6.4. ERMUSR 01-09-2007 Elk River
Municipal Utilities
13069 Orono Parkway phone: 763.441.2020
Elk River,MN 55330
Fax:763.441.8099
January 2, 2007
To: Elk River Municipal Utilities Commission
Jerry Takle
John Dietz
Jim Tralle
From: Bryan Adams
Subject: Annual Report to City Council
On an annual basis, all of the departments of the City of Elk River provide annual reports
to the City Council. These reports are also completed in digital format and placed on the
cities website so the general public can review these reports. The city desires a more
condensed version so this may be shortened in its final form. It is good for this
commission to review 2006 accomplishments and review 2007 goals.
Attached is the proposed Elk River Municipal Utilities annual report for your review and
comments.
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RiverM 1 util . .
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Annual Report
2006
Utilities Mission Statement
To provide our customers with safe, reliable, cost effective and quality
long term electric and water utility service. To communicate and
educate our customers in the use of utility services, programs, policies,
and future plans. These products and services will be provided in an
environmentally and financially responsible manner.
1
ELK RIVER MUNICIPAL UTILITIES
SUMMARY OF YEAR 2006
BUDGETS
ELECTRIC BUDGET SUMMARY 2006
ELECTRIC REVENUE $ 18,000,000
ELECTRIC EXPENDITURES 16,800,000
ELECTRIC NET FOR CAPITAL 1,200,000
DEBT RETIREMENT 245,000
PROMISSORY NOTE TO COUNTY 157,152
GROSS 797,848
CAPITAL EQUIPMENT/CONSTRUCTION 5,950,000
BONDING 3,500,000
NET (1,652,152)
DEPRECIATION 1,680,000
NET TO RESERVES 27,848
WATER BUDGET SUMMARY 2006
WATER REVENUE 1,770,000
WATER EXPENDITURES 2,100,000
WATER NET FOR CAPITAL (330,000)
WATER FEES GENERATED (FOR EXISTING& 875,000
FUTURE BOND PMTS)
DEBT RETIREMENT 410,000
GROSS 135,000
CAPITAL PROJECTS FROM CASH 461,500
NET (326,500)
DEPRECIATION 800,000
NET TO RESERVES 473,500
BUDGET SUMMARY2006 revised
2006 Department Staff
Elk River Municipal Utilities Organizational Chart
Electric&Water Customers
Elk River Utility Commission
Jerry Takle -President
John Deitz-Vice Chairperson
James Tralle -Trustee
General Manager
Bryan Adams
1 I I
Elec Tech/Water Super Electric Superintendent Engineering Manager Office Manager
David Berg Glenn Sundeen Troy Adams Theresa Slominski
Utility Worker/Water Line Foreman Lead-Lineman Utility Worker/Locator Asst. Office Manager
Peter Nielsen Wade Lovelette Mark Fuchs Richard Wagner Vivian Schmidt
Utility Worker/Water Lead-Lineman Lead-Lineman Utility Worker/Locator Office Clerk
Richard Cline Arthur Gatchell Lloyd Lorenzen Jeff Murray Judy McSpadden
Utility Worker/Water Lead-Lineman Lead-Lineman Office Clerk
Steve Ziemer Scott Thoreson Trevor Gwiazdon Dolores Andreasen
Utility Worker/Meter Lead-Lineman Lineman Office Clerk
Michael Price Michael Thiry Thomas Geiser Ryan Westre
Utility Worker/Meter Lineman Lineman Office Clerk
Adam Freiberg Jeffrey Henning Troy Seter Gregory Scherber
Utility Worker/Security Apprentice Lineman Apprentice Lineman Clerk/Receptionist
Rick Schaust Shane Defeyter Chad Grande Betty Belanger
Lineman Laborer Clerk/Receptionist
Chris Sumstad Christine Holman Michelle Martindale
Utility Worker/Gen Clerk/Receptionist
Steve Ziemer Tricia Pope
Contractors and Special Vendors:
Marketing Consulting—Vance Zehringer
Safety Program—MMUA
Meter Reading—McBrady Meter Reading
ELK RIVER MUNICIPAL UTILITIES
YEAR IN REVIEW
2006 Major Accomplishments
Bryan Adams, General Manager
Administration—Theresa Slominski/Financial Director
1) Continued administrating the Connexus/Great River Energy power purchase
agreement costing approximately$10,200,000.
