REGULAR MEETING
RIVER FALLS UTILITY ADVISORY BOARD
March 17, 20.14 6:30 p.m.
Council Chambers, City Hall
The Regular Meeting of the River Falls Utility Advisory Board was called to order by President
Hanson at 6:30 p.m. Present: Randy Czaplewski, Diane Odeen, Wayne Beebe, Grant Hanson,
Tim Thum, and Mike Woolsey. Absent: Duane Pederson. Staff present: Kevin Westhuis, Utility
Director; Julie Bergstrom, Assistant City Administrator/Finance Director; Charles Beranek,
Utility Operations Superintendent; Mike Noreen, Conservation and Efficiency Coordinator; Wes
Arndt, WPPI Energy Services Representative; and Brian Hatch, Hydroelectric Facility Operator.
Also present: Gary Horvath; Susan Goode; Mike Miller; Greg Brown; Keith .Rodli; Kent
Johnson; Ron Jirsa; Michael Alwin; Peter Rayne; Garret Wenzel; Eddie Rivard; John Welter;
Matt Fitzgerald; Andrew Roth; Don Richards; Mike Wharton; Ed Ludwig-Krause; and Patricia
Hatch.
MIS Odeen/Beebe to approve minutes of the February 17, 2014 Regular Meeting. Motion
Carried.
SPECIAL REPORT:
1. Introduction of Hydroelectric Facility & Relicensing. Utility Operations
Superintendent presented an introduction of the hydroelectric facility and reviewed the
timeline for the federal licensing requirements. In addition to the equipment necessary to
generate the hydroelectric power, the facility also consists of the Junction Falls Dam Upper Hydro and Powell Falls Dam - Lower Hydro. The Junction Falls Dam creates the
Lake George reservoir and the Powell Falls Dam creates the Lake Louise reservoir. The
facility operates on an annual basis with savings to the Utility Customers of about
$80,000 in avoided purchasing costs.
Staff submitted a Notice of Intent, Pre-Application Document (PAD), and a request to
use Traditional Licensing Process on November 27, 2013. In January, the Federal Energy
Regulatory Commission (FERC) approved the use of the traditional licensing process.
The FERC-required public meeting and site visit are to be held on March 24, 2014, and
comments by stakeholders on the PAD and the necessary studies for the license
application are due to FERC and the City by May 23, 2014. Early in summer 2014 we
will finalize the study plans and conduct those studies over the next year. The Draft
License Application should be completed and set to stakeholders for review in January
2016, with comments on that due in April 2016. The Final License Application is due to
FERC by August 31, 2016. Once the final license application is submitted, FERC will
engage in an environmental review, seeking input from all stakeholders. The review will
determine the terms and conditions FERC will put on the new license. The new license
would be issued for September 1, 2018.
Utility Director Westhuis thanked the team that has been working on this project and
putting together all of the materials. Westhuis continued that staff is continuing with
relicensing in response to federal regulations to relicense. This is not a statement for or
against the dams' existence, but an exercise in due diligence.
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March 17, 2014
Page 2
President Hanson asked how much of the total power consumed by the City is generated
by the hydros. Beranek responded that it pushes 2%. Board Member Odeen asked about
staff overlap between now and the first relicensing. Beranek stated that there is no staff
here from the power plant crew that went through the original relicensing.
PUBLIC COMMENTS:
a. Keith Rodli, Friends of the Kinni: Rodli asked who makes the decision about which
studies will be conducted. Beranek responded that it will be a collaborative among the
stakeholders. Brian Hatch, Hydroelectric Facility Operator, added that they would be
agreed upon by the parties involved. Rodli asked what will happen in a disagreement.
Westhuis clarified that we would likely ask FERC for guidance in that event.
b. Susan Goode, Friends of the Kinni: Goode commented that the City should consider
the "fully allocated costs" of operating the dam, now and in the future. That should
include depreciation costs and funds that need to be set aside for future maintenance.
Beranek responded that the City is interested in that information as well.
c. Gary Horvath, City of River Falls: Horvath asked whether we will have information
regarding the $2 million bluff stabilization project at the next meeting. Beranek
responded that the project was removed from the budget because the diesel generators
causing the vibrations in the bluff have been removed.
d. Rob Chambers, Town of Clifton: Chambers asked why the City has chosen to apply
for the 30 year license and who made the decision. Westhuis indicated that staff
pursued the traditional approach of the 30 year license and input was not sought from
the City Council or Utility Advisory Board. Chambers also asked about the choice to
pursue the traditional licensing process and that we stated in the Pre-Application
Document that we anticipated a low level of controversy. Westhuis confirmed, and
reiterated that staff is here to provide facts, information, and transparency to the
process. Board Member Woolsey asked and Westhuis confirmed that relicensing
gives us the option to run the hydros, but does not commit us to operating them.
e. Gary Horvath, City of River Falls: Horvath added that relicensing provides an
opportunity to have a dialogue for those with a differing viewpoint, and that they
appreciate the perspective of staff.
