Public Utilities Committee Minutes

Public Utilities Committee Minutes

September 20, 2011

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MINUTES

September 20, 2011

Public Utilities Committee

City of Batavia

PLEASE NOTE: These minutes are not a word-for-word transcription of the statements made at the meeting, nor intended to be a comprehensive review of all discussions. Minutesare intended to make an official record of the actions taken by the Committee/City Council, and to include some description of discussion points as understood by the minute-taker. Any referencesto discussion and/or statements are only to provide greater clarity to the public and they may not reference all, some, or any of an individual speaker’s comments.

Chairman Frydendall called the meeting to order at 7:30 p.m.

1.Roll Call

Members Present: Aldermen Clark, Frydendall, Jungels, O’Brien, Volk, and Wolff (7:32 p.m.)

Members Absent:Alderman Brown

Also Present:Alderman Thelin Atac; John Dillon, Water Superintendent; Gary Holm, Public Works Director; William McGrath (7:33 p.m.), City Administrator; Byron Ritchason, WWTP Superintendent; Bob Rogde, Electric Superintendent; Mayor Schielke (7:47 p.m.),and Connie Rizo, Recording Secretary

2. Approval of Minutes forJuly 19,August 15,August 16,and September 6, 2011

Motion:To recommend approval of the Public Utilities meeting minutes of 7/19/11, 8/15/11, 8/16/11, and 9/6/11.

Maker:Volk

Second:Clark

Voice vote:5 Ayes, 0 Nays, Motion Carried.

3. Resolution 11-91-R: Approval of a Contract for Wastewater SCADA

Improvementsto Tri-R Systems, Inc. (Byron Ritchason 9/16/11)

Byron Ritchason briefly reviewed the points made in his 9/16/11 memo regarding the wastewater Supervisory Controlledand Data Acquisition system (refer to document). As mentioned by Ritchason, the current SCADA system is outdated and soon will be an unsupported system. Gary Holm pointed out the existing electric utility SCADA system and the system that will be installed by Tri-R are two different worlds of monitoring, but do speak in a common language. Ald. Clark inquired if the item being purchased was just software. Ritchason responded there would be hardware and software licenses purchased with this new System.

Ald. Wolff inquired if this system could be accessed from elsewhere within the City network. Bob Rogde mentioned that as of right now for security purposes it is being kept separate. Ritchason mentioned they are researching computer log in capabilities from other locations for future use. Ald. Wolff’s concerns centered around whether a natural disaster occurred on how to access the System if the building containing the controls was destroyed. Rogde commented control of the system could be done from another water treatment location. Ritchason added there is manual control at each individual site as well.

Rogde mentioned that the timing is best now to switch over to the new System because working terms, service, manufacturing support with the current electric utility SCADA system is non-existent.

Holm advised late today there was contact from Tri-R, the installation vendor, and the staff has not been able to look over all the details yet, but the proposed cost for the System is $80,000. Holm also clarified that the Ritchason memo of 9/16/11 incorrectly stated Resolution 10-34-R in the final paragraph and it should be 11-91-R. The Committee members stated they would like to see the contract and accompanying memo on the details with a revised Resolution 11-91-R provided via e-mail and Chairman Frydendall instructed staff to poll the committee on this resolution prior to the next City Council meeting.

4. Resolution 11-92-R: Establishing an Overhead Sewer Cost Sharing Program
(Gary Holm, 9/16/11)

John Dillon raised the fact that at the 7/19/11 Public Utilities meeting the overhead sewer cost sharing program was discussed in detail along with resident, Janet Meeks, coming forward to explain the challenges she had experienced at her residence as a result of not having an overhead sewer system.

Chairman Frydendall inquired if an individual could receive a grant and a loan as well for assistance with overhead sewer costs. Holm replied the program would not provide both. Ald. Clark inquired how much the cost would likely be to a resident. Dillon opined the cost would be in the $3,000 to $5,000 range. Ald. O’Brien inquired if this was to cover sanitary sewer and storm. Chairman Frydendall replied it would only cover sanitary sewer. Ald. Volk suggested capping individual grant amounts at $3,000 and budgeting for $9,000 for the year since so few of these instances seem to have occurred. Ald. Volk added this program should be reviewed in a few years to see if it needed adjusting.

