.73 $o.oo $a7.ae Fairmont, MN 10,889 ^ ^ $a3ss $ao.3s $3ss $67s7 Fer us Falls, MN 13,950 ^ ^ ^ $2a.a3 $37.15 $aso $ssae Grand Ra ids, MN 8,233 ^ ^ $3o.n $zs.oe $5.35 $63.50 Hibbin , MN 17,000 ^ ^ $34.64 $36.78 $3.20 $7461 Hutchinson, MN 14,500 ^ ^ $37.98 $51.93 $2.65 $92-55 Lake Cit , MN 5,339 ^ ^ $15.93 $47 di $2.00 $fi5.35 Litchfield, MN 6,869 ^ ^ $zs.73 $37.50 $a.oo $sa.z3 Little Falls, MN $,427 ^ ^ $30.13 $37.30 $1.03 $fi8 46 Marshall, MN 13,031 ^ ^ $z7s1 $38.37 $3ss . $ss.aa Monticello, MN 11,366 ^ ^ $11.97 $1s.1s $c.0o $2212 Moorhead, MN 36,226 ^ ^ ^ $3zs7 S27.zs $s.z1 $74 1a New Ulm, MN 13,700 ^ ^ $38.75 $35.55 $0.00 . $74 30 Oak Grove, MN 8,504 ^ ^ $37.53 szos7 $o.oo . $se.zo Rochester, MN 100,800 ^ ^ $1z.2o $3c.4s $s.so $48 18 RO ers, MN 7,300 ^ ^ $10.58 $20.01 $3.35 . $33.94 Bartell, MN 14,512 ^ Outsourcetl $15.59 $29.59 $9.00 $58 17 St. Cloud, MN 66,855 ^ ^ $2s.6z $zc.7z $2.io . $52.43 St. Francis, MN 7,404 ^ ^ $a1 ss $a3so $o.oo $85 16 St. Jose h, MN 6,156 ^ Outsourcetl $23.70 $23.75 $3.75 . $51 20 St. Michael, MN 15,000 ^ ^ $zzsa $1s.ze $z.oo . $as zz Thief River Falls, MN 8 560 ^ . Willmar, MN , 19 850 ^ ^ $3241 $s.7s $0.00 $azls Worthin ton, MN , 11 796 ^ ^ $1s.z3 $z1.7a $o.oo $3297 , ^ $z7.o0 $3zas $a.za $sa s9 --- Copyright©1010 AE1S-All Rights Reserved - -- _ - -- ----~---' P010 North (eniml Utility Rate Survey ~ Poge 47 ~ , l.- 3ryc. `. r r ,~s~rr L .t c ~~rF ^ ^ 22% ~Copyrighf©2N10 AF2S-All Rights Reseried NQN~~,ETR~~ ~~~~ ~~A, l~`I`C PERCENTAGE OF NQN-METRO SURVEY PARTICIPANTS ANTICIPATING A WATER RATE INCREASE IN 201 i Increase Anticipated ^ No Increase Anticipated ~ Not Reported I% 2011 PERCENTAGE WATER RATE INCREASES ANTICIPATED BY NON-METRO SURVEY PARTICIPANTS 2% 41% ^ Rate increase of 1 % to 2% Rate increase of 4% to 6% ^ Rate increase over 8% ~+ Rate increase of 2% to 4% Rate increase of 6% to 8% ®Rate increase not known 2010 North Central Ilrility Rate Survey ~ Page 44 t i c r PERCENTAGE f3F= NC3N-METRGF SURV'EY' P/NRTICGPANTS TNa.T IA!("CCA CCn Tu ern nu r r~~.r .,.......» ...... _.. ...... __. 9% 3% ~* ~~ 1` f ~' ~r ~~ ,ry C` Ll ~ ~7 cz Constant Block NON-METRO WATER RATE ST~4Tf~STI~~ WATER SYSTEM RATE STRUCTURES USED BY NON-METRO SURVEY PARTICIPANTS Inclining Block ~ 29% Declining Block 73% Not Reported ~ 1% 0% 70% 20% -_-~---~-_-~ 56Y° -~ I 90% 700% Efforts to promote conservation have been taken by many systems in the region in recent years, one of which is the use of an inclining block rate structure. [n 2010, approximately 30 percent ofnon- metro survey respondents reported the use of an inclining block tiered structure. The variability in the differential between the first and second tier and the first and third tierrs shown below. The charts show that the difference between the first and second tier for the utilities responding to the survey ranges from three percent to 233 percent. Similarly, the differential between the second and third tiers ranged from eight percent to 300 percent. PRICE DIFFERENTIAL BETWEEN FIRST AND SECOND VOLUMETRIC WATER RATE TIERS FOR NON-METRO RATE SURVEY PARTICIPANTS 20% ^ 1.0-1.05 ®1.06-1.1 11.11-1.2 1.21-1.3 ^>1.3 PRICE DIFFERENTIAL BETWEEN FIRST AND THIRD VOLUMETRIC WATER RATE TIERS FOR NON-METRO RATE SURVEY PARTICIPANTS 6% 27% ~lapyright©Y010 AF2S-All Rlghls Reserved ^ 1.0-1.2 ® 1.21-1.3 1.31-1.5 ~>1.5 1010 North Central Otili~y Rate Survey Poge 45 ~. ~- n w z t9 _--_-----__----- 40% r . ~_. ~~t ~ , e ~ ~ ~~~ ,r ~ ~- ~ .~F t r r r ^ ~inp'P Ni1in2010 AE2S All Rights Reserve) 23% A,VERAf.~E MONTHLY WATER USE BY NON-METRO SURVEY PAR.TICIP'A.NTS ~~~% ~s~~o ^ 0-4,000 gallons r 4,001-5,000 gallons ~ 5,001-6,000 gallons 6,001-7,000 gallons r 7,001-8,000 gallons r >g,000 gallons NaN-METRO WATER 5Y5~E1~ ST`aTCST[~S NON-METRO SURVEY PARTICIPANTS REPORTING A GHA,NGE IN PER CAPITA. WATER W'SE 1n~i ~V7o Increased ^ Decreased 2010 Norrh (emml Utility Rote Survey ~ Pa a 47 "` x Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.5099 TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski -Finance Director/Office John Dietz, Chair Manager Jerry Gumphrey, Vice Chair Da I Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: December 14, 2010 6.1 SUBJECT: Staff U dates -Finance Director/Office Mana er DISCUSSION: The change has been made for the fully absorbed fee on the credit cards, effective 12/1/2010 and people are taking advantage of