REGULAR MEETING OF THE
UTILITIES COMMISSION
October 13, 2015, 3:30 P.M.
Utilities Conference Room
13069 Orono Parkway, P.O. Box 430, Elk River, MN 55330-0430
763.441.2020 www.elkriverutilities.com @ERMU_MN
AGENDA
1.0 CALL MEETING TO ORDER
1.1 Pledge of Allegiance
1.2 Consider the Agenda
1.3 Recognition of Company Achievement
a. Resource Training & Solutions Well Workplace Award - Angela Hauge and Michelle Martindale
2.0 CONSENT AGENDA (Routine or noncontroversial items. Approved by one motion.)
2.1 Check Register
2.2 Previous Meeting Minutes
2.3 Financial Statements
3.0 OPEN FORUM (Non agenda items for discussion. No action taken during this meeting.)
4.0 OLD BUSINESS
4.1 Electric Service Territory Update
4.2 Payment in Lieu of Taxes (PILOT) and Other Donations to the City of Elk River
4.3 Expansion of the Elk River Municipal Utilities Board of Commissioners
4.4 Environmental Protection Agency Rules affecting ERMU’s Diesel Generation Facility
5.0 NEW BUSINESS
5.1 2016 Budget: Water & Electric Expenses
5.2 2016 ERMU Fee Schedule
5.3 Performance Metrics and Incentive Compensation Policy 3rd Quarter Score Card Update
6.0 OTHER BUSINESS
6.1 Staff Updates
6.2 Set Date for Next Meeting
6.3 Closing of Meeting: “Meeting to be Closed pursuant to MN Statute
13D.05, Subd. 3(c)(3) to develop or consider offers or counteroffers
for the purchase or sale of real or personal property.”
a Call Closed Session to Order
b Discussion
c Adjourn Closed Session
6.4 Adjourn Regular Meeting
Payroll/LaborCheck Register Totals
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Elk River Municipal Utilities
Pay Date: 09/11/2015 To 09/11/2015
Revision: 74512
Pays Job Amount Hours92,247.63 2,738.752 Reg Hrly5,937.54 119.003 Overtime
0.00 0.004 Double Time1,714.40 48.085 On-Call/Stand-by
81.59 0.0024 FLSA89.41 2.5025 Rest Time
752.03 18.5010 Bonus Pay450.00 0.0018 Commissioner Reimb.
0.00 0.00104 Commission Stipend0.00 0.00105 Perf. Metr. Distr.
6,959.30 180.83VAC Vacation Pay3,051.35 88.92SICK Sick Pay
11,466.60 336.00HOL Holiday Pay0.00 0.00HALF Half Vacation Pay0.00 0.001/2S Half Sick Pay
994.67 18.255-2 On-Call/Stand-by/OT22.58 0.0011 Bonus $
631.44 16.00PTO Personal Day0.00 0.001/2P Half Personal Day
Pay Total: 124,398.54 3,566.83
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Payroll/LaborCheck Register Totals
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Elk River Municipal Utilities
Pay Date: 09/25/2015 To 09/25/2015
Revision: 74512
Pays Job Amount Hours104,642.38 3,049.952 Reg Hrly
696.32 13.003 Overtime533.04 8.004 Double Time
1,762.76 48.085 On-Call/Stand-by46.59 0.0024 FLSA0.00 0.0025 Rest Time0.00 0.0010 Bonus Pay0.00 0.00105 Perf. Metr. Distr.
5,243.17 153.98VAC Vacation Pay3,748.49 123.30SICK Sick Pay
0.00 0.00HOL Holiday Pay171.76 8.00HALF Half Vacation Pay48.39 1.501/2S Half Sick Pay
503.34 8.505-2 On-Call/Stand-by/OT0.00 0.0011 Bonus $
1,002.00 32.00PTO Personal Day0.00 0.001/2P Half Personal Day
Pay Total: 118,398.24 3,446.31
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CHECK REGISTER
September, 2015
APPROVED BY:
JOHN J. DIETZ
DARYL THOMPSON
ALLAN E. NADEAU
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
WIRE1029 09/02/2015 154 MINNESOTA REVENUE (ELECTRONIC) 4,095.88PAYROLL TAXES MN STATE618.70PAYROLL TAXES MN STATE
Total for Check/Tran - 1029: 4,714.58
WIRE1030 09/02/2015 152 IRS - USA TAX PMT (ELECTRONIC) 10,190.12PAYROLL TAXES FED & FICA - 8/24/201514,820.14PAYROLL TAXES FED & FICA - 8/24/20151,738.46PAYROLL TAXES FED & FICA - 8/24/20151,846.02PAYROLL TAXES FED & FICA - 8/24/2015
Total for Check/Tran - 1030: 28,594.74
WIRE1040 09/02/2015 9999 LEANN CHIN 82.01NISC LUNCH20.50NISC LUNCH
Total for Check/Tran - 1040: 102.51
WIRE1041 09/02/2015 9999 PIZZA MAN 51.28NISC LUNCH12.82NISC LUNCH
Total for Check/Tran - 1041: 64.10
WIRE1042 09/02/2015 9999 MN ELECTRIC METER SCHOOL - PAYPA 325.002015 ELECTRIC METER SCHOOL
WIRE1043 09/02/2015 9999 MN ELECTRIC METER SCHOOL 325.00ELECTRIC METER SCHOOL
WIRE1044 09/02/2015 9999 LANGFORD TOOL & DRILL 93.60EPOXY
WIRE1045 09/03/2015 9999 POMPEII PIZZERIA 76.62NISC LUNCH19.15NISC LUNCH
Total for Check/Tran - 1045: 95.77
WIRE1047 09/08/2015 9999 123 SIGNUP 40.00APA MEMBERSHIP10.00APA MEMBERSHIP
Total for Check/Tran - 1047: 50.00
WIRE1049 09/08/2015 7463 SELECTACCOUNT 120.00FSA CLAIM REIMBURSEMENTS
WIRE1050 09/16/2015 152 IRS - USA TAX PMT (ELECTRONIC) 10,785.05PAYROLL TAXES FED & FICA - 9/11/201515,579.40PAYROLL TAXES FED & FICA - 9/11/20151,787.01PAYROLL TAXES FED & FICA - 9/11/20151,820.78PAYROLL TAXES FED & FICA - 9/11/2015
Total for Check/Tran - 1050: 29,972.24
WIRE1051 09/16/2015 154 MINNESOTA REVENUE (ELECTRONIC) 4,336.33PAYROLL TAXES MN STATE - 9/11/2015620.86PAYROLL TAXES MN STATE - 9/11/2015
Total for Check/Tran - 1051: 4,957.19
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
WIRE1052 09/11/2015 153 PERA (ELECTRONIC) 15,600.11PERA CONTRIBUTIONS - 9/11/20151,752.70PERA CONTRIBUTIONS - 9/11/2015
Total for Check/Tran - 1052: 17,352.81
WIRE1054 09/11/2015 7463 SELECTACCOUNT 1,474.43HSA CONTRIBUTIONS - 9/11/201575.00HSA CONTRIBUTIONS - 9/11/2015
Total for Check/Tran - 1054: 1,549.43
WIRE1055 09/11/2015 161 MNDCP (ELECTRONIC) 2,500.00MNDCP EPLOYEE CONTRIBUTIONS- 9/11/2227.00MNDCP EPLOYEE CONTRIBUTIONS- 9/11/2
Total for Check/Tran - 1055: 2,727.00
WIRE1056 09/11/2015 160 HCSP (ELECTRONIC) 1,705.88HCSP EMPLOYEE CONTRIBUTIONS- 9/11/2125.19HCSP EMPLOYEE CONTRIBUTIONS- 9/11/2
Total for Check/Tran - 1056: 1,831.07
WIRE1057 09/11/2015 158 VOYA (ELECTRONIC FOR W&A DC PLA 1,734.28DEFERRED COMP CONTRIBUTIONS W&A -
WIRE1058 09/08/2015 9999 APA - NORTHSTAR CHAPTER 40.00APA MEMBERSHIP10.00APA MEMBERSHIP
Total for Check/Tran - 1058: 50.00
WIRE1059 09/15/2015 7463 SELECTACCOUNT 554.45FSA CLAIM REIMBURSEMENTS
WIRE1060 09/14/2015 9999 RADISSON HOTEL - ROSEVILLE 438.30LODGING FOR ELEC METER SCHOOL
WIRE1061 09/14/2015 9999 RADISSON HOTEL - ROSEVILLE 438.30LODGING ELEC METER SCHOOL
WIRE1062 09/11/2015 9999 THE CUSTOMER SERVICE GROUP 62.12SUPPLIES FOR CUSTOMER SERVICE WEEK15.53SUPPLIES FOR CUSTOMER SERVICE WEEK
Total for Check/Tran - 1062: 77.65
WIRE1063 09/09/2015 9999 GROEBNER 374.06FUSING MACHINE - WACO
WIRE1064 09/08/2015 9999 A-Z RESTAURANT EQUIP 881.70COFFEE MACHINE
WIRE1065 09/18/2015 174 MINNESOTA REVENUE SALES TX (ELE 178,179.44SALES AND USE TAX - AUGUST8,521.56SALES AND USE TAX - AUGUST
Total for Check/Tran - 1065: 186,701.00
WIRE1067 09/02/2015 7463 SELECTACCOUNT 50.64ADMIN FEES12.66ADMIN FEES
Total for Check/Tran - 1067: 63.30
WIRE1068 09/17/2015 9999 OLD CHICAGO 32.65TRAVEL EXPENSE/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt25203
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
WIRE1069 09/17/2015 9999 COMFORT SUITES 789.84TRAVEL EXPENSE AWWA
WIRE1070 09/22/2015 7463 SELECTACCOUNT 20.00CLAIM REIMBURSEMENT
WIRE1071 09/17/2015 9999 RAMADA MARSHALL 429.60HOTEL FOR OVERHEAD SCHOOL
WIRE1072 09/17/2015 9999 RAMADA MARSHALL 322.20HOTEL FOR OVERHEAD SCHOOL
WIRE1073 09/17/2015 9999 RAMADA MARSHALL 322.20HOTEL FOR OVERHEAD SCHOOL
WIRE1074 09/17/2015 9999 RAMADA MARSHALL 322.20HOTEL FOR OVERHEAD SCHOOL
WIRE1075 09/14/2015 9999 SHOW ME CABLES 14.93POWER SUPPLY EXTENSION CABLE
WIRE1076 09/15/2015 9999 SCHWEITZER ENGINEERING LABS 387.00TRANSCEIVER
WIRE1077 09/21/2015 3401 UNITED STATES TREASURY 1,295.40PENALTIES FOR LATE TAX DEPOSITS323.85PENALTIES FOR LATE TAX DEPOSITS
Total for Check/Tran - 1077: 1,619.25
WIRE1078 09/01/2015 7463 SELECTACCOUNT 941.75FSA CLAIM REIMBURSEMENTS
WIRE1079 09/24/2015 158 VOYA (ELECTRONIC FOR W&A DC PLA 1,756.77DEFERRED COMP CONTRIBUTIONS W&A-
WIRE1080 09/28/2015 160 HCSP (ELECTRONIC) 1,618.55HCSP EMPLOYEE CONTRIBUTIONS-092820117.95HCSP EMPLOYEE CONTRIBUTIONS-092820
Total for Check/Tran - 1080: 1,736.50
WIRE1081 09/28/2015 161 MNDCP (ELECTRONIC) 2,500.00MNDCP EPLOYEE CONTRIBUTIONS-092820227.00MNDCP EPLOYEE CONTRIBUTIONS-092820
Total for Check/Tran - 1081: 2,727.00
WIRE1082 09/28/2015 7463 SELECTACCOUNT 1,474.43HSA CONTRIBUTIONS - 0928201575.00HSA CONTRIBUTIONS - 09282015
Total for Check/Tran - 1082: 1,549.43
WIRE1083 09/25/2015 153 PERA (ELECTRONIC) 14,924.47PERA CONTRIBUTIONS1,651.32PERA CONTRIBUTIONS
Total for Check/Tran - 1083: 16,575.79
WIRE1084 09/25/2015 9999 FOXIT PDF EDITOR 85.44PDF EDITOR21.36PDF EDITOR
Total for Check/Tran - 1084: 106.80
WIRE1085 09/29/2015 7463 SELECTACCOUNT 442.30FSA CLAIM REIMBURSEMENTS
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
WIRE1086 09/30/2015 152 IRS - USA TAX PMT (ELECTRONIC) 10,143.82PAYROLL TAXES FED & FICA - 0930201514,801.36PAYROLL TAXES FED & FICA - 093020151,621.49PAYROLL TAXES FED & FICA - 093020151,712.64PAYROLL TAXES FED & FICA - 09302015
Total for Check/Tran - 1086: 28,279.31
WIRE1088 09/27/2015 9999 DELTA AIRLINES 20.00MIC - BAG CHECK5.00MIC - BAG CHECK
Total for Check/Tran - 1088: 25.00
WIRE1089 09/27/2015 9999 DELTA AIRLINES 20.00MIC - BAG CHECK5.00MIC - BAG CHECK
Total for Check/Tran - 1089: 25.00
WIRE1090 09/27/2015 9999 DELTA AIRLINES 20.00MIC - BAG CHECK5.00MIC - BAG CHECK
Total for Check/Tran - 1090: 25.00
WIRE1091 09/27/2015 9999 ST LOUIS TAXI COMPANY 40.90MIC - TAXI FROM AIRPORT10.22MIC - TAXI FROM AIRPORT
Total for Check/Tran - 1091: 51.12
WIRE1092 09/28/2015 9999 PAPPY'S SMOKEHOUSE 51.10MIC - 92815 DINNER12.77MIC - 92815 DINNER
Total for Check/Tran - 1092: 63.87
WIRE1093 09/28/2015 9999 HYATT STARBUCKS 9.34MIC - STARBUCKS2.34MIC - STARBUCKS
Total for Check/Tran - 1093: 11.68
WIRE1094 09/30/2015 9999 BUDWEISER BREWHOUSE 50.69MIC - 93015 DINNER12.67MIC - 93015 DINNER
Total for Check/Tran - 1094: 63.36
WIRE1095 09/30/2015 9999 ST LOUIS AIRPORT TAXI 39.33MIC - TAXI TO AIRPORT9.83MIC - TAXI TO AIRPORT
Total for Check/Tran - 1095: 49.16
WIRE1096 09/30/2015 9999 DELTA AIRLINES 20.00MIC - BAG CHECK5.00MIC - BAG CHECK
Total for Check/Tran - 1096: 25.00
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
WIRE1097 09/30/2015 9999 DELTA AIRLINES 20.00MIC - BAG CHECK5.00MIC - BAG CHECK
Total for Check/Tran - 1097: 25.00
WIRE1098 09/30/2015 9999 DELTA AIRLINES 20.00MIC - BAG CHECK5.00MIC - BAG CHECK
Total for Check/Tran - 1098: 25.00
WIRE1099 09/30/2015 9999 DELTA AIRLINES 20.00MIC - BAG CHECK5.00MIC - BAG CHECK
Total for Check/Tran - 1099: 25.00
WIRE1100 09/30/2015 9999 PARK MSP 57.60MIC - AIRPORT PARKING14.40MIC - AIRPORT PARKING
Total for Check/Tran - 1100: 72.00
CHK69197 09/01/2015 229 SHERBURNE COUNTY ZONING 100.00COUNTY ROAD 1 PERMIT
CHK69198 09/02/2015 229 SHERBURNE COUNTY ZONING 100.0011337 BROOK RD PERMIT
CHK69199 09/03/2015 150 ALARM PRODUCTS DIST, INC 473.20SECURITY PRODUCTS159.61Rare Earth Mags
Total for Check/Tran - 69199: 632.81
CHK69200 09/03/2015 4531 AT & T MOBILITY 1,213.20MOBILE PHONES303.30MOBILE PHONES
Total for Check/Tran - 69200: 1,516.50
CHK69201 09/03/2015 96 BASIN ELECTRIC POWER COOPERATIV 47.88VPN SERVICE FOR IVUE11.97VPN SERVICE FOR IVUE
Total for Check/Tran - 69201: 59.85
CHK69202 09/03/2015 2920 BATTERIES PLUS BULBS 60.94BATTERIES
CHK69203 09/03/2015 8552 BECK LAW OFFICE 832.20ATTORNEY BILLING208.05ATTORNEY BILLING
Total for Check/Tran - 69203: 1,040.25
CHK69204 09/03/2015 9 BORDER STATES ELECTRIC SUPPLY 137.69GLOVES
CHK69205 09/03/2015 180 CENTER CUT MEATS 810.00EVENT GRATUITY
CHK69206 09/03/2015 11 CITY OF ELK RIVER 63.68PARTS & LABOR FOR UNIT #13127.81PARTS & LABOR FOR UNIT #43
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
52.25PARTS & LABOR FOR UNIT #1137.55PARTS & LABOR FOR UNIT #457.56PARTS & LABOR FOR UNIT #20
1,059.33PARTS & LABOR FOR UNIT #33264.83PARTS & LABOR FOR UNIT #3351.66PARTS & LABOR FOR UNIT #14
105.01PARTS & LABOR FOR UNIT #1826.25PARTS & LABOR FOR UNIT #18
160.90Truck decals160.10100 Year Anniversary parade banner
Total for Check/Tran - 69206: 2,266.93
CHK69207 09/03/2015 151 CONNEXUS ENERGY 46.69MO. STATEMENT
CHK69208 09/03/2015 2404 CORNERSTONE FORD 30,672.82Ford F250
CHK69209 09/03/2015 3599 JOHN DIETZ 14.91HOG's Trophy Presentation - Rockwood's
CHK69210 09/03/2015 23 ELK RIVER MUNICIPAL UTILITIES 3,025.250701 TO 08012015 STMT48.100701 TO 08012015 STMT
300.620701 TO 08012015 STMT2,224.570701 TO 08012015 STMT
19,180.800701 TO 08012015 STMT412.500701 TO 08012015 STMT
Total for Check/Tran - 69210: 25,191.84
CHK69211 09/03/2015 122 ELK RIVER WINLECTRIC CO 179.76GARY ST TOWER LEVITON19.45Conduit straps
Total for Check/Tran - 69211: 199.21
CHK69212 09/03/2015 8247 FERGUSON WATERWORKS #2516 1,140.68HYDRANT PAINT AND OIL
CHK69213 09/03/2015 28 G & K SERVICES SERVICES 100.66RUGS & TOWELS25.17RUGS & TOWELS
Total for Check/Tran - 69213: 125.83
CHK69214 09/03/2015 80 GRAINGER 156.10VALVE
CHK69215 09/03/2015 5118 GRAND RENTAL STATION 87.49COTTON CANDY MACHINE - 100TH ANNIV
CHK69216 09/03/2015 809 HAWKINS, INC. 1,926.40CHEM
CHK69217 09/03/2015 6836 INNOVATIVE OFFICE SOLUTIONS, LLC 23.52Office supplies5.88Office supplies
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
16.41OFFICE SUPPLIES4.10OFFICE SUPPLIES
Total for Check/Tran - 69217: 49.91
CHK69218 09/03/2015 8083 JT SERVICES 17,484.0023' Fiberglass Poles & 30' Fiberglass Po
CHK69219 09/03/2015 185 MCR PERFORMANCE SOLUTIONS 22,075.45MISO CONSULTATION
CHK69220 09/03/2015 194 METRO TENT RENTAL 561.09EVENT TENT RENTAL
CHK69221 09/03/2015 16 MINNESOTA DEPT OF HEALTH 7,587.48QTRLY SERVICE CONNECTIONS
CHK69222 09/03/2015 573 NCPERS MINNESOTA 192.00LIFE INSURANCE
CHK69223 09/03/2015 8606 NEOPOST USA INC. 1,146.55LETTER OPENER286.64LETTER OPENER
Total for Check/Tran - 69223: 1,433.19
CHK69224 09/03/2015 450 RUSSELL SECURITY RESOURCE INC. 396.12Service shop door, install new lock/keys
CHK69225 09/03/2015 20 SLACK PAINTING 6,000.00AUBURN WATER TOWER WATERBLAST
CHK69226 09/03/2015 6107 STUART C. IRBY CO. 103.42GLOVES AND GLOVE REPAIR KITS
CHK69227 09/03/2015 8948 TRYCO LEASING INC. 112.19toshiba28.05toshiba
Total for Check/Tran - 69227: 140.24
CHK69228 09/03/2015 55 WESCO RECEIVABLES CORP. 702.96Cold Shrink Splice Jacket1,028.85Loadbreak Connectors
Total for Check/Tran - 69228: 1,731.81
CHK69229 09/03/2015 189 GARY WESTERLUND 1.00GRANT EASEMENT 71-131-2438
CHK69230 09/03/2015 8046 WHOLE ENERGY & HARDWARE 5,690.00CONSERVATION IMPROVEMENT PROG PU
CHK69231 09/03/2015 1074 WINDSTREAM 350.01OFFICE TELEPHONE87.50OFFICE TELEPHONE
Total for Check/Tran - 69231: 437.51
CHK69232 09/03/2015 8213 ZIMMERMAN TODAY 148.00SEPT ADS
CHK69233 09/03/2015 229 SHERBURNE COUNTY ZONING 100.00CTY RD 12 CONNEXUS TAKEOVER
CHK69234 09/03/2015 3599 JOHN DIETZ 107.65MMUA SUMMER MTG26.91MMUA SUMMER MTG
Total for Check/Tran - 69234: 134.56/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt25203
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69235 09/03/2015 5987 DARYL THOMPSON 107.65MMUA SUMMER MTG26.91MMUA SUMMER MTG
Total for Check/Tran - 69235: 134.56
CHK69236 09/03/2015 685 ADI -920.00GSM Rebate685.67security products398.74Wireless Glassbreaks
2,335.55Security System PartsTotal for Check/Tran - 69236: 2,499.96
CHK69237 09/03/2015 198 AMERICAN PUBLIC WORKS ASSOCIATI 495.00UTILITIES INSPECTOR SCHOOL
CHK69238 09/03/2015 2920 BATTERIES PLUS BULBS 15.86BATTERIES FOR SECURITY50.23BATTERIES FOR SECURITY
Total for Check/Tran - 69238: 66.09
CHK69239 09/03/2015 9 BORDER STATES ELECTRIC SUPPLY 562.10#1 Crimp279.61Cold Shrink Splice
Total for Check/Tran - 69239: 841.71
CHK69240 09/03/2015 428 BOYER TRUCKS 751.46BUCKET TRUCK #4 REPAIR
CHK69241 09/03/2015 36 CROW RIVER FARM EQUIP CO 268.45COVER HOLES IN POWER PLANT
CHK69242 09/03/2015 9192 CUB FOODS ELK RIVER 6.21COOKIES - COMM MTG1.55COOKIES - COMM MTG
Total for Check/Tran - 69242: 7.76
CHK69243 09/03/2015 212 DAKOTA SUPPLY GROUP 31.50Shackle Keys348.60Shackle Locks468.00Utilco covers & connectors
Total for Check/Tran - 69243: 848.10
CHK69244 09/03/2015 9354 DIRECT PORTABLE TOILET SERVICES L 80.34RIVER TOILET SERVICE
CHK69245 09/03/2015 197 ECOVA, INC 1,116.50ROOFTOP UNIT REPLACEMENT
CHK69246 09/03/2015 8840 ELITE MEDIA DESIGN OF ELK RIVER 59.60MONTHLY HOSTING OF WEBSITE59.60MONTHLY HOSTING OF WEBSITE29.80MONTHLY HOSTING OF WEBSITE
