02-12-1997 ERMU MIN REGULAR MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICES
FEBRUARY 12 , 1997
Members Present : President, John Dietz; Vice Chairman, George
Zabee; Trustee, James Tralle
Others Present : Bryan Adams, General Manager; Glenn Sundeen,
Line Superintendent; Robert McCartney, Water Superintendent;
Patricia Hemza, Office Manager; Joni Astrup, Elk River Star News;
Ron Bratlie, Elk River School District; Patrick Klaers, City
Manager
1 . Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the
Elk River Utilities Commission was called to order at
3 :30 P.M. by President Dietz .
2 . Consider Utilities Agenda
Bryan Adams requested the addition of discussion of
brochures .
Mr. Tralle moved to add discussion of brochures as 6 . 7
of the Agenda, and to otherwise approve the 1-12-97
Agenda as presented. Mr. Zabee seconded the motion. Motion
carried 3-0 .
3 . Mr. Zabee moved to approve the Consent Agenda as follows :
3 . 01-14-97 Minutes
01-29-97 Minutes
4 . Check Register
5 . 1 Review and consider Ice Arena Electric Rate
Mr. Adams presented the Commission with information
detailing the history of the Special Electric Rates
for the Ice Arenas, and offered options for consideration
and discussion.
Mr. Tralle added a further option for discussion, proposing
to use a declining scale, starting the first year at
$6, 000 . 00, with a reduction of $500 . 00 for each of the
following four years .
Mr. Dietz proposed a donation of $6, 000 . 00 for the first
year, with re-evaluations of the KWH usage each year and
to adjust accordingly. This would provide time to develop a
year' s history of electrical usage for the new facility.
Regular meeting of the Elk River Utilities Commission
February 12, 1997
Page 2
Mr. Zabee moved to donate $6, 000 . 00 the first year, and to
re-evaluate the KWH usage in February, 1998, as the first
of a committed five year reduction, with the intent of
assisting a Community Project . Mr. Tralle seconded the
motion. Motion carried 3-0 .
5 . 2 Adopt Electric Rates
The Electrical Rate Study final report, by R.W.Beck was
presented and discussed. Several items were detailed, such
as the reduction in the number of rates, implementation,
results, and presentation of the rate change .
Mr. Robert Bratlie, Elk River School District, appeared to
voice his concerns with the proposed rate increase. He
stated that the budget has been finalized for the year, and
he is afraid that it will be under-stated.
Mr. Adams stressed that conservation should be encouraged.
Mr. Tralle moved to adopt electric rates as presented,
implementing them with the February billing for January
usage. Mr. Zabee seconded the motion. Motion carried 3-0 .
(A copy of the new rates are attached to these minutes . )
5 . 3 Adopt Water Rates
The final Water Study report from MSA was presented and
discussed. Mr. Tralle questioned the senior citizen rate,
which could be considered discriminatory, and it was
decided to re-visit the issue in one year. Water
conservation and reviewal of the DNR' s views were
reviewed, in regard to the present descending graduated
scale the Elk River Municipal Utilities now uses .
A sprinkling ban was discussed with no conclusions or
action being taken at this time.
Mr. Ron Bratlie, Elk River School District voiced his
concerns with the proposed water rate increase .
Mr. Tralle moved to adopt the Table 2 Water Rates effective
with the February billing for January consumption. Mr.
Zabee seconded the motion. Motion carried 3-0 .
(A copy of the new rates are attached to these minutes . )
Regular meeting of the Elk River Utilities Commission
February 12, 1997
Page 3
Mr. Dietz moved to increase the WAC (Water Access
Charges) to $1, 200 . 00 immediately, and to review the
charges in December, 1997 . Mr. Zabee seconded the
motion. Motion carried 3-0 .
6 . 1 Review and consider Underground Cable Bids
Bids for the purchase of Underground Cable were presented
as tabulated, and analyzed. Mr. Adams advised the
Commission that delivery would be phased, to ease the
cash flow impact .
Mr. Tralle moved to accept the low bid from Border States
for Underground Cable. Mr. Zabee seconded the motion.
Motion carried 3-0 .
6 . 2 Review and consider Pick-up Bids
The tabulation of bids for one 1/2 ton 4 X 4 Full Size
Pick-up Truck and for one Intermediate 4 X 4 Extended
Cap Pick-up Truck were presented and discussed.
Mr. Zabee moved to accept the bid from Saxon Motors
for a 1/2 ton 4 X 4 Full-Size Chevrolet Pick-up truck.
Mr. Tralle seconded the motion. Motion carried 3-0 .
Mr. Tralle moved to accept the State Bid from Superior
Ford for an Intermediate 4 X 4 Extended Cab Pick-up
Truck, with a 4 . 0L engine option. Mr. Zabee seconded the
motion. Motion carried 3-0 .
6 .3 Review ERMU contributions to the City of Elk River
Mr. Adams presented detail of the 1996 Contribution to
the City of Elk River, including the 3% of Elk River
Customer Revenues, Street lights, traffic signals,
electricity donated and miscellaneous . The donation
amount for 1996 is $336, 000 . 00 .
Mr. Tralle moved to remove the cap on the amount of dollars
for the street light contribution, which was previously set
at $50, 000 . 00 . Mr. Dietz seconded the motion. Motion
carried 3-0 .
6 .4 Review Comparable Worth Study Proposal
The proposal from Hay Management Consultants for a
Comparable Worth Study was discussed.
