6.1. ERMUSR 02-14-2012Elk River ---~
Municipal Urilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
Phone: 763.441.2020
Fax: 763.441.8099
www. elkrivemtili ties. com
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. -Utilities Director
John Dietz -Chair
Daryl Thompson -Vice Chair
AI Nadeau -Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Febru 14,2012 6.1
SUBJECT:
Staff U dates -Utilities Director
DISCUSSION:
In late 2011, the Commission asked staff to reseazch restrictions and regulations for signage on
the Power Plant. The only restriction would be size. The signage would be limited to 96 square
feet. Staff has talked with two different local sign companies. An update will be provided at the
time of the Commission meeting.
On January 31 s`, I attended the Environmental, Energy, and Natural Resources Committee
meeting to sit in on the initial hearing of HF 1923. The sister bill in the senate is SF 1560. These
bills propose to eliminate the 2008 water conservation law that required ERMU to invoke our
water conservation rates. Because ERMU has already implemented our water conservation rates,
it would be difficult to eliminate them without having a shift in revenue source. That is because
when ERMU implemented this rate structure it was done revenue neutral. To eliminate the third
tier in our rates would result in revenue erosion and would necessitate a shift to recover that
revenue from the rest of the water customers. So, those on the extreme end of water use
Typically for sprinkling would get a rate reduction and the typical residential customer would see
a rate increase. Currently there are about half the Minnesota cities that have implemented the
required rate structure and the remaining cities are required to implement a conservation rate
structure by 2013. Because of this split, this is a politically difficult issue to resolve. At this
time, the League of Minnesota Cities will be organizing a conference call and/or meeting during
the week of February 6`h with both cities that have implemented a conservation rate structure and
those who haven't. Although this is a sepazate issue, this is closely connected to the private well
drilling legislation HF135/SF64 proposed last year. An update will be provided at the
Commission meeting.
Staff, along with two Commissioners, attended the Minnesota Municipal Utilities Association
2011 Legislative Conference in February. On Thursday, February 8~', the conference travels to
the Capitol to meet with our legislative leadership and discuss public utility issues from main
street Minnesota. An update will be provided at the Commission meeting.
PBYYwwE'R~`EB Bl'
POWERED T O S E 0.V E
Over the pasted month, staff has been working with a customer in Otsego to resolve an easement
issue. The underground feeders that were installed in the transmission easement are in question
due to their location outside of road right of way. After consulting with ERMU legal counsel,
Great River Energy, and Wright County, ERMU staff has been working with the customer to
resolve the issue.
Staff continues to work with the City and County on a potential Data Center locating in Elk
River.
The City of Elk River's commission and board duty/responsibility sheets are in the process of
being updated. I've worked with the City and provided comments for consideration in updating
the Public Utilities Commission Duty/Responsibility sheet.
The Elk River City Council is hosting their Annual Board and Commission Appreciation Dinner
on February 23rd at Rockwoods Banquet and Conference Center in Otsego, MN. The Utilities
Commission is invited. The event's social time starts at 6:OOpm with dinner at 6:30pm.
01/10/12 REVISOR CKM/RT 12-4344
Tltis Do<umeat can be made available
in altematlve formab upon request State of Minnesota
HOUSE OF REPRESENTATIVES 1923
EIGHTY-SEVENTH SESSION H~ F~ NL'le
OIY24/2012 Authored by O'Driscoll, McDonald, Banaian and Gottwall
The bill was read far the firs[ fime end referred to the Comminee on Environment, Energy and Nanual Resources Policy and Finance
1.1 A bill for an act
1 z relating to waters; eliminating conservation rate structure requirement; amending
l.3 Minnesota Statutes 2010, section 103G.291, subdivision 3; repealing Minnesota
l.a Statutes 2010, section ]03G.291, subdivision 4.
Ls BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA
1.6 Section 1. Minnesota Statutes 2010, section 103G.291, subdivision 3, is amended to
l ~ read:
I.s Subd. 3. Water supply plans; demand reduction. (a) Every public water supplier
t.9 serving more than 1,000 people must submit a water supply plan to the commissioner
l to for approval by January 1, 1996. In accordance with guidelines developed by the
1.11 commissioner, the plan must address projected demands, adequacy of the water supply
I.12 system and planned improvements, existing and future water sources, natural resource
t.13 impacts or limitations, emergency preparedness, water conservation, supply and demand
l la reduction measures, and allocation priorities that are consistent with section 103G.261.
