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ERMUSR MISC ITEMS 04-08-2003 k River Municipal Utilities 322 King Avenue phone: 763.441.2020 Elk River,MN 55330 Fax:763.441.8099 April 1, 2003 To: Elk River Municipal Utilities Commission John Dietz Jerry Takle James Tralle From: Bryan C. Adams Subject: Miscellaneous Issues Enclosed is the packet for the April 8, 2003, commission meeting at 4:00 p.m. The Cretex Water Tower was removed last month. Attached are some photos showing the event. They started at approximately 7:00 a.m. and by 3:00 p.m. everything was cut up and hauled away. The contractor had his equipment packed and headed to the next job. Sherburne County Building and Estimated Population Report for 2002 just became available. Enclosed is the report for your review. Attached is an interesting article taken from the February issue of League of Minnesota Cities, titled "Thoughts About the Budget Debate." At the March 2003 Elk River Municipal Utilities Commission meeting, we discussed the cycled Air Conditioning Electric Rate and the Whole House Electric Rate with our proposed changes. For your information, in case you receive any calls, are the letters sent to our customers concerning these rate changes. On Sunday, March 30, 2003, we attended the Elk River Chamber of Commerce Business Expo. Excellent crowds. We gave away over 400 compact fluorescent lamps after the recipient filled out the attached questionnaire. This questionnaire was a great education tool. We also had many good comments on our CIP brochures. Also as a result of this Expo, we gave 2 additional tours through our LFG facility. Our Wind Power brochure was also well received. Our customers purchased an additional 145 blocks of 100 KWH of energy. This year Elk River Municipal Utilities participated in the Math Mentor Program in our school district. On April 3, 2003, ten 6" graders from Salk School toured our plant facility. ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION April 8, 2003 Members Present: John Dietz, President; James Tralle, Vice Chair; Jerry Takle Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water Superintendent; Patricia Hemza, Office Manager Other Employees Present: Wade Lovelette, Mark Fuchs, Trevor Gwiazdon, Richard Wagner Others Present: Lori Johnson, Bob Pearson, City of Elk River; Steve McDonald, Auditor I. Call meeting to order April 8, 2003 President John Dietz called the April 8, 2003 meeting to order. 2. Consider Utilities Agenda John Dietz moved to approve the Utilities Agenda for April 8, 2003, with an additional item from Bryan Adams, to be discussed under Other Business. Jerry Takle seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda James Tralle moved to approve the Consent Agenda as follows: March, 2003 Check Register March 18, 2003 Minutes Financials Jerry Takle seconded the motion. Motion carried 3-0. 5.1 Staff Up-dates (Verbal) Glenn Sundeen, Line Superintendent, reported on the progress of construction project. He also discussed tree trimming, and the need for more extensive trimming in the area acquired from Connexus. He reported that more time than usual has been spent on street light maintenance. John Dietz asked Glenn Sundeen if the frost is out, to facilitate underground construction. Glenn responded that it is. David Berg, Water Superintendent reported on the Hillside Tower bidding process for cleaning, and also reviewed the metering updates being done. 5.2 Review & Consider Phone System Lori Johnson, and Bob Pearson appeared on behalf of the City of Elk River to answer any questions about the progress of awarding bids for the new phone system. Bryan Adams explained to the Commission how the system would work for the Utilities in connection with City Hall, and that ti•e security, and ;liability concerns were resolved. The cost of the Utility portion of the phone system is estimated at $19,633.90. To secure the quoted pricing, the Utility would need to purchase the system at this time, for installation in late winter, 2004. Page 2 Regular meeting of the Elk River Municipal Utilities Commission April 8, 2003 James Tralle moved to authorize the purchase of the Inter-Tel phone system. Jerry Takle seconded the motion. Motion carried 3-0. 