8.2. SR 10-05-2015 - Laserfiche WebLink

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City of Elk az — River Request for Action To Item Number Mayor and City Council 8.2 Agenda Section Meeting Date Prepared by Work Session October 5, 2015 Troy Adams, P.E. — ERMU General Manager Item Description Reviewed by Membership Expansion of Utilities Commission Cal Portner, City Administrator Reviewed by Action Requested Discussion regarding the expansion of the ERMU Commission. Background/Discussion Shortly after the Village of Elk River purchased Elk River Power & Light in 1945, the Council, by provision of Minnesota Statute X412.331, created through resolution the Water, Light, Power, and Building Commission. This commission is now the Elk River Public Utilities Commission with responsibility for the municipal electric and water. The Commission's membership is in accordance with Statue 412.341 "consisting of three members appointed by council." With the recent electric service territory agreement between ERMU and Connexus Energy, ERMU will grow by approximately 2,000 electric meters over the next five years with half of those electric accounts transferred in 2015. ERMU will likely experience a 20% growth over the next five years. At the September 8, 2015, ERMU Commission meeting, the Commission discussed the possibility of Commission membership expansion to provide better representation of the growing customer base. The Commission directed staff to bring the topic to the City Council to gauge support. For statutory cities, three commissioners is specified and expansion requires legislative action. Of the Minnesota municipals with separate commissions, Minnesota Municipal Utilities Association (MMUA) indicated that 50% have 3 -member commissions. The balance has five with the exception of one that expanded to seven. The ERMU Commission expressed consensus that a 5 -member commission would be appropriate for ERMU's size. Statute also specifies that of the 3 -member commission "no more than one member may be chosen from the council membership." This may also be changed through legislation. The Commission stated that if the Council supported expansion the number of Councilmembers allowed on the Commission should be discussed. This type of legislation typically is not controversial. MMUA recommended a local legislator carry the bill to expand membership and the request should be made by the Council. A revision to the city ordinance to accept the expansion should also be completed. As recommended by MMUA, the steps to expand the commission would be as follows: P a w E R E U 6 Y NaA f RE]