BEREA UTILITY ADVISORY BOARD
MEETING MINUTES
February 28, 2012

Present: Diane Zekind, Rodney Short, Gina Chamberlain, Steve Boyce, Josh Bills, Randy Stone, Ed Fortner

Absent: n/a

The agenda and packets of information regarding net metering and street lights from other utilities were available.

The meeting was called to order by Steve Boyce.

Updates and Reports:

  • Ed announced that BMU qualified and will receive the grant for the Terrill Branch sewer upgrade.
  • Ed gave an update on the quarterly KMUA meeting hosted by the Frankfort Plant Board
    • Productive preliminary meeting with Berea, Owensboro and Frankfort in attendance of the EE Subcommittee.
    • Potential grant and stimulus moneys may be available through an Ilinois company.
    • Ed will share the minutes from the meetings
    • Street Light Policies – Berea subdivision & Bluegrass policy
      • Reference subdivision section of the City of Berea ordinances (available online)
      • Inverted Rates Study
        • Randy will advise when he meets with Paul Garcia, former Prime Group employee.
        • Ed posed the inverted rate study to the EE subcommittee at KMUA.
        • Steve will get with Darrell in GIS to share information about co-op or internship student positions
        • Steve will communicate with Ed concerning the internship because it’s a short timeline.
        • Solar Farm: How will class 3 leasers be credited?
          • Ed will review the contract concerning class of service and the group will revisit this subject.

EE Subcommittee Meeting Notes from February 14, 2012

  • Minutes will be sent to BUAB board members
  • Good discussion – no proposals nor decisions at this time
  • Ed said he threw out On Bill Financing to KMUA

Steps for BUAB on water & sewer issues presented at the last meeting

  • Budget
    • On line access
    • Randy said BMU is 3 months behind on depreciation, plus unexpectedly confronted with an approximate $100,000 upgrade at the sewer plant
    • Ed said BMU needs to upgrade the Lewis Street Substation
    • Need to focus on careful spending
    • Southern Madison Water District
      • SMWD wholesale purchase exceeds the usage of BMU billed customers.
      • Michael Eirich identified areas of unaccounted water loss at the Filtration Plant since the last meeting.
      • BMU has a good working relationship with SMWD
      • SMWD’s accountability in relation to expanding Berea’s water supply was discussed.
        • Ed will review the wholesale contract with SMWD and share contract with BUAB as requested.
        • The cost of dam isn’t on taxpayers but on the rate payers.
        • Additional Policy Issues
          • Water Tap fees- BMU doesn’t invest in the infrastructure, developers installs the lines.
            • Ed said the basic installation fees are adequately covered, but posed the question of whether that is sufficient?  Should BMU consider other fees?
            • How were sewer tap fees formulated?
  • Wastewater, Pre-treatment and Grease Trap Policies:
    • A final draft of the sewer use ordinance with the new EPA prescribed language will require 2 more readings to be adopted.  Ed asked Randy for a copy of the amendment.
    • Industrial Pre-treatment Program – Cindy with Hall Environmental is doing a good job of managing the new program for BMU.  BMU is paying $18-$20,000 per year in management fees.

¨       We plan to start charging permit fees of $1000-$2000 to the industries to capture our management fees.  (There are currently 6 industries in the program)

  • Grease Trap Policy – to keep FOG (fat, oil, grease) out of sewer treatment

¨       Ed currently receives the menus from prospective customers and determines which of two options they should install: 1) under the sink separator or 2) in-ground separators.  The copy of the customer’s invoice is required proof of installation.

ESCO’s or service companies.

  • Josh said he is waiting to hear from Johnson Controls and Honeywell
    • He will get with Ed and Randy when he gets a response.
    • A presentation will be set up as part of the EE Subcommittee meeting and any board members that were interested could attend.

Draft revision of the Net Metering Ordinance

  • Josh discussed BMU’s setup of a new class for net metering. Franklin and Barbourville have a net meter rider that mirrors the state policy.  Does it make sense to have its own class?  Discussion about making a ruling that applies to all classes that can participate in net metering.
  • Any facility that has over 10 kW falls under a wholesale refund. The statue sets a minimum credit.
  • Next step – put together a draft revision.
  • BUAB access to documents
    • Most documents and City Ordinances are available on line (Josh will circulate the link to the City ordinances)
    • Ed will provide the KU Contract to the board and electronic copes of the BMU policies.

Next BUAB Meeting: March 27, 2012 at 7:30 a.m. to 8:50 a.m.

  • On Billing Finance
    • One of the Berea Economic Advancement Team (BEAT) work groups is focusing on energy efficiency and its economic development potential.  In particular, they are interested in the possible jobs impact and benefits to residents and businesses of on-bill-financing and in gaining experience with its long-term potential for Berea through a two-year pilot project with MACED called How$martKY.  BMU and BUAB have already had some discussion of that possibility.  BEAT’s EE workgroup has requested an opportunity to learn more about BMU/BUAB thoughts, reservations, concerns in relation to on-bill-financing in general and How$martKY in particular and about what set of circumstances, if any, would make entering into the two year pilot feasible.
    • BUAB agreed to invite members of the working group to the March 27 meeting. A substantial part of the meeting will be set aside for discussion and questions in order for both to understand more fully if it’s reasonable to pursue.

EE Subcommittee Meeting: March 13, 2012