1.15 Public water suppliers must update their plan and, upon notification, submit it to [he
1.16 commissioner for approval every ten years.
1.17 (b) The water supply plan in paragraph (a) is required for all communities in the
t.ls metropolitan area, as defined in section 473.121, with a municipal water supply system
1.19 and is a required element of the local comprehensive plan required under section 473.859.
1.2o Water supply plans or updates submitted after December 31, 2008, must be consistent
t.2t with the metropolitan area master water supply plan required under section 473.1565,
1.22 subdivision 1, paragraph (a), clause (2).
l z3 (c) Public water suppliers serving more than 1,000 people must employ water
1.2a use demand reduction measures, ' ,
Section I. I
Ol/10/l2
REVISOR CKM/12T 12A344
z.t ,before
2.2 requesting approval from the commissioner of health under section 144.383, paragraph
z.s (a), to construct a public water supply well or requesting an increase in the authorized
z.a volume of appropriation.
25
26
2.~ (d) Public water suppliers serving more than 1,000 people must submit records
z.s that indicate the number of connections and amount of use by customer category and
z.9 volume of water unaccounted for with the annual report of water use required under
2.to section ]03G.281, subdivision 3.
z. t t (e) For the purposes of this section, "public water supplier" means an entity
2.IZ that owns, manages, or operates a public water supply, as defined in section 144.382,
z.ts subdivision 4.
z.t4 Sec. 2. REPEALER.
2.ts Minnesota Statutes 2010 section 103G.291, subdivision 4, is resealed.
Sec. 2. 2
APPENDIX
Repealed Minnesota Statutes: 12-4344
103G.291 PUBLIC WATER SUPPLY PLANS; APPROPRIATION DURING
DEFICIENCY.
Subd. 4. Conservation rate structure required. (a) For [he purposes of this section,
"conservation rate structure" means a rate structure that encourages conservation and may
include increasing block rates, seasonal rates, time of use rates, individualized goal rates, or
excess use rates. The rate structure must consider each residential unit as an individual user in
multiple-family dwellings.
(b) To encourage conservation, a public water supplier serving more than 1,000 people
in the metropolitan area, as defined in section 473.121, subdivision 2, shall use a conservation
rate structure by January I, 2010. All remaining public water suppliers serving more than 1,000
people shall use a conservation rate structure by January 1, 2013.
(c) A public water supplier without the proper measuring equipment to [rack the amount of
water used by its users, as of July 1, 2008, is exempt from this subdivision and the conservation
rate structure requirement under subdivision 3, paragraph (c).
1R
S.F. No. 1560, as introduced - 87th Legislative Session (2011-2012) [12-4344]
SENATE
STATE OF MINNESOTA
EIGHTY-SEVENTH LEGISLATURE S.F. NO. 1560
(SENATE AUTHORS: PEDERSON ead Fischbach)
DATE 0.PG OFFICGL STATUS
01/26/2012 3645 Introduction and 5rst reading
Referted ro Environment and Natural Resources
t.t A bill for an act
t.z relating to waters; elhninating conservation rate structure requirement; amending
t 3 Minnesota Statutes 2010, section 103G.291, subdivision 3; repealing Minnesota
t.a Statutes 2010, section 103G.291, subdivision 4.
is BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
t.b Section 1. Minnesota Statutes 2010, section 103G.291, subdivision 3, is amended to
t.~ read
t.s Subd. 3. Water supply plans; demand reduction. (a) Every public water supplier
t.v serving more than 1,000 people must submit a water supply plan to the commissioner
uo for approval by January I, 1996. In accordance with guidelines developed by the
t. t t commissioner, the plan must address projected demands, adequacy of the water supply
t.t2 system and planned improvements, existing and future water sources, natural resource
t.ts impacts or limitations, emergency preparedness, water conservation, supply and demand
t.ta reduction measures, and allocation priorities that are consistent with section 103G.261.
t.ts Public water suppliers must update their plan and, upon notification, submit it to the
t.t6 commissioner for approval every ten years.
t.t7 (b) The water supply plan in paragraph (a) is required for all communities in [he
t.ts metropolitan area, as defined in section 473.121, with a municipal water supply system
t. t9 and is a required element of the local comprehensive plan required under section 473.859.
t.zo Water supply plans or updates submitted after December 31, 2008, must be consistent
t.2t with the metropolitan area master water supply plan required under section 473.1565,
t.22 subdivision 1, paragraph (a), clause (2).
t.23 (c) Public water suppliers serving more than 1,000 people must employ water
t.2a use demand reduction measure , ' ,
Section 1.
