06-14-2005 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission June 14,2005 David Berg reported on the Hillside tower project being completed. Last year they were pumping 1,900,000 gallons/day versus this year 1,500,000 gallons/day,this decrease being due to the rain and water conservation. Staff is still flushing hydrants. There were four security systems sold last month. At this time John Dietz questioned the overtime cost. Staff responded due to the workload in the summer,operational staff is working nine hour days. John questioned if there was a need for another person and staff replied the need is only in the summer and not in the winter months. Theresa Slominski informed the Commissioners of the CD's that need to be renewed and the CDARS plan(Certificate of Deposit Account Registry Service) she would like to utilize. This consists of a group of banks that collectively insure the$100,000 FDIC insurance. Theresa also reported on the budgeted amount for the moisture meters being $20,000 and only approximately$15,000 was spent. 5.2 Review Monthly P&L Projections At the May 2005 Commission meeting John Dietz asked questions regarding our electric profit/loss statements. Staff has compiled the information to better explain the month end cash flow. The cash flow projections were compiled from information of prior years history and the budgets. Theresa Slominski reviewed the cash flow expenditures for the electric department. The main expenditures are purchased power,administration expense, and depreciation. The fluctuations on the balance reflect the purchased power paid out one month,yet it is not collected from the customer until the following month. The inventory and capital asset purchases are high in the beginning of the year to prepare for the construction season. The depreciation is accrued monthly instead of yearly and this is based on the life span of the material which is recommended by the auditors and GASB (General Accounting Standards Board). John Dietz questioned whether the water and electric were being allocated by the 25%/75% split, staff responded it is. The water department cash flow was discussed and John Dietz questioned the higher cash in the water department, staff responded it was due to the large bond issuances,and there is some sharing of funds for when the electric department cash flow is lower through the summer months. 5.3 Review Sherburne County Security Contract—verbal Sherburne County Social Services department is seeking approval from their board for the use of our emergency response security system. This consists of a base unit that has an emergency button for the customer to push to get help and a pendant is also available that they can carry with them. Bryan Adams showed the unit and the pendant to the Commissioners. If approved, Sherburne County would determine the need and have us install the system,we would then bill Sherburne County for the monthly monitoring service. No action taken. 5.4 Review Otsego Substation At the May Commission meeting we initially discussed the electrical growth potential in Otsego. We are currently exploring two options,one being to build a feeder from Station 14 paralleling Hwy 169 and Hwy 101 to County Road 39,and the second option is to utilize the Otsego substation. Staff feels upgrading the Otsego Substation is more economical and an easier process. Staff is arranging a meeting with MNDOT to discuss the options,and working with the City of Otsego to determine what requirements and permits are needed to