CEDARBURG LIGHT & WATER COMMISSION. November 17, 2014
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1 LW CEDARBURG LIGHT & WATER COMMISSION November 17, 2014 The regular monthly meeting of the Light & Water Commission was held on Monday, November 17, 2014 at 7:00 p.m. at the Cedarburg Light & Water Utility Building, N30W5926 Lincoln Boulevard, Cedarburg, WI Call to order by President Blaine Hilgendorf Roll Call: Present - Jim Coutts, Joseph Dorr, Blaine Hilgendorf, Tim Larson, Andy Moss, David Pagel, and Council Representative Art Filter Also Present General Manager Dale Lythjohan, Assistant Manager Jill Frank, Electric Superintendent Karsten Huse, Water Superintendent Tim Martin, and Financial Manager Lynda Lalley STATEMENT OF PUBLIC NOTICE The Statement of Public Notice was read, and it was acknowledged that the agenda for this meeting was posted and distributed in compliance with the Wisconsin Open Meetings Law. APPROVAL OF MINUTES The minutes of the Regular Meeting held on October 20, 2014 were read and approved on a motion by Art Filter, seconded by Joe Dorr. Motion carried. VOUCHER SUMMARY FOR OCTOBER Accounts Payable $ 597, ACH & Wire Transfers 789, Payroll 97, Total Vouchers $1,483, BANK BALANCE FOR OCTOBER Balance Available $ 253, Deposits 1,526, Checks and Other Debits 1,645, Available Balance $ 134,225,75 REVENUE ITEMS FOR OCTOBER Light & Power Sold 8,253,176 kwh $ 879, Street Lighting Revenue 95,805 kwh 24, Water Sold 31,286,500 Gallons 111, Water Pumped 32,706,590 Gallons; Power Used 78,478 kwh 7, $ 1,023,190.53
2 LW NEW BUSINESS INTRODUCTION OF L&W ADMINISTRATIVE MANAGER, BECKIE JOSEPHITIS General Manager Lythjohan introduced Beckie Josephitis. Beckie worked most recently at Roundy s and Metavante. Her experience is in Human Resources, benefits, customer service, and project management. Beckie lives in Cedarburg, is married, and has two young boys. Beckie is excited to be part of the CL&W team, and CL&W is excited to have her. REVIEW AND PRESENTATION OF THE PRELIMINARY 2015 CAPITAL AND EXTRAORDINARY O&M BUDGETS The preliminary 2015 Capital and 2015 Extraordinary O&M were provided to the commissioners in advance of the meeting. Electric Capital and O&M Highlights: The electric capital budget for 2015 is proposed at $1,055,100 which is a $88,000 lower than 2014 s final capital budget (significant decrease is due to the proposed delay in purchasing a new bucket truck). Preliminary electric operation and maintenance expenses are proposed to increase 6.5% to $1,319,000 in comparison to 2014 s final budget. Electric Superintendent, Karsten Huse, provided an overview of the electric utility budget: Aged infrastructure replacements o Shifting focus to replacements of URD cable Factors used in determining replacements Age (50 years and over) Type of cable Timing of other projects o Three project reference categories increased from previous years as noted specifically in the preliminary budget to place greater emphasis on replacement of aged infrastructure (infrastructure beyond its useful life). This is a follow up to recommendations from the infrastructure study completed by Baker Tilly in o Areas of focus for the next several years are the Willowbrooke Subdivision, Maple Manor Subdivision, and Circuits 12 and 16 that serve load out of the Plant Substation. Evaluation of LED street lighting
3 LW o Staff is evaluating the installation of LED fixtures in a test area of the city (12-20 fixtures). The cost of LED technology has decreased in recent years, and there are many manufactures with varying costs. For reference, L&W has approximately 1,300 street light fixtures. o The general manager explained that part of the street lighting evaluation is to work with the city engineer to identify long term costs and advantages/ disadvantages of LED lighting since the City is the customer for street lighting. Delay purchase of new bucket truck o Technology needs to evolve more before purchasing a new hybrid bucket truck. Karsten explained that the hybrid trucks seem to be successful in climates that do not have extreme heat or cold. Given the extremes in Wisconsin's weather, it does not appear that the technology has developed enough for our climate. Management will evaluate future needs of the electric department in 2015 including the type of work that the electric utility will be doing over the next years, possibly getting more involved in underground rebuilds. This will help determine future equipment and staffing needs, and whether the utility may purchase new or used equipment. Water Capital and O&M Highlights: The water capital budget is proposed at $705,000 which is $120,000 higher than 2014 s final budget (not including a $452,000 reimbursement that had been included in the 2014 forecast for a portion of costs due from the PRP s relating to the 2011 installation of the aeration system at Well #4). Preliminary water operation and maintenance expenses are proposed to decrease 26% to $1,006,000 in comparison to 2014 s final budget. Water Superintendent, Tim Martin, provided an overview of the water utility budget: Increase in water relay project budget o The water utility plans to follow the City s street replacement plan in This work will mainly be along Sheboygan Road