Loading...
5.8. ERMUSR 10-08-2013 t- .Elk Riv Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager John Dietz—Chair Daryl Thompson — Vice Chair Al Nadeau—Trustee MEETING DATE: AGENDA ITEM NUMBER: October 8, 2013 5.8 SUBJECT: Historic Water Tower Update BACKGROUND: At the September Utilities Commission meeting staff was directed to obtain a budgetary quote for the demolition of the historic water tower on Jackson Street. A recent history of Jackson Street water tower discussion is attached for reference. DISCUSSION: The purpose for the request was to determine the minimum amount of ERMU would need to invest into the tower. The discussion at the September Commission meeting was to research whether the expense of the demolition of the water tower would be close to the amount of matching funds needed for a grant to restore the tower. The grant option that the City had explored required a 25% match. The budgetary quotes are as follows: • Full demolition with foundation removal and disposal is $62,500. • Restoration with historic finish is $450,000. The LMCIT/HCA Insurance Appraisal Report for the historic water tower is: • Historic reproduction is $1,020,500. • Replacement is $612,000. If a grant were awarded to restore the tower with a 25% matching requirement, ERMU would need to contribute approximately $112,500. This would result in a $50,000 gap if the cost of full demolition were applied towards restoration. There has been informal discussion on partnering with the City to secure the grant, restore the tower, and then transfer the asset to the City. To do this ERMU and the City would need to discuss how to fund the gap. At a minimum the Utilities Commission should discuss their level °►� POWERED s f3 Page 1 oft /1TVReE Reliable Public Power Pmvider POWERED TO SERVE 77 of commitment to restore the tower because the longer the decision is put off, the more costly and difficult the restoration will be. As evident from the attachments, ERMU has been considering this topic for over a decade now. ATTACHMENTS: • ERMU HPS joint Commission meeting memo and attachments —June 14, 2011 • "Sites Worth Saving — Minnesota's 10 Most Endangered Historic Places 2011" article - handout from ERMU HPS joint Commission meeting on June 14, 2011 • "Save the Water Tower" flyer—handout from ERMU HPS joint Commission meeting on June 14, 2011 • ERMU HPS joint Commission meeting minutes —June 14, 2011 • "Verbal Update on Jackson Street Water Tower" excerpt from ERMU Commission minutes—May 8, 2012 • "Jackson Street Water Tower Repairs - Verbal" excerpt from ERMU Commission minutes—June 12, 2012 r` Porteto Ir Page 2 oft INAJURFI Powerr lPro ider POWERED To SERVE 78 Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020 Elk River, MN 55330-0430 Fax: 763.441.8099 JOINT UTILITIES COMMISSION AND HERITAGE PRESERVATION COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E.—Director of Operations John Dietz—Chair David Berg—Water Superintendent Daryl Thompson—Vice Chair Al Nadeau—Trustee Heritage Preservation Commission Kristin Harris Mark Konietzko Lance Lindberg Debra Mortensen Stephen Rohlf MEETING DATE: AGENDA ITEM NUMBER: June 14,2011 5.1 SUBJECT: Jackson Street Water Tower Discussion BACKGROUND: In March 2002,the Utilities Commission authorized the demolition of the Jackson Street Water Tower. The Heritage Preservation Commission(HPC)then requested a delay to look into options saving the tower for historical reasons. The HPC offered that a plausible source of revenue for offsetting ongoing maintenance costs could come through modifying the historic tower to house communication antennas. Shortly thereafter, a communication company did install antennas on the tower. That company went under and ERMU did not receive payment in full for the lease. In 2008 the topic of the demolition of the water tower was again discussed by the Utilities Commission. The decision to demolish the tower was tabled. More recently, work has been done to determine whether or not the tower could be registered as a historic site. It was believed that if the tower were registered as a historic site that there may be grant money available for renovating it. Attached for review are the following: • May 6, 2002—Memo to ERMU Commission • May 15,2002—ERMU minutes for agenda item#5.2 • June 3,2002—Memo to ERMU Commission • October 1,2002—Memo to ERMU Commission • October 10,2002—ERMU minutes for agenda item#5.1 • January 14,2003—ERMU minutes for agenda item#6.4 • February 29, 2008—Memo to the ERMU Commission • March 11,2008—ERMU minutes for agenda item #6.3 • March 21,2008—Memo to the ERMU Commission • April 17, 2008—ERMU minutes for agenda item#5.2 79 DISCUSSION: The joint meeting of the Utilities Commission and the HPC should be used as bases to discuss the future of the Jackson Street Water Tower. The tower is in need of repairs and paint. The decision to restore or demolish the tower has continually been tabled during the last decade. The decision cannot be postponed indefinitely. The concrete foundations that the legs are attached to are deteriorating and would need to be inspected by a structural engineer to determine their integrity if the water tower were to hold water again. The top needs to be welded to the tank. The paint is lead based and will need to be removed prior to repainting. The approximate cost of repairs, paint removal,and repainting is$400,000. (See the attached budgetary quote for the paint removal and repainting.) Evenly distributed amongst the water customers would cost each customer approximately $90. The tower would need to be painted again in approximately 10 years. This next painting would cost significantly less because there wouldn't be any lead abatement costs. The tower is not currently on the insurance schedule. It is not yet known what the registration as a historical site would do for the cost to insure or if it would then be required. The cost to insure the other towers ranges from$400 to$725 annually. The cost to demolish the tower has been estimated at$35,000. The cost to restore the tower is not budgeted,nor is it included in the capital outlay forecast that was used then the Commission decided not to raise water rates for 2010, 2011,and 2012. If this restoration were done,the costs borne by the Utilities would need to be passed through the rates in the form of a rate increase. The ongoing maintenance costs, including