6.1. ERMUSR 04-13-2010 - Laserfiche WebLink

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Elk River Municipal Utilities 130b9 Orono Parkway ~ P.~, Box 434 Elk River, MN 55330.043n April 7, 2010 To; Elk River Municipal Utilities Commission John Dietz Jerry Gumphrey Daryl Thompson From: Troy Adams Subject: Staff Updates -~ Director of Qperations s Pone: 7b3.441.Z020 Fax; 763,441.$099 The Reserves Policy scheduled for Commission review and consideration this month will potentially have an impact on the results of the water Rate Analysis. Because of this, the Water Rate Analysis results will be postponed until the May Commission meeting. 7 will be attending the April 24~u Sherburne County Commission meeting with Deb Walters from waste Management ~WM}, This is done annually each spring and gives ERMU and WM an opportunity to update the Sherburne County Commission on how the plant has been performing. ~t has been noted that there is imbalance in shared services specific to f lter back flushing} between the wastewater and water utilities. The water used to back flush f lters at the wastewater treatment facility was being metered and billed; however, the water used at a number of wells to back flush filters was being discharged into the sewer system unmetered and unbilled. After discussion between City and Utilities staff, it was concluded both utilities should either be invoiced or both utilities should trade that utility service at no cost. Staff discussion led to the conclusion that it wasn't in the customer's best interest to add additional administration and metering costs for the wastewater and water to s~°ap invoices. Zt is reasonable for both utilities to not invoice the other but have the option to revisit the discussion if at sometime the trading of services becomes and unfair imbalance that would adversely affect our customers. Dn Sunday March 2~~', the Star Tribune ran an article "Have gophers been unfairly accused". This article attached for reference} discusses an Anoka Municipal Utilities customer in a dispute over paying for a damaged underground secondary service. A "secondary" service is the electrical line between the transformer and the meter, Anoka Municipal Utilities customers own this secondary service line and the Utility owns the "primary" distribution line, or the electrical distribution between the substations and the transformers directly serving the customers, Because the customer owns the secondary, if it fails, it is the customer's financial liability. The article makes a broad comparison of municipal utilities to ~cel Energy.