5.3 Review Underground Electric Construction Projects Sherburne County is planning to rebuild County Road 1 from the Country Club north in the 2005 time frame. The ERMU budget scheduled an underground feeder on County Road 1 in 2003. It is recommended that the project be delayed to 2005. Rebuild of an existing overhead line on County Road 13 to support acquisition areas 14, 16, & 17 is scheduled for 2004, but consideration should be given to doing the project in 2003 in replacement for the County Road 1 project. Due to right of way issues, it is believed that a better solution may be to construct a portion of the line to underground. Staff will return to the Commission with a recommendation after design and cost estimates are completed. 6.1 Review & Consider 2002 Audit Steve McDonald, Auditor from Abdo, Eick& Meyers appeared to present, and discuss the 2002 Audit of the Elk River Municipal Utilities. The Management letter provided the main source of discussion, noting no irregularities. A summary of the Utilities' operations, and an analysis of the Electric and Water funds was reviewed. Questions from Staff concerned cash reserves, net income, and long term debt. John Dietz asked Steve McDonald if the Utility would be prepared to comply with GASB, the required accounting, in the coming year. It was explained that the framework is in place, that the only thing needed is a formal policy. John Dietz requested that Staff use the same policy that the City uses. John Dietz thanked Steve McDonald for his appearance at the Commission meeting. James Tralle moved to receive and file the 2002 Audit. Jerry Takle seconded the motion. Motion carried 3-0. 6.2 Review Wage Request from ERMU Employees The request for annual salary and benefit adjustment from the operational employees was received, and considered. Bryan Adams reviewed the salary and benefit surveys, as well as the request for an employer matched contribution to an additional retirement plan. The Commission discussed the information, but chose to continue the matter to the next Commission meeting. John Dietz questioned Staff on the present policy for employee contributions to the health plan. He indicated that he would be in favor of separating family, and single coverage. Page 3 Regular meeting of the Elk River Municipal Utilities Commission April 8, 2003 6.2 Review Meter Reading Costs The Elk River Municipal Utilities contracts our meter reading functions to McBrady Meter Reading, who has done our meter reading since 1988. Mr. McBrady has requested an increase in payments made to his Company for services. Bryan Adams presented a history of meter reading costs, annual costs, and a survey of other utilities costs. The possibility of hiring additional employees for meter reading was discussed, with costs compared to contracting the task. Commission noted that they feel that McBrady Meter Reading does an excellent job, and prefer to stay on a contract basis at this time. James Tralle moved to grant the requested increase in compensation for contract meter reading services from McBrady Meter Reading. James Takle seconded the motion. 6.3 Review Safety Program Evaluation A letter from Dave Berggren, MMUA Regional Safety Coordinator was presented to Commission. The evaluation was positive for employee/management actions and reactions, as well as a review of OSHA and DOT Safety compliance. Jerry Takle noted that he feels safety is a very important part of a Utility. John Dietz asked if the City of Elk River received a similar letter, and if so, would like to see it. Other Business Bryan Adams briefly updated the Commission of legislative issues. The Elk River Municipal Utilities Commission then moved from the Utility Offices, to the new Utilities Offices being constructed at City Hall. 6.4 Tour of New Administration Building at City Hall Bryan Adams led a tour of the new Utilities Offices at City Hall, explaining the site. The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be May 13, 2003, at 4:00 PM, in the Utilities Offices. 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F. ,, N CID ` FU F D cn C SHERBURNE COUNTY ESTIMATED "2002" POPULATION FIGURES 71,893 Township only - 33,284 Cities only - 38,609 (Figures determined at a rate of 3 people per residence/apartment unit) 2002 PERMITS ISSUED IN THE TOWNSHIPS OF SHERBURNE COUNTY _OWNSHIP NEW HOMES & OTHER BLDG AG BLDGS SEPTIC VALUATIONS PERMITS &VALUATIONS • REPAIRS/ ALDWIN 118 $ 13,064,000 211 $ 2,966,500 2 47 ECKER 53 $ 7,204,000 153 $ 1,517,000 4 26 BIG LAKE 63 $ 8,265,500 223 $ 2,433,000 1 54 [SUE HILL 49 $ 5,490,000 40 $ 397,000 0 10 CLEAR.LAKE 4 $ 646,000 46 $ 507,000 1 8 1 AVEN 10 $ 1,536,000 53 $ 1,250,000 1 18 T TVONIA 105 $ 14,580,000 162 $ 1,830,000 2 24 ORROCK 53 5 6.512,000 76 $ 852,000 1 20 1 ULM 20 $ 2,775,000 65 $ 807,000 1 32 SANTIAGO 