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3.0 ERMUSR 09-09-2003 ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION August 12, 2003 Members Present: John Dietz, President; Jerry Takle, Trustee Members Absent: James Tralle, Vice Chair Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water Superintendent; Patricia Hemza, Office Manager 1. Call meeting to order August 12, 2003 President John Dietz called the August 12, 2003 meeting to order. 2. Consider Utilities Agenda Staff updates will be discussed under Old Business. Jerry Takle moved to approve the Agenda for August 12, 2003, with the addition of staff updates. John Dietz seconded the motion. Motion carried 2-0. 3. Consider Consent Agenda Jerry Takle moved to approve the Consent Agenda as follows: July Check Register July 8, 2003 Minutes Financials John Dietz seconded the motion. Motion carried 2-0. Staff Up-dates Glenn Sundeen reported on the current re-builds in progress, and that once again, 40 new services were connected. David Berg reported that Elk River has been up-graded to a Class B operating plant by the Minnesota Department of Health, based on population, and connections. He further up-dated Commission on work in progress. Pat Hemza advised the Commission that rates for the long term disability insurance provided to the ERMU employees have been received. A comparison shows that Principal offers an excellent rate with the same benefits offered. John Dietz noted that an item such as the long term disability insurance should be a separate agenda item. Jerry Takle moved to accept the bid for long term disability insurance from Principal. John Dietz seconded the motion. Motion carried 2-0. Page 2 Regular meeting of the Elk River Municipal Utilities Commission August 12, 2003 5.1 Update—Well#8 Test wells were constructed at the location of Well#8 and Well #9. The ground formations at Well #8 proved to be of good water quality. The test Well #9, showed a water bearing gravel layer above the Mt. Simon Hinckley formation. Two production wells at Well #9 site are a good possibility. Bid tabulations will be presented to Commission at the September 2003 meeting, to construct Well #8, and construct the raw water line from Well #8 to treatment plant#7 for treatment. 5.2 Review Annual URGE Tests Urge tests were run on the 4 diesel generation units at our power plant. Bryan explained the Power Transaction Agreement with Great River Energy, including payment and terms of agreement. Commission directed Bryan to re-negotiate the agreement, which expires 10-31-03. Discussion continued concerning Unit #332, the 1948 550kw, black start Worthington unit. Bryan advised that the engine needs some major work, or should be retired. No action taken. 6.1 Review Schedule—2004 Budget The time line for the 2004 budget was reviewed, and agreeable with Commission and Staff. The proposed Travel & Training, and 10 Year Personnel Projections were presented, and discussed. The items were reviewed, with Staff responding to questions from the Commissioners. 6.2 Review Landscaping for Plant Commission had requested that Bryan collect costs for landscaping at the plant site. Sod, trees, shrubs, and sprinkler installation costs were presented, and discussed. Discussion of the project continued. John Dietz moved to approve landscaping for the plant site, at a cost to not exceed$15,000.00. Jerry Takle seconded the motion. Motion carried 2-0. Other Business No Other Business. The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be held September 9, 2003. President John Dietz adjourned the regular meeting of the Elk River Municipal Utilities Commission at 5:05 pm. Respectfully submitted, - c2.&e_e:vca_H/teig,a Patricia Hemza Office Manager