3. ERMU MINUTES 01-15-2008ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
December 11, 2007
Members Present: Jerry Takle, President; Jerry Gumphrey, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent;
Theresa Slominski, Finance Director/Office Manager;
Troy Adams, Engineering Manager; Judy McSpadden, Recording Clerk
Others Present: Lori Johnson, City Administrator;
Robert McCartney, representing United Methodist Church
1. Call meeting to order December 11, 2007
President Jerry Takle called the December 11, 2007, meeting to order.
2. Consider Utilities Agenda
James Tralle moved to approve the December 11, 2007, Utilities Agenda. Jerry
Gumphrey seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
November Check Register
November 13, 2007, Minutes
Financial Reports
Jerry Gumphrey seconded the motion. Motion carried 3-0.
For courtesy to Robert McCartney 6.3 was handled first.
6.3 Review United Methodist Church — Abandoned Water Service
The United Methodist Church is in the process of expanding their facilities and parking
area. They have recently demolished a home adjacent to their property. The new policy
regarding abandoned water services has become a concern for United Methodist Church.
Robert McCartney, Elk River Municipal Utilities previous Water Superintendent, now retired,
was present to represent the church and their concerns. Robert McCartney stated that the
water lines are fairly new due to the 4s' Street water main replacement project a few years ago,
and that all the lots have copper services. The church is asking forgiveness of the per lot water
abandonment fee. Discussion followed regarding the fixture of the church and their building
plans. James Tralle asked if the church would accept paying one fee with an agreement that if
the fee was utilized for repair another deposit would be requested. Robert McCartney felt that
would be fair but would bring it to the church for approval. The concern for setting future
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Regular meeting of the Elk River Municipal Utilities Commission
December 11, 2007
precedence was discussed. As long as the church is a non-profit entity this was acceptable
however, if the church becomes for profit this agreement would be revisited.
James Tralle moved to charge United Methodist Church, as long as they are non-profit, one
$2500 Abandoned Water Service Repair fee along with an agreement if the fee is used for
repair, another fee would be required. Jerry Gumphrey seconded the motion. Motion carried
3-0.
5.1 Staff Updates
Bryan Adams stated the construction of Well #9 is on schedule. The PCB building by the
West Substation is near completion. There have been several foreclosures recently that affect
collections. The City of Otsego is drilling a new well and the well contractor asked if Elk
River Municipal Utilities would want the sand from the site. The grade at the plant was raised
to accommodate storage of material. The well contractor brought in more sand than was
anticipated and caused some problems with the DNR and City ordinances. Appropriate steps
are being taken to satisfy the DNR and City of Elk River requirements.
Troy Adams updated on the progress of the Waco Substation. The transformer should be
energized by the end of next week and Glenn Sundeen will be switching some loads on the
substation for testing. There were 11 security sales for the month of November.
Theresa Slominski informed of year end preparation, and the rise of foreclosures is
becoming a concern. Staff is getting as much information as possible for contacting the
responsible party of the foreclosed property.
David Berg reported the water department is shutting down some of the wells for
maintenance. The irrigation meters are being collected and tested, with additional information
requested for contact name and numbers when problems arise.
Glenn Sundeen updated the current projects. There will be three crews starting the tree
trimming for 2007-2008 season.
Lori Johnson informed the Commission of the upcoming GRE Peaking Plant public
meeting scheduled for Thursday, December 20, 2007, at 7:00 p.m. held at City Hall. There
were only 98 homes built in 2007 compared to 300+ in previous years, and they foresee less
next year.
5.2 Review & Consider 2008 Utility Rate Changes
At the November 13, 2007, Elk River Municipal Utilities commission meeting, the 2008
budget was adopted. Great River Energy adopted the electric rate as presented at the
November commission meeting. The 2008 proposed fees and rate schedules were reviewed.
Water fees were discussed in detail. Jerry Gumpbrey suggests implementing a third tier water
rate for excessive users. Staff will look into this and return with a recommendation.
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Regular meeting of the Elk River Municipal Utilities Commission
December 11, 2007
James Tralle moved to approve the Elk River Municipal Utilities 2008 fee and rates schedule
with the exception of the water rate to be revisited at a later date. Jerry Gumphrey seconded
the motion. Motion carried 3-0.
