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4.6. SR 05-19-1997'~ity of iver TO: FROM: DATE: SUBJECT: Item 4.6. MEMORANDUM Mayor & City Council Pat Klaers, City A~trator May 19, 1997 Utilities Commission Update Councilmember John Dietz is our city representative on the Elk River Municipal Utilities Commission. At this May 19, 1997, Council meeting, John is scheduled to provide the Council with an update on April and May Utilities activities. Attached for your review is the agenda and draft minutes from the May 13, 1997, Utilities Commission meeting. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 ITEM NUMBER 1. 2. 3. 4. ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION AGENDA Elk River Utilities Offices ACTION TAKEN Call meeting to order at 3:30 P.M. May 13, 1997. Consider Utilities Agenda *Approval of previous meeting minutes * Check Register OLD BUSINESS 5.1 Review and consider Safety Shoe Policy 5.2 Review and consider American Disabilities Act Study by RSP 5.3 Review and consider Elk River Economic Development Strategic Plan 5.4 Review and consider tariff sheets for electric and water rates 5.5 MAPP Joint Membership through MMUA NEW BUSINESS 6.1 1997 Chamber Of Commerce Expo & ERMU 50~h Anniversary 6.2 Review Electrical Generation Potential and letter of intent 6.3 Review 169 Highway Lighting Proposal by City of Elk River 6.4 Review and consider policy change for charges for returned checks 6.5 Review and consider award of contract for 69 KV Breaker Panel, 12.5 KV Reclosers and Highland Road Water Main Page 2 Elk River Municipal Utilities Regular Meeting of the Utilities Commission Agenda 6.6 Preliminary report from Hay Management Consultants (under separate cover.) *Financials Travel Reports Other Business *Consent Agenda items are considered to be routine and will be approved by one motion. 1-612-441-2020 ELK RIVER UTILITIES ?69 P02 MAY 16 '97 09:~9 REGULAR MEETING OF THE ELK RIVER MUNICIPAL UTILITIES COMMISSION HELD AT THE ELK RIVER MUNCIPAL UTILITIES OFFICES MAY 13, 1997 Members Present: President, Johll Dietz; Vice Chairman, George Zabee Others Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; Robert McCartncy, Water Superintendent; Patricia Hcrnza, Office Manager 1, CaHMeeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Utilities Commission was called to order at 3:30 by President .lohn Dietz. 2. Consi.d. er Utilities Agenda Mr. Zabee moved to approve the $-13-97 Agenda, with the addition of two informational items from Bryan Adams and one additional item from George Zabee. Seconded by Mr. Dietz. Motion carried 2-0. 3. *Consider Consent Agenda Mr. Zabee moved to approve the Consent Agenda as follows: 3. 4-8-97 Minutes - approved 4. Check Register - approved 5. Financials- approved Review and consider Safety Shoe Policy Recommendations by Staff were reviewed regarding safety shoes for outside workers, Mr. Zabee moved to continue the existing policy contained in Section 27 ~ of the employee handbook, using the language, safety shoes, meeting the requirements of ANSI Z41. Seconded by Mr. Dictz. Motion carried 2-0. Review and consider American Disabilities Act Study by RSP The evaluation was discussed and reviewed. Mr. Zabee moved to receive and file the report. Seconded by Mr. Dietz. Motion carried 2-0 5.1 5.2 1-61~-441-2020 ELK RIVER UTILITIES ?69 P05 MAY 16 '9? 09:59 Regular meeting of the Elk River Utilities Commission May 13, 1997 Page 2 5.3 Review and consider Elk River Economic Development Strategic Plan The Economic Development Strategic Plan was presented and discussed. Mr. Zabee moved to receive and file the Draft Plan. Mr. Dietz seconded the motion. Motion carried 2-0. 5.4 ,Review and consider tariff sheets for, electric and water rates Proposed tariff sheets were presented that reflect the terms and conditions of the rates that were adopted at the February 12, 1997 meeting. Power factors in connection with the Demand Rate were discussed. Bryan Adams responded to several questions by the Commission. Bryan Adams recommended to the Commission two customers who qualify for the Economic Development Rate. Mr. Zabee moved to grant the Economic Development Rate for Barton Gravel and the Sherbume County Courthouse, as large businesses in the newly acquired territory, per the tariff sheet. Mr. Dietz seconded the motion. Motion carried 2-0. Bryan Adams asked the Commission to consider an Off-Peak rate and stated the reasons it is needed. Mr. Adams also requested the Commission's approval to contact R.W.Beck for assistance in the planning of the rate. Mr. Zabee moved to have R.W.Beck assist Bryan Adams with the design of an Off-Peak Rate, at a cost not to exceed $500.00. Mr. Dietz seconded the mo.tion. Motion carried 2-0. The Street Light policies and tariff sheet were scrutinized in regard to the different rates charged, regarding community. The policy of adding 15 lights per year was discussed. Mr. Zabee moved to no longer add 15 street lights automatically every year, but rather to add street lights on a request and need basis. Mr. Dietz seconded the motion. Motion carried 2-0. Mr. Zabee moved to approve the tariff sheets, excepting the street light tariff sheet. Mr. Dietz seconded the motion. Motion carried 2-0. 