01-13-2004 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER MUNICIPAL UTILITIES COMMISSION
January 13, 2004
Members Present: John Dietz, President; Jerry Takle, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David
Berg, Water Superintendent; Patricia Hemza, Office Manager
Others Present: Pat Klaers, City Administrator; Terry Maurer, City Engineer
1. Call meeting to order
President John Dietz, at 4:00 pm on January 13, 2004.
2. Consider Utilities Agenda
James Tralle moved to approve the Utilities Agenda for January 13, 2004, moving
Item 5.2 to be discussed before 5.1. Jerry Takle seconded the motion. Motion carried 3-0.
James Tralle moved to approve the Consent Agenda as follows:
December 2003 Check Register
December 9, 2003 Minutes
Abbreviated Financial Reports
Jerry Takle seconded the motion. Motion carried 3-0.
James Tralle moved to designate First National Bank official depository for 2004, and
designate Elk River Star News official newspaper for 2004. Jerry Takle seconded the
motion. Motion carried 3-0.
5.2 Review MNDOT Street Light Maintenance Agreement
Bryan Adams reviewed the Street Light& Signal Light issues, with regard to agreements,
responsibility, and maintenance. The most urgent problem are the approximately 30 street
lights on Highway 10, between Main Street, and Proctor Avenue. The lights are rusted, and
Staff feels they are beyond repair, and further, that they are a safety hazard. Terry Maurer
reviewed his research on the MNDOT agreements. The agreements state that the City is
responsible for electrical energy, and normal maintenance. The agreements do not state who
will determine when a signal or street light needs painting or replacement of the poles.
James Tralle asked Terry Maurer what he would suggest, and he replied that he would begin
by calling MNDOT, and requesting replacement of the poles. Pat Klaers was concerned that
if MNDOT refused to replace, or paint the poles, who would be responsible for taking care of
the problem. The last record for Street light donations by the Utility to the City was in 1987,
and the donation was capped at $30,000.00. The contribution has not been revised since, and
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
January 13, 2004
the cap has not been followed over the years. John Dietz states that he is in favor of
contacting MNDOT before any further action is taken. A joint City Council Utility
Commission meeting will be scheduled near the end of March, and this problem is one of the
items that will be discussed. It was noted that by the time of the joint meeting MNDOT will
have replied to Terry Maurer's request for information.
5.1 Staff Up-dates
Glenn Sundeen reported on the progress of jobs in construction, and the completion of
other projects. He noted there were 53 new services installed in the last month.
David Berg reported that Well#8 construction is underway, the current depth is 150 feet,
and is on schedule. The security department sold two new security systems, and the meter
department has been busy with installation and replacement of meters.
Patricia Hemza reported that the office is busy wrapping up 2003 year end business, and
that the GASB rule changes have been completed.
Bryan Adams presented Commission with a detailed cost of Well #8 relocation, and a
memorandum to the Park and Recreation Commission from the Park Planner. The
memorandum considers park maintenance costs for Royal Valley Park. The proposal
contains an item that makes the Elk River Municipal Utilities responsible for the
maintenance of the prairie plantings. The Commission had agreed to a $1,000.00 expense for
trees. The Commission and Staff discussed the topic regarding the costs of the well
relocation, and the donation of trees to the park. James Tralle stated that he does not agree
with the maintenance portion of the proposal, and John Dietz agreed.
John Dietz moved to pay the costs,not to exceed $1000.00 for deciduous trees, but no
maintenance charges. Jerry Takle seconded the motion. Motion carried 3-0.
Bryan Adams, and Terry Maurer discussed with the Commission the proposed
interchanges, and overpasses on Highways 101, and 169.
5.3 Review and Adopt GASB 34
The Capital Asset Guide, which is the document that will comply with Governmental
Accounting Standards Board(GASB) Statement 34 was presented for the consideration of
the Commission. Discussion between Staff, and Commission centered on the depreciation
schedules, the combining of certain capital accounts, and the changes that may be seen on the
monthly financial figures.
