4.2. SR 11-18-2002MEMORANDUM
Item 4.2.
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Pat Klaers, City Administratc~~~
November 18, 2002
Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk River Municipal
Utilities Commission. At this November 18, 2002 City Council meeting, John is scheduled to
provide the Council with an update on Utilities activities. Attached for your review are the
draft minutes from the November 12, 2002, Utilities Commission meeting.
V-I~-ZO02
04:31PM FROM-ERMU 783-441-$0gg
T-517
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER MUNICIPAL UTILITIES COMMISSION
November 12, 2002
P.001/004
F-ggz
Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Trustee
StaffPresent: Bryan Adams, General Manager; David Berg, Water Superintendent; Patricia
Hemza, Office Manager
1. Call meeting_to order
President James Tralle called the meeting to order at 4:00 PM on November 12, 2002,
at the Environmental Learning Center located at the Landfill Gas Facility.
2. Consider Utilities A~enda
John Dietz moved to approve the Utilities Agenda for November 12, 2002. George
Zabee seconded the motion. Motion carried 3-0.
John Dietz moved to approve the Consent Agenda as follows:
October 2002 Check Register
October 10, 2002 Minutes
Financial Reports
After a brief discussion of the reports, George Zabee seconded the motion.
3-0.
Motion carried
5.1 Review and Consider Electric & Water Sprlngstad Cash Projections
Bryan reviewed income statement projection spreadsheets, which are based upon the
original Springstad water department statement. The use of the financial models projects the
effects of growth rates and rate changes. The statements used for this application are based
on the 2003 budget assumptions. John Diem questioned profit margins, and directed Staff to
check out other Utilities. James Tralle asked if the Utilities should continue to pass on
wholesale rare increases for power to the customers in order to further fund capital projects.
The Commission and Staff agreed that it appears that the Electric and Water Departments can
accommodate growth, and maintain acceptable cash balances.
NOV-13-ZOO2 04:31PM FROM-ERMU ?$3-441-$099 T-517 P.002/004 F-992
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
November 12, 2002
5.2 Review Revised 2003 Electric and Water Retail Rates
Electric and Water tariff sheets, and pertinent policy sheets reflecting the proposed rate
changes were presented and reviewed. It appears that the ERMU will not have to pass on the
entire wholesale rate increase to customers in order to maiatain adequate cash reserves.
Winter/Summer rate structure to help curb lawn sprinkling is proposed. An increase ia WAC
fees from $1,350 to $1,500/unit is proposed. WAC and SAC charge comparisons with
surrounding Cities were reviewed, and discussed.
George Zabee moved to approve all Electric and Water rate changes, per attached tariff
sheets for 2003. John Dietz seconded the motion. Motion carried 3-0.
5.3 Review Revised 2003 Electric & Water Capital Budget
Bryan Adams explained certain changes and presented the completed 2003 Electric and
Water Budget. Commission and Staff reviewed the changes. The budget process was noted
as favorable by Commission.
George Zabee moved to approve the 2003 Electric and Water Budget. John Diem
seconded the motion. Motion carried 3-0.
5.4 Review and Consider Meter Deposit Changes
The currem Meter Deposit and Related Services Policies were reviewed, along with
proposed deletions and additions. The consensus of the Commission, and Staff is to
eliminate the Meter Deposit for ERMU customers.
George Zabee moved to approve the elimination of Meter Deposits, and adopt the
revised Meter Deposit & Related Services Policies. John Dietz seconded the motion.
Motion carried 3-0.
NOV-13-ZOOZ 04:31PM FROM-ERMU T$~-441-8099 T-51T P.003/004 F-992
Page 3
Regular meeting of' the Elk River Municipal Utilities Commission
November 12, 2002
5.5 Review & Consider Electric Rule Chan~es
The current ERMU policy for residential electric service location requires the residential
Meter to be located on the closest comer to the ER_MU source of power. The policy was
intended to limit the length of the service wire, which would limit the potential for cable
failure, ease of installation, and be cost effective. It was noted that many Utilities do not
install service lines at all. Many of the larger homes feel the meter is unsightly, and desire
equipment to be placed in the back of the house, requiting longer service lines. It is proposed
that the builder receive the option of placing the electric meter on a meter post by the service
pedestal. The builder, at his expense, can install the service panel anywhere they desire on
the residence with the understanding that the buiIder/owner furnishes, installs, and maintains
the service wire from the meter to the service panel.
John Dietz moved to approve the revision to New Residential Service to read:
Service entrance shall be located as follows:
Closest comer to the ERMU source. ERMU furnishes, installs, and maintains
secondary conductor.
At service pedestal on meter post. Other furnishes, installs, and maintains
secondary conductor from service pedestal.
James Tralle seconded the motion. Motion carried 3-0.
5.6 Update Land Purchase for Future Well
Bryan Adams updated the Council on the purchase of land for proposed Well #9. It is
noted that the area is 2 ½ acres, which is the least area that can be purchased, because of sub-
division rules. Staff responded to questions and comments from Commission.
6.1 Review & Consider Addition of Administrative Position
Staff requested permission to begin advertising for the Administrative Position contained
in the 2003 budget.
George Zabee moved to approve the advertising for the Administrative Position.
John Dietz seconded the motion. Motion carried 3-0.
NOV-13-ZO02 04:3ZPM FEOM-ERMU 763-441-80gg T-$17 P.D04/O04 F-ggz
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
November 12, 2002
There was no Other Business to discuss.
The next regular scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, December 10, 2002, at 4:00 PM in the Utilities Plant Offices.
President, James Tralle adjourned the November 12, 2002, meeting of the Elk River
Municipal Utilities Commission at 5:15 PM.
Respectfully submitted,
Patricia Hemza
Office Manager