Minutes: Water and Light: July 2013

Water & Light Committee Meeting Regular Meeting Wednesday, July 31, 2013 Water & Light Shop, 15 Old Highway 92, Evansville, Wisconsin 5:00 p.m. MINUTES 1. Meeting called to order at 5:01 PM. Present-Brooks, Ladick, Montgomery. Also present, Mark Sendelbach, Brian Berquist, Mayor Sandy Decker. Dan Wietecha arrived during budget discussion. 2. Motion to approve Agenda as printed. Ladick/Montgomery- passed unanimously 3. Motion to waive the reading and approve June 26, 2013, Water & Light minutes as printed. Ladick/Montgomery -passed unanimously 4. Citizen appearances other than agenda items. None. 5. Customer concerns. Discussion and possible motions for billing adjustments. None. 6. Superintendent Report. a. Project Updates i. Garfield Ave-Underground portions of project are nearly complete. Surface work will begin during 1st full week of August. Mark requested that utility be informed when removal of the old road work will be near underground electric. ii. Hwy 59 -work is complete at both ends. Early billing looks to be higher than estimate but Mark is investigating timing of transition to old 92 for possible billing overlap. iii. Old 92 & 5th St -Poles are set and line has been pulled from Madison Street to Hyne Road. b. Disconnection report-Disconnection postponed one week due to high heat. 16 notices sent, 11 still disconnected. Four notices sent for nonpayment of repayment plans. One still disconnected, possibly occupied. 7. Committee Reports a. Capital Budget discussion-As part of capital budget discussion we looked at the report from Dixon Engineering regarding condition of the water tower. Recommendations from Dixon suggest that painting inside and outside, and various maintenance items should be undertaken in a 1 to 2 year timeframe rather than 5 years we were expecting from early reports. Total estimated cost for all repairs, paint, and upgrades, including $29,000 worth of engineering and contingencies, is $218,000. 2013 capital budget had estimated $160,000 in 2014 for painting the water tower. b. Mayor Decker, Mark, Sendelbach, and Jim Brooks met with Lauri Isaacson, Cory Neeley, and Phil Hansen of WPPI on the morning of July 31 to discuss AMI costs and possible timing. Prior capital budgets have allocated $50,000 per year on an ongoing basis for implementation of AMI, a figure that has been recognized is unrealistic. Based on equipment recommendations from Elster and discussion with WPPI regarding timing and financing. Total project expenses for implementation would be near $600,000. 1st year expenses for MDM integration would include $25,000 in WPPI service startup fees and $6000 for CIS Clarity implementation. Yearly ongoing expenses would be approximately $8200 per year for WPPI MDM management plus $1500 per year for Elster software license. c. Based on earlier estimates of revenue restraints and revenue caps, ability to finance major street repair project 2014 appears unlikely. The utility had budgeted $362,500 for 2014 for a 4th Street project that is unlikely to happen in that timeframe. d. Based on these discussions changes will be made to draft capital budget worksheet to reflect these expenditures: i. For 2014-remove $50,000 for smart grid meter program. Urban rebuild, $75,000 from cash on hand. Truck number 8 replacement, $28,000 placeholder, committee requested Mark to get more accurate estimate for replacement. The Union Street transformer project, $265,000 from cash on hand using proceeds from 2013 bonding. Move 4th Street project $362,474 to 2015. Increase Paint Water Tower from $160,000 to $220,000. Add $15,000 from funds on hand for GIS handheld and mapping project. Bring Northeast Urban rebuild forward from 2015, $425,000, if funding source can be identified. ii. 2015-remove $50,000 smart grid, remove $265,000 Union St. , move 2nd Street project $553,124 to 2016, remove $160,000 paint water tower, remove $425,000 Northeast Urban rebuild. Add new capital line for AMI implementation $600,000 total with $300,000 financed by no interest loan from WPPI. We’ve asked Lauri Isaacson to investigate possible loan balances for 2015. e. Mayor Decker requested that the committee look at Lineman wage competitiveness in the marketplace before placing operating budget request to Council. Committee asked for more information to be reviewed at August meeting. 8. WPPI Report. a. Written Report 9. Old Business. a. Discussion and motion to remove from table motion made April 24 to accept bid for water tower cleaning. (Carried from June)- Following discussion, no motion was made. Earlier motion failed on table. b. Motion to accept contract with Water Tower Clean and Coat to clean tower in the amount of $3200.- Rendered moot by 9a. 10. New Business.-None 11. Upcoming meeting dates. Next meeting at August 28, 2013- 5:00 at W&L Shop 12. Motion to adjourn. Ladick/Montgomery, meeting adjourned at 6:12 PM. Jim Brooks Committee Chairperson