6.1. ERMUSR 04-09-2013 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 9, 2013 6.1
SUBJECT:
Staff Updates—General Manager
DISCUSSION:
The Utilities closed on the property at 1627 Main Street on March 25th. We entered into a
property management agreement with Acuity Group, the company that is managing ERMU's
property adjacent to this one. Acuity Group had a tenant signed for this property and moving in
by March 30th
As a direct result of our work in Washington D.C. this past March, Congresswoman Bachmann
has had a Constituent Services Officer from her Anoka office contact the Utilities to set up a
meeting for follow up on issues we'd discussed. Tom Sagstetter and I met with her staff on April
3`d and discussed our specific local concerns with the elimination of tax exempt financing on
municipal bonds as well as issues with captive rail.
I will be attending the 2013 Connexus Annual Meeting on April 23`d. And, I will be attending
the Great River Energy 2013 Annual Meeting June 12th. If any of the Commissioners are
interested in attending either of these meeting with me, please let me know as soon as possible so
I can make arrangements.
I have provided some information to the Commission in the past regarding an American Public
Power Association webinar series geared towards governing bodies. There are two of these
webinars that will be held in April: Federal Legislative and Regulatory Issues for Boards on
April 15th from 1-2:30pm, and Strategic Issues Facing Public Power Governing Bodies on April
23 from 1-2:30pm. Both of these are part of a 9 webinar series that can be taken individually,
but there is a discount if you register for the whole series.
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Elk River ^.
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski—Finance and Office Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 9, 2013 6.1
SUBJECT:
Staff Update
DISCUSSION:
We had 2,052 credit card payment transactions in March, compared to 1,988 in February. The
fee for March should be $4,617.
The audit report we now complete internally has been sent to the auditors for their review and
comments. Once they have reviewed, they will issue a final request for attorney notification of
any potential litigation and then issue their final opinion letter for us to include in the report. The
auditors will be presenting the audit at the May Commission meeting.
At the March Commission Meeting, it was requested to report a breakdown of the 2012
advertising expenses by two categories: Security and everything else. Attached is an itemized
breakdown for the various advertising expenses. The ERMU expenses, which would include
everything else besides Security, includes a variety of items from employment ads, to targeted
market advertising, business profile articles in the local newspaper, and space of a two page
spread in the quarterly City Newsletter. Also presented separately are non-advertising items,
such as the magnets we supplied last year to provide our customers with easy reference to the
outage number with the new after-hours call center, and the customer appreciation tokens we
have at the front counter.
The Security expenses include many different types of advertising such as ad boards,
phonebooks, events sponsorships, maps, resource guides and newsletters. Also included are the
various non-advertising item tokens that are distributed at local events or left with new
customers. These various venues of advertising and tokens are utilized to expand the security
business to new customers and to thank the current customers. We used to have much more
advertising in various phonebooks and directories but found it to be expensive, however not
productive, and thus have greatly reduced that area of advertising. Another advertising tool for
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security is a good referral from a satisfied customer and while we certainly have those,they
cannot be quantified in this report.
Hopefully the attached report provides the requested information adequately. If there are any
further questions or clarifications necessary, please let us know and we will provide.
PI / EIEI 11
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Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Mark Fuchs—Line Superintendent
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 9, 2013 6.1
SUBJECT:
Staff Update
DISCUSSION:
• Continue tree trimming.
• Continue fixing problems that the infrared camera finds.
• Continue working on changing out our overhead cutouts and fuses. With this we go
through checking padmount transformers and padmount switch gear making sure nothing
is leaking, the proper tags are in place, the map book matches the tags, and all the
warning stickers are on the outside.
• Had five new house services.
• The City shop is working on D.O.T. inspections on our trucks and trailers. This is done
on an annual basis.
• Finished hooking up Barton's Pit service. They upgraded their service size and moved the
location of the service.
• We posted an opening for Lead Lineperson position internally. This is to fill the position
Art Gatchell held before he retired. After Art retired we hired a Journeyman Lineperson,
so we delayed filling the Lead Lineperson position. We have also posted a job opening
for summer help. I contacted the four colleges in Minnesota that have the line workers
course so we can get someone with basic electrical knowledge and a class A driver's
license. We are going to monitor the work load this summer and see if we should put the
fifth crew back on in 2014, which would require hiring one more full time line worker.
This crew would use an existing bucket truck.
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Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Wade Lovelette—Technical Services
John Dietz—Chair Superintendent
Al Nadeau— Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 9, 2013 6.1
SUBJECT:
Staff Update
DISCUSSION:
The Locating department had a total of 71 locate tickets for the month of March; two of them
being emergency tickets, two cancellations, two meets, 59 normal, five updated tickets, two non-
excavation and one boundary survey.
Jeff continues using the infrared camera in the field to see if there are any hot spots on our
system that need immediate attention.