it. The first day we had 33 transactions, and through the first week of December we had 122 transactions. In June, the first month we started offering credit cards with a fee, we had a total of 124 transactions and the majority were shut-off payments. Customers have already inquired about the possibility of ERMU debiting their credit card instead of their checking account through our ACH payment system. We cannot do this at this time, however, as we implement account information availability through our website this will be a possibility (but the customer must set it up that way through the website.) The latter part of the first quarter would be the timeline for possible implementation of any account information on the website. As Troy mentioned, we are researching different alternatives for our after-hours/dispatch service. After a preliminary look, I would be very surprised if we found anything even close to the $425 per month cost for GRE. It seems it will be at least 3-5 times that. However, I believe this could be an opportunity for us to offer extended hours customer service hours through other companies that provide this same service. We will continue to keep you updated on our research and options. Elk River Municipal Utilities Memorandum To: Elk River Utilities Commission Jdm Dietz .TerryC,~nnpbny DazylThompecx~ From: David Berg Date: 12/14/10 Subject: Gary Street Tower -Antenna Rental All of the three water towers that aze being leased for Sprint's antennas aze now completed with construction. Gazy Street Tower is the first to be utilized and is currently in operation and the first annual lease payment for Gary Street was received once they were ON-AIR. All towers aze completed with their construction. The operation of the other two towers (Johnson & Auburn) will likely be completed by the end of the month, as they are waiting for phone circuits through Qwest to be delivered. They anticipate being ON-AIR by the start of 2011. Elk River ~. Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission David Berg -Water Superintendent John Dietz, Chair Jerry Gumphrey, Vice Chair Da 1 Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: December 14. 2010 SUBJECT: Too a hic Surve -Well 9 Reconstruction -Bids DISCUSSION: We sent out for two bids on the surveying/mapping of the future Well 9 reconstruction. The Oliver Surveying & Engineering bid came to be $4,200.00 and Elfeting & Associates came in at $3,900.00. The staff is recommending that the utility goes with the bid from Elfeting & Associates. Elk River Municipal U Memorandum To: Elk River Utilities Commission Jokn Ilidz Jeny (~miplney I}arylThompson From: David Berg Date: 12/14/10 Subject: Well Drilling Statement-Craig Johnson, League of MN Cities (LMNC) Craig Johnson of LMNC published the changes to the well drilling code in the Cities Bulletin. Attached is the text regarding the recent updates for private well drilling. Cities have the ability to restrict or prohibit the drilling of wells in city boundaries through a specific ordinance or the city zoning code. (Published Oct 13, 2010) After several months of communication and discussion with the League and other parties about the legal basis for city authority, the Minnesota Department of Health (MDH) has agreed that no more letters will go out from the department challenging city authority to regulate wells by ordinance or through city zoning code. This is a dramatic change from previous practice. Over the past 20 yeazs, cities, well drillers, and MDH have often disagreed about city statutory authority to prohibit or restrict well drilling by ordinance. The League has long azgued that cities have specific and long-standing statutory authority to regulate wells and water supplies in city boundazies. (Minnesota Statutes, section 412.221, subdivision 11~ (Link to 'it[ps;.C>i, : ~ ,devisucmn str>n-sra~ur~~s''ed =T',2.'~icstutTi72.Zz1.71) Cities may also regulate where wells aze located in a city, if at all, through zoning as established in both statute and case law. (Minnesota Statutes, section 465.357, subd1Vi910n 1~ (Link to: hops: ~i~~ nam.Yewt.ro+ rnn },~orLsunrrtes ~ `rcl -4h ^.35'~str~t.462. 