James Tralle moved to approve the Capital Asset Guide for the satisfaction of GASB 34.
Jerry Takle seconded the motion. Motion carried 3-0.
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Page 3
Regular meeting of the Elk River Municipal Utilities Commission
January 13, 2004
5.4 Update Water Metering
Bryan Adams advised the Commission of the concern over the line loss in the water
department. Some of the well meters were inaccurate, and have been replaced. Meter
reading/billing issues with retail commercial, and residential meters are also being
scrutinized. Certain ERT meters were programmed wrong from the manufacturer. Staff is
reprogramming, or replacing those ERTs. Staff is now doing all water meter ERT
programming. Examples of the difficulty in reading meters were reviewed. John Dietz
asked how many meters were significantly impacted, and Staff replied that only two were of
consequence, and that they have been corrected.
6.1 Review & Consider 2004 Wire Bids
Staff presented Commission with a tabulation for the 2004 Electric Wire bids that were
received on January 8, 2004. It was noticed that the bidding process has become increasingly
complicated,with more companies bidding. The firm versus escalated bidding procedures
was debated. Jerry Takle asked if test wires were a requirement of the process, and Bryan
Adams replied that they were not. Bryan Adams added that the bids were very competitive.
James Tralle moved to approve the wire bids for 2004 as recommended by Staff. Jerry
Takle seconded the motion. Motion carried 3-0.
6.2 Review& Consider Pick-up Truck Bids
State bids have not been let for 2004, so this item will be reconsidered at the
February, 2004 Commission meeting.
6.3 Review Water SCADA Bids
Staff and Commission discussed the 2004 water capital budget item for $200,000 for
control upgrades and Supervisory Control And Data Acquisition(SCADA) system. Staff is
asking for authorization to proceed with the project. Jerry Takle questioned the alarm
functions for chemicals, and Staff responded.
James Tralle moved to authorize Staff to proceed with the Control/SCADA system,
staying within bid limits. Jerry Takle seconded the motion. Motion carried 3-0.
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
January 13, 2004
6.4 Review Electric Outage Report
The annual outage report required by the Minnesota Energy Security and Reliability
Act was submitted to the Commission. A spread sheet was reviewed, with questions, and
answers following. A copy of the report is filed with these minutes.
James Tralle moved to receive and file the annual outage report as presented. Jerry
Takle seconded the motion. Motion carried 3-0.
Other Business
There was no further business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will
be February 10, 2004.
President John Dietz adjourned the January 13, 2004 meeting of the Elk River
Municipal Utility Commission at 5:30 pm.
Respectfully submitted,
Patricia Hemza
Office Manager
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j 2002 2003
Types of # of 1 % Customer # of Customer
Faults Faults i Minutes % Faults % Minutes %
U.G. Faults 6 i 12 24,730 6.9 6 11.3 1,045 2.7
Dig-Ins 4 I 8 52,980 14.9 2 3.8 3.000 7.6
Termination
Failure 5 , 10 450 0.1 1 1.9 600 1.7
Transformer 1
Failure 3 1 6 1.620 0.5 3 , 5.7 565 1.4
Fuse Failure I 5 10 13.935 3.9 I 10 ! 18.9 ' 3.445 8.8 1
Connector I - - - I - I 2 I 3.8 1.830 4.7 1
Branches 1 1 2 60 0.0 1 1.9 450 1.1
Animal 9 i 18 2,460 0.7 11 20.7 14,530 37.0
Transformer
Failure 3 6 605 0.2 1 1.9 300 .8
Lighting
Arrestor 0 0 0 0.0 2 3.8 1,950 5.0
Weather 9 18 17,340 4.9 10 18.9 10,695 27.2
Vehicle Hit
Pole 3 i 6 29,220 8.2 3 5.7 415 1.0
Wholesale
Supplier 2 4 213,000 59.8 1 1.9 400 1.0
48 100 356,400 100 53 100 39,285 100
The above table reflects no alarming trends or patterns.
