09-08-2015 ERMU MIN - Laserfiche WebLink

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Troy Adams presented the 2016 Capital Projections, Capital Projects and Equipment Purchases and the Conservation improvement Plan. Notable items for the Electric Department are Territory Acquisition costs, a new feeder to the Natures Edge Business Park, replacing dump truck#16, a potential new substation and feeder for data center growth, and construction/renovation of the field services building. Troy explained that a few of these projects could be financed through reserves or bonds; so as not to have a direct effect on our rate design. There was further discussion on the projects,the priority,and the manpower required. Notable items for the Water Department are the construction of a new filter plant for well #9 and construction/renovation of the field services facilities. We would plan to pay for the well project with reserves and trunk funds and the field services project through bonds. John Dietz had a question on the money budgeted for the Jackson Street Water Tower restoration project. Staff responded. A notable item for the Administration and Technical Services Department is a new in house server for NISC. Theresa Slominski shared that when we converted over to NISC we had the option to go with a Cloud based Application Service Provider(ASP) or to have our own server in house; at that time we decided to go with the less expensive cloud based service. Theresa shared the challenges we've experience since we switched over to the ASP and what it would take to bring it back in house. There would be numerous advantages to having it in house and we may have the option of using the city's existing server. Theresa also provided costs for purchasing our own designated hardware. There was further discussion. John Dietz had a question on the $10,000 line item for City Hall/Utility Fitness Room. Staff responded. There was discussion on the $240,000 budgeted for the Landfill expansion project. Tom Sagstetter went over the Conservation Improvement Program (CIP) Budget. He shared that our energy savings goal mandated by the state was increased to 2.3 million kW hours, so the rebate budget is about$85,000 higher.As we would normally have a hard time spending the rebate dollars, we're pleased to have some of those funds available for our newly acquired Connexus customers that meet the rebate requirements. 5.2 Minnesota Municipal Utilities Association Annual Summer Conference Update The Minnesota Municipal Utilities Associations (MMUA)Annual Summer Conference was held in Pequot Lakes, MN. An MMUA board meeting was held prior to the conference and a business meeting of the membership was held in conjunction with the conference. Troy Adams provided a memo recapping the conference highlights and important topics. He also shared that a 1.5%MMUA dues revenue increase and modified dues structure was approved. The changes result in a 0.37%dues increase for ERMU in 2016. Troy stressed the value added benefits of our membership with MMUA. Page 4 Regular meeting of the Elk River Municipal Utilities Commission September 8,2015