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INFORMATION #1 10-16-2006 ELK RIVER MUNICIPAL UTILITIES REGULAR IVIEETING OF THE UTILITIES CO lVIlVllSSI 0 N October 10, 2006 Melnbers Presellt: Jell)' Takle, Presidellt; JOl111 Dietz, Vice Chair; JaJ.l1es Tralle, Trustee StaffPresellt: BrYa11 Adams, Gelleral MaIlager; Glel1l1 SlUldeell, Lllle SUperllltelldellt; David Berg, Water SUperllltelldellt; Theresa SIOllUnski, Finance Director/Office Manager; Troy Adanls, Engllleerlllg Manager; Judy McSpadden, Recording Clerk 1. Call meetin2 to order October 1011 2006 Presidellt Jerry Takle called tile October 10, 2006, l11eetulg to order. 2. Consider Utilities A2enda Bryan Adall1S added two itelllS for discussion ul1der otl1er bllsiness. J all1eS Tralle 1110ved to approve the October 10, 2006, Utilities Agenda as amended. Jo1m Dietz seconded the motion. Moti011 carried 3-0. 3. Consider Consent A1!enda JOml Dietz qllestiol1ed tIle overtlll1e 1101U.S. Glelul Sluldee11 responded tl1at the cre\vs jllst fulished SW11111er 110urs \vl1icl1 \vere lID1e 110l1r days. JOl111 Dietz l1ad questio11S on the fulal.1cials, staff responded. Janles Tralle 11loved to approve the COllsellt Agenda as follows: Septell1ber Clleck Register Septelllber20,2006,~llnrtes FUlallCials JOl111 Dietz secol1ded tIle 1110tio11. Moti011 caIlied 3-0. 5.1 Staff Up-dates Bryan AdalTIS app1ised tile COllll1llssio11 011 tIle status of conmlents regarding lllllltiple jlU1ction boxes and or transformers in yards. There will be a future meeting with other utilities SUCll as telepllone and cable TV to discuss options on aesthetics. Elk River Municipal Utilities 1las received State approval 011 tile cOlllparable \VOrtll progranl and tIle American De11tal Associatioll sellt a celiificate of appreciatioll for 50 years of\vater flu01idation. Glel1l1 Slmdeell11pdated tIle C1UTel1t electrical projects alld rebuilds. TIle 14 Statioll is COll1plete alld Bank 2 is ready to be energized. Recently tl1ere "vas all1ll1expected outage on COlUlty Road 13 tl1at had over 100 customers vvitl101lt po\ver. A cross-ann broke 011 tIle feeder lille and for safety reaS011S GlelTIl lllade the call to dislupt power. Troy AdalTIS said tIle locator that 11as beell on l11edicalleave is 110W back nlll time. Troy stated tIle 11ew oil filled switches that \vere pllfchased will be atl asset. David Berg reported 2411ew lllquiries \vllich resulted in 12 sales of security systems. John Dietz asked if tile Utilities 11ave beell advertising tlleir 1110nit01TIlg fees, staff responded t11at it is 011 tIle Seclmty adveliisement snIffers t11at are sellt vvith tile bills. Tile \vater pressllre on MaUl Street & Jacksol1 "vas lovvered to acconul1odate new COI1Shuctiol1, atld 11as since beell rehu1led to 1101111a1 presslrre. Staff11as beell busy \vitll \vell and valve nlaintel1ance. Page 2 Regular lneetlllg of tIle Elk River Mwricipal Utilities COI1Ulussion October 10, 2006 Tl1eresa Slonllnski gave all update 011 the IRS isslle. TIle recel1t Power Managers User Grollp (pMUG) conferellce was \'ery uliormative. SI1e gave a "lleads up" that some new procedures aJ.ld progra111S will be unplemented to allo\v collectiol1 of social security numbers. A custoll1er privacy policy llild llltelnal policy will be presented at the next llleeting. James Tralle asked about the security measw.es tl1at would be in place for the se11sitive information. Staff responded it would be locked up and only available to enlployees that would be assigned to \vork \vitIl this lle\V isslle. Jerry Takle asked 110W tile website is gOlllg and Theresa replied tl1at s11e Ilopes it \vill be ready in a few weeks. 