A number of reliability indexes are evolving in the electric industry to make it easier to
compare performance of electrical utilities. These reliability indexes are:
1. ASAI (average service availability index)
ASAI is a measure of the average availability of the sub-transmission and distribution
systems to serve customers. It is the ratio of the total customer minutes that service was
available to the total customer minutes demanded in a time period. It is normally
expressed as a percentage.
ERMU's 2003 ASAI is 99.99%. This is a very good percentage for any utility.
2. CAIDI (customer average interruption duration index)
This is defined as the average length of an interruption, weighted by the number of
customers affected, for customers interrupted during a specific time period. It is
calculated by summing the customer minutes off during each interruption in the time
period and dividing this sum by the number of customers experiencing one or more
sustained interruptions during the time period. The resulting unit is minutes. The index
enables utilities to report the average duration of a customer outage for those customers
\, affected.
ERMU's 2003 CAIDI is 70.03. We do not as yet have a feel for this number if it is good,
average, or bad.
3. SAIDI (system average interruption duration index)
This is defined as the average interruption duration for customers served during a
specified time period. It is determined by summing the customer-minutes off for each
interruption during a specified time period and dividing the sum by the average number
of customers served during that period. The unit is minutes. This index enables the
utility to report how many minutes customers would have been out of service if all
customers were out at one time.
ERMU's SAIDI is 5.46. We do not as yet have a feel for this number if it is good,
average, or bad.
4. SAIFI (system average interruption frequency index)
This is defined as the average number of times that a customer is interrupted during a
specified time period. It is determined by dividing the total number of customers
interrupted in a time period by the average number of customers served. The resulting
unit is "interruptions per customer". Separate SAIFI indexes are sometimes calculated
for long and for short interruptions.
ERMU's 2003 SAIFI is .78 with GRE's transmission outage and .051 w/o GRE
transmission outage. .051 equals to a customer will experience an electric outage every
19.6 years. This appears to be a very good number.
Another statistic staff gets concerned about is the overage length of any outage. ERMU's
2003 average length of outage is 101.37 minutes. Electric utilities with a high percent of
underground facilities will exhibit higher length of outage times than electric utilities
with high percent of overhead facilities. We are currently trying to fmd these statistics
from other electric utilities.
Staff has reviewed these statistics in detail to fmd ways to improve. My experience tells
my these statistics are very complementary to ERMU. Glenn Sundeen and his
department continue to do an outstanding job in constructing, operating and maintaining
an electrical system particularly in a fast growing area.
ERMU's 2003 CAIDI is 70.03. We do not as yet have a feel for this number if it is good, _
average, or bad. '
3. SAIDI (system average interruption duration index)
This is defined as the average interruption duration for customers served during a
specified time period. It is determined by summing the customer-minutes off for each
interruption during a specified time period and dividing the sum by the average number
of customers served during that period. The unit is minutes. This index enables the
utility to report how many minutes customers would have been out of service if all
customers were out at one time.
ERMU's SAIDI is 5.46. We do not as yet have a feel for this number if it is good,
average, or bad.
4. SAIFI (system average interruption frequency index)
This is defined as the average number of times that a customer is interrupted during a
specified time period. It is determined by dividing the total number of customers
interrupted in a time period by the average number of customers served. The resulting
unit is "interruptions per customer". Separate SAIFI indexes are sometimes calculated
for long and for short interruptions.
ERMU's 2003 SAIFI is .78 with GRE's transmission outage and .051 w/o GRE
transmission outage. .051 equals to a customer will experience an electric outage every
19.6 years. This appears to be a very good number. _
Another statistic staff gets concerned about is the overage length of any outage. ERMU's
2003 average length of outage is 101.37 minutes. Electric utilities with a high percent of
underground facilities will exhibit higher length of outage times than electric utilities
with high percent of overhead facilities. We are currently trying to find these statistics
from other electric utilities.
Staff has reviewed these statistics in detail to find ways to improve. My experience tells
my these statistics are very complementary to ERMU. Glenn Sundeen and his
department continue to do an outstanding job in constructing, operating and maintaining
an electrical system particularly in a fast growing area.
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