Regular meeting of the Elk River Utilities Commission
February 12, 1997
Page 4
It was noted that the study could be completed in
no more than two months by this firm. Mr. Dietz noted
that he thought the proposal was more expensive than that
used by the City of Elk River. However, it was also noted
that their project took place over an extended period of
time, with dedicated staff time.
Mr. Zabee moved to accept the proposal from Hay Management
Consultants for the Comparable Worth Study in the
amount of $7, 800 . 00 . Mr. Tralle seconded the motion.
Motion carried 2-0 . Mr. Dietz voting nae, because he felt
that though the study is needed, it is too expensive.
6 . 5 Consider Meter Testing Policy
Mr. Adams presented the reasons for instituting a Meter
Testing Policy.
Mr. Tralle moved to ask for a $25 . 00 deposit upon request
for the removal and testing of their water or electric
meter prior to the removal and test, and if the meter
should be found accurate with plus or minus three percent
(3%) , the fee will be retained by the Utilities. If the
meter is in error, beyond these bounds the $25 . 00 fee will
be refunded to the customer and the bill would be adjusted
in the amount of the error for the past six month period.
Mr. Zabee moved to second the motion. Motion carried 3-0 .
6 . 6 Consider 1996 Charge Offs
Commission noted that the Charge off bad debts are very
low in comparison to the revenues billed. It was the
general concensus to have the President of the Commission
write a letter to Vivian Schmidt, in charge of collections,
to recognize her efforts .
Mr. Tralle moved to approve the Charge Offs for 1996 .
Mr. Zabee seconded the motion. Motion approved 3-0 .
6 . 7 Other Business -- Brochures
Mr. Adams presented a sample of some advertising materials
for Security Systems and Water Conservation. He advised
that customers need to be more informed about conservation
and safety matters, and that brochures of this kind will be
a good start .
Regular meeting of the Elk River Utilities Commission
February 12, 1997
Page 4
Mr. Tralle moved to approve the expenditure of $5, 300 . 00
for brochures . Mr. Zabee seconded the motion. Motion
carried 3-0 .
The next regular scheduled meeting of the Elk River Utilities
Commission will be March 11, 1997 at 3 :30 P.M.
Mr. Zabee moved to adjourn. Mr. Tralle seconded the motion.
Motion carried 3-0 .
The meeting of the Elk River Utilities Commission adjourned at
5 :20 P.M.
Respectfully submitted,
cR
Patricia Hemza
Office Manager
ELK RIVER MUNICIPAL UTILITIES
322 King Avenue
Elk River,Minnesota 55330
Phone(612)441-2020
Fax(612)441-8099
February 1997
Elk River Municipal Utilities, your electric and water utility provider, has not revisited the
cost of water utilities since 1984 and Electric utilities since 1990. Much has changed since
then for Elk River has grown dramatically and costs of providing these utilities has also
changed.
In an effort to stay current , Elk River Municipal Utilities has realigned the electric rates to
more accurately reflect the present cost of purchasing and providing electrical power.
This realignment also includes an approximate 4% over-all rate increase. The residential
and small businesses will experience an approximate 6% increase although the particular
cost change in your home , business, or industry may be more or less than this amount
depending upon your usage patterns.
The large growth in both water usage and facilities necessary to furnish and deliver water
is requiring Elk River Municipal Utilities to change the water rates. The average home will
see a$4 to $5 /month increase. Businesses and industry will obviously see a higher
increase depending upon usage.
If you have any questions, please feel free to call the utility business office or your utility
commissioners.
John Dietz President George Zabee Vice Chairperson
Jim Tralle Trustee Bryan Adams General Manager
Elk River Municipal Utilities
1997 Electric and Water Rate Schedules
Electric
Residential Summer Winter
Customer Charge $5.00 $5.00
First 400 KWh/Month $0.073 $0.073
Over 400 KWh/Month $0.073 $0.0585
Residential All Electric
Customer Charge $5.00 $5.00
First 400 KWh/Month $0.073 $0.073
Over 400 KWh/Month $0.073 $0.0585
Non-Demand Customer(Demand In KW less than 50 KW)
Customer Charge $9.50 $9.50
First 2500 KWh/Month $0.086 $0.086
Over 2500 KWh/Month $0.066 $0.066
Demand Customers(Demand in KW greater than 50 KW)
Customer Charge $28.00 $28.00
Energy Charge in KWh/Mo $0.0449 $0.0449
Demand Charge in KW/Mo $5.00 $5.00
Economic Development Incentive Rate(EDIR)
3 Year Rate for New Load Over 400 KW/Month
Customer Charge $28.00 $28.00
Energy Charge In KWh/Mo $.029 $.029
Demand Charge in KW $8.15 $8.15
Energy Storage in KWh/Month $0.031 $0.031
Duel Fuel in KWh/Month $0.034 $0.034
Air Conditioning in KWh/Month $0.034 $0.034
Water
Class Customer Charge/Month Cost/1000 Gallons
Residential $4.44 $1.11
Senior Citizen $3.44 $1.11
Commercial ' $6.89 $1.11
Commercial 1 $7.69 $1.11
Commercial 1 '/4 $8.39 $1.11
Commercial 1 '/s $9.14 $1.11
Commercial 2 $13.89 $1.11
Commercial 3 $24.89 $1.11
Commercial 4 $37.89 $1.11
Commercial 6 $59.89 $1.11
Commercial 8 $84.89 $1.11