5.3 Review & Consider 2008 Dispersed Generation Rate Chance
The dispersed generation program has been offered for a number of years to our demand
customers who have on site generation or the ability to curtail load during times of peak load.
Because our demand rate is higher than our competition, we have offered this program as a
way for the participating customers to reduce their energy costs. The two large data centers
will be eligible for this program and it is in our interest to get them to participate. The
proposed dispersed generation program description, agreement, and saving calculations were
reviewed.
Jerry Takle moved to approve the Dispersed Generation rate and agreement as presented.
James Tralle seconded the motion. Motion carried 3-0.
6.1 Review & Consider Refunding Water Bonds
The City of Elk River's bond rating went up so their interest rate is lower. Staff
recommends refunding two water bonds which would save the water fund over $90,000.
These bonds are Water Revenue Bonds, Series 1998B and Series 2001 A.
James Tralle moved to approve the sale of G.O. Water Revenue Refunding Bonds, Series
2008A. Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.2 Review Position Description for Part-time Accountant
The 2008 Elk River Municipal Utilities budget contains an addition of a.5 FTE (full time
equivalent) accountant. The position description, evaluation form, salary, and comparable
worth impact were discussed. James Tralle asked Theresa if 20 hours a week would be
enough or if this position should be full time. Theresa responded that the 20 hours a week
would be sufficient for now.
Jerry Gumphrey moved to approve hiring a .5 FTE accountant. James Tralle seconded the
motion. Motion carried 3-0.
6.4 Review 4'h Quarter Write-offs
Third and fourth quarter write-off list was presented. Items are written off due to moving
out and unable to locate, refusal to pay, bankruptcy, or general cleanup of small amounts.
They are written off our system and turned over to Advantage Collection Agency to fiurther
pursue. The collection agency's success rate is about 21 %.
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Regular meeting of the Elk River Municipal Utilities Commission
December 11, 2007
James Tralle moved to approve the June through October 2007 write-offs as presented,
totaling $25,643.83. Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.5 Update Midwest Municipal Transmission Group Activities (verbal)
Bryan Adams updated the commission on the CAPX2020 progress and out participation
in MMTG and CMMPA. Currently the transmission line project (Brookings, SD to the Twin
Cities) is in the Certificate of need process. Project to date is on schedule with construction to
start in 2010 with service in 2012. CMMPA is being declared a transmission owning member
with its assets registered with MISO. Revenues will start being received by CMMPA in
March to April 2008 time frame. Elk River Municipal Utilities would start receiving revenues
in the 2012 time frame, upon the completion of the transmission line from Brookings, SD to
the Twin Cities.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, January 15, 2008.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:35 p.m.
espectfull Subs
Judy McSpad
Recording Clerrkkk
an Adams
eneral Manager
Fees Schedule ERMU 2007
Elk River Municipal Utilities Proposed 2008 Rate & Fees Schedule
A
=13
C
D E
_ _
Current
Proposed
Residential Electric Connection Developer
$
420.00__
$
420.00
(Per Unit If City Water & Sewer)
idential Electric Connection Develo er
$
520.00
$
520.00
(Per Unit If not Cit Water & Sewer)
Residential Electric Connection Builder
$
800.00
$
800.00
Per Unit
Commercial & Industrial Electric Connection
50%
50%
(50% of Utilities cost) -Deposit to be aid up front
Street Edits & Security Lights
Our Cost
Wood Pole w/6' Arm (existing area only)
