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6.1. ERMUSR 11-17-2009/ \ Elk River ~ MUri1Clp~ Ut111t1eS 13069 Orono Parkway • PO. Box 430 Elk River, MN 55330-0430 November 5, 2009 To: Elk River Municipal Utilities Commission John Dietz Jerry Gumphrey Daryl Thompson From: Troy Adams Subject: Staff Updates -Director of Operations Phone: 763.441.2020 Fax: 763.441.8099 On September 11, 2009, Otter Tail Power announced it's withdrawal from the Big Stone II power plant project. The other primary Big Stone II participants include CMMPA, Heartland Consumers Power District, Missouri River Energy Services, and Montana-Dakota Utilities. The remaining four primary participants entered into discussion with a new prospect participant. However, this new prospect participant will not be joining the project. On November 2°d, the announcement was made that the Big Stone II project will not be built. Attached is the official press release from Big Stone II. Enclosed is a thank you letter from the City of Grand Marais and the Grand Marais Public Utilities Commission thanking ERMU for ~roviding mutual aid in repairing their electric distribution system after the September 28t windstorm. Scott Thoreson, Jeff Henning, Art Gatchell, and Lex Anderson did a great job. Also enclosed is an article from the Cook County News Herald about the windstorm. An invoice for the cost to ERMU to provide the mutual aid has been sent to Grand Marais Public Utilities. The City has submitted their numbers for the state diesel and gas bids. At the October 13tH commission meeting, the commission directed staff to participate with the City in the bids for up to 75% fuel usage. An analysis of the past three years usage was done. The utility fuel usage numbers provided to the City to include with their submitted were the equivalent of 72% diesel and 73% gas. This month there was some issues with one of the generators at the landfill. A bearing went out in a gear box that drives the oil pump. Fortunately, the damage was very minor and that engine was up and running again in about 2 %2 days. It was found that one of the other three engines had similar wear on the same bearing. Preventive maintenance is being done on the other three englnes. Staff Update Director of Operations Page 2 An analysis on ERMU's energy source (Great River Energy) was done for use by Minnesota Municipal Utilities Association in future cap and trade legislation preparedness. Enclosed for your review is a graph depicting our energy sales broken down by fuel type (including hydro, wind, methane from solid waste, natural gas, oil, and coal). It is interesting to see how Great River Energy's portfolio has changed over the years. Even though there has been a substantial effort placed on adding wind resources, it is still a small percent of their overall generation. Early this month, I attended the Minnesota Power Systems Conference (MIPSYCON) held in Brooklyn Center, MN. The event ran for 2 '/z days and covered technical, management, and industry topics geared towards electric utility engineers and management. The conference occurred one day after the announcement that Big Stone II (BSII) would not be built. One of the speakers was from the Minnesota Public Utilities Commission. He was scheduled to discuss "Regulatory Perspective on Regional Transmission Expansion". The bulk of the questions directed his way were in regards to BSII. This made for a lively discussion. It is a given that the recent shift in the economy has resulted in an increase in delinquent accounts and shut-off for the Utilities. Related to this trend is the change is how ERMU employees are treated by these customers experiencing hard times. During the last wave of electric shut-off prior to the cold weather rule going into effect on Oct 15, there were instances where a customer's interaction with an employee became a concern. To help alleviate these situations, staff will be undergoing some proactive training. The Elk River Police Department will be speaking with office staff regarding the panic buttons located within the office. Also, staff will be getting some training on defusing potentially hostile customer situations. We will also be looking into options to providing a safer point of customer contact at our front counter. Staff will keep the commission apprised as these options are researched. As directed by the commission, I have sent a letter to the commercial customer who had the billing issue discussed last month. The letter extended the commissions offer to discount the past due amount by 20% if paid in full within 30 days. I will provide an additional update at the December commission meeting. Also, enclosed for your reading is the current issue of the MMUA Resource. BriG~~.!' T N wk rMKR.~n 'CA.~ v y,i~.t November 2, 2009 y ~@~ . TG~IE ,a[ Participating utilities announce wind-down of dig Stone 11 project The participating utilities announced today that they will not build the Big Stone II Project, a planned 500-to-600-megawatt coal-fired power plant to be located near Milbank, South Dakota, and its associated transmission. The project required additional participants to move forward; however none have committed. Big Stone II, a fully permitted project, had been determined to be the least-cost, environmentally sound baseload power plant for the project participants. The project's high voltage transmission facilities were to be sized to also serve the region's burgeoning wind energy development. The Big Stone II Project participants were Central Minnesota Municipal Power Agency, Heartland Consumers Power District, Missouri River Energy Services and Montana-Dakota Utilities Co. For information specific to each company, contact: Mark Hanson, Montana-Dakota Utilities Co., 701-530-1093 or mark.hansan@mduresources.com. Bill Radio, Missouri River Energy Services, 605-731-2522 or billr@mrenergy.com. Russ Olson, Heartland Consumers Power District, 605-256-6536 or rolson@hcpd.com. Lori Frisk-Thompson, Central Minnesota Municipal Power Agency, 507-526-2193 or lorift@cmmpa.orR. ########## ~~~J°p ~R~(5 Pfi(~LIC l~tT(~(T(~5 C®I~tN1(55(ON c~~ o~ c,r~Np ~~,4~..4i5 25 No~~n groa~~n~a~ ~.o. gox goo c,~ra~n,d Ma~ra%s, MN ~~~04-DOD gu,s~wess of face - 22~-3~~-zg~-g l=ax ~zg-3g~--2~~ Power Pl,awt 22g-~g~-nogg Treatw~.ev~.t P~awt gig-3g~-21~ D The City of Grand Marais and the Grand Mazais Public Utilities Commission would like to express our sincere gratitude to the Elk River Public Utilities for assisting us following the September 28 windstorm. A special thank you to Mark Fuchs, Line Superintendent, for sending the two crews of linemen. Thank you to Scott Thoreson, Jeff Henning, Art Gatchell, and Lex Anderson for jumping in there and doing a great job. A final thanks to Mike Willetts of MMUA for arranging the assistance from Elk River Utilities. We could have never repaired our system and had everyone back on line so soon without your help. Sincerely, ~ ~ ~- l ~~~ ~ ~~~~ Mike Taylor, Line Superintendent Matt Bronikowski, Lineman Jeff Eli en, Apprentice Lineworker ~~~~~ Sue Hakes, Mayor City of Grand Mazais ~~=~'~ Uf Hazold Greenwood, airperson Grand Marais Public Utilities Commission "T~is is aw 6c~ual oppevtun.it~ ~vo~ravu. Discrrulv~.atiov~. is proHibited b~ federal haw. To file a corv~plaiv~,t of discrvu.