10-09-2018 ERMU MIN - Laserfiche WebLink

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presented four different options and talked through the pros and cons of each of them. The Commission questioned why someone would want to opt out of AMI. Staff and Attorney Beck responded. There was discussion. Staff suggested offering an option that socializes the costs associated with the meter change out where the customer covers 50% of the cost, and ERMU covers the other 50%; there would also be a monthly manual meter reading fee that would be passed along in its entirety to the customer. After further discussion, the Commission supported the idea of an opt -out program and directed staff to do some further research and bring back some dollar amounts on the cost to offer the program for both water and electric. Ms. Nelson shared that staff is considering implementation of a residential application fee to cover the costs associated with credit checks, meter reading, and account setup. She stated that this is a standard practice amongst utilities. Ms. Nelson presented what three other utilities charge for residential application fees; the fees ranged from $15.00 to $21.00. Ms. Nelson also spoke to the residential application process and how it is currently handled. She shared that in moving forward we are looking at utilizing an online application process that is being rolled out by NISC, and that may be an opportune time to implement the fee. The Commission had a few questions. Staff responded. The Commission was open to the idea of a $15.00 application fee. Mr. Adams recommended waiting to see how the new online application software operates before staff formulates a policy and implements the fee. The Commission concurred. Mr. Adams noted that in 2019 staff will be going through and verifying our philosophy of allocation of cost, and aid to construction for water and electric fees, and analyzing that for consideration in the 2020 fee schedule. 5.4 Landfill to Gas Electric Generation Facility Mr. Sagstetter stated that as part of the ongoing evaluation of the Elk River Landfill Gas Plant (LFGP) generating facility, staff has been evaluating several different scenarios for operating the facility. For each scenario, other than closing the facility in 2018, the decisions on future operations significantly impact the decisions to spend considerable funds on engine replacements. ERMU met with Waste Management on October 5 to discuss the operation of the plant after the current purchased power agreement, gas purchase agreement, and operation and maintenance contracts expire on October 31, 2022. Mr. Sagstetter provided an overview on the key questions that were addressed. He stated that based on the discussions, and Waste Management verbally agreeing to offer ERMU right of first refusal when the contract expires, staff has moved forward with ordering replacement engine #1. There was discussion. Attorney Beck stated that we need to get something in writing about the right to first refusal. Staff indicated that they were already working with Waste Management on that. 6.0 BUSINESS DISCUSSION 6.1 Staff Updates Page 4 Regular Meeting of the Elk River Municipal Utilities Commission October 9, 2018