Loading...
3.0 ERMU MINUTES 06-10-2008ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION HELD AT UTILITIES CONFERENCE ROOM May 13, 2008 Members Present: Jerry Takle, President; John Dietz, Vice Chair; Jerry Gumphrey, 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 1. Call meetine to order May 13, 2008 President Jerry Takle called the May 13, 2008, meeting to order. 2. Consider Utilities Agenda Bryan Adams added an item to discuss under Other Business. John Dietz moved to approve the May 13, 2008, Utilities Agenda. Jerry Gumphrey seconded the motion. Motion carried 3-0. 3. Consider Consent Aeenda John Dietz had questions on the check register and financials, staff responded. Jerry Gumphrey moved to approve the Consent Agenda as follows: April Check Register April 17, 2008, Minutes Financial Reports John Dietz seconded the motion. Motion carried 3-0. 5.1 Staff Updates Bryan Adams recently attended a Minnesota Groundwater convention dealing with bio -diesel, ethanol production, climate change, and carbon sequestration which proved very interesting. Bryan showed a video of the interior walls of the wells. This camera is capable of rotating to check the status of all seams, joints, welds, screens, etc. for necessary repairs. Glenn Sundeen reported the tree trimming is finished for the season. Crews are going through the maps and documentinimaintenance issues and changes as needed. The takeover of Area 18 will take place on May 20 . Theresa Slominski said the new office employee, Michelle Anderson, started the beginning of May. Applications are being accepted for part-time summer help in the office. Vivian Schmidt's last day in the office will be May 30s`, she will be recognized for her service on May 20s' at 12:15 and invites the commissioners to come. The new stuffing machine is in service and is working well. Page 2 Regular meeting of the Elk River Municipal Utilities Commission May 13, 2008 David Berg reported hydrant repairs are in progress. Some of the hydrants were too low and needed to be raised. The Well #9 project is still in progress. The summer help is currently flushing hydrants. Almost all of the irrigation meters are installed and the 4s' Street water main project is nearing completion. Troy Adams reported 14 security sales for the month of April. Underground locates have increased dramatically. Staff is preparing for the territory acquisition next week and will follow-up with meter upgrades. John Dietz questioned if the customers received any notification. Staff responded Connexus informs them and we send them a reminder along with our rates and special programs. 5.2 Review Country Crossings Water Consumption At the April 2008 Elk River Municipal Utilities Commission meeting, Jerry Olsen, representing Country Crossings Homeowners Association, expressed his concerns about the high cost of lawn sprinkling. He asked if someone from the utilities could attend their annual association meeting on April 28, 2008. Jerry Gumphrey and Bryan Adams attended the meeting along with about 30 association members. They were showed a power point presentation on Elk River Water Resources along with some water conservation measures. Their past history and usage were reviewed. 5.3 Review Transmission Facilities Assignment Agreement At the April 2008 Elk River Municipal Utilities Commission meeting, authorization was given to execute the Transmission Facility Assignment Agreement contingent upon approval of Connexus and Great River Energy. Jerry Takle and Bryan Adams talked with both Connexus and Great River Energy about this agreement. They indicated there was no conflict of interest nor does it create a hardship or undesired consequences. Great River Energy was very encouraged that we are taking advantage of this opportunity. An executed copy of the agreement along with explanation of operational control was reviewed. In the definition portion of this agreement, the defmition "City" will reflect Elk River Municipal Utilities. 5.4 Review Power Point on Energy Issues Bryan Adams showed a power point on energy issues and reducing usage. Statistics and comparisons of major countries were addressed. The United States is currently utilizing 25% of the world's oil. As China grows along with other countries, this percentage will be changing and availability and cost will become major issues. 5.5 Review Possible Incentives to Encourage ACH Payments Theresa Slominski conducted an informal survey of other utilities of similar size and larger and asked them what they did to offer ACH incentives to encourage customer participation. Strategies and viewpoints were discussed. Elk River Municipal Utilities ACH applications are on Page 3 Regular meeting of the Elk River Municipal Utilities Commission May 13, 2008 the back of the monthly bills of which approximately 30 new applications are received per month. As of last month there were 2,019 ACH customers out of approximately 9,400 total customers. The other procedure being used is an electronic payment submission with a company called VANCO. They work with the various bank bill pay systems sending those payments electronically instead of by check. There were 777 customers last month on this program versus the 675 we had at the beginning of the year. Staff recommends continuing with the procedures now being utilized. John Dietz asked if a one time offer for 30 days with incentive could be done. Jerry Gumpbrey asked if a time limit should be placed on the period of time the customer should remain on this program, staff replied it would be hard to track. Further discussion followed. John Dietz moved to offer a one-time 30 day ACH incentive with a $10 credit to be applied to their bill. Jerry Takle seconded the motion. Motion carried 3-0. 6.1 Review Contributions to Citv On an annual basis APPA conducts a survey addressing municipal utilities payments, and contributions to state and local governments. The 2007 survey, which reflects a median contribution of 5% electric operation revenues, was reviewed. The age of the current policy on file for donations, transfers, and contributions was addressed. John Dietz would like a current policy drifted for the contributions and donations. Discussion followed as to the proper distribution for usage at City parks. In the future all City of Elk River's non -revenue operating accounts will be donated. Lori Johnson stated the City was satisfied with the current financial contribution and understands the contributions should be for non -revenue generating accounts only. John Dietz indicated he contacted the county assessor to verify how much tax the Elk River Municipal Utilities would pay if it was a private company. The tax assessor indicated it would pay slightly more, $920,000± versus the $841,000 contributed in 2007. John Dietz questioned if accelerated depreciation was used to make the contributions to the City look more favorable. Staff assured him that accelerated depreciation is not used. Jerry Gumphrey moved to authorize the donated electricity verbiage to include non -revenue generating City accounts, and to draft a current policy for approval at the next regularly scheduled Elk River Municipal Utilities meeting. John Dietz seconded the motion. Motion carried 3-0. 6.2 Review Cash Flow Proiections At the April 2008 Elk River Municipal Utilities Commission meeting, the auditors presented the results of their annual utility audit. One of their comments was that staff continues the cash flow studies which project future revenues and expenses to ensure adequate financial resources are available to cavy on business. The Springstad cash flow studies for both the electric and water departments were reviewed. These studies are updated twice annually, once after the audit and again during the budgeting process. The updated studies are consistent with past studies and are on track to achieve the desired cash reserves. Page 4 Regular meeting of the Elk River Municipal Utilities Commission May 13, 2008 Bryan Adams mentioned that the water department will be challenged in the future to manage the cash flow related to the City's water main replacement schedule. John Dietz said he was pleased with the joint ventures with the City when upgrading streets to also replace old water and sewer mains. Staff will keep appraised of the upcoming street improvement projects for budgeting purposes. 6.3 Review 2007 Water Confidence Report The 1996 amendment to the safe drinking water act required all community water systems to deliver an annual water quality report to their customers. The goal of the consumer confidence report is to provide information to customers about their drinking water without confusing or alarming them. Also this serves to advance customer understanding of drinking water, and heighten awareness of the need to protect water resources. The 2007 Water Confidence Report was reviewed. This report will be mailed out separately in May of 2008 and also placed on the web site. Other Business Jerry Takle informed the commission that John Dietz would like to be appointed to the Investment Committee for Elk River Municipal Utilities. Jerry Takle moved to appoint John Dietz to the Investment Committee. Jerry Gumphrey seconded the motion. Motion carried 3-0. The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday, June 10, 2008. President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities Commission at 5:35 p.m.