%v~,atiow, carte to IdsD.4, Diiector, o~ice of Cwil r~.i.~N,ts, z~-oo iv~,depewden.ce.~4ve. s. W., WaShiv~,PtovL, D.G. 20250 o~r call 300-i 95-32}2 (v0%ce) or 202-X20-w382 (TDD)." Wild winds in Cook County www.cookcountynews-herald.com Cook County News Herald ~~~. ;, Front Page o General News Wild winds in Cook County Staff reports ~. -~ :. A- , , ,~: -- ~, ~ __ _ ~ _ . 'Staff photo/Rhonda Silence Extremely igh winds pounded the Grand Marais :harbor, sinking boats by the Coast Guard station and tearing trees up by 'their roots on Monday, September 28. 'See more storm photos on page A3. Monday, September 28 came in like a lion and went out like a lion. Whitecaps whipped across the Grand Marais harbor, with waves crashing over the breakwall from the harbor side. Lake Superior was slate gray, and giant clouds rolled over the Sawtooth Mountains from the northwest. At the Cook County airport, manager Rodney Roy reported wind speeds of 27 to 42 knots -roughly 31 to 48 miles per hour. "It's blasting here," he said. He wasn't worried about the planes sitting outside, though, because they are always tied down whether it's windy or not. The primary problems in the county were downed trees blocking roads and power Click ads for larger version. ~U5~f~ai_55 rtit'!~ ~ER1;'ICE Dif~ECsO~Y __ a~~w,~_. ;~ ~ _ =. .~._ ®~ __ _ . .' ~E~cA~u" Y !. ~ ~ __ b~f® cr,eca ~ ~ ~ ;, '~- - ~- - ~~~` - -: a~tnxF ~ - - ~~., . ,-3 ,, ~ , . __ ~n }u~ ~~ r, . __ .^•u.r.~oa m^Narcew.~ wvCR~02 .i~l r~[LC6iMFtUit i W~NNTM4 ..,tr ~• w.v~ ~~~cw~. ~, ~~ - ~ ~ l~u ~ ~ ~ ., ~ ~, _t ~~ http://www.cookcountynews-herald.com/news/2009-10-03/Eront_Page/Wild_winds_in Cook_County.html (2 of 7)l i/5/2009 8:36:21 AM ,. 1 Wild winds in Cook County ~ www.cookcountynews-herald.com ~ Cook County News Herald outages. Crews from Grand Marais Public Utilities and Arrowhead Electric Cooperative Inc. (AECI) worked through e day and night. j ~.~. Staff Photos/Jane Howard Above: The .winds were so strong on Monday, September 28 that they tore down a light pole on Highway 61 in Grand Marais. Traffic backed up as the pole :was pushed off the road. Upper right: Mountain ash and pines in Grand Marais were victims to the wind. Right: Jelson's Traveler's Rest suffered the loss of eight large trees and a picnic table. AECI Manager Don Stead said of the countywide outages being reported, °The linemen are doing their best, as they always do." However, recognizing the extent of the storm damage, the cooperative called for assistance from other cooperatives- Lake Country Power and East Central Electric-and from a contractor, Lake States. At press time on Wednesday, September 30, AECI spokesman Joe Buttweiler said there were still 200 members without power. All the main feeder power lines had been repaired, but numerous smaller distribution lines to single services still don't have electricity. "Work is progressing slowly due to a number of broken poles that eed replacement," said Buttweiler. .~_....-._._._._r__..._.._..._._._-..-.._. M ? E c _ ±, e , *' ~ # ~ ''~ ,Y e ~ '~~, '. ~ l; ' -~~ ~ . ~ f ' ;~ i t ^$:~.. i ~~ ~ ~ ~: ~' i SH~RPENI~TG SERVICE ' ~ STEEL & CARBIDE ~ CIRCULAR SAWS ~ s CISS oRS + gNIVES ~;- y HAADS~A 5, C815F.L5,J~LKER BLbDE5 ~ Cif L w7~r. yaur ttt.3~,er slRarpen;ng nreds. X18-35?-~34T ~. ~ . ,, ..._ =_Y~~-. ~..,-.~tir,_~,~. ~, .-.. _ ti r _-.~ :, !r~z~~- ~-~,~ rtutt~C~r ~r~-F.ab 5aun.~; ~~ =~r.~`I ~.'e~~t cn ~uf Fi~-l ~l-~ s~+l~ra "~~at~r5. '' ~Vi~~ .J`~_II-~.. ill u~~~ k~~Ui i~3 G~IJ fir~lr'+':5. _1~1 E?,~.~~ 5tr~et irp Thur`l~ier Ea~;. Toll-F,•ee~ 1-~1:'~~-~1<.-5~~~1 Fred Koerieke ~~~~upcriorS~d~eE f fects.corn ~ 1 S-3ri; -~c5^.s • k~eneke ~ n~~rthl~~.Lar;7 http://www.cookcountynews-herald.com/news/2009-i0-03/Front_Page/Wild_winds_in_Cook_County.html (3 of 7)t 1/5/2009 8:36:21 AM Wild winds in Cook County ~ www.cookcountynews-herald.com ~ Cook County News Herald ` arc - - - Grand Marais Public Utilities also called for assistance to the Minnesota Municipal Utilities Association. Line crews came from Elk River, MN to assist. At press time, PUC Secretary Jan Smith said about half of the power on the east end of the city was still off. Another transformer had just blown. She said, "It seems like we take one step forward-- and two steps bak. But they are working as hard as they can to get everyone back in service." CURRENT FIRE SITUATION Search Archives Kok County Highway Department and Search Minnesota Department of Transportation _.__ _ _ _ ._ (Mn/DOT) crews were also working long Click here for digital hours, clearing roads from one end of edition the county to another. One Hovland coat c©unTY ,. resident reported that between the trees :~r~~r~ j ~~=~r~~ l~~ and the downed power line near Ida :;~ vtw. Lane, "it looked like a war zone." n~°" ~~++.ryy.. '' dH~2;( isltll •. 4 .~ dmvon ~ . ~, _ . -• - b~ h '•'° ~+ ~'' }G'iiCf WjtlGli i~ ~Q+D~ C-0rJrl~~ y _ l~~ _. IL ~+ f ~' j, ~ ~ ~~~ " ` ~ I _ _ _. _ _. fl~r,h t n~•.•c pr:llr.; IyC~ .. ., ~, , r ~_ -;~ t~JnO rUnr n~3p sr ~4 :•.~rJ h~:r ta'rr5 ~ •.ti pr ~ ~` i~ +..., µ ~ ' Kcal fire departments were kept busy -~' "• - .rith calls of fires as trees fell on power lines. There were calls to put out fires on Special sections: lines in Lutsen, Grand Marais, and TRANSPOtRTAT9iON as$oCraTE Tr:u an^.(~i.. ~ ~ ~•~r•:i+ll . ~. '~~~_ c Plw ;. h.! :~.•: Tn:+.h._:a,.i 51. ., ;•~~I.',P.~arw•,i,.d:;;.•:edL. 3.ia_~ 'crr..:r w:n~ c•~:~rrl re~~rJ :u?4 u.;s:::a:. a w-~I- - ,ru•:I al Incr,d a1:C. c:d cri, au_c: {:~:.:;~ a C~:::c n•zal~ :: ,, ~. ,rc *-4s r,°:parsrr~ ~rUs and a: rrr I n r.::ur~ ~, _I:: 1.; hLFa:w•~•.:~caracr~.ast~.nr ~~r.:a:: •:::1•rr 1.-. i :rU•i,~. ri:f r~~ r iz+lY?;f..:r:97 I' [:~a-.s .::.•,t:t:r:1 .