5.4. ERMUSR 08-12-2014 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission John Dietz - Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
August 12, 2014 5.4
SUBJECT:
Sherburne County Fair Hydrant Rental
BACKGROUND:
The Fair Board requested use of a hydrant this year and there has been some miscommunication
between the parties as to how our hydrant meter rental program works. An email sent to John
Dietz is attached.
ACTION REQUESTED:
Discuss situation to determine if any further action is needed.
ATTACHMENTS:
• Email from the Sherburne County Fair Board
• Hydrant Meter Rental Agreement
• Invoice for Hydrant Rental and Water Usage
• ERMU Policy 8.13 Payment in Lieu of Taxes (PILOT) and Other Donations to the
City of Elk River
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Original Message
From: Irene Kostreba
To:John Dietz
Sent: Sat,Aug 2, 2014 11:31 am
Subject: fair
Hi John,
Roger went to Elk River Municipal Utilities and asked for the wrench.They said that we had to use a
water meter this year to see how much water is used and where, so that at the end of the year if there is
missing numbers they can go back to that meter.We needed to put
$1000 down payment on the meter but would get that back when the fair was over.
Roxane Bennington went down there with the$1000 deposit check for the meter on 7/17/2014.They
asked to sign a contract that she had it.When they came and picked up the meter,wrench and hose,the
person came into the fair office and brought us our fire hose. I asked about the deposit check. He said
he would bring it tomorrow [Tuesday].A few days later I get a check in the mail from them with money
taken out for hydrant rental $50 and water usage by volume$28.Total-$78+tax of
$5.36=$83.36. Roger was told that there would be no charge for this,they just needed a deposit for the
meter. When Roger called them after we received the check in the mail,they said it is on the contract
that Roxane signed.
Thank You
Irene
treasurer Sherburne County Fair
109
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Municipal Utilities Phone: 763.441.2020
13069 Orono Parkway•P.O.Box 430 Fax: 763.441.8099
Elk River,MN 55330-0430 www.elkriverutilities.coxn
ERMU Hydrant Meter Rental
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• Hydrant Rental is$50 per Week of Use. \C
• Hydrant°Meter4 eposit'i $`1000 for 21/2 "Meter and$150 for 5/8" Meter. \ A\r
• charged of per unit(1 Unit-1000 gallons).
Water is barged to the user at the rate $4 p ( g )
• Deposit and billing address must be secured before delivery/pickup of water meter.
• User is responsible for ensuring positive control of the hydrant meter. If the meter is lost or
stolen the user will be charged to replace the meter.
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• Invoice
Invoice Number:
Elk V 17700
Municipal Utilities Invoice Date:
13069 Orono Parkway
PO Box 430
Elk River, MN 55330-0430
(763)441-2020
SHERBURNE COUNTY FAIR BOARD
13372 BUSINESS CENTER DRIVE
PO BOX 2
ELK RIVER MN 55330
HYDRANT RENTAL&WATER USED AT SHERBURNE CO FAIR Page 1 of 1
Date Qty Description Per Unit Extension
07/23 1 Hydrant Rental $50.0000 $50.00 Tx
07/23 7 Water Usage by volume $4.0000 $28.00 Tx
07/23 1 Water Meter Deposit ;$1,000.0000) $1,000.00 cr
Sub-Total ($922.00)
Due On Receipt Tax $5.36
Total Invoice Amount ($916.64)
Payment Received ($916.64)
Total $0.00
111
Elk River
Municipal Utilities
8.13 PAYMENT IN LIEU OF TAXES (PILOT) AND OTHER DONATIONS TO
THE CITY OF ELK RIVER
1.0 Purpose and Summary
The success of ERMU is linked with the success of our community. And the success of our
community is linked with the operation of our city government and ERMU. ERMU was
purchased by the City of Elk River in 1945 and separate governance was created per State
Statute in 1947. Although governed separately, ERMU is still an important component of our
local government and our city services.
It is typical for a municipal utility to provide a Payment in Lieu of Taxes (PILOT) and other
donations to their city, regardless of a separation of governance. Although typical, this
contribution should never inhibit ERMU's ability to make repayment on debt, cause ERMU to
become non-competitive, or inhibit needed investment in personnel or infrastructure which may
hurt ERMU's ability to meet the needs of their customers. For these reasons the PILOT and
other donations should be reviewed at least once every five (5)years by the ERMU Commission.
2.0 Payment in Lieu of Taxes (PILOT)
The PILOT transfer from Elk River Municipal Utilities to the City of Elk River shall be three
percent(3%) of the revenues generated by ERMU's electric customers within the corporate
boundaries of the City of Elk River.
3.0 Donated Electricity
Elk River Municipal Utilities shall donate all electricity to the City of Elk River for all of their
facilities not associated with enterprise funds of the City of Elk River. As an example, this will
include buildings such as City Hall, Police and Fire Departments, Library, Park, Street
Department Buildings, street lights, and signal lights; this shall not include such buildings as
Liquor Stores, Wastewater Treatment Plant, Ice Arena, or lift stations.
8.13 Payment in Lieu of Taxes Page 1 of 2 Adopted December 6, 1994
(PILOT) and other Donations to the Revised June 6, 2008
City of Elk River Revised July 2, 2013
112
4.0 Donated Water
Elk River Municipal Utilities shall donate water for use by the Elk River Fire Depai tment
(ERFD) for the purpose of extinguishing fires within the City of Elk River and other cities under
contract with the ERFD.
For the purpose of creating ice rinks for public/non-enterprise use, ERMU shall donate water for
use by the Elk River Parks Department.
Elk River Municipal Utilities shall donate water for the use by the Elk River Streets Department
for the use of street sweeping.
5.0 Donated Labor
Because of specialized skills and equipment, ERMU may be able to provide a better value to our
community by donating labor to the City of Elk River. For example, ERMU has trained
employees and the equipment to hang banners where the City does not. In this example, ERMU
is able to provide this donated service to the City for less cost than a third party, creating greater
value to our community. For such situations, ERMU shall donate labor to the City of Elk River,
as appropriate, where a greater value is created for our community and where ERMU is not
subjected to undue burden.
In addition to hanging banners, other examples include: maintenance of street lighting,relamping
signal lights, locating underground fiber optics and/or other facilities, administration costs
associated with the billing of city franchise fees, installation of temporary lighting, relamping of
city ball field lighting, installation and/or maintenance of city warning sirens, meter reading for
wastewater, assistance with tree trimming, etc...
8.13 Payment in Lieu of Taxes Page 2 of 2 Adopted December 6, 1994
(PILOT) and other Donations to the Revised June 6, 2008
City of Elk River Revised July 2, 2013
113