the repainting in 10 years,would also need to be worked into the water rates through the form an increase. The 2011 budget included$35,000 for demolition of the water tower. This amount was a budgetary quote that has been carried over from previous years and would need to be reviewed. If the tower is registered as a historic site,there may be opportunities to apply for grant money to help pay for restoration. Typically these grants do not cover 100%of the costs,but rather they require a matching contribution. A decision to register the water tower as a historic site will be followed by a decision of who should pay for the initial costs and the ongoing maintenance costs. Even if there were grant money,there would be matching obligations for someone. Should these costs related to a historic landmark be borne by the water customers through fees,the residents through taxes, independent fundraising,or a combination? In 2002, it had been proposed by one of the Commissioners that the tower be sold to the HPC for$1. In 2008 it had been discussed that the tower could be sold to the HPC for$1 and the Utilities could contribute the amount it would have cost to demolish the tower toward the restoration. There is still the option to find other uses for the tower to generate revenue to help offset costs. It is not likely that a communication company would want to attach antennas to this tower due to its location and height. However,the tower has not been marketed for that use recently. There may be an option to use the tower for effluent water from the waste water treatment plant. This would require some capital outlay for infrastructure to get the effluent water to the tower and then infrastructure to distribute the water to customers. This would also require pump equipment to fill the tank. The costs to restore the tower would not include painting the interior of the tank. This would need to be done if the tower were to hold water again. Also,there may be opportunities to do fund raising events to generate the required revenue to restore the tower. These options have not been explored by the Utilities as the utilities are not geared towards organizing and running these types of events. ACTION REQUESTED: Staff requests direction from the Commission on the Jackson Street Water Tower for purposes of budget, rate design,and capital outlay forecasting. 80 Classic irs) Protective Coatings Wisconsin I frsas i Florida :1k River Public titilmes June 7, 2011 A1I11: David Berg RE. W'ateo I-ank Painting 1705 Main Street blk River, MN 55337(1 hI2-$45-r 190 office ('lassie Protective Coatings. Inc is ill receipt of}our request 1111 A hudaetar> quote 10 c0nta111 and repaint the exterior oldie historic 100,000 gallon riveted.cone roof water lank located in 1:1k River and provides the fallowing: CPC proposal includes lull containment-abrasive blasting. lead abatement and recoating the exterior of the cater tank to an owner selected historic red top and silver loner color.scheme. Proposal would he by a zinc.epoxy urethane system which is a long lasting coating system with eNcellenl long.term color retention Total Budget labor, Equipment and Materials Installed $380,000.00 Classic Protective Coatings is a quainy iudusinal coatings co ilractor that specializes in Watet tower renovations and repairs We pride ourselves on safety of our employees and soh sites. We provide you with the highest level of quality and service in the industry 'hank you for the opportunity to provide this proposal to you if you have any questions Or comments please reel free to contact me at 952.46l-4di9 or at bradti'classicprateccivecoatings.con. R espec01 l'. .i 1 Brad Smith F..:Aimator:Project Manager 4'stire% N7670 Slate 11 ighn ay 25 I 1 lenonumie \A'iscoasin 5475 1-59 28 */T aryo SSPC Telephone 715-233-6267 1 Facsimile 715-233-6268 Q.+, SSPC \n0 OPt ca OP2 a \herb p�,1, KN 11.C1aSSICp tutees iv ecoa lingS.00t1t *A. to 81 Elk River 1unicipal Utilities 322 King Avenue phone: 763.441.2020 FA River, MN 55330 Fax 763.4418099 May 6, 2002 To: Elk River Municipal Utilities Commission James Tralle John Dietz George Zabee From: Bryan C. Adams Subject: Jackson Street Water Tower At the March 12, 2002, Elk River Municipal Utilities Commission meeting, authorization was given to demolish the Jackson Street Water Tower. As you may recall, the property directly east of this tower is being redeveloped. The property owner has given us permission to use his property to set equipment to remove this tower. Staff has secured two prices to remove this tower and they are as follows: Iseler Demolition $30,900 TM1 $26,500 As seen in the recent article in the Elk River Star News, the Heritage Preservation Commission desires to preserve this tower. The tower will need to be painted in a year of so. The estimated cost is estimated to be: Paint Exterior Only $ 50,000 and on- going every 12 years ± Blast & Paint Exterior $100,000 The exterior ladder & cage is damages and needs to be repaired soon if the tower is kept. If the Heritage Commission or some other identity does not want to take the financial risk and liability for this tower, staff continues to recommend the tower be demolished soon. 82 Page 2 Regular meeting of the Elk River Municipal Utilities Commission May 15, 2002 5.2 Update Jackson Street Water Tower The Elk River Utility Commission authorized the demolition of the Jackson Street Water Tower at the March 12, 2002 meeting. The Heritage Preservation Commission appeared before the Commission to request delay. They explained that they would like to have the Tower saved for its historical significance, as the first tower erected in Elk River, providing water to the citizens. Pat Dwyer advised that there are discussions taking place regarding the use of the tower as a receptacle for cell phone antennaes. The plan could generate approximately $10,000.00 to S12,000.00 annually, to help with the upkeep of the tower, Bryan Adams further explained that the property adjacent to the tower will be developed, which will make access to the tower difficult. Glenn Sundeen concurred. James Tralle advised that he would be willing to wait until the Heritage Committee returns with fine plans. George Zabee has offered to sell the tower for S 1.00, to some other entity, relieving the ERMU of maintenance problems. John Dietz inquired as to expenses in the maintenance of the tower. Staff responded by saying that the tower would need painting on a regular ten to twelve year schedule, and that the ladder and cage are in need of repair at the present time. Bryan was directed by the Commission to meet with Mr. Dwyer, and his contacts, regarding the use of the tower. Mr. Kragness reiterated the viewpoint of the Heritage Preservation Committee for saving the Jackson Street Water Tower. Bryan Adams will return to the Commission at a future meeting, with his findings. 