Utility Commission

MINUTES OF THE WATER COMMISSION MEETING – OCTOBER 19, 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 Mike Bevers Larry Van Lankvelt Tim Wegand Charles Fischer, Village President Leon Vanden Heuvel EXCUSED: Charles Fischer, Village President Roy Van Gheem ALSO PRESENT: Village Administrator Charles Kell, Director of Finance Dale Haug Village Clerk, Vicki Schneider, MCO Representative – Jerry Verstegen Public Appearance for Items Not on the Agenda None Approval of Minutes Water Commission Minutes of September 21, 2010 Moved by Commissioner Vanden Heuvel, seconded by Commissioner Bevers to approve the minutes of September 21, 2010 as presented. All Ayes – Motion Carried Review/Discussion/Possible Action – Well House #3 Facility Upgrades J. Verstegen reviewed the costs for the proposed upgrades to Well House #3 and noted the upgrades are being proposed to be done in two phases. J. Verstegen noted the amount of money that can be saved by having some areas of the project handled by his staff and Public Works staff. J. Verstegen stated he would like to move forward with getting the VFD bid out. J. Verstegen informed the Commission that Kaukauna Utilities has a new person in charge of the grant program and this person is interested in looking at the entire water system in the Village to see what can be done in the system for incentives and savings and the upgrades in the project do qualify for the $8,000 Focus on Energy grant if they are done yet this year, which is why staff wants to move forward with this part of the project at this time. J. Verstegen stated that the proposed high end of the cost estimates for the project in 2010 is $65,080 which is under the budgeted amount of $80,000. It was noted that $10,000 of the $80,000 has already been spent for the preliminary evaluation. J. Verstegen stated he has to work at in-house prices for the projects that are being proposed to be done in phase two which would take place in 2011 or 2012. Commissioners commented that they want the specs for the VFD to be verified so they don’t have to deal with the same problems that happened with the VFD at Well #4. Staff noted that the Commission had previously approved the study and the budgeted amount of $80,000 for the facility upgrades. Moved by Commissioner Bevers, seconded by Commissioner Wegand to Approve the Facility Upgrades for Well House #3 as presented at the estimated cost of $65,080 in 2010 with the balance of the work to be performed in 2011. All Ayes – Motion Carried  Water Commission Meeting Minutes – October 19, 2010 – Page 2 Action on Kaukauna Utilities 2011 Billing Agreement D. Haug led a discussion on the Kaukauna Utilities Billing Agreement noting that the agreement for 2011 proposes a 1.9% increase. D. Haug stated he supports and recommends approval of the KU 2011 Billing Agreement. D. Haug stated if the agreement is approved by the Commission, it will then be presented to the Village Board for approval. Moved by Commissioner Vanden Heuvel, seconded by Commissioner Van Lankvelt to Approve the 2011 Kaukauna Utilities Billing Agreement. All Ayes – Motion Carried Discussion – 2011 Budget D. Haug led a review of the operational budget and tentative capital improvement projects. D. Haug noted that the budget is being prepared with an estimated 10% rate increase but that doesn’t mean that revenues will go up that amount because water volume continues to decrease because of conservation efforts. D. Haug noted that the annual tower lease revenue of $16,000 will be added to the operating budget and $20,000 to the CIP to complete the Well #3 project. D. Haug noted that the Revenue Bond coverage ratio meets the test to cover outstanding debt. J. Verstegen noted that $5,000 is being budget for back flow inspections and to supply households with vacuum breakers. Staff noted that it is possible that Sanitorium Road may be added into the CIP for 2011 and an updated on the Main St. project was discussed with the Commission. Discussion took place on the 2011 operational budget. Progress Reports MCO Operations Update J. Verstegen reported that an air compressor went out at Well #4 and the motor is being replaced but this type of air compressor is not adequate for use at the wells and this issue will be addressed in the future. J. Verstegen stated the Public Works Director has instructed him to adjust the hardness level to see what the impact is as there have been a couple of complaints received and he will be gathering information on the effect of adjusting the hardness level and this data will be presented to the Public Works Director. J. Verstegen reported that the hydrant flushing program had been completed and he reported on the issues with the private hydrant and the hydrant flushing at Dutch Harbor and he also noted that they did aggressive flushing on Riverside Dr. and options for the water main are being looked at for the area on Riverside Dr. that continues to have issues. J. Verstegen reported that it was a good year for meter changes and there are only six left to change and he also commented that the cross connections are going well. Director of Public Works No report Finance Director D. Haug reviewed the budget status report and noted that the budget is on track for this year. D. Haug reviewed the history and the current status of delinquent utility accounts. D. Haug stated that he planned to have the rate case study application submitted to the PSC before the November Commission meeting. Commissioners reviewed the request by the Finance Director that concerned the rate application and identifying water conservation and efficiency programs and the Commissioners agreed that the application should be submitted without any request to modify the rate for water conservation at this time and to leave the areas identified for conservation as education and outreach and leak detection and water loss control. D. Haug also reviewed the public fire protection summary and the proposals for public fire protection charges and Payments from the Water Utility in Lieu of Taxes.  Water Commission Meeting Minutes – October 19, 2010 – Page 3 Approval of Vouchers Discussion took place on the correct amount of the September 23 bills list. Moved by Commissioner Coffey, seconded by Commissioner Van Lankvelt to approve and authorize payment of the vouchers from their respective funds with the revised number for September of $29, 970.00 for a total disbursement of $74,961.37. All Ayes – Motion Carried Unfinished Business None Items for Future Agenda Amount of outstanding special assessments for Evergreen Drive. Cost to reduce hardness level. Tour of the Well Houses following the November meeting. Adjournment Moved by Commissioner Vanden Heuvel, seconded by Commissioner Wegand to adjourn the meeting at 7:49 p.m. All Ayes - Motion Carried VILLAGE OF LITTLE CHUTE By: Kevin Coffey, Chair Attest: Vicki Schneider, Village Clerk