35?, i) However, MDH is given specific powers over technical aspects of constructing wells, the licensing of well drillers, and sealing wells. This issue became more controversial over the past yeaz as cities began receiving letters from the state demanding that they cease enforcement of ordinances restricting well drilling. Many property owners within city boundaries have wanted to drill their own irrigation wells within municipal water utility service areas to avoid paying city utility rates, especially once water conservation rate structures and summer water use requirements were applied, as required by the state Legislature. This recognition of city authority by MDH means that cities may continue to adopt and enforce ordinances restricting or prohibiting well drilling within their jurisdiction. Cities do not, however, have the authority to regulate the construction, maintenance, or sealing of wells. There aze also wells used for monitoring, dewatering for pollution cleanup and other purposes that likely will still be allowed in appropriate circumstances. The League will work with MDH to provide guidance to cities on how best to craft ordinances related to wells. Read the current issue of the Cities Bulletin (Lmkro: aan ti~ s~14.;,n~: ,~ ,;„-i .r,a,r_ buUt2(trt-nee~slc+tr~r j~~p) Contact Craig Johnson IGR Representative (651) 281-1259 or (800) 925-] 122 Cjohnson@1mC.org (Link ta: ~r z~" ~-;: ~joh1 s n ~irrrcorgJ Reprinted from League ojMinnesota Cities, Cities Bull Elk River~;~ , Municipal Utilitie s UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Mazk Fuchs John Dietz, Chair Line Superintendent Jerry Gumphrey, Vice Chair D I Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: December 14, 2010 6.1 SUBJECT: Staff U dates Discussion: • We had some outages from the snow storm on November 13s'. Most of ours were on single phase overhead lines, when the snow and ice fell off the lines it caused them to hit each other and blowing the tap fuse. We had three ~eople help Connexus on November 13~' and four people help on November 14` and 15~'. • We had a primary fault at 337 Baldwin Ave. Connexus came out to locate the fault, we fixed it but the cable is old and we will have to replace it in the spring after the frost goes out. • Installed two single phase underground taps. One on Cleveland Ave to an existing house that had been disconnected for the housing development and one on Viking Blvd for a new house. • Installed the three Sprint services to the water towers. • Had two new electric services. • Directional bored under the railroad tracks at Meadowvale Road and 192na Ave to install pipe and wire. This is part of a project to change feeder 23 from 2400 volts to 7200 volts. • Working on getting a three phase primary loop in at Cretex. Cretex is doing an upgrade and we will remove two overhead transformer banks and install one pad mount transformer. • Continue working on Area 22 rebuild. • Continue working on Engers addition rebuild. • Continue working on 5`h street rebuild. Elk River.; Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Wade Lovelette -Superintendent of Technical John Dietz, Chair Services Jeny Gumphrey, Vice Chair D 1 Thom son, Trustee MEETING DATE: AGENDA ITEM NUMBER: December 14, 2010 6.1 SUBJECT: Staff U dates - Su erintendent of Technical Services DISCUSSION: The following is a summary of projects and/or updates over the past several weeks: This month the locating department had a total of one hundred fifty-eight locate tickets. Four of those were "emergency" locates. The Metering department continues with weekly and monthly substation checks, and doing the monthly power bill. The meter change-out program is still continuing as time permits. Some staff are continuing to attend the weekly meetings for the Home Energy Audit program. They are also doing a lot of the home energy audits. The Security Systems department had a total of fifty-two phone contacts, ten personal visits, ten systems quoted, five sales made, four installs completed and twenty-six service calls for the month of November. Power plant staff continues to keep up with the maintenance of the generators. Steve is putting the new parts into engine #2, so that engine will be up and running for the December monthly run. I attended the annual Technical and Operations conference in St. Cloud. They had a presentation on: "The Wadena Tornadoes" "Leading in Lean Times" "Energized Approach for Creating a Safe, Healthy Workplace" "What You Should Do Before Fema Arrives". It was a very good conference.