9.2. SR 01-21-1997"ity of
iver
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Pat Klaers, City Administrator
January 21, 1997 ?~
Utilities Commission Update
Councilmember John Dietz is our city representative on the Elk River
Municipal Utilities Commission. At this January 21, 1997, Council meeting,
John is scheduled to provide the Council with an update on the December
and January Utilities activities. Attached for your review is the agenda from
the January 14, 1997, Utilities Commission meeting. If the draft minutes
from this meeting are available before the packet is distributed they will also
be attached for your review.
13065 Orono Parkway · P.O. Box 490 ° Elk River, MN 55330 · (612) 441-7420 ° Fax: (612) 441-7425
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
AGENDA
JANUARY 14, 1997
ELK RIVER UTILITIES OFFICES
ITEM NUMBER
1. Call meeting to order at 4:00 P.M.
2. Consider Utilities Agenda
2.a
2.b
2.c
ACTION TAKEN
Election of officers for 1997
Designate First National Bank official
depository for 1997
Designate Elk River Star News official
newspaper for 1997
3. *Approval of previous meeting minutes
4. *Check Register
OLD BUSINESS
5.1 Adopt 1997 Budget
5.2 Electric Rates Up-date
5.3 Water Rate Up-date
5.4 AEC/ERMU Power and Energy Contract Amendment.
5.5 Water Facilities, Highland Rd. up-date
NEW BUSINESS
6.1 Annual Report to City Council
6.2 Economic Development Initiatives
6.3 Adopt City/Utility AWAIR Program
*Financials
Other Business
Travel Reports--Informational only, no action needed
*Consent Agenda items are considered to be routine and will be
approved by one motion.
1-612-441-2020 ELK RIUER UTILITIES 200 P02 JAN 16 '9? 17:17
REGULAR MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICES
JANUARY 14, 1997
Members Present: President, James Tralle; Vice Chairman, John
Dietz; Trustee, George Zabee
Others Present: Bryan Adams, General Manager; Glenn Sundeen,
Line Superintendent; Robert McCartney, Water Superintendent;
Patricia Hemza, office Manager
1. Call Meetinq to Order
Pursuant to due call and notice thereof, the meeting of the
Elk River Utilities Commission was called to order at
4:00 P.M. by President Tralle.
2. Consider Utillties Aqendn
Mr. Tralle moved to approve the 01-14-97 Agenda, with the
exception of moving 6.1 to before 5.1. Mr. Zabee seconded
the motion. Motion carried 3-0.
2.a E~ection of officers for 1997
Motion by Mr. Tralle, seconded by Mr. Zabee to
nominate the following slate of officers for 1997:
John Dietz
George Zabee
James Tralle
President
Vice Chairman
Trustee
Motion carried 3-0.
Mr. Dietz, as 1997 President of the Utilities Commission
took over the Chair of the 1-14-97 meeting.
2.b Desi~nate._First National Bank official
for 1997
Mr. Tralle moved to designate First National Bank of
Elk River as the official depository of the Elk River
Municipal Utilities for 1997.
Motion carried 3-0.
1-612-441-2020 ELK RIUER UTILITIES 200 P03 3AN 16 '9? 17:17
Regular meeting of the Elk River Utilities Commission
January 14, 1997
Page 2
2.c D_e_~i~nate ~lk River Star News official newsDape~
for 1997 " ' ' -
Mr. Zabee moved to designate the Elk River Star News
as the official newspaper for the Elk River Municipal
Utilities for 1997. Mr. Tralle seconded the motion
Motion carried 3-0. '
3.Consi4er Consent Aqend~
Mr. Tralle moved to approve the Consent Agenda as follows:
12-10-96 Minutes
Check Register
Financials
6.1 _.A~nual ReRgrt to ~.ity Co~nci~
Mr. Adams up-dated the Utilities Commission on his annual
report to the City Council on January 6, 1997. He stressed
what challenges the Utilities are experiencing with electric
deregulation, and the tremendous growth in Elk River,
including reviewing the graphs on Electric and Water
consumption. He provided information explaining the past
accomplishments and goals for the Utilities to continue to
provide reliable, quality, and cost effective electric and
water utility services.
5.1 Adopt 1997 Budqe~
The 1997 Proposed Budget was reviewed, with the changes
noted. A discussion of rates followed, with detailed
informa=ion on the cost of serving new housing
developments.
Mr. Tralle moved to institute a flat $500.00 connection
fee, to include 200' of service; if service exceeds 200'
an additional charge of $3.00 per foot will be added.
Mr. Zabee seconded the motion. Motion carried 2-1 with
Mr. Dietz voting nae. '
Mr. Zabee moved to adopt the 1997 Budget as presented.
Mr. Tralle seconded the motion. Motion carried 3-0.
5.2 Electrlg. Rate U~-dat~
Mr. Adams brought the Commission up to date on the progress
of the rate study, with recommendations for new rates.
The options and class divisions were reviewed.
1-612-441-2020 ELK RIVER UTILITIES 200 P04 JAN 16 '97 17:18
Regular meeting of the Blk River Utilities Commission
January 14, 1997
Page 3
Mr. Tralle moved to offer free energy audits to ten
customers who would be most affected by the rate change
in the demand class, option 10. Mr. Zabee seconded the
motion. Motion carried 3-0.
After further discussion it was the concensus that both
electric and water rates be changed at the same time.
5.3 Water Rate Up-date
Mr. Adams advised that the water rate study is not ready to
be presented in detail at this meeting. To be presented at
the February meeting with recommendations.
Mr. Tralle left the meeting at this time, 5:10 P.M.
5.4 AEC/ERMU Power and Energy
Informational only.
5.5 Wa~er Facilities, Highland Rd. up-dat,
Mr. Adams presented the preliminary plan from MSA for the
Watermain Extension on Highland Road, with his
recommendation for authorization.
Mr. Zabee moved to authorize the Highland Road Watermain
extension, and to contact the School District, and City
Council to determine their participation. Mr. Dietz
seconded the motion. Motion carried 2-0.
6.2 E~ono~i~ Dm¥~lo~ment Initiatives
Mr. Adams presented a letter from Paul Steinman, Economic
Development Director for the City of Elk River, regarding
future involvement and joint participation with the
Economic Development Authority.
After discussion, it was the concensus of the Utilities
Commission to take into consideration requests for
assistance on an individual basis.
1-612-441-2020 ELK RIUER UTILITIES 200 P05 3AN 16 '9? 17:18
Regular meeting of the Elk River Utilities Commission
January 14, 1997
Page 4
6.3 A4oDt City/UtiliC¥ AWAIR Proqr~
The AWAIR Program was adopted on a preliminary basis in
September, 1996. An AWAIR program has now been approved
by the City Wide Safety Committee and adopted by City
Council. It is recommended that the Utilities adopt this
program.
Mr. Zabee moved to adopt the AWAIR program. Mr. Dietz
seconded the motion. Motion carried 2-0.
The next scheduled meeting of the ~lk River Utilities Commission
will be
Mr. Dietz moved to adjourn. Mr. Zabee seconded the motion.
Motion carried 2-0.
The meeting of the Elk River Utilities Commission adjourned at
5:40
Respectfully submitted,
Patricia Hemza
Office Manager