3.2. ERMUSR 07-14-2009 - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission June 9, 2009 4.2 Review and Consider Dollar Savings and PCAs At the May 12, 2009, Elk River Municipal Utilities Commission meeting, John Dietz directed staff to calculate employee related cost savings. The calculation was to include cost savings from staff restructuring, non replacement of employees, and the delay/denial of budgeted wage actions. John Dietz stated he would like to see the employee related cost savings used to directly offset any PCAs that could be charged to the customer. Staff presented the information to the Commissioners and reminded them that there has not been a PCA charged to customers in 2009. Discussion followed. John Dietz asked Commissioners if they would like to put the savings towazd next years rate increase. Jerry Gumphrey said it would be a wise idea, Daryl Thompson concurred. Consensus was to save the funds for next years budget. 4.3 Review and Consider Wholesale Power Sunnly Outions Currently Central Minnesota Municipal Power Agency (CMMPA), with the assistance of R.W. Beck, is conducting a study of ERMU's power supply needs as related to the Big Stone II Power Plant project. This study is covered under the CMMPA Associate Membership ERMU has entered into per the Commissioners direction on May 12, 2009. This study will be completed in time for presentation to the City Council on June 15, 2009. Lori Johnson said the agenda for the June 15~' City Council meeting is long. She suggested a Special Meeting with City Council at 5:30. Troy Adams said he will check with R.W. Beck to see if this would work for them. Jerry Gumphrey moved to call for a Special Meeting with Elk River City Council at 5:30 Monday, June 15, 2009. Daryl Thompson seconded the motion. Motion carried 3-0. 4.4 Follow-up Review of City Sewer Connection Ordinance and Policy (Verbal) Lori Johnson briefed the Commission on the recent City Council work session regarding the City Sewer Connection Ordinance. The consensus was to not enforce unless it became a health issue. The Commission agreed to follow their lead and not enforce water connections as well. 5.1 Review Annual URGE Test ERMU operates and maintains four diesel generation units at the power plant located on Main Street by Orono Lake dam. These units are contracted to Great River Energy (GRE) through a Power Transaction agreement at the current price of $2.75/kw/month based upon the proven capacity from the annual URGE test. The current contract that expired October 31, 2005, is extended on an "evergreen" basis which allows the contract to extend the termination date on a one year incremental basis unless notice is given by either ERMU or GRE by April 1St