10-15-2003 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission October 15, 2003 5.2 Review Street Light Maintenance Survey At the request of the Commission, Bryan Adams compiled a survey of other communities regarding street light maintenance. There does not appear to be a norm for the maintenance. Discussion followed on the various ways that street light issues are handled. Further discussion of this topic will continue at a future meeting. Staff, and Commission will continue to seek more information, and agreements that may be on file. No action necessary. 5.3 Review Bulk Water Rate Survey Bryan Adams reported on the survey conducted concerning the rates for bulk water sales. It appears that most communities conduct business as the ERMU has been doing. Normal water rates are in the $1.00 to $2.00 per 1000 gallon range. ERMU charges a flat $10.00 per load. Communities utilizing automatic fill stations charge approximately .25 per 100 gallons, and that appears to be the cost ERMU will use. John Dietz asked for clarification of the procedures, and discussion continued regarding back flow prevention, and illegal use of hydrants. John Dietz further questions whether or not the Utility will be able to realize any pay back for the cost of the installation of the bulk station, and notes that he believes some administrative charges should be put into place. Discussion will continue at a future meeting. 5.4 Update Great River Energy Wholesale Electric Rate Bryan Adams updated the Commission on the first cut at the revised two tier rates being proposed by Great River Energy,resulting in a 7.3% increase to ERMU. The exact rate structure is still undetermined. This item, with associated spread sheet, is for discussion only. James Tralle asked what the driver for the increase in natural gas prices. Staff responded that de-regulation and high demand are the main reasons. No action necessary. 5.5 Review Revised Electric Capital Budget The electric capital budget for 2004 was presented at the September 9, 2003. Since that time, Staff has analyzed the need for additional capacity to support further growth. The revised distribution projects,the time schedule for future projects, and the revised 10 year capital project projections were presented, and discussed. Causes for expansion were further reviewed. The load growth is driving the necessary revisions, as well as continued territory acquisition. The probable need for bonding in 2004, for projects was discussed. No action necessary. 6.1 Review& Consider Proposed Expense Budget Staff presented the detailed revenue, and expense budget, with overviews, comparisons, and summaries. Revenue, and expense increases on a percentage basis were reviewed. A general discussion between Staff, and Commission continued. No action necessary. Final budget will be presented at the November 2004 meeting.