2) Remained active in MMUA in industry restructuring issues.
3) Remained active in Energy City activities.
4) Installed fourth engine generator at Elk River Landfill in partnership with Sherburne
County and Waste Management. Plant capacity factor of 100% which exceeds
expectations.
5) Continued to successfully handle the increase in customers, monthly billing and
collections. Customer monthly billings include approximately 8,800 electric, 4,300
water, 4,300 sewer and 5,600 garbage.
6) Contributions to the City of Elk River totaled approximately$750,000.
7) Administered CIP Programs for Elk River which entail, Compact Fluorescent Lamps,
AC Trees, Appliance Rebates, Cycled Air Conditioning, Commercial Rebates, and
Air Conditioning Tune-up. CIP programs exceeded $208,000.
8) Participated in MMTG as a vehicle to invest in CAPX 2020 electric systems
expansion. This is a strategy to keep our electric retail rates as low as possible.
9) High speed broadband access for Elk River was reviewed in great depth. After
encouragement from Elk River Municipal Utilities,North Star Access is proceeding
with a pilot study.
Engineering Services—Troy Adams/Engineering Manager
1) Started Engineering Department.
2) Brought Electric and Watering mapping back in house.
3) Continued progress in GPS and GIS Systems.
4) Prepared new standard for HDPE water service.
Water Department—David Berg/Water Superintendent
Water& Electric Technologies
1) Expanded water mains to Trott Brook's Vandenberg Addition, Eagles Marsh 2' '
Addition and River Park Addition.
2) Looped water main for Guardian Angels building project.
3) Connected 247 new water services to the water system for a total of 4,341.
4) Increased Security System customers by 123 for a total of 485.
5) Produced over 802 million gallons of water with a peak day of 6.34 million gallons,
an increase of 15.1 % from the previous year.
6) Drilled a test well at Johnson Street Water Tower.
7) Awarded contracts for 2007 construction to loop water mains on County Road 40,
County Road 12 and Twin Lakes Road.
Electric Department - Glenn Sundeen/Line Superintendent
Electric Department
1) Expanded electrical distribution system in Trott Brook 12th,Vandenberg Addition,
Eagles Marsh 2nd, River Park 1st, and Otsego's Great River Centre.
2) Installed new 28 MVA transformer at West Bank#1.
3) Finished construction and energized Otsego Station.
4) Constructed 4 new underground feeders at Otsego Substation.
5) Constructed and energized new Station 14, bank#2 substation.
6) Constructed 2 new feeders from Station 14 to West Elk River Business Park.
7) Relocated overhead lines for HW 101 and Co. Rd. 42, Co. Rd. 33, Co. Rd. 40 and
moved underground lines on Co. Rd. 1.
8) Added 323 electric meters to electric systems for a total of 8,859.
9) Purchased over 205 million KWH of energy with a peak day of 48.4 M.W. or an
increase of approximately 6.2%.
2007 Goals
Elk River Municipal Utilities (ERMU) goals are in part reflected in our annual budget
which is not included in this report due to its length. It is safe to say this budget
requires Elk River Municipal Utilities to continue to provide reliable, cost effective
electric and water utility services in a safe and environmentally friendly fashion.
ERMU `s staff spends a significant amount of time analyzing past trends and predicting
the future for physical plant items, financial requirements and human resources needs to
ensure we have adequate capacity to successfully carry on our utility business.
The goals for 2007 in order of priority are as follows:
A) Satisfy 2007 Budget requirements and complete projects started in 2006.
B) Continue to investigate and solve long term physical and financial growth
needs.
C) The wholesale electric rate from Great River Energy/Connexus is continuing
to rise in the next few years. Staff must continue to explore different
strategies to offset these increased costs thus minimizing electric rate
increases.
D) Stay current on Electric Industry Restructuring and Service Territory issues.
E) Improve on marketing efforts in Security System sales, CIP Programs and
Water Conservation.
F) Continue to support Energy City activities.
Sheet2
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Customers
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Year
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Sheet2
Elk River Municipal Utilities Electrical
Demand
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Year
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Year
Elk River Municipal Utilities Annual Water
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Year
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