4.10. SR 11-17-1997.... y of
'Vel'
TO:
FROM:
DATE:
SUBJECT:
Item # 4.10.
MEMORANDUM
Mayor & City Council
Pat Klaers, City Admini~a~ra~tor
November 17, 1997 y
Utilities Commission Update
Councilmember John Dietz is our city representative on the Elk River
Municipal Utilities Commission. At this November 17, 1997, City Council
meeting, John is scheduled to provide the Council with an update on October
and November Utilities activities. Attached for your review is the agenda
from the November 12, 1997, Utilities Commission meeting. The next
regular Commission meeting is scheduled for Tuesday, December 9, 1997, at
4:00 p.m. at the Utilities office.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
AGENDA
NOVEMBER 12, 1997
Elk River Utilities Offices
ITEM NUMBER
1. Call meeting to order at 4:00 P.M. November 12, 1997
2. Consider Utilities Agenda
3. *Approval of previous meeting minutes
4. *Check Register
OLD BUSINESS
5.1 Consider additional personnel, Electronics Technicimafrtome Security
5.2 Review and consider Ballfield Lighting Contribution
NEW BUSINESS
6.1 Up-date Drinking Fountain at Ball Park
6.2 Review and consider Drug and Alcohol Testing Policy
6.3 Consider proposal to study Bonding Limit for Water Department
6.4 Up-date Heat Share Program
6.5 Review Electric Demand Rate
6.6 Review Utility Connection Rate for Electric and Water
6.7 Consider up-dated Itron Meter Reading System
*Financials
Travel Reports
Other Business
ACTION TAKEN
*Consent Agenda items are considered to be routine and will be approved by one motion.
1-612-441-2020 ELK RIVER UTILITIES 496 P02 NOV 14 '97 09:36
ELK RIVER 1VIUNICWAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
NOVEMBER 12, 1997
Members Present: President, John Dietz; Vice Chairman, George Zabee; Trustee, James
Tralle
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Patricia Hemza, Office Manager
Others Present: Pat Klaers, City Administrator; Dave Anderson, President of Elk River
Softball Association
1. C~II meetin_~ to order at 4:0_0 P.M. November ,12~ 1997
2. Consider Utilities Agenda
Bryan Adams suggested discussion of the fmancials be combined with discussion of
Item 6.5. John Dietz will offer an item under business.
3. *Consider Consent Agendas
Mr. Zabee moved to approve the consent Agenda as follows:
10-21-97 Minutes
Check Register
Financials were discussed at this time. Bryan Adams presented concerns regarding the
1998 budget, capital items and results of the rate increase that took place January 1, 1997.
The cost of growth was emphasized. John Dietz asked about the possibility of financing
further territory acquisition and capital projects. Discussion followed. Mr. Zabee moved
to receive and file the October financials. Mr. Tralle seconded the motion. Motion
carried 3-0.
5.1 Consider additional personn.,el~ Electronics Technician/Home Security
Bryan Adams proposed the addition of personnel. Presented were a current
and proposed organizational chart, position description, evaluation form and a
proposed 4 year pay step plan. Discussion followed the presentation. Staffwas
directed to survey Vo-techs for salary suggestions.
Mr. Tralle moved to advertise for and hire an Electronics Technician/Home Security
person. Mr. Zabee seconded the motion. Motion carried 3-0.
1-612-441-2020 ELK RIUER UTILITIES 495 PO~ I~OU 14 °97 09;23
Page 2
Regular meeting of the Eli< River Utilities Commission
5.2 ~nslfler Bnllfleid Lighting Contributi01,
In August 11, 1992 the ERMU Commission moved to approve a donation of
electricity for rite ballflelds for a period of five years. In August.. 1997 the ER.MU
Commission extended the donation to the end of 1997. Dave Anderson appeared to
request further, donation and to explain the benefits of thc softball fields to the
community sad to the City. Di..ee. us~ion continued considering the benefitq and the
costs involved. .
Mr. Dictz moved tu pay thc first $5,000.00 of electrical charge~ us a donation,
City to bc billed at year end for the exee~s amount. (Policy to begin 1-1-9~). Mr.
Zaboe ~econded the motion. Mot/on carried 3-0.
6.1 _U~dnte Drinkin~ Foontll~
Bryan Adams up-dated the Commission on the policy regarding public drinking
fountains, and the installation cfa fountain at the high ~chool varsity baseball field
just west of Proctor Aveuue by the soccer field complex.