5.3 Update CAP Programs Vance Zehringer updated the Commission on fifteen Conservation Improvement Programs (CIP) that have been submitted to Great River Energy for inclusion in their report to the Department of Commerce, and the State Legislature. Draft brochures for the new programs were reviewed, as well as two additional programs. James Tralle asked if Connexus has similar programs. The budget for the expenditures for CIP were reviewed, along with the yearly requirements. 5.4 Review Water Brochures The 2001 Annual Drinking Water Quality Report, Water Conservation Brochures, and a Water Your Lawn Wisely advisory were reviewed and discussed. The Water Quality Report is required by federal regulation disclosing any water contaminants. The last two brochures deal with making our water customers more sensitive to the need for water conservation. 83 1-1k River iviunicipal Utilities 322 King Avenue phone: 763.441.2020 Elk River,MN 55330 Fae.763.411.8099 June 3, 2002 To: Elk River Municipal Utilities Commission James Tralle John Dietz George Zabee From: Bryan C. Adams Subject: Jackson Street Water Tower On May 21, 2002, 1 met with Pat Dwyer, Kurt Kragness of the Heritage Preservation Commission, and Doug Derr representing Vertical Partners and a former resident of Elk River concerning the future of the Jackson Street Water Tower. Doug Derr, through his company, coordinated the installation of digital communication infrastructure between public and private entities. This includes coordinating telecommunication antenna on structure like water tower. In summary, the digital communication industry is expanding at an increasing rate and the need for future antenna sites is also increasing. The events of September 11, 2001, has stowed this industry but it is projected to pick up in the future. The use of the Jackson Street Water Tower as a base for communication antennas is unknown at this time and it may take 6 months to 2 years to explore this potential opportunity. The resulting revenue stream may or may not be sufficient to pay for the continued maintenance of this structure. The concept of placing antennas on a water tower and compromising its historic value is also debatable. Mr. John Affords, the owner of the property directly east of this water tower, indicates he desires to start his redevelopment project this summer. The residence will be demolished in late summer with new construction taking place early 2003. The Heritage Preservation Commission is looking at the Elk River Municipal Utilities (ERMU) to take the risk and pursue the opportunity of potential antenna rental space to provide the necessary revenue to save this "historic" water tower. 1 indicated the Utility Commission makes the ultimate decision, but from my perspective this is a financial decision. It is more economical to remove the structure than maintain it, less liability from both property damage or personal injury from someone climbing it and falling off. Also by removing this structure, a 100' x 100' lot becomes available for redevelopment. If some other entity desires to pursue this opportunity 84 in an effort to save this structure, we will provide our utmost cooperation and expertise, but preservation effort is not the ERMU's mission. One noteworthy conclusion did evolve from our discussion. Due to the projected increase in wireless communication and increase demand for aerial antenna sites, Elk River should do a study to identify potential antenna sites from a technical, land use and aesthetic prospective. 2 85 Elk River 4unicipal Utilities 322 King Avenue phone: 763.441.2020 Elk River,MN 55330 Fax:763 441 8099 May 6, 2002 To: Elk River Municipal Utilities Commission James Tralle John Dietz George Zabee From: Bryan C. Adams Subject: Jackson Street Water Tower At the March 12, 2002, Elk River Municipal Utilities Commission meeting, authorization was given to demolish the Jackson Street Water Tower. As you may recall, the property directly east of this tower is being redeveloped. The property owner has given us permission to use his property to set equipment to remove this tower. Staff has secured two prices to remove this tower and they are as follows: Iseler Demolition $30,900 TMI $26,500 As seen in the recent article in the Elk River Star News, the Heritage Preservation Commission desires to preserve this tower. The tower will need to be painted in a year of so. The estimated cost is estimated to be: Paint Exterior Only $ 50,000 and on- going every 12 years ± Blast & Paint Exterior $100,000 The exterior ladder & cage is damages and needs to be repaired soon if the tower is kept. If the Heritage Commission or some other identity does not want to take the financial risk and liability for this tower, staff continues to recommend the tower be demolished soon. 86 ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE ELK RIVER MUNICIPAL UTILITIES COMMISSION October 10, 2002 Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Trustee Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; Patricia Hemza, Office Manager Others Present: Pat Dwyer 1. Call meeting to order President James Tralle called the meeting to order at 4:00 PM on October 10, 2002. 2. Consider Utilities Agenda John Dietz moved to approve the Utilities Agenda for October 10, 2002, George Zabee seconded the motion, Motion carried 3-0. George Zabee moved to approve the Consent Agenda as follows: September 2002 Check Register September 9, 2002 Minutes Financial Reports After a brief discussion of the reports, John Dietz seconded the motion. Motion carried 3-0. 