-~rlr~l: http://www.cookcountynews-herald.com/news/2009-10-03/Front_Page/Wild_winds_in_Cook_County.html (4 of 7)11/5/2009 8:36:2( AM V'~ .r Wild winds in Cook County ~ www.cookcountynews-herald.com ~ Cook County News Herald Hovland. Fortunately the fires flamed and burned out quickly, in most cases ''-`- - ~~ - ~ -` before the fire departments even rived. U.S. Forest Service District Ranger Dennis Neitzke had crews out clearing trees before the stormy blast was over. He wasn't worried about another blowdown like the one in 1999, however. Several times a year, he said, his crews are sent out to deal with the effects of wind, heavy snow, or ice. Likewise, the North Superior Ski & Run Club conducts an annual cleanup at the Pincushion Mountain Trails. This year will be more difficult than previous years and NSSRC representative Dick Swanson invited any certified chainsaw operators and folks willing to 'haul stuff off the trail" to come pitch in at the cleanup on Saturday, October 10 from 9:00 a.m. to 1:00 p.m. a~~~Ciq 1~11EitE;ti ~s~lerm~~~E~ ~~~c~zic f J~19-Noyru.t.t009 .. a _ ~, -- ~. .~ _ :~ ~~ ~„ M:. 4 .~ . .; : .~ - i+,T. ~ * ~lri 3 ~ ~. ~ f}` _`r`P s ~. '`t ~'i~h'_~ _... _, S..- ,. ,.Y F' ~ ~~.r ~,~ ~ ~;~~--_.._, ~ , ~ -,. ~:.., ww ~:.- ~;_ r ' ~~~ .. :. ...._._.- - - _._. ~ ~ .. _ wal Several boat owners docked at the Grand Marais Yacht Club next to the U.S. Coast Guard Station, suffered damage to their boats as the massive waves slammed across the harbor. One boat, belonging to Grand Marais Mayor Sue Hakes and her partner, John Gorski, sank in its slip and others belonging to Craig Schulte, Bruce Johnson, and Dave Tersteeg were slammed against the dock y the power of the waves. Also sinking was a Minnesota Department of Natural Resources conservation boat, which was docked at the Grand Marais Coast Guard http://www.cookcountynews-herald.com/news/2009-10-03/Front_Page/Wild_winds_in_Cook County.html (5 of 7)l t/5/2009 8:36:21 AM Wild winds in Cook County ~ www.cookcountynews-herald.com ~ Cook County News Herald Station. At press time, both boats had been recovered, but how much damage they sustained was yet to be ~termined. Homeowners all over the county lost trees, but no significant damage to homes has been reported, although Tom and Patty Nelson of Nelson's Traveler's Rest in Grand Marais were hit hard. By mid-afternoon, eight large trees were down, blocking cabins, crushing a picnic table, overturning a Dumpster, and bearing down on a cabin roof. Later, a huge white pine went over. Patty said that ever since they bought the business in 1990, she had been saying, "It will be a sad day when that tree comes down." 1. Staff Photos/Rhonda Silence Left: The !wind blew all kinds of things around ';the county-including porta-potties at 'Coast Guard Point. Right: Sheriff Deputies and First Responders were called to rescue a person reportedly in distress on The Point. After confirming that the person was safe, Deputy Joe Zallar fought the wind back to safety. _ _ _ _ __ _ - With all 12 of their cabins full, Nelsons had to send their guests to other places. Nelson worried throughout the day about some guests, one of whom was very ill, who had headed to the woods earlier. She has developed personal relationships with many of her guests. "They're our very good friends," she said. "Many of *hem have been coming here for 50-60 gars." http://www.cookcountynews-herald.com/news/2009-10-03/Front_Page/Wild_winds_in_Cook_County.html (6 of 7)l l/5/2009 8:36:21 AM Wild winds in Cook County www.cookcountynews-herald.com ~ Cook County News Herald ., ~ - i :~~ I _,. i ~, __ , ': ;- .i4.~G '~ ;- d.. ,. ,.~. Looking on the bright side, Nelson's Traveler's Rest now has better views of the lake. .~~- ,,~ -~ , . . ~.....+ ~ .., i+ .. •, ti _ ~`' ~ I ~r~. ~ S e ~ •~ -~ _ L. ~~ ,~ ~+'~t i_ 'Photo by Lou Pignolet Above: At press 'time, many Hovland residents were ;still without power, as crews worked to clear downed trees on lines like these 'on Tamarack Trail Newspaper web site content management software and services } http://www.cookcountynews-herald.com/news/2009-10-03/Front Page/Wild_winds_in_Cook_County.html (7 of 7)1 l/5/2009 8:36:21 AM H u~ '~ ~/ _~ /~w] _``/ it W cv Q W O ~ ~ ~ ~ ~ c~ ~ ~ - O 2 ~ ~ Z O U ^ ^ ^ ^ . ..._ 8002 _;5 n ~ LOOZ ' ~ f A'f: ~C s ` ' ._ 9002 S .. ;. '.~. SOOZ h ~ t~00Z ,~ { :, t ~ ~' . ~ ZOOZ ` ~ Y .. ~OOZ 000V ,.. k. -; c ' 666 0 0 0 0 0 M 0 0 0 0 N 0 0 0 0 0 0 0 0 0 o o ° i n o N ~ ~ 0 0 0 0 ~uMW) /~~.lau3 ~j Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 November 12, 2009 To: Elk River Municipal Utilities commission John Dietz Jerry Gumphrey Daryl Thompson From: Theresa Slominski Re: Staff Update -Office Bond Refunding potential Phone: 763.441.2020 Fax: 763.441.8099 Tim Simon, Finance Director for the City of Elk River, let me know that they are looking into a bond refunding for the city. An additional bonding that they may be looking at refunding involves our 2002B Bond, which was for the expansion of City Hall to include our building. Interest rates would have to come down slightly to make this additional refunding feasible. If this is deemed feasible, it would involve a Public Hearing in December, and it is unlikely that it would be met with opposition, given that it would ultimately save money. Ehlers, bond counsel for the City, has contacted me for preliminary information in anticipation of this potential. We will keep you informed as this potentially develops. Eco envelopes This month the eco envelopes will be used for the first time. We hope that it will be well- received. Trainings Staff have had some heightened sensitivity to personal safety with the last round of disconnections before the cold weather rule went into effect. Jeff Beahen from the police department provided staff with a training on dealing with hostile customers and general awareness to provide a safe environment. There isn't a utility customer service training available to send staff to. I inquired of Rochester Public Utilities because they have a customer service department with an onsite trainer. Their trainer has graciously agreed to take time off from his work to come up here and provide some customer service training onsite in December. Identity Theft Prevention Program In November 2008, this commission approved an ERMU Identity Theft Prevention Program, as required by the Federal Trade Commission for creditors, which includes municipal utilities by definition. The FTC's enforcement of this required Identity Theft Program was just delayed for the fourth time on October 30, 2009 until June 1, 2010. ERMU has put its program