In March, the Security Systems Department had a total of 74 phone contacts, four systems
quoted, 11 system sales made, 11 installs completed, 28 service calls and four personal visits.
Meter Technicians continue with the meter reading, power bill, substation checks and off-peak
issues. They completed the last energy audit for this year. They continue to change out three-
phase meters to radio read meters.
The power plant staff did the megging of the generators, which is a machine that tests the ground
connections in the generators to make sure they are all still intact. This is an annual testing. Steve
also completes the building safety checks and engine run reports to GRE. Steve is helping the
line crews with tree trimming as his time permits and making repairs to the trucks after they were
tested.
Steve and Jeff attended a Dig-Safely seminar last month. They learned about safety while
digging near underground utilities and new laws. Their education reports are attached in the
education section.
'' rATUREAt0 A !` 1® Page 1 of 1
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Elk Diver
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission David Berg—Water Superintendent
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 9, 2013 6.1
SUBJECT:
Staff Update
DISCUSSION:
We will be flushing water hydrants around the City from April 15-19. I've attached the
informational flyer that we posted at City Hall. This is routinely done in the spring to get fresh water into
the system after the winter.
We had the Freeport Water Tower kickoff meeting on April 1St. Odland Painting has started
prepping for painting and the Water Department is working on clearing the ice in the water tower and
draining the water.
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Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Tom Sagstetter- Conservation and Key Accounts
John Dietz—Chair Manager
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
April 9, 2013 6.1
SUBJECT:
Staff Update
DISCUSSION:
• Planning lifetime achievement award open house for Vance Zehringer. Cost will be
approximately$15.00 per ticket. It will be at Russell's on the Lake in Big Lake on June
18th from 3:00 p.m. to 6:00 p.m.
• Landfill expansion is moving forward. The Waste Management Renewable Energy
Division is working through feasibility studies for two types of engines that may be used
in the expansion. We are working on including additional flexibility in the gas supply
contract and generation abilities to take advantage of wholesale market pricing and
generation capabilities.
• Provided a letter to key commercial accounts and Elk River City Council along with the
Economic Development Authority on the effects of proposed legislation that is being
discussed at the capital. A copy of the letter is included in this staff update.
• Completed Phase IV of Project Conserve. ERMU staff completed 12 in home audits.
Customers participating liked the program a great deal and would recommend to others.
ERMU will be promote Project Conserve Phase Vat the Business Expo, and through
utility newsletters, bill inserts, and as an option for customers that are concerned about
energy and water use.
• Worked with Water Department to purchase 20 rain barrels that will be sold to ERMU
customers for$70. This program will help conserve water by utilizing free rain water to
water plants and landscaping. The rain barrel program will also be framed as a way to
control storm water runoff.
• ERMU will be participating in the Business and Community Expo on April 7`h. We have
put together a survey that customers need to take to receive an LED nightlight. We are
asking customers for their email and for participation in our online newsletters and
Project Conserve. We hope to get several participants.
1POVtREO 81'
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Elk River �.
Municipal Utilities Phone: 763.441.2020
13069 Orono Parkway• P.O. Box 430 Fax: 763.441.8099
Elk River,MN 55330-0430 www.ellcriverutilities.com
RE: MN Legislative changes that would increase electric rates by over 30%!
Can your business afford this Bill?
As Proposed,the House Energy Omnibus Bill, HF 956, and the Senate version of the Bill, SF 901, have enormous cost
implications for Minnesota businesses for years to come. It would increase electric rates by 15%to 32%as originally
proposed.
Three parts of the legislation are not in the best interests of Minnesota businesses and most consumers:
• A 1.33%rate increase to subsidize customer-owned electricity generation.This is basically a tax on all electric
sales to fund new renewable energy subsidies.
• The bill increases the state's renewable energy generation mandate for utilities from 25%to 40% by 2030.
This requirement forces utilities to buy more renewable generation than they need, resulting in customers
paying for this unnecessary generating capacity.
• And 4%of all electricity must come from solar technology, which would increase electric rates approximately
14%. While utilities support renewable energy,we would like it to be the right choice for our customers.At
this time, solar is a more expensive renewable option than wind by six times.
Make your voice heard, act NOW!
Elk River Municipal Utilities and other utilities throughout Minnesota are lobbying to change the proposed bill. We are
fighting on your behalf, but we need your help. As the negotiating continues,your voice needs to be heard.
Contact your State Representative, Senator, and Governor Dayton urging them to oppose Bill HF 956 and SF 901.
Contact info: hnpl/www.gistleg.mn/OpenLayers/districts
h ttp://m n.gov[gove rno r/contact-us/fo rrn/
Let's keep energy costs fair, equitable, and affordable for Minnesota businesses.
Thank you for your support.
Tom Sagstetter
Conservation and Key Accounts Manager
Elk River Municipal Utilities
Office (763) 635-1332
3gstetterrel kriverutilties.corn
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