4.3. SR 12-21-1998ity of
iver
TO:
FROM:
DATE:
SUBJECT:
Item #4.3.
MEMORANDUM
Mayor & City Council
Pat Klaers, City Admi~tor
December 21, 1998 [~
Utilities Commission Update
Councilmember John Dietz is our city representative on the Elk River
Municipal Utilities Commission. At this December 21, 1998, City Council
meeting, John is scheduled to provide the Council with an update on
November and December Utilities activities. Attached for your review are
the draft December 8, 1998, Utilities Commission minutes.
At the December 8, 1998, Utilities meeting a general discussion took place
regarding the east Elk River public improvement project. The funding
shortage in the water utility component of the project was reviewed. Also
discussed was the cash flow issue for the water utility component of the
project ff some of the assessments are put into green acres. (Additionally, the
cost for capital improvements for the electric component of the east Elk River
project was presented by General Manager Bryan Adams) No commitment
by the Utilities Commission on funding the water shortage was made and the
commission agreed to further discuss the issue at its January meeting.
The next regular Commission meeting is scheduled for Tuesday, January 12,
1999, at 4:00 p.m. at the Utilities office.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
DECEMBER 8, 1998
Members Present: President, George Zabee; Vice Chairman, James Tralle; Trustee, John
Dietz
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCartney, Water Superintendent, Patricia Hemza, Office Manager
Others Present: Pat Klaers, City Administrator; Lori Johnson, Assistant City
Administrator
1. Call meeting to order at 4:00 P.M. December 8, 1998
2. Consider Utilities Agenda
James Tralle moved to approve the Utilities Agenda as presented. John Dietz
seconded the motion. Motion carried 3-0.
3. *Consider Consent Agenda
James Tralle moved to approve the consent Agenda as follows:
11-9-98 Special Meeting Minutes
11-10-98 Minutes
November Check Register
Financials
John Dietz seconded the motion. Motion carried 3-0
5.1 Review Water and Electric Rates for 1999
Staff reviewed the present Water and Electric Rates with the Commission, along
with an analysis of the rates and the Demand Customer Load Factor and Bill
comparisons for customers. Rates appear to be sufficient at this time and no
changes are recommended.
James Tralle suggests that the Commission and Staff study the Commercial
electrical installation/connection fees. Discussion followed.
Rates will further be discussed at the January, 1999 meeting, when the Utilities
has received purchased power costs from Connexus/UPA for 1999.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
December 8, 1998
5.5 Up-date on Eastern Area Project
Pat Klaers, City Administrator and Lori Johnson, Assistant City Administrator
appeared to discuss the Project with the Commission. Pat Klaers discussed his
memo to the Mayor and City Council, as well as the funding of the project and
the bid results. Pat Klaers asked for a Utility commitment in the form of a
motion stating the limit the Water Utility will fund the $800,000.00 shortfall.
The possibility of using TIF monies to fund the Water and Electric shortfalls
was also discussed.
Further discussion followed, with Bryan Adams commenting that the Electric is
a large part of the Eastern Area Development, which also contains a large
shortfall, and he does not feel that it has been addressed.
The Elk River Utilities Commission will consider action in January, 1999 on the
amount the Water Utility will fund the shortfall.
5.2 Review and adopt NSF Check Policy
Present policy dictates that bills are due on the 15t~ of each month. Any account
not paid at that time receives a penalty. Occasionally a payment due on the 15~
will be paid with a check that becomes NSF.
James Tralle moved to adopt a policy stated: Any check marked NSF (non-
sufficient funds) that has not been resolved by the due date, given in payment
for services due on the 15th of the month, shall be imposed a $20.00 charge,
and assessed the penalty of 10%.
5.3 Up-date proposed Gas Turbine Pro_iect
Bryan Adams up-dated the Commission on the progress of the Gas Turbine
Project. The site survey is being completed, a financial analysis is in progress by
UPA and Springsted is running different payment schedules based upon
different assumptions. It is recommended that the Utilities use a designated
financial and legal team.
Commission and Staff continued discussion of the project with several
scenarios discussed.
Page 3
Regular Meeting of the Elk River Municipal Utilities
December 8, 1999
James Tralle moved to use Jim O'Meara ofBriggs & Morgan as Bond
Council, Andy Shea of McGrann, Shea, Franzen, Carnival, Straughn and
Lamb as Legal Advisor, David McGillvary of Springsted as Bond Advisor,
and Solomon Smith Barney as Bond Underwriters. John Dietz seconded the
motion. Motion carried 3-0.
5.4 Review and adopt LED Signal Light Proposal
City Engineer, Terry Maurer solicited and received proposals to furnish and
install Emergency Vehicle Preemption (EVP) system and LED signal lights
at twelve intersections in Elk River. A Cooperative Agreement with Minnesota
Department of Transportation (MNDOT) assures the cost sharing in the project.
James Tralle moved to approve authorization to proceed with the LED Signal
Light Project. John Dietz seconded the motion. Motion carried 3-0.
Other Business
There was no other business.
James Tralle moved to adjourn the December 8, 1998 meeting of the Elk River
Municipal Utilities Commission. John Dietz seconded the motion. Motion carried 3-0.
The meeting of the Elk River Utilities Commission adjourned at 5:25 P.M.
The next scheduled meeting of the Elk River Utilities Commission will be
January 12, 1999.
Respectfully submitted,
Patricia Hemza
Office Manager