in place and continues to operate as if the FTC was enforcing it. Part of this program included an annual reporting to the Commission, which follows. The program we have implemented requires that new accounts have the social security numbers of the account holders verified and utilize a utility database for credit inquiries for verification and to detect suspicious activity. For existing account holders, the program requires that we verify the identity of the account holder on any request of information, changes in billing address, or changes in banking information. ERMU has also put various measures into place to protect the personal identifying information we collect. This includes secure server and website measures, passwords on computers and software programs, destruction of physical information as necessary, and staff signatures required on a customer privacy understanding statement that is reviewed and re-signed annually. This program has been successful thus far and will continue to be monitored and revised as necessary. At this time there are no necessary revisions identified. Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 November 12, 2009 To: Elk River Municipal Utilities commission John Dietz Jerry Gumphrey Daryl Thompson From: Theresa Slominski Re: Staff Update -Office Phone: 763.441.2020 Fax: 763.441.8099 Water accounts with split allocation Per commission request, an analysis is provided regarding the accounts that are impacted by a sharing of costs between the water and electric funds. A calculation is provided showing the 25% water and 75% electric allocation determination. It is based on Full Time Equivalents (FTE). The calculation identifies the percent of time spent on water duties, the number of employees affected, and then determines a final FTE. The percent of time spent on water duties for the office was determined by applying the number of water meters compared to total meters. This seemed the most logical for applying time spent on customer service calls, billing, and meter reading. All other employees' percent of time was verified by looking through actual time cards. A listing is provided of the various water accounts affected by a split allocation and what the allocation is, as well as other items being posted to the account aside from the allocation. As you can see, the majority of accounts affected by the 25% water allocation are the administrative and general accounts. Water Department sharing of costs % calculation Employee(s) % Time # employees FTE t) B 1 1 1 AH 1 1 1 PN 1 1 1 RC 1 1 1 RW 0.2 1 SZ 0.15 1 Office 0.35 12 Mtr 0.05 2 Locator 0.15 1 Total FTE Total employees 0.2 0.15 4.2 0.1 0.15 8.8 35.5 24.79% Water Accounts with shared allocations 62-0730-7395 Expense TRANSPORTATION EXPENSE The expenses coming into this account are 1) direct from payroll 2) direct from specific purchases or services for water 3) a portion/split of fuel invoices on bulk purchases 4) invoices from City for shared services (vehicle maintenance for example) for specific vehicles assigned to water dept 62-0740-7431 Expense METER READING EXPENSE The expenses coming into this account are 1) direct from payroll 2) a portion/split of meter reading invoices based on the number of meters used by water 62-0745-7451 Expense DEPRECIATION -WATER The expenses coming into this account are 1) monthly journal entry to accrue the depreciation expense based on specific assets assigned to the water dept General assets are split 25% assigned to water and the depreciation for those are here also 62-0748-7481 Expense INTEREST ON BONDS/LONG TERM The expenses coming into this account are 1) monthly journal entry to record the interest expense on borrowing specific to water General bonds are split 25% assigned to water and the interest expense for those are here also 62-0900-9030 Expense COLLECTING EXP DISC/RECONNECT The expenses coming into this account are 1) a portion/split of meter readout/disconnect/reconnect invoice 25% 62-0900-9051 Expense MISC CUSTOMER ACCTS EXP-COMP The expenses coming into this account are 1) allocation of cost for items such as: bank fees ach processing postage for billings paper for billings envelopes for billings printing of door hangers printing of notices drop box rental fees post office box fees software for general use such as power manager "*items related to being able to bill and collect from the customer''''* 25% is the split to water 62-0920-9201 Expense SALARIES/OFFICE ~ COMMISSION The expenses coming into this account are 1) a portion/split of salaries/office and commission 25% 62-0920-9211 Expense OFFICE SUPPLIES 8~ EXPENSE The expenses coming into this account are 1) direct from specific purchases or services for water 2) a portion/split of mats and towels service 25% 3) a portion/split of general office supplies (incl plant) 25% 4) a portion/split of office computers (incl plant) 25% 5) a portion/split of copiers and copier maintenance (incl plant) 25% 62-0920-9212 Expense LT 8 WATER CONSUMPTION/OFFICE The expenses coming into this account are 1) a portion/split of elec and water of Orono pkwy office 25% 62-0920-9213 Expense BANK CHARGES The expenses coming into this account are 1) allocation of cost for items such as: bank fees "**items related to being able to bill and collect from the customer*''* 25% is the split to water 62-0920-9222 Expense LEGAL FEES The expenses coming into this account are 1) allocation of general legal expenses 25% 2) direct from specific purchases or services for water 62-0920-9231 Expense AUDITING FEES The expenses coming into this account are 1) allocation of audit expenses 25% 62-0920-9241 Expense INSURANCE The expenses coming into this account are 1) allocation of insurance expenses 25% Workers comp premium 25% Workers comp deductibles (when applicable) 25% Liability Insur 25% Property Insurance 25% of general after boiler and LFG are allocated 62-0920-9260 Expense UTILITY SHARE DEF COMP The expenses coming into this account are 1) allocation of employer portion of post emp benefits expenses 25% 62-0920-9261 Expense UTIL SH OF MEDICAUDENTAUDISA The expenses coming into this account are 1) allocation of employer portion of employee insur benefits health insurance long term disability Life Dental allocation is 25% of the Utilities expense for these items 62-0920-9264 Expense EMPLOYEES SICK PAY The expenses coming into this account are 1) allocation of employee sick pay expenses 25% 62-0920-9267 Expense EMP VACATION/HOLIDAY PAY The expenses coming into this account are 