4.1. SR 01-18-2000~ity of
River
MEMORANDUM
Item #4.1.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Administrator
January 18, 2000
Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk
River Municipal Utilities Commission. At this January 18, 2000, City
Council meeting, John is scheduled to provide the council with an update on
December and January Utilities activities. Attached for your review are the
minutes from the January 11, 2000, Utilities Commission meeting.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
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ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
January 11, 2000
Elk River Utilities Offices
Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
StaffPresent: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert MeCarmey, Water Superintendent; David Berg, Water Superintendent
1. _Call meeting to. order at 4:00 P.M..Ianuary 11,2000
2. Consider Utilities Agenda
James Tralle moved to approve the Agenda, with the postponement of the
Election of officers for 2000 until the March 2000 meeting. George Zabee
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
George Zabee moved to approve the Consent Agenda as follows:
Designate First National Bank official depository for 2000
Designate Elk River Star News official newspaper for 2000
12-14-99 Minutes
December Check Register
Financials
James Tralle seconded the motion. Motion carried 3-0.
5.1 Update. 2 MW Proposed Gas Turbine Project for Power Plant
An economic analysis for the proposed 2000 kw Gas Turbine for the power
plant was discussed and reviewed. Initial indicatisns center on an approximate
payback of ten years for the Utilities. Initial inspection indicates that the machine
is in good condition with very few operating hours, and is a common engine with
readily available parts. Commission feels a ten year payback is too long; that a
five year payback would be feasible. John Dietz suggests bonding rather Than
equipment certificates.
George Zabee moved to authorize Staffto begin the bid process. John Dietz
seconded the motion. Motion carried 3-0.
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Page 2
Regular meeting of the El}: River Municipal Utilities Commission
Sanuary 11, 2000
5,2 U~date Proposed Landfill Gas Generation Project w/Sherburo.¢ County
The Proposed Landfill Gas Generation Project proposed arrangement was
reviewed, and a Financial Analysis was examined. Risks and benefits to both
the Utilities and to the County were considered. Consensus is to proceed with
the project.
5.3 Update King Avenue & Main Street Redevelonment
Bryan Adams updated the Commission on the discussion at the last HRA
meeting, advising that the First National Bank has made a more lucrative offer
than other interested parties for the purchase of the property. Commission
directed Staff to continue to monitor the redevelopment.
5.4 _Update GRE-C0nnexus Wholesale EiectricRate
Commission reviewed the Plan of action regarding, updating and modifying the
All Requirements Contract between the Elk River Municipal Utilities and
Connexus Energy. James Tralle noted that the Contract appeare to be fair and
equitable.
5.5 _~pdate Progress Well #6
Staff reviewed the difficulties in closing the Well #6 project, including additional
engineering costs in the metering and sump problems. Costs for the overage will
be split between the engineering firm and the Utilities. Total additional costs are
approximately $10,000.00.
6.1 Review and Consider Recommendations from Street Light Cgmmitte~
The need for a street light on the west side of Jackson Avenue at Sixth Street, due
to increased pedestrian traffic as a result of the boys and Girls Club opening was
discussed.
John Dietz moved to approve the additional street light on the west side of
Jackson Avenue. James Tralle seconded the motion. Motion carried 3-0.
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Page 3
Regular meeting of the Elk River Municipal Utilities Commission
.rarmary 11, 2000
6.2 Review_and Consider Bid Tabulation to Purchase Pick-up Truck
The 2000 Budget contains an allowance for the purchase of a ~/i ton 4X4
pick up truck, as an additional vehicle to our fleet, to be used in the Electric
Distribution Department. The bids were discussed and considered.
George Zabee moved to award the bid for a '/2 tort 4X4 pick up truck to Olivia
Chrysler, (State Bid) as low bidder. James Tralle seconded the motion. Motion
carried 3-0.
John Dietz requested that Staffpresent a list of vehicles and their use at the next
Commission meeting.
6.3 Review APPA Eleclric Rate Comparisons for Minnesota
Bryan Adams presented the 1998 APPA electric rate comparison survey for
Minnesota, with a statistical analysis of the information. It is noted that the
Elk River Municipal Utilities falls within the 3~ quartile of rates for all rate
classes,
John Dietz reported that the Mayor has requested an analysis of the monitoring charges
for the lift stations. Staff will respond.
The electrical outage that occurred on 1-11-00, as a result of an insulator failure on Great
River Energy's transmission line was discussed. Bryan Adams noted the excellent
response by the ERMU crews in restoring power to customers. Staff will further update
the Commission of the costs and repercussions of the outage at a future meeting.
The next meeting of the Elk River Municipal Utilities Commission will be Tuesday,
February 15, 2000.
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Page 4
Regular meetin§ of the Elk River Municipal Utilities Commission
January I 1,2000
James Tralle moved to adjourn the January 11, 2000 meeting of the Elk River Municipal
Utilities Commission. George Zabee seconded the motion. Motion carried 3-0.
. The January 11, 2000 meeting of the Elk River Municipal Utilities Commission
adjourned at 5:10 P.M.
Respectfully submitted,
Patricia Hemza
Office Manager