5.1 Review and Consider Future of Jackson Street Water Tower Pat Dwyer appeared to update the Commission on progress for securing digital communication use of the Tower. Mr. Dwyer advised that he does not have an agreement at this time, but feels that it will happen. He further added that he believes in saving the tower, and asks for consideration. Discussion centered on the time table for construction on the adjacent site, which would give access for the removal of the Tower. John Dietz noted that he has no desire to remove the Tower, feeling that it does have historical value. George Zabee added that he is undecided at this point. James Tralle moved to return to the question of whether or not to remove the Jackson Street Water Tower at the January, 2003 regular meeting of the Elk River Municipal Utilities Commission. 87 • ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION January 14, 2003 Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Trustee Staff Present: Bryan Adams, General Manager: Glenn Sundeen, Line Superintendent; David Berg, Water Superintendent; Patricia Hemza, Office Manager Others Present: Terry Maurer, Howard R. Green Company, John Alfords I. Call meeting to order January 14, 2003 2. Consider Utilities Agenda George Zabee moved to approve the Utilities Agenda for January 14, 2003. John Dietz seconded the motion. Motion carried 3-0. George Zabee moved to designate First National Bank official depository for 2003, and designate Elk River Star News official newspaper for 2003. John Dietz seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda John Dietz moved to approve the Consent Agenda as follows: December, 2002 Check Register December 10, 2002 Minutes Financials George Zabee seconded the motion. Motion carried 3-0. 6.4 Review K Consider Jackson St. Water Tower George Zabec moved to postpone any action or discussion on the Jackson Street Water Tower until the April, 2003 Utilities Commission meeting. Motion died for lack of second. Bryan Adams advised Commission that Metropolitan Cardiology Consultants have decided that they v. ill not he using the Jackson St. Water Tower for a cell phone antenna, and no other inquiries have been made. John Dietz spoke in favor of keeping the Tower as a part of the history of Elk River, and that he believes other companies will be interested in using the Tower as a site for cell phone antennas. John Alfords appeared to relate the time frame for his construction on the property directly east of the Tower. Mr. Al fords would be amenable to having the Utilities use his property for removal of the Tower for the next three months. After that, his property would no longer be available. He further noted that he personally feels it is an eye-sore, and is of no value historically. James Tralle asked Dave Berg, Water Superintendent what his opinion is, and he replied that he would like to have it removed. James Tralle asked Staff for 'iarticulars of what portions need repairing. Staff listed the needed repairs, noting that painting could be eyed for another year, but other structural repairs should be done immediately, if the Tower is to be saved. 88 Page 2 Regular meeting of the Elk River Municipal Utilities Commission January 14, 2003 George Zabee said that since the Tower sits in the middle of the old town of Elk River, there may be some significance for saving it. James Tralle questioned if the Tower would last another sixty years, with repairs. Bryan Adams answered that concrete around the anchor bolts was cracking, but if repairs are accomplished, and regular maintenance performed, it should last for many }ears. John Affords asked if cell phone companies would really be willing to put antennas on such an old structure. He further asked why the site is not fenced to prevent trespassing, or vandalism. Commission said that would be an item to farther discuss. James Tralle thinks that the Tower should be repaired, and gamble that it would eventually be used for a cell phone tower site when the economy improves. Bryan advised that quotes would need to be obtained for repairs. James Tralle moved to keep and to perform necessary repairs to the Jackson Street Water Tower. John Dietz seconded the motion. Motion carried 2-0, George Zabee abstained. Items 6.3, and 6.4 will be discussed before 5.2, to accommodate Terry Maurer's presence at the meeting. 6.5 Feasibility Stuck — Boston and Concord St. Utility and Street Improvements The pertinent sections of the feasibility study for Boston Street and Concord Street Utility and Street Improvements prepared by Terry Nfaurer of Floward Green Company were reviewed. Terry Maurer, and Bryan Adams responded to questions from the Commission, saving that ultimately they believe the subject will be dropped for lack of interest by citizens. James Tralle moved to receive and file the Feasibility Study — Boston and Concord St. Utility and Street Improvements. John Dietz seconded the motion. Motion carried 3-0. 6.6 Feasibility Study — 2003 Pavement Rehabilitation Improvements The Feasibility Study--2003 Pavement Rehabilitation Improvements was discussed. The question of offering to re-place curb stops on Morton was the center of the discussion. It is believed that doing so while the street is tinder construction %souk! be advantageous to citizens, as well as the Utilities, and City. It is not known at this time how many customers this would impact, but it could be as few as two. Terry Maurer explained the Feasibility Study expenditures. 5.2 Resins. & Consider 2003 Wire Staff presented a bid tabulation for 2003 electric wire needs. The difference between EPR versus XLP wire was discussed. Glenn Sundeen responded to questions noting that the EPR has superior workability, and longevity. George Zabee moves to accept low bids, with the exception of approval of the recommended EPR wire from Resco, at a slightly higher amount than the lower cost XLP. John Dietz seconded the motion. Motion carried 3-0. 89 Elk River Municipal Utilities 13069 Orono Parkway • P.O Box 930 Phone: 763.441.2020 Elk River, MN 55330-0430 Fax: 763.441.8099 February 29, 2008 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey John Dietz From: Bryan Adams Subject: Jackson Street Water Tower The 2008 budget for the water department contains a $40,000 item to demolish the Jackson Street tower. This same issue was discussed in 2002. Attached is the following information for your review. 