4.1. SR 11-17-2003l ver
TO:
FROM:
DATE:
SUBJECT:
MEMORANI
Mayor and City Council
Pat Klaers, City Administrator
November 17, 2003
Utilities Commission Update
Councilmember Dietz is the City Council representative
Commission. At the November 17, 2003 City Council m
Council with an update on Utilities activities.
)UF4
Item 4. I.
on the Elk River Municipal Utilities
eetmg, John is scheduled to provide the
Attached for your review are the agenda and the draft rr~
Commission meeting.
nutes from the November 12, 2003 Utilities
S: I CouncillPatl Updatesl Utilities.doc
ELK RIVER MUNICI
REGULAR MEE3
UTILITIES COl
AGEN
November
Elk River Utilit
ITEM NUMBER
1. Call meeting to order November 12, 2003 at 4:00
2. Consider Utilities Agenda
3. *Approval of previous meeting minutes
4. *Check Register
OLD BUSI
5.1 Staff Updates
5.2 Review Financial Projections
5.3 Review Proposed Water Service Line Change
5.4 Review Finalized Great River Energy Wholesale R
5.5 Review & Adopt 2004 Electric and Water Budget
5.6 Review & Adopt Electric and Water Retail Rates
5.7 Up-date Well #8
NEW BUSI5
6.1 Review AC, Tree, and Wellhead Brochures
6.2 Review & Approve Great River Energy Capacity Pt
*Financials
Other Business
*Consent Agenda items are considered to be routine and
PAL UTILITIES
ING OF THE
eIMISSION
2, 2003
les Offices
ACTION TAKEN
~ESS
~te
ESS
xchase Agreement
will
be approved by one motion.
NOV-14-ZO03
09:Z?AM
FROM-ERMU
ELK RIVER MLTNICI~A]
REGULAR MEETIN(
[7I'E. ITI~$ COMM
November 12, 21
Members Present: John Dietz, President; Jerry TaMe, Vice
Staff Present: Bryan Adams, GeneraliManager;, David Berg,
Manager '
1. Call meetin~ to order Novembe~ 12, 2003
President John Dietz called the Nbvember 12, 2003 meel
2. Consider Utilities Agenda
James Tralle moved to approv,~ the Agenda for NOVel
motion. Motion carried 3-0.
3. Consider ConsentA~enda
Jerry Talde moved to approve!the Consent Agenda as
October Check Register
October 15, 2003 Minsltes
Financials
James Tralle seconded the m~tion. Motion carded 3.
5.1 Staff Up-dates
David Berg reported to the Co .mn~ission that Well #8 is
and water meters are being installed ~t the same intensive ga¢
Bryan Adams reported that there ,have been four tours of l
has given, have been productive, and positive. Bryan asked
funding, and owning a proposed new iturbine being installed
regarding the new project, and it was ir. he consensus of the C~
further information. ;
Bryan Adams advised the Commission that the new buck.
continuing to be a problem. On the eyening of November 7,
outage. At the site, the mack failed t~ function, and a linerna~
him down, but it did put a lineman inlpedl. The controls app,
have things corrected, problems continue. It may be necessar
properly fixed.
763-441-809~
T-O0$ P.002/005
UTILITIES
OF Tme.
SSION
)03
;hair; James Tralle, Trustee
Water Superintendent; Patricia Hemza, Office
Lng to order.
aber 12, 2003. Jerry Takle seconded the
follows:
ill undergoing reconstruction, and that electric,
e as previous months.
he LNG Plant, and that the tours and talks he
ae Commission if they would be interested in
~y Great River Energy. Conversation continued
remission, that they would be interested in
X truck., purchased in February, 2003, is
2003, linemen were dispatched to correct an
t was in the air. Co-workers were able to get
:ar to be the problem, and despite many trips to
to trade in the truck, if the truck can not be
NOV-14-2003 og:Z?AM FROM*'ERMU 763-441-809g %005 P.003/005 F-?80
Regular meeting of the Elk River Mur)_icipal Utilities Co ssion
November 12, 2003
5.2 Review Financial Pro}ection~
Bryan Adams reviewed the electric and water income sta
assumptions. The electric income statement projections incl~
without. Discussion centered on cash reserves, bonding, and
maintain competitive rates. The water side was discussed in
growth in WAC units, and sales. Discussion continued betw~
necessary.
5.3 Review _Proposed Water Servi¢{ Line Chan!~e
temem projections, using the 2004 budget
~ded one with a $750,000 bond, and one
the best ways to keep costs down, and still
the same manner, assuming relatively constant
:en Commission and Staff. No action
· ry,a,n Ad, an~s ad.dressed the~lssuei of qualified water utilit~ personnel repairing water valves in customer
service Ames vexore me meter. The se. cond item discussed w~ thc insurance policy, which would pay for
,customer water services that have fai!ed. It was concurred, aider review, that the insurance policy would not
ye necessary.