1) allocation of employee vacation and holiday pay expenses 25% 62-0920-9293 Expense CONSULTING The expenses coming into this account are 1) 25% of consulting expenses for job evaluation 2) billing from the City for public works director specific to water 62-0920-9301 Expense TELEPHONE The expenses coming into this account are 1) 25% of telephone expenses 62-0920-9302 Expense ADVERTISING The expenses coming into this account are 1) 25% of public awareness advertising 62-0920-9303 Expense DUES ~ SUBSCRIPTIONS -FEES The expenses coming into this account are 1) direct from specific purchases or services for water 2) allocated 25% from specific invoices that impact water 3) allocation of cost for items such as: mapping software organizational dues 25% is the split to water 62-0920-9305 Expense SCHOOLS ~ MEETINGS The expenses coming into this account are 1) direct from payroll 2) direct from specific purchases or services for water 3) allocated 25% from specific invoices that impact water 4) a general journal entry allocation of 25% of general expenses reviewed monthly Correction made in Sept to adjust allocation down, as several items were specifically directed here, then allocated 25% also Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 November 12, 2009 To: Elk River Municipal Utilities commission John Dietz Jerry Gumphrey Daryl Thompson From: Theresa Slominski Re: Staff Update -Office Phone: 763.441.2020 Fax: 763.441.8099 Conservation Improvement Program (CIP) analysis Per commission request, an analysis is provided regarding the posting of expenses and reimbursements to the CIP account for 2008 and 2009. The detail provided shows the debits and credits that flow through this expense category for both years. The debits are the expenses posted and include the various rebates, as well as administration of the various programs through the consultant fees. The credits are the reimbursements posted that we receive from Great River Energy (GRE) for the qualifying rebates we paid out. We are reimbursed a portion for the residential appliance rebates, and 100% for the commercial rebates. The timeline shows the Net Year-To-Date (Net YTD) number on the bottom line for each year. Looking at this line you can see that our expenses paid out have been greater in 2009. We have $69,124.70 that has not been reimbursed for commercial rebates paid out March through October (detail is also provided for this) and it skews the numbers. For September, we have set this amount up as a receivable to remove the skew. ~ M M U O (O d ~ ~ f0 a0 r N (A fA p ~ O a o~~T Z ~(j ~ 0 EA EA °r^i°o Moir ~ M N N ~ d! 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Box 430 Elk River, MN 55330-0430 November 12, 2009 To: Elk River Municipal Utilities commission John Dietz Jerry Gumphrey Daryl Thompson From: Theresa Slominski Re: Staff Update -Office Phone: 763.441.2020 Fax: 763.441.8099 CAPEX analysis Per commission request, an analysis is provided regarding the posting of items related to CAPEX expenses for 2008 and 2009. Last year we were billed in the fourth quarter for the entire year and it was a 102,000 year end entry posted in December 2008. This year we are incurring the expense throughout the 3`d and 4th quarters. (For the 2009 budget, we had anticipated that this would be a capitalized item as an intangible asset. We are still not at that point in 2009 and so it will be an expense again this year.) A breakdown of the posting is attached. .-. rn 0 d M O v-. N U U f0 N C . _ ~ N ~ L 0 0 / V ~ N ~ ~ U C (p f9 ~ ~ ~(0 ~ d. L 0 Q L ~ C ~ C ._ ~ O O ~ ~ ~ N C O C (0 ~ ~ d In V ~ EA Q N N ~ ~ O N ~ c ~ ~ ~ ~ ~ Q OD I~ (D ~ ~ N I~ O N d9 b9 Ef3 G9 ER O N O y ~ C ~ ~ N a CO CD x ~ O O W CO ~ i-- 4. o U N 69 Ef? FA ~? 69 UddC~ •- N M tt Elk River ---~ Municipal Utilitie s Memorandum To: Elk River Utilities Commission Jelin Diets ~~~ From: David Berg Reviewed By: Terry Maurer Date: 11/5/2009 Subject: Wellhead Protection Maintenance A meeting with MDH and MRWA officials is set for November 10, 2009. We will be updating our Wellhead Protection Plan. Wells 7, 8, and 9 must be added to the plan and conservation acts will be documented for State verification. The Wellhead Plan sets a radius of the wells and this is required to be sure that we are knowledgeable of private wells in the protection zone. We are then required to inspect the private wells annually for proper aquifer protection. An engineering firm will be needed to run diagnostics for each well zone that is to be added to our plan (7, 8, & 9). Barr was our engineering consultant for our initial Wellhead Protection Plan and they will complete our additions to ensure consistency. J ~ - J -- y 5 .ice i : ~~ ~rocac~ior ~~~ I ,~", ~ ~0 _ d. What is wellhead protection? Wellhead protection is a method of preventing contamination of a public water supply well by effectively managing potential contaminant sources in the area which contributes water to a public water supply well. 2. What authority does the Minnesota d~epartmesat of hlealth have to implement wellhead protection? The department is granted authority under Minnesota Statutes, Section 103I, subdivision 5, and Minnesota Rules, parts 4720.5100 to 4720.5590. The statutory authority was granted in 1989 with the passing of the Minnesota Groundwater Protection Act, which was a response to the 1986 amendment to the federal Safe Drinking Water Act. The rules governing wellhead protection were adopted in November 1997. 3. What is the benefit of wellhead protection? A very clear benefit of wellhead protection is the emphasis on the prevention of drinking water contamination versus the remediation of a contaminated drinking water supply. The cost of prevention is less than the cost of remediation. 4. d9oes this rule affect private wells? No. It only affects public water supply wells. S. What is the definition of a public water supply well? A public water supply well provides drinking water for human use to 15 or more service connections or to 25 or more people for at least 60 days a year. A public water supply well is further defined as either a community or noncommunity water supply well. A. A community water supply well serves 15 or more service connections used by year-round residents or at least 25 year-round residents. Examples include municipalities, subdivisions, and nursing homes. B. Noncommunity water supply wells are divided into two groups: ® A nontransient noncommunity supply well serves at least 25 of the same people over six months of the year. Examples include schools, factories, and hospitals. ^ A transient noncommunity well serves all other public water systems. Examples include restaurants, gas stations, churches, parks, and campgrounds. 