1) Item 5.2 of May 15, 2002 minutes 2) Item 5.1 of October 10, 2002 minutes 3) Memos to Commission dated May 6, 2002, June 3, 2002 and October 1, 2002 4) Item 6.4 of January 14, 2003 minutes Minor repairs were done on this tower in 2003. In approximately 2004, communication antennas were placed on this tower but the communication company went broke and final lease payments were never made. Your staff has been marketing antenna placement for this tower but has been unsuccessful due to tower location and not being tall enough. This tower has deteriorated where it either needs to be repaired or demolished. The cost of spot repair and painting the exterior is estimated to be in the $55,000 to $60,000 range. The cost of removal is in the $35,000 range. Staff continues to recommend this unused water tower be demolished. 90 Page 3 Regular meeting of the Elk River Municipal Utilities Commission March 11,2008 secondary current. John Dietz asked how often the arc flash incidents occur,Glenn responded, not very often. Staff is in the process of compiling an arc flash assessment analysis. 6.1 Review Electric& Water System Mapping Elk River Municipal Utilities water distribution system is below ground and approximately 70%of the electric system is below ground also. Accurate mapping of the electric and water distribution systems for operations and maintenance is critical. Abandoned electric and water lines will also have to he located. Previously United Services Group documented and maintained our distribution maps. Troy Adams has since brought the mapping in-house. Troy Adams presented the map books for the electric and water distribution systems. Map books are currently printed for the crews to have with them in the field. The future to mapping is in the Arcview and GPS programs via laptop computers. The City of Elk River is currently utilizing this method. This method is costly but can be updated daily on the laptops versus updating map books periodically. 6.2 Employee Compensation Survey In April,employees typically make their compensation increase request. In preparation of this, staff has surveyed the seven comparable adjoining electric utilities for position salaries. Does the Commission have any other issues they would want surveyed? John Dietz requested a survey on the health insurance percentage paid. 6.3 Review Options for Jackson Street Water Tower The 2008 budget for the water department contains a$40,000 item to demolish the Jackson Street tower. This same issue was discussed in 2002. The Heritage Preservation Commission appeared before the Commission at that time to request a delay. The possibility of utilizing the tower for digital communication to help pay for maintaining the tower delayed the need for demolition. Minor repairs were done on this tower in 2003. In approximately 2004, communication antennas were placed on this tower but the communication company folded and the final lease payments were never made. Staff has been marketing antenna placement but has been unsuccessful due to tower location and not being tall enough. The deterioration of this tower is now an issue. The repairs would cost an estimated $55,000 to$60,000 whereas the demolition would cost approximately$35,000. John Dietz asked if the Historical Society has been notified of this, and if would they want to share in the preservation costs. Staff responded they have not contacted them as of yet, but will ask. Jer y Gumphrey will address this at the next City Council workshop. Consensus is it would be too costly for the Utilities to solely assume repairs and liability. If other contributors are willing to help,the tower could he saved. Other Business Vivian Schmidt, a long time employee of 30 years.will be retiring the end of May 2008. Staff is in the process of finding a replacement for this position. There will be promotions within the office which will open up a position for clerk/receptionist. This hiring process will be started 91 Elk River ^� Municipal Utilities 13069 Orono Parkway • PO. Box 430 Phone: 763.441.2020 Elk River, MN 55330-0430 Fax: 763 441 8099 March 21, 2008 To: Jerry Takle President of Elk River Municipal Utilities Commission From: Bryan Adams pJ General Manager VUv Subject: Jackson Street Water Tower This memo is in response to your requests for more information on the Jackson Street Water Tower. At our March 2008 Elk River Municipal Utilities Commission meeting, we discussed the future of this tower. We either need to paint this structure or remove it. The estimated cost to remove this tower is in the $35,000 range. The estimated cost of repainting is in the $55,000 to $60,000 range and will need to be spent on a 10 to 12 year interval. Also by removing this tower and pump house, this lot can he redeveloped. Enclosed is the following information for your review. 1) Picture of this 100,000 gallon water tower. 2) Aerial view of Jackson Water Tower area. This tower was constructed in 1920 by Minneapolis Steel and Machinery Company and was the beginnings of Elk River's Municipal water system. This tower and the "Cretex" water tower, which was demolished in 2002, have not been in use since approximately 1986. When the water tower on Freeport Ave. was constructed in 1985, the Jackson Ave. and Cretex towers became obsolete due to their height. In 1997, municipal well WI which is at the base of the Jackson Ave. Tower \aas properly abandoned. In 2002, Utility staff proposed the Jackson Ave. Tower be demolished. It was decided at that time to market this tower as a place to attach telecommunication antennas. These marketing efforts have not been successful due to the towers' location and not being tall enough. There is nothing unique about this structure. Still in rural America in the small communities, many of these towers are still in use. Due to the smaller capacity and limited height, these structures often do not meet today's fire flow and pressure needs for larger or growing communities. 92 Page 5 Regular meeting of the Elk River Municipal Utilities Commission April 17, 2008 look the same printing them in-house and staff responded that they would. Glenn Sundeen reported that tree trimming continues with three crews focusing on that completely. The issues that were found with the infrared study have now all been completed. There was some proactive maintenance done to remove several porcelain cutouts and replace then with polymer cutouts. in doing this many problems were discovered and he estimates that they saved themselves from at least 6 outages by doing this maintenance. John Dietz stated that he was out walking one Sunday and noticed that there were some utility employees doing some work at a customer's place of business and questioned why that was done on a Sunday when we would have to pay double time wages. Glenn responded that it was at the customer's request as the only time they had available and we will always by to work with the customers. 