S.F. No. 1560, as introduced - 87th Legislative Session (2011-2012) [12-4344]
z.t ,before
2.z requesting approval from the commissioner of health under section 144.383, paragraph
z.s (a), to construct a public water supply well or requesting an increase in the authorized
2 a volume of appropriation.
2.s
2.6
z.~ (d) Public water suppliers serving more than 1,000 people must submit records
z.s that indicate the number of connections and amount of use by customer category and
z.v volume of water unaccounted for with the annual report of water use required under
z.to section 103G.281, subdivision 3.
z.tt (e) For the purposes of this section, "public water supplier" means an entity
z.tz that owns, manages, or operates a public water supply, as defined in section 144.382,
z is subdivision 4.
z.ta Sec. 2. REPEALER.
z.ts Minnesota Statutes 2010, section 103G.291, subdivision 4, is repealed.
Sec. 2. 2
APPENDIX
Repeated Minnesota Statutes: 12-4344
103G.291 PUBLIC WATER SUPPLY PLANS; APPROPRLITION DURING
DEFICIENCY.
Subd. 4. Couservatioo rate structure required. (a) For the purposes of this section,
"conservation rate structure" means a rate structure that encourages conservation and may
include increasing block rates, seasonal rates, time of use rates, individualized goal rates, or
excess use rates. The rate structure must consider each residential unit as an individual user in
multiple-family dwellings.
(b) To encourage conservation, a public water supplier serving more than 1,000 people
in the metropolitan area, as defined in section 473.121, subdivision 2, shall use a conservation
rate structure by January 1, 2010. All remaining public water suppliers serving more than 1,000
people shall use a conservation rate structure by January 1, 2013.
(c) A public water supplier without the proper measuring equipment to track the amount of
water used by its users, as of July 1, 2008, is exempt from this subdivision and the conservation
rate structure requirement under subdivision 3, paragraph (c).
1R
Elk River
Municipal U
ties
UTILITIES COMNIISSION MEETING
pONEREO {1
~~~~~~
P O W E R E D T O S E0.`/E
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski -Finance and Office
John Dietz -Chair Manager
Dazyl Thompson -Vice Chair
Al Nadeau -Trustee
MEETING DATE: AGENDA ITEM NUMBER:
Februar 14, 2012 6.1
SUBJECT:
Staff U dates -Finance and Office Mana er
DISCUSSION:
We had 1092 credit cazd payment transactions in Januazy, compared to 970 in December. The
fee for January should be $2,457.
The new interface that will allow customers to obtain their account balance information, view
bills, and make and schedule payments online, will be ready to go February l0a'. It was
supposed to have been ready in January, however, a programming privacy feature required more
time. The statement backers have been updated to reflect this change and our website has the
"button" ready to go, but currently states it is coming soon. Staff will be trained this week and it
will be introduced to customers with Februazy's billing.
As a follow-up to last month's meeting, I wanted to review the process for collections and write-
offs. Every month, after the payments for the 15th due date have been posted, a program is run
that automatically assesses penalties to all accounts without a payment posted. (Note: some
accounts are flagged as penalty exempt -due to special circumstances for one time only or an
account that has a special payment arrangement on file, etc. -and so these accounts would not
receive a penalty.) Once penalties have been assessed, Reminder Notices aze sent out to
everyone that was assessed a penalty. We typically send out between 1,500 and 1,800 Reminder
Notices every month. Customers usually receive these notices around the 18~h of the month,
and the notice states payment is due by the end of the month to avoid shut-off. The bills for the
next cycle are then started to be processed and are sent around the 25a' of [he month.