6. Is this voluntary? No. All public water suppliers will be required to implement wellhead protection measures as specified in Minnesota Rules, Chapter 4720. August 2009 Elk River ,", Municipal Utilities Memorandum To: Elk River Utilities Commission ,Jalui Diehc JatyGtunph~ey ~~ From: David Berg Reviewed By: Terry Maurer Date: 11/5/2009 Subject: Unsealed Abandoned Wells Recently, I happened upon an unsealed, uncovered abandoned well. This is a big concern for potential aquifer contamination. Sherburne County Soil & Water is hopeful to assist us in financial aide efforts in the event that we implement well sealing actions. After talking with Bruce Olsen from the Minnesota Department of Health, he explained that he has been working with a wellhead protection discussion group to enact a grant for water suppliers that have a Well Head Protection Plan in place. The grant money disbursement amount will likely be determined by population per water supplier. There may be a chance for add-on grants, but atwo-year base grant is proposed for all water suppliers. March 2010 is the anticipated grant program start time. It is in the better interest for our community to apply for the grant and in the event that we are declined for funding, I would then advise that we take a look at budgeting for financing this area of concern. Attached: Pictures of an Elk River abandoned well. MEMORANDUM TO: Elk River Utilities Commission John Dietz Jerry Gumphrey Darryl Thompson FROM: Dave Berg DATE: November 4, 2009 SUBJECT: Cell Antennas on our Water Towers Attached is an interesting article that was recently in the <~WW~~ magazine regarding methods for attaching antennas and cables to water towers. I am providing this to the Commission simply for information. On a related matter, Bob Pearson, the City's LT. Division Manager, has been providing information regarding the water tower longitude and latitude, along with elevations to numerous telecommunication companies and consulting firms working with telecommunications companies. Bob has been a valuable resource in getting the information out to these people through his net`vork of contacts. e:: D~~cumenn uul ~ernn~_ .16ery IneJ iernn~n. I~emp~san lurerner File: c q.l:U6 lu qa n9 inem~~ w.rrer r~wu~.d~~e Storage Tank Integrity Want to Know the Best Antenna and Cable Attachment Methods? ~ttaavhing t~l~~®n~~ni~ati®ns ant~nna~ and. gable l~>ra~ket~ t®a water t®~r~>r pan d.anlage the t®wer's metal st>r~et~.><;re and. ~®ating systen~.1~ regent s~dy sheds light ®n which attach>rment meth®d.5 w®rk best. BY DANIEL J. ZIENTY HE APPROPRIATE METHOD for attaching telecommuni- cations antennae and coax- ial cable support brackets to water towers is based on numerous factors, including the brack- ets' purpose, water tank design, and tank structural integrity .requirements. Connec- tion fatigue caused by wind vibration can affect a tower's base metal as well as the connected component. Although attach- ment by seal welding is the method most widely used, other common attachment methods can also be used. The follow- ing are the three most common attach- ment methods: v Stud Welding. In the stud-welding method, bolts are welded to the base metal of the tower or tank with a capac- itor discharge or drawn-arc on a small spot where the protective coating has been removed. Aftet• welding, the sur- face directly around the stud should be cleaned and the coating reapplied to the affected area- Tlais method doesn't damage the coating on the other side of the tank's surface, so it's typically used on standpipes and ground stor- age reservoirs. However, stud-welding application has a high tendency for fatigue failure. Torque testing per- formed according to the said manufac- turer's specification is recommended to verify the weld strength. ^ Bolting. This method involves fasten- ing ashop-fabricated attachment (base plate) to the tower with bolts through holes drilled in the tower's metal sur- face- Bolting can be applied to water towers with support columns, includ- ing pedestal and fluted designs. Bolt- ing results in the lowest structttrai fatigue for a tower's base metal and the attached component. ^ Sea! Welding. This method .involves direct fillet welding of the attachment base plate to the towet• and requires removal of the surface coating .from the .heat-affected area of the attached component and tower before placing a full fillet weld around the perimeter of the base metal. Heat damage caused by welding usually makes cleaning and repainting the mounting surface and the reverse side necessary. Water on the backside of the tower (immersion surface) can dissipate the welding heat and prevent coating damage. Welding the attaclnnent plate to the tower pro- vides glow fatigue-prone method for the tower's base metal and attachment. It's recommended that attached plate corners be radiused to reduce stress concentration. OWNER AND TENANT CONCERNS A tenant's engineer usually selects the attachment method based on the integrity of the tower attachment after installa- tion. However, this doesn't consider how the attachment method affects the tank's coating integrity or installation schedul- ing and costs. A tower owner's concerns rest in maintaining the structural integrity of the facility and long-term serviceabil- ity of its protective coating. Winter con- struction usually .limits repairs to surfaces damaged by welding, which leaves sur- face areas unfinished and exposed. This can lead to coating damage outside the initial area, requiring additional time and costing the contractor more to make nec- essary .repairs. .Aside from structural considerations, the decision to use bolting or stud-welding can aeate a positive situation for the owner and tenant. iJpon application, these methods create the least amount of initial damage to a tower and help the contrac- tor and tenant save time and money. Mak- ing these .issues a primary concern can result in a win-win proposition. Many of these issues can be addressed by level- aping comprehensive specifications and requiring review by a qualified inspector. STUDY PREPARATION With these issues in mind, a study was conducted to determine if stud-welding or bolting can be used without compro- mising an owner's facility and still meet tenant scheduling and budget goals. The 20 OpFlocv October ?009 www.awwa.or;/opFlow