Lanesboro Public Utilities
Council Chambers
April 17th, 2007 @ 5:00pm
MEMBER(S) PRESENT: Evenson, Drake & Schuck
MEMBER ABSENT:
OTHER(S) PRESENT: Jim Peterson, Jerod Wagner, Bob Spartz, Brian Krambeer & Mike Wish

Public Utilities Meeting Called to Order:
Evenson called regular meeting to order.

Agenda:
Motion made by Drake to approve agenda, second Evenson, motion carried.

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

PERSON’S WITH BUSINESS BEFORE THE COMMISSION:
Mike Wish – DPC, Bob Sparks and Brian Krambeer: Tri-County Electric
Electric Service History with DPC & Tri-County: Mike Wish of Dairyland Power apologized to Jerod for taking so long to get the information back to him on the questions that Jerod asked. Wish gave background and framework to where we are at right now along with improvements and how it all happened. A packet was given to all members with answers to all questions that Jerod had about transmission and DPC charges. The answer to the question on ownership of the line was also addressed. The tap line from Peterson to the tap line to Fountain also serves Tri-County Electric systems. In 1945 City made agreement to sell that tap to Tri-Conty Electric. Line losses alone would pay for the line and then the line was rebuilt. City responsible for payment of section of line, except for a part of the line that was credited towards the project for the single phase customers off of the agreement. To move forward, interconnection agreements have nothing to do with cost, it talks about who has the rights to use the lines for what. Something on Transmission line that disrupts, the agreeing partners have the right to jump off. Section x of our Wholesale power agreement discussed this, however, it is not carried over from existing contract. DPC believes there needs to be distribution agreement between the City and Tri-County. Usage and pricing need to be a part of the agreement. Mike said he would do that on behalf of Tri-County. Transmission payments would occur monthly, transmission charge, part is DPC and part is Tri-County. Billed by DPC for convenience rather than getting two bills. Tariff came into play after the DPC/Lanesboro agreemnet, so we were grandfathered in. Now as of May 2008 we will be subject to the tariff. Lanesboro to be part of the STS agreement has came up a few times. Lanesboro could request from Dairyland a cost estimate for joining. STS is a grandfathered agreement, can people join without the tariff, since it was put into play after the original STS agreement. WWMPG and Dairyland would have to investigate this. Brian Krambeer of Tri-County Electric approached the Commission and thanked Mike for putting this all together. Steve Sarvi worked with Bruce from Tri-County to accomplish an agreement, however documentation was not implemented. Long-term agreement would be a good thing for Tri-County. Brian appreciates the relationship with Lanesboro and would like to continue the wheeling and distribution. Cost to service study done every year. The Tri-County work plan includes the wheeling to Lanesboro and they appreciate the relationship. Long-term standpoint, the dollar amounts should not change a lot. Outages that the City had, Tri-County has put bird guards up, and there was no cost to Lanesboro. Communication needs to be improved. Tri-County would like to have Bob come down on a regular basis for line upgrades. Brian is available any time also if need be. Automatic meter reading devices are available to if that is anything that we can do. Jerod mentioned that going forward that if there is an agreement it should be cost based rates. Power plus was recommended to do a cost study and they did the last cost study. Jerod stated that all of the information was difficult to come together, but we appreciate the information. Verbal discussion has occurred, but we need to have more physical agreements. Council minutes may have territorial issues that need to be looked at. Franchise fees for a revenue stream for the tri-county customers was brought up and an. exchange of members on top may be territorial. Brian appreciates the opportunity to work with Lanesboro.
Krambeer noted that on May 1st, 2007 rates will be adjusted due to coal transportation costs, the railroad contract expired and coal costs doubled. There will be a 24% increase as of May 1st. The price went up from .03213 up to .03998. A suggestion was made to look into power cost adjustment rather than continually changing rates.

 

HOUSEKEEPING:
A. Administrator Report: Torgerson reported on the problems with the software. It was also suggested to get an estimated cost on a rates study by Power Plus.
B. Paying of the Bills: Evenson made motion to pay bills as presented, second Drake, motion carried.
C. Past Due Bills: Evenson moved to adjust bill to $300.00 on account #1300002 and talk with account #25400001 and work out an agreement, Schuck second, motion carried.
D. UMMPA/Electric Purchasing: UMS has been meeting with DPC. Came back with will/will not change proposal for Dairyland, but nothing complete as of yet.
E. Update on Green Power: Bio-Diesel and Hydro: Steve Downer from MMUA has expressed interest to Jerod for implementing Bio-diesel and he spoke about our hydro and possible grants. He will be going to governor’s right hand man and working with us to be on the map for Green Power.
F. Update on Progress of Power Plant: Almost finished.
G: Mutual Aid Agreements: Commission will look over for next meeting
H. Fillmore Avenue – Vacation – Mark Brewster: Commission discussed that with all the utilities that lie in that area, they did not recommend vacating that street.
I. Earth Day: Torgerson mentioned Earth Day and the need for participation in the clean up and the light plant tours. The Plant looks great and the employees have been working hard. The light bulbs are in and ready to be distributed.
J. Projects for 2007: Discussed some line improvements that will occur in 2007 and upgrades to exterior buildings.

ADJOURN:
At 6:31pm, Drake made motion to adjourn, second by Schuck, motion carried.

Submitted Respectfully,

Bobbie Torgerson, City Administrator/Clerk

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