1-612-441-2020 ELK RIUER UTILITIES ?69 P04 MAY 16 '9? 09:40 Regulhr meeting of the Elk River Utilities Commission May 13, 1997 Page 3 5.5 MAPp Joint Membership throush MMUA Participation in the MAPP joint membership was considered and discussed. Mr. Zabee moved to join the MAPP: Joint Membership. Mr. Dietz seconded the motion. Motion carried 2-0. 6.1 1997 Chamber of Commerce Expo & ERMU 80~h Anniversary The possibility of combining recognition of the 50~' Anniversary of the Utilities with the Chamber's Business Expo in October, 1997 or with the Heritage Fest was considered. It was unanimously decided to continue participating in the Expo, and to continue to explore ideas for the $0'h Anniversary. 6.2 Review Electrical Generation potential and letter of intent The opportunities created by Energy City which entail electric generation with landfill gas and/or wind were discussed, along with the supporting documents. No action taken. 6.3 Review 169 Highway Lightim~ Prooosa,l by Ci.ty of Elk River Bryan Adams presented a memo from Pat Klaers, City Manager, advising of the City's commitment for maintenance for 40 new lights along Highway 169 between Main Street and 193,a Avenue. No action taken. 1-612-441-2020 ELK RIUER UTILITIES ?69 P05 MAY 16 '9? 09:40 Regular meeting of the Elk River Utilities Commission May 13, 1997 Page 4 (5.4 Review and gonsider policy chan~e for charges for returned checks 6.5 6.6 Commission reviewed the present policy, which based charges on the amount of thc returned check to a cap of $20.00. Mr. Dietz moved to charge a fiat fee of $20.00 for each returned check, without regard to the amount of the check. Mr. Zabee seconded the motion. Motion carried 2-0. Review and ~onsider award of contract for 69 KV Breaker Panel, 12.5 KV Reel,0sers and Highland Road W~t_er Main Bid tabulations for the three projects were submitted to the Commission. Mr. Zabee moved to accept the bid for the 69 KV Relay Panel from Keystone Electric. Mr. Dietz seconded the motion. Motion carried 2-0. Mr. Zabee moved to accept the bid for the 12.5 KV Reclosers from Border States Electric. Mr. Dietz seconded the motion. Motion carried 2-0. Mr~ Zabee moved to accept the bid for the Highland Road Watermain from Richard Knutson, Inc. Mr. Dietz seconded the motion. Motion carried 2-0. Preliminary report from Hay Management Consultants The preliminary report from Hay Management Consultants was presented to the Commission. After reviewing the report, with questions and comments it was decided to have a special work meeting on May 27, 1997. Mr. Adams will have options for compliance at that time, and all employees will have had a chance to have their position reconsidered if desired. Tabled from the March 11, 1997 meeting, the increase of $.50 for the Line Foreman to bring the differential between Line Foreman and Lead Linemen to $1.00 was discussed. Mr. Zabee moved to increase the wage of the Line Foreman $.50 to bring the differential of Line Foreman to Lead Linemen to $1.00, retroactive to January 1, 1997. Mr. Dictz seconded the motion. Motion passed 2-0. 1-612-441-2020 ELK RIUER UTILITIES ?69 P06 MAY 16 '9? 09:40 Regular meeting of the Elk River Utilities ties Commission May 13, 1997 Page 5 Other Business Bryan Adams reported on the Downtown Development Meeting he attended. The question of water fountain maintenance arose again. The Utilities were asked about the possibility of doing the maintenance. It is the concensus of the Commission and Staffthat it would not be something the Utilities could commit to. Bryan Adams advised the Commission he would be attending the School Board Meeting May 13, 1997 regarding the purchase of the property, by Meado~vale School for the proposed Well #6. Mr. Zabee reported that a customer had voiced a concern about a street light that shines into his home. Staffand Commission discussed various solutions to the customer's problem. No action taken. The next scheduled meeting of the Elk River Utilities Commission will be Wednesday, June 4, 1997 at 3:30 P.M. Mr. Dietz moved to adjourn. Mr. Zabee seconded the motion. The meeting of the Elk River Municipal Utilities Commission adjourned at 5:35 P.M. Respectfully submitted, Patricia Hemza Office Manager