6.1. ERMUSR 02-12-2013 C-
(44-b-- ___
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Daryl Thompson—Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2013 6.1
SUBJECT:
Staff Updates—General Manager
DISCUSSION:
The property owner of 1627 Main Street has agreed to the terms discussed at the January
Commission meeting. A purchase agreement has been drafted and is in the process of being
executed by both parties. The closing would be in late March.
As a result of a 2012 APPA National Convention update at the July 2012 Commission meeting,
the Commission discussed the potential for a future strategic planning session. Jack Kegel, the
Executive Director for MMUA, provided a quote of$2,500 to facilitate the planning session.
This expense has been included in the 2013 budget. The Commission directed staff to bring
back examples of other municipal utilities' strategic plans. Staff will be providing these
examples to the Commission at a future time. The June 2013 APPA National Convention will
provide an opportunity to collect a significant amount of information and examples in
preparation for a planning session. The preconference includes a seminar on strategic planning.
Commissioner Daryl Thompson has committed to attend the conference with me this year. Jack
Kegel will also be attending the conference and has informed me he will also be attending the
strategic planning seminar. He recommended that Daryl and I attend the seminar with him and
use that as an opportunity to focus and streamline the future ERMU planning. This will help to
minimize the time commitment for the strategic planning session. After this conference, staff
will provide an update to the Commission on strategic planning. Front end work for a planning
session could be handled through email. Staff would then like to schedule one or two half-day
planning session for late summer early fall.
At the February 4th City Council Meeting, I provided an update on the Utilities as part of their
2012 Annual Report Presentation to the Council. The update provided a high level overview of
2012 including: Meeting our core values and company mission by providing safe and reliable
utilities with excellent customer service; Working towards a bright future through starting the
process of electric service territory expansion, wholesale power supply planning, and advocacy
and representation of ERMU's concerns at a state and national level; And, collaboration and
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cooperation opportunities with the City of Elk River, Sherburne County, and Waste
Management. The 2012 Annual Report to the Utilities Commission is scheduled for March.
The 2013 MMUA Legislative Rally is schedule for February 13`h-15`h with a trip to the Capitol
to meet our elected official on the morning of the 14`h. The two most significant issues this year
are likely to be tax exempt financing and net metering.
At the January Commission meeting, the Commission directed staff to bring back information on
the Payment In Lieu of Taxes that ERMU makes to the City of Elk River. I've contacted
MMUA about obtaining comparable data for Minnesota. They are in the process of completing
an updated PILOT report for Minnesota municipal utilities. After the MMUA report has been
completed, staff will bring back to the Commission MMUA's report as well as one from APPA.
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Elk River
Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330
(763) 441-2020
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office
John Dietz, Chair Manager
Daryl Thompson, Vice Chair
Allan Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2013 6.1
SUBJECT:
Staff Updates
DISCUSSION:
We had 1947 credit card payment transactions in January, compared to 1837 in December. The
fee for January should be $4,380.75.
In response to last months' inquiry about write-offs I have attached a chart itemizing the
breakdown of Assessments, Collections, Revenue Recapture, and Write-Offs for each of the four
quarters of 2011 and 2012. I have also included the last page of the 4th quarter 2012 report so that
you can see how the numbers line up on the chart. An important key to understanding the reports
(and something I did not explain well previously) is that the Assessments amounts are
cumulative numbers on the reports from quarter to quarter, and are reduced as we file them with
the County (the totals decrease in the 4th quarter when we file in November). The Revenue
Recapture (RR) totals are also cumulative quarter to quarter and year to year, and are only
reduced as we are remitted amounts from the state. As we obtain better history experience with
the RR process we can determine when to post actual amounts to bad debt and have them
removed from the report, like we currently do for Collection and Write-Off amounts.
We have a total of$42,580.86 expensed as bad debt for 2012 - which is the $19,615.10 on the
chart, less any amounts collected through the collection agency, and includes a $31,000 accrual
for items submitted to Revenue Recapture. This results in a .14% of total sales. We budgeted a
total of$105,000 for bad debt, or .35%.
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Elk River .
Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River,MN 55330
(763) 441-2020
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Mark Fuchs
John Dietz, Chair Line Superintendent
Daryl Thompson, Vice Chair
Al Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2013 6.1
SUBJECT:
Staff Updates
DISCUSSION:
• Continue rebuilding the single phase overhead line on Viking Blvd.
• Continue tree trimming.
• Finished bypassing feeder reclosers for SCADA testing.
• Had six new house services.
• Finished making up the 4/0 primary loop on Business Center Drive. This wire was
installed when the fiber cable was installed.
• Continue fixing problems that the infrared camera finds. We have found bad overhead
cutouts, secondary connections on three phase transformers and bad elbow arresters.
• Changed out a three phase transformer at Cretex north mixing plant.
• Working on testing the overhead and underground protective grounds. We are also
testing the fiberglass hot sticks. Both of these are done annually.
• We are looking at options to replace 17 high pressure sodium light fixtures with LED
light fixtures on Evans Avenue by Menards. In addition to this, there were five light poles
that need to be changed out because they were too rusty to get painted.
I1'POEOEO 1I
NATURE1
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Power Provider P O W E R E D T o S E R V E
Elk River
Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330
(763) 441-2020
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Wade Lovelette—Superintendent of Technical
John Dietz, Chair Services
Daryl Thompson, Vice Chair
Allan Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2013 6.1
SUBJECT:
Staff Update
DISCUSSION:
The Locating department had a total of 66 locate tickets for the month of January; three of them
being emergency tickets, five cancelations, one meet, 48 normal, four updated tickets, one non-
excavation and one boundary survey. The locating staff is also doing energy audits.
Jeff continues using the infrared camera in the field to see if there are any hot spots on our
system that need immediate attention. He has found several items that needed to be changed or
fixed because they were heating. This saved future outages.
In January, the Security Systems Department had a total of 109 phone contacts, 18 new systems
quoted, eight system sales made, 14 installs completed, 25 service calls made and 18 personal
visits.
Meter Technicians continue with the meter reading, power bill, substation checks and off-peak
issues. They are also involved with the energy audits.
The power plant staff did the monthly run of the generators a couple of minor issues came up and
repairs were made. Steve also completed the building safety checks and engine run reports to
GRE.
The Scada project is basically completed. Everything works very well.
N, IMBED 11
NATURE
Reliable Public P O W E R E D T o S E R V E
Power Provider
Elk River .
Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330
(763) 441-2020
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission David Berg— Water Superintendent
John Dietz, Chair
Daryl Thompson, Vice Chair
Allan Nadeau, Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2013 6.1
SUBJECT:
Staff Update
DISCUSSION:
• We have bids going out for new pressure reducers. This will need to be installed in 108
homes throughout the City.
• Staff has been working on taking the filters down in each well and looking at the media
(rocks, sand, and anthracite)to make sure that it hasn't worn down far and then they
clean them. After cleaning, they charge the filter with a negative ion to hold all the media
together and put it back. This is all in preparation for the spring and summer month's
typical higher usage.
® �P ® ULILD 11
NATUR
Reliable Public
Power Provider P O W E R E D T o $ ERN E
Elk River t
Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River, MN 55330
(763) 441-2020
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter—Conservation and Key
John Dietz—Chair Accounts Manager
Daryl Thompson—Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
February 12, 2013 6.1
SUBJECT:
Staff Updates
DISCUSSION:
• Working with Key Accounts on waste water metering connections.
• Large rebates for Sherburne County Government Center and Parker Elementary School.
• Working with ERMU staff to create and mail Appliance, CFL, and LED rebate
information for special mailing to residential electric customers in February.
• Working with Waste Management on expansion of LFG plant. Evaluating new engines
for feasibility. Discussions have moved away from the solar PV cap in an effort to get
generators online sooner rather than later. WM is still concerned about guaranteed LFG
based on MNPCA enforcement of RDF laws.
• Provided Waste Management with the 2012 production bonus check for $16,720. The
landfill produced 26,176,658 kWh in 2012. The capacity factor was 98.3 % and was the
highest since 2009.
• Completed 4 Project Conserve audits.
• Working to enhance ERMU web based energy saving calculator tools for residential
customers along with a monthly newsletter. We will work with the Energy City staff to
incorporate this into their web page.
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