from Washington Ave. to Dorchester Ave. The water utility will replace water main, services stop boxes, and hydrants. o Typically the water utility replaces approximately 1500 feet of main per year, as well as any lead services that fall within the work. In 2015, due to the City's street plans, the water utility plans to increase the footage of water main to be replaced to approximately 2900 feet. Expected reimbursement from the PRPs for Well 4 remediation o In the past, the utility s budget and the cash flow models have included expected reimbursements from the PRPs. Staff had included roughly 50%, or $452,000 of the expected reimbursement in each year s budget over the past several years. No reimbursement has actually been received to date. As a result of a recommendation from the PSC that the water utility include costs for the aeration
4 LW system in water rates beginning in 2015 and wait to record any actual reimbursement from the PRPs until a settlement is reached, the utility has also omitted any anticipated reimbursement from the 2015 budget. SCADA Upgrade o Wonderware software is due for an upgrade. The Winn 911 alarm dialer software, Historian software, and the reporting software will be included in this upgrade. o Includes computer replacement. o For compatibility with the Wonderware SCADA system, the utility plans to upgrade one well site per year starting in 2015 over the next four years from the original Control Microsystems PLC system to an Allen Bradley PLC. Groundwater adequacy study o Short Elliot Hendrickson has been contracted to complete this study, and this will help the utility decide on which path to take while planning for Cedarburg s future drinking water source. The final report will be delivered in early 2015 with a possible commission workshop to follow. Office Highlights: Financial Manager Lynda Lalley provided an overview of the office department budget: PlantWorx/MapWorx implementations o Convert electric utility early in Quite a bit of testing was done in Staff is waiting to go live in new system until after 2014 work orders are completed. o Clean up data, test, and convert water utility later in Office space reconfiguration o Staff plans to reconfigure current space to accommodate one additional staff member. This is being coordinated with replacement of the carpeting and addition of electrical outlets. o Staff will also coordinate installation of some basic security features such as a panic button that will alert the police department if help is needed in the utility office. Assistant Manager, Jill Frank, provided an overview of additional concepts and ideas for Some of these concepts are a result of discussions from the Customer and Community Advisory Group of Jill Frank, Andy Moss, Tim Larson, Lynda Lalley, and Dale Lythjohan. The ideas listed below are not included in the budget at this time. Residential Customer Satisfaction Survey Oversampling: WPPI Consultant, DRG, will be doing the survey in They will use samples from different demographic groups and provide results. They will be conducting the survey across WPPI members so the results will not be unique to Cedarburg. There is no cost to CL&W for the
5 LW survey unless the utility opts to have an oversampling completed to increase the number of surveys conducted and provide results unique to Cedarburg After commission discussion, the majority felt that it would be beneficial to have DRG conduct the additional surveys with Cedarburg customers. The commission liked the idea of including questions customized for Cedarburg. After gathering some additional information, staff will include the cost of an oversampling in a revised preliminary 2015 budget document for presentation at the December commission meeting. Customer Appreciation Event o A budget for a customer appreciation event could be approximately $20,000; partially funded by CTC conservation program. One idea from the Advisory Group was to invite customers to the utility during Public Power Week. Such an event could involve participation of customers in a fun activity that would ultimately bring them to the utility to receive a small gift valued at approx $20. The event could replace the Energy Fair. Possible themes could revolve around community, CL&W, and conservation. o With the inclusion of $1,200 already in the preliminary budget for 2015 for recycling and paper shredding events to be held at the utility, and with additional efforts that will be required to improve the utility s identity with new customers (as described later in these minutes), the commission agreed with staff that it would not be practical to also offer a significant Customer Appreciation Event at the utility office in o An alternate idea of a Power Hunt, as was done by the Jefferson Utility in 2014 was discussed. The cost of such an activity would be approximately $2,000; partially or fully funded by the CTC program. Customers would locate a hidden object somewhere in the city over a one week period, and the winner would receive a prize. The commission agreed with the general idea of such an activity. Lighted Tree on Reservoir o Depending on size and construction, a roughly estimated cost to design, construct, and setup a lighted tree could be approximately $3,500-$5,000, and then $1,500 per future year for possible crane rental. If the utility were to proceed with this project, the tree would not be displayed until winter of The commission supported this idea. Improve Identity with Customers New to Cedarburg o The budget for a welcome packet and gift would be approximately $3,500 - $10,000; to be partially funded by the CTC program. The current welcome