5.2 Review Jackson Street Water Tower Issue At our March 2008 Elk River Municipal Utilities Commission meeting, the future of the Jackson Street Water Tower was discussed. The tower either has to be painted or removed. The estimated cost to remove the tower is in the$35,000 range and then the lot can be redeveloped. The estimated cost of painting is in the$55,000 to $60,000 range with repainting every 10 to 12 years. Lori Johnson from the city was present to be able to report to the i-IPC when they meet to discuss the future of the tower. John Dietz made a motion that we recommend to the City Council that if someone/organization shared in the cost of painting the tower, the Elk River Municipal Utilities would move forward with painting it. Jerry Gumphrey seconded. Motion carried 3-0. 6.3 Review& Consider Bid Tabulation for Electric Cable On April 9, 2008, bids were received to furnish and deliver our electric cable needs for the 2008 planned work. Staff recommends awarding to the lowest responsive bidders, Border States Electric Company for the primary cable and Resco Electric Utility Supply for the secondary cable. John Dietz questioned how the escalation cost works. Staff responded. Jerry Gumphrey made a motion to award the bid to Border States Electric Company for the primary cable and Resco Electric Utility Supply for the secondary cable. John Dietz seconded the motion. Motion carried 3-0, 6.4 Review& Consider Bid Tabulation for Install UG Cable The 2008 electric budget contains a$180,000 item to replace the 30 year+ cable in the Brentwood area. On April 9, 2008, bids were received to install the underground cable. Staff will be installing the necessary equipment basements,transformers, and cable terminations. Staff recommends awarding to the lowest responsive bidder,Michels Pipeline Construction. Jerry Gumphrey questioned the accuracy of the low bid since it was substantially below the others presented. Staff responded that they did question the bidder and was told they really wanted the 95 PRESERVATION • ALLIANCE =_-_—. OF- ' �� MINNESOTA . . . h. . . . . .. • .... . .. .... :: ..:: . : • ., . . . av1n .. • • • .. .. • • . . . . • • . • • : .•• •.:, •• ::: .. .:•• •••• • :.:". • ,MINNESOTA'S. . . • . .. ... • . 1..... ST ENDANGERED HISTORIC. PLACES ' ' - • • For the past eigl t n a n 'ye ark, the -Pi*si,rXa iui, Aiijanwe at,M sir esota has ' compiled an annur� h t,offhe state S threateped=Histonc'buildings,:sites 'and '• structures.While the enyclarrgenngrelrcurr}st n esvaruy,PAM s response remaiins '•. the same—to shine a spoiljght on�tasgimprarit places and to equip local, •• advocates to •rally for preservation. Whether these places face impending.` demolition•or continual neglect, financial hurdles, organizational challenges;' . . • or restrictive.public policy,':PAM<ho:p'es to fo'cu's publicattentio:rr;on favorable: • • . ..••:•••• outcomes that can be achieved;through.a;preservation approach..Of the more . • than:150'Historic places featured,Over..the::life.of:'•this,program, •nearly .two=: •• thirds have been•saved in part by.their inclusion:on.the 10 Most Endangered • • . Historic:Places list. Now celebrating its 30P anniversary, •PAM is.a .statewide, private, nonprofit -';`organization.advocati ng for:the�preservation of:Minnesota's historic resources. . • PAM was'incorporated as.a 501(c)(.3):nonprofi.t in;;198.1 by'Minnesota citizens • ,•• concerned about the.future.of•the state's architectural:and cultural landmarks, end`l a's;grown into a'.net.work.rep'resenting thousands:of•voices .statewide: Beyondourmembership, we collaborate and.p.artner with other local, state, and national organizations•and agencies to.preserve,•:protect, and promote historic.places in our communities. : For more inforniation about these,sites, and to see what you can dot].help; • . .• .• :•• . mvisit.www.mnpreservation.org/programs/ten- ost-endangered • • 4?4 j1t PRESERVE PROTECT - PROMOTE 96 1 JACKSON STREET ©HOWE SCHOOL - WATER TOWER , Location: Elk River Location: Minneapolis Built: 1920 Built: 1927 Status: National Register listing in Status: Not yet evaluated progress An icon of Elk River's rapid growth and a Served students and broader community j local engineering achievement,but no of the Longfellow neighborhood until Phot o -ograph courtesy of Sherburne History Center. longer in use.Owned by the city's utility 2005.Several reuse proposals for _ , commission,which announced plans to housing,charter schools,and artists' live- we `t''O ` , dismantle it in 2008. Elk River Heritage work space have been rejected by _ _ Y �� E Preservation Commission opposes Minneapolis Public Schools(MPS) despite i ': I``r 1 r }°: demolition,hopes to nominate the water interest and action by concerned citizens. _. -' I� F•4 tower to the National Register of Historic Now proposed for total demolition by - " rl 1 ' Places and access grant funds for MPS in order to build athletic fields for maintenance and rehabilitation. nearby middle school. _ g ©JOHNSTON HALL rr � ,zr C V ° - _4 „ , �Y; Location: Faribault o y �.�1,r Built: 1888 "` 1 i ''ri Status: Listed in the National _ ...1 Au I k3lb u s6kY Nalk, 6,+1H Lw T IN d 6 y ikl Register of Historic Places Limestone Richardsonian Romanesque ' building was built for local seminary, f_ rehabilitated as medical offices following demolition threat in mid- -_ '` 'J 1980s. Now surrounded by modern © DREDGE FERGUS FALLS REGIONAL hospital complex,building needs critical WILLIAM A. THOMPSON 4 TREATMENT CENTER repairs totaling more than$1 million Location: Mississippi River, near Location: Fergus Falls and a new owner with a commitment to Winona Built: 1888-1907 preservation and reuse. Built: 1937 Status: Listed in the National Status: National Register listing in Register of Historic Places progress Massive three-story, U-shaped building Maintained channel widths and depths has been vacant since 2007.Tours by -e :.r on the Mississippi River for nearly 80 local preservation advocates, Friends of years. Measuring 267 feet in length,the the Kirkbride,draw large crowds 1.' dredge was propelled by 650 HP engines, the summer City is concerned about and operated by nearly 70 crew local taxpayer obligation, wants to use up [I members. Decommissioned by the Army to$7 million in approved state bonding . i,t F A, Corps of Engineers in 2006. Friends of the funds to clear the site and develop Thompson hopes to find a permanent housing. Rehab options must gain a ' I C9, home for exhibition or reuse to save the traction by summer 2012 or city will pull x' dredge from becoming scrap. the plug. ?4,+t o.