Total for Check/Tran - 69246: 149.00
CHK69247 09/03/2015 122 ELK RIVER WINLECTRIC CO 22.71DIAG CUT PLIERS
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09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69248 09/03/2015 9997 FIELD ASSET SERVICES LLC 150.03DEP To AP
CHK69249 09/03/2015 8949 FS3 INC. 91.21Headband Ear Plugs
CHK69250 09/03/2015 308 HASSAN SAND & GRAVEL 182.38TOPSOIL
CHK69251 09/03/2015 6836 INNOVATIVE OFFICE SOLUTIONS, LLC 41.61OFFICE SUPPLIES2.88OFFICE SUPPLIES
32.58ENVELOPES FOR HISTORY BOOKSTotal for Check/Tran - 69251: 77.07
CHK69252 09/03/2015 8083 JT SERVICES 284.72Splice Cleaner Polywater
CHK69253 09/03/2015 167 KODET ARCHITECTUAL GROUP LTD 8,572.50ARCHITECTURAL FEE
CHK69254 09/03/2015 417 LOCATORS & SUPPLIES INC. 73.77QUIET BANDS
CHK69255 09/03/2015 188 MARTIES FARM SERVICE INC 81.61ROUND-UP54.5125# SPECIAL
Total for Check/Tran - 69255: 136.12
CHK69256 09/03/2015 145 MENARDS 6.56CONCRETE MIX99.85TOOLS & SUPPLIES7.12CLAMPS
94.61SUPPLIES72.49BROOM & CHALK8.95DRILL BIT
100.69SUPPLIES61.59BOLTS
1,502.24CEILING TILE16.69SHELVES & SUPPLIES
143.74SHELVES & SUPPLIES19.88TOOLS22.73TOOLS24.15HYDRANT SUPPLIES29.74SHOP SUPPLIES16.08BOLTS & THERMOMETER9.03TEE & PLUG5.86SHOP SUPPLIES
13.87SCREWS13.49COUPLERS & BUSHINGS99.20SHOP SUPPLIES7.02TOWER SUPPLIES
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Check /Tran Date
PmtType AmountVendor NameVendor Reference
78.11CAKE STAND45.15TOOLS & SUPPLIES13.38TOWER SUPPLIES3.26TOWER SUPPLIES
50.92PLANT SUPPLIES44.79PLANT SUPPLIES31.37HYDRANT SUPPLIES
5,105.00CFL REBATES51.99PLANT SUPPLIES
Total for Check/Tran - 69256: 7,799.55
CHK69257 09/03/2015 120 NAPA AUTO PARTS 4.70TRUCK #16 SMALL BULB52.37FUSE & FUSE HOLDER
Total for Check/Tran - 69257: 57.07
CHK69258 09/03/2015 186 MIKE O'NEILL 136.80MMUA SUMMER MTG
CHK69259 09/03/2015 106 PERFECTION PLUS, INC. 472.01CONTRACT CLEANING118.00CONTRACT CLEANING
Total for Check/Tran - 69259: 590.01
CHK69260 09/03/2015 45 PETTY CASH 100.00ADD'L CASH FOR DRAWERS
CHK69261 09/03/2015 5056 PLAISTED COMPANIES, INC. 190.64CLASS 5 GRAVEL & BLACK DIRT78.02CLASS 5 GRAVEL & BLACK DIRT
Total for Check/Tran - 69261: 268.66
CHK69262 09/03/2015 71 PRINCIPAL LIFE INSURANCE CO GRAN 4,330.30DENTAL, LIFE & LTD INSURANCE - SEPT 21,183.48DENTAL, LIFE & LTD INSURANCE - SEPT 21,082.58DENTAL, LIFE & LTD INSURANCE - SEPT 2
Total for Check/Tran - 69262: 6,596.36
CHK69263 09/03/2015 32 R&H PAINTING LLC 16,592.0034 Light Poles Painted
CHK69264 09/03/2015 128 RANDY'S SANITATION, INC. 1,019.00WASTE REMOVAL34.28DOC DESTRUCTION0.35DOC DESTRUCTION
Total for Check/Tran - 69264: 1,053.63
CHK69265 09/03/2015 3218 RDO EQUIPMENT 156.56Collar for Drill299.73Drill Statrer Rod181.28Grease for Drill
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
634.20Tru-Bore Mud for DrillTotal for Check/Tran - 69265: 1,271.77
CHK69266 09/03/2015 196 REFRIGERATION SERVICES 127.50DIAGNOSE DEHUMIDIFIER
CHK69267 09/03/2015 566 RIKE-LEE ELECTRIC INC. 3,066.86RIVER RANCH REBUILD METERS/SOCKET
CHK69268 09/03/2015 7972 TOM SAGSTETTER 129.95MMUA SUMMER MTG
CHK69269 09/03/2015 159 SHORT ELLIOTT HENDRICKSON INC. 868.00ELKMU WTP EVAL
CHK69270 09/03/2015 8377 SPRINT 34.99MOBILE PHONES378.94MOBILE PHONES77.97MOBILE PHONES
Total for Check/Tran - 69270: 491.90
CHK69271 09/03/2015 90 TOTAL TOOL 59.855 sided socket79.30Ratcheting Wrench
Total for Check/Tran - 69271: 139.15
CHK69272 09/03/2015 135 WATER LABORATORIES INC 375.00WATER TESTING
CHK69273 09/03/2015 8214 WELCOME WAGON 157.50SECURITY ADVERTISING
CHK69274 09/03/2015 55 WESCO RECEIVABLES CORP. 237.30Copper/Aluminum Connectors384.40Cold Shrink Termination Kit
Total for Check/Tran - 69274: 621.70
CHK69275 09/03/2015 610 WRIGHT HENNEPIN INT'L RESPONSE C 4,553.70MONTHLY MONITORING
CHK69276 09/17/2015 1327 AUTOMATIC SYSTEMS CO 1,171.10ANTENNA TROUBLESHOOTING
CHK69277 09/17/2015 6 BEAUDRY OIL COMPANY 134.48TERRACAIR DEF
CHK69278 09/17/2015 6138 BLUE EGG BAKERY 4.80COOKIES FOR MEETINGS1.20COOKIES FOR MEETINGS
Total for Check/Tran - 69278: 6.00
CHK69279 09/17/2015 9 BORDER STATES ELECTRIC SUPPLY 136,543.93Wire1,320.00320 Meters
302.27Meter seals3,331.77UG Fsult Indicators
119.01Scoring BladesTotal for Check/Tran - 69279: 141,616.98
CHK69280 09/17/2015 4477 CARTRIDGE WORLD 290.66TONER/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt25203
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
72.66TONERTotal for Check/Tran - 69280: 363.32
CHK69281 09/17/2015 11 CITY OF ELK RIVER 613.59PATCH MIX2,296.23JULY FUEL
430.27JULY FUEL903.71JULY FUEL124.88EVENT SIGNAGE195.22EVENT SIGNAGE - BOOTHS61.64EVENT SIGNAGE - BAND SHELL
467.73EVENT NO PARKING SIGNTotal for Check/Tran - 69281: 5,093.27
CHK69282 09/17/2015 76 CONNEXUS ENERGY -1,167.86PURCHASED POWER & SUBSTATION CRE2,377,937.68PURCHASED POWER & SUBSTATION CRE
Total for Check/Tran - 69282: 2,376,769.82
CHK69283 09/17/2015 36 CROW RIVER FARM EQUIP CO 87.05TOOLS - CLEVIS
CHK69284 09/17/2015 73 CUB FOODS 4.00LIGHTING COUPON REBATES
CHK69285 09/17/2015 9192 CUB FOODS ELK RIVER 116.90COFFEE/SUPPLIES7.25OFFICE SUPPLIES
Total for Check/Tran - 69285: 124.15
CHK69286 09/17/2015 212 DAKOTA SUPPLY GROUP 1,442.81Uticom Danger Tags750.27Fault Indicator Labels750.26Fuse Pad Labels
Total for Check/Tran - 69286: 2,943.34
CHK69287 09/17/2015 3145 DLT SOLUTIONS, LLC 1,270.86AUTODESK RENEWAL317.72AUTODESK RENEWAL
Total for Check/Tran - 69287: 1,588.58
CHK69288 09/17/2015 2367 ELECTRO INDUSTRIES INC 2,969.44Comverge Upgrade-191.02Credit for sales tax on Inv. AR-105695
Total for Check/Tran - 69288: 2,778.42
CHK69289 09/17/2015 19 ELK RIVER AREA CHAMBER OF COMM 372.00MEMBERSHIP INVESTMENT93.00MEMBERSHIP INVESTMENT
Total for Check/Tran - 69289: 465.00
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69290 09/17/2015 24 ELK RIVER PRINTING 287.49SERVICE AGREE FORMS
CHK69291 09/17/2015 8709 FAIRVIEW DIAGNOSTIC LABORATORIE 34.40PRE-EMPLOYMENT DRUG TEST8.60PRE-EMPLOYMENT DRUG TEST
Total for Check/Tran - 69291: 43.00
CHK69292 09/17/2015 28 G & K SERVICES SERVICES 100.66MATS & TOWELS25.17MATS & TOWELS
Total for Check/Tran - 69292: 125.83
CHK69293 09/17/2015 80 GRAINGER 788.80Remote Mount Electric Actuators
CHK69294 09/17/2015 2401 HOME DEPOT (STORE #2821) 319.00LIGHTING COUPON REBATE
CHK69295 09/17/2015 6836 INNOVATIVE OFFICE SOLUTIONS, LLC 36.24OFFICE SUPPLIES9.06OFFICE SUPPLIES
Total for Check/Tran - 69295: 45.30
CHK69296 09/17/2015 144 J&W INSTRUMENTS, INC 2,324.58engine sensor for plant
CHK69297 09/17/2015 3795 MICHELLE MARTINDALE 142.69HEALTH FAIR PRIZES
CHK69298 09/17/2015 9273 METERING & TECHNOLOGY SOLUTION 935.16FIRE HYDRANT W/ GATE VALVE159.00CHAMBERS & ERTs240.00CHAMBERS & ERTs
Total for Check/Tran - 69298: 1,334.16
CHK69299 09/17/2015 119 MINNESOTA COMPUTER SYSTEMS INC 232.54CONTRACTS & COPIES FOR COPIERS58.13CONTRACTS & COPIES FOR COPIERS
Total for Check/Tran - 69299: 290.67
CHK69300 09/17/2015 3321 NORTHSTAR CHAPTER - APA 240.00TRAINING60.00TRAINING
Total for Check/Tran - 69300: 300.00
CHK69301 09/17/2015 3218 RDO EQUIPMENT 135.56Teeth For Drill Head641.58True-Bore For Drill362.54Adaptor for drill128.68Collar for Drill
Total for Check/Tran - 69301: 1,268.36
CHK69302 09/17/2015 227 SHOE MENDERS & SADDLERY 177.65SAFETY BOOTS - VOLK185.00WORK BOOTS - STOECKEL
Total for Check/Tran - 69302: 362.65/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt25203
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69303 09/17/2015 3249 THERESA SLOMINSKI 37.15CCOGA MTG9.29CCOGA MTG
Total for Check/Tran - 69303: 46.44
CHK69304 09/17/2015 8141 SPEEDCUTTERS OUTDOOR MAINTENA 100.00LAWN MAINTENANCE40.00LAWN MAINTENANCE
1,087.99LAWN MAINTENANCETotal for Check/Tran - 69304: 1,227.99
CHK69305 09/17/2015 9191 UPS 14.86SHIPPING
CHK69306 09/17/2015 3360 UPS STORE #5093 10.12PRIORITY MAIL9.80SHIPPING - GROUND
Total for Check/Tran - 69306: 19.92
CHK69307 09/17/2015 2454 WAL-MART 01-3209 107.00LIGHTING COUPON REBATE
CHK69308 09/17/2015 86 WASTE MANAGEMENT-ELK RIVER LA 31,613.33ERMU GAS GENERATOR SERV AGREEME13,460.94LANDFILL GAS PLANT ELEC NRGY 08/2015
Total for Check/Tran - 69308: 45,074.27
CHK69309 09/17/2015 55 WESCO RECEIVABLES CORP. 6,521.85#1000 MCM 25KV Slice
CHK69310 09/17/2015 685 ADI 537.15Lynx Kits
CHK69311 09/17/2015 7308 ADVANTAGE BILLING CONCEPTS 100.00CODING FOR MED ALERT BILLING
CHK69312 09/17/2015 150 ALARM PRODUCTS DIST, INC 371.73Security Parts
CHK69313 09/17/2015 191 AMERICAN PAYMENT CENTERS 208.003RD QTR LOCKBOX FEES52.003RD QTR LOCKBOX FEES
Total for Check/Tran - 69313: 260.00
CHK69314 09/17/2015 9997 KATHY ANANTAPHONG 141.85INACTIVE REFUND
CHK69315 09/17/2015 9997 BRADLEY ANDERSON 9.62INACTIVE REFUND
CHK69316 09/17/2015 9997 ELSBETH BAKER 12.23INACTIVE REFUND
CHK69317 09/17/2015 6 BEAUDRY OIL COMPANY 1,698.60FUEL USAGE - DIESEL1,900.62FUEL USAGE - DIESEL
Total for Check/Tran - 69317: 3,599.22
CHK69318 09/17/2015 9997 BEECHWOOD PROPERTIES LLC 21.56INACTIVE REFUND
CHK69319 09/17/2015 9997 ERIKA BOHNENSTINGL 71.14INACTIVE REFUND/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt25203
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69320 09/17/2015 9997 HAZEL BROWN 25.38INACTIVE REFUND
CHK69321 09/17/2015 8843 CAMPBELL KNUTSON 263.50LEGAL SERVICES248.00LEGAL SERVICES
Total for Check/Tran - 69321: 511.50
CHK69322 09/17/2015 9997 JOSEPH CARPENTER 27.46INACTIVE REFUND
CHK69323 09/17/2015 3982 CENTERPOINT ENERGY 1,116.02GAS PURCHASED- 911201539.54GAS PURCHASED- 9112015
Total for Check/Tran - 69323: 1,155.56
CHK69324 09/17/2015 9997 MICHELLE CHANEY 20.02INACTIVE REFUND
CHK69325 09/17/2015 9997 ADAM CHENEY 33.05INACTIVE REFUND
CHK69326 09/17/2015 11 CITY OF ELK RIVER -1,675.83STORMWATER SEWER FRANCHISE153,541.15STORMWATER SEWER FRANCHISE37,468.11STORMWATER SEWER FRANCHISE87,006.72STORMWATER SEWER FRANCHISE
17.50BAGS1,334.54ORGANICS
164.00STICKERS109,325.67TRASH
Total for Check/Tran - 69326: 387,181.86
CHK69327 09/17/2015 3290 COBORNS 1,045.07CAKE/SODA 100 YR EVENT
CHK69328 09/17/2015 7448 CRC 1,668.69CRC - ENERGY DISPATCH417.17CRC - ENERGY DISPATCH
Total for Check/Tran - 69328: 2,085.86
CHK69329 09/17/2015 212 DAKOTA SUPPLY GROUP 3,017.82Phase J-Boxes
CHK69330 09/17/2015 9997 TERRANCE DAVEY 193.52INACTIVE REFUND
CHK69331 09/17/2015 9997 JOSH EASTMAN 69.83INACTIVE REFUND
CHK69332 09/17/2015 23 ELK RIVER MUNICIPAL UTILITIES 3,685.52ELECTRICITY:WELL & TOWER SECURITY90.85ELECTRICITY:WELL & TOWER SECURITY
273.03ELECTRICITY:WELL & TOWER SECURITY2,179.07ELECTRICITY:WELL & TOWER SECURITY
18,382.02ELECTRICITY:WELL & TOWER SECURITYTotal for Check/Tran - 69332: 24,610.49
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69333 09/17/2015 9997 FANNIE MAE 171.64INACTIVE REFUND
CHK69334 09/17/2015 9997 FANNIE MAE 150.03DEP To AP
CHK69335 09/17/2015 9997 FOUR DW CORP 12.31INACTIVE REFUND
CHK69336 09/17/2015 9997 AMANDA GATCHELL 20.12INACTIVE REFUND
CHK69337 09/17/2015 91 GOPHER STATE ONE-CALL 327.32LOCATE SERVICES327.33LOCATE SERVICES
Total for Check/Tran - 69337: 654.65
CHK69338 09/17/2015 80 GRAINGER 78.06PARTS FOR BORE RIG
CHK69339 09/17/2015 5118 GRAND RENTAL STATION 98.49TRENCHER44.611-1/2" HAMMER DRILL RENTAL
Total for Check/Tran - 69339: 143.10
CHK69340 09/17/2015 9997 DEANNA HENRIKSON 37.80INACTIVE REFUND
CHK69341 09/17/2015 7583 TONY HUBBARD 42.26SCHOOLS & MEETINGS
CHK69342 09/17/2015 6836 INNOVATIVE OFFICE SOLUTIONS, LLC 366.96OFFICE SUPPLIES91.74OFFICE SUPPLIES
Total for Check/Tran - 69342: 458.70
CHK69343 09/17/2015 9997 JULIA FULTON 17.39INACTIVE REFUND
CHK69344 09/17/2015 9997 LEA LANKKI 41.68INACTIVE REFUND
CHK69345 09/17/2015 9997 TONI LARSON 14.00INACTIVE REFUND
CHK69346 09/17/2015 417 LOCATORS & SUPPLIES INC. 83.32Rain Bibs for Reed
CHK69347 09/17/2015 8605 MARCO 444.86CAMERAS111.22CAMERAS
1,888.20CAMERA NETWORKS472.05CAMERA NETWORKS
Total for Check/Tran - 69347: 2,916.33
CHK69348 09/17/2015 9997 MCR INVESTMENTS II LLC 116.11INACTIVE REFUND
CHK69349 09/17/2015 185 MCR PERFORMANCE SOLUTIONS 2,756.25MISO CALCULATION
CHK69350 09/17/2015 2775 MICHELS CORPORATION 7,333.50WILDFLOWER TRENCHING
CHK69351 09/17/2015 7293 MINNESOTA DEPT OF COMMERCE 5,529.57MPUC QUARTERLY INDIRECT ASSESSME
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69352 09/17/2015 3376 JEFF MURRAY 63.88SCHOOLS & MEETING
CHK69353 09/17/2015 208 REID NELSON 114.50SCHOOL EXPENSE - MEALS
CHK69354 09/17/2015 9215 NIGHTHAWK TOTAL CONTROL 303.75QUARTERLY TELEMETRY CHARGES
CHK69355 09/17/2015 9997 REBEKAH NILES 99.45INACTIVE REFUND
CHK69356 09/17/2015 9300 NISC 152.85AUG 2015 RECURRING FEES8,776.91AUG 2015 RECURRING FEES1,530.84AUG 2015 RECURRING FEES5,269.18IVUE HOSTING & SUPPORT1,317.30IVUE HOSTING & SUPPORT
172.28IVUE HOSTING & SUPPORT300.00IVUE HOSTING & SUPPORT43.07IVUE HOSTING & SUPPORT
Total for Check/Tran - 69356: 17,562.43
CHK69357 09/17/2015 186 MIKE O'NEILL 32.05PORTFOLIOS
CHK69358 09/17/2015 9997 JEANNENE OTTO 10.07INACTIVE REFUND
CHK69359 09/17/2015 9997 SARAH PEDRYS 49.44INACTIVE REFUND
CHK69360 09/17/2015 9997 RENE R PERKINS 64.84INACTIVE REFUND
CHK69361 09/17/2015 9997 PREMIUM REAL ESTATE SOLUTIONS 71.30INACTIVE REFUND
CHK69362 09/17/2015 71 PRINCIPAL LIFE INSURANCE CO GRAN 2,947.49DENTAL, LIFE & LTD INSURANCE - 9172011,380.53DENTAL, LIFE & LTD INSURANCE - 9172013,140.04DENTAL, LIFE & LTD INSURANCE - 917201
Total for Check/Tran - 69362: 7,468.06
CHK69363 09/17/2015 9997 SHAWN RAWSKI 80.70INACTIVE REFUND
CHK69364 09/17/2015 3219 RESOURCE TRAINING & SOLUTIONS/B 16,794.00HEALTH CARE PREMIUMS - OCT7,464.00HEALTH CARE PREMIUMS - OCT5,598.00HEALTH CARE PREMIUMS - OCT
17,748.28HEALTH CARE PREMIUMS - OCT7,888.13HEALTH CARE PREMIUMS - OCT5,916.09HEALTH CARE PREMIUMS - OCT
Total for Check/Tran - 69364: 61,408.50
CHK69365 09/17/2015 9997 DONALD SCHUMACHER 165.33INACTIVE REFUND
CHK69366 09/17/2015 9997 DUSTIN SMITH 32.33INACTIVE REFUND/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt25203
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69367 09/17/2015 9997 MIAH SNESRUD 16.54INACTIVE REFUND
CHK69368 09/17/2015 9997 ABBY SOLOMONSON 55.70INACTIVE REFUND
CHK69369 09/17/2015 9997 ROBIN STEMAN 11.25INACTIVE REFUND
CHK69370 09/17/2015 6107 STUART C. IRBY CO. 4,472.72Burndy 1000 Tool1,458.84ST800 service tester
283.22Burndy Die for new toolTotal for Check/Tran - 69370: 6,214.78
CHK69371 09/17/2015 9997 THE RYAN JOHNSON GROUP 53.11INACTIVE REFUND
CHK69372 09/17/2015 74 SCOTT THORESON 143.95SCHOOL EXPENSE - MEALS
CHK69373 09/17/2015 7681 TOSHIBA FINANCIAL SERVICES 115.18CONTRACT COPIERS28.79CONTRACT COPIERS
Total for Check/Tran - 69373: 143.97
CHK69374 09/17/2015 9997 JANEE UDALLA 15.26INACTIVE REFUND
CHK69375 09/17/2015 9191 UPS 40.24SHIPPING
CHK69376 09/17/2015 219 US POSTAL SERVICE/ HASLER 124.006 MONTH RENTAL FEE31.006 MONTH RENTAL FEE
Total for Check/Tran - 69376: 155.00
CHK69377 09/17/2015 9997 MARILYN VANPATTEN 36.75INACTIVE REFUND
CHK69378 09/17/2015 8381 VERIFIED CREDENTIALS 37.60AUGUST BACKGROUND SCREENING9.40AUGUST BACKGROUND SCREENING
Total for Check/Tran - 69378: 47.00
CHK69379 09/17/2015 205 VISION OF ELK RIVER, INC 235.00100 YEAR ANNIVERSARY ITEMS - SHUTTL
CHK69380 09/17/2015 8439 ERIC VOLK 176.30TRAVEL TO AWWA CONF
CHK69381 09/17/2015 210 CURTIS WARK 111.70SCHOOL EXPENSE - MEALS
CHK69382 09/17/2015 702 WEST SHERBURNE TRIBUNE 260.00COMMUNITY GUIDE AD
CHK69383 09/17/2015 9344 AARON WHITE 105.64SCHOOL EXPENSE - MEALS
CHK69384 09/17/2015 9997 CHRISTIAN WILSON 6.06INACTIVE REFUND
CHK69385 09/17/2015 685 ADI 402.47Wireless Glassbreaks32.44ANT GSMV4G
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
Total for Check/Tran - 69385: 434.91
CHK69386 09/17/2015 8372 ALARM.COM INCORPORATED 17.50VIDEOFIED MONITORING
CHK69387 09/17/2015 4531 AT & T MOBILITY 48.98MONTHLY CELL PHONES1,174.26MONTHLY CELL PHONES
256.06MONTHLY CELL PHONESTotal for Check/Tran - 69387: 1,479.30
CHK69388 09/17/2015 8552 BECK LAW OFFICE 832.20AUGUST LEGAL SERVICES208.05AUGUST LEGAL SERVICES
Total for Check/Tran - 69388: 1,040.25
CHK69389 09/17/2015 9 BORDER STATES ELECTRIC SUPPLY 10,440.00Meters for Connexus Acq.
