4.2. SR 07-19-1999
rll ---'\)
( );
!l~
Item #4.2.
MEMORANDUM
SUBJECT:
Mayor & City Council
Pat Klaers, City~strator
July 19, 1999 ~
Utilities Commission Update
. TO:
River FROM:
DATE:
Councilmember John Dietz is our city representative on the Elk River
Municipal Utilities Commission. At this July 19, 1999, City Council meeting,
John is scheduled to provide the council with an update on June and July
Utilities activities. Attached for your review are the draft minutes from the
July 13, 1999, Utilities Commission meeting.
.
.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
.
.
.
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
JULY 13, 1999
Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCari:ney, Water Superintendent; Patricia Hemza, Office Manager
Others Present: Vance Zehringer, Customer Services Consultant
1. Call meeting to order at 4:00 P.M.. July 13, 1999
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda, with one addition from
Bryan Adams. James Tralle seconded the motion. Motion carried 2-0.
3. Consider Consent Agenda
George Zabee moved to approve the Consent Agenda as follows:
6-8-99 Minutes
June Check Register
Financials
John Dietz arrived at 4:10 P.M.
5.1 Review Final Results from Customer Visits
Vance Zehringer presented his final report on the Key Account Visits he has
made. He noted that in each case, these key accounts were very satisfied with
the level of service and experiences they had in dealing with utility personnel,
as well as the reliability of service. The area of concern in ten percent of those
demand customers is the cost of electricity due to their low load factor. Various
solutions were discussed between Staff and the Commission. James Tralle noted
the fine job that is being done by Vance Zehringer, and expressed his
appreciation.
.
.
.
Page 2
Regular meeting of the Elk River Utilities Commission
July 13, 1999
5.2 Review offering Motor-Lighting Rebates
The possibility of offering energy audits and providing rebates on energy
efficient lighting and motor retrofits was discussed. Staff and Vance Zehringer
recommend offering a limited number of energy audits and provide rebates for
the remainder of 1999.
James Tralle moved to offer rebates of high efficiency lighting retrofits, motor
retrofits, and energy audits, with a maximum expenditure to the ERMU of $5,000,
limited to $1,500.00 per customer for the remainder of 1999. George Zabee
seconded the motion. Motion carried 3-0.
5.3
Review Off Peak Electric Tariff
Discussion of the present Off Peak Demand Tariff centered around the impact
to the low load factor customers. Staffhas reviewed the rate using several
alternatives. Commission directed Staff to pursue additional analysis of the
rate. James Tralle offered his support of a general decrease, rather than singling
out the low load customers only. George Zabee would support a combination.
John Dietz favors are-working of the demand rate that will affect the low load
customers.
6.1 Review & Consider Water Main Improvement
A water quality and pressure problem at the West end of 51h Street NW, just north
of Main Street and Tipton Avenue needs to be addressed at this time. The
problem of a dead end main is the cause.
James Tralle moved to extend the water main on 51h Avenue east and south to the
water main at the intersection of Main Street and Tipton Avenue. George Zabee
seconded the motion. Motion carried 3-0.
6.2 Review & Consider APP A Resolution
A subject resolution and draft letters to our Senators and Representatives
regarding electric re-structuring was presented.
George Zabee moved to adopt the resolution as presented. John Dietz seconded
the motion. Motion carried 3-0. (Copies attached to these minutes.)
.
.
.
Page 3
Regular meeting of the Elk River Utilities Commission
July 13, 1999
6.3 Review MMUA Rate Survey Results
The MMUA 1998 Electric Rate Survey was presented along with an analysis
of the data. The Elk River Municipal Utilities falls in the 3rd Quartile, indicating
that considering the growth of our area and the territory acquisition, we are in
a satisfactory position. Staff advises that the Commission needs to keep down-
ward pressure on rates.
.
Other Business
Bryan Adams advised the Commission that Art Gatchell has had second thoughts on
accepting the position of Water Superintendent.
The next scheduled meeting of the Elk River Municipal Utilities Commission will be
August 10, 1999.
James Tralle moved to adjourn the July 13, 1999 Regular Meeting of the Elk River
Municipal Utilities Commission. George Zabee seconded the motion. Motion carried
3-0.
The July 13, 1999 meeting of the Elk River Municipal Utilities adjourned at 5:10 P.M.
Respectfully submitted,
'Q~~.,J
Patricia Hemza
Office Manager