950.00
$ 865.54
30' Decorative Pole w/6' Arm
_$
$
__966_6_o_-$ _.
1,650.00
$
1,800.00
_
$1,714.90
23' Decorative Pole wrrraditionaire Lamp
$
1,400.00
$
1,450.00
$1,340.30
Residential Water Connection
$
2,000.00
$
2,000.00
per unit (300 pd b developer, 1700 paid by final customer)
Commercial Water Connection
$
2,000.00
$
2,000.00
per WAC unit
ervice Repair
$
2,500.00
$
2,500.00
eters - (Commercial 1 per bid
Our Cost for 2007
- Residential
$
240.00
$
240.00
$ 221.29
M7A
$
270.00
$
270.00
$ 258.76
$
320.00
$
320.00
$ 308.04
isc
$
570.00
$
570.00$
543.33
urbo - Irri ation onl
$
860.00
$
860.00
$ 837.87
$
740.00
$
740.00
$ 716.82
2" Turbo
$
940.00
$
940.00
$ 877.32
3" Turbo
$
1,050.00
$
1,050.00
$ 992.83
2" Compound
$
1,900.00
$
1,900.00
$1,817.33
3"Compound
$
2,250.00
$
2,250.00
$2,146.50
NSF Fee
$
20.00
$
20.00
Disconnect Fee - Residential Daytime
$
50.00
$
50.00 Daytime
Fvp.ninn
$
100.00
$
100.00 Evenin
u .connect Fee - 3 Phase Daytime
$
150.00
$
150.00 Daytime
Evening
$
350.00
$
350.00 -venin
Red Tag Handling Fee
$
20.00
$
20.00
Electric -Residential
Basic Monthly Charge
$
7.50
$
7.50 per month Electric Rate Increase 7.2%
May - Sept usage
$
0.09397 $
0.10000 per KWh
Oct - April usage
$
0.07877 $
0.08480
er KWh
Offpeak Energy Storage
$
0.041 $
0.0420 KWh per month
Offpeak Dual Fuel
$
0.043 $
0.0440 KWh per month
Cycled AC
$
6.00 $
8.00 $8/month for 5 summer months
Wind Power
$
1.90 $
1.90 100
KW Blocks
Dispurse Generation
See Attached
Electric - Commercial/Industrial
Non -Demand Basic Monthly
$
16.00 $
16.00 per
month
Non -Demand May - Sept usage
$
0.09062 $
0.09732 per KWh
Non -Demand Oct - April usage
$
0.06872 $
0.07542 er KWh
Demand Basic Monthly
$
50.00 $
50.00 per month
Demand Energy Char e
$
0.0422 $
0.04542 per KWh
Demand May - Sept usage
$
13.78 1 $
14.98 er KW
Demand Oct - April usage
$
9.78 $
10.60 1 per KW
Fees Schedule ERMU 2007
Fees Schedule ERMU 2007
A
B
C
D E . ...................
Current
Proposed
_
t
Street Lights
_
10_OW HPS
$
18.60
$
18.80
monthly
150W_HPS
$
20.35
$
20.60
200W HPS
$
22.63
$
23.00
"
250W HPS
$
24.06
$
24.50
"
400W HPS$
29.26
$
30.10
_
100W -M _ Existing Only
$
17.76
$
17.95
"
175W MV Existing Only
$
19.13
$
19.50
"
250W MV_ Existing Only
$
22.95
$
23.40
"
400W MV Existing Only _
1000W MV ExistingOnly
$
$
28.41
47.92
$
$
50.00
29.20Imonthlyy175W
Security Lights - Overhead _
100W MV ExistingOnly _
MV ExistingOnly
$
$
8.22
8.53
$
$
8.40
8.90
250W MV Existin Only
$
12.35
$
12.8040OW
MV Existing Onl
$
17.86
$
18.70
1000W MV Existing Only
$
37.63
$
39.70
"
100W HPS
$
8.00
$
8.20
"
150W HPS
$
9.75
$
10.00
250W HPS
$
13.46
$
13.90
400W HPS
$
18.66
$
19.50
"
Security Lights - Underground
100W MV Existing Only
$
9.01
$
9.20
monthly
175W MV Existing Only
$
10.07
$
10.40
"
250W MV Existing Only
$
14.20
$
14.70
"
400W MV Existing Only
$
19.82
$
20.60
"
1000W MV Existing Only
$
39.75
$
41.80
"
100W HPS
$
9.86
$
10.10
-
150W HPS
$
11.61
$
11.90
"
250W HPS
$
15.32
$
15.80
"
400W HPS
$
20.51
$
21.30
"
Water
Basic Monthly Charge - Residential
Senior Citizen Monthly Charge
Cost per 1000 Gallons 1st Step Rate
$
$
$
6.50
5.50
1.40
$
$
$
6.50
5.50
1.50
per month Water Rate Increase 6%
(upon application)
1 per 1000 gallons
Cost per 1000 Gallons 2nd Step Rate
Irrigation Meter
$
$
3.25
12.00
$
$
3.50
17.00
1 per 1000 gallons
1 Chan a $17 installation & removal fee to monthly fee
Water Salesman Bulk water)
$
$
5.00
3.25
$
$
5.00
3.50
Deposit
per 1000
allons
Hydrant Rental
$
150.00
$
150.00
er month
Plus cost of water
$
3.25
$
3.50
er 1000
allons
Security System Monitoring
Security System Service Calls
Medical Alerts
$
$
$
17.00
65.00
22.00
$
$
$
18.75
65.00
23.75
