4.2. SR 04-20-1998.y of
iver
TO:
FROM:
DATE:
SUBJECT:
Item #4.2.
MEMORANDUM
Mayor & City Council
Pat Klaers, City Ad~i~trator
April 20, 1998
Utilities Commission Update
Councilmember John Dietz is our city representative on the Elk River
Municipal Utilities Commission. At this April 20, 1998, City Council
meeting, John is scheduled to provide the Council with an update on March
and April Utilities activities. Attached for your review are the draft minutes
from the April 14, 1998, Utilities Commission meeting.
Please note that a joint meeting between the City Council and the Utilities
Commission is scheduled for Monday, May 11, 1998, at approximately 7 p.m.,
following the EDA meeting. Two major topics of discussion at this joint
meeting include the General Manager's Annual Report and a discussion on
the east Elk River project. The council should approve a motion
calling this joint meeting.
The next regular Commission meeting is scheduled for Tuesday, May 12,
1998, 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
II
II
II
Ii
I
I
I
I
I
ITEM NUMBER
1.
2.
3.
4.
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
AGENDA
APRIL 14, 1998
Elk River Municipal Utilities Office
Call meeting to order at 4:00 P.M., April 14, 1998
Consider Utilities Agenda
*Approval of March 10, 1998
*Check Register
OLD BUSINESS
5.1 Up-date Electric Wire & Conduit Bid Results
5.2 Up-date Methane Gas Generation & Wind Turbine Project
5.3 Up-date Electric Line Truck (verbal)
5.4 Up-date Computer & ITRON Meter Reading System Installation (verbal)
5.5 Up-date Substation 14 Notification (verbal)
NEW BUSINESS
6.1 Consider ERMU 1998/1999 Wage Request
6.2 Presentation of 1997 Audit by Abdo, Abdo, Eick & Meyers, by Steve McDonald
6.3 Review MMUA Draft Position on Retail Competition
6.4 Review Wellhead Protection Plan Requirements
6.5 Review Street Light Committee Recommendations
6.6 Review Otsego Substation Agreement with UPA & Wright-Hennepin
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
APRIL 14, 1998
Members Present: President, George Zabee; Vice Chairman, James Tralle; John Dietz,
Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Manager; Robert
McCartney, ~Water Superintendent; Patricia Hemza, Office Manager
Others Present: Steve McDonald, Abdo, Abdo, Eick & Meyers; Wade Lovelette, Line
Foreman; Mark Fuchs, Lead Lineman; Lloyd Lorenzen, Lead Lineman
1. Call meeting to order at 4:00 P.M.. April 14, 1998
2. Consider Utilities Agenda
Bryan Adams offered two items under Other Business, the School Street Project
and Well #6. John Dietz offered one item under Other Business, City Engineer.
James Tralle moved to approve the April 14, 1998 Agenda, with the three additions.
Mr. Zabee seconded the motion. Motion carried 3-0.
3. *Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
3-10-98 Minutes
March Check Register
Financials
5.1 Up-date Electric Wire & Conduit Bid Resuit~
At the March 10, 1998 Utilities meeting, Staff was authorized to award the 1998
Electric Wire and Conduit bid to the lowest responsive bidder. Bryan Adams
presented a bid tabulation reflecting the results, and advised the Commission that
the bid w~/s presented to Border States, the lowest responsive bidder.
5.2 Up-date Methane Gas Generation & Wind Turbine Project
Bryan Adams reviewed the decision by UPA to pursue other wind energy
development outside the Elk River Area, due to the new arrangement with
Cooperative Power. The progress of the Landfill Gas Generation project was
reviewed regarding the Power Strategies request for extensions and the
lack of engineering information or a finalized power purchase agreement.
Page 2
Regular Meeting of the Elk River Utilities Commission
April 14, 1998
5.3 Up-date Electric Line Truck
At the March 10, 1998 Utilities Commission meeting, it was moved to accept the
bid to the next lowest responsive bidder, since Amador Aerials has gone out of
business, and is unable to deliver the truck. Bryan Adams up-dated the Commission
on the progress regarding costs, projected delivery dates, and purchasing an alternate
cab and chassis.
5.4 Up-date Computer & ITRON Meter Reading System Installation
The ITRON Meter Reading System has now been successfully installed and has been
used for the March readings. During the installation, several problems were detected
with the computer system and resolved at the same time.
5.5 Up-date Substation 14 Modification
Staff reported on the progress of Substation 14. At present it is scheduled to be
energized next week, and the system is on schedule.
