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City of Mountain Iron, Minnesota



Utility Advisory Board Meeting Minutes for February 03, 2016

MOUNTAIN IRON UTILITY ADVISORY BOARD

MINUTES

WEDNESDAY, FEBRUARY 3, 2016

 

The meeting was called to order at 4:00 p.m. by Chairperson Renzaglia.  Members present:  Reynold Renzaglia, Harvey Hellyer and Bruce Peterson.  Members Absent:  Joe Matanich and Susan Tuomela Others present:  Michael Downs, Public Works Director, Joe Prebeg, Council Liaison, and Judy Seurer, Accounting Technician.

 

It was moved by Hellyer and supported by Peterson to approve the minutes of the December 1, 2015 meeting.    The motion carried unanimously.

 

No one was present at the public forum.

 

The Public Works Director reported that there had been one blip on the electric system on January 7, 2016, but no outages and no water line breaks.

 

Discussion took place concerning the water rates, increasing costs of supplying water and making up the shortfall in the water fund.

 

It was moved by Renzaglia and supported by Heller to increase the residential monthly service fee for water to $17.00 per month, the commercial monthly service fee for water to $28.00 per month and the use fee for both to $2.50 per 1000 gallons of water used.  The new rates would be effective immediately after City Council approval.  The motion carried unanimously.

 

The Board discussed at length the budget for the wastewater fund and the projected shortfall for 2016.  It was suggested that reducing expenses be looked at, as well as increasing revenue through a rate increase.  The Board members also wanted more analysis of the budget before its approval.

 

It was moved by Peterson and supported by Renzaglia to increase the residential and commercial monthly service fee for wastewater by $5.00 per month as of March 1, 2016 and to increase the residential and commercial use fee for wastewater to $4.00 per 1000 gallons used as of January 1, 2017 with the City Council’s approval.  The motion carried unanimously.

 

The Public Works Director stated that the management company for the Mountain Manor Apartments has made a request to eliminate the meter deposit requirement for the apartments in exchange for their guaranteeing payment of the utility bills or the City’s EDA guaranteeing payment of the bills.  They are requesting this, because potential tenants have difficulty paying the required $350.00. 

 

It was moved by Hellyer and supported by Renzaglia to recommend City Council approval of a deposit agreement with D.W. Jones for the Mountain Manor Apartments to eliminate the need for meter deposits in exchange for guaranteeing payment on the utility accounts for the tenants.  The motion carried unanimously.

 

The Public Works Director requested the Board to consider establishing a new program to help electric customers with A meter bases to upgrade their meter base to enable them to have the new AMR meters installed.  He suggested giving the eligible customers $500 towards the cost of a new meter base and requiring them to upgrade within one year or be fined $25.00 per month until it is upgraded.

 

 

 

Utility Advisory Board Meeting

February 3, 2016

Page 2

 

It was moved by Hellyer and supported by Peterson to recommend to the City Council that a program be established for electric customers with A meter bases to receive a $500 incentive payment when their meter base is upgraded and to establish a $25 fine for those customers not upgrading their service within one year.  The program is to be offered in 2016 only.  The motion carried unanimously.

 

The next meeting was scheduled for March 22, 2016.

 

The Public Works Director made an announcement that this is the last Board meeting for Judy Seurer, the Accounting Technician.  She will be retiring on February 12, 2016.

 

At 5:09 p.m., it was moved by Peterson and supported by Hellyer to adjourn the meeting.  The motion carried and the meeting was adjourned.

 

Respectfully submitted,

Judy Seurer

Accounting Technician

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