3.1.B ERMUSR 08-09-2011 - Laserfiche WebLink

Home Browse Search

Page 3 Regular meeting of the Elk River Municipal Utilities Commission July 12, 2011 Daryl Thompson moved to approve the Transfer Agreement of Delano's share and Resolution per legal council approval of the agreement. John Diets seconded the motion. Motion carried 2-0. 5.1 Review and Consider Water Rate Analysis At the May ERMU Commission meeting, Tim Simon, Finance Director for the City of Elk River, was asked to work with ERMU staff to review the tiered water rate structure and explore the option of two tiers versus three, using the model that he created in 2010. Currently there are three tiers for water rates, which were implemented per DNR recommendation, when ERMU asked for a change in appropriations. The actual enforceable requirement is only for two tiers. ERMU made the change in the spirit of water conservation and not revenue enhancement. The change was made "revenue neutral" with the highest water users paying a premium for their excessive water use. By removing the third tier, there would be a revenue shift to other users, or an overall reduction to revenue. Theresa Slominsld presented different scenarios and reviewed the cash flow projections. Discussion followed. Consensus was to not touch the 1 ~` tier water mte. Some of the options discussed were to encourage installation of the Smart System then they would not be chat~ed the 3`~ tier water rate, or possibly a 5% discount to the large commercial users that go into the 3 tier. Theresa Slorninski was directed to run a few more calculations and bring back to the August ERMU Commission meeting when all Commissioners are present. John Dietz thanked Theresa Slominski, Tim Simon, and Lorrie Franz for all their hard work on this water rate analysis. 5.2 Review sud Consider Well #9 Water Main Proiect Bids The 2011 budget contained a project to install additional water mains. The water main additions will improve the ability for ERMU to use Well #9 effectively. On July 6, 2011, bids were opened for this project. Troy Adams informed the Commission that this project could be funded by the City of Elk River from water trunk fees held on account for water main projects. John Dietz asked Tim Simon his opinion, Tim Simon responded there were funds available for water main projects. Staff recommends awarding the project to GM Contracting, Inc., the lowest responsive bidder. Daryl Thompson moved to award the Well #9 Water Main Project to GM Contracting, Inc., the lowest responsive bidder, contingent upon the E~ River City Councils approval of funding it with the water trunk fees. John Dietz seconded the motion. Motion tamed 2-0. 5.3 Review and Consider 2°d Quarter Write-Offs The seconded quarterwrite-offs totaling $22,590.69 were presented for review. They consist of $2,219.84 that are written offas uncollectable, $13,383.25 sent to a collection agency for further collection efforts, and $6,987.60 that will be assessed this fall for the assessable services of water, sewer, and trash.