INFORMATION #2 01-02-2007
ELK RIVER lVIUNICIP AL UTILITIES
REGULAR lVIEETING OF THE
UTILITIES COlYIMISSION
December 12, 2006
Me111bers Presellt: Jen)' Takle, Preside11t; Jo1m Dietz, Vice Chair; Janles Tral1e, Trustee
StaffPresellt: BrYllil AdaJ.l1S, General Manager; Glel1l1 SUlldeell, LUle Superulte11dent;
David Berg, Water Sllperll1tel1dent;
Tl1eresa Slolninski, Fil1illlce Director/Office MaJ.lager; Troy Adanls,
EllgiIleerlllg Manager; J tIdy McSpaddel1, Recordu1g Clerk
Otller Prese11t: Lori J 01111S011, City Adnlll1istrator
1. Call meetin2 to order December 12"1 2006
Presidel1t Jerry Takle called tile Dece1nber 12, 2006, Ineeting to order.
2. Consider Utilities A2enda
Jllil1es Tral1e 1110ved to approve tIle Dece111ber 12, 2006, Utilities Age11da. JOl111 Dietz
secol1ded tile 1110tiol1. Motio11 carried 3 -0.
3. Consider COllsent A2enda
JOl111 Dietz qllestiolled tIle difference bet\veell tIle blldgeted aIll01Ult versus the actllal cost
to date ill tIle \vater departll1ent. Staffwil1100k lllto this. JOhl1 Dietz 1110ved to approve the
COl1sellt Age11da as follovvs:
NO\TeI11ber CIleck Register
Novell1ber 21, 2006, Special Meetulg MU111tes
FU1ill1cials
Jllil1es Tralle secollded the 1110tioll. Motion carried 3-0.
5.1 Staff Up-dates
Bryatl Adan1s infoID1ed tIle COll111Ussiol1ers tl1at tIle Briggs property l1as been sold. Troy
Adanls \vilI be talmlg over the llleter deparhnent after tile first of the year wInch vvill allovv
David Berg to focus lTIOre 011 the "vater depmtment. A nlse coordination study is beulg
llpdated to COlTect issues and avoid future outages like tIle recent Olle in Otsego. COillleX1IS is
cl1argiI1g a fee for llpgradulg 111eters to radio read. vVe do tIns at our cost to Sll11pIify the nleter
readu1g process. DisCllssioll follovved regardi11g tIle positive bel1efits of tIns n1eternlg systeln.
GlelUl SlllldeeI1 reported tile 11e\vly placed llndergrolu1d ill Otsego is 110\V energized aJ.ld
staff\vill be rell1ovll1g tIle overl1ead systeIl1. Next week tIle Target Data CeIlter \vill be olwle.
Tllere \vere several 8111a11 olltages this past ll1011tll111ostly dlle to sqllllTels and SOl11e secoIldary
lllldergrolll1d vvire failllfes.
Troy AdalTIS said tile locatlllg Ilas slovved dO\V11 alld l11ap llpdates are being done. A l1e\V
color copier / printer / scanner will be installed at the plant whicll \vil111elp "vitIl the Illap book
updates.
Page 2
ReglIlar Ineetlllg of the Elk River Mlullcipal Utilities COllli1llssioll
Deceluber 12, 2006
David Berg reported tllere were 14 llevV secmity accomlts last ill01ltll witllll1any calls
illterested ill Olll" lovver lllOlutOling rate. Staff COlltllll1es to do vvellll1allltellar1ce alld in J atlllary
tIley vvill be checking the filters III tile Treatnlellt Plants. In tIle past, we l1ave had Cllstolners
call III regat~diI1g a water valve leakillg lllside tIleir home. TIle Cllstol11er OWllS the service frOIll
tIle Inain to the llome, Ilowever \ve are called out to Sllut their water off at the cllTb. As a
custolller service \ve llave fixed or replaced tile leak ollrselves at a lnirmllal cost to tile
custolller. Do \ve WaIlt to continue tins procedure illld save the Cllstonler illoney or should \ve
Ilave thell1 COlltact a pllunber? If SOl11etlllilg sllo111d go vvrong \Vl1en valve replacenlellt is
dOlle, vve WOllld be liable for darl1ages. J 01111 Dietz asked if the MN Leagtle of Cities Ilas a
f01111 tIle 11ol11eovvner could sign regardlllg this isslle. Staffvvilllook into this aJ.ld revisit tIns
isslle at a future Ineetulg. J 01111 Dietz asked if the Gary Street \vater tovver \vill need some type
offellclllg or boundalY becallse tIle lle\V YMCA \vill be located close to this stnlchll"e. David
Berg replied tIlat Ile was more cOllce111ed \VitIl tIle cl1emical issue oft11e Well, which is located
011 the same property. David Berg \vas instructed to keep in close contact in the City in tIle
developillg process for tIle ne\v YMCA.
Tlleresa Slominski iruonned tIle C011ll1llSsiollers that tIle position for ACCOl111ts Payable /
PayrollIlas beell filled and KiIllberly S3.1ldstroln \vill be Startlllg after the first of tIle year.