17 $ 2,443,000 46 $ 886,000 0 9 TOTALS 492 $ 62,515,500 1075 $ 13,445,500 13 248 "2002" NEW HOMF PERMITS/APARTVIENT/DUPLEX UNITS CITIES OF SHERBURNE COUNTY ( TIES NEW SINGLE FAMILY HOMES APARTMENTTOWNHOUSE EAST ST. CLOUD 4 196 UNITS P INCETON 0 0 UNITS ZIMMERMAN 95 27 UNITS B—CKER 64 0 UNITS C EAR LAKE 11 0 UNITS BiG LAKE 154 8 UNITS E K RI A '' 194 50 UNITS TOTALS 522 New Homes 281 Units 2002 PERMITS ISSUED IN TOWNSHIPS OF SHERBURNE (By Federal Code Number) CODE# DESCRIPTION NUMBER OF VALUATION PERMITS 101 NEW HOMES 492 $ 62,515,500 104 - 3 &4 FAMILY BUILDINGS 1 $ 106,000 318 RECREATIONAL 0 0 319 CHURCHES 1 $ 50,000 320 INDUSTRIAL BUILDINGS 1 $ 150,000 322 REPAIR GARAGES 0 $ 0 324 OFFICE AND PROFESSIONAL 0 $ 0 BUILDINGS 325 PUBLIC SERVICE BUILDINGS 1 $ 499.000 326 DAYCARE(COMMERCIAL) 0 $ 0 327 STORES AND CUSTOMER SERVICE 7 $ 958,000 BUILDINGS 328 OUTBUILDINGS/POLE BARNS 330 $ 4,295,000 329 STRUCTURES OTHER THAN 31 $ 237,000 BUILDINGS 434 RESIDENTIAL ADDITIONS AND 528 $ 4,904,500 ALTERATIONS 437 ADDITIONS AND ALTERATIONS NON- 12 $ 360,000 RESIDENTIAL 438 ADDITIONS OF RESIDENTIAL 152 $ 1,886,000 GARAGES 645 RAZING/ RESIDENTIAL 11 0 649 RAZING/ NON-RESIDENTIAL 0 0 TOTALS 1567 $ 75,961,000 AG BUILDINGS 13 -0- SEPTIC SYSTEMS REPAIRS 248 -0- o o o 0 0 0 0 0 0 0 0 0 0 o In o In o In o to o In o Lf 00 h 0 0 In In V d' CO Cr) N N r r l7 O ZOCe I-00. 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In the budget promises to be a long and keep state parks open on Sundays?" debate, this translates to "cut her undoubtedly contentious debate you might very well expect at least a program, but not mine." The notion over how to resolve the state's more mixed response. Unless increasing of the common good is quickly lost. monumental budget deficit. or decreasing taxes is placed in the i We are seeing this sentiment The only certainty is that it context of the consequence for service, expressed to some extent in the current I ultimately will be resolved. the question might just as well not be debate about Local Government Aid A How precisely the deficit is asked. Budgets are about both revenues (LGA). Some legislators and others have eliminated will bear heavily on the (taxes) and expenditures (services). And characterized the program as unfair quality of life Minnesota residents enjoy without simultaneously considering simply because of the wide diversity in for years to conic. And, as is so often the both, intelligent and responsible reliance on the program. This leads to case in life, the devil is in the details. decisions cannot be made. calls for creating a "fairer" system As I watch and participate in the Somewhat related to the above point involving fewer dollars going to fewer debate to balance the budget, I am struck j is the "zero-sum" mentality. "It's OK— cities. While the program may seem by two undercurrents heavily influencing in fact, appropriate—to cut money for unbalanced when examined only in the debate that will undoubtedly affect some programs,just not the ones that terms of how the money is distributed, its ultimate resolution. They are more ! I use or support," seems to be the a different picture emerges when than "details," yet neither has received j philosophy. An essential service to one underlying differences in need and nn'-'- public attention for the significant person might be seen as superfluous to ability to generate local tax dollars are r. cy play. another and, therefore, a prime candi- considered. ■ ae concems the disconnect between date for a funding cut. But, as we saw Citizens and legislators from the taxes and services. For good reason, when elimination of the Highway metro area indeed have a stake in budget debates at every level of govern- Helper program was suggested (an idea what happens to the amount of LGA ment center on how much taxes will that many thought would receive received by far away communities like be raised, or, most recently, reduced. '� widespread support), proponents of Hallock. The common good or the While the impact taxing decisions have seemingly low-priority programs can quality of life for all Minnesotans is on expenditures (and by extension, quickly emerge. maintained when Hallock and ocher 1 services) is perhaps recognized, that Not so very long ago, Minnesotans similar communities across the state are usually comes after general consensus felt connected to each other regardless able to provide basic, essential services has been reached on tax changes. As a of where they lived in the state. Many to residents