‘,. e1F(' ' n R Yn ai VY ,,I ' ,r ° /'� iRESERV<iION =J — — XCE 1 O MOST ENDANGERED HISTORIC PLACES 2011 1111.1 .. NESOT< 97 4 I 9 PORKY'S DRIVE-IN i Location: St. Paul / Built: 1953 Status: National Register-eligible Iconic drive-in 9�;, epitomized ��' I-r -,n -, ,I I University y<� Avenue's r {,� - - automobile 4 age,was i-.5'I- :) 6 MAYOWOOD HISTORIC 8 PILLSBURY "A" MILL popular < DISTRICT COMPLEX old car fans. I old car fans. Location: Rochester Location: Minneapolis ('"-v Closed Built: c. 1870 - c. 1935 Built: 1881 - 1919 abruptly in Status: Listed in the National Status: National Register and local early April, buildings to be moved to Register of Historic Places listing; "A" Mill is National site near Hastings in summer 2011. Remaining 120 acres of Dr.Charles H. Historic Landmark Mayo's estate,which was once 3,000 Eight-building complex with associated 1 0 ST. PETER'S CHURCH acres in size. Historic district includes infrastructure offers tremendous Location: Duluth WPA-era bridge and darn,farm buildings, opportunity for adaptive reuse landscape features, and several houses, Built: 1925 - 1927 incorporating green technologies. Recent Status: Not et evaluated including Mayowood, residence of Dr. plans fizzled amid down economy;site y Charlie and his family. Plans to replace purchased out of foreclosure by a Closely tied to the local Italian bridge will remove significant landscape consortium of banks.Another master immigrant community from the time of features and impact character of district. development plan is needed to ensure the its design and construction until its Comprehensive plan is needed to buildings are reused in a way that's best sudden closure in October 2010.Stone preserve"Minnesota's Biltmore." for the historic property and the city. facade is native basalt,built by the same masons who crafted some of Duluth's 7.0 MITCHELL YARDS rm. most notable residences.Supporters Location: Hibbing liL�kr4 envision a mixed-use cultural center to -ATOP," maintain Italian traditions and reach Built: 1906 into the community, but need Status: Not yet evaluated cooperation of the diocese to proceed. Primary switching and servicing facility ,1 pp for the steam locomotives that F f�,�l„ - a- transported ore from the Iron Range to in 'd the Twin Ports, helped U.S. win two - world wars. Could accommodate nine irl engines at a time inside the building. r I I 7 1 I Used for decades as a salvage yard,site , r I" 3 I l :J' s. • r.1 was purchased recently with the hope of 7.,K i I` ri turning it into an arts center focused on i 6 ' metalwork. Building needs critical � rr.. - 1 repairs, especially new roof,to continue to share its story. Photographs by Katherine Scott,Black Box Images, PRESERVATION 2®11 except as noted. ..<7,1,_.ss 1 0 MOST ENDANGERED HISTORIC PLACES 98 PAIN 2Q 1 ORGANIZATION L., SPONSORS 5 . ' 4a@ js& l z �* 5 f-tiny y4 $ , bank®+t+ Ti rN-N4 Frye Star Service Guaranteed ('� "' �kt ale & :zj 4 �' v�l.�A,�a J'eg f,s'r r,E•; i-' < c Tt sip I :.Y i F , 4 �'.+ :, .ylyd ey & y. «rt e i ii i0� a � e v 'S 1 : '. e,20piit+''x°{'";00 v ,19:::u. . kk-:4*-" •.; 4 + -0id i_y y i i a 2 1 +` �"(a c z 4 s v 4?. �".. ..�� :lY .,�'k's. �b s.r' ``,, fxl y *k' u�` w, r J s�Ci{w c t e 9 '1. �' fits'. $w '���r4'td-Xa a �� fix. 1 :, "'a l3r�W" ... sr f £c� .xG� u ,S ,d�"�. a"a7 . +<y x ,?',` t" ' � M) Commerce Bank ° xk xr i�y w trf�§a w„'a{$r n e.,rai .• Member FDICg y4Ki. ,,'+ r n n a' r ', 'fie k'�t.. ,ta,a e,r ._.,.77.1 .a ft., _. -Y.e§. Yv^, 2 � f +S' , a6yi,JP+ r ..__ 3d ..ii_.__ ____ 1-. � + z. G`k Z` -..{- f..`h&� V '' Lt 9..�*rt?' a�`4`"'�r :.r 4 v,` ` Hess Roise ( �a ?� M fi, kts !, miller dunwiddie « ,�r, y Historical Consultants .M1r�T ( i � s .yd�It��A. s),� X� $i+'F'3 Itn,,, i ,b1 N < -sw- o.vrf,v >e?':xm#7,3'y,1 Yd t w T a 4 i s� t u� -ifi5t$ >` xj 'P, i a v.rt 1 c ac' �'ii,. # zl a : it it - • :i41A41.1. S,.P sYpi ' v %'. '4:t;:.,;01 s ISt fi O i �� r� a 1 , . ,r, ,�®IO+1RS J se k4 u x { a; a �, .470✓^"c,*..0 ' tn� 3s'�h� PaL'�°^in e 44 n✓" + . s is ' ,as s:::.1*i4JJ $ a. mot. Ir�+jl >is>'tI r� "h t�.V�&a'P' w3 to bn r'[ g e + a tali rr." 4 wA � p�{r a - y P 7(3�S � � c o.,. �]31'Y,. `fir ...1..f e, � NfKr r�l §te I +jj 5 > Present n s,P4' �o �t^<Jr + t tj, �� -II I ' J d '� n ., .. .. �S s,.,c „ 4 'X Pdf � �� CAl k Ayl�t•Q T .;tJ aeserNTatic A ' 1si a '. 4 -`� / ,a ma �; l�l� �e � t lei iµ e ,4 K J �'. 4/` L E'. _z Q ' BLUE PLANET e �-0 F G F ks.� it M + C II JLL[ � ��r Y i k. �I ,r'i r { 4 ri e.mm o r , � J ;q. a .t '}i °� .- ,�, ,, , .-..:-.::-.,:,...,:lr• *i e Tr ta..�...r :x + � ' 'Aillg ce/o�'F� ion(FLARE) �y dr 3a.,u k x }"'e,y ie ai , >it Ib P " GREATER ��{ sv s_, : n� i.. S , �4 LITCHFIELD : > �a ' Fl teRC�O of[lie Revel-II-7m t r�: l ` �q' OPERA �� �� t° `y o "`� -R t�t� t, r � HOUSE Minnesota Chapter i ASSOCIATION �' p • :'4 A Tf Y Am tgnne of lea eP AtChkem ' ` ` bi1 tVl� G f' NEI�E ` r BLACK Box r" i ne° e, IRACes (• ' St CIou1 9-hstOrtcil r ,� �D 1'"(�1 \F it f IGi _1 I E 5 I N v -- r,RDEH pA 4 ;FSee�kc ra 1. 1. \ J. vrt.nt.t�an 5 T o a k, Ole ighbo rho oa Preservatwn 1 razz,- a Pe mn ° -+ „i o m Pe: A F' •ou+o eee m r¢}'�it 5 p_repe 4 } ��� n} t rys s �A ck Z.�4�X v n c.wy'r� � t � 3: ` �, o ""�5-e'taf,'t. ( 3k S-'�S%%.ii-k p t�*.. _ ° �y�.��jy rt� >�s , > 1 1�'>='''�I�,I' �. ASL�: ,SPON��Jk� 'ic;'1 i" e t Ri t M{' X 1 sal .m. ,r' - xr.. 4A• :C 1 National r1g - . .-.Window Associates Inc. 00._ 99 Page 3 Regular meeting of the Elk River Municipal Utilities Commission June 14,2011 4.4 Update on 2011 Purchase of a Directional Bore Rig Mark Fuchs discussed the operations and benefits of the new bore rig that was delivered in May. Two employees have been trained to work the machine. Vermeer has also been out to assist and train in the field. Discussion followed regarding the benefits of having this machinery in place. No action taken. 