5.1. SR 12-17-2001TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and City Council
Pat Klaers, City Administrator
December 17, 200 I
Utilities Commission Update
Item 5.1.
Councilmember John Dietz is the City Council representative on thc Elk River Municipal
Utilities Commission. At this December 17, 2001, City Council meeting, John is scheduled
to provide the Council with an update on Utilities activities. Attached for your review is the
draft minutes from the December 11, 2001, Utilities Commission meeting.
lO:37AM
FROM-ERMU
763-441-8099
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF TIlE
UTILITIES COMMISSION
T-044 P.O017009 F-38~
December Il, 2001
Members Present: George Zabee, President; John Diem, Trustee
Members Absent: James Tralle, Vice Chair
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Super/ntendent; David Berg, Water
Superintendent; Patricia Hemza, Office Manager
Others Present: Pat Klaers, City Administrator, Tushie Montgomery Architect Representatives
1. Call meeting to order. December l 1, 2001
2. Consider Utilities Aeenda
John Dietz moved to approve the Utilities Agenda for December 11,2001. George Zabee seconded
the motion. Motion carried 2-0.
3. Consider_Consent Agenda
John Dietz moved to approve the Consent Agenda as follows:
November Check Register
Financials
November 13, 2001 Minutes
George Zabee seconded the motion. Motion carried 2-0.
5.1 Review & Consider Load Management Rates
Staff reviewed a chart reflecting the wholesale rates and proposed retail rates for Energy
Management, published by Great River Energy. The proposed increase in retail rates reflects a 1 mil
increase from the current rate, which Staffrecommends adopting. Smffupdated the Commission on the
cycled air conditioning progress.
John Dietz moved to approve a I mil increase for the Energy Management rates. George Zabee
seconded the motion. Motion canfed 2-0.
5.2 Well Head Protection Plan Undate
The Wellhead Protection Plan history was reviewed. The last portion of the plan was recently
completed by staff, and submitted to the MDH for preliminary comments. Commission and Staff discussed
the plan, with special attention to Chapter 5, "Objectives and Plans of Action". No suggested changes were
made, and Staff was directed to proceed with the approval process.
DEC-13-2001 IO:ASAM FROM-ERMU T63-441-8098 T-044 P.OD2/O0~ F-38Z
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
December 11, 2001
5.3 Administration Buildin~ Update
Pat Klaers and representatives 'from Tushie Montgomery Architects appeared to discuss the plans for
the City Hall expansion, including the time frames. Pat Klaers advised that the City Council is prepared to
make decisions on the time frames for the planning on December 18, 2001. The City Council would like to
be advised on the plans of the Utility by that time.
The Architect representatives, and Pat Klaers presented plans with three options the Cit3(. is
considering, with Utility space included in ail three plans. A proposal from the City's architect to do the
necessary architectural/engineering work for the Utilities' portion of the project.
George Zabee questioned the cost estimates, and the bidding process. He further added that he feels
flue present location of the Utilities is adequate for at least five years, and asks if the area could be made
availabIe in the future. The architects replied favorably, noting that construction of the Utility portion would
be the final stage, with completion later in 2004. ~lohn Dietz approves of the Utility portion being at the tail
end of the construction stage. It would guarantee that the Utility would be able to take advantage of the
present bidding system, with cost savings. George Zabee is not prepared to make a decision at this meeting,
preferring to postpone finalization until all Conunissioners are present.
It was decided to call a Special Meeting for Thursday, December 20, 2001 to discuss the option of
the Utilities being included in the City Hail expansion.
5.4 L. andfill Gas Project Updat~
The remaining contract issues between Sherbume County, Waste Management, and ER_MU have
tentatively been resolved, as well as the engineering drawing review. Staffpresented the Commission with
spread sheets explaining the revenues, operation, and maintenance cost portions of the project. Staff
recommends that Attorney Ron Black review each agreement with the Commission at a future meeting.
5.5 Substation North Connection, Agreement
The Connection Agreement between GRE and ERMU was presented for consideration and review by
Commission. The terms and conditions of the agreement are similar to previous Connection Agreements
except that in this case, GRE will pay for their transmission modifications and metering. A savings of
$250,000 will be realized by the ER.MU. At the same time, GRE would like to purchase the metering for
station 14 and sub bank 1 & 2 along with 69 Ky switch at west sub bank 1, at approximately $21,500.
The time frames for bidding, construction, and completion were discussed. Completion is anticipated
in late Summer, 2002.
George Zabee moved to authorize Staff to execute the Connection Agreement between GKE and Elk
River Municipal Utilities. John Dietz seconded the motion. Motion carried 2-0.
6.1 Review & Consider Policy, C. hange for Budget Billin~
The Minnesota Energy Security & Reliability Act will in 2002 require utilities to provide a customer
budget billing plan. To comply with this requirement, Staff is proposing to add the Budget Helper Plan
Section 13 of our Meter Deposit & Related Services Policy.
DEC-1~-ZO0] 10:38AM FROM-ERMU ?$3-441-8088 T-044 P.OO~/O03 F-~8~
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
December 11, 2001
John Dietz moved to add the Budget Helper Plan, as Section 13 of the EKMU Meter Deposit &
Related Services Policy. George Zabee seconded the motion. Motion carried 2-0/
6.2 MMUA Presentation
Withdrawn to a future meeting.
6.3 Street Light Request
The Street Lighting committee has received a request for a street light to be erected at an intersection
on County Road 1, and is recommending installation.
George Zabee moved to install a street light at Upland/County Road 1. John Dietz seconded the
motion. Motion carried 2-0.
6.4 Christian Missionary Alliance WAC Fee
A request from Robb Kirk-patrick, Alliance Christian Academy for relief from payment of an invoice
for WAC fees for the Academy. Commission and Staff discussed the request. It was the consensus that the
Alliance Christian Academy must be treated the same as other customers of the Utility.
John Dietz moved to deny the request by Ckrisfian Missionary Alliance for release from paying the
WAC fees that were billed on August 31, 2001. George Zabee seconded the motion. Motion carried 2-0.
Other Business
John Dietz confm'ned that James Tralle has been approved re-appointed to the Elk River Municipal
Utilities Commission.
Bryan Adams advised the Commission that there is a problem with water treatment at Well #3. Staff
is authorized to proceed with correction of the problem.
John Dietz discussed the 2003 pavement removal/replacement, regarding the impact upon the
Utilities.
A Special Meeting is called for December 20, 2001. The next regularly scheduled meeting of the Elk
River Municipal Utilities Commission will be January 15, 2002.
Adjournment
President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:20 PM.
Respectfully submitted,
Patricia Hemza
Office mauager