4.1. SR 03-20-2000~ity of
iver
MEMORANDUM
Item #4.1.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Administrator
March 20, 2000
Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk
River Municipal Utilities Commission. At this March 20, 2000, City Council
meeting, John is scheduled to provide the council with an update on February
and March Utilities activities. Attached for your review are the draft
minutes from the February 15, and March 14, 2000, Utilities Commission
meetings.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
FEB-I?-O0 OB:4?AM FROM-ELK RIVER UTILITIES 612441Bogg T-418 P.01/03 F-S4Z
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF TI'IE
UTILITIES COMMISSION
February 15, 2000
Elk River Utilities Offices
Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCarmey, Water Superintendent; David Berg, Water Superintendent; Parricia
Hemza, Office Manager
1. Call mee0n_g to order at 4:00 P.M, Febrpary 15. 2000
2. Consider ~tilities A~enda
John Dietz moved to approve thc Agenda, with one additional item by Bryan
Adams under Other Business. George Zabee seconded the motion. Motion
carried 3-0.
3. Consider C:.onsent Aeenda
1ohn Dietz moved to approve the Agenda as follows: Check Register
Sales and Production Reports
5.1 Review Vehif;.ie and Equi~r~ent L!sLS.
Commission reviewed the vehicle and equipment lists with Staff. No action
necessary.
5.2 Review Moni~0rin~ Charges for Sewer Lift Stations
Bryan Adams reviewed the Monitoring Charges for the Sower Lift Stations with
the Commission. John Dietz directed Bryan to forward the information to the
City.
FEB-I?-OO 08:4TAM FROIA'"ELK RIVER UTILITIES 6124416099 T-418 P.02/03 F-542
Page 2
Regular meeting of'the Elk River Municipal Utilities Commission
February 15, 2000
6.1 Review and Con.~ider Bid Tabulation for Electric Wire Bids
On February 9, 2000, bids were received to supply and deliver approximately
132,$00 feet of electric wire for 2000 construction projects. Sta£fprepared a
bid tabulation for Commission review, along with recommendations.
~'ohn Dietz moved TO approve the purchase as follows:
7500 LF 500 MCM Border States
40000 LF 4/0 URD Cable
60000 LF l/0 URD Cable
10000 LF Brenau 600 V Cable
15000 LF Converse 600 V Cable
10000 LT Sweetbrair 600 V Cable
Burmeister Electric
Wesco
Wesco
Wesco
Wesco
to eliminate bids from King Wire and Resco, because of qualified bids,
fluctuations in their quoted prices, time restraints and non-conformance
to specifications.
George Zabee seconded the motion. Motion carried 3-0.
6.2 Review Ann I ! Report tO CityCo~mcil
Bryan Adams presented the 1999 Annual Report to City Council for Commission
review and consideration. Specific major accomplishments of 1999 and goals for
2000 were reviewed.
6.3 Review Revised ,gafetv Manual
Bryan Adams presented to Commission the revised and up-dated Safety Manual.
Discussion followed with comments from Glenn Sundeen and Bryan Adams.
6.4 Review Air Conditioning l,oad_Control
A report prepared by Vance Zehringer, was reviewed and discussed. The report
contained a Situation Ar:alysis addressing the air conditioning program, with
options to be considered. After lengthy consideration, B~an Adams suggested
that two years of education for consumers including advertising, brochures and
bill stuffers be implemented, with promotion of heat pumps. At the end of two
years the situation will again be reviewed.
~EB-I?-O0 06:46A~F~O~ELK ~IVER UTILITIES 612441609D T-418 ~.03/03 F-54Z
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
February 15, 2000
6.5 Review APPA Campaign for Real Competition!
American Public Power Association has requested a $500.00 special assessment
the Campaign for Real Competition, an effort to address market power issues.
Staff recommends supporting the program. James Tralle added his support.
lames Tralle moved to approve payment of the $500.00 special assessment to
American Public Power Association. George Zabee seconded the motion.
Motion carried 3-0.
Other Busirl¢$$
Bryan Adams presented a Draft of Amendment to All Kequirements Contract and
Schedule V in regard to our purchased power. Terms and conditions were discussed.
Action will be taken at a future meeting when the Contract is finalized.
James Tralle presented a gift to Robert McCartney, recognizing his retirement after
nearly 33 years of loyal service to the Elk Kiver Municipal Utilities. Congratulations
followed, noting that his presence will be missed by the Utilities.
The next scheduled meeting of the Elk River Municipal Utilities Commission ,,viii be
March 14, 2000.
~'ames Tralle moved to adjourn the February 15, 2000 meeting of the Elk River
Municipal Utilities Commission. George Zabee seconded the motion. Motion
tan'led 3-0.
The February 15, 2000 meeting of the Elk River Municipal Utilities Commission
adjourned at 5:10 P.M.
Respectfully submitted,
Patricia Hemza
Office Manager
IdAR-16-OO og:4BAM FROM-ELK RIVER UTILITIES 61244180gg T-sgz P.OZ/05 F-g45
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF TIlE
UTILITIES COMMISSION
MARCH 14, 2000
Members Present: Prcsidem, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
Staff Present: Bryan Adams, General Manager; David Berg, Water Superintendent;
Patricia Hemza, Office Manager
1. Call meetin~ to order at 4:00 P.M. March 14. 2000
2. Consider Utilities A~enda
John Dietz moved to approve the Agenda with two additions from Bryan Adams,
and one addition from James Tralle, to be discussed under Other Business.