I~ ,, Daniel 1. Zienty is eviih Short Elliott Hendrickson (www.sehinc.com). St. Paul. Minn. Z 0 a study incorporated variations to the stud- welding and bolting fastening sequence and tested five sample bracket attachment methods in a controlled environment that simulated typical exterior exposure: ® Panel 1, stud-welding a painted bracket to the tank ~~ith a neoprene gasket between components ® Panel 2, stud-welding a painted bracket to the tank with silicone caulk around the edges ® Panel 3, bolting a painted bracket to the tank with a neoprene gasket between components ® Panel 4, bolting a painted bracket to the tank with. silicone caulk around the edges v Panel 5, seal-welding a painted bracket to the tanl: The study used five steel plates, mea- suring 12 in. by 20 in. by '/ in., to simulate the tanl: surface and five steel attach- ment plates, measuring 6 in. by 8 in. by '/ in., to simulate the attachment bralc- ets. Panel plates were prepared. in a shop em~ironment following standard specifica- tions for AWW'A Standard D102-06 Coat- ing Steel Water-Storage Tanlcs. Two coats of atwo-component epoxy were applied, followed by one coat of atwo-component aliphatic polytu•ethane. In addition, shop and field surface- coating specifications were incorporated, inluding surface preparation of the bare metal according to Society for Protective Coatings (SSPC) painting manual specifi- cations for cleanliness (2-3 mil profile), followed by application of prune and intermediate coats of epoxy (4-6 mils dit) and a finish coat of polyurethane (2-3 mils dit) based on compatibility with the tank's existing coating system. Inspections were conducted by a National Association of Corrosion Engineers-certified. inspec- tor during each phase of the process. Panels 1 and 2, Stud-Weld Attachment. For assembly, the 12-in. by 20-in. by 'L;-in. plates were marked. for stud location, and spot areas were ground down to expose bare metal. Studs were shot in two loca- tions, and bare areas were touched up with aspray-on cold galvanizing product. Attachment plates were fastened using nylon washers, followed by stainless steel and. lock washers and stainless nuts (Grade F593C). Panel 1 was assembled by placing a neoprene gasket between the two plates prior to fastening. For Panel 2, the two plates were in direct contact with a bead of silicone caulking placed around the edges to provide a seal. Panels 3 and 4, Bolt Attachment. Assembly of Panels 3 and 4 required drilling holes in the base of each metal plate in two locations each. Each hole was mechanically cleaned to remove any burrs or sharp edges. The bare meta} was then sprayed with a cold galvanizing product. Panel 3 was assembled by plac- ing aneoprene gasket between the two plates prior to fastening. For Panel 4, the two plates were in direct contact with a bead of silicone caulking around the edges to provide a seal. Grade A325 bolts and washers were used for fastening in the same sequence as used for Panels 1 and 2. Panel 5, Seal••Weld Attachment. For Panel 5, the edges of the attachment plate were masked to simulate field con- ditions (weld-area preparation). Follow- ing shielded metal arc welding, areas damaged in the heat-affected zone (both plates and plate tank/backsides) were mechanically cleaned according to SSPC power-tool leaning specifications to establish a minimum profile and feather- ing of the intact coating. After prepara- tion, the exposed areas were covered. with tvvo coats of epoxy and polyurethane. Final inspection of each assembly was conducted Uefore preparing the panels for shipment to the test facility. LABORATORY TESTS Laboratory testing compared exterior exposure performance of the bracket assembly coating repairs using capacitor- studs, bolted assemblies, and seal-welded assemblies. Lab personnel applied vinyl tape around the edges and backs of the panels to protect the surfaces from the elements. The panels were then subjected to six cycles of corrosion weath- ering, according to American Society for Testing and Materials standards. The large panels were fitted horizon- tally into a qualitative ultraviolet (QW) accelerated weathering tester without panel racks. In some cases, the panels were made slightly wider by bending an aluminum panel around the edge to form a "V." This allowed the panels to lie on the edge of the QLTV cabinet opening. Open areas in the cabinet were masked with bare aluminum panels. The panels were then photographed and rated at cycles 3 and 6. ti~~~ w.ac~~'a.or;;/opFlo~e October 2009 Opflo~r 21 T~~ atta~hm~aat rn~th®d gtorage 'I"ank Integrity ~~®u~d b~ based ®~ ®veras~ c®st-b~nefet t® the tenant and tank ®vvnea~, Corrosion Wea#hering R®sults Stud-weld attachmerits'for sample panels 1 and 2 showed exteristve~rust-hleedsfrom the stud,ifself: Fix the problem by placing Flexible • .. pfasfic caps; over the,'studs. ~ ' ' -Panel 1 Panel 2 . _ Panei ~3 Panel ~ Paneh$: ; 4' ~', m. m' ~ -. d' I• a RESULTS All penetrations (holes) were inspected following plate separation to check for signs of early rusting, undercutting, or other modes of coating system failure around the edges. i`Io failures were iden- tified on any of the test panel plates. Panels 1 and 2, Stud-Weld Attachment. Sample Panels 1 and 3 showed extensive rusting at cycles 3 and 6. However, the observed rusting was attributed to rust- bleed coming from the stud itself. When the plates were separated, Panels 1 and 2 showed no rusting on either plate sur- face. In addition, no rusting was observed from contact with the neoprene gasket or direct contact with the edges sealed with silicone. Panels 3 and 4, Bolt Attachment. Similar results were observed on the outer face of test Panels 3 and 4, where oxidation appeared limited to the fastener materials. It's possible that the bolts themselves pro- vided some sacrificial protection. When the panels were taken apart, results sim- ilar to those observed in test Panels 1 and 2 wet•e shown; there was no rust- ing of plate surfaces in contact with the neoprene gasket. Minor pinholing was observed in Panel 4 where the edges were sealed with silicone caulk. Panel 5, Seai-Weld Attachment. Minor rusting from pinholing was observed on the front and back of the panel in the heat-affected zone, which appeared to be the result of weld spatter not fully removed. THE BOTTOM LINE Because of its structural properties, seal- we(ding has been the preferred method for attaching support brackets for tele- communications equipment. However, the damage caused to [he coating