CHK69390 09/17/2015 11 CITY OF ELK RIVER 117.56PARTS & REPAIR - UNIT 2655.62REPAIRS - UNIT 35
Total for Check/Tran - 69390: 173.18
CHK69391 09/17/2015 23 ELK RIVER MUNICIPAL UTILITIES 619.08SECURITY MONITORING - LANDFILL
CHK69392 09/17/2015 8949 FS3 INC. 906.25Red Marking Post
CHK69393 09/17/2015 28 G & K SERVICES SERVICES 100.66MATS & TOWELS25.17MATS & TOWELS
Total for Check/Tran - 69393: 125.83
CHK69394 09/17/2015 80 GRAINGER 72.18DESK LIGHT18.04DESK LIGHT
Total for Check/Tran - 69394: 90.22
CHK69395 09/17/2015 64 GRANITE ELECTRONICS INC 83.91Pager Holders
CHK69396 09/17/2015 846 HACH COMPANY 356.62CYANIDE & SOLVENTS
CHK69397 09/17/2015 4984 ANGELA HAUGE 64.07HEALTH FAIR EXPENSES19.08HEALTH FAIR EXPENSES4.77HEALTH FAIR EXPENSES
Total for Check/Tran - 69397: 87.92
CHK69398 09/17/2015 809 HAWKINS, INC. 1,796.11SHOP CHEMICALS
CHK69399 09/17/2015 6836 INNOVATIVE OFFICE SOLUTIONS, LLC 35.68SEALING TAPE8.92SEALING TAPE
Total for Check/Tran - 69399: 44.60/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt25203
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Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 1 - ELECTRIC/GENERAL FUND
Check /Tran Date
PmtType AmountVendor NameVendor Reference
CHK69400 09/17/2015 199 KJOLHAUG ENVIRONMENTAL SERVICE 588.50MAIN STREET DELINEATION
CHK69401 09/17/2015 417 LOCATORS & SUPPLIES INC. 127.99Safety Glasses85.29Safety glasses
Total for Check/Tran - 69401: 213.28
CHK69402 09/17/2015 9273 METERING & TECHNOLOGY SOLUTION 4,660.00Badger M-2000 Mag Meter
CHK69403 09/17/2015 8340 MI-TECH POLE INSPECTIONS 1,593.88Pole Inspection
CHK69404 09/17/2015 40 MINNESOTA RURAL WATER ASSOC 250.00ANNUAL MEMBERSHIP DUES
CHK69405 09/17/2015 573 NCPERS MINNESOTA 256.00EXTRA LIFE INSURANCE - ERMU EMPLOY
CHK69406 09/17/2015 4049 OLIVER SURVEYING & ENGINEERING, I 3,450.004TH STREET TOPO900.00WACO ROBOTIC CREW
Total for Check/Tran - 69406: 4,350.00
CHK69407 09/17/2015 130 RESCO 13,793.001000KVA Transformer
CHK69408 09/17/2015 8974 RANDY SMITH 250.48REISSUE DEPOSIT REFUND-20.00BANK FEE
Total for Check/Tran - 69408: 230.48
CHK69409 09/17/2015 8551 STERLING TROPHY 73.05ENGRAVING - VOLUNTEER - 100TH ANNIV
CHK69410 09/17/2015 8986 TELIT WIRELESS SOLUTIONS 105.75AIRCARDS FOR LAPTOPS
CHK69411 09/17/2015 345 UTILITY TRUCK SERVICES 734.44WINCH REPAIRS
Total for Bank Account - 1 : (273) 3,714,817.11
/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt2520323
Page 2110/02/2015 1:03:23 PMRevision: 76714
Accounts PayableCheck Register
Elk River Municipal Utilities
09/01/2015 To 09/30/2015Bank Account: 2 - ELECTRIC/PAYROLL
Check /Tran Date
PmtType AmountVendor NameVendor Reference
WIRE58 09/11/2015 50 AFFINITY PLUS CREDIT UNION 2,008.00AFFINITY CREDIT UNION
WIRE60 09/25/2015 50 AFFINITY PLUS CREDIT UNION 2,008.00AFFINITY CREDIT UNION
Total for Bank Account - 2 : (2) 4,016.00
Grand Total : 3,718,833.11(275)
/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt2520324
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Accounts PayableCheck Register
Elk River Municipal Utilities
PARAMETERS ENTERED:
Check Date: 09/01/2015 To 09/30/2015Bank: All
Vendor: AllCheck: All
Journal: AllFormat: All GL References/Amounts
Extended Reference: NoCheck/TransactionSort By:
Voids: NoneAllPayment Type:NoGroup By Payment Type:
Minimum Amount: 0.00Authorization Listing: No
Authorization Comments: NoCredit Card Charges: No
/pro/rpttemplate/acct/2.33.1/ap/AP_CHK_REGISTER.xml.rpt2520325
Page 1
Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2015
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
September 8, 2015
Members Present: John Dietz, Chair; Al Nadeau, Vice Chair; and Daryl Thompson, Trustee
ERMU Staff Present: Troy Adams, General Manager;
Theresa Slominski, Finance and Office Manager;
Mark Fuchs, Electric Superintendent;
Eric Volk, Water Superintendent;
Mike O’Neill, Technical Services Superintendent;
Tom Sagstetter, Conservation & Key Accounts Manager;
Michelle Canterbury, Executive Administrative Assistant;
Tom Geiser, Assistant Electric Superintendent
Others Present: Cal Portner, City Administrator; Peter Beck, Attorney
1.0 CALL MEETING TO ORDER
John Dietz called the September 8, 2015 meeting to order at 3:30 p.m.
1.1 Pledge of Allegiance
The Pledge of Allegiance was recited.
1.2 Consider Utilities Agenda
Troy Adams requested to move up agenda item 4.2, Vision Committee 100th Anniversary Recap
to immediately follow 1.2, Consider Utilities Agenda.
Al Nadeau moved to approve the amended September 8, 2015 Utilities agenda. John Dietz
seconded the motion. Motion carried 2-0.
4.2 Vision Committee – 100th
Anniversary Recap
Tom Sagstetter gave a recap on the 100th anniversary celebration. Tom started by thanking the
Commission for allowing the office to close an hour early for the event. The event had great
participation; there were approximately 1,300 people who attended. We received many positive
comments that focused on the quality of food, the great band, and one person even said they
were looking forward to the 200 year celebration! The vendor booths were well attended, kid
zone was packed, the tours were full, and the safety demonstrations and heavy equipment areas
were also well attended. Michelle Canterbury thanked the members of the vision committee
26
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2015
that went over and above the call of duty to help make the event such a success; Jolene Fenn-
Jansen, Mike Thiry, Angela Hauge, Geri Fournier, Wade Lovelette, Mike O’Neill, Daryl
Thompson, and Tom Sagstetter. Individual recognition and thanks were given to each of the
contributors for the event. Representatives were present from Waste Management, Coborn’s,
the Elk River Lions, and the Sherburne County Fair Board. Other contributors included Elk
River Travel and ISD 728 Community Education.
John Dietz thanked Michelle Canterbury for the outstanding job she did with coordinating the
event. He added that it was a great community event, everything he heard was positive, and we
received a tremendous amount of publicity from our local newspaper. The event was an
opportunity to showcase what we offer to our citizens. John extended his thanks to everyone and
what they did to help make the event such a success.
1.3 Introduction of New Employee
Theresa Slominski introduced Kathy Greenberg the new Accounts Payable and Payroll
Specialist. The Commission welcomed the new employee.
1.4 Recognition of Employee Achievements
Troy Adams announced that Jennie Nelson recently received the American Public Power
Association (APPA) Rising Star Award. Jennie was recognized for her achievement at the
APPA National Conference held in Minneapolis, MN. Eric Volk announced that Lead Water
Operator Mike Langer received the Minnesota Municipal Utilities Association (MMUA) Rising
Star Award. Mike was recognized for his achievement at the MMUA Annual Summer
Conference held in Pequot Lakes, MN. John Dietz shared that Troy Adams was elected as the
2015-2016 MMUA Board of Directors President at the MMUA Summer Conference. The
Commission congratulated the employees on their achievements.
2.0 CONSENT AGENDA (Approved By One Motion)
John Dietz had a few questions on the financials, staff responded.
Al Nadeau moved to approve the Consent Agenda as follows:
2.1 August Check Register
2.2 August 11, 2015 Previous Meeting Minutes
2.3 Financial Statements
2.4 Connexus Electric Service Territory Transfer Agreement
2.5 Public Power Week Resolution
2.6 Customer Service Week Resolution
2.7 Minnesota Municipal Utilities Association 2015-2016 Safety Program Contract
27
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2015
John Dietz seconded the motion. Motion carried 2-0.
3.0 OPEN FORUM
Alex Bodnar was at the meeting to follow-up on the Petition for Water Main Looping and
Extension Variance that was on the August 11, 2015 commission agenda. Alex distributed a
copy of the Recommended Standards for Water Works – Section 8.2.4 Dead ends. He also
provided a quote from Brenteson Companies for installation of sanitary sewer and water main,
and services. Alex was looking for Commission support for a variance to the city council stating
that water can’t be provided to the area in a cost effective manner. As action can’t be taken in
open forum, the Commission requested Alex Bodnar write up a formal request of exactly what
he is asking for, and submit his request to ERMU staff by October 1, 2015 to allow them the
time to review and include it on the October 13, 2015 agenda for Commission decision.
4.0 OLD BUSINESS
4.1 Electric Service Territory
As staff prepares for the acquisition of Connexus customers this fall, there are numerous areas
that will be discussed with the Commission. At this point of time, the key points of discussion
are: electric rates, integration of electric utility infrastructure, and customer data migration.
Electric rates – Tom Sagstetter shared that we haven’t received many calls on the electric rates.
We have provided one commercial customer with a rate analysis. Tom also shared that we’re
scheduled to meet with Dave Berg from Dave Berg Consulting, LLC (DBC) this week to begin
a rate analysis and come up with some possible options to help mitigate increased costs going
from a Connexus program to ours.
Integration of the utility infrastructure – We have 299 accounts that we’ll be transferring over to
our system on September 22, 2015. After they’re transferred over, we’ll begin to change the
meters out to ours. Tom shared that we’re working closely with the one three phase commercial
customer that will be transferred over on September 22nd
to help ensure a smooth transition.
Included in the packet were examples of the load management and final system transfer letter
that will be going out to customers. John Dietz had a question on whether we were going to
make an attempt to contact all the commercial customers to inform them of the changeover time
and how it may affect them. Staff responded. There was further discussion.
5.0 NEW BUSINESS
5.1 2016 Budget: 10 Year Capital Improvement Projections; 2016 Capital Projects and
Equipment Purchases; and 2016 Conservation Improvement Plan
28
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2015
Troy Adams presented the 2016 Capital Projections, Capital Projects and Equipment
Purchases and the Conservation Improvement Plan. Notable items for the Electric
Department are Territory Acquisition costs, a new feeder to the Natures Edge Business
Park, replacing dump truck #16, a potential new substation and feeder for data center
growth, and construction/renovation of the field services building. Troy explained that a
few of these projects could be financed through reserves or bonds; so as not to have a direct
effect on our rate design. There was further discussion on the projects, the priority, and the
manpower required.
Notable items for the Water Department are the construction of a new filter plant for well
#9 and construction/renovation of the field services facilities. We would plan to pay for the
well project with reserves and trunk funds and the field services project through bonds.
John Dietz had a question on the money budgeted for the Jackson Street Water Tower
restoration project. Staff responded.
A notable item for the Administration and Technical Services Department is a new in
house server for NISC. Theresa Slominski shared that when we converted over to NISC we
had the option to go with a Cloud based Application Service Provider (ASP) or to have our
own server in house; at that time we decided to go with the less expensive cloud based
service. Theresa shared the challenges we’ve experience since we switched over to the
ASP and what it would take to bring it back in house. There would be numerous
advantages to having it in house and we may have the option of using the city’s existing
server. Theresa also provided costs for purchasing our own designated hardware. There
was further discussion. John Dietz had a question on the $10,000 line item for City
Hall/Utility Fitness Room. Staff responded. There was discussion on the $240,000
budgeted for the Landfill expansion project.
Tom Sagstetter went over the Conservation Improvement Program (CIP) Budget. He
shared that our energy savings goal mandated by the state was increased to 2.3 million kW
hours, so the rebate budget is about $85,000 higher. As we would normally have a hard
time spending the rebate dollars, we’re pleased to have some of those funds available for
our newly acquired Connexus customers that meet the rebate requirements.
5.2 Minnesota Municipal Utilities Association Annual Summer Conference Update
The Minnesota Municipal Utilities Associations (MMUA) Annual Summer Conference
was held in Pequot Lakes, MN. An MMUA board meeting was held prior to the
conference and a business meeting of the membership was held in conjunction with the
conference. Troy Adams provided a memo recapping the conference highlights and
important topics. He also shared that a 1.5% MMUA dues revenue increase and modified
dues structure was approved. The changes result in a 0.37% dues increase for ERMU in
2016. Troy stressed the value added benefits of our membership with MMUA.
29
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2015
5.3 Environmental Pollution Agency Rules affecting ERMU’s Diesel Generation Facility
Mike O’Neill explained that in the original Reciprocating Internal Combustion Engine
Rules, also known as the RICE Rules, it stipulated that an entity could run their engines up
to 100 hours for testing and maintenance. This exception was later deleted by a court’s
decision. Another Petition for Review was submitted and a stay of the earlier ruling was
granted until a final decision could be reached. This stay of issuance of the mandate will
be in place through May 1, 2016. A final decision should be forthcoming prior to the
expiration of the stay. ERMU must decide whether to upgrade the exhaust systems on our
generators to bring them into compliance, at a cost of approximately $400,000, or forgo
placing them on the Midcontinent Independent System Operator (MISO) market with GRE
and keep the engines to be used for emergency purposes only.
The two other factors that come into play are our 2016 contract with Great River Energy
(GRE) and our 2018 contract with Minnesota Municipal Power Agency (MMPA). At this
point we don’t know what MMPA will want to do with these engines. Troy Adams and
Mike O’Neill will be in discussions with MMPA to see what their interest is. In addition,
Mike will be working with vendors to assess the need and cost of retrofitting and upgrading
the exhaust systems for the two engines to bring them into compliance with the new EPA
regulations. Staff will bring back some firmer dollar amounts for the retrofit project should
the Commission choose to move forward with it.
5.4 Payment in Lieu of Taxes and Other Donations to the City of Elk River
On March 20, 2015, an electric service territory transfer agreement was executed between
ERMU and Connexus. The terms of the agreement provide for loss of revenue (LOR)
payments for 10 years. Now that the negotiations have been completed and terms
finalized, the payment in lieu of taxes (PILOT) provisions should be revised to reflect an
exemption for customers that are subject to LOR payment. As these LOR payments
complete their 10 year term, the revenue associated with these customers would then
become subject to a PILOT per the policy. Troy Adams presented the proposed PILOT and
Other Donations to the City of Elk River policy that would reflect these changes.
John Dietz pointed out that the way the proposed policy was worded may cause some
confusion as it doesn’t identify which electric service customers would be subject to the
LOR. John suggested that modifications be made to the proposed policy, to include the
clause “per the March 20, 2015 service territory agreement”, and brought back to the
Commission for consideration and approval.
5.5 Wage and Benefits Committee Update – Health & Dental Insurance
On September 8, 2015 the Wage and Benefits Committee (W&BC) met to review dental,
30
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2015
ancillary, and health insurance renewals; and HSA employer contributions. Theresa
Slominski gave a verbal update on the insurance renewals that were discussed.
Theresa Slominski explained that we currently have both our ancillary and dental insurance
coverage through Principal who we’ve been using for the past three years. After going out
for bids for 2016, we’ve identified that we would recognize a significant savings if we were
to switch over to a three year contract with Assurant; who has very similar coverage, and
who we were with prior to switching over to Principal. There was further discussion.
Theresa Slominski presented the health insurance renewal, which had an 8.3% increase for
our plan. She explained that we participate in an insurance pool with Resource Training &
Solutions, and the range of renewals for their clients came in between -3% to 19.9%. Based
on this reasonable renewal rate, staff would recommend staying with our current plan.
Theresa Slominski went over the 2016 HSA limits and deductibles. Currently the employer
is contributing $1,985 a year towards the family plans and $650 a year towards the
individual plans. John Dietz added that we currently have 13 people on the co-pay plan
and 20 people that have migrated over to the HSA plan. He was in favor of keeping the
company contribution to the HSA plan, and reevaluating it on a year to year basis. There
was further discussion on our current co-pay insurance plan that could potentially be
subject to a “Cadillac Tax”.
Daryl Thompson made a motion to switch our 2016 ancillary services and dental
insurance from Principal to Assurant; to approve the 2016 ancillary services and
dental insurance from Assurant; to approve the 2016 HSA insurance plan employer
contribution of $1,985 for family and $650 for single; and to approve the Blue Cross
Blue Shield Health Insurance Plan with the 8.3% increase. Al Nadeau seconded the
motion. Motion carried 3-0.
5.6 Expansion of the Elk River Municipal Utilities Board of Commissioners
Troy Adams shared that when the territory acquisition discussions began a few years ago,
there was discussion on expanding the commission to provide better representation of the
growing customer base, and based on the newly acquired territory and normal growth,
ERMU will likely experience a 20% growth over the next five years. Troy explained the
steps involved to expand the utility commission from 3 to 5 members. There was further
discussion. The Commission was in favor of expanding the commission membership. John
Dietz suggested that before we request council action, we should bring it to a city council
workshop for discussion to help determine if we have council support and to get their
opinion on two city council members serving on the commission board versus one city
council member. The commission directed staff to prepare a memo on the expansion and
submit it to the city for discussion at an upcoming workshop.
31
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Regular meeting of the Elk River Municipal Utilities Commission
September 8, 2015
6.0 OTHER BUSINESS
6.1 Staff Updates
Troy Adams’ staff report included a bullet point on the MMPA Board of Directors meeting held
on August 25, 2015 in Shakopee, MN. At the meeting, the Board approved the execution of a
10 MW power purchase agreement for a solar facility to be located in Buffalo, MN. John Dietz
had some questions on the solar facility. Staff responded.
Theresa Slominski had previously shared that with our health insurance we have through
Resource Training & Solutions (RT&S), we participate in a co-op to receive reduced insurance
rates. RT&S has a very advanced wellness program that we participate in. We were recently
selected to receive their Well Workplace Award in the fall of 2015 for the work we did in 2014.