2A. Election of ot'ficers t'or 2000
Motion by George Zabee, seconded by John Dietz to nominate the following
slate of officers for 2000.
3ohn Dietz President
George Zabee Vice Chairman
James Tralle Trustee
Motion carried 3-0.
John Dietz, as 2000 President of the Elk River Municipal Utilities Commission
took over the chair of the 3-14-2000 meeting.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
February check register, with one correction
Sales and Production Reports
Approval of February 15, 2000 minutes
George Zabee seconded the motion. Motion carried 3-0.
5.1 Review and approve Connexus Amendment to Electric Service Agreement
Bryan Adams reviewed the Amendment to All Requirements Contract between
Connexus Energy and Elk River Municipal Utilities, explaining that the document
has been reviewed by FERC attorney, Robert McDiarmid. He further explahaed
how the rate and monthly power bills will effect the Utilities.
MAR-16-O0 Og:4BAM FROM-ELK RIVER UTILITIES 6124418099 T-SgZ P.03/05 F-945
Page 2
Regular meeting of the Elk River Municipa! Utilities Commission
March 14, 2000
James Trallc moved to authorize the execution of ~he Amendment to All
Requirements Contract between Connexus Energy and Elk River Municipal
Utilities. George Zabee seconded the motion. Motion carried 3-0.
Staff is further authorized to review electric rates impacted by the Amendment
with R.W.Beck.
5.2 Review and A~tth0riz¢ portions of Wellhead Protection Plan
Bryan Adams reviewed the Wellhead Protection Plan with the Commission,
regarding the procedures for implementation. Staff responded to questions by
Commissioners.
James Tralle moved to accept the WHPA, DWSHA, and Vulnerability
Assessment, and to authorize the mailing of the following items to Sherbume
County and to the City of Elk River.
1. Map of the Wellhead Protection Area delineation (WHPA)
2. Map of the Drinking Water Supply Management Area boundary
(DWSMA)
3. Vulnerability Assessment
George Zabee seconded the motion. Motion carried 3-0.
James Tralle moved that a Public Information Meeting for the general public
regarding the WHPA, DWSMA and Vulnerability Assessment at the next
regularly scheduled meeting of the Elk River Municipal Utilities Commission,
April 11, 2000. George Zabee seconded the motion. Motion carried 3-0.
6.1 Review Western Area Feasibility Study
John Dietz reported that the City of Elk River, at their Council meeting of
March 13, 2000 approved Western Area Improvements Phase IV. Bryan
further reviewed the Study and the f'unding with the Commission, for the
l~lk River Municipal Utilities portion of the Watermain on the north side of
Highway 10. Financing of construction and associated engineering costs were
discussed.
i~R-16-O0 09:48A~ FROM-ELK RIVER UTILITIES 6124418099 T-SgZ P.04/06 F-946
Page 3
Regular meeting of the Elk River Municipal Utilities commission
March 14, 2000
James Tralle moved to approve payment by the E]k River Municipal Utilities for
the assumed construction costs of the project, estimated at $94,500.00. George
Zabee seconded the motion. Motion carried 2-0. John Dietz abstained.
6.2 Revigw anfl Consider Electric Territory_ Acquisition for 2000
The 2000 Budget of the Elk River Municipal Utilities contains $350,000 for the
acquisition of Areas 13 and 14. Bryan Adams reviewed policies and added that
the Utilities will be required to install approximately 3400 LF of underground at a
cost of $40,000, which was not budgeted. Commissioners asked if overhead
would be a possibility, and Bryan Adams responded why underground is the
preferred option for this application.
George Zabee moved to approve the purchase of Areas 13 and 14 for territory
acquisition, and further to approve the installation of the necessary underground
on t'he south side of County Road 33, at an approximate cost of $40,000. James
Tralle seconded the motion. Motion carried 3-0.
6.3 Discuss Request bv Sprint for Aerial _On/By Water tower
Sprint approached the Commission in July 1997 and in 2000 approached John
Dietz regarding the installation of aerials on our water tower. Commission and
Staff considered the ramifications of approving the aerial installation, noting that
liability, safety and security would be compromised by someone other t'han
authorized staff having direct access to our tower. Sprint had offered $500.00 per
month for the access.
The consensus of the Commission is non-interest in allowing the water tower to
be used by Sprint. No action taken.
Other
Staff advised Commission of the water main break in IndusTrial Park, which drained the
Hillside tower on March 3, 2000. David Berg explained how the problem was located
and what was done to rectify the situation.
Bryan Adams noted That The City Street Department has asked the Utilities if there would
be haterest in the purchase of their building, if it should become available in the future..
Consensus is that it would not be a feasible plan.
MAR-16-O0 Og:4gAM FROM-ELK RIVER UTILITIES 61Z4418Ogg T-SgZ P.05/05 F-945
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
March 14, 2000
James Tralle noted that he noticed tents and campers on the river by the Power Plant,
which he asked the Elk River Police Department to investigate. No pernaission had been
given and the tents and campers left the site.
The next scheduled meeting of the Elk River Municipal Utilities Commission will be
April 1 l, 2000. A Public Hearing regarding Wellhead Protection will be held at the
beginning of the meeting at 4:00 P.M.
James Tralle moved to adjourn the March 14, 2000 meeting. George Zabee seconded
the motion. Motion carried 3-0.
The March 14, 2000 meeting of the Elk River Municipal Utilities Commission adjourned
at 5:20 P.M.
Respectfully submitted,
Patricia Hemza
Office Manager