INFORMATION #2 01-05-09 - Laserfiche WebLink

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Page 4 Regular meeting of the Elk River Municipal Utilities Commission December 9, 2008 and caught the thieves and also found merchandise stolen from another RV business. Locates are down for the season so staff has been assisting the meter department, and doing map updates. A leak was discovered on the Virginia transformer at the Waco Sub and another leak was discovered on the Waukesha transformer at Station 14. These are both under warranty. A complaint was received from Centex Homes at Elk River Station regarding their water consumption. Staff will meet with them to rectify the problem. 5.2 Review & Consider 2009 Utility Budget and Rate Changes At the November 13, 2008, Elk River Municipal Utilities Commission meeting, a revised 2009 budget with an assumed 15% wholesale rate increase from Great River Energy (GRE) was presented. GRE ultimately reduced that increase to a 13.2% overall wholesale rate increase following concerns voiced by several of their distribution co-ops and Elk River Municipal Utilities (ERMU). The ERMU budget and rates for 2009 were reviewed. Vance stated that a lot of work and thought was put into the proposed rate increase and a 10% overall increase was all they wanted to pass on, thus decreasing the amount to be contributed to reserves. Jerry Gumphrey asked staff to meet with Elk River Star News so they could do an article on the rates and reasons behind the rate hike. A bill staffer will also be included in their January bill. Jerry Gumphrey moved to approve the proposed Utility rate increases as presented effective January 2009. John Dietz seconded the motion. Motion carried 3-0. Discussion followed regarding the 2009 Capitol Projects. The electric projects have been numbered as to necessity. If funds are not available for the project in 2009 it will be delayed. John Dietz commented he would like to see an update throughout the year on the status of the projects. John Dietz moved to approve the proposed 2009 Capital Budget as presented. Jerry Gumphrey seconded the motion. Motion carried 3-0. 5.3 Review MMUA Safety Compliance Contract As an update, staff is continuing to work towards contracting a safety compliance program for 2009. ERMU and the City of Elk River have paid MMUA for their safety program services through the end of the year. City staff is continuing to research alternatives to MMUA but no official decision has been made to leave MMUA. Because of this, the MMUA safety compliance contract has not been signed. Discussion followed regarding some of the concerns that have not been addressed in the MMUA safety program. Staff recommends continuing with the MMUA safety compliance program contingent upon