Theresa extended an invitation to the Commission to the Customer Appreciation Event and
Awards Banquet being held on October 7, 2015. Efforts of Michelle Martindale and Angela
Hauge, who serve as our representatives on the committee, will be recognized at the awards
banquet.
6.2 Set Date for Next Meeting
The next regularly scheduled Commission meeting will be held on October 13, 2015.
6.3 Adjourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 4:59 p.m. Al Nadeau seconded the motion. Motion carried 3-0.
Minutes prepared by Michelle Canterbury.
___________________________
John J. Dietz
Chair, ERMU Commission
___________________________
Tina Allard
City Clerk
32
FINANCIAL INDEX
Aug-15 PAGE
P & L NARRATIVE ………….. 34
COMBINED BALANCE SHEET ………….. 36
ELECTRIC INCOME STATEMENT ………….. 37
WATER INCOME STATEMENT ………….. 39
GRAPH #1 ELECTRICAL PURCHASES ………….. 40
GRAPH #2 ELECTRIC SALES ………….. 41
GRAPH #3 ELECTRIC SALES/CUSTOMER CLASS ………….. 42
GRAPH #4 WATER PRODUCTION ………….. 43
GRAPH #5 WATER SALES ………….. 44
DETAILED ELECTRIC INCOME STATEMENT ………….. 45
………….. 46
………….. 47
………….. 48
………….. 49
………….. 50
…………. 51
DETAILED WATER INCOME STATEMENT ………….. 52
………….. 53
………….. 54
………….. 55
33
PROFIT AND LOSS NARRATIVE
August 2015
Electric P&L
August’s electric kwh sales (for July usage) are up from the prior year by 6% overall:
Residential usage is up 10.8%
Small Commercial usage is up 9%
Large Commercial usage is up 3% from the prior year.
August Operating Revenue is up from the prior year by 9.4% for the month, up slightly at
.86% for year-to-date numbers, and over year-to-date budgeted numbers by 1.8%.
August 2014 had a PCA charge to customers of $26,000, impacting the revenue in
August 2014 by less than 1% at .87%.
Other Revenue is above the prior year by 8.5% for August. Connection Fees are a small
component this month at $24,375, but last year was even smaller at $11,150.
Miscellaneous Revenue was significantly more in 2014 due to a gain of $18,000
recognized on the trade-in of our bucket truck, and 2015 does not have an August MISO
payment (it was paid in September this year.)
Overall, Total Revenues of $3,453,830 are above the prior year $3,184,018 by 8.5%,
year-to-date revenues are ahead .63%, and budgeted numbers are increased 1.7%.
Purchased Power is up from the prior year 3.7%, consistent with the increased usage.
Year-to-date the difference in costs for purchased power are 5.6% less than the prior year
due to PCAs in 2014.
For other expenses, there is much consistency from the prior year. Customer Accounts
Expense is inconsistent as it continues to be larger than last year due to the NISC
software costs. Administrative and General Expenses are inconsistent from the prior year
for a couple of reasons: increased approximately $25,000 for supplies and labor with the
Anniversary celebration (as budgeted), increased $22,000 for medical premiums of 8 new
employees hired in May 2015 (billed in arrears for June and July - so a timing difference
but a budgeted expense), and increased $25,000 for consulting fees with our MISO
reporting (again, a timing difference but a budgeted expense.)
Total expenses were $3,179,074, over the previous year for August by 5.3% and under
year-to-date numbers by 2.7%.
The Electric Department has a Net Profit of $142,816, compared to the prior year Net
Profit of $37,160. Year-to-date there is a Net Profit of $1,355,141, compared to the prior
year Net Profit of $698,403.
34
Water P&L
August’s water consumption (for July usage) is down 24% overall from the prior year:
Residential usage is down 27%
Commercial usage is down 21%
Water Operating Revenues are behind last year by 26% at $295,762 however, year-to-
date revenues are ahead by 4%.
Other Revenues are ahead of the prior year at $80,931, compared to $28,296. The
increase over the prior year is due to significant builder Connection Fees of $61,135 in
August, and amendments to water tower leases. Total Revenues of $376,693 are behind
the prior year by 14%, yet year-to-date up by 6%. Year-to-date revenues are ahead of
budget by 15%.
Expenses are very consistent with the prior year. Production Expense is up approximately
$4,000 due to maintenance of the actuators treating the radon at well 2. Distribution
Expense is down due to the water main break in 2014 resulting in approximately $5,000
non-recurring expense.
For August, the Water Department has a Net Profit of $164,517, compared to last year
Net Profit of $216,658. Year-to-date there is a Net Loss of ($29,296), compared to the
prior year Net Loss of ($91,395).
35
COMBINED BALANCE SHEETAUGUST 2015
ELECTRIC WATERASSETSCURRENT ASSETS CASH & TEMPORARY INVESTMENTS 2,600,8368,989,637 ACCOUNTS RECEIVABLE 469,6833,784,559 INVENTORIES 24,6461,221,666 PREPAID ITEMS 27,542136,925 CONSTRUCTION IN PROGRESS 598,262543,150 TOTAL CURRENT ASSETS 3,720,96914,675,938
RESTRICTED ASSETS BOND RESERVE FUND 0490,500 EMERGENCY RESERVE FUND 1,153,5392,516,804 UNRESTRICTED RESERVE FUND 113,82438,884 TOTAL RESTRICTED ASSETS 1,267,3633,046,188
FIXED ASSETS PRODUCTION 11,223,696391,219 LFG PROJECT 03,804,327 TRANSMISSION 0714,482 DISTRIBUTION 21,917,65934,444,512 GENERAL 916,7627,756,404 FIXED ASSETS (COST) 34,058,11747,110,944 LESS ACCUMULATED DEPRECIATION (13,782,021)(21,247,012) TOTAL FIXED ASSETS, NET 20,276,09625,863,932
OTHER ASSETS AND DEFFERED OUTFLOWS (6,133)(65,102)
TOTAL ASSETS 25,258,29543,520,956
LIABILITIES AND FUND EQUITYCURRENT LIABILITIES ACCOUNTS PAYABLE 87,3733,314,269 SALARIES AND BENEFITS PAYABLE 120,200304,128 DUE TO CITY 0559,142 DUE TO OTHER FUNDS 00 BONDS PAYABLE-CURRENT PORTION 00 UNEARNED REVENUE 142,8443,376 TOTAL CURRENT LIABLITIES 350,4184,180,914LONG TERM LIABILITIES LFG PROJECT 01,408,358 DUE TO COUNTY 00 BONDS PAYABLE, LESS CURRENT PORTION 1,850,6423,607,488 TOTAL LONG TERM LIABILITIES 1,850,6425,015,846
TOTAL LIABILITIES 2,201,0599,196,760
FUND EQUITY CAPITAL ACCOUNT CONST COST 0490,500 CONTRIBUTED CAPITAL 00 RETAINED EARNINGS 23,086,53232,478,554 NET INCOME (LOSS) (THROUGH PREVIOUS MONTH) (29,296)1,355,141 TOTAL FUND EQUITY 23,057,23634,324,195
TOTAL LIABILITIES & FUND EQUITY 25,258,29543,520,956
36
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
Electric
RevenueOperating Revenue Elk River 3,009,066 18,745,202 18,308,064 2,766,839 18,036,5742 427,876,812 708,628 Elk River-City Donated 17,065 120,178 141,910 21,403 140,480(15) (14)219,650 (20,302) Otsego 282,466 1,602,278 1,602,588 252,393 1,586,9910 12,419,908 15,288 Rural Big Lake 22,980 129,564 146,863 20,540 139,541(12) (7)219,471 (9,976) Dayton 27,840 155,698 171,160 23,913 162,097(9) (4)256,678 (6,399) Public St & Hwy Lighting 30,178 237,103 256,815 29,638 235,800(8) 1386,861 1,303 Generation and Sub Station Credit 2,948 23,703 33,674 2,968 28,780(30) (18)41,175 (5,077) Dispersed Generation Credit (100,694) (545,586) (566,542) (106,848) (537,264)(4) 2(771,008) (8,322) Other Revenue/CIP/Rate Increase/AC Credit (11,367) (34,410) (29,967) (11,088) 467,00615 (107)(50,000) (501,416)
Total Operating Revenue 3,280,482 20,433,730 20,064,565 2,999,758 20,260,0042 130,599,548 173,726
Other Operating Revenue Interest/Dividend Income 6,969 70,178 71,617 7,821 67,931(2) 3105,000 2,247 Customer Penalties 23,513 139,933 148,764 18,140 154,359(6) (9)250,000 (14,426) LFG Project 92,762 716,240 781,061 92,592 736,505(8) (3)1,136,812 (20,265) Connection Fees 24,375 102,663 44,773 11,150 94,766129 8125,000 7,897 Security 19,777 164,617 180,062 23,547 150,616(9) 9270,000 14,001 Misc Revenue 5,953 102,244 75,124 31,010 129,01636 (21)125,720 (26,772) Prior Period Adjustment 0 0 0 0 00 00 0
Total Other Revenue 173,348 1,295,875 1,301,401 184,260 1,333,1930 (3)2,012,532 (37,318)
Total Revenue 3,453,830 21,729,605 21,365,966 3,184,018 21,593,1962 132,612,080 136,408
Expenses Purchased Power 2,544,129 14,519,260 14,887,418 2,454,045 15,382,314(2) (6)22,577,733 (863,054) Operating & Mtce Expense 31,403 147,743 197,480 23,582 173,212(25) (15)327,422 (25,469) Landfill Gas 56,508 486,359 459,068 60,478 435,3946 12717,500 50,965 Transmission Expense 472 472 0 0 00 00 472 Distribution Expense 22,234 171,014 150,172 15,769 125,25014 37227,515 45,764 Maintenance Expense 76,231 677,744 652,432 73,849 598,9034 13947,770 78,841 Depreciation 159,760 1,272,743 1,533,333 151,595 1,297,181(17) (2)2,300,000 (24,437) Interest Expense 9,086 80,332 84,734 10,891 116,696(5) (31)123,537 (36,364) Security 17,867 141,252 148,623 16,670 131,445(5) 7215,000 9,808 Other Operating Expense 293 12,956 14,347 1,029 19,857(10) (35)39,800 (6,901) Customer Accounts Expense 20,445 196,113 185,424 15,510 139,9986 40255,720 56,11437
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
Administrative & General Expense 240,646 1,770,341 1,908,874 193,024 1,588,923(7) 113,053,013 181,418
Total Expenses(before Operating Transfers) 3,179,074 19,476,330 20,221,905 3,016,441 20,009,173(4) (3)30,785,010 (532,844)
Operating Transfer Transfer To City For 99 Bond 0 0 0 0 00 00 0 Operating Transfer/Other Funds 87,007 545,292 530,297 81,325 530,7383 3810,000 14,555 Utilities & Labor Donated 44,934 352,842 336,334 49,092 354,8835 (1)515,000 (2,041)
Total Operating Transfer 131,941 898,134 866,631 130,418 885,6214 11,325,000 12,514 Net Income Profit(Loss) 142,816 1,355,141 277,430 37,160 698,403388 94502,070 656,738
38
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
Water
RevenueOperating Revenue Water Sales 295,762 1,334,368 1,239,619 401,942 1,277,6628 42,193,576 56,706
Total Operating Revenue 295,762 1,334,368 1,239,619 401,942 1,277,6628 42,193,576 56,706
Other Operating Revenue Interest/Dividend Income 1,742 17,516 14,829 1,955 17,05718 326,700 459 Customer Penalties 3,079 10,587 6,366 1,639 10,86366 (3)15,000 (277) Connection Fees 61,135 170,960 100,821 16,580 171,62770 0165,000 (666) Misc Revenue 14,975 111,785 66,457 8,121 78,82468 42103,680 32,962 Restate Beginning Retained Earnings 0 0 0 0 00 00 0
Total Other Revenue 80,931 310,848 188,473 28,296 278,37065 12310,380 32,478
Total Revenue 376,693 1,645,216 1,428,092 430,238 1,556,03315 62,503,956 89,184
Expenses Production Expense 5,181 19,152 14,191 903 5,17635 27020,000 13,977 Pumping Expense 39,037 261,067 303,696 41,470 294,636(14) (11)449,600 (33,569) Distribution Expense 15,014 126,504 136,001 21,865 132,281(7) (4)192,500 (5,777) Depreciation 93,658 747,185 753,336 90,478 720,104(1) 41,130,000 27,080 Interest Expense 5,382 43,608 44,506 5,937 48,899(2) (11)66,262 (5,291) Other Operating Expense 38 1,407 0 157 45,0870 (97)228 (43,680) Customer Accounts Expense 4,447 42,121 38,575 4,463 33,4159 2659,500 8,705 Administrative & General Expense 48,301 397,750 385,575 48,307 342,8293 16592,440 54,921
Total Expenses(before Operating Transfers) 211,059 1,638,794 1,675,880 213,579 1,622,428(2) 12,510,530 16,366
Operating Transfer Transfer To City For 99 Bond 0 30,000 30,000 0 25,0000 2030,000 5,000 Operating Transfer/Other Funds 0 0 0 0 00 00 0 Operating Transfer From City 0 0 0 0 00 00 0 Utilities & Labor Donated 1,118 5,719 336 0 01,602 0500 5,719
Total Operating Transfer 1,118 35,719 30,336 0 25,00018 4330,500 10,719 Net Income Profit(Loss) 164,517 (29,296) (278,124) 216,658 (91,395)(89) (68)(37,074) 62,098
39
))
20
25
30
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40
45
50
55
60
65
De
ma
nd
in
MW
Month
Elk River Municipal Utilities Monthly Electrical Demand
2015
2014
14,000
19,000
24,000
29,000
34,000
En
erg
y P
urc
ha
se
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WH
Month
Elk River Municipal Utilities Monthly Energy Purchases
2014
2015
40
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
Ele
ctr
ic L
oad
in
MW
H
Month
Elk River Municipal Utilities Monthly Total Electric Load
2014
2015
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Sa
les
in
Do
lla
rs
Month
Elk River Municipal Utilities Monthly Electric Sales
2014 2015
41
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Lo
ad
s in
MW
H
Month
Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Loads
Residential
Industrial
Commercial
2015
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Sale
s i
n D
oll
ars
Month
Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Sales
Residential
Commercial
2014
2015
Industrial
2014
42
0
20
40
60
80
100
120
140
Pu
mp
ag
e i
n M
illio
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al.
Month
Elk River Municipal Utilities Monthly Water Pumpage
2015
2014
0
1
2
3
4
5
6
Pe
ak
Da
y i
n M
illi
on
Ga
l.
Month
Elk River Municipal Utilities Peak Day Pumpage
2014
2015
43
0
20
40
60
80
100
120
140
Sa
les
in
Mil
lio
n G
al.
Month
Elk River Municipal Utilities Monthly Water Sales
2014
2015
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Sale
s i
n D
ollars
Month
Elk River Municipal Utilities Monthly Water Sales
2015
2014
44
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
Electric
RevenueOperating Revenue Elk River
ELECT SALES/ELK RIVER RES 997,185 6,386,1071,138,435 6,647,4376,545,157 (2) 2440.4411 9,981,317 159,050
ELECT SALES/ER NON-DEMAND 283,029 1,794,103312,434 1,796,8741,932,620 8 8440.4412 2,750,593 138,517
ELECT SALES/ER DEMAND 1,486,625 9,856,3641,558,196 9,863,75310,267,425 4 4440.4413 15,144,902 411,061
3,009,066 18,745,202 18,308,064 2,766,839 18,036,5742 4Total For Elk River: 27,876,812 708,628
Elk River-City DonatedELECT SALES/ER CITY DONATED 21,403 140,48017,065 141,910120,178 (15) (14)440.4415 219,650 (20,302)
17,065 120,178 141,910 21,403 140,480(15) (14)Total For Elk River-City Donated: 219,650 (20,302)
OtsegoELECT SALES/OTSEGO RES 119,309 762,059138,088 777,707749,633 (4) (2)440.4416 1,178,976 (12,425)
ELECT SALES/OTSEGO NON-DEM 54,803 319,08056,669 309,836318,368 3 0440.4417 467,476 (712)
ELECT SALES/OTSEGO DEMAND 78,281 505,85287,710 515,045534,277 4 6440.4418 773,456 28,425
282,466 1,602,278 1,602,588 252,393 1,586,9910 1Total For Otsego: 2,419,908 15,288
Rural Big LakeELECT SALES/BIG LAKE RES 19,772 137,04522,339 145,640127,161 (13) (7)440.4421 216,898 (9,884)
ELECT SALES/BL NON-DEMAND 768 2,496642 1,2232,403 96 (4)440.4422 2,573 (93)
22,980 129,564 146,863 20,540 139,541(12) (7)Total For Rural Big Lake: 219,471 (9,976)
DaytonELECT SALES/DAYTON RES 20,381 138,98723,937 147,113132,411 (10) (5)440.4431 220,728 (6,576)
ELECT SALES/DAYTON NON-DEM 3,531 23,1103,902 24,04723,287 (3) 1440.4432 35,950 177
27,840 155,698 171,160 23,913 162,097(9) (4)Total For Dayton: 256,678 (6,399)
Public St & Hwy LightingELECT SALES/ELK RIVER SEC LTS 2,543 20,7954,064 22,78831,216 37 50440.4414 34,317 10,421
ELECT SALES/OTSEGO SEC LTS 763 6,1990 00 0 0440.4419 0 (6,199)
ELECT SALES/BIG LAKE SEC LTS 154 1,2320 00 0 0440.4424 0 (1,232)
ELECT SALES/DAYTON SEC LTS 354 2,8170 00 0 0440.4434 0 (2,817)
PUBLIC ST & HWY LIGHTING/CIT 25,824 204,75626,114 234,027205,886 (12) 1440.4441 352,544 1,130
30,178 237,103 256,815 29,638 235,800(8) 1Total For Public St & Hwy Lighting: 386,861 1,303
Generation and Sub Station CreditSUB-STATION CREDIT 1,168 9,3431,168 9,3449,343 0 0440.4550 14,015 0
45
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
GENERATION CREDIT 1,800 13,6801,780 17,33014,360 (17) 5440.4551 20,160 680
GRE GENERATION - PEAKING PLA 0 5,7570 7,0000 (100) 0470.4720 7,000 (5,757)
2,948 23,703 33,674 2,968 28,780(30) (18)Total For Generation and Sub Station Credit: 41,175 (5,077)
Dispersed Generation CreditDISPERSED GENERATION CREDIT (106,848) (537,264)(100,694) (566,542)(545,586) (4) 2440.4552 (771,008) (8,322)
(100,694) (545,586) (566,542) (106,848) (537,264)(4) 2Total For Dispersed Generation Credit: (771,008) (8,322)
Other Revenue/CIP/Rate Increase/AC CreditRATE INCREASE 0 500,0000 00 0 0440.4554 0 (500,000)
A/C CREDIT (11,088) (32,994)(11,367) (29,967)(34,410) 15 4440.4555 (50,000) (1,416)
(11,367) (34,410) (29,967) (11,088) 467,00615 (107)Total For Other Revenue/CIP/Rate Increase/AC Cred (50,000) (501,416)
Total Operating Revenue2,999,758 20,260,0043,280,482 20,064,56520,433,730 2 130,599,548 173,726
Other Operating Revenue Interest/Dividend Income
INTEREST & DIVIDEND INCOME 7,821 67,9316,969 71,61770,178 (2) 3460.4691 105,000 2,247
6,969 70,178 71,617 7,821 67,931(2) 3Total For Interest/Dividend Income: 105,000 2,247
Customer PenaltiesCUSTOMER DELINQUENT PENALT 18,140 154,35923,513 148,764139,933 (6) (9)470.4701 250,000 (14,426)
23,513 139,933 148,764 18,140 154,359(6) (9)Total For Customer Penalties: 250,000 (14,426)
LFG ProjectLFG PROJECT 92,592 736,50592,762 781,061716,240 (8) (3)470.4721 1,136,812 (20,265)
92,762 716,240 781,061 92,592 736,505(8) (3)Total For LFG Project: 1,136,812 (20,265)
Connection FeesDISCONNECT & RECONNECT CHA 11,150 94,76624,375 44,773102,663 129 8470.4702 125,000 7,897
24,375 102,663 44,773 11,150 94,766129 8Total For Connection Fees: 125,000 7,897
SecuritySECURITY REVENUE 23,547 150,61619,777 180,062164,617 (9) 9470.4700 270,000 14,001
19,777 164,617 180,062 23,547 150,616(9) 9Total For Security: 270,000 14,001
Misc RevenueMISC ELEC REVENUE - TEMP CHG 400 1,0000 1,750600 (66) (40)470.4703 1,000 (400)
STREET LIGHT 0 01,500 04,500 0 0470.4704 0 4,500
NON-UTILITY OPERATIONS 6,562 45,1060 34,48851,101 48 13470.4715 65,000 5,995
MISC NON-UTILITY 4,256 32,9532,393 24,81025,177 1 (24)470.4722 35,000 (7,776)46
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
GAIN ON DISPOSITION OF PROP 18,000 33,0000 03,699 0 (89)470.4723 0 (29,301)
SALES OF MERCHANDISE (268) 4770 0644 0 35470.4724 0 168
RENTAL PROPERTY INCOME 2,060 16,4802,060 14,07616,522 17 0470.4750 24,720 42
5,953 102,244 75,124 31,010 129,01636 (21)Total For Misc Revenue: 125,720 (26,772)
Prior Period Adjustment0 0 0 0 00 0Total For Prior Period Adjustment: 0 0
