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City of Mountain Iron, Minnesota



022520 UAB Minutes

Mountain Iron Utility Advisory Board

Minutes

25 February 2020

Meeting was called to order 4:03 p.m. by Chairperson Renzaglia

Members present:  Reynold Renzaglia, Sue Tuomela, Harvey Hellyer, Bret Renzaglia, Jacob Osell   Others present:  Joe Prebeg, Council Liaison, Tim Satrang, Public Works Director, Lisa Stevens, Accounting Technician.   

Moved by Sue Tuomela supported by Harvey Hellyer to approve the Consent Agenda including the 11 February 2020 Minutes.  Motion carried unanimously

Communications: 

Public Forum:  None

Correspondence:    

Reports: 

               Electrical:

24 February 2020 Rock Ridge Drive.  Fuse on a riser.  Once the problem was located, a road needed to be plowed in for           access with a truck.

South Grove.  Service line rubbing on a tree.   

Water:

               No water line breaks to report   

Old Business:

Utility Rates:  Electrical

Discussion took place on how operating expenses have increased and how that it resulted in an income loss over the past half dozen years.  The City apprentice program as produced three journeymen lineman making it a total of four journeyman lineman on staff plus one apprentice.  Investments into the power upgrade and cost of sales and employee benefits (healthcare) have also contributed. 

Satrang discussed how restructuring schedules and timecards will help track employee hours and cross training staff will help redistribute workforce time.  Utilize new software for tracking billable hours and material will also help in cost savings.  An LED upgrade in street lighting as well as converting some of the now Virginia feed to the new Mountain Iron substation should result in savings. 

A comparison of rates to a few local utility companies was provided. 

A spread sheet was created comparing Mountain Irons present rates to a series of adjusted rates.  Mountain Irons current residential rate is $0.078 was compared to $0.082 and resulted in a $52,000 increase in revenue; $0.083 and resulted in a $62,700 increase in revenue; 0.084 and resulted in a $72,600 increase in revenue; $0.085 and resulted in a $82,500 increase in revenue.  All new proposed rate adjustments included a $1.00 Service charge. 

Commercial rates with demand charge were also looked at.  Current rates are $0.060 kwh for energy charge along with a $18.50 kw demand charge.  Adjustments of 0.063 and $0.065 were provide along with numerous demand charge examples. 

A motion was made by Jacob Osell and supported by Harvey Hellyer to adjust rates for

Residential Service Rate:  $11.00/month Service charge and $0.084 per kwh.

General Service Rate:        $21.00/month service rate and $0.084 per kwh

Power Service Rate:  $21.00/month service charge;  Energy Charge $0.065/kwh;  Demand Charge $18.70 per KW

Discussion took place on the water tower project.  The City Council authorized Benchmark to solicit bids for the project.

Roll Call Osell yes; Hellyer yes;  Tuomela yes;  B. Renzaglia yes;  R. Renzaglia yes.  Motion passed

New Business:

Large Trash Pick Up

A motion was made By Sue Toumela and supported by Harvey Hellyer to approve the proposed Large Trash Pick Up. 

After a brief discussion, the motion passed unanimously. 

Next meeting set at 10 March 2020 at 4:00 pm at the Community Center

Other Items of Concerns:

Meeting Adjourned at 5:16 pm

Respectfully submitted,

Lisa Stevens

Accounting Technician

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