CONSENT AGENDA:
2. Acknowledgement of the following minutes:
a. West Central Wisconsin Biosolids Facility Commission- 01/21/2014
b. POWERful Choices! - 02/13/2014
MIS Woolsey/Thum to approve Consent Agenda. Motion Carried.
3. Water and Sewer Pipe Freezing Update. Utility Director Westhuis presented a map of
the City showing the location of 94 water pipe freezes, broken down by weeks. Utility
Operations Superintendent Beranek clarified that there was an additional freeze that
morning on North Dallas. Most freezes are in the older areas of town and on cul-de-sacs.
A typical winter would see only one to three freezes. Frost levels this year are past seven
feet. For context, there are over 4,000 water customers and 95 freezes.
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March 17, 2014
Page 3
W esthuis reminded listeners that the customer service staff is responsive to their needs.
While there has not been a requirement for running water, you can still do so and the
Utility will make adjustments to the bill to reflect the last year's bill.
President Hanson asked whether most of the freeze ups were in copper pipes. Beranek
illustrated how copper pipes tap the water main and bend up so that they are more
vulnerable to freezes. W esthuis added that because water mains are to one side or the
other, houses on the opposite side of the street from the main are more likely to
experience a freeze because the lateral is not insulated by the snow cover where there is
less frost.
Beranek continued that the freezes most often occur in the Utility-owned portion of the
water lateral, between the main and the curbstop. Board member Czaplewski asked
whether. any residences have been responsible and had to pay anything for thawing.
Beranek stated that they have charged for re-thaws (not following instructions) and for
non-copper piping.
Beranek added that there have also been two sewer mains (Utility responsibility), and
five sewer laterals (Customer responsibility) freeze this season. Westhuis clarified that
those were end-of-the-line sewer pipes with roots growing in the pipes. Discussion
continued about the broken sewer main at Was son Lane due to frost, and the broken
valve that occurred during repair.
Woolsey asked about how well the Utility is absorbing the increased costs due to the
overtime from working on freezes. Finance Director Bergstrom said money will have to
be shifted to meet those needs and will show up in the February Statements.
REPORTS:
4. Finance Report. Finance Director Bergstrom noted that there has been an audit
adjustment reflected in the Water Fund (to the positive), which will serve as the buffer for
overtime costs discussed previously. Water is looking good, and Sewer and Electric are
looking excellent.
5. Monthly Report. Utility Director Westhuis handed out information regarding a Shared
Savings Loan application from the River Falls Industrial Center (RFIC). Conservation
and Efficiency Coordinator Noreen followed up with a brief presentation to the Board
regarding the WPPI Shared Savings Loan Program. It is a 2% loan for 60 months, repaid
on the customer's utility bills, for energy improvements, not renewable energy. RFIC has
an existing loan and is seeking a new loan for new equipment. The loan amount is based
on the savings the improvement is estimated to produce. Because this is the second loan
and WPPI will only support up to $50,000 total, RFMU will support the risk over that
amount. RFIC will be replacing the HVAC system and transformers.
Board Member Odeen commented that this is a good project to support because the RFIC
is an incubator-type business. Discussion continued regarding the energy savings, the
nature of the building, and businesses served by the RFIC. It was decided to bring the
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March 17, 2014
Page 4
issue back to the Board with more information at the next meeting. Board Member
Czaplewski asked for more information about the Shared Savings Program. Noreen
responded that the Utility has had these agreements with NCCM and the RFIC
previously, and the Utility would be interested in additional applicants.
Board Member Beebe asked about the renovations to the Municipal Power Plant.
Bergstrom responded that the space would be leased by the University for their business
programs, and that they are finalizing an agreement. Odeen clarified that it is for the
business incubator that the University collaborating with the City to create. Beranek said
that individuals could see the renovation if they come to the Site Visit next week at the
Power Plant. Westhuis clarified that this use of the Power Plant is not the long term plan
for the space. Beranek added that the City is planning to remove its presence in Power
Plant in 2016. Czaplewski clarified that the Site Visit is open to the public and families.
President Hanson asked for more information on the human outages in 2013. Beranek
said that the Utility had a good year in total outages. The outages caused by humans are
typically from those digging without being aware of the lines. Beranek also discussed
some of the outages that affected the most customers. Odeen asked about the "other"
outages and Beranek said those outages have no immediate and obvious cause.
ADJOURNMENT:
MIS Beebe/Hanson to adjourn at 7:32 p.m. Unanimous.
Reported by: Raymond French, Management Analyst