Utility Commission

MINUTES OF THE WATER COMMISSION MEETING – APRIL 20, 2010 Call to Order Water Commission meeting was called to order at 6:00 P.M. by Kevin Coffey, Chair Roll Call PRESENT: Kevin Coffey, Chair Charles Fischer, Village President Mike Bevers Larry Van Lankvelt Roy Van Gheem Tim Wegand Leon Vanden Heuvel ALSO PRESENT: Village Administrator – Charles Kell, Director of Finance Dale Haug MCO Representatives – Jerry Verstegen and Chris Kang Village Clerk – Vicki Schneider Public Appearance for Items Not on the Agenda None Approval of Minutes Water Commission Minutes of March 16, 2010 Commission Van Lankvelt noted that the wording under MCO progress report should be changed so it states that well tests that have been conducted so far have not had negative results and also that under the Director of Public Work’s progress report, it should read that the driveway to Well #3 will be fixed and the word ponds should be removed. Moved by Commissioner Vanden Heuvel, seconded by Commissioner Bevers to approve the minutes of March 16, 2010 with the corrections as noted. All Ayes – Motion Carried 2009 Financial Review D. Haug led a review of the 2009 and prior year’s financial reports that included a review of the income and surplus statement, the rate of return for the utility, and charts showing data trends. D. Haug requested that the Commissioners’ review the information with a look to the future and the need for a PSC rate study. The return on rate base computation report shows a net income of 4.96% in 2009 which the Finance Director indicated was ok but to make the debt payments and to not postpone maintenance or repairs, the Utility should be trying to realize returns closer to the PSC authorized rate of 6.25%. D. Haug pointed out that the residential volume by class is declining while the industrial volume is increasing which is mainly due to the expansion of one employer in the Village. D. Haug also noted that the Village has been trying to establish more of a mix of industrial and commercial customers and residential has remained steady over the last five years and the population has not changed much over the last five years. D. Haug reviewed some of the operational and financial expenses of the utility. D. Haug commented on 80% of public fire protection costs being paid from the general fund and 20% being paid through individual utility bill payments and suggested that a future discussion may be needed to consider whether the use of the general fund for fire protection costs should be continued and also whether the payment in lieu of taxes should be increased. Discussion took place. D. Haug stated that a future meeting may include a discussion on proceeding with a rate case study and also about conservation measures that may need to be implemented. D. Haug stated he would present the Commission with an updated cash balance worksheet at the next meeting. Progress Reports MCO Operations Update J. Verstegen reported that there has not been any problems in the distribution system and spring hydrant flushing started this week. The backwash project at pumphouse #2 is being worked on and should be completed soon. J. Verstegen reported that there was another major failure at Well #4 due to a faulty wiring hookup to the motor and there was concern that the motor and VFD were damaged but both units were tested and found to be ok and the problem was isolated to the connection. J. Verstegen stated he did not expect to pay a bill for these repairs as the work was under warranty. McMahon’s did come in to perform an inspection of the wiring and further wiring corrections were needed. J. Verstegen stated staff is also checking into a fault that is knocking the well out and staff is confident that it is a signal from a flow switch and they may set up a video camera to try to catch the problem. J. Verstegen informed the Commissioners that when reservoir #2 was inspected it was noted and put in the DNR report that the roofing needed repair and a roofing company came in to fix the roof and inspect and make needed repairs on all of the utility’s roofs and the repairs cost $5,600. Director of Public Works R. Van Gheem commented on the status of the pond projects and the Washington Street reconstruction project and noted the other projects planned for this year have not moved forward. Finance Director D. Haug reviewed the March 2010 Budget Status Report and commented that they are seeing some cost savings due to the energy efficiency projects that have taken place at the plants. Approval of Vouchers Moved by Commissioner Vanden Heuvel, seconded by Commissioner Van Lankvelt to approve and authorize payment of the vouchers from their respective funds as presented. All Ayes – Motion Carried Unfinished Business J. Verstegen stated flow readings are being monitored at Crystal Print and he will provide a report on the findings at next month’s meeting. Items for Future Agenda Rate Study Case Discussion Adjournment Moved by Commissioner Wegand, seconded by Commissioner Bevers to adjourn the meeting at 7:02 p.m. All Ayes - Motion Carried VILLAGE OF LITTLE CHUTE By: Kevin Coffey, Chair Attest: Vicki Schneider, Village Clerk