Total Other Revenue184,260 1,333,193173,348 1,301,4011,295,875 0 (3)2,012,532 (37,318)
173,348 1,295,875 1,301,401 184,260 1,333,1930 (3)Total For Total Other Revenue: 2,012,532 (37,318)
3,184,018 21,593,1963,453,830 21,365,96621,729,605 2 1 Total Revenue 32,612,080 136,408
Expenses Purchased Power
PURCHASED POWER 2,454,045 15,382,3142,544,129 14,887,41814,519,260 (2) (6)540.5551 22,577,733 (863,054)
2,544,129 14,519,260 14,887,418 2,454,045 15,382,314(2) (6)Total For Purchased Power: 22,577,733 (863,054)
Operating & Mtce ExpenseOPERATING SUPERVISION 8,421 47,9497,413 58,49925,484 (56) (47)540.5461 89,342 (22,465)
DIESEL OIL FUEL 3,664 16,4877,893 15,62616,662 7 1540.5471 23,000 175
NATURAL GAS 690 19,1361,112 27,30917,710 (35) (7)540.5472 38,000 (1,426)
STATION PWR & WTR CONSP/PLA 4,217 31,5213,025 35,46323,576 (34) (25)540.5483 50,000 (7,945)
OTHER EXP/PLANT SUPPLIES-ETC 381 3,094593 4,6284,451 (4) 44540.5484 6,000 1,357
MISC OTHER PWR GENERATION E 1,885 8,4871,652 7,3697,994 8 (6)540.5491 13,000 (493)
MAINTENANCE OF STRUCTURE/P 2,680 18,6185,277 21,81228,501 31 53540.5521 32,525 9,883
MTCE OF ENGINES/GENERATORS- 145 10,1883,005 5,01711,528 130 13540.5531 43,555 1,340
MTCE OF PLANT/LAND IMPROVE 1,499 17,7311,432 21,75711,837 (46) (33)540.5541 32,000 (5,895)
31,403 147,743 197,480 23,582 173,212(25) (15)Total For Operating & Mtce Expense: 327,422 (25,469)
Landfill GasLFG PURCHASED GAS (4,065) 104,38513,461 105,488102,752 (3) (2)550.5050 170,000 (1,633)
LANDFILL GAS O&M 63,111 318,92741,613 329,312371,444 13 16550.5051 500,000 52,517
LFG ADMIN 47 94948 6,009764 (87) (19)550.5052 10,000 (185)
LFG INSURANCE 1,385 11,1331,386 10,94211,035 1 (1)550.5053 17,500 (98)
LFG MTCE 0 00 7,317365 (95) 0550.5054 20,000 365
47
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
56,508 486,359 459,068 60,478 435,3946 12Total For Landfill Gas: 717,500 50,965
Transmission ExpenseTRANSMISSION MTCE AND EXPE 0 0472 0472 0 0560.5620 0 472
472 472 0 0 00 0Total For Transmission Expense: 0 472
Distribution ExpenseREMOVE EXISTING SERV & METE 0 941149 133164 23 (83)580.5801 1,000 (777)
TRANSFORMER EX/OVERHD & UN 992 7,646714 8,2123,564 (57) (53)580.5831 11,000 (4,082)
MTCE OF SIGNAL SYSTEMS 200 5100 1,500436 (71) (15)580.5851 1,500 (74)
METER EXP - REMOVE & RESET 79 51765 2,381434 (82) (16)580.5861 4,000 (83)
TEMP SERVICE-INSTALL & REMO 155 1,266247 1,000889 (11) (30)580.5871 1,500 (377)
MISC DISTRIBUTION EXPENSE 14,343 114,36921,059 136,946165,527 21 45580.5881 203,515 51,158
22,234 171,014 150,172 15,769 125,25014 37Total For Distribution Expense: 227,515 45,764
Maintenance ExpenseMTCE OF STRUCTURES 159 3,96792 6,23819,699 216 397590.5911 7,500 15,733
MTCE OF SUBSTATIONS 2,337 12,7611,681 12,31614,604 19 14590.5921 20,000 1,843
MTCE OF SUBSTATION EQUIPME 65 2,2141,404 4,92410,098 105 356590.5922 10,000 7,884
MTCE OF OVERHD LINES/TREE TR 193 65,5990 133,29648,487 (64) (26)590.5931 135,000 (17,113)
MTCE OF OVERHD LINES/STANDB 2,668 16,4822,681 19,19317,370 (9) 5590.5932 30,000 889
MTCE OF OVERHEAD 13,985 70,4966,458 66,883153,828 130 118590.5933 97,120 83,333
MTCE OF UNDERGROUND/DISTRI 4,077 58,087(2,353) 59,85859,942 0 3590.5941 97,525 1,855
LOCATE UNDERGROUND PRIMAR 4,257 16,3092,661 17,42917,969 3 10590.5943 26,000 1,660
MTCE OF LINE TRANSFORMERS 7,529 26,33110,547 28,45329,073 2 10590.5951 35,000 2,742
MTCE OF STREET LIGHTING 3,344 19,84217,571 14,22838,484 170 94590.5961 35,000 18,642
MTCE OF SECURITY LIGHTING 1,024 8,009510 5,7906,760 17 (16)590.5962 12,000 (1,249)
MTCE OF METERS 7,308 54,2546,195 51,98153,569 3 (1)590.5971 85,515 (685)
VOLTAGE COMPLAINTS 1,449 5,408549 5,1714,894 (5) (10)590.5972 8,000 (515)
SALARIES/TRANS & DISTRIBUTIO 3,825 21,9833,578 28,44312,507 (56) (43)590.5981 43,575 (9,476)
ELECTRIC MAPPING 5,161 39,9485,453 49,06051,761 6 30590.5985 67,000 11,813
MTCE OF OVERHEAD SERVICE/2N 915 7,770756 5,2287,395 41 (5)590.5991 13,000 (375)
MTCE OF UNDERGROUND ELEC S (603) 19,6546,362 23,44221,828 (7) 11590.5992 37,020 2,173
LOCATE UNDERGROUND SECOND 3,891 15,2641,979 14,56513,878 (5) (9)590.5993 22,000 (1,386)
TRANSPORTATION EXPENSE 12,265 134,52410,106 105,93495,597 (10) (29)590.5995 166,515 (38,928)
48
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
76,231 677,744 652,432 73,849 598,9034 13Total For Maintenance Expense: 947,770 78,841
DepreciationDEPRECIATION 151,595 1,297,181159,760 1,533,3331,272,743 (17) (2)595.8031 2,300,000 (24,437)
159,760 1,272,743 1,533,333 151,595 1,297,181(17) (2)Total For Depreciation: 2,300,000 (24,437)
Interest ExpenseINTEREST ON BONDS/LONG TERM 12,323 125,83210,518 93,28691,786 (2) (27)596.8071 136,360 (34,046)
INTEREST ON DEFEASED BONDS (273) (2,181)(273) (2,184)(2,181) 0 0596.8075 (3,271) 0
AMORTIZATION OF DEBT DISCOU (1,159) (6,955)(1,159) (6,368)(9,273) 46 33597.8281 (9,552) (2,318)
9,086 80,332 84,734 10,891 116,696(5) (31)Total For Interest Expense: 123,537 (36,364)
SecuritySECURITY EXPENSE 16,670 131,44517,867 148,623141,252 (5) 7597.8172 215,000 9,808
17,867 141,252 148,623 16,670 131,445(5) 7Total For Security: 215,000 9,808
Other Operating ExpenseCOST & EXP MERCH JOBBING/ELE 0 00 0365 0 0597.8161 0 365
LOSS ON DISPOSITION OF PROP 0 11,8060 1,3153,623 176 (69)597.8213 20,000 (8,183)
OTHER DONATIONS 401 2,3180 1,8061,389 (23) (40)597.8263 5,000 (929)
DAM MAINTENANCE EXPENSE 0 0114 7,8001,712 (78) 0597.8264 7,800 1,712
INTEREST PD ON METER DEPOSIT 0 1835 65298 358 1,556597.8341 1,000 281
RENTAL PROPERTY EXPENSE 628 5,715144 3,3615,568 66 (3)597.8400 6,000 (147)
293 12,956 14,347 1,029 19,857(10) (35)Total For Other Operating Expense: 39,800 (6,901)
Customer Accounts ExpenseMETER READING EXPENSE 3,107 23,1162,246 22,64325,014 10 8900.9021 35,000 1,898
COLLECTING EXP DISC/RECONNE 1,752 8,8151,105 7,8577,680 (2) (13)900.9030 12,000 (1,135)
CUSTOMER CHECKS RETURNED - (1,388) (1,204)0 1,5010 (100) 0900.9041 1,500 1,204
MISC CUSTOMER ACCTS EXP-CO 12,258 107,20017,502 108,890162,497 49 52900.9051 162,220 55,296
CUST BLGS NOT PD/SENT FOR CO (219) 2,071(408) 44,533922 (98) (55)900.9061 45,000 (1,149)
20,445 196,113 185,424 15,510 139,9986 40Total For Customer Accounts Expense: 255,720 56,114
Administrative & General ExpenseSALARIES/OFFICE & COMMISSION 50,876 299,69844,522 373,520392,396 5 31920.9201 659,295 92,698
TEMPORARY STAFFING 3,029 5,2770 2,6640 (100) 0920.9205 4,000 (5,277)
OFFICE SUPPLIES & EXPENSE 3,193 67,16130,459 70,34699,765 42 49920.9211 110,000 32,604
LT & WATER CONSUMPTION/OFFI 1,750 10,4252,225 13,27911,500 (13) 10920.9212 25,000 1,075
49
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
BANK CHARGES (207) 508211 4,2521,905 (55) 275920.9213 4,000 1,396
LEGAL FEES 5,159 18,7651,884 21,91918,114 (17) (3)920.9221 40,000 (651)
AUDITING FEES 0 16,0770 14,40013,421 (7) (17)920.9231 14,400 (2,656)
INSURANCE 14,881 124,49713,213 116,865112,735 (4) (9)920.9241 176,866 (11,763)
UTILITY SHARE DEF COMP 686 40,0040 42,00044,766 7 12920.9260 42,000 4,762
UTIL SH OF MEDICAL/DENTAL/DI 24,525 280,05652,200 347,207324,376 (7) 16920.9261 525,936 44,319
UTILITY SHARE OF PERA 12,516 118,46414,213 131,793133,706 1 13920.9262 192,000 15,241
UTILITY SHARE OF FICA 20,638 124,40114,815 131,276129,655 (1) 4920.9263 192,000 5,254
EMPLOYEES SICK PAY 7,687 51,9415,052 40,84359,083 45 14920.9264 96,768 7,142
EMP VACATION/HOLIDAY PAY 27,748 146,17110,494 133,632137,600 3 (6)920.9266 230,000 (8,571)
CONSERVATION IMP PROGRAM (7,641) 37,8769,880 126,06473,808 (41) 95920.9269 186,454 35,932
ENVIRONMENTAL COMPLIANCE 2,059 16,7082,058 18,78516,176 (14) (3)920.9281 27,000 (532)
CONSULTING FEES 0 1,82424,832 32,64930,143 (8) 1,553920.9291 85,000 28,319
TELEPHONE 1,580 12,9991,942 13,78617,313 26 33920.9301 22,000 4,314
ADVERTISING 0 2,424161 3,7066,025 63 149920.9302 5,500 3,601
DUES & SUBSCRIPTIONS - FEES 9,385 97,6269,127 144,60061,523 (57) (37)920.9303 200,000 (36,103)
TRAVEL EXPENSE 488 620290 5,7587,461 30 1,103920.9304 15,500 6,841
SCHOOLS & MEETINGS 14,916 115,6603,066 119,53080,592 (33) (30)920.9305 177,294 (35,067)
MISC GENERAL EXPENSE (244) (260)0 0(1,720) 0 562920.9306 1,000 (1,460)
240,646 1,770,341 1,908,874 193,024 1,588,923(7) 11Total For Administrative & General Expense: 3,053,013 181,418
Total Expenses(before Operating Transfers)3,016,441 20,009,1733,179,074 20,221,90519,476,330 (4) (3)30,785,010 (532,844)
Operating Transfer Transfer To City For 99 Bond Operating Transfer/Other Funds
TRANSFER TO CITY 3% ER REVEN 81,325 530,73887,007 530,297545,292 3 3597.8262 810,000 14,555
87,007 545,292 530,297 81,325 530,7383 3Total For Operating Transfer/Other Funds: 810,000 14,555
Utilities & Labor DonatedUTILITIES & LABOR DONATED 49,092 354,88344,934 336,334352,842 5 (1)597.8261 515,000 (2,041)
44,934 352,842 336,334 49,092 354,8835 (1)Total For Utilities & Labor Donated: 515,000 (2,041)
Total Operating Transfer130,418 885,621131,941 866,631898,134 4 11,325,000 12,514
131,941 898,134 866,631 130,418 885,6214 1Total For Total Operating Transfer: 1,325,000 12,51450
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
37,160 698,403142,816 277,4301,355,141 388 94 Net Income Profit(Loss) 502,070 656,738
51
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
Water
RevenueOperating Revenue Water Sales
WATER SALES COMM & RES/COM 401,942 1,277,662294,645 1,239,6191,328,649 7 4610.6101 2,193,576 50,987
WATER SALES CITY DONATED 0 01,118 05,719 0 0610.6115 0 5,719
295,762 1,334,368 1,239,619 401,942 1,277,6628 4Total For Water Sales: 2,193,576 56,706
Total Operating Revenue401,942 1,277,662295,762 1,239,6191,334,368 8 42,193,576 56,706
295,762 1,334,368 1,239,619 401,942 1,277,6628 4Total For Total Operating Revenue: 2,193,576 56,706
Other Operating Revenue Interest/Dividend Income
INTEREST & DIVIDEND INCOME 1,955 16,9831,742 14,82917,127 15 1460.4691 26,700 144
OTHER INT/MISC REVENUE 0 740 0389 0 426460.4692 0 315
1,742 17,516 14,829 1,955 17,05718 3Total For Interest/Dividend Income: 26,700 459
Customer PenaltiesCUSTOMER PENALTIES 1,639 10,8633,079 6,36610,587 66 (3)620.6301 15,000 (277)
3,079 10,587 6,366 1,639 10,86366 (3)Total For Customer Penalties: 15,000 (277)
Connection FeesWATER/ACCESS/CONNECTION FE 15,174 158,60754,000 93,568150,340 61 (5)620.6401 150,000 (8,267)
MISC CONNECTION FEES 1,406 13,0207,135 7,25320,620 184 58620.6402 15,000 7,601
61,135 170,960 100,821 16,580 171,62770 0Total For Connection Fees: 165,000 (666)
Misc RevenueRENTAL PROPERTY INCOME 515 4,120515 3,5184,131 17 0470.4750 6,180 11
GAIN ON DISPOSITION OF PROP 0 7,2540 00 0 0620.6323 0 (7,254)
MISCELLANEOUS REVENUE 224 1,8240 1,050286 (73) (84)620.6403 2,500 (1,538)
HYDRANT MAINTENANCE PROGR 0 4,165521 4,6645,929 27 42620.6404 7,000 1,764
CONTRIBUTIONS FROM DEVELOP 0 3,9000 00 0 0620.6405 0 (3,900)
WATER TOWER LEASE 7,382 57,56013,938 57,225101,439 77 76620.6406 88,000 43,878
14,975 111,785 66,457 8,121 78,82468 42Total For Misc Revenue: 103,680 32,962
Restate Beginning Retained Earnings0 0 0 0 00 0Total For Restate Beginning Retained Earnings: 0 0
Total Other Revenue
52
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
28,296 278,37080,931 188,473310,848 65 12310,380 32,478
80,931 310,848 188,473 28,296 278,37065 12Total For Total Other Revenue: 310,380 32,478
430,238 1,556,033376,693 1,428,0921,645,216 15 6 Total Revenue 2,503,956 89,184
Expenses Production Expense
MTCE OF STRUCTURES 510 2,5084,739 14,19117,907 26 614700.7021 20,000 15,399
TOWER & GROUNDS INSPECTION 393 2,668441 01,245 0 (53)700.7022 0 (1,422)
5,181 19,152 14,191 903 5,17635 270Total For Production Expense: 20,000 13,977
Pumping ExpenseSUPERVISION 1,132 6,6611,598 13,7583,688 (73) (45)710.7101 20,600 (2,973)
SUPPLIES & EXPENSE 25,178 174,73122,822 162,253154,585 (5) (12)710.7181 250,000 (20,146)
SAMPLING 821 6,0221,508 5,5019,753 77 62710.7182 9,000 3,731
CHEMICAL FEED 4,653 32,7101,926 21,52820,631 (4) (37)710.7183 30,000 (12,079)
MTCE OF ELECT PUMPING EQUIP 393 7470 060 0 (92)710.7201 0 (687)
MTCE OF WELLS 8,506 68,3138,971 90,29266,510 (26) (3)710.7220 125,000 (1,803)
GENERATION 0 120 00 0 0710.7225 0 (12)
SCADA - PUMPING 786 5,4402,213 10,3645,840 (44) 7710.7230 15,000 400
39,037 261,067 303,696 41,470 294,636(14) (11)Total For Pumping Expense: 449,600 (33,569)
Distribution ExpenseMTCE OF WATER MAINS 6,128 27,2691,505 52,27215,617 (70) (43)730.7301 60,000 (11,652)
LOCATE WATER SVC 546 3,241224 5,4152,810 (48) (13)730.7309 7,500 (431)
LOCATE WATER MAIN 304 94065 0588 0 (37)730.7310 0 (352)
MTCE OF WATER SERVICES 3,395 14,709970 034,428 0 134730.7311 0 19,719
WATER METER SERVICE 930 2,259730 3,6784,134 12 83730.7312 5,000 1,875
INSTALL & MTC IRRIG METERS 72 1,13329 4,182715 (83) (37)730.7315 5,000 (418)
MTCE OF CUSTOMERS SERVICE 3,110 20,6202,534 18,38815,270 (17) (26)730.7321 31,000 (5,349)
WATER MAPPING 14 4,9250 2,7106,461 138 31730.7325 18,000 1,535
SCADA - DISTRIBUTION 629 4,594517 01,403 0 (69)730.7330 0 (3,191)
MTCE OF WATER HYDRANTS 4,077 18,5706,404 16,08818,045 12 (3)730.7331 25,000 (524)
MISC WATER EXPENSE/INVENTO 1,078 10,085178 9,3734,747 (49) (53)730.7341 12,000 (5,338)
WAGES/WATER 566 3,331372 01,417 0 (57)730.7391 0 (1,914)
53
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
TRANSPORTATION EXPENSE 1,015 7,3101,486 9,8959,276 (6) 27730.7395 15,000 1,966
GENERAL EXP/WATER PERMIT 0 13,2950 14,00011,593 (17) (13)730.7399 14,000 (1,702)
15,014 126,504 136,001 21,865 132,281(7) (4)Total For Distribution Expense: 192,500 (5,777)
DepreciationDEPRECIATION 90,478 720,10493,658 753,336747,185 (1) 4595.8031 1,130,000 27,080
93,658 747,185 753,336 90,478 720,104(1) 4Total For Depreciation: 1,130,000 27,080
Interest ExpenseINTEREST ON BONDS/LONG TERM 6,005 49,4455,450 45,05044,154 (2) (11)596.8071 67,080 (5,291)
INTEREST ON DEFEASED BONDS (68) (545)(68) (544)(545) 0 0596.8075 (818) 0
5,382 43,608 44,506 5,937 48,899(2) (11)Total For Interest Expense: 66,262 (5,291)
Other Operating ExpenseLOSS ON DISPOSITION OF PROP 0 43,6580 7000 (100) 0597.8213 1,000 (43,658)
INTEREST PD ON METER DEPOSIT 0 02 015 0 0597.8341 0 15
RENTAL PROPERTY EXPENSE 157 1,42936 1,4841,392 (6) (3)597.8400 2,500 (37)
2010 GO BONDS AMORT DISCOUN 0 00 (2,184)0 (100) 0750.7581 (3,272) 0
38 1,407 0 157 45,0870 (97)Total For Other Operating Expense: 228 (43,680)
Customer Accounts ExpenseMETER READING EXPENSE 519 2,481250 4,6921,098 (77) (56)900.9021 7,000 (1,384)
COLLECTING EXP DISC/RECONNE 290 1,4370 4,3360 (100) 0900.9030 6,500 (1,437)
MISC CUSTOMER ACCTS EXP-CO 3,653 29,3554,197 28,59441,012 43 40900.9051 45,000 11,657
CUST BLGS NOT PD/SENT FOR CO 0 1410 95311 (99) (92)900.9061 1,000 (130)
4,447 42,121 38,575 4,463 33,4159 26Total For Customer Accounts Expense: 59,500 8,705
Administrative & General ExpenseSALARIES/OFFICE & COMMISSION 11,203 67,89810,432 80,42792,063 14 36920.9201 141,000 24,165
TEMPORARY STAFFING 757 1,3190 1,3360 (100) 0920.9205 2,000 (1,319)
OFFICE SUPPLIES & EXPENSE 819 13,3221,727 24,72320,949 (15) 57920.9211 35,000 7,627
LT & WATER CONSUMPTION/OFFI 437 2,6060 2,6552,319 (13) (11)920.9212 5,000 (287)
BANK CHARGES 61 50653 631501 (21) (1)920.9213 1,000 (5)
LEGAL FEES 225 2,236642 3,8022,121 (44) (5)920.9221 5,500 (115)
AUDITING FEES 0 4,0190 3,5993,355 (7) (17)920.9231 3,600 (664)
INSURANCE 2,259 19,5041,862 30,93817,478 (44) (10)920.9241 44,216 (2,026)
UTILITY SHARE DEF COMP 0 9,8300 010,496 0 7920.9260 0 666
54
ELK RIVER MUNICIPAL UTILITESELK RIVER, MINNESOTA
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONFOR PERIOD ENDING AUGUST 2015
2015AUGUST
2014AUGUST
2015YTD
2014YTD
2015 YTD
BUDGET2015 YTDBud Var%
2014 v. 2015Actual Var%
YTDVARIANCE
2015 ANNUALBUDGET
UTIL SH OF MEDICAL/DENTAL/DI 10,322 90,74317,007 80,13998,157 22 8920.9261 121,423 7,414
UTILITY SHARE OF PERA 1,052 13,1531,328 25,32114,420 (43) 10920.9262 32,007 1,267
UTILITY SHARE OF FICA 2,524 14,8481,809 16,18715,175 (6) 2920.9263 23,083 327
EMPLOYEES SICK PAY 1,538 12,4571,090 10,72113,383 25 7920.9264 24,162 926
EMP VACATION/HOLIDAY PAY 5,689 35,4392,395 25,58549,664 94 40920.9266 46,535 14,225
MISCELLANEOUS - WELLHEAD P 0 5970 8,931516 (94) (14)920.9268 9,064 (82)
CONSERVATION IMP PROGRAM 1,115 6,811387 7,9763,462 (57) (49)920.9269 10,000 (3,350)
ENVIRONMENTAL COMPLIANCE 48 45350 536119 (78) (74)920.9281 750 (334)
CONSULTING FEES 0 3440 10,0000 (100) 0920.9291 10,000 (344)
TELEPHONE 394 3,242469 3,2004,283 34 32920.9301 5,100 1,041
ADVERTISING 0 2,8740 5,2723,164 (40) 10920.9302 5,272 290
DUES & SUBSCRIPTIONS - FEES 7,990 25,8397,973 28,50732,435 14 26920.9303 39,249 6,595
TRAVEL EXPENSE 0 (1)73 1711,408 723 (140,900)920.9304 2,500 1,409
SCHOOLS & MEETINGS 1,875 14,7431,007 14,91812,278 (18) (17)920.9305 23,479 (2,465)
MISC GENERAL EXPENSE 0 440 03 0 (93)920.9306 500 (41)
48,301 397,750 385,575 48,307 342,8293 16Total For Administrative & General Expense: 592,440 54,921
Total Expenses(before Operating Transfers)213,579 1,622,428211,059 1,675,8801,638,794 (2) 12,510,530 16,366
Operating Transfer Transfer To City For 99 Bond
TRANSFER TO CITY FOR 99 BOND 0 25,0000 30,00030,000 0 20597.8260 30,000 5,000 Operating Transfer/Other Funds Operating Transfer From City Utilities & Labor Donated
WATER AND LABOR DONATED 0 01,118 3365,719 1,602 0597.8261 500 5,719 Total Operating Transfer
0 25,0001,118 30,33635,719 0 4330,500 10,719
1,118 35,719 30,336 0 25,00018 43Total For Total Operating Transfer: 30,500 10,719
216,658 (91,395)164,517 (278,124)(29,296) (89) (68) Net Income Profit(Loss) (37,074) 62,098
55
Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Tom Sagstetter – Conservation and Key Accounts
Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 4.1
SUBJECT:
Electric Service Territory Update
BACKGROUND:
Updates relating to the electric service territory transfer from Connexus Energy.
