UAB 031020M
Mountain Iron Utility Advisory Board
Minutes
10 March 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, and Ty Hebl, Lead Wastewater/Water Operator.
Moved by Harvey Hellyer supported by Sue Tuomela to approve the Consent Agenda including the 25 February 2020 Minutes. Motion carried unanimously
Communications:
Public Forum: None
Correspondence:
Reports:
Electrical:
01 March 2020 Feed outage from MN Power; breaker on their main substation on the highway caused an electrical outage for just under 2 hours.
Water:
No water line breaks to report
Old Business:
Utility Rates: Water and Sewer
The water and sewer rates were discussed together as the sewer revenue is based on the gallons of water used.
Satrang began with a comparison of other local utility companies and many have a lower base rate but higher rate per gallon for waste water. They all seem to generate a higher revenue than MIPU so it appears that raising the price per gallon would be the place to start discussing. And again, restructuring schedules and timecards will help track employee hours and cross training staff will help redistribute workforce time.
A spread sheet was created comparing Mountain Irons present rates to a series of adjusted rates. Mountain Irons current sewer residential rate is $3.50/1000 gallons of water and was noted that every $0.50 raise would generate around $28,000 so to come up with the $100,000 deficit there would need to be about a $1.50 price per 1000 gallon increase. Discussion ensued on which customers this would affect the most which was commercial customers with higher water usages. The average residential home uses around 5000 gallons so this increase would have their bills go up $7.50 per month.
Ty mentioned that it does appear that we are treating a lot of excessive water so if all houses were properly pumping out their water runoff via a sump it would help cut costs down. Satrang mentioned that there are some houses that are up to code with their sump pumps but it might be worth having a Point of Sale resolution for when houses turnover the City can make sure they are compliant. There is currently a $25 monthly fine for the houses that are not compliant.
Various different rates were manipulated in the spreadsheet to see what would be the best rate option would be. Modifications to the water treatment plant, such as the new aerators, will help keep costs down which will also help the fund maintain stability.
A motion was made by Reynold Renzaglia and supported by Bret Renzaglia to adjust rates for
Residential Sewer Rate: $20.00/month base charge and $5.30 per 1000 gallons of water used.
Commercial Sewer Rage: $30.00/month base rate and $5.30 per 1000 gallons of water used.
Roll Call B. Renzaglia yes; Tuomela yes; Hellyer yes; Osell yes; R. Renzaglia yes. Motion passed
Discussion took place about the water rates. Satrang expressed that he believes raising the water rates is not necessary as the fund itself really isn’t too far in the red. Keeping project costs down and monitoring the employees hours in the different departments should help replenish the funds.
A motion was made by Harvey Hellyer and supported by Sue Tuomela to not raise the water rates. Motion passed.
New Business: None
Other Items of Concerns: None
Meeting Adjourned at 5:20 pm
Respectfully submitted,
Lisa Stevens
Accounting Technician