5.1 Joint Meeting with the Heritage Preservation Commission to Discuss the Jackson Street Water Tower Rebecca Haug,the Environmental Administrator for the City of Elk River,discussed the status of putting the Jackson Street Water Tower on the National Register. Discussion followed regarding the cost of maintaining the tower,the funds ERMU set aside for demolition,and the avenues available for funding the towers expenses now and in the future. Troy Adams stated that the cost to repair and paint the tower is approximately $400,000. Troy Adams also stated he does not think the ERMU water customers should be solely burdened with additional fees to save the tower. Steve Rohlf asked for approval to apply for grants and also stated he understands that if the cost is extreme and funds cannot be raised,the tower would not be saved. John Dietz said to go ahead and check on the grants available. John Dietz then asked Peter Beck if the City could purchase the tower after it was on the National Register. Given the mission of the City of Elk River is more in line with ownership of a historical asset, versus the utility mission of ownership of functioning assets, Peter Beck said he didn't think it would be an issue. Rebecca Haug asked for permission to post flyers to save the water tower. Consensus of the Commission was it was a great idea. 5.2 Review and Consider Proposed Utilities Organizational Restructuring In April 2009,the Utilities underwent organizational restructuring. At that time the supervisory and advisory responsibilities for the Water Superintendent were assigned to the Public Works Director for the City of Elk River. In early 2010,the Public Works Director resigned and the City of Elk River decided not to fill the position at that time. Troy Adams discussed the benefits of bringing the Water Department back in house. Troy Adams also requested a change in title due to the confusion of his current job title in the industry. Discussion followed. Daryl Thompson moved to change Troy Adams job title to Utilities Director until April 2012, and adopt the new staff organizational chart with the Water Department being under the Utilities Director with a probationary period thru April 2012. Al Nadeau seconded the motion. Motion carried 3-0. 101 Page 2 Regular meeting of the Elk River Municipal Utilities Commission May 8,2012 OPEN MIC No one appeared for open mic. 4.1 Verbal Update on Jackson Street Water Tower Rebecca Haug, Environmental Administrator for the City of Elk River,gave an update on the status of the Jackson Street Water Tower. Discussion followed regarding the condition of the lid on the water tower. Staff was directed to get bids on welding the lid on the tower and bring back for approval. 4.2 Update on Power Supply Options/Resource Planning In September 2008,Connexus Energy terminated the 10-year rolling"all requirements"power contract with Elk River Municipal Utilities(ERMU). ERMU Commission authorized entering into "Phase I"of a resource planning study in April of 2010,with a coalition which includes Central Minnesota Municipal Power Agency(CMMPA)as a participant. In September 2010, ERMU Commission authorized entering into"Phase 2"of a resource planning study which includes the release of a Request For Proposal (RFP). The RFP was issued on November 15, 2010. In May 2011, the ERMU Commission authorized entering into"Phase 2b"of the resource planning study which will include risk assessment of the proposals. In addition to working with the Resource Planning Coalition,staff continues to explore other power supply options. Troy Adams said over the last couple of months ERMU has talked about different options available for ERMU's wholesale power contract. Troy Adams introduced Jeff Peters, Director of Marketing and Development at Missouri River Energy Services(MRES)to give an overview of their agency. Discussion followed. 5.1 Review and Receive 2011 Financial Audit Audit Fieldwork was completed March 1st and 2nd by ERMU auditors, Abdo, Eick& Meyers (AEM). ERMU staff compiled the enclosed audit report this year,and AEM staff reviewed for approval and issuance of opinion letter. Andrew Berg of Abdo, Eick& Meyers reviewed the 2011 audit. Discussion followed. John Dietz thanked Andrew Berg and staff for doing a great job on the report. Al Nadeau moved to receive and file the 2011 Audit as presented. Daryl Thompson seconded the motion. Motion carried 3-0. 102 Page 3 Regular meeting of the Elk River Municipal Utilities Commission June 12,2012 5.2 Jackson Street Water Tower Repairs—Verbal At the May 15, 2012 ERMU Commission meeting staff was directed to get quotes on repairing the lid on the Jackson Street Water Tower. Bolton Menk has worked with ERMU on previous projects and is familiar with the Jackson Street Water Tower. They have informed ERMU that because of the way the ladder was affixed to the tower, the lid should be fine. Discussion followed. Consensus was to leave the tower as is. 5.3 Electric Service Territory Acquisition Options In 1974 Minnesota legislation established a municipal utility's right to grow with their city by acquiring electrical service territory as their city annexed additional area. This historic legislation was supported by both the municipal utilities as well as the cooperative electric utilities. Kayla Brennan of McGrahn Shea law firm discussed the process of acquiring electric service territory. Discussion followed. John Dietz said ERMU should start territory talks now, Troy Adams agreed. Daryl Thompson moved to support developing an offer to acquire remaining electric service territory within the city limits of Elk River. Al Nadeau seconded the motion. Motion carried 3-0. 6.0 OTHER BUSINESS 6.1 Staff Updates Troy Adams noted the MMPA invitation and if two or more commissioners were going a quorum notice would have to be posted. Troy Adams gave an update on the EPA RICE rule changes and the GRE annual meeting he recently attended. John Dietz asked Tom Sagstetter if he has talked to a lot of customers that are in the third tier water rate. Tom Sagstetter responded since the letters were sent he has not heard from anyone. John Dietz asked staff how the printing bids came out, Troy responded. 6.2 Set Date for Next Meeting The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday,July 17, 2012, at 3:30 p.m. 6.3 Closing of Meeting: "Meeting to be closed pursuant to MN Statute 13D.05, Subd. 3(c)(3) to develop or consider offers or counteroffers for the purchase or sale of real or personal property." 103