Jerry Takle moved to add Utility staff, at owners authori? ~_tion, may replace water valves before water
meter..tames Tralle seconded the mqtion. Motion carried 3-~
Commission was advised by Staff,~ that in January, 2004, ~rater personnel would begin stand-by duty.
5.4 Review Finalized Great River E?ergv Wholesale Rate
Bryan Adams reviewed changes tb the wholesale electric ~te that was given to the Commission at the
October 15, 2003 meeting. (}Pi has ~dopted two rate structures at their November meeting. They have
submitted their adopted rates to RUS.i Upon RUS approval, Connexus, and ERMU must submit the
approved rate to FERC. Robert McDermot will again be rep~senting ERMU in this matter. Commission
and Staff continued discussing rates, ..ks well as production.
5.5 Review & Adopt 2004 Eleetr. ie a~nd Water Budget
The finalized 2004 Electric ~d Water Budget was pr~ented to the Commission for discussion.
.lames Tralle moved to approv~e the 2004 Electric and Water Budget.
Jerry Takle asked about the ac'mai figures for previous/years, and Staff responded that there is a
mistake in those history columns. Jol~n Dietz, and James Tral~e asked about the possibility of a bond issue in
2004 for the electric utility, since rate~ are low at this ~ime, D~scussion of the issue followed. Commission,
and Staff agreed that the process used for budgeting has been .i;uceessfully completed for 2004, and that the
same system be used for future years.I
James Tralle withdrew his original motion.
NOV-14-ZO03 09:Z?AM FROM'ERMU 763-441-8099 T-O05 P.004/005 F-?80
Page 3
Regular meeting of the Elk River Mu
November 12, 2003
James Tralle moved to approv,.e the 2004 Electric and
corrections. Jerry Takle seconded th~ motion. Motion carrie
5.7 Up-date Well #8
i
aicipal Utilities CommiSsion
Water Budget, with the amended history
~ 3-0.
Other Business
No other business.
the revised 10 NW die~l generation agreement with Great River
orion. Motion carried 3-0.
Jerry Takle moved to approve
Energy. James Tralle seconded the []
Bryan Adams reviewed the ne~d to relocate Well #8,' nrithin thc City Park to accommodate the
concerns of the park and recreation commission. To satisfy t ae Minnesota Department of Health
requirement and avoid filling wetland, we need to purchase ~pproximately 0.2 acres of land from Grace
Assembly of(}od Church. The payment schedule was diseased, appearing to be reasonabIe. John Dietz
inquired about the restoration, and that he wants the final costs of the restoration of the park land. Jen'y
Takle noted that he had visited the site, and believes the restc~ration has been done very welI, and in'his
opinion, looks better ~ it did origi~ally.
Jerry Takle moved to authoriz~ the purchase of the 0.: acre from Grace Assembly of God Church.
James Tralle seconded the motion. Motion carried 3-0.
6.1 Review AC, Tree, and Wellhead Brochures
The 2004 Conservation Impro.~ement Program (CIP) ~eluded the addition of aa AC Tree program.
There will be 150 baled and burlap tr~es available to customer's to be planted on the west or east side ora
residential home to conserve energy Wed from air conditioning, which resulted in me name "AC Tree". The
brochure for AC Tree, and the requirdd wellhead protection t~aa brochure that advises customers how to
keep their drir~king water safe were renewed. The consensu~ was that the brochures were well designed,
and that they will be well received.
6.2 Review & Approve Great RiveriEnergv Capacity. Pur~'.hase Agreement
The ~lk River Municipal U'tili..ties has contracted to G.'eat River Energy, 10 MW diesel generation at
the power plant. The contract expirec~ October 31, 2003, and a revised contract from GRE for the ERMU
diesel generation was reviewed with C.' ommission. Discussiop of the deteriorating status of one oft he 1948
engines was discussed, and it was agreed that it would proba]~ly not be cost effective to make further repairs
on it. Discussion continued regarding the positive side of the black start engines, URGE tests, and the
annual revenue to the ERMU from Gl LE. ;'
NOV-14-ZO03 og:28AM FROM-ERMU 763-441-80gg T-O05 P.O05/O0~ F-TBO
Page ~
Regular meeting of thc Elk River Municipal Utilities Commission
November 12, 2003 ~
The next regularly scheduled meeting oft. he Elk River Municipal Utilities Commission will be held
December 9, 2003.
President John Dietz adjourned the regular meeting ol'the Elk River Municipal Utilities Commission
at 5:20 pm.
Respectfully submitted,
Office Manager