10-14-2008 ERMU MIN - Laserfiche WebLink

Home Browse Search

Page 7 Regular meeting of the Elk River Municipal Utilities Commission October 14,2008 for the utility but not necessarily for the City. John Dietz asked if the insurance rates are lower because of this safety program. Lori Johnson affirmed. John Dietz moved to approve the MMUA Safety Management Program contingent that the City of Elk River could cancel out. Jerry Gumphrey seconded the motion. Motion carried 3-0. 6.2 Review Projected 2009 Power Costs Connexus Energy has informed Elk River Municipal Utilities that GRE is in the process of looking at power and energy costs for 2009. Their preliminary numbers reflect a 15% wholesale rate increase. John Dietz asked when there would be a fine number. Jerry Takle has a meeting with Connexus on October 24,2008 to discuss the rate increase. The wholesale rate increase would not be in effect until January 1,2009. This issue was tabled until more information was available. 6.3 Review Proposed 2009 Expense Budget The proposed 2009 electric and water expense budgets were reviewed. The proposed water rates reflect raising the 1st tier water rate by a dime. John Dietz asked if the fixed rate could be changed instead. David Berg responded that a lot of communities have a higher fixed rate than we do. John Dietz directed staff to look into changing the fixed rate and revisit this issue at the next meeting. Discussion followed regarding the water projects slated for 2009. One of the projects entails leaving the existing 4"water main pipe instead of upgrading to the 6"pipe as is usually done. David Berg informed the Commission that the water is good and is not corroding the water main. The pipe in questions has been inspected and is in good condition. 6.4 Review Otsego Line Extension A commercial customer in Otsego is proposing to build a new facility on County Road 39 at the west end of Elk River Municipal Utilities electric system. The location of this facility is currently served with single phase power while the new location will require three phase power. Providing three phase power to this facility would require burying approximately 2,500 feet of conductor. The cost involved with installing three phase electric to this facility would be$53,000 and single phase would only be$8,000. Discussion followed. Jerry Gumphrey moved to charge$53,000 for three phase power,or$8,000 for single phase. John Dietz seconded the motion.