Minutes of the regular meeting of the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota held , 2005 at 5:00 P

The organizational meeting of January 3, 2006 at 5:00 P.M. was called to order by the City Attorney, Ron Galstad.

Present: Quirk, Ogden, Gregoire, Vetter

Absent : None

The following nomination was made for the President of the Water, Light, Power and Building Commission: Marilynn Ogden.

It was moved by Commissioner Gregoire second by Commissioner Vetter that the nominations for President now be closed and that a unanimous ballot be cast for Ms Ogden.

Voting Aye: Quirk, Ogden, Gregoire, Vetter

Voting Nay: None

The following nomination was made for the Vice-President of the Water, Light, Power and Building Commission: Doug Gregoire.

It was moved by Commissioner Quirk second by Commissioner Ogden that the nominations for Vice-President now be closed and that a unanimous ballot be cast for Mr. Gregoire.

Voting Aye: Quirk, Ogden, Gregoire, Vetter

Voting Nay: None

It was moved by Commissioner Quirk second by Commissioner Vetter to adjourn the organizational meeting.

Voting Aye: Quirk, Ogden, Gregoire, Vetter

Voting Nay: None

The regular meeting of the Water, Light, Power, and Building Commission was now called to order by the newly elected president.

Present: Ogden, Gregoire, Quirk, Vetter

Absent : None

It was moved by Commissioner Quirk second by Commissioner Gregoire that the minutes of the previous meeting of December 20, 2005 be approved as read.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The following bills and payroll were recommended for approval:

CHECK NO	VENDOR	DESCRIPTION	AMOUNT
27896	Acme Electric	Supplies	728.00
27897	APPA	Training & school	300.00
27898	Batteries Plus	Supplies	36.50
27899	Ben Franklin Crafts	Supplies	12.23
27900	James Beeman	Reimbursement	75.00
27901	Bert’s Truck Equipment	Supplies	8.65
27902	Border States Electric	Supplies	794.63
27903	Dan Boyce	Expenses	306.12
27904	Brady Martz & Assoc	Professional fees	4,300.00
27905	City of EGF	Transfer; rent	91,655.75
27906	Ethanol Products	Wtr treat chemicals	796.41
27907	Floan Sanders	Professional fees	2,201.00
27908	GF Thur-O-Clean	Contracted services	431.32
27909	Galstad Jensen & McCann	Nov legal fees	555.00
27910	GF Fire Equip Co	Supplies	83.07
27911	GF Welding	Supplies; repair	395.21
27912	Scott Gravseth	Reimbursement	580.85
27913	Graymont Western Canada	Wtr treat chemicals	2,767.92
27914	Hansen Ford	Maintenance	149.03
27915	Hawkins Inc	Wtr treat chemicals	214.02
27916	Hugo’s #5	Supplies	18.34
27917	Interstate Power Systems	Maintenance	1,743.70
27918	Johnson Insurance Consultant	Professional fees	1,450.06
27919	M & W Services Inc	Dec 16-31 meter reads	1,582.35
27920	Madison Nat’l Life Ins	Life insurance	248.85
27921	Meagher Construction LLC	Repairs	645.00
27922	Midwest Refrigeration	Repairs	400.00
27923	MN State Retirement System	Miscellaneous	6,898.81
27924	Network Center Inc	Supplies	340.46
27925	NW Serv CO-OP Wells Fargo	Health insurance	14,289.00
27926	Jeff Olson	Expenses	391.64
27927	Pest Detectives	Contracted services	159.76
27928	Pitney Bowes Inc	Maintenance contract	705.00
27929	Postmaster	Permits & fees	160.00
27930	PS Doors	Repairs	53.79
27931	SimplexGrinnell	Contracted services	635.81
27932	Water & Light	Utilities	12,158.82
27933	X-cel Energy	Gas utilities	7,529.67
		Payroll	55,835.62
	TOTAL		$211,637.39