Motion:To recommend to City Council approval of Resolution 11-92-R establishing an overhead sewer cost sharing program as a 50% grant, with a maximum grant of $3,000, budgeting $9,000 for the program for the upcoming year.

Maker:Volk

Second:Wolff

Voice vote:6 Ayes, 0 Nays, Motion Carried.

5. Resolution 11-85-R: Authorizing Extension of an Electric Engineering

Consultant ServicesAgreement in the Amount of $20,000. (Steve Allen, 9/8/11)

Gary Holm stated this was the second time coming to the Committee to request an extension of the consultant services agreement. Holm advised that Bonnie Russell has worked out very well and that the staff have been impressed with the quality of her work. Ald. O’Brien inquired if there would be need for further extension of this agreement or if the City of Batavia should hire Bonnie Russell. Holm stated future options would be discussed during the City’s budget process for 2012.

Motion:To recommend to City Council approval of Resolution 11-85-R authorizing extension of an electric engineering consultant services agreement in the amount not to exceed $20,000.

Maker:Volk

Second:Wolff

Voice vote:6 Ayes, 0 Nays, Motion Carried.

CONSENT AGENDA

6. Executive Session - Discussion of Sale and Delivery of Electric Power
(Gary Holm, 9/16/11)

Motion:To adjourn to Executive Session for the purposes of discussion of sale and delivery of electric power.

Maker:Clark

Second:Jungels

Voice Vote:5 Ayes, 1 Nay, Motion Carried.

The meeting was adjourned to Executive Session at 8:08 p.m. and when Regular Session resumed at 8:37 p.m. all the same Committee members were present.

7. Discussion – Electric Rates (Gary Holm, 9/16/11)

Holm advised that staff wanted to make the Committee aware of the cash flow situation and would return in October with several formal recommendations for consideration regarding electric rates. Holm briefly went over the background information provided in his 9/16/11 memo (refer to document).

Ald. Wolff inquired if in three to five years the utility could look at reducing rates if the market changed and it made sense to reduce rates to be competitive. Holm replied NIMPA as an organization is updating the rate comparison study of surrounding utilities. Holm stated the utility should be competitive and there should be review of total expenses/total revenue to determine whether to increase or decrease rates. Rogde stated that the utility needs to collect from the customers what is needed to run the business and to keep watch on the competition. Ald. Wolff stated the utility would need to continue to have some kind of edge and service may not always suffice and rates may become a factor.

Chairman Frydendall requested the NIMPA charts from last year be reviewed again.

8. Discussion – Dissemination of Electric Bill Information to Customers (Gary

Holm, 9/16/11)

Chairman Frydendall commented that he realized the detailed breakdown of electric costs on the electric bill is not simple. Holm stated he understood the Committee’s direction, but asked that providing a handout with the breakdown of costs should wait until after rate discussions have concluded because that would impact bill components. Ald. Wolff stated there needed to be a graphic description made to the public for better understanding of their electric bills.

9. Other

• Ald. O’Brien inquired if there was anything further that has developed with Rubicon. Holm stated issues are being worked through and the outlook looks positive. McGrath stated there is no contract as of yet.

• Bob Rogde stated the City has been approached by a marketer of fiber and that information would be brought to the Committee next month.

• Bob Rodge advised there was a working committee meeting with electric vehicle taskforce with Kane County and there was discussion relative to charging stations. Ald. Wolff inquired if the electric department was thinking of purchasing an electric vehicle. Rogde advised there was no electric car purchase planned for the immediate future. There was a brief discussion on the placement of charging stations and parking implications. Ald. Volk commented on the work Argonne Lab is doing for standardizing plug ins for the electric car industry. Rogde added the batteries and standardization of the electric cars are still a work in progress. Ald. Volk spoke to the issue of charging electric cars and the draw it would take from the electric infrastructure. Mayor Schielke inquired how charging the electric cars at home would impact the average home’s electric bill. Rogde stated it would be cheaper than gas. Ald. Wolff stated it would be a 20% increase in residential electric bill, but cheaper than gas overall.

10. Adjournment

A motion was made by Ald. Volk and seconded by Ald. Wolff to adjourn the meeting at 9:13 p.m. All were in favor and the motion was carried.

Minutes prepared by

Connie Rizo