DISCUSSION:
Area 1a Recap - On September 22, approximately 300 customers were transferred from
Connexus to ERMU. The outage was minimal and went extremely well. Meters were
changed out within the week. Meter reading was done in October and the data migration
and meter reading data looks to very accurate.
Electric Rates – Dave Berg of Dave Berg Consulting, LLC worked with staff to analyze
ERMU’s options to address differences from Connexus Energy in the demand tariff
philosophies. ERMU’s rate is more demand focused and Connexus’ rate is more energy
focus. Dave Berg and staff developed a short term solution and a long term plan. Staff
looks to discuss the proposed short and long term plan and have commission approval for
action.
Area 1b Update – This area is scheduled to be acquired on October 13 at 9:00am.
Approximately 600 customers will be transferred.
ACTION REQUESTED:
Staff requests discussion and action on the proposed temporary demand reduction.
ATTACHMENTS:
Retail Demand Rate Credit Report – Dave Berg Consulting, LLC. – September 22, 2015
56
September 22, 2015
To: Elk River Municipal Utilities From: Dave Berg Consulting Subject: Retail Demand Rate Credit Background Elk River Municipal Utilities (ERMU) is undertaking a series of service territory acquisitions from the surrounding rural electric cooperative. ERMU charges a retail demand and energy rate to all retail customers larger than 50 kW. The cooperative charges retail demand and energy rates to all customers greater than 25 kW. Both ERMU and the cooperative bill demand on a seasonal basis with higher demand rates in the summer. The effective ERMU demand rate based on total demand revenue and retail demand billing units is $13.50/kW. The cooperative’s effective total demand rate is estimated to be $9.00/kW. ERMU is interested in addressing this demand rate differential as these customers transition to becoming ERMU customers. Any rate adjustments made for these new customers would also apply to ERMU’s existing demand and large demand customers. ERMU’s retail demand charge is approximately $4.50/kW higher than the cooperative’s. However, including power cost adjustments, ERMU’s energy rate for demand customers is $0.006/kWh lower than the cooperative’s. This lower energy rate partially compensates for the higher demand rate. An average ERMU demand customer has a 60% monthly load factor. A 60% load factor customer uses 438 kWh per month for each 1 kW of demand. The lower ERMU energy rate would save an average demand customer $2.63 (438 kWh x 0.006) per kW of demand. This reduces the average demand difference between ERMU and the cooperative to $1.87/kW ($4.50 less $2.63). There are two other drivers that need to be considered when determining the rate impacts on the demand billed customers that are being acquired. The first is that ERMU does not charge for power factor correction. The cooperative charges the applicable monthly demand rate on billed kW and not measured kW. The billed kW is used when the customer’s average power factor is less than 90 percent. For customers with a power factor less than 90 percent, their bill under the cooperative’s rate will be adjusted higher but this adjustment does not occur under the ERMU rate. The second driver is some smaller customers will experience a change from the Demand Electric Service customer class to the Non-Demand Electric Service customer class. Customers that have demand between 25 kW and 49 kW will, in general, see energy cost benefits as a result of not having to pay demand or power factor correction charges. ERMU is considering temporarily lowering the demand portion of the demand and large demand retail rates. For example, a $2.00 reduction in the retail demand rate for 2016 would make the effective retail rates for ERMU and the cooperative more comparable for most demand billed customers. Based on current ERMU demand customers, this demand reduction would result in a reduction in annual revenue of approximately $761,500, or 2.4% of ERMU’s total annual revenues. ERMU plans to cover this deficit
57
from existing reserve funds. Any reductions after 2016 would be dependent on overall ERMU financials, continued discrepancies between ERMU and cooperative rates and ERMU sales growth. ERMU currently purchases its wholesale power requirements from Great River Energy (GRE). In 2018, ERMU is transitioning to a new wholesale supplier, the Minnesota Municipal Power Agency (MMPA). MMPA’s wholesale rate structure is different than GRE’s relative to overall demand and energy rates. ERMU is anticipating that overall wholesale costs will be lower and fixed (demand) wholesale costs will also be lower under MMPA service. ERMU is also planning to conduct an electric cost-of-service and rate design study in the near future. The results of a cost-of-service study will help address rate design considerations for all ERMU customers including the demand billed customers. It is anticipated that a cost-of-service analysis will consider both the existing GRE wholesale structure and the planned MMPA wholesale structure to examine how the cost basis for ERMU customers will change with the transition of wholesale providers. The cost-of-service results will also provide useful information relative to continued adjustments to the retail demand rates. Recommendations Elk River Municipal Utilities (ERMU) is evaluating a demand rate adjustment rate mechanism which will utilize a monthly demand adjustment (either a credit or charge) for the demand billed customer class. The demand adjustment mechanism will allow ERMU to make any additional future adjustments that may be warranted without having to change the Demand Electric Service tariff repeatedly to respond to changing conditions. The monthly demand adjustment would be very similar to the Power Cost Adjustment (PCA) mechanism that is currently charged or credited per kWh of energy. The nature of the adjustments and the impact on bills will need to be communicated to existing and acquired ERMU customers in the Demand Electric Service customer classes. It will be important that the customers understand that the demand adjustment will be temporary in nature and part of the transition in the acquisition of service territory and the change to a new wholesale power supplier in 2018. Customers will also need to understand that the rates will be further adjusted as necessary in the future to maintain ERMU’s financial standing and reflect ERMU’s cost basis.
David A. Berg, PE Principal Dave Berg Consulting, LLC
58
Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Troy Adams, P.E. – General Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 4.2
SUBJECT:
Payment in Lieu of Taxes (PILOT) and Other Donations to the City of Elk River
BACKGROUND:
Minnesota municipal utilities do not pay taxes to their city. It is very typical for the utility to
provide a payment in lieu of taxes (PILOT). ERMU has a policy which outlines the details of the
PILOT and other donations to the City of Elk River. This policy is reviewed at least once every
five years; the last policy changes were made on July 2, 2013.
DISCUSSION:
Delay for PILOT for Electrical Service Territory Transfer
On September 8, the commission reviewed proposed changes to the PILOT Policy that would
delay PILOT for the areas acquired from Connexus Energy through the March 20, 2015,
electric service territory transfer agreement. The PILOT was proposed to be delayed for each
customer acquired until the loss of revenue (LOR) payments that are outlined in the
agreement would complete. These LOR payments are made for 10 years after the acquisition
with a few exceptions for municipal development.
The commission discussed the proposed policy revisions and directed staff to strengthen the
language to be specific to the March 20, 2015, electric service territory transfer agreement.
This would eliminate any confusion regarding PILOT for LOR payments related to previous
acquisitions. The proposed policy has been updated to reflect the commission’s request.
Shift of Policy Mechanics from Donated Electricity to PILOT
The current PILOT Policy outlines in section 3.0 Donated Electricity stating that ERMU
“shall donate all electricity to the City of Elk River for all of their facilities not associated
with enterprise funds of the City of Elk River.” The administrative process associated with
this donation is extremely burdensome. Due to its manual nature, this process is also subject
to human and keying errors.
59
Page 2 of 2
Since the September meeting, staff have had discussions with the City about an option to
maintain the level of donation to the city and reduce the administration burden and risk for
error. ERMU and city staff have been evaluating increasing the PILOT percentage
contribution from 3% to 4%, and eliminating the donated electricity not associated with street
lights and signal lights. An analysis of the donated electricity, less the usage by street and
signal lights, is equivalent to 0.8% of revenue generated from electric sales for Elk River
customers. An increase in the PILOT of 1% with an offsetting reduction for the elimination
of donated electricity (with the exception of street and signal lights) would nearly be a cash
neutral policy change. The city would be seeing an increased expense because they would be
billed the electric usage, but the City would also have an offsetting source of revenue in
excess of the increased expense by approximately $38,000 based on projected 2015 sales
numbers.
For ERMU, this change would eliminate significant staff time to record and post these
donations through the billing system and the general ledger. It would also give a more
transparent representation of the actual costs of the City facilities. As ERMU grows within
the corporate boundaries of the City of Elk River, the additional increase in revenues will be
further increased with the 1% change to the PILOT, resulting in additional funds contributed
to the City. It is extremely likely that ERMU’s growth in sales will be a higher rate than the
growth of city government and the growth in city facility electric usage. This change is near
cash neutral for the City now, but will result in increased PILOT for the future.
Due to the 2016 budget approval process, utilities and city staff agree that a January 1, 2016,
implementation is better. However, to allow city staff to incorporate this proposed change
into their budget, staff looks to get commission approval immediately. This proposed
revision is attached separately and reflects the policy change proposed for October 13, 2015.
ACTION REQUESTED:
Staff recommends the Commission adopt effective immediately the policy revisions to
“ERMU Policy 8.13 – Payment in Lieu of Taxes (PILOT) and Other Donations to the
City of Elk River” which reflects a delay for PILOT related to the March 20, 2015,
electric service territory transfer agreement.
Staff recommends the Commission adopt the second proposed policy language change to
be effective January 1, 2016, which will result in a shift in policy mechanics increasing
the PILOT from 3% to 4% and eliminating the donation of electricity with the exception
of street and signal lights.
ATTACHMENTS:
Proposed October 13, 2015, revision to ERMU Policy 8.13 – Payment in Lieu of Taxes
(PILOT) and Other Donations to the City of Elk River
Proposed January 1, 2016, revision to ERMU Policy 8.13 – Payment in Lieu of Taxes
(PILOT) and Other Donations to the City of Elk River
60
8.13 Payment in Lieu of Taxes
(PILOT) and other Donations to the
City of Elk River
Page 1 of 2 Adopted December 6, 1994
Revised June 6, 2008
Revised July 2, 2013
Proposed Rev Oct 13, 2015
8.13 PAYMENT IN LIEU OF TAXES (PILOT) AND OTHER DONATIONS TO
THE CITY OF ELK RIVER
1.0 Purpose and Summary
The success of ERMU is linked with the success of our community. And the success of our
community is linked with the operation of our city government and ERMU. ERMU was
purchased by the City of Elk River in 1945 and separate governance was created per State
Statute in 1947. Although governed separately, ERMU is still an important component of our
local government and our city services.
It is typical for a municipal utility to provide a Payment in Lieu of Taxes (PILOT) and other
donations to their city, regardless of a separation of governance. Although typical, this
contribution should never inhibit ERMU’s ability to make repayment on debt, cause ERMU to
become non-competitive, or inhibit needed investment in personnel or infrastructure which may
hurt ERMU’s ability to meet the needs of their customers. For these reasons the PILOT and
other donations should be reviewed at least once every five (5) years by the ERMU Commission.
2.0 Payment in Lieu of Taxes (PILOT)
The PILOT transfer from Elk River Municipal Utilities to the City of Elk River shall be three
percent (3%) of the revenues generated by ERMU’s electric customers within the corporate
boundaries of the City of Elk River which are not subject to a loss of revenue payment resulting
from the March 20, 2015, electric service territory transfer agreement with Connexus Energy.
3.0 Donated Electricity
Elk River Municipal Utilities shall donate all electricity to the City of Elk River for all of their
facilities not associated with enterprise funds of the City of Elk River. As an example, this will
include buildings such as City Hall, Police and Fire Departments, Library, Park, Street
61
8.13 Payment in Lieu of Taxes
(PILOT) and other Donations to the
City of Elk River
Page 2 of 2 Adopted December 6, 1994
Revised June 6, 2008
Revised July 2, 2013
Proposed Rev Oct 13, 2015
Department Buildings, street lights, and signal lights; this shall not include such buildings as
Liquor Stores, Wastewater Treatment Plant, Ice Arena, or lift stations.
4.0 Donated Water
Elk River Municipal Utilities shall donate water for use by the Elk River Fire Department
(ERFD) for the purpose of extinguishing fires within the City of Elk River and other cities under
contract with the ERFD.
For the purpose of creating ice rinks for public/ non-enterprise use, ERMU shall donate water for
use by the Elk River Parks Department.
Elk River Municipal Utilities shall donate water for the use by the Elk River Streets Department
for the use of street sweeping.
5.0 Donated Labor
Because of specialized skills and equipment, ERMU may be able to provide a better value to our
community by donating labor to the City of Elk River. For example, ERMU has trained
employees and the equipment to hang banners where the City does not. In this example, ERMU
is able to provide this donated service to the City for less cost than a third party, creating greater
value to our community. For such situations, ERMU shall donate labor to the City of Elk River,
as appropriate, where a greater value is created for our community and where ERMU is not
subjected to undue burden.
In addition to hanging banners, other examples include: maintenance of street lighting, relamping
signal lights, locating underground fiber optics and/or other facilities, administration costs
associated with the billing of city franchise fees, installation of temporary lighting, relamping of
city ball field lighting, installation and/or maintenance of city warning sirens, meter reading for
wastewater, assistance with tree trimming, etc…
62
8.13 Payment in Lieu of Taxes
(PILOT) and other Donations to the
City of Elk River
Page 1 of 2 Adopted December 6, 1994
Revised June 6, 2008
Revised July 2, 2013
*Revised October 13, 2015
Proposed Rev Jan 1, 2016
8.13 PAYMENT IN LIEU OF TAXES (PILOT) AND OTHER DONATIONS TO
THE CITY OF ELK RIVER
1.0 Purpose and Summary
The success of ERMU is linked with the success of our community. And the success of our
community is linked with the operation of our city government and ERMU. ERMU was
purchased by the City of Elk River in 1945 and separate governance was created per State
Statute in 1947. Although governed separately, ERMU is still an important component of our
local government and our city services.
It is typical for a municipal utility to provide a Payment in Lieu of Taxes (PILOT) and other
donations to their city, regardless of a separation of governance. Although typical, this
contribution should never inhibit ERMU’s ability to make repayment on debt, cause ERMU to
become non-competitive, or inhibit needed investment in personnel or infrastructure which may
hurt ERMU’s ability to meet the needs of their customers. For these reasons the PILOT and
other donations should be reviewed at least once every five (5) years by the ERMU Commission.
2.0 Payment in Lieu of Taxes (PILOT)
The PILOT transfer from Elk River Municipal Utilities to the City of Elk River shall be three
percent (34%) of the revenues generated by ERMU’s electric customers within the corporate
boundaries of the City of Elk River which are not subject to a loss of revenue payment resulting
from the March 20, 2015, electric service territory transfer agreement with Connexus Energy.
3.0 Donated Electricity
Elk River Municipal Utilities shall donate all electricity to the City of Elk River for all of their
facilities not associated with enterprise funds of the City of Elk River. As an example, this will
include buildings such as City Hall, Police and Fire Departments, Library, Park, Street
63
8.13 Payment in Lieu of Taxes
(PILOT) and other Donations to the
City of Elk River
Page 2 of 2 Adopted December 6, 1994
Revised June 6, 2008
Revised July 2, 2013
*Revised October 13, 2015
Proposed Rev Jan 1, 2016
Department Buildings, street lights, and signal lights.; this shall not include such buildings as
Liquor Stores, Wastewater Treatment Plant, Ice Arena, or lift stations.
4.0 Donated Water
Elk River Municipal Utilities shall donate water for use by the Elk River Fire Department
(ERFD) for the purpose of extinguishing fires within the City of Elk River and other cities under
contract with the ERFD.
For the purpose of creating ice rinks for public/ non-enterprise use, ERMU shall donate water for
use by the Elk River Parks Department.
Elk River Municipal Utilities shall donate water for the use by the Elk River Streets Department
for the use of street sweeping.
5.0 Donated Labor
Because of specialized skills and equipment, ERMU may be able to provide a better value to our
community by donating labor to the City of Elk River. For example, ERMU has trained
employees and the equipment to hang banners where the City does not. In this example, ERMU
is able to provide this donated service to the City for less cost than a third party, creating greater
value to our community. For such situations, ERMU shall donate labor to the City of Elk River,
as appropriate, where a greater value is created for our community and where ERMU is not
subjected to undue burden.
In addition to hanging banners, other examples include: maintenance of street lighting, relamping
signal lights, locating underground fiber optics and/or other facilities, administration costs
associated with the billing of city franchise fees, installation of temporary lighting, relamping of
city ball field lighting, installation and/or maintenance of city warning sirens, meter reading for
wastewater, assistance with tree trimming, etc…
64
Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Troy Adams, P.E. – General Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 4.3
SUBJECT:
Expansion of the Elk River Municipal Utilities Board of Commissioners
BACKGROUND:
Shortly after the Village of Elk River purchased Elk River Power & Light, the council by the provision of
Minnesota Statute 412.331 created through resolution the Water, Light, Power and Building Commission.
This commission is now the Elk River Public Utilities Commission with responsibility for the municipal
electric and water departments. The commission’s membership is in accordance with Statue 412.341
“consisting of three members appointed by council.”
At the September 8 utilities commission meeting, staff was directed to present a proposed expansion of
the commission membership to the city council.
DISCUSSION:
A presentation was made at the October 5 city council meeting. Council supported the proposal for
expansion and discussed the number of council membership allowable on the commission. The council
approved action for legislation to expand the utilities commission up to five members; And Upon
expansion to five members, no more than two commissioners could come from council membership.
Minnesota Municipal Utilities Association (MMUA) helped draft language for legislation consistent with
commission and council direction. This language is attached. Contingent upon commission approval, this
language will be taken back to council for approval. Once both governing bodies have reviewed and
approved the attached language, MMUA and staff will work with our local Representative Nick Zerwas
to have the language taken to the Revisor’s office to draft the proposed legislation.
ACTION REQUESTED:
Staff requests Commission approve the proposed language for an expansion of the utilities commission.
ATTACHMENTS:
Proposed – Elk River Public Utilities Commission Expanded to Five Commissioners
65
Elk River Public Utilities Commission Expanded to Five Commissioners
Notwithstanding Minnesota Statutes, section 412.341, subdivision 1, the city of Elk River may
increase the membership of the city’s public utilities commission to five members. Upon expansion to
five members, no more than two members may be chosen from the council membership. Terms for the
additional members shall be staggered and made in accordance with the bylaws governing the utilities
commission.
EFFECTIVE DATE: LOCAL APPROVAL. This section is effective the day after the governing body of
the city of Elk River and its chief clerical officer complete in timely fashion their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
66
Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Mike O’Neill – Technical Services
Superintendent
MEETING DATE: October 13
th, 2015
AGENDA ITEM NUMBER: 4.4
SUBJECT: Environmental Pollution Agency Rules affecting ERMU’s Diesel Generation Facility
BACKGROUND:
In preparation for the 2016 power contract with Great River Energy (GRE) in regards to the
Diesel Engine Power Plant; I have been working with vendors/contractors to assess the need and
cost of retrofitting and upgrading the exhaust systems for our #3 and #4 generators to bring them
into compliance with new EPA regulations.
UPDATE:
The following information is submitted for your review:
1. Elk River Municipal Utilities (ERMU) is still in the process of deciding whether to
upgrade the exhaust systems to bring them into compliance at a cost of approximately
$400,000 or to forgo placing them on the in the MISO market with GRE and keep the
assets to be used for emergency use only.
2. If at a later time ERMU decides to bring these engines online in the MISO market, the
engines will have to be brought into compliance with the rules at that time.
3. ERMU is still receiving quotes from vendors and anticipates having a decision made
prior to the December 31st of this year. Staff is meeting with our future power provider
and our current power provider in accessing this situation.
ACTION REQUESTED: No action requested.
67
Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Theresa Slominski – Finance and Office
Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 5.1
SUBJECT:
2016 Water and Electric Expense Budgets
BACKGROUND:
In preparation for submittal in November, staff continues to work through the 2016 budget
process. The first cut of the expense portion of the 2016 budget has been completed for
commission review. The expense budget will change as the complete 2016 budget is assembled
and the finalized wholesale power costs are reflected. Revenues and rate increases for 2016 will
be presented in November.