It was moved by Commissioner Gregoire second by Commissioner Quirk that the bills and payroll be allowed as recommended and the Secretary issue checks for the same.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The meeting date for Step 2 of the Grievance process was set for 5:30 p.m. on Wednesday, January 11, 2006 in the City Hall training room. A closed Commission meeting will be held at 5:00 p.m. on that same day in the Water & Light conference room in City Hall.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota that the following rate schedule regarding water service to be known as WR-06 shall become effective with and the new rates applied on the bills rendered in February, 2006 commencing with the north end mailing on or about January 31, 2006 and

BE IT FURTHER RESOLVED that WR-06shall supersede and replace all prior water rates and the following shall compose WR-06

All usage will be billed @ $4.75 Per Thousand Gallons

Minimum Charge Based on Meter Size on Table Below:

5/8" Meter $ 7.00 Per Month

3/4" Meter $ 7.00 Per Month

1" Meter $ 11.25 Per Month

1½" Meter $ 22.50 Per Month

2" Meter $ 36.00 Per Month

3" Meter $ 67.50 Per Month

4" Meter $ 111.25 Per Month

6" Meter $ 225.00 Per Month

8" Meter $ 352.00 Per Month

Any Meter Over 8" - Rate to be Determined by Department

BE IT FURTHER RESOLVED THAT a penalty of ten per cent (10%) of the current bill will be added to gallonage charge if not paid within ten (10) days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the Resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota that the following rate schedule regarding electric service shall become effective with and new rates applied on the bills rendered in February 2006, commencing with the North End mailing on or about January 31, 2006, and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

COMMERCIAL GENERAL ELECTRIC RATE (COMMGEN-2006)

Customer Charge $ 9.75 Per Month

All KWH Energy $ 0.06100 Per Month

Minimum Charge $ 9.75 Per Month

BE IT FURTHER RESOLVED that those customers who have an approved electrical water heater (40 gallon minimum) connected to the load management system shall have available to them a credit of $6.00 per month each month that their water heaters are connected to the system, and

BE IT FURTHER RESOLVED that this energy rate shall include the current city electric franchise fee of $0.0075 per kWh and that the energy rate shall be subject to adjustment to reflect any changes in said city electric franchise fee, and

BE IT FURTHER RESOLVED that the wholesale power adjustment clause applies to this rate. At the Department’s discretion, the above rate may be increased or decreased by 0.1 mill per KWH for each 0.1 mill, or major fraction thereof, by which the City's total average purchased power cost changes, and

BE IT FURTHER RESOLVED that the penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota that the following rate schedule regarding electric service shall become effective with and new rates applied on the bills rendered in February 2006 commencing with the North End mailing on or about January 31, 2006 and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

GENERAL RESIDENTIAL COMBINATION RATE (GENCOMB-2006)

Customer Charge $ 5.75 Per Month

All KWH Energy $ 0.06800 Per Month

Minimum Charge $ 5.75 Per Month

BE IT FURTHER RESOLVED that this rate is available to single-phase residential customers; and those customers who have an approved electrical water heater (40 gallon minimum) connected to the load management system shall have available to them a credit of $6.00 per month each month that their water heaters are connected to the system, and

BE IT FURTHER RESOLVED that a penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota that the following rate schedule regarding electric service shall become effective with and new rates applied on the bills rendered in February, 2006, commencing with the North End mailing on or about January 31, 2006 and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

GENERAL RESIDENTIAL ELECTRIC RATE (GRE-2006)

Customer Charge $ 7.75 Per Month

All KWH Energy $ 0.06800 Per Month

Minimum Charge $ 7.75 Per Month

BE IT FURTHER RESOLVED that the penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota, that the following rate schedule regarding electric service shall become effective with and new rates applied on the bills rendered in February, 2006 for January, 2006 service, commencing with the mailing on or about February 16, 2006, and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

LARGE COMMERCIAL ELECTRIC RATE (LCER-2006)

Customer Charge	$ 475.00	Per Meter Per Month
Facility Charge	$ 925.00	Per Month
KW Demand Charge	$ 7.10	Per 15 min kW	For winter demand
KW Demand Charge	$ 9.20	Per 15 min kW	For summer demand
KWH Energy Charge	$ 0.02925	Per KWH
Power Factor Charge	0.001	Per KVARH
Minimum Demand Charge	See below

Where winter season is the calendar months of January through May and October through December, and summer season is the calendar months of June through September.

