3.0. ERMUSR 01-09-2007 ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
December 12,2006
Members Present: Jerry Talde,President;John Dietz,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
Other Present: Lori Johnson,City Administrator
1. Call meeting to order December 12,2006
President Jerry Talde called the December 12,2006,meeting to order.
2. Consider Utilities Agenda
James Tralle moved to approve the December 12,2006,Utilities Agenda. John Dietz
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
John Dietz questioned the difference between the budgeted amount versus the actual cost
to date in the water department. Staff will look into this. John Dietz moved to approve the
Consent Agenda as follows:
November Check Register
November 21,2006, Special Meeting Minutes
Financials
James Tralle seconded the motion. Motion carried 3-0.
5.1 Staff Up-dates
Bryan Adams informed the Commissioners that the Briggs property has been sold. Troy
Adams will be taking over the meter department after the first of the year which will allow
David Berg to focus more on the water department. A fuse coordination study is being
updated to correct issues and avoid future outages like the recent one in Otsego. Connexus is
charging a fee for upgrading meters to radio read. We do this at our cost to simplify the meter
reading process. Discussion followed regarding the positive benefits of this metering system.
Glenn Sundeen reported the newly placed underground in Otsego is now energized and
staff will be removing the overhead system. Next week the Target Data Center will be online.
There were several small outages this past month mostly due to squirrels and some secondary
underground wire failures.
Troy Adams said the locating has slowed down and map updates are being done. A new
color copier/printer/scanner will be installed at the plant which will help with the map book
updates.
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Regular meeting of the Elk River Municipal Utilities Commission
December 12,2006
David Berg reported there were 14 new security accounts last month with many calls
interested in our lower monitoring rate. Staff continues to do well maintenance and in January
they will be checking the filters in the Treatment Plants. In the past,we have had customers
call in regarding a water valve leaking inside their home. The customer owns the service from
the main to the home,however we are called out to shut their water off at the curb. As a
customer service we have fixed or replaced the leak ourselves at a minimal cost to the
customer. Do we want to continue this procedure and save the customer money or should we
have them contact a plumber? If something should go wrong when valve replacement is
done,we would be liable for damages. John Dietz asked if the MN League of Cities has a
form the homeowner could sign regarding this issue. Staff will look into this and revisit this
issue at a future meeting. John Dietz asked if the Gary Street water tower will need some type
of fencing or boundary because the new YMCA will be located close to this structure. David
Berg replied that he was more concerned with the chemical issue of the Well,which is located
on the same property. David Berg was instructed to keep in close contact in the City in the
developing process for the new YMCA.
Theresa Slominski informed the Commissioners that the position for Accounts Payable/
Payroll has been filled and Kimberly Sandstrom will be starting after the first of the year.
5.2 Review& Consider 2007 Utility Rate Change
At the November 14,2006 Elk River Municipal Utilities Commission meeting,the 2007
budget was adopted. In general,the retail increases are 6%for electric and 4.4%for water.
The rates and proposed changes were reviewed. James Tralle responded he would like to see
the 2nd tier rate of water usage raised. Bryan Adams voiced his concern regarding raising the
rate too much would cause the public to apply for private wells for irrigation purposes. John
asked if there could be a City ordinance regarding the private wells,Bryan responded the State
rules would pre-empt a City ordinance. James Tralle stated he would prefer the 2nd tier rate be
raised in smaller increments now instead of larger ones when the need arises.
Motion by James Tralle to raise the 2nd tier water rate from$3.00 to$3.50 per 1000 gallons.
Motion died for lack of second. John Dietz said he would approve$3.25 per 1000 gallons
instead. Motion by James Tralle to raise the 2nd tier water rate from$3.00 to $3.25 per 1000
gallons. John Dietz seconded the motion. Motion carried 3-0.
John Dietz asked how the customers are informed of the rate changes. Bryan responded that
there will be an ad in the Star News,also as a memo on the bills,and letters will be sent out to
the builders. John Dietz inquired on the number of NSF checks the Utilities receive. Theresa
Slominski responded that there were not many of them. James Tralle asked if the$20.00
charge was sufficient to cover our cost. Theresa Slominski replied that as of now the$20.00
NSF charge is sufficient.
Motion by John Dietz to approve the recommended rate change and shall be attached with the
minutes. James Tralle seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
December 12,2006
6.1 Review APPA 2005 Rate Comparisons
On an annual basis,American Public Power Association(APPA)completes an Electric
Rate Comparison. APPA's electric rate comparison for 2005 was reviewed. This information
is derived from the US Department of Energy form EIA 816,that all electric utilities file on an
annual basis. This comparison reflects USA and Minnesota electric utilities.
In the past,APPA's survey reflects the Elk River Municipal Utilities rates around the
average for residential and commercial customers and between the 3rd quartile and maximum
for the industrial class. This years' survey reflects the Elk River Municipal Utilities position
as between the 3rd quartile and maximum in all customer classes.
In 2005 and 2006,we increased our rates by less than our wholesale rate increase while
passing on even less of an increase to the demand(industrial)customers.
6.2 Review Tobacco Cessation Program
The tobacco cessation policy is in development and as soon as it is adopted by the City
Council it will be presented to the Utilities Commission for approval. James Tralle asked
what the current smoking policy was. Glenn Sundeen responded that right now it only applies
to buildings,and in the truck only if the working partner objects. John Dietz said the City has
a policy of no smoking or chewing in company vehicles. John Dietz would like the Utilities to
adopt the same policy. Lori Johnson said the City policy reads no tobacco in company
vehicles. Staff will review the policy and present it at a future meeting.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday,January 9,2006.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:00 p.m.
ec ly s mitt
Judy Mc padde
Recording Clerk