City of Lanesboro Minnesota

City of Lanesboro, Minn.

City of Lanesboro, Minn.

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Lanesboro Public Utilities
Council Chambers
April 15th, 2008 @ 5:30pm
MEMBER(S) PRESENT: Evenson, Drake & Schuck
MEMBER ABSENT:
OTHER(S) PRESENT: B. Vickerman, J. Wagner & J. Peterson

Public Utilities Meeting Called to Order:
Evenson called regular meeting to order. At this time Peterson was called out on emergency call for no electric.

Agenda:
Drake made the motion to approve the agenda, with the addition of the grant request from the Chamber for $250.00 for Bluff Country Flood Relief for Tourism, second Schuck, motion carried.

Minutes:
Drake made motion to approve the minutes as read, second Schuck, motion carried.

PERSON’S WITH BUSINESS BEFORE THE COMMISSION:
N/A

HOUSEKEEPING:
A. Paying of the Bills: Evenson made motion to pay bills as presented, second Schuck, motion carried.
B. Past Due Bills: Vickerman noted that all accounts that had been rolled over for legal council, besides Steve Hanson’s, were paid.
C. Administrator’s Report: Vickerman noted that she had moved $100,000 to a money market for a higher interest return of 2.9%. She noted she had been given approval prior to invest funds for a better interest return.
D. Rate Study – Proposed Rate Increases: Vickerman, Wagner and Peterson went over the Electric Rate Study provided by Tom Nigon of Power Plus Engineering. The proposed rate changes were noted on the top table on page 18. Below is a quick overview of that table:
Residential: Base Rate up to $8.00 Electric Rate up to .098
Commercial 1ph: Base Rate up to $15.00 Electric Rate up to .093
Commercial 3ph: Base Rate at $26.00 Electric Rate down to .093
Security Light: Base Rate up to $6.00 Electric Rate at 0.00
City Street Light: Base Rate at $200.00 Electric Rate up to .073
* Electric Rates include old “fuel factor” variable that was used. Suggested rates will only include a fuel factor when fuel is used to generate.
Vickerman also noted that an increase may be needed in Sewer and Garbage. The sewer is looking at a net loss after depreciation for 2007 and garbage bills have an additional environmental fee that needs to be covered. Drake made motion to present the rate increases at the public hearing meeting on May 5th with Vickerman calculating the rate change for sewer and garbage, and using the rates from the rate study for electric, second Schuck, motion carried. Peterson returned to the meeting during this discussion.
E. Billing Structure: Peterson, Wagner and Vickerman went over there ideas for how the billing structure should be with the new software. The three will work together for a billing structure, prior to the first billing on the new software.
F. Transformer Failure: Peterson noted that the damaged transformer was loaded on April 15th in hopes that it can be rebuilt and able to be put back on line. The temporary transformer that the utility is using is too small for a summer load, but can be used as a spare unit in case of future issues. Vickerman will work with insurance company to verify what is covered.
G. Hydro Update: Peterson reported that approximately $20,000 more in improvements are needed for the hydro, due to items found internally. Evenson made motion to go ahead with repairs, since the utilities really has no choice, second Schuck, motion carried.
H. UMMPA: Wagner gave an update on UMMPA. He discussed the option of buying into a generation opportunity through UMMPA and WWMPG. He noted that he felt that Lanesboro should enter in to purchase 500 KW. Evenson made motion to approve Wagner’s request, second Schuck, motion carried.
I. Water Tower Maintenance: Peterson noted that we will need an inspection of the water towers and wanted to be sure it was in the budget.
J. Earth Day Events: Vickerman went over the upcoming Earth Day events and noted what the PU Commission bought for the children events.
K. Grant Request: The Chamber is requesting a $250.00 donation to match the City’s $250.00 donation towards a matching Minnesota Tourism Grant. The Bluff Country is applying for this grant and each City is trying to raise funds for the matching grant. Evenson made motion to approve the grant, but the motion died due to a lack of a second.

ADJOURN:
At 6:46pm, Drake made motion to adjourn, second by Schuck, motion carried.

Submitted Respectfully,

Bobbie Vickerman, City Administrator/Clerk

City of Lanesboro, Minn.

City of Lanesboro
Steven L. Rahn, Mayor | Bobbie Vickerman, City Administrator
202 Parkway Avenue South - - Lanesboro, MN 55949
507-467-3722 | lanesboro@acegroup.cc