6.2 Presentation of 1997 Audit by Abdo. Abdo. Eick & Meyers. by Steve McDonald
Steve McDonald reviewed the Management Letter, Financial Statements, Compliance
Reports, and Financial Statements. Mr. McDonald responded to questions by the
Commission and Staff.
James Tralle moved to receive and file the 1997 Audit. John Dietz seconded the
motion. Motion carried 3-0.
6.1 Consider ERMU 1998/1999 Wage Re~_uest
Wade Lovelette, Line Foreman, Mark Fuchs, Lead Lineman, and Lloyd Lorenzen,
Lead Lineman appeared to present the 1998/1999 Wage Request. The 1998
Linepers0ns Salary Survey was reviewed and discussed. The request for additional
shirts and the request for a change in vacation carry-over days was discussed.
Staff was directed to check with the Auditors regarding vacation carry-overs. The
Wage Request was tabled, to be settled at the regular meeting of the Elk River
Utilities Commission in May.
Page 3
Regular meeting of the Elk River Utilities Commission
April 14, 1998
A request from McBrady Meter Reading for an increase in compensation was
reviewed and discussed. A survey of other Utilities meter reading costs was
presented, along with other options for meter reading.
Mr. Tralle moved to accept McBrady Meter Readings request for compensation
increase. Mr. Zabee seconded the motion. Motion denied 1-2. James Tralle voting
yes, John Dietz and George Zabee voting nae.
Staff was directed to meet with Pat McBrady and to return to the Commission at the
next regular meeting in May with results of the meeting.
6.3 Review MMUA Draft Position on Retail Competition
Bryan Adams presented MMUA's Draft Position on Retail Competition and discussed
the issues and how they affect the Elk River Utilities. It was suggested that the
Commission adopt a position on retail competition based on this Draft Proposal in the
fall of 1998.
Bryan Adams advised the Commission that he has been asked to represent MMUA on
the League of Minnesota Cities Electric Deregulation Task Force. Also presented was
a Proposal to the LMC from R.W.Beck for Analysis of Electric Deregulation.
6.4 Review Wellhead Protection Plan Requirements
A federally mandated program requires the ERMU to implement a Well Head
Protection Plan (WHP) in conjunction with the construction of Well #6. Bryan
Adams reported on the steps and procedures necessary for compliance.
6.5 Review Street Light Committee Recommendations
The Street Light Committee presented their recommendations for approval of
Lighting requests for the following:
One Light in the 700 block of Washington Court at the cul-de-sac
One Light in the 19300 block of Baldwin at the cul-de-sac
Four Lights on Highland Road from Jackson Avenue to Proctor
Absorb two Lights in the 18000 block of Albany, south of County Road 30 as part
of the Street Light Program.
James Tralle moved to approve the additional street lights as presented. John Dietz
seconded the motion. Motion carried 3-0.
Page 4
Regular meeting of the Elk River Utilities Commission
April 14, 1998
6.6 Review Otsego Substation Agreement with UPA & Wright-Hennepin
A preliminary Distribution Interconnection Agreement between United Power
Association, Wright-Hennepin Cooperative, and Elk River Municipal Utilities
was presented. Bryan Adams explained that the agreement reflects our rights and
obligations associated with the agreement. A finalized version will be presented at
a future meeting.
Other Business
Plans to widen School Street are in progress, which will require the Utilities to re-
locate our lines to accommodate the project. The project is not in our budget for
1998, so approval of the Commission is requested.
James Tralle moved to approve the re-location of lines along School Street. John
Dietz seconded the motion. Motion carried 3-0.
Well #6 will need a special meeting for the awarding of bids. It was decided to do
this at the regularly scheduled meeting of the Elk River Municipal Utilities on May
19, 1998.
o
John Dietz discussed the Utilities asking for bids/proposals from engineering
companies other than the City Engineer, Howard Green Company. John Dietz
considers that the City Engineer should be used by Utilities exclusively. Bryan
Adams explained his thoughts and further discussion ensued. George Zabee
suggested that the Commission make any decision if bids/proposals should be
considered for any individual water projects.
James Tralle moved to adjourn the April 14, 1998 meeting of the Elk River Utilities
Commission. George Zabee seconded the motion. Motion carried 3-0.
The April 14, 1998 meeting of the Elk River Utilities Commission adjourned at 6:10 PM.
A Joint City/Utility Commission meeting will be held May 11, 1998 at 7:00 PM.
The next regular scheduled meeting of the Elk River Utilities Commission will be on
May 19, 1998 at 4:00 PM.
Respectfully submitted,
Patricia Hemza, Office Manager