03-09-2004 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
February 10, 2004
Members Present: John Dietz, President; Jerry Takle, Vice Chair
Members Absent: James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; David Berg, Water Superintendent; Patricia Hemza, Office
Manager
Others Present: Michele McPherson, Director of Planning, City of Elk River
1. Call meeting to order February 10, 2004
President John Dietz called the February 10, 2004 meeting to order.
2. Consider Utilities Agenda
Jerry Takle moved to approve the Agenda for February 10, 2004, as presented. John Dietz seconded
the motion. Motion carried 2-0.
3. Consider Consent Agenda
Jerry Takle moved to approve the Consent Agenda as follows:
January Check Register
January 13, 2004 Minutes
Financials
John Dietz seconded the motion. Motion carried 2-0.
5.1 Staff Up-dates
Bryan Adams reported on the winter duties of the line crew. Dave Berg apprised the Commission of the
downing of the Cretex water tower, the very satisfactory progress on Well #8. He further noted that 35 new
water meters, and 41 electric meters were installed, and 2 security systems were sold in January. Pat Hemza
advised the Commission on the activities of the office staff, and preparations for the move to the wing at
City Hall.
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Regular meeting of the Elk River Municipal Utilities Commission
February 10, 2004
5.2 Review Elk River Park Commission Request
Michele McPherson, Director of Planning for the City of Elk River appeared to explain the
request for the ERMU to share in the cost of maintenance for the prairie plantings at Royal Valley Park.
John Dietz stated that he feels prairie grass is an amenity, and that an outside firm should not be hired to care
for the project, and that it should be maintained by City employees. Jerry Takle asked why the Utilities
should participate in the maintenance. Ms McPherson explained the particular care needed for the
maintenance of prairie plantings. Bryan asked if Phil Hals, of the City of Elk River had offered to do the
maintenance of the Royal Valley Park. Ms McPherson responded that Phil had offered, but the Park
Commission is of the opinion that an outside firm would be more qualified to care for the prairie plantings.
John Dietz asked if the Well had not been installed at that site, would prairie plantings have been considered,
and Ms McPherson replied that she did not believe so. John Dietz stated that he thinks the Utilities has done
more than their share of restoration of the site, and should not pay for maintenance. Jerry Take believes that
Utilities customers should not pay for maintenance of the park. Ms McPherson thanked the Commission for
their consideration, and noted that she would advise the Park Commission of the Elk River Municipal
Utilities refusal to participate in the maintenance at Royal Valley Park.
5.3 Review& Consider Pick-up Truck Bids
Bryan Adams explained the 2004 budget item for the purchase of two pick-up trucks. John Dietz asked
who would be driving the trucks, and their purpose. Bryan Adams reviewed the vehicle needs of outside
employees in conjunction with their duties. Commission, and Staff discussed the bids received for the
vehicles.
Jerry Takle moved to accept the local bid from Elk River Ford for two Ford pick-ups. John Dietz
seconded the motion. Motion carried 2-0.
5.4 Review Wholesale Electric Rate FERC Action
Bryan Adams explained the wholesale electric rate structure, and the document filed with the Federal
Energy Regulatory Commission. A short discussion followed. No action necessary.
6.1 Review 2003 Annual Report
Staff presented the Annual Report to City Council to the Commission, and asked for comments with any
additions or deletions. After a short review Bryan Adams thanked the Commission for their support of the
Utilities staff. He further noted that the Utility is stressing vision, and projections. The MMUA rate study of
municipal utilities was presented to Commission, with explanations of the ERMU place in the study. The
connection fees were discussed, with the understanding that developing areas are the driving force behind
the fees. No action necessary; receive and file.
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Regular meeting of the Elk River Municipal Utilities Commission
ebruary 10, 2004
6.2 Review & Consider Front-End Loader Purchase
The purchase of a front-end loader/forklift, as a 2004 budget item was discussed. The original plan was
to purchase a used front end loader. After researching many equipment options, and searching for a used
piece of equipment, it became apparent that finding a quality item is not possible at this time. Bryan Adams
advised that the present Bobcat is in need of clutch repair. The company offering the sale of a new Case
521 DXT from state bid is willing to take the bobcat trade-in at $3,000.00, which is less than if it had been in
good repair. John Dietz asked if the front-end loader would be used specifically at the plant site, or if it
would go out on jobs. Staff answered that it would move to job sites. Bryan Adams stated that he had
spoken with City maintenance crews regarding the purchase, and that their opinion is that the new Case 521
DXT would be a good choice.
Jerry Takle moved to buy the Case 521 DXT from state bid, using reserves for the difference
between the budget guideline, and the actual purchase. John Dietz seconded the motion.
Motion carried 2-0.
6.3 Review & Consider Electric Service Territory Change
Commission and Staff reviewed the process of territory acquisition. Staff asks for authorization to
purchase area 23, and to trade certain acres with Connexus to avoid building additional lines, and to make
acquisition more efficient. A brief question, and answer discussion followed.
Jerry Takle moved to purchase Area 23, and a portion of Area 22, to encompass the area in
Woodland Hills. John Dietz seconded the motion. Motion carried 2-0.
6.4 Review & Consider Commercial Lighting Program Cap
Commission and Staff reviewed a memo from Vance Zehringer regarding Commercial CIP rebates,
which results in substantial energy savings for commercial accounts. The cost of the retrofitting of
commercial lighting system could potentially deplete the rebate account by one or two large customers. It is
recommended that the policy be amended to limit the rebate of commercial CIP rebates to $10,000.00 per
year, and that no rebate should be awarded if simple payback without rebate, is less than one year.
Jerry Takle moved to accept the recommendation to limit the CIP rebate for retrofitting lighting, or
replacing motors to not exceed $10,000 per customer per year, not to exceed 50% of the total project cost,
and no rebate to be awarded if simple payback (Total Project Cost/Annual Power Cost Savings) without
rebate, is less than one year. John Dietz seconded the motion. Motion carried 2-0.
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Regular meeting of the Elk River Municipal Utilities Commission
February 10, 2004
Other Business
There was no other business to discuss.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
March 9, 2004.
President Dietz adjourned the regular meeting of the Elk River Municipal Utilities Commission at
5:10 PM.
Respectfully submitted,
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Patricia Hemza
Office Manager