5.2 Update Ne\v Data Center Facilitv The disCllssio11S \vitl1 United HealtIl Group COl1tlllue to nlove forward. TIle pIall is to close 011 tIle property in JaIl11alY of2007 aJ.ld start COl1shuction III Marcil of2007 witll COll1pIetion plaI11led for Jlllle of2008. TIley \vilI start taking po\ver for testlllg in January 2008. The initial service agree11lellt was revie\ved along \vitIl t11e drawing and location of tile new proposed feeder. Estimated cost of the ne\v feeder is $950,000 and substatio11 is estul1ated to cost $2,130,000. We are solicitulg bids for tIle 69kv traJ.lsfolmers needed for tIle 11ew substation 011 Waco. 5.3 Re\rie,y GRE Wholesale Electric Rate Tile recelltly conlpleted electric retail rate study by R.W. Beck assmned a wllolesale rate lllcrease of 6.90/0. In recellt discussioll \vitll COlmexlls and GRE, tIle rate increase is more in tIle 4.9% raJ.lge. AltllOllgll tIle details of the lllcrease are still unlalown, tIns 2% difference in liritial versus projected \vllolesale rate is approxi111ately a $220,000 swing. In 2008 GRE is projected to sinlplify tIle rate structure by going back to Olle rate instead of a base 8l1d grOwtll rate bllt ,viII be USUlg a C1itical Peak priClllg scheme. Discussion followed regarding the 2008 GRE proposed rate shuchrre. 5.4 Re\rie\v Proposed 2007 Health Insurance Costs Staffhas Inet \vitl1 Jodi Berge, Ollr accoUllt execlltive \vitll David Martill Agellcy, regardulg Elk River Municipal Utilities 2007 11ealtl1 lllsurance rates. The relle\val is a 7.4% increase for 2007. The illS1lraI1Ce task group that met last year willlneet again to revie\v the insurance plans a11d discuss alternative plans for tile future. 5.5 Revie,y 2007 Expense Bud2et Ollf COllservation Inlprovenle11t Progrcul1 (CIP) is reqllired to spend 1.5% of gross electric revenlles or $232,500 for 2007. TIle proposed 2007 eIP blldget totallllg $451,760 ofwhicl1 GRE is contriblltlllg $351,750 llild we are COlltributlllg $100,010 was revie\ved. TIle proposed 2007 electric 8l1d \vater expense budgets were also reviewed. James TralIe qllestioned if neigllboring cOllununities \vere raising tIleir rates like us. Bryan Adanls replied that tIle Elk River's hikes lnay be slightly lligller due to the growtl1 of tIle COllUlllUUty. 6.1 Revie,v & Consider Bid Tabulation for Water Main Installation On October 9, 2006, bids were received for tIle Guardian A11geIs Water Main Project. A dra\ving reflecting the scope of this project was reviewed. Guardian Angels will be rei111bllfslllg tIle Elk River Mlullcipal Utilities for tlleir pOltio11 oft11e costs. StaffreCol1U11el1ds Page 3 Regular l11eeting of the Elk River MUlllcipal Utilities COllUIllssion October 10, 2006 a\Vardulg tIle GllardiaIl Angels Water Main project to EBI Drillulg Inc., the lowest respollsive bidder for tIle base bid, a11d tIle altel1late bid if Guardian A11gels elects to utilize tillS altelllate. Jall1eS Tralle 11l0ved to approve EBI Drilllllg lilC. be a\varded tIle GuardiaJ.l Atlgels WatennaUl project. JOIUl Dietz seconded tile illation. Motion carried 3-0. Other Business A petitioll reqllesting a nnd block street lig11t be lllstalled 011 S11utll Street has beell signed by residents. James Tralle 1110ved to approve lllstallatioll of a 11Ud block street light 011 Slmth Street. Jolm Dietz secol1ded the Illation. Motioll cmued 3-0. A 110tice was sellt to property owners for unpaid water bills. Only tl1ree aCcolmts are still nnpaid. A list was presented to the connllssion for their approval to l1ave tile unpaid water charges assessed on tlleir property taxes, aJ.ld if approved, this will be taken to tile City Council for tl1eir approval. It \vas questioned iftllis was all ofthenl and staff responded that the assessments \vere for deliIlquellt accounts tl1at l1ad a CllITent property o\vner. For delinquent account Ilolders \Vl10 l1ave llloved \ve have no reC01ITSe tlrrOllgh assessmellt. James Tralle asked staff to check iftIlere is any recourse \ve call take agaulst the OWller of the rental property. Jall1eS Tralle llloved to approve the proposed Ullpaid water list for tax asseSSlnel1t. JOml Dietz secol1ded tIle Illation. Motion carried 3-0. J el1Y Takle cOllllnented Ol11l0W llllpOrtaJ1t tlle schoolulg and trainillg is for en1ployees. This gives thenl a cllaJ.lce to COllilll1uucate ,vitl1 other people aJ.ld hear their experiences. The 11ext regtllarly scl1edllled Ineetlllg of tIle Elk River Mlullcipal Utilities COl1mussion \vill be Tuesday, November 14,2006. Presidellt Jerry Takle adjolmled tIle regular llleetillg of the Elk River Municipal Utilities COll11Tllssion at 5:15 p.m. Respectfully submitted, Jlldy McSpaddell Recording Clerk