BE IT FURTHER RESOLVED that this rate is available to three-phase commercial customers using 100,000 KWH, or more, in any month. Any customer qualifying as a large commercial customer in any month shall remain on this rate for the next 11 months. The customer's monthly billing KW demand will be the customer's 15 minute integrated KW demand, as measured and recorded, which occurs during the City's monthly system peak KW demand period. The customer's KWH energy will be the total KWH energy usage as measured and recorded on a monthly basis. The customer is required to maintain a minimum power factor of 98 per cent lagging during peak load periods. All reactive KVARH in excess of 20 per cent of the KWH energy, as measured and recorded on a monthly basis, will be billed at the rate per KVARH noted above. The Minimum Demand Charge will be 50 per cent of the customer's monthly billing KW demand in the month of the city's seasonal peak KW demand, and

BE IT FURTHER RESOLVED that the above rates will apply on an annual basis and all power sold at retail is for the customer’s use in their East Grand Forks facility and is not eligible for resale, and

BE IT FURTHER RESOLVED that the above rates will be subject to monthly adjustment based on the City's average cost of wholesale power. At the Department’s discretion, the above rate may be increased or decreased by 0.1 mill per KWH for each 0.1 mill, or major fraction thereof, by which the City's total average purchased power cost changes, and

BE IT FURTHER RESOLVED that the penalty of 10 per cent of current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the Resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

MUNICIPAL GENERAL ELECTRIC RATE (MUNIGEN-2006)

Customer Charge $ 9.75 Per Month

All KWH Energy $ 0.06800 Per Month

Minimum Charge $ 9.75 Per Month

BE IT FURTHER RESOLVED that the penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota that the following rate schedule regarding off peak electric service shall become effective with and new rates applied on the bills rendered in February 2006, commencing with the North End mailing on or about January 31, 2006, and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

MUNICIPAL OFF PEAK RATE (MUNICIPALOFFPK-2006)

Customer Charge $ 5.75 Per Month

All KWH Energy $ 0.03500 Per Month

Minimum Charge $ 5.75 Per Month

BE IT FURTHER RESOLVED that the penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota that the following rate schedule regarding off peak electric service shall become effective with and new rates applied on the bills rendered in February, 2006, commencing with the North End mailing on or about January 31, 2006, and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

OFF PEAK RATE (OPR-2006)

Customer Charge $ 5.75 Per Month

All KWH Energy $ 0.03500 Per Month

Minimum Charge $ 5.75 Per Month

BE IT FURTHER RESOLVED that this rate is available to single-phase residential customers, and those customers who have an approved electrical water heater (40 gallon minimum) connected to the load management system shall have available to them a credit of $6.00 per month each month that their water heaters are connected to the system, and

BE IT FURTHER RESOLVED that the penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota, that the following rate schedule regarding electric service shall become effective with and new rates applied on the bills rendered in February 2006, commencing with the North End mailing on or about January 31, 2006, and

BE IT FURTHER RESOLVED that the following rates shall supersede all prior rates in this respective class:

RESIDENTIAL ALL ELECTRIC RATE (RAE-2006)

Customer Charge $ 7.75 Per Month

All KWH Energy $ 0.06500 Per KWH

Minimum Charge $ 7.75 Per Month

BE IT FURTHER RESOLVED that a penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the Resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota that the following rate schedule regarding SEASONAL LOAD CONTROLLED electric service shall become effective with and new rates applied on the bills rendered in February, 2006, commencing with the North End mailing on or about January 31, 2006, and

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

SEASONAL LOAD CONTROLLED RATE (SLCR-2006)

Customer Charge $ 7.75 Per Month

All heating season Energy $ 0.03500 Per KWH

All cooling season Energy $ 0.06800 Per KWH

Minimum Charge $ 7.75 Per Month

Where the heating season is defined as October through May and the cooling season is defined as June through September, and