at least somewhat compara- result, the cogent question of what we in the metro area had come from bly to those enjoyed by other state want and are willing to pay for in greater Minnesota and still had families residents. Less altruistically, if these governmental services is answered by and other ties in that area of the state. communities can no longer meet their default and not addressed at the outset Even when we were not related, we i residents' expectations and needs, as it should be. likely shared the same Scandinavian, migration to the metro area—with all We see this approach prominently German or other Northern European of its consequences, such as increasingly displayed in the current state budget heritage. For the most part, we looked clogged freeways—will accelerate. debate. Some point to the public's alike, believed alike, and shared essentially The current budget deficit will be apparent preference that the deficit be the same values. fixed. The quality and fairness of that solved without new taxes. They cite as The 2000 Census graphically demon- solution can indeed be enhanced if evidence a Minnesota Poll taken earlier I strated just how much the state has decisionmakers acknowledge these this year that found most respondents changed. We are increasingly a mix of considerations as part of the solution. ir oppose tax increases to solve the deficit different races, religions, and cultures, This finding may prove Minnesota and that trend will continue. While residents are sane, but little else. When diversity brings opportunity, it also I framed in the abstract, who would be means it is much easier to play the "zero- ! ex. -'d to want more taxes? sum" game. As your interests and needs ' Jim hiller is executive director of the vever, when the question is become more unlike mine, it becomes League of Minnesota Cities. Phone: (651) recast to something like, "Would you j much easier for me to undervalue the 381-1205. E-mail:jtniller @lninc.org. 'EaItUA ,ty 2003 MIyNEs , rj Caries 3 March 19, 2003 Name Address City MN 55330 Sub: Cycled Air Conditioning Electric Rate Dear Customer, You are currently on our cycled air conditioning program. This program allows us to interrupt your air conditioning for 15 minutes on and 15 minutes off, up to 6 hours a day for a maximum of 200 hours per year. This program gives you the benefit of a reduced electric rate on your air conditioner. Our power supplier has changed methods of reimbursement on cycled air conditioning programs. Instead of a reduced energy rate based on a separate metered consumption for your air conditioner, they have gone to a fixed monthly rebate. We have elected to change our reimbursement to you as well. Instead of the reduced energy rate on your air conditioner consumption, you will receive a $30 credit spread over the 5 summer months; $6 a month credit on your monthly bill. Depending upon your use of your air conditioner you may do better off financially with the $30 rebate. The real benefit to this cycled air conditioning program is to conserve power and delay the construction of additional power plants. By delaying construction of additional power plants we can keep your rates lower, and help the environment. Because we will no longer need the electric meter on your cycled air conditioner, we will be removing this meter. Enclosed are brochures explaining our Energy Star Appliance Rebates, Cycled AC, and $65 AC Tune-Up programs for air conditioners. These programs are specifically designed to save you money and energy. Please feel free to call me at 441-2020 if you have any questions or concerns. Sincerely, Bryan C. Adams P.E. General Manager Enclosures March 21, 2003 Name Address Elk River MN 55330 Subject: Whole House Rate Dear Customer, You recently became an electric customer of ERMU. Because of the ability to interrupt your electric water heater, you have a special electric rate. Your previous electric supplier, Connexus Energy, and ERMU handle this special rate differently. The attached sheet reflects Connexus Energy and ERMU's estimated annual electric costs for an average household using the different rate structures. ERMU does not offer a whole house rate. We do offer a water heater controlled off- peak rate that will require separate metering. Per the attached example, the annual cost of Connexus' whole house and off-peak water heating is $897.95 and $821.15 respectively. The annual cost of ERMU's off-peak water heater control is $795.36. As you can see, ERMU is more competitive but