5.2 Revie\" & Consider 2007 Utility Rate Chan2e
At tile Nove11lber 14, 2006 Elk River Mmucipal Utilities Conmlissioll111eetulg, tIle 2007
budget was adopted. hl gelleral, the retail increases are 60/0 for electric and 4.4% for water.
Tile rates illld proposed chaJlges \vere reviewed. James Tralle respol1ded Ile \vould like to see
tile 2nd tier rate of water llsage raised. BrYaIl Ad3111S voiced his COllce111 regardillg raislllg tIle
rate too Il1uch WOllld calIse tIle public to apply for Plivate \vells for ini.gation purposes. Jo1m
asked iftI1ere could be a City OrdUlallCe regardiIlg tile private vvells, Bl)'all respOl1ded tIle State
rules \vollld pre-e111pt a City ordillaIlce. J allleS Tralle stated lle \vould prefer tile 2nd tier rate be
raised in sl11aller illcrelnellts 110VV lllstead of larger DIles \Vl1ell tIle lleed arises.
Motioll by Jmlles Tralle to raise tIle 2nd tier \vater rate from $3.00 to $3.50 per 1000 gallons.
Matiall died for lack of second. J OInl Dietz said he would approve $3.25 per 1000 gallolls
lllstead. Moti011 by Jatl1es Tralle to raise tIle 2nd tier water rate from $3.00 to $3.25 per 1000
gallons. Jo1m Dietz secollded tile lnotioll. Motion calned 3-0.
JOI111 Dietz asked hovv the customers are informed oftI1e rate cllanges. BryaJ.l respo11ded tllat
tllere will be all ad ill tile Star Ne\vs, also as a lllemo 011 the bills, alld letters will be sent out to
the bllilders. Jolnl Dietz lllquired 011 tIle Il1ul1ber ofNSF cl1ecks tIle Utilities receive. Tlleresa
Slollmlski respo11ded tI1at t11ere were 110t llla11Y of them. Jalnes Tralle asked if the $20.00
charge was sufficiellt to cover our cost Theresa Slon1inski replied that as Ofll0W the $20.00
NSF charge is sufficient.
Motion by Jo1m Dietz to approve the recolmnended rate change and shall be attaclled witll tile
11IDlutes. J8111eS Tralle seco1lded the nlotioll. Motion carned 3-0.
Page 3
Regular nleetillg of tile Elk River Municipal Utilities COl1ll1llSsion
Deceluber 12, 2006
6.1 Revie\v APP A 2005 Rate Comparisons
On all 8lmual basis, Anlerican Public Po\ver Associatioll (APP A) cOlnpletes all Electric
Rate COll1parison. APP A's electric rate cOll1parison for 2005 \vas reviewed. This iruonnatioll
is delived froIn tIle US DepartmeIlt ofEllergy fonll EIA 816, tIlat all electric utilities file 011 an
aJllluaI basis. This COlllpariSOl1 reflects USA alld Mimlesota elecnic lltilities.
In tile past, APP A's survey reflects tile Elk River Murncipal Utilities rates around the
average for residelltial and conmlercial Cllstolllers al1d betvveen tile 3rd qllmiile and maximlU1l
for the llldllstrial class. This years' survey reflects tile Elk River MUlncipal Utilities positioll
as betweell tIle 3rd quartile aJld lllaxlllllU11 III all Cllstoll1er classes.
Iil 2005 IDld 2006, we lllcreased OlIT rates by less tIlan our \vllolesale rate lllcrease \vhile
passing on even less of all increase to tile delllalld (uldusnial) Cllstolners.
6.2 Re\Tie\v Tobacco Cessation Pro2ram
The tobacco cessation policy is ill developmellt aIld as soon as it is adopted by tIle City
C01U1Cil it \vill be presellted to tIle Utilities Conmussiol1 for approval. James Tralle asked
\VIlat the C1UTent slTIoklllg policy was. Glelul SUlldeell respol1ded tIlat rigllt na\v it only applies
to buildulgs, llild in tile tnlck only if the \Vorki11g partller objects. Jolm Dietz said tIle City has
a policy Of110 S1110ki1lg or Che\Vlllg ill cOl1lpallY vehicles. JOInl Dietz \VOllld like tIle Utilities to
adopt tIle S3111e policy. Lori JoImson said tIle City policy reads 110 tobacco III COl11p811Y
veIticIes. Staff ,viII revie\v tile policy alld presellt it at a future l1leetlllg.
Other Business
There was 110 ot1ler business.
TIle l1ext regularly scIledllled l11eetlllg oftlle Elk River Municipal Utilities COll111llssioll
\vilI be Tuesday, January 9,2006.
President Jerry Takle adjol1l1led tile regtllar llleetillg oftlle Elk River MlullcipaI Utilities
COll1111issioll at 5 :00 p.lll.
Respectfully Subllutted,
Jlldy McSpaddell
Recordillg Clerk