12-11-2007 ERMU MINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMNIISSION
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 4t' 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 future 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 Gumphrey 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 Change
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 2001A.
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 41b 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 further
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 Ell<- River Municipal Utilities
Commission at 5:35 p.m.
Judy cSpad►-
Recording
Vwan Adams
Manager