the water heater circuit in your house will require a separate meter which we will pay to have installed at no cost to you. If you find this an acceptable arrangement, please sign the second page of this letter and return it to us in the self-addressed envelope. We thank you for your consideration in this matter. If you have any questions about the above, please do not hesitate to call. Best Regards, Bryan C. Adams P.E. General Manager Enclosure I agree to allow ERMU to install an electric meter on the electric water heater circuit to measure the electric energy used by the electric water heater. This measured energy will be used to calculate the electric thermal storage water heating credit. ERMU will pay for all costs associated with the meter installation and associated wiring. Signature Date Address • CONNEXUS ENERGY WHOLE-HOUSE RATE VS ERMU RATE Connexus Energy General Service/Off-Peak vs Whole House Rate General Service Water Heater Rate per Off-Pk Rate Power Cost Monthly BILL WITH Whole-House BILL WITH Use In KWHs Use In KWHs KWH per KWH Adj per KWH Service Chg OFF-PEAK Rate WHOLE-HOUSE JAN 600 400 0.065 0.029 0.00857 7.50 66.67 0.059 75.07 FEB 600 400 0.065 0.029 0.00858 7.50 66.68 0.059 75.08 MAR 600 400 0.065 0.029 0.00828 7.50 66.36 0.059 74.78 APR 600 400 0.065- 0.029 0.00828 7.50 66.38 0.059 74.78 MAY 600 400 0.065 0.029 0.00828 7.50 66.38 0.059 74.78 JUNE 600 400 0.075 0.029 0.00828 7.50 72.38 0.059 74.78 JULY 600 400 0.075 0.029 0.00828 7.50 72.38 0.059 74.78 AUG 600 400 0.075� 0.029 0.00828 7.50 72.38 0.059 74.78 SEPT 600 400 0.075 0.029 0.00828 7.50 72.38 0.059 74.78 OCT 600 400 0.065 0.029 0.00828 7.50 66.38 0.059 74.78 NOV 600 400 0.065 0.029 0.00828 7.50 66.38 0.059 74.78 DEC 600 400 0.065' 0.029 0.00828 7.50 66.38 0.059 74.78 $ 821.15 $ 897.95 Elk River Municipal Utilities General Service/Off-Peak Rate General Service Water Heater Rate per Off-Pk Rate Power Cost Monthly Mo Bill With Use in KWHs Use In KWHS KWH per KWH Adj per KWH Service Chg Off-Peak JAN 600 400 0.0653 0.0395 0 7.00 61.98 FEB 600 400 0.0653 0.0395 0 7.00 61.98 MAR 600 400 0.0653 0.0395 0 7.00 61.98 APR_ 600 400 0.0653 0.0395 0 7.00 61.98 f 600 400 0.0825 0.0395 0 7.00 72.30 u1/4. 600 400 0.0825 0.0395 0 7.00 72.30 JULY 600 400 0.0825 0.0395 0 7.00 72.30 AUG 600 400 0.0825 0.0395 0 7.00 72.30 SEPT 600 400 0.0825 0.0395 0 7.00 72.30 OCT 600 400 0.0653 0.0395 0 7.00 61.98 NOV 600 400 0.0653 0.0395 0 7.00 61.98 DEC 600 400 0.0653 0.0395 0 7.00 61.98 $ 795.36 Notes: 1. Connexus Energy's power cost adjustment is added to their published rate. 2. Elk River Municipal Utilities'power cost adjustment is factored into the published rate. 3. Assumed typical usage at 1000 kWh per month with 400 of that going to the water heater. To Receive Your Free Compact Fluorescent Lamp From . Please Answer The Following Questions. lkRiv E er Municipal Utilities Name Electric Utility: Elk River Municipal Utilities (ERMU) Connexus Energy (Anoka Electric) X-Cel Energy (NSP) Wright-Hennepin Coop Electric Assn Other(please list) 1. How did you find out about ERMU's rebate Program that pays $30 to $800 to their customers for purchasing ENERGY STAR rated appliances? Star News, Utility Brochure, Business Expo! 2. How did you find out about ERMU's Rebate Program which pays $5 toward purchase of compact fluorescent lamps for its customers? Star News, Utility Brochure, Business Expo! 3. How did you find out that ERMU pays its customers up to $65 to have their air Conditioners tuned up? Star News, Utility Brochure, Expo 4. Did you know that ERMU pays its customers $30 per year for them to participate in the Cycled AC Program? Yes, No 5. ERMU asks its customers to reduce use of electricity on hot, humid summer days. This voluntary Program is called "Dial Up Five @ 5" and "Wait Till 8". Were you aware of this Program? Yes, as of today, Yes, heard about it last year, Was not aware of it! 6. Do you think ERMU's odd/even summer sprinkling ban is a good idea? Yes, No. 7. Were you aware that ERMU offers a full line of security monitoring services and medical alert services? Yes, No 8. Do you know that for just a couple dollars per month, you can purchase WIND POWER from your local utility? Yes, No 9. Last November, Elk River Municipal Utilities dedicated its Landfill Gas Electric Generating Plant. Did you know that 15% of Elk River electrical energy now comes from that plant? Yes, No. Were you also aware that the Environmental Learning Center is a part of that plant? Yes, No TOURS ARE BEING OFFERED, PLEASE SIGN UP!