3.1.B ERMU MINUTES 11-16-2010 - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission October 12, 2010 started in the near future by an independent parry to get the Jackson Street water tower on the National Register. The grant money of $2650 has been received from the state to pay for this. No action taken. 4.2 Power Supply Options / Resource Planning Update Connexus terminated the 10 year rolling "all requirements" power contract with ERMU in September of 2008. In April 2010, The Utilities Commission authorized entering into Phase 1 of a resource planning study with a coalition which includes Central Minnesota Municipal Power Agency (CMMPA) as a participant. In September 2010, the Utilities Commission authorized entering onto Phase 2 of a resource planning study which includes the release of a Request for Proposal. On September 28, one of the participants announced they would not be participating in Phase 2 of the resource planning study. A reallocation of costs was done and the cost for ERMU changes from $19,444.44 to $25,000. ERMU's future cost for Phase 2b changed from $8,334 to $10,714. This change has delayed the process because many of the participants need to obtain approval from their governing bodies. ERMU staff has informed the Resource Planning Coalition that they will participate in Phase 2 at the $25,000 contingent upon all other remaining participants also agreeing to participate in Phase 2. Troy Adams said there would be a conference call on Friday and he would find out more information. John Dietz voiced his concern and asked Troy Adams to contact the Commissioners to let them know the status. Jerry Gumphrey commented he did not have any concerns moving forward as long as no one else pulled out of the study. Peter Beck suggested Troy Adams send an e-mail to the Commissioners on Friday after the conference call to give them an update rather than calling each Commissioner individually. If at that time there needs to be further discussion, a special meeting could be called. 5.1 Review 2011 Expense and CIT Budget Troy Adams reviewed the 2011 expense and CIP budgets. Great River Energy (GRE) is still in the process of finalizing their 2011 wholesale power rates. GRE is going through an extensive process of budget cuts to be able to achieve a 4% wholesale power cost increase. Due to GRE's budget cuts it is assumed that there will be no reimbursement from them for some of the conservation improvement programs (CIP). Discussion followed regarding the recommended electric rate structure and changes to the rebate program ERMU currently offers. The water department is recommending the water usage rates stay the same but to raise the water connection charge from $2,500 to $3,000 per unit and hire an employee to replace the one that left in 2009. Further discussion followed regarding the Reserves. 5.2 Review and Consider 3'a Ouarter Write -Offs Staff is recommending approval of the third quarter write-offs totaling $9,100.82. Over $2,000 of this will be sent to a collection agency, and over $6,800 of it will be assessed this fall.