Shut-offs are processed the first week of the month and a "red tag" is hung for those subject to
disconnection. Those subject to disconnection would be those customers not having made a
payment for two or more months in a row. During the summer, these customers are shut-off and
the majority quickly get caught up unless there are extreme circumstances. During the cold
weather rule winter months, a payment arrangement is entered into and they have to break the
payment arrangement, and not enter into another payment arrangement, in order for shut-off to
occur (however the red tag notice is still hung.) Very few shut-offs occur in the winter, but they
do happen. Some customers make very small payments and continuously break and make new
payment arrangements during the winter months. This puts them at a disadvantage and they end
up getting behind and can accumulate a lazge balance come April 15`s when the cold weather
rule protection ends. The above structure doesn't take into account the personal phone calls that
aze made to customers throughout the process when a problem has been identified. Due to
volume, we can't physically contact all by phone, but these phone contacts are still made as best
we aze capable.
Every quarter we process the write-off/assessment/collections. These aze the customers that
have not paid, and have been turned off. ' In most cases, the customers have left town and left the
balance behind as well. Once they have moved out, our only recourse is good forwarding
address and contact information, which is usually hazd to come by for those not wanting to
provide it. The size of the write-off varies greatly depending on the customer's usage bill. If a
monthly bill is $50, the write-off could be a minimum of $100 - $150. If the monthly bill is
$300, the write-off could be a minimum of $600 - $900. These minimums aze not taking into
account the winter month's potential accumulations, which obviously makes these balances only
higher.
The collection process is very routine and structured, aimed at contacting the customers quickly
and consistently to collect payment. We realize that communication is key and aze continuously
improving the collections cycle. The more contact we have eazly with the customer, the more
likely they are to pay. Our Collections Specialist is a member of the local Chambers as way to
introduce and become familiaz with the commercial customers so a contact can be established
eazly on. This year we will be implementing an automated calling process with the purchase of
some additional equipment which will provide another contact point with our customers.
Looking for, and introducing, additional collection venues is also helpful. We aze very excited
about seeing the payment return from the Revenue Recapture program with the State of MN we
implemented last year.
The collection process is as successful as it is due to the hazd work of our Collections Specialist,
Michelle Martindale. She couldn't do it without the support of yourselves and the staff of
ERMU, yet the majority of the responsibility and implementation of the process is borne by her,
and she should be commended for a job well done. If you have further questions on the process,
please let me know and we'll get them answered for you.
Elk Rive
Municipal Utilities
UTILITIES COMMISSION MEETING
rowEer:o er
~~~V~~
P O W E R E D T O S E R v E
TO: FROM:
Elk River Municipal Utilities Commission David Berg
John Dietz, Chair Water Superintendent
Daryl Thompson, Vice Chair
Al Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 14, 2012 6.1
SUBJECT:
Staff Updates
Discussion:
On February 3rd we had to repair a water main that had leak on the corner of
School Street and Proctor. Water was coming up onto the curb and there were
spots where valves needed repair. We got it fixed with no problems.
There has been an update on our Wellhead Protection Plan that increased our
protection area and moved us from a ] 0 year plan to a 20 year plan. We now
protect all the way to the landfill off of HWY 169. We protect wells by sealing
and monitoring them and checking areas with barns, fuel barrels, and etc. to make
sure there is no contamination running down into wells.
Elk River:-;
Municipal Utilities
UTILITIES COMMISSION MEETING
vowlnlu eI
~~V~~
P O`/~'ERED T O S ER`/E
TO: FROM:
Elk River Municipal Utilities Commission Mark Fuchs
John Dietz, Chair Line Superintendent
Daryl Thompson, Vice Chair
AI Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 14, 2012 6.1
SUBJECT:
Staff Updates
DISCUSSION:
• Continue working on converting Islandview Drive from 2400 volts to 7200 volts.
• Continue tree trimming.
• Had three new house services.
• Working on changing out our overhead cutouts and fuses. This consists of going through
and checking padmount transformers and padmount switch gear making sure nothing is
leaking, making sure the proper tags are in place and that the map book matches the tags,
and all the warning stickers are on the outside.
• Working on cleaning and waxing the booms on the trucks. The booms get tested annually
in March.
