01-15-2008 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission January 15,2008 Troy Adams reported 10 security sales for December. Staff is in the process of implementing the fuse coordination on the electric distribution system. David Berg discussed the maintenance being performed on the well filters. Two different water meters were displayed to discuss their differences and how they operate. The irrigation meters that have been removed for the season are being tested for accuracy. The test well at the new Well#9 site off Twin Lakes Road has been sealed. The contractor has drilled down 454' and has been dynamiting a cavern. The sand is currently being moved off site. Well#7 has been cleaned and a camera will be utilized to document the condition of the well. Theresa Slominski said the ad for the.5 FTE accountant has been filed,and applications will be accepted through January 28"'. James Tralle asked if the MN Job Center was also contacted, staff responded they will contact them with the ad also. The auditors just finished a preliminary audit and are scheduled to return March 5th—7t'. Payment by credit card is being investigated, and a recommendation will be made at a future meeting. A bar code is being implemented on the bills for efficiency and faster entry. 5.2 Review Alternate 3 Tier Water Rate Structure At the December 2007 Elk River Municipal Utilities commission meeting,the water rate increase was discussed. There is currently a 2-tier water rate structure in place with the second step much higher to discourage excessive lawn watering and also promote water conservation. Jerry Gumphrey suggested a 3-tier rate structure to further promote conservation. Staff recommends the 3-tier rate as follows: Residential: First Step Rate of$1.50 per 1000 gallons=0-9,000 gallons per month. Second Step Rate of$3.50 per 1000 gallons=9,000— 15,000 gallons per month. Third Step Rate of$4.00 per 1000 gallons—Above 15,000 gallons per month. Commercial: First Step Rate of$1.50 per 1000 gallons=0— 1.1 X pervious year's average winter period monthly consumption. Second Step Rate of$3.50 per 1000 gallons=Between 1.1 X previous year's average winter period monthly consumption to 1.1 X previous year's average winter monthly consumption +40,000 gallons. Third Step Rate of$4.00 per 1000 gallons=Above 1.1 X pervious year's average winter period monthly consumption+40,000 gallons. James Tralle moved to approve the 3-tier water rate as presented. Jerry Takle seconded the motion. Motion carried 2-0. 5.3 Review Elk River United Methodist Church Water Service Abandonment Agreement At the December 11,2007,Elk River Municipal Utilities commission meeting,we discussed the abandonment of water services by Elk River United Methodist Church. Staff drafted a proposed agreement which was reviewed by the utilities attorney,Ron Black. The agreement only pertains to the three lots the church currently owns.