6 LW packet that is mailed could be enhanced to include a CL&W paper pad and pen, for example, and/or an offer could be extended to new customers to stop into the utility office for a free welcome gift. The commission was in favor of both ideas, stating the importance of making a connection with new customers so they know we are here in the community and that we re not a division of a larger utility. Develop a Mobile Website o Staff will keep this in mind as WPPI looks to enhance its website templates in The commission wasn t certain whether a true mobile website would be necessary due to the nature of our business. Develop other forms of Electronic Communications with Customers o Development could include Facebook, Twitter, and/or You Tube videos, for example. Staff will keep these ideas in mind and return to the commission for further discussion if it appears staff could take on these projects in Building and Grounds Improvements o A facility needs assessment is being performed by Groth Design. $9,500 is included in the 2015 capital budget for the assessment. Groth Design will assist with identifying practical or necessary improvements to the building, along with improvements that could be made to the building to enhance the customer experience. o The 2015 budget includes $50,000 for replacement of hard surface flooring in the halls, back shop offices, crew s lunchroom, crew s restroom, and replacement of office carpeting. Groth Design will assist utility staff with flooring product and installation method decisions. o Additional improvements that are not included in the 2015 budget are possible improvements to the drive-up pay area, parking area, landscaping around the building, concrete wall improvements, and changes to the open lobby concept. These ideas will be taken into consideration in the facility needs assessment being performed by Groth Design. Commission input will be incorporated into the preliminary budget and any necessary revisions will be presented at the December commission meeting for approval. MANAGER AND DEPARTMENT REPORTS The following are highlights of the Manager & Department Reports that were provided in writing to the commissioners in advance of the meeting. Any specific discussions on these topics that took place during the commission meeting are noted. Cedarburg's expected increase for wholesale power costs is 1.6% on a 2014 to 2015 budget basis. This will be passed on to customers through the month PCAC calculation as
7 LW it always has. In 2016 the increase may be as high as 5%; largely as a result of the EPA required environmental improvements at the Boswell Generating Station. The Executive Committee is working with WPPI staff on any and all available strategies to try and reduce the 2016 expected increase. The PSC has completed its review and rate design for the utility s 2015 water rates, and a telephonic public hearing is scheduled for December 17 at 10 a.m. The water reservoir painting project is complete. The reservoir was filled on November 10. The tank is anticipated to go back online on November 17. Total water pumpage for the month of October: o 2012 = 33,924,790 o 2013 = 33,324,260 o 2014 = 32,706,590 The December commission meeting will be held on Monday, December 22. APPROVAL OF BILLS The bills, as listed on the attached Check Register, were audited and a motion was made by Joe Dorr, seconded by Andy Moss, to approve the bills for payment. Motion carried. ADJOURN TO CLOSED SESSION Pursuant to State Statutes (1) (c) to consider employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility, specifically for the annual performance appraisal of the General Manager, Staff compensation, and compensation of the Interim Assistant Manager and Financial Manager. The meeting will reconvene to open session. On a motion by Joe Dorr, seconded by Jim Coutts, the meeting adjourned to closed session at 8:58 p.m. Motion carried. RECONVENE TO OPEN SESSION On a motion by Art Filter, seconded by Joe Dorr, the meeting reconvened to open session at 9:44 p.m. Motion carried.
8 LW CONSIDERATION OF MATTERS DISCUSSED IN CLOSED SESSION; AND ACTION THEREON A motion was made by Joe Dorr, seconded by David Pagel, to approve a one-time 1.50% of base wage performance bonus for the General Manager for Motion carried. A motion was made by Joe Dorr, seconded by David Pagel, to approve a performance bonus as reflected in the documents discussed in closed session, for Assistant Manager, Jill Frank, and Financial Manager, Lynda Lalley. Motion carried. Commissioner Joe Dorr also added that the commission will be discussing goals in 2015 for the general manager and the assistant manager. ADJOURNMENT On a motion by Joe Dorr, seconded by David Pagel, the meeting adjourned at 9:46 p.m. Motion carried. James Coutts, Secretary
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