sys- tem, adjacent areas, and reverse-side immersed surfaces can be severe. The damage can result in additional time and costs related to tank draining, steriliza- tion, and spot repairs. In addition, recon- ditioning damaged areas may require equipment remobilization and temporary sector shutdowns. In simulated testing of exterior con- ditions, results confirmed that properly painted and fastened stud-welding and bolt-attachment methods can perform as well as seal-welded attachments. Bolt attachments should always be installed opposite a dry tank interior, and both methods must include strict adherence to specifications regarding shop surface preparation, painting, and inspection. In i~i~ f it , pN .1 4 :.. ; s iM~~ F~ ~ '~ j addition, placing a i/.i6-in. neoprene gas- ket between the painted tank and bracket plate surfaces may provide better protec- tion against corrosion than applying sili- cone caulk. Although extensive rust-bleed was observed on plate surfaces from rust- ing copper studs, the problem can be remedied by placing flexible plastic caps over the studs. The type and sequencing of the nylon washer fasteners played an important role in preventing corrosion, especially around drill holes. The attachment method should be based on overall cost-benefit to the tenant and tank owner. For the tenant, following the prescribed attachment fas- tening variations promotes on-time site operation. Also, variations reduce proj- ect costs and the potential for weather- related punch-list items. For the owner, using the proper attachment and repair methods ensures tank and protective coating integrity. ,, Author's Note: Thanks to the follow- ing for their assistance: AFB Welding & Constrtcction, Ham Lake, !Minn.; lndtts- trial Painting Specialists, Hugo, !Minn.; Vinco, Forest Lake, Nlinn.; and Shertvin- Willianas, Bttrnso~ille, rYlinn., ctnd War- rensville Heights, Ohio. 22 OpFlow October 2009 www.awwa.orn/opFlow Elk River Municipal Utilities Memorandum To: Elk River Utilities Commission Jdui Dietz ~~ From: David Berg Reviewed By: Terry Maurer Date: 11/5/2009 Subject: Winter Water Shut Offs -Foreclosure Tax Assessments With winter approaching we attempted to shut off several water services and were unable to do so. We then tried to make contact with property managers and could not reach anyone. Three excavating companies turned in bids to fix the curbstops. Moores Excavating Inc. from Big Lake had the low bid. They have now repaired the services and the properties have their water shut off. The fees will be assessed on the property taxes for the future resident to pay. With this proactive stance on water shutoffs, we are hopeful that our community will see a lessened occurrence of property damage to vacant homes. Elk River ---~ Municipal Utilities Memorandum To: Etk River Utilities Commission Jotm Dielz nrs+~tt~ From: David Berg Reviewed By: Terry Maurer Date: 11/5/2009 Subject: Rich Cline Resignation We have received a resignation from Rich Cline. His last day with ERMU is November 13`h, 2009. Rich has accepted a position with the City of Anoka. Terry Maurer and I have been discussing options for the replacement of Rich. We have solicited input from Pete and Angela. Since we are about to enter the slow time of the year with the winter months. We do not believe there is any rush to replace Rich immediately. We would like to continue to consider our options, based on 2010 and future workloads. We plan to come back to the Commission near the end of the first quarter of 2010 with a recommendation and seek permission to implement a replacement strategy. '~Ji Elk River -~-~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 November 6, 2009 TO: Elk River Municipal Utilities Commission John Dietz Jerry Gumphrey Daryl Thompson FROM: Mark Fuchs SUBJECT: Staff Update -Electric Department Phone: 763.441.2020 Fax: 763.441.8099 The following is a summary of projects and/or updates over the past several weeks: 1. We are working on fixing some of our switched capacitor banks. 2. Completed 500 mcm at Highway 101 road crossing by Waterfront East in Otsego. 3. The City Street Department helped put in the storm sewer for the parking lot at the Power Plant. We could not have done it without their help! 4. Completed installing wire and making up Twin Lake Estates 2°a development. 5. Received three applications for residential services. 6. Continued working on Simonet Drive rebuild. 7. Continued working on Xenia and Tipton Avenue rebuilds. 8. Continued working at Area 23 tap rebuilds. 9. MMUA came in for a day and worked on their spec book. Elk River Municipal Utiliries 13069 Orono Parkway . P.O. Box 430 Phone: 763.441.2020 Elk River, NIN 55330-0430 Fax: 763.441.8099 TO: Elk River Utilities Commission John Dietz Jerry Gumphrey Daryl Thompson FROM: Wade Lovelette SUBJ: Staff Update -Technical Services Department The following is a summary of projects and/or updates over the past several weeks: The locating department had a total of 236 locate tickets for October. Some of them are meets which require several trips back to the same area as needed to mark utilities. 2. The Metering Department continues with weekly and monthly substation checks, changing out meters to the radio read meters, and doing the monthly power bill. While using the infrared camera, the metering dept discovered three elbow arresters overheating in two 3-phase transformers. The Line Department was able to change them out before they failed. The Security Systems Department had a total of 63 phone contacts, 20 personal visits, 20 systems quoted, 16 sales made, 13 installs completed and 17 service calls for the month of October. We also had one non-monitored system install and one system prewired. 4. Map books continue to be updated daily as crews add or change items in them. Richard Wagner has also been working on drawing up the MMUA spec book on AutoCAD and getting those drawings to MMUA. 5. Power plant staff has performed the monthly run of the generators and everything looked good. Steve Ziemer is working on a written lock-out tag-out procedure on every piece of equipment within the power plant. This is required by OSHA. He found a broken electric cut-off switch that needs to be replaced by an electrician. 6. The parking lot at the power plant has been blacktopped and finished. It looks very nice and it looks as if it has resolved the drainage issue. I would like to extend a big thanks to Phil Hals and the City Street Department for helping us out and for all who helped with this project.