DISCUSSION:
Attached is the following information for your review. Additional budget detail is available upon
request. Please contact staff for additional information.
1. Water Department Expense Budget – The 2016 forecast for water expenses are a 2.37%
increase over the current year budget. There are some re-distributions of the various
labor accounts and so the comparisons are more difficult to use but there are notes in the
margins to help identify where the differences are, as well as some explanations for
notable items.
Using budgeted revenue from 2015, without any water rate increase or adjustment for
new services, the water department would see a potential loss of ($96,000) or -3.69%
margin. As numbers are finalized, and revenue projected, this will be brought back in
November.
2. Electric Department Expense Budget – The 2016 forecast for electric expenses are a
2.78% increase over the current year budget. Wholesale power costs make up between
70-75% of the operating budget, and including the power costs, the increase is 2.94%
Ultimately, the wholesale rates set by Great River Energy (GRE) have an enormous
impact on ERMU’s rates. GRE has not finalized their 2016 wholesale power rates, and
we estimated a 3% increase, based on current usage. We still will need to factor in
68
Page 2 of 2
growth related to new construction and territory acquisition and final wholesale power
cost increases. The final GRE board approval of wholesale power rates usually comes by
early December. Typically, there is some adjustment of the rate structure and that may
impact us more than 3%. This will need to be adjusted prior to final budget approval.
Similar to the water expense budget, this draft does not reflect any increase in ERMU
electric rates. Without any electric rate increase, the electric department would see a
potential loss of $437,071 or -1.3% margin. In the recent past we have designed for a
1.5% margin. There is new growth and territory acquisition to include on the revenue
side as well and using last year’s number is not appropriate, but it does provide a
baseline. The rate design will be completed for the November meeting.
ATTACHMENTS:
Proposed 2016 Electric Expense Budget
Proposed 2016 Water Expense Budget
69
Electric
GL DivGL Acct Description 2014 Actual 2015 Budget 2016 Budget Notes and Explanations
Operations 61 - Elk River Electric540.5461 OPERATING SUPERVISION 54,812.00 89,342.00 151,000.00 Allocations different for 2016 for Elect Supt, Asst Elect Supt (new), Tech Serv Supt, GM
61 - Elk River Electric540.5471 DIESEL OIL FUEL 23,509.78 23,000.00 25,000.00
61 - Elk River Electric540.5472 NATURAL GAS 25,370.56 38,000.00 40,000.00
61 - Elk River Electric540.5483 STATION PWR & WTR CONSP/PLANT 47,630.87 50,000.00 50,000.00
61 - Elk River Electric540.5484 OTHER EXP/PLANT SUPPLIES-ETC 4,543.29 6,000.00 6,500.00
61 - Elk River Electric540.5491 MISC OTHER PWR GENERATION EXP 11,686.79 13,000.00 14,000.00
61 - Elk River Electric540.5521 MAINTENANCE OF STRUCTURE/PLANT 32,885.75 32,525.00 44,000.00
61 - Elk River Electric540.5531 MTCE OF ENGINES/GENERATORS-PL 6,023.46 43,555.00 35,000.00
61 - Elk River Electric540.5541 MTCE OF PLANT/LAND IMPROVEMENT 30,806.18 32,000.00 30,000.00
Total Operations 237,268.68 327,422.00 395,500.00
Purchased Power 61 - Elk River Electric540.5551 PURCHASED POWER 21,994,651.58 22,577,733.11 23,255,065.00 Amount to be determined with finalization of GRE budget *
Total Purchased Power 21,994,651.58 22,577,733.11 23,255,065.00
Landfill Gas Plant 61 - Elk River Electric550.505 LFG PURCHASED GAS 154,739.00 170,000.00 170,000.00
61 - Elk River Electric550.5051 LANDFILL GAS O&M 445,175.79 500,000.00 500,000.00
61 - Elk River Electric550.5052 LFG ADMIN 21,516.53 10,000.00 10,000.00
61 - Elk River Electric550.5053 LFG INSURANCE 16,671.84 17,500.00 17,500.00
61 - Elk River Electric550.5054 LFG MTCE 3,205.03 20,000.00 20,000.00
Total Landfill Gas Plant 641,308.19 717,500.00 717,500.00
Transmission 61 - Elk River Electric560.562 TRANSMISSION MTCE AND EXPENSE new 0.00 0.00 15,000.00 New account for better recording of transmission expenses for MISO reporting
Total Transmission 0.00 0.00 15,000.00
Distribution 61 - Elk River Electric580.5801 REMOVE EXISTING SERV & METERS 941.25 1,000.00 2,000.00
61 - Elk River Electric580.5821 SCADA EXPENSES 4,718.39 5,000.00 5,500.00
61 - Elk River Electric580.5831 TRANSFORMER EX/OVERHD & UNDERG 13,949.57 11,000.00 32,200.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric580.5851 MTCE OF SIGNAL SYSTEMS 1,324.39 1,500.00 1,500.00
61 - Elk River Electric580.5861 METER EXP - REMOVE & RESET 618.28 4,000.00 4,000.00
61 - Elk River Electric580.5871 TEMP SERVICE-INSTALL & REMOVE 2,910.46 1,500.00 1,500.00
61 - Elk River Electric580.5881 MISC DISTRIBUTION EXPENSE 167,199.41 203,515.00 280,000.00 Increased costs assumed for new territory acquisition
Total Distribution 191,661.75 227,515.00 326,700.00
70
GL DivGL Acct Description 2014 Actual 2015 Budget 2016 Budget Notes and Explanations
Maintenance 61 - Elk River Electric590.5911 MTCE OF STRUCTURES 4,947.95 7,500.00 10,000.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric590.5921 MTCE OF SUBSTATIONS 18,590.12 20,000.00 25,000.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric590.5922 MTCE OF SUBSTATION EQUIPMENT 8,663.42 10,000.00 25,000.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric590.5931 MTCE OF OVERHD LINES/TREE TRIM 72,118.56 135,000.00 100,000.00 Redistribution of labor with new territory acquisition
61 - Elk River Electric590.5932 MTCE OF OVERHD LINES/STANDBY 25,145.48 30,000.00 30,000.00
61 - Elk River Electric590.5933 MTCE OF OVERHEAD 127,049.18 97,120.00 120,000.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric590.5941 MTCE OF UNDERGROUND/DISTRIB 71,285.65 97,525.00 80,000.00 Redistribution of labor with new territory acquisition
61 - Elk River Electric590.5943 LOCATE UNDERGROUND PRIMARY 24,576.57 26,000.00 25,000.00
61 - Elk River Electric590.5951 MTCE OF LINE TRANSFORMERS 40,452.55 35,000.00 45,000.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric590.5961 MTCE OF STREET LIGHTING 53,148.40 35,000.00 40,000.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric590.5962 MTCE OF SECURITY LIGHTING 9,357.64 12,000.00 12,000.00
61 - Elk River Electric590.5971 MTCE OF METERS 84,972.46 85,515.00 95,000.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric590.5972 VOLTAGE COMPLAINTS 6,873.89 8,000.00 8,000.00
61 - Elk River Electric590.5981 SALARIES/TRANS & DISTRIBUTION 25,235.61 43,575.00 45,000.00 Allocations different for 2016 for Elect Supt, Asst Elect Supt (new), Tech Serv Supt, GM
61 - Elk River Electric590.5985 ELECTRIC MAPPING 57,725.96 67,000.00 105,000.00 Includes increased costs for Engineer position, allocation different for Tech Serv Supt
61 - Elk River Electric590.5991 MTCE OF OVERHEAD SERVICE/2NDRY 10,233.18 13,000.00 11,000.00 Redistribution of labor with new territory acquisition
61 - Elk River Electric590.5992 MTCE OF UNDERGROUND ELEC SERV 9,776.57 37,020.00 37,000.00
61 - Elk River Electric590.5993 LOCATE UNDERGROUND SECONDARY 21,832.81 22,000.00 18,000.00 Redistribution of labor with new territory acquisition
61 - Elk River Electric590.5995 TRANSPORTATION EXPENSE 197,533.68 166,515.00 175,000.00 2014 high - Increased costs assumed for new territory acquisition
Total Maintenance 869,519.68 947,770.00 1,006,000.00
Depreciation 61 - Elk River Electric595.8031 DEPRECIATION 1,914,061.50 2,300,000.00 2,300,000.00
Total Depreciation 1,914,061.50 2,300,000.00 2,300,000.00
Other Exp 61 - Elk River Electric596.8071 INTEREST ON BONDS/LONG TERM 175,122.90 136,360.00 114,540.00 Per bond contracts, lower interest 2016
61 - Elk River Electric596.8075 INTEREST ON DEFEASED BONDS -3,271.20 -3,271.00 -3,370.00 Per bond contracts
61 - Elk River Electric597.8172 SECURITY EXPENSE 198,128.27 215,000.00 215,000.00
61 - Elk River Electric597.8213 LOSS ON DISPOSITION OF PROP 3,475.49 20,000.00 15,000.00
61 - Elk River Electric597.8261 UTILITIES & LABOR DONATED 530,339.75 515,000.00 232,000.00 2016 no longer donate electric services, increase contribution 1% instead
61 - Elk River Electric597.8262 TRANSFER TO CITY 4% ER REVENUE 797,835.34 810,000.00 1,095,000.00 2016 no longer donate electric services, increase contribution from 3% to 4% instead *
61 - Elk River Electric597.8263 OTHER DONATIONS 4,782.25 5,000.00 5,000.00
61 - Elk River Electric597.8264 DAM MAINTENANCE EXPENSE 91.70 7,800.00 0.00 Moved to water budget
61 - Elk River Electric597.8281 AMORTIZATION OF DEBT DISCOUNT -11,591.80 -11,592.00 -14,328.00 Per bond contracts
61 - Elk River Electric597.8341 INTEREST PD ON METER DEPOSITS 431.15 1,000.00 1,000.00
61 - Elk River Electric597.84 RENTAL PROPERTY EXPENSE 6,335.06 6,000.00 6,000.00
Total Other Exp 1,701,678.91 1,701,297.00 1,665,842.00
71
GL DivGL Acct Description 2014 Actual 2015 Budget 2016 Budget Notes and Explanations
Customer Exp 61 - Elk River Electric900.9021 METER READING EXPENSE 35,123.24 35,000.00 41,700.00 Increased costs assumed for new territory acquisition
61 - Elk River Electric900.903 COLLECTING EXP DISC/RECONNECT 12,206.85 12,000.00 12,000.00
61 - Elk River Electric900.9051 MISC CUSTOMER ACCTS EXP-COMP 244,269.86 162,220.00 240,000.00 2014 incl Paymentus term $78k, Increased costs for full year of NISC software 2016
61 - Elk River Electric900.9061 CUST BLGS NOT PD/SENT FOR COLL 2,926.12 45,000.00 45,000.00
Total Customer Exp 294,526.07 254,220.00 338,700.00
Admin & General 61 - Elk River Electric920.9201 SALARIES/OFFICE & COMMISSION 537,658.20 659,295.17 691,000.00 Increased for staff positions filled in 2015 (addtl CSR, addtl Acct, filled Billing Specialist)
61 - Elk River Electric920.9201 TEMPORARY STAFFING 13,579.68 4,000.00 4,000.00 2014 high for Purchasing Specialist assistance
61 - Elk River Electric920.9211 OFFICE SUPPLIES & EXPENSE 108,493.16 110,000.00 114,000.00
61 - Elk River Electric920.9212 LT & WATER CONSUMPTION/OFFICE 21,602.88 25,000.00 24,000.00
61 - Elk River Electric920.9213 BANK CHARGES 1,267.46 4,000.00 4,000.00
61 - Elk River Electric920.9221 LEGAL FEES 29,420.14 40,000.00 25,000.00 2015 was higher for territory acquisition
61 - Elk River Electric920.9231 AUDITING FEES 16,077.10 14,400.00 14,400.00
61 - Elk River Electric920.9241 INSURANCE 197,140.29 176,865.60 177,000.00 2014 paid $20k unemployment
61 - Elk River Electric920.926 UTILITY SHARE DEF COMP 40,004.30 42,000.00 47,000.00
61 - Elk River Electric920.9261 UTIL SH OF MEDICAL/DENTAL/DISA 407,875.03 525,936.15 555,000.00 Includes employer share of 8.3% increase
61 - Elk River Electric920.9262 UTILITY SHARE OF PERA 179,668.72 192,000.00 275,000.00 2014 low - Increased for staff positions filled in 2015 as well as new Engineer 2016
61 - Elk River Electric920.9263 UTILITY SHARE OF FICA 178,056.22 192,000.00 195,000.00
61 - Elk River Electric920.9264 EMPLOYEES SICK PAY 82,166.19 96,768.00 95,000.00
61 - Elk River Electric920.9266 EMP VACATION/HOLIDAY PAY 238,396.85 230,000.00 250,000.00
61 - Elk River Electric920.9269 CONSERVATION IMP PROGRAM 91,675.57 186,454.00 169,444.00 more rebates paid from ERMU funds and not reimbursed from GRE, addtl staff 2015
61 - Elk River Electric920.9281 ENVIRONMENTAL COMPLIANCE 24,766.33 27,000.00 27,000.00
61 - Elk River Electric920.9291 CONSULTING FEES 4,923.68 85,000.00 30,000.00 2015 was higher for territory acquisition
61 - Elk River Electric920.9301 TELEPHONE 21,754.44 22,000.00 26,000.00
61 - Elk River Electric920.9302 ADVERTISING 2,913.51 5,500.00 7,000.00
61 - Elk River Electric920.9303 DUES & SUBSCRIPTIONS - FEES 134,632.92 200,000.00 87,000.00 2014 included MAPP fees that are no longer
61 - Elk River Electric920.9304 TRAVEL EXPENSE 3,212.12 15,500.00 15,000.00
61 - Elk River Electric920.9305 SCHOOLS & MEETINGS 149,929.05 177,294.00 175,000.00
61 - Elk River Electric920.9306 MISC GENERAL EXPENSE 51,809.48 1,000.00 1,000.00
61 - Elk River Electric920.9321 MTCE GEN PLANT/OFF HEAT 4,998.50 21,000.00 21,000.00
Total Admin & General 2,542,021.82 3,053,012.92 3,028,844.00
Total Expense Budget 32,106,470.03 33,049,151.00
2.94% increase over current year, total
2.78% increase over current year, excluding purchased power
* Amounts to be adjusted with kWh amounts determined from new acquisition territory
72
GL DivGL Acct Description 2014 Actual 2015 Budget 2016 Budget Notes and Explanations
Water
Other Exp 62 - Elk River Water595.8031 DEPRECIATION 1,083,769.71 1,130,000.00 1,140,000.00
62 - Elk River Water596.8071 INTEREST ON BONDS/LONG TERM 73,464.00 67,080.00 60,192.00 Per bond contracts, lower interest 2016
62 - Elk River Water596.8075 INTEREST ON DEFEASED BONDS -817.80 -818.00 -842.00 Per bond contracts
62 - Elk River Water750.7581 2010 GO BONDS AMORT DISCOUNT -3,272.00 -3,272.00 Per bond contracts
62 - Elk River Water596.8213 LOSS ON DISPOSITION OF PROP 43,138.13 1,000.00 1,000.00 2014 had loss on assets removed
62 - Elk River Water597.826 TRANSFER TO CITY FOR 99 BOND 25,000.00 30,000.00 30,000.00
62 - Elk River Water597.8261 WATER AND LABOR DONATED 500.00 500.00
62 - Elk River Water597.8264 DAM MAINTENANCE EXPENSE 0.00 7,800.00 Moved from electric budget
62 - Elk River Water597.8341 INTEREST PD ON METER DEPOSITS 0.00 20.00 New
62 - Elk River Water597.84 RENTAL PROPERTY EXPENSE 1,583.76 2,500.00 1,000.00
Total Other Exp 1,226,137.80 1,226,990.00 1,236,398.00
Production 62 - Elk River Water700.7021 MTCE OF STRUCTURES 12,143.57 20,000.00 28,000.00 Redistribution of labor in 2016
62 - Elk River Water700.7022 TOWER & GROUNDS INSPECTION 2,955.16 0.00 Redistribution of labor in 2015
Total Production 15,098.73 20,000.00 28,000.00
Pumping 62 - Elk River Water710.7101 SUPERVISION 7,516.30 20,600.00 47,000.00 Allocations different for 2016 for Water Supt, GM
62 - Elk River Water710.7181 SUPPLIES & EXPENSE 251,935.05 250,000.00 230,000.00
62 - Elk River Water710.7182 SAMPLING 9,264.45 9,000.00 15,000.00 Increase sampling requirements
62 - Elk River Water710.7183 CHEMICAL FEED 43,800.83 30,000.00 30,000.00 Switched chemical supplier in 2015
62 - Elk River Water710.722 MTCE OF WELLS 100,481.28 125,000.00 130,000.00 Redistribution of labor in 2016
62 - Elk River Water710.723 SCADA - PUMPING 10,499.17 15,000.00 12,500.00 Redistribution of labor in 2016
Total Pumping 423,497.08 449,600.00 464,500.00
Distribution 62 - Elk River Water730.7301 MTCE OF WATER MAINS 43,389.36 60,000.00 50,000.00 Redistribution of labor in 2016
62 - Elk River Water730.7309 LOCATE WATER SVC 5,343.88 7,500.00 7,500.00
62 - Elk River Water730.7311 MTCE OF WATER SERVICES 39,320.91 5,000.00 0.00 Redistribution of labor in 2016
62 - Elk River Water730.7312 WATER METER SERVICE 4,384.34 0.00 6,000.00 Redistribution of labor in 2016
62 - Elk River Water730.7315 INSTALL & MTC IRRIG METERS 1,409.32 5,000.00 5,000.00
62 - Elk River Water730.7321 MTCE OF CUSTOMERS SERVICE 30,880.61 31,000.00 25,000.00 Redistribution of labor in 2016
62 - Elk River Water730.7325 WATER MAPPING 12,649.28 18,000.00 18,000.00
62 - Elk River Water730.7331 MTCE OF WATER HYDRANTS 25,889.78 25,000.00 30,000.00 Redistribution of labor in 2016
62 - Elk River Water730.7341 MISC WATER EXPENSE/INVENTORY 11,372.37 12,000.00 12,000.00
62 - Elk River Water730.7391 WAGES/WATER 3,758.43 0.00 7,209.00 Allocations different for 2016 for GM
62 - Elk River Water730.7395 TRANSPORTATION EXPENSE 15,666.03 15,000.00 15,000.00
62 - Elk River Water730.7399 GENERAL EXP/WATER PERMIT 13,295.07 14,000.00 14,000.00
Total Distribution 207,359.38 192,500.00 189,709.00
73
GL DivGL Acct Description 2014 Actual 2015 Budget 2016 Budget Notes and Explanations
Customer Exp 62 - Elk River Water900.9021 METER READING EXPENSE 3,757.65 7,000.00 2,100.00 Redistribution of labor in 2016
62 - Elk River Water900.9021 COLLECTING EXP DISC/RECONNECT 1,437.15 6,500.00 1,000.00
62 - Elk River Water900.9051 MISC CUSTOMER ACCTS EXP-COMP 65,170.76 45,000.00 42,000.00 2014 incl Paymentus term $19k
62 - Elk River Water900.9061 CUST BLGS NOT PD/SENT FOR COLL 145.17 1,000.00 1,000.00
Total Customer Exp 70,510.73 59,500.00 46,100.00
Admin & General 62 - Elk River Water920.9201 SALARIES/OFFICE & COMMISSION 128,013.33 141,000.00 164,000.00 2015 low - Increased for staff positions filled in 2015
62 - Elk River Water920.9205 TEMPORARY STAFFING 3,379.14 2,000.00 2,000.00
62 - Elk River Water920.9211 OFFICE SUPPLIES & EXPENSE 23,093.57 35,000.00 28,000.00 2015 high
62 - Elk River Water920.9212 LT & WATER CONSUMPTION/OFFICE 5,400.70 5,000.00 5,000.00
62 - Elk River Water920.9213 BANK CHARGES 808.12 1,000.00 1,000.00
62 - Elk River Water920.9221 LEGAL FEES 4,007.06 5,500.00 5,000.00
62 - Elk River Water920.9231 AUDITING FEES 4,019.27 3,600.00 3,600.00
62 - Elk River Water920.9241 INSURANCE 31,669.76 44,216.40 35,000.00 2015 high
62 - Elk River Water920.926 UTILITY SHARE DEF COMP 9,829.59 12,000.00 12,000.00
62 - Elk River Water920.9261 UTIL SH OF MEDICAL/DENTAL/DISA 132,149.74 120,234.04 150,000.00 2015 low - Includes employer share of 8.3% increase
62 - Elk River Water920.9262 UTILITY SHARE OF PERA 19,929.52 23,000.00 23,000.00
62 - Elk River Water920.9263 UTILITY SHARE OF FICA 21,317.23 23,000.00 24,500.00
62 - Elk River Water920.9264 EMPLOYEES SICK PAY 19,492.95 23,040.00 25,000.00
62 - Elk River Water920.9266 EMP VACATION/HOLIDAY PAY 56,231.00 50,000.00 57,000.00
62 - Elk River Water920.9268 MISCELLANEOUS - WELLHEAD PROT 597.46 5,000.00 1,000.00
62 - Elk River Water920.9269 CONSERVATION IMP PROGRAM 15,290.43 10,000.00 10,000.00
62 - Elk River Water920.9281 ENVIRONMENTAL COMPLIANCE 487.37 750.00 575.00
62 - Elk River Water920.9291 CONSULTING 344.00 10,000.00 10,000.00
62 - Elk River Water920.9301 TELEPHONE 5,427.31 5,100.00 7,500.00 2015 low
62 - Elk River Water920.9302 ADVERTISING 2,996.44 5,000.00 4,000.00
62 - Elk River Water920.9303 DUES & SUBSCRIPTIONS - FEES 36,853.13 38,000.00 38,000.00
62 - Elk River Water920.9304 TRAVEL EXPENSE 824.25 2,500.00 2,750.00
62 - Elk River Water920.9305 SCHOOLS & MEETINGS 19,377.33 25,000.00 25,000.00
62 - Elk River Water920.9306 MISC GENERAL EXPENSE 1,660.47 500.00 500.00
62 - Elk River Water920.9321 MTCE GEN PLANT/OFF HTG 1,249.63 2,000.00 2,060.00
Total Admin & General 544,448.80 592,440.44 636,485.00
Total Expense Budget 2,541,030.44 2,601,192.00
2.37% increase over current year, total
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UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Troy Adams, P.E. – General Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 5.2
SUBJECT:
2016 Utilities Fee Schedule
DISCUSSION:
Typically, the Elk River Municipal Utilities Commission approves the budget in December.