• 1 will be attending a Distribution Line Design Training Course. The class is put on by
Power System Engineering. Some of the course topics are overhead design, underground
design, new service design and NESC overview for each.
Elk River~~
Municipal Utilities
UTILITIES COMMISSION MEETING
e~~nggwEaEOpp®r
Ir~~VI~~
P O W E R E D T O S E R V E
TO: FROM:
Elk River Municipal Utilities Commission Wade Lovelette-Superintendent of Technical
John Dietz, Chair Services
Daryl Thompson, Vice Chair
Al Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 14, 2012 6.l
SUBJECT:
Staff U dates -Superintendent of Technical Services
• The Locating department had a total of 391ocate tickets for the month of January, 5 of
them being emergency tickets.
• Locating department has been using the infrared camera to spot check our electric
cabinets. They have found a couple of problems that we were able to correct before
something major occurred. One incident that occurred was that we had to shut down
Waco Substation to repair some connections that were heating on some disconnect
switches.
• The three new pickups have been ordered from Elk River Ford.
• In January, the Security Systems Department had a total of 79 phone contacts, 16 new
systems quoted, 10 system sales made, 11 installs completed, 26 service calls made and
16 personal visits.
• The Meter shop continues changing electric and water meters.
• Staff is doing energy audits (residential and commercial).
• The power plant staff did the monthly run of generators # 1, #2 and #4. Those engines ran
very well. Engine #3 was down for repairs of fuel injectors. They are shipping the fuel
injectors back to us on February 1 s'
1705 Main st
Elk River, MN. 55371
Waco Sub
Infrared lnspecfion Repart
Prepared For.
Electric Department
Elk River Municipal Utilities
3D-lRT"
Feeder-#31
Second from the left
Main Imaae Markers
:Name Temperature EmissN 8adc round
Center Dint 7.7°F 0.65 28.4°F
Hot 36.6°F 0.85 28.4°F
Cold ~-22.0°F 0.85 28.4°F
Imana Info
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50
Ogp 1 . ,, ..
IR000354.IS2
Back round Tem erature 28.4°F
Emissiv 0.85
Avefa a-Tem stature --20.7°F
tma Ran a ~-22.0°F to 38.8°F
Camera Model Ti25
lens Descri"lion 20mm
Imo Time 1!512012 $:47:14 AM
Galibration Ran a -7.8°F to 257.0°F
3
1/512012 8:41:14 AM
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ti
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Feeder-1132
First four from the left
L00
0
-200 - -
Main Image Markers
Name Tem stature Emissivf Back round
Center oint 8.5°F 0.65 28.4°F
Hot 98.1°F 0,65 _
~ 28.4°F
Cotd <-22.0°F D.65 28.4°F
Image Info
_ IRD00356.IS2
Back round Tem ereture __
28.4°F
J.
Emissivf _
_ 0.65
Avers a Tem nature <-22.0°F
-
Im a Ran a _
<-22.0°F to 99.1°F
Camera Model Ti25
Lens Deacd tlon 20mm
Im a Time 1/5/2012 8:42:32 AM
Calibration Ran a -7.6°F to 257.0°F
5
1/5/2012 8:42,32 AM
Summary
This report was done at Waco Sub Station. 1-5-2012
These are a few areas that need to be looked at, if not repaired they may cause
outages or interference with your system
7
Elk River
Municipal U
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
UTILITIES COMMISSION MEETING
Puw[neo er
~-v~~
Poweaeo To ~_~~-
Phone: 763.441.2020
Fax: 763.441.8099
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter -Conservation and Key
John Dietz -Chair Accounts Manager
Daryl Thompson -Vice Chair
AI Nadeau -Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 14, 2012 6.1
SUBJECT:
Staff Updates
DISCUSSION:
• Working with two commercial customers on Dispersed Generation Agreements.
• Working with ERMU field staff and two commercial customers on upgrades to their
facilities to serve expanding needs.
• Processing 3 custom energy efficiency rebates for customers installing new unique
technology in their facilities. One of the customers is installing new machinery to meet
the needs of increased sales.
• Promoting new Connector online newsletter to commercial customers.
• Monitoring well #4 temperatures to determine water temperature for a customer that
needs cool water for cooling materials in their production process.
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