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Page 2 <br />Regular meeting of the Elk River Municipal Utilities Commission <br />November 16, 2010 <br />4.1 Review City Ordinance 78-51 WATER USE RESTRICTIONS and Ordinance 78-26 <br />PRIVATE WELLS FOR DOMESTIC USE <br />John Dietz commented on the sprinkling ordinance saying the intentions of the Elk River <br />Municipal Utilities Commission were good but he feels there should have been more consideration on <br />public opinion. The proposed Ordinance for Water use Restrictions for private wells was denied by <br />the City Council. John Dietz went on to say he felt the Ordinance for Water Use Restrictions was <br />rushed and should have been made clear prior to City Council consideration. John Dietz questioned <br />David Berg if the watering ban for ERMU water customers was necessary or if it should be <br />discontinued. Daryl Thompson asked David Berg if surrounding communities have a watering ban. <br />David Berg responded yes, by having a watering ban that is based on odd and even watering it <br />averages out the usage so the water usage is consistent. John Dietz directed David Berg to bring this <br />back to the Commission for further review at the December meeting. <br />The other Ordinance brought to the City council was Section 78-26 Prohibiting Private Wells <br />for Domestic Use on Properties within the City served by the City Water System. John Dietz said the <br />City Council passed the Ordinance 4-1 but felt the City Council would like the Commission to review <br />again. He would like to gather additional information for their review. The top 20 water use <br />customers are over 10% of the water business. John Dietz asked if other Cities have this type of <br />Ordinance, David Berg responded other Cities are working on this type of Ordinance. John Dietz read <br />part of a letter received from Minnesota League of Cities regarding private wells in City Water <br />boundaries. Discussion followed. A couple of private citizens spoke up regarding their opinions of <br />this Ordinance, one being a homeowner and one a commercial user. Peter Beck discussed the <br />information received from Minnesota Department of Health and League of Minnesota Cities, working <br />toward a model ordinance. More discussion followed. John Dietz commented on the debt that <br />ERMU has because of the infrastructure that was put in place to support the high demand for water <br />and if the 20 highest water users drilled their own well how would ERMU support their water system? <br />John Dietz asked Lori Johnson if Tim Simon could run the water model calculation on a $250,000 <br />loss of revenue in the water department and how much the rates would have to be increased due to <br />that loss. This issue will be revisited at the December meeting. <br />4.2 Power Supply Options / Resource Planning Update <br />Troy Adams updated the Commissioners on the activity that has taken place since the last <br />meeting. No action required at this time. <br />4.3 2011 Expense Budget and Rate Analysis Update <br />Staff continues to work on the budget. GRE doesn't expect to have final rates until early <br />December but they are providing updated numbers as they work through their process. ERMU is <br />anticipating an approximate 4% electric wholesale increase from GRE. GRE has indicated they may <br />