Then in January, the rates and fees are published. Per legal counsel, the Utilities’ ability to
collect on fees would be strengthened by having them adopted into City ordinance after being
approved by the Commission. Although ERMU has not yet been notified of the 2016 wholesale
power costs increase, fees are less impacted by the wholesale power costs and in many cases can
be determined earlier in the budget process.
ACTION REQUESTED:
Staff recommends approving the 2016 Utilities Fee Schedule for adoption into ordinance by the
City Council.
ATTACHMENTS:
Proposed 2016 Utilities Fee Schedule
75
Elk River Municipal Utilities2016 Utilities Fee Schedule
Proposed Fee Schedule
1 New Residential Electric Connection - Developer - Lot with ERMU water service 475.00$ 475.00$ 2 New Residential Electric Connection - Developer - Lot without ERMU water service 575.00$ 575.00$ 3 New Residential Electric Connection - Builder 875.00$ 875.00$ 4 New Wire Footages over 200' (per foot) 4.00$ 4.00$ 5 New Service Frost Trenching (per foot) 5.00$ 5.00$ 6 New Commercial & Industrial Electric Connection 50% 50%7 Service Upgrades or Additions for Existing Customers 100% 100%8 Minimum Temporary Electric Service Fee - Existing Transformer 150.00$ 150.00$ 9 Minimum Temporary Electric Service Fee - Without Existing Transformer 500.00$ 500.00$
10 Street Light - 30' Decorative Pole with 6' Arm and Fixture 1,850.00$ 1,850.00$ 11 Street Light - 23' Decorative Pole with Traditionaire Fixture 1,500.00$ 1,500.00$ 12 Security Light - Wood Pole with Fixture 975.00$ 975.00$ 13 Security Light - Existing Pole 125.00$ 125.00$ 14 Pole Attachment Fee (per pole) 6.50$ 6.50$ 15
16 Water Access Charge = Water Connection Charge + Water Availability Charge 3,325.00$ 3,425.00$ 3.01%17 Water Connection Charge (Per Plumbing Unit) - Builder 3,000.00$ 3,090.00$ 3.00%18 Water Availability Charge (Per Plumbing Unit) - Developer 325.00$ 335.00$ 3.08%19 Abandoned Water Service 2,500.00$ 2,500.00$ 20 Hydrant Water Sales - Rental (per week) $50/week $50/week21 Hydrant Water Sales - Units (per 1000 gallons) 4.00$ 4.00$ 22 Deposit for 5/8" Hydrant Meter 150.00$ 150.00$ 23 Deposit for 2 1/2" Hydrant Meter 1,000.00$ 1,000.00$ 24 Private Hydrant Maintenance Program Monthly Fee 5.00$ 5.00$ 25
26 NSF Fee 30.00$ 30.00$ 27 Red Tag Handling Fee 20.00$ 20.00$ 28 Administrative Fee for Continued Submission of Checks After No-Check Notice Given 20.00$ 20.00$ 29 Penalty Amount 10% 10%30 Electric Service Disconnect Fee - Meter Technician 50.00$ 50.00$ 31 Electric Service Disconnect Fee - Line Crew 150.00$ 150.00$ 32 Water Shut-Off Fee 100.00$ 100.00$ 33 Meter Tampering Fee 250.00$ 250.00$ 34 Meter Testing Fee 50.00$ 50.00$ 35 Energy Audit 50.00$ 50.00$ 36
37 Billable Cost of Materials Markup 15% 15%38 Billable Labor Markup 55% 55%39 Billable Vehicle / Equipment (per employee per hour) 30.00$ 30.00$ 40
Fee Description 2015Proposed
2016
Proposed
Increase
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UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Theresa Slominski – Finance & Office
Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 5.3
SUBJECT:
Performance Metrics Update
BACKGROUND:
Following adoption of the Commission adopted Performance Metrics program in December
2012, we are tracking the progress for 2015, to be awarded in 2016. This is a company
performance based program designed to incentivize employee commitment towards the
company’s success. Divided into categories representing core values of the company and again
into sub-categories that are quantifiable, this program is designed to track goals that require
companywide support of the employees to continually achieve. When the employees work
together as a team to achieve these goals, the company recognizes a corresponding increase in
value to our customers.
DISCUSSION:
At close of the fiscal 2015 year, and completion of the audit, the final score card will be
evaluated and presented to the Commission for awarding the related bonus in 2016. We will be
tracking the progress of the company and the related score card quarterly throughout 2015. The
third quarter scorecard is attached, with some notes for the third quarter results.
ACTION REQUESTED:
None, this is for information only.
ATTACHMENTS:
Performance Metrics and Incentive Compensation Policy Score Card - 2015
77
Elk River Municipal UtilitiesPerformance Metrics and Incentive Compensation Policy Score Card - 2015
Category Percent Sub-Category Sub-Percent Goal Score
Awarded
Multiplier
Percentage Notes as of 9/2015
Water Quality Standards 15Meet
Requirements complete
CAIDI 5 <120 Minoff target 152.048 Minutes average customer out (down from 2nd qtr 176.111)
SAIDI 5 <90 Minon target 15.616 Minutes average system out (up from 2nd qtr 7.431)
SAIFI 5 < 0.5on target 0.1 Number of Interruptions (up from 2nd qtr .04)
Customer Satisfaction 10 > 85%complete Customer Satisfaction survey results 94.87%
Employee Turnover 10 < 7.5%on target 2.30%
Participation in Recommended
and Mandatory Trainings10 > 95%
on target 97.55%
Margins/Net Profit 20 > Budgeton target
Reserves 10 > Targeton target
Inventory Accuracy 10 > 95%on target as of 3rd qtr water (100%), electric (94.5%), security (91.4%)
Total Multiplier:
Approved December 12, 2012
Safety, Reliability
and Quality of
Utility Services
30
Customer Service
and Employee
Development
30
Financial Goals 40
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Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Troy Adams, P.E. – General Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 6.1a
SUBJECT:
Staff Updates – General Manager
DISCUSSION:
The Board of Directors of the Minnesota Municipal Power Agency (MMPA) met on
September 22, 2015 in Shakopee, Minnesota. At the meeting, the Board was informed
that the City of Chaska, Minnesota, an MMPA member, priced its refunding bonds
related to the Minnesota River Station. The refunded generated present value savings of
$3.3 million, which will be split equally between the City of Chaska and MMPA.
The Board also received updates on the distributed generation project in Shakopee,
Minnesota, and the solar project in Buffalo, Minnesota.
On October 7 the Midwest Municipal Transmission Group (MMTG) had their annual
meeting Mason City, Iowa. The membership approved the financial report and proposed
dues structure change. The change in dues structure shifts collecting for zonal dues to
general dues. The membership nominated and elected board members for those sits that
had become open.
The MMTG board held a meeting following the annual membership meeting. The board
nominated and elected officers. Wes Hompe, the General Manager of Willmar Municipal
Utilities, was elected 2016 MMTG Chair. The board also approved a memorandum of
understating with CMMPA to engage in transmission investment discussions on
MMTG’s behalf.
The Field Engineer position included in the 2015 budget continues to be on hold due to
the heavy workload associated with this time of year. We will look to post the position
yet this year.
Minnesota Municipal Utilities Association board approved action for a subcommittee to
develop the business plan and scope for a Leadership Development Program. I am on that
committee along with Jack Kegel – MMUA Executive Director, Jerry Williams –
Rochester Public Utilities Commissioner, and Mark Fritch – Owatonna Public Utilities
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Page 2 of 2
General Manager. The committee will present deliverables to the MMUA board for
approval with a desired MMUA Summer Conference roll out. The core mission for the
program is: “A leadership development program to enhance the competencies necessary
to excel as organizational leaders.”
Elk River Rotary kicks of the 2015-2016 Students Taking a Renewed Interest in the
Value of Education (STRIVE) Program with the Elk River High School on October 13.
The program pairs Rotarians with seniors in jeopardy of not graduating with their class.
This mentorship program takes place at the ERHS during first period approximately a
dozen times throughout the school year. Each mentorship session provides development
on life skills that should help the senior to not only raise their GPA and graduate, but
become successful in life. This will be my second year as a Rotarian mentor in this
program.
On October 5, the city council issued a proclamation declaring October 4-10 as Public
Power Week.
With the potential expansion in membership of the utilities commission, Michelle
Canterbury and I have started working on the governance manual and policy book
revisions that had been presented to the commission in the past.
I attended the October 5 council workshop for their budget discussion. The budget will
include a water trunk fund transfer of $300,000 for the 2016 Well #9 Filter Plant
addition. Tim Simon and Justin Femrite have been working Eric Volk and me over the
past few years on the project planning and water/wastewater trunk fund areas. This has
been a good process that has helped us to coordinate efforts.
ATTACHMENT:
Proclamation designating October 4-10 as Public Power Week
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Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Theresa Slominski – Finance and Office Manager
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 6.1b
SUBJECT:
Staff Update
DISCUSSION:
In the past, we have presented quarter write-offs in the month immediately following the
calendar quarter, so third quarter write-offs for July through September were presented in
October. With our new software, the process is different and the complete information is not
available in such a short turn-around. The process looks back a full month, and is run at the end
of a month. So July-Sept data is processed at the end of October, and would then be available to
present in November. Moving forward, we will be adjusting our reporting timeline by one
month. The new schedule will be as follows: third quarter presented in November, fourth
quarter presented in February, first quarter presented in May, and second quarter presented in
August.
We had four staff members attend the NISC software Member Information Conference (MIC) in
St. Louis, MO September 28th
– 30th
. Those attending were Jennie Nelson, Customer Service
Manager; Christy Schallock, Customer Service Representative; Jenny Biorn, Staff Accountant;
and Geri Fournier, Purchasing Specialist. They were able to participate in individual classes to
learn more about the software as they use it, ask questions of the experts, and network with other
users. All found it very valuable, and so thanks for allowing them the opportunity to attend.
Their education reports are attached.
I received communication from Assurant that they will be merging with another company,
SunLife Financial, by the end of the first quarter 2016, subject to regulatory approvals. Assurant
will still operate business as usual with employee contracts and we should have no change in our
benefits with them. Per an email from Assurant “This may have come to your attention so I just wanted
to pass along some facts about the acquisition announcement last evening. In short, nothing will change with our work on ERMU, not the offer, service, value adds, etc... All proposals will be issued under Assurant and honored as this merger will not be official for months. Sun has acquired all of our leases too so we’ll still be neighbors
with the same personnel.” I have attached a letter from the company as well.
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Page 2 of 2
ATTACHMENTS:
Jennie Nelson Education Report
Christy Schallock Education Report
Jenny Biorn Education Report
Geri Fournier Education Report
Assurant Letter
83
84
85
86
87
88
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Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Mark Fuchs – Electric Superintendent
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 6.1c
SUBJECT:
Staff Update
DISCUSSION:
Had seven new services.
Continue working on collecting data with the GPS for our ArcView maps as time
permits.
Continue working on changing out some of the rusty junction boxes or removing ones
that are no longer necessary.
Continue working on changing out fuse pads. This has been an ongoing project that had
to be done due to our high fault current.
Put rebuilding River Ranch in Otsego on hold until we have the new feeder from the
Waco substation to the court house area completed.
Continue working on installing a new feeder out of the Waco substation the court house
area.
Started installing wire for 16 new residential lots in Prestigious Woodland Hills Third
Addition.
Changed out a single phase pole and hung a larger transformer to address a voltage
complaint for the cell tower on 205th
Ave.
A driver of a gravel truck that forgot to put his box down hit two single phase taps and
broke a pole after they hit the secondary service.
Working on installation of a pole and blades for the County Road 12 Interconnection with
Connexus. We’ve also begun the process of replacing the stickers and locks on the
equipment with ours. While we’re doing this, we’ll make any necessary changes to the
maps and make notes on what needs to be fixed.
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Page 2 of 2
Curt Wark, Reid Nelson and Aaron White attended the Minnesota Municipal Utilities
Association (MMUA) Overhead Lineworker School September 15-18 in Marshall, MN.
Their education reports are attached.
ATTACHMENTS:
Curt Wark Education Report
Reid Nelson Education Report
Aaron White Education Report
91
92
93
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Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice-Chair
Daryl Thompson - Trustee
FROM:
Mike O’Neill – Technical Services Superintendent
MEETING DATE: October 13
th, 2015
AGENDA ITEM NUMBER: 6.1d
SUBJECT:
Staff Update
DISCUSSION:
The Locating department had a total of 360 locate tickets in September; three of them being
emergency tickets, four cancellations, 13 meetings, 311 normal tickets and 25 updated
tickets.
In September, the Security Systems Department had a total of 107 phone contacts, 11
systems quoted, seven system sales made, seven installs completed, 28 service calls and 11
personal visits.
Electric Technicians continue with the meter reading, power bill, substation checks, hanging
red-tags, meter read-outs, dealing with meter and off-peak issues, as well as delivering and
installing new meters to commercial customers. They continue to change out the three phase
meters with meters that will be read by radio. Preparations have begun for the conversion of
the new service territory in 1B. Meters have been ordered, working on ensuring that all
customers are in database.
The power plant staff did the monthly engine run on September 30th
. All engines ran well
with no problems.
Meter Technicians completed the meter swap out for the newly acquired 1A area in 2 ½
days. This was a great accomplishment and helped to ensure that ERMU would have
accurate and complete meter reads as well as all of the databases being correct in our billing
software.
Jeff Murray and Tony Hubbard attended the Minnesota Electric Meter School September
14-16 in Roseville, MN. Their education reports are attached.
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Page 2 of 2
ATTACHMENTS:
Security Systems Weekly Update
Security Systems Analysis
Jeff Murray Education Report
Tony Hubbard Education Report
96
13069 Orono Parkway P.O. Box 430Elk River, MN 55330-0430
Elk River Municipal Utilities
Security System Weekly Update
Month of August
Number of Contacts 89
Number of systems quoted 13
Number of sales made 7
Number of Installs completed 13
Number of service calls 23
Personal Visits 13
Revenue Aug-15 19,777$ Expense Aug-15 17,867$ Margin* Aug-15 1,910$
YTD Revenue Aug-15 164,617$ YTD Expense Aug-15 141,252$ YTD Margin* Aug-15 23,365$
* Margin calculations exclude depreciation, payroll taxes, benefits coverage and office support
97
Security Revenue and Margin 2014
Jan Feb Mar April May June July August Sept Oct Nov Dec
Total Year
Budget
Revenue 29,110 28,705 20,044 20,946 23,326 24,542 21,080 23,547 23,042 24,069 21,502 22,690 **YTD Revenue 29,110 57,815 77,859 98,805 122,131 146,674 167,754 191,301 214,343 238,412 259,914 282,604 265,000
Expense 12,292 13,237 20,940 16,508 16,354 14,136 21,308 16,670 12,898 21,556 15,469 16,761 **YTD Expense 12,292 25,529 46,469 62,977 79,331 93,467 114,775 131,445 144,342 165,898 181,367 198,128 215,000
Margin* 16,818 15,468 -896 4,438 6,972 10,407 -228 6,877 10,145 2,513 6,033 5,929YTD Margin* 16,818 32,286 31,391 35,829 42,801 53,207 52,979 59,856 70,001 72,514 78,547 84,476 50,000
** April 2014 results exclude correction for 40K overbilling on security services.* Margin calculations exclude depreciation, payroll taxes, benefits coverage and office support
Security Revenue and Margin 2015
Jan Feb Mar April May June July August Sept Oct Nov Dec
Total Year
Budget
Revenue 31,014 18,788 18,081 17,915 18,515 15,330 25,197 19,777YTD Revenue 31,014 49,802 67,883 85,798 104,313 119,643 144,840 164,617 164,617 164,617 164,617 164,617 270,000
Expense 14,894 16,335 20,367 20,561 16,936 18,172 16,120 17,867YTD Expense 14,894 31,229 51,596 72,157 89,093 107,265 123,385 141,252 141,252 141,252 141,252 141,252 215,000
Margin* 16,120 2,453 -2,286 -2,646 1,579 -2,842 9,077 1,910 0 0 0 0YTD Margin* 16,120 18,573 16,287 13,641 15,220 12,378 21,455 23,365 23,365 23,365 23,365 23,365 55,000
* Margin calculations exclude depreciation, payroll taxes, benefits coverage and office support
98
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Security Contribution in Dollars
Revenue Expense Margin
99
100
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Page 1 of 2
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Eric Volk - Water Superintendent
MEETING DATE: October 13, 2015
AGENDA ITEM NUMBER: 6.1e
SUBJECT:
Staff Update
DISCUSSION:
Delivered eight new residential water meters.
Sealed the water meter, and took curb stop ties from eleven water services.
Turned on two water services, and two electric services.
Turned off three water services, and two electric services.
Went on six service calls.
Completed 25 BACTI/Total Chlorine Residual Samples
o All confirmed negative for Coliform Bacteria.
Completed 20 routine fluoride samples
o All samples met MDH standards.
Fire hydrant preventative maintenance has been completed for 2015. The total amount of
fire hydrants that were serviced amounts to an astonishing 485 hydrants; this figure
includes 250 hydrants owned by the utility, 166 private hydrants, and another 85 hydrants
that were serviced by the water operators and painted by the HOG Chapter. At this rate,
all 1200+ hydrants in Elk River will have preventative maintenance in four years; one
year ahead of schedule.
Angela Hauge has started the long and tedious task of validating all of our GIS based
water maps. This will help to ensure that all of our valves are located on the proper water
mains and that there are no valves or hydrants missing from the map.
Dave Ninow has been working on locating and upgrading all of our tracing wire that was
installed with most of the HDPE water main. In the process, he will install “Snakepit”
locating boxes at as many locations as possible.
Mike Langer has a list of hydrant repairs that he is working on. These repairs were
identified during the preventative maintenance that was completed this summer.
We cleaned out the Gary Street Water Tower and drained it in preparation of Slack
Painting coming out to paint the belly of the tank, the dry tube, and the top of the
condensate ceiling.
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Page 2 of 2
Justin Femrite and Brandon Wisner facilitated the restructuring of the YMCA pond back
into two separate ponds how it had previously been before the YMCA was built. This
was required because we backwash Well #4 into the pond. In the future, the YMCA will
be responsible for part of the pond maintenance, and we will be responsible for our own
part.
Verizon Wireless is getting closer to installing antennas on the Auburn Street Water
Tower. Troy Adams is working on the contract and I am working on the site plans. After
this site is completed, we will have six attachment agreements on three different water
towers.
We met again with Kodet Architectural. They have produced a couple of different
variations for the future field services expansion. We have not decided on a direction for
the new building, the current buildings, or the field services property. We have worked
hard with Brandon Wisner and Kristin Mroz from the city to ensure we are sensitive to
the wetlands located on the property. As we progress further in the process, we will bring
site and building plans to the commission.
The water department will be hosting an intern from St. Cloud’s Technical College Water
Environmental Technologies (WET) Program. He will be shadowing the water operators
October 26-30.
I have been appointed as co-chair for the Training and Education Committee for the
Minnesota Section of the American Water Works Association (MN-AWWA). This four
year commitment consists of: first year is co-chair to be trained, second and third years
are chair, and the last year is co-chair to train my replacement.
ATTACHMENTS:
September Pumping By Well
September 2015 Daily Temperature Graph
September 2015 Accumulated Precipitation Graph
103
Values Are Displayed in Millions of Gallons (Well #, Gallons Pumped, Percentage of Pumping)
Well #2, 8.233, 9%
Well #3, 16.369, 19%
Well #4, 20.316, 23%
Well #5, 0, 0%
Well #6, 11.791, 14%
Well #7, 13.183, 15%
Well #8, 16.934, 20%
Well #9, 0, 0%
September 2015 Monthly Pumping By Well
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Page 1 of 1
UTILITIES COMMISSION MEETING
TO:
Elk River Municipal Utilities Commission
John Dietz – Chair
Al Nadeau – Vice Chair
Daryl Thompson – Trustee
FROM:
Tom Sagstetter - Conservation and Key Accounts
Manager
MEETING DATE: October 13
th, 2015
AGENDA ITEM NUMBER:
6.1f
SUBJECT:
Staff Update
DISCUSSION:
Rebate volume has been very high lately. The fourth quarter is always has the highest
volume. This is also the time of year where companies are putting together capital
budgets for the upcoming year and want rebate estimates.
The LED holiday lighting contest and promotions are being finalized and getting ready to
print. Attached is a copy of the LED holiday lighting promotional flyer.
The Coffer Dam data center project is still waiting for a final response. The most recent
response from September 20th
indicated that they have not made a final decision as of yet.
All of the commercial customers in area 1B were sent letters informing them of the
transition date and time. Jolene Fenn-Jansen followed up with a personal phone call to
each of the commercial customers to make sure they received the letter and to see if they
had any questions or concerns.
ATTACHEMENT:
LED Holiday Lighting Promotional Flyer
101
CONTESTGRAND PRIZE
FIRST RUNNER-UP
SECOND RUNNER-UP
MOST CREATIVE
BEST USE OF LED LIGHTS
*Community Ed. HOPE Award
$ 1 25 .0 0
$75 . 0 0
$50 . 0 0
$50 . 0 0
$50 . 0 0
$50 . 0 0
December 9-12 December 15
Winners Announced
Judging
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