6.2 Review and consider Druz and Alcohol 'resting Poller
Staff presented thc Conmfission with a proposerl Drug and Alcohol Policy for their
consideration, along with the reasons for adoption of the policy to cover all employees
of the Elk R/ver Utilities. Discussions and cone~,rn, followed, with suggestions for
the re-wording for further clarilication. Staffw~s directed to revisc the pol/cy and
retttrn to the Commission at the December meeting/hr approval.
6.3 C:~on,~ider proposal to study BoudinE Limit for Water Department
A proposal fi.om Springstcad, Inc. for determination of the ERMU's debt capacity
and whether the current connection fee (WAC) i.q ..qufficient for repaying erdsting
and fi~rther debt s,rviee for capital improvements, gryan Adams advised the
Commission of the Water Deparunent's cash requirements and the major proiects
facing the Department. .
Mr. Tralle moved to accept thc propoz-al from 8pringstead, Inc,, not to exceed
$:5,130.00 fbr the study of bonding limiks for the Elk River Municipal Utilities
Water Department. Mr. Zabec seconded the motion. Motion carried 3 0.
1-612-441-2020 ELK RIUER UTILITIES 495 P04 NOU 14 '9? 09:23
Page 3
Regular meeting of the Elk River Utilities Commission
6.4 _U~_ -date Heat Share Pro,ram
Staff up-dated the Commission on the Heat Share program, which provides for
energy assistance for certain people who cannot pay their utility bills. Heat Share
is a program administered by the Salvation Army for emergency assistance.
Response by ERMU customers has been favorable.
6.5 Review Electric Demand Rate
Bryan Adams reviewed the Demand Customer Elec~ic rate, with proposed
adjustments. The rate study by ]kW. Beck was implemented in February, 1997
with the changes in the Demand Customer Elee~ie Rate to be made over a three
year period. Customer impact, budget needs and projected revenues and short-falls
were discussed, along with staff recommendations for changes. Staff was directed to
revise the tariff sheets for the Demand Rate and return to the Commission at the
December, 1997 meeting for approval.
6.6 Review Utili Connection Rate for Electric and Water
The rate study done in early 1997 was reviewed. At that time the recommendation
was to adjust the fees to the necessary needed amount to cover existing debt service
and future projects. Growth of the City and the increased demands for water services
discussed, with several viewpoints expressed from Commission and Staff.
Mr. Zabee moved to raise the WAC fee to 51,350.00, with no change in the
developer portion, the additional be placed on the Builder/Owner. Mr. Tralle
seconded the motion. Motioa carried 2-1. John Dietz voting nae.
The Electrical Connect Fees were discussed, with emphasis on the cost to the
Utilities for installations, and the impacts upon the Utility. The unique position of
high growth, and the expenses involved were gone over with Commissioners and
Staff offering their opinions and observations.
Mr. Zabee moved to raise the electrical connection fee from $800 to $900. Mr.
Tralle seconded the motion. Motion carried 2-1. John Dietz voting nae.
1-612-441-2020 ELK RIVER UTILITIES 495 P05 NOV
Page 4
Regular meeting of the Elk River Utilities Commission
6.7 Consider u -dated Itron Meter Readin S stem
A history of our meter reading system was presented, along with the need to
up-grade. The current system no longer has enough memory and carm
equipped with more, as well as bein ..... ~-' .... ot be
~ ~-~me to cope with the year 2000. The
Itron handheld meter reading system has been an excellent system and Start
recommends the up-date to be Itron. '
Mr. Tralle moved to purchase a current Itron Meter Reading System for
payment and delivery in 1998. Mr. Zabee seconded the motion. Motion carried 3-0.
Other Business
John Dietz asked that the Utilities staffcheck with City staffon the possibility of
combining health insurance coverage for employees at a lower rate.
Mr. Tralle moved to adjourn the November 12, 1997 meeting of the Elk River Municipal
Utilities Commission. Mr. Zabee seconded the motion. Motion carried 3-0.
The meeting of the Elk River Utilities Commission adjourned at 6:20 P.M.
The next scheduled meeting of the Elk River Utilities Commis'sion will be December 9,
1997.
Respectfully submitted,
Patricia Hemza
Office Manager