BE IT FURTHER RESOLVED that this rate is available to those customers who have a separately metered ground or air source heat pump which provides primary winter season heating with automatic fossil fuel back up which is capable of providing primary replacement heating for the full duration of an off peak load control period, and that the heat pump system is connected to and capable of being controlled by the Commission’s load management system in both heating and cooling mode, and

BE IT FURTHER RESOLVED that the Water and Light Department reserves the right to inspect the system to verify that it qualifies for this rate, and

BE IT FURTHER RESOLVED that the heat pump shall qualify for a $6.00 per month air conditioning load control credit for the months of June through September provided that the heat pump system functions as a central air conditioner and is connected to and capable of being controlled by the load management system, and

BE IT FURTHER RESOLVED that the penalty of 10 per cent of the current billing will be added if not paid within 10 days from date of bill rendered.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the resolution passed.

Commissioner Gregoire, supported by Commissioner Quirk, introduced the following resolution and moved its adoption:

BE IT FURTHER RESOLVED that the following rate shall supersede all prior rates in this respective class:

INDUSTRIAL ELECTRIC RATE (IER-2006)

Customer Charge	$ 4,000.00	Per Account Per Month	For an industrial account with multiple meters on combined billing
Facilities Charge	$ 20,000.00	Per Month
KW Demand Charge	7.10 9.20	Per KW Per KW	For baseload winter demand For baseload summer demand
KW Demand Charge	7.65	Per KW	For annual winter demand exceeding baseload
KW Demand Charge	9.95	Per KW	For annual summer demand exceeding baseload
KWH Energy Charge	0.0320	Per KWH	For baseload energy
KWH Energy Charge	0.0385	Per KWH	For annual energy exceeding baseload
KWH Energy Credit	0.02	Per KWH	For annual energy below baseload
KWH City Franchise fee	0.0075	Per KWH	For all energy per City franchise ordinance
Power Factor Charge	0.001	Per KVARH
Minimum Demand Charge	See Below

Where winter season is the calendar months of January through May and October through December, and summer season is the calendar months of June through September.

BE IT FURTHER RESOLVED that this rate is available to three-phase commercial customers using 1,000,000 KWH, or more, in any month. Any customer qualifying as an industrial customer in any month shall remain on this rate for the next 11 months. The customer's monthly billing KW demand will be the customer's 15 minute integrated KW demand, as measured and recorded, which occurs coincident with the City's monthly system peak 15 minute KW demand period. The customer's KWH energy will be the total KWH energy usage as measured and recorded on a monthly basis. The customer is required to maintain a minimum power factor of 98 per cent lagging during peak load periods. All reactive KVARH in excess of 20 per cent of the KWH energy, as measured and recorded on a monthly basis, will be billed at the rate per KVARH noted above. The Minimum Demand Charge will be 50 per cent of the customer's monthly billing KW demand in the month of the customer's seasonal peak KW demand, and

BE IT FURTHER RESOLVED that the penalty of 10 per cent of current billing will be added if not paid within 10 days from date of bill rendered.

Avoided cost limitation

In no case will the credit issued for under purchases of demand or energy exceed the associated avoided wholesale power cost.

BE IT FURTHER RESOLVED that the rate for purchase of replacement demand and energy for industrial generator stand-by power for any duration of generation outage shall be governed by and priced according to separate individual stand-by contract agreements, and

BE IT FURTHER RESOLVED that the 2006 Industrial Rate as applied to American Crystal Sugar Company and set forth in a separate written schedule adopted by the Water, Light, Power and Building Commission shall hereby be adopted as an addendum to this general rate.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

The President declared the Resolution passed.

It was moved by Commissioner Quirk second by Commissioner Gregoire that the meeting be adjourned to January 11, 2006 at 5:00 P.M.

Voting Aye: Ogden, Gregoire, Quirk, Vetter

Voting Nay: None

Bonnie Abel

Sec'y