3.1.B. MINUTES 12-13-2011 - Laserfiche WebLink

Home Browse Search

Page 3 Regular meeting of the Elk River Municipal Utilities Commission November 15, 2011 under state statutes a private meeting could be called for when discussing sensitive power contact information. Troy Adams will have Peter Beck look into this. Consensus was to move forward with signing the confidentiality agreement. 4.2 Review and Consider Water Conservation Program At the September 13, 2011 ERMU meeting, the water conservation program was discussed. This program will establish incentives for implementing water efficiency measures for commercial customers in 2012. Discussion followed regarding the options available and how many customers this would affect. A brochure will be sent out to the commercial customers that are in the third tier rate. Al Nadeau moved to approve the pilot program for Water Conservation in 2012. Daryl Thompson seconded the motion. Motion carried 3-0. 4.4 Proposed Street Light Installation and Maintenance Policy Revisions and Memorandum of Understanding with the City of Elk River In 2007 ERMU and the City of Elk River established an agreement regarding costs associated with new and replacement street lights related to street rehabilitation and improvement projects. ERMU and the City of Elk River staff have discussed the issues and believe ERMU is better outfitted to perform all the responsibilities related to street lighting. At the October 11, 2011, ERMU Commission meeting, staff was directed to work with the City on developing a Memorandum of Understanding (MOU) regarding Street Light Installation and Maintenance. Discussion followed regarding the effective date of this agreement. Daryl Thompson moved to approve the Memorandum of Understanding agreement effective January 1, 2012. Al Nadeau seconded the motion. Motion carried 3-0. 5.1 Review 2012 Budget For the Electric department expense budget, wholesale power costs make up approximately 74% of operating revenue. Ultimately, the wholesale rates set by Great River Energy (GRE) have an enormous impact on ERMU's rates. GRE has finalized their wholesale power rates for 2012. As the budget stands, there will need to be an increase of 9.12% in revenue recovery. Through the budgeting process the 9.12% increase has been reduced to an approximate overall blended revenue increase of 8.33%. Discussion followed regarding PCA's. Consensus was to pass on the 8.33% rate increase along with the PCA's when they come. The Water department Expense budget has the rates remaining unchanged due to the water rate analysis conducted in the spring of 2010.