Monthly
Our Cost
$ 60.82
Alarm Net Cell Phone
$
20.00
$
21.75
Fire System
$
375.00
$
399.00
Annually
Burglar & Fire
$
435.00
$
460.00
Annuall
Billable charges
Cost of Material plus
Labor fees plus
Vehicle / Equipment rates - Line Truck
Vehicle / Equipment rates - Pick-up Truck
I
15%
55%
$40/hr
$20/hr
15%
55%
$40/hr
$20/hr
Fees Schedule ERMU 2007
EXTRACT OF MINUTES OF A MEETING OF THE
MUNICIPAL UTILITIES COMMISSION
OF THE CITY OF ELK RIVER, MINNESOTA
HELD: December 11, 2007
Pursuant to due call and notice thereof, a regular or special meeting of the Municipal
Utilities Commission of the City of Elk River, Minnesota, was duly held at the office of the
Municipal Utilities Commission in the City of Elk River, Minnesota on December 11, 2007, at
4:00 o'clock P.M.
The following members were present: James Tralle, Jerome Takle, Jerry Gumphrey
and the following were absent: none
Member _James Tralle_ introduced the following resolution and moved its adoption:
RESOLUTION CONCURRING IN THE ACTION OF THE CITY COUNCIL OF THE CITY
OF ELK RIVER, MINNESOTA, IN PROVIDING FOR THE SALE OF $3,590,000 GENERAL
OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 2008A
BE IT RESOLVED by the Board of Commissioners of the Municipal Utilities
Commission of the City of Elk River, Minnesota (the "Commission"), as follows:
Section 1. Recitals. The City of Elk River, Minnesota (the "City") owns and operates
a municipal water system (the "System") which is under the jurisdiction of the Municipal
Utilities Commission of the City of Elk River, Minnesota (the "Commission"). On the date
hereof, the City Council adopted a resolution providing for the sale of $3,590,000 General
Obligation Water Revenue Refunding Bonds, Series 2008A (the "Bonds"). The City Council
will, at a later date, adopt another resolution which will provide for the issuance of the Bonds.
Proceeds of the Bonds will be used, pursuant to a current refunding, to refund $395,000
aggregate principal amount of the City's General Obligation Water Revenue Bonds, Series
1998B, dated December 1, 1998, and, pursuant to a crossover refunding, to refund $3,590,000
aggregate principal amount of the City's General Obligation Water Revenue Bonds, Series
2001A, dated October 1, 2001 (together, the "Refunded Bonds"). Proceeds of the Refunded
Bonds were used to finance improvements to the System.
Section 2. Refunding Purpose. The refunding of the Refunded Bonds, is consistent
with covenants made with the holders thereof, and is necessary and desirable for the reduction of
debt service cost to the City and thus to the Commission. Proceeds of the Bonds shall be
expended on costs relating to the refunding of the Refunded Bonds and shall not be expended on
or devoted to any other uses.
Section 3. System Revenues Pledged. The Commission hereby acknowledges that
the Refunded Bonds are and that the Bonds will be payable from the net revenues of the System.
2I14205vI
Section 4. Declaration. The Board hereby finds, determines and declares that the
issuance of the Bonds is necessary and in the best interests of the Commission and concurs in the
resolutions of the City Council providing for the issuance and sale of the Bonds. The
Commission hereby joins in and adopts said resolutions, including all the covenants and
agreements therein contained, with the same force and effect as if said resolutions had been
adopted by the Board.
The motion for the adoption of the foregoing resolution was seconded by member
_Jerry Gumphrey_ and upon a vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same: none
Whereupon the resolution was declared duly passed and adopted.
zu4zosvi