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4.1. SR 04-17-2000qty of iver MEMORANDUM Item #4.1. TO: FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City Administ~ '~ April 17, 2000 Utilities Commission Update Councilmember John Dietz is the City Council representative on the Elk River Municipal Utilities Commission. At this April 17, 2000, City Council meeting, John is scheduled to provide the council with an update on March and April Utilities activities. Attached for your review are the draft minutes from the April 11, 2000, Utilities Commission meeting and a memo from Bryan Adams regarding telecommunication antennas on water towers. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 APR-1Z-O0 OZ:Z1PMFROM-ELK RIVER UTILITIES 61Z4418agg T-??I P.01/03 F-3Z3 ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION APRIL 11, 2000 Members Present: John Dietz, President; George Zabee, Vice Chairman; James Tralle, Trustee Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water Superintendent; Patricia Hemza, Office Manager Others Present: Robin Buhmann, MN Rural Water Association; Steven McDonald, Abdo, Abdo, ]Sick & Meyer Other Employees Present: Art Gatchell, Lead Lineman; Wade Lovelettc, Line Foreman; Mark Fuchs, Lead Lineman I. C_ail meeting to order at 4:00 P.M. April 11, 2000 2. Consider Utilities Agenda James Tralle moved to approve the Agenda. George Zabec seconded the motion. Motion carried 3-0. 3. Con.~i_der Consent Agenda George Zabee moved to approve the Consent Agenda as follows: March check register 3-14-00 Minutes Financials James Tralle seconded the motion. Motion carried 3-0. 5.1 Publiclnformation Meeting on WHPp Robin Buhmann from Minnesota Rural Water Association (MRWA) appeared to answer any questions about the plan, and to explain the issues associated with the Well Head Protection Plan (WHPP). Ms. Buhmann reiterated time frames, the need for public education, and responded to comments by Staff'and Commission. APR-1Z-O0 OZ:Z1P~ FROM-ELK RIVER UTILITIES 81244180gO T-??I P.02/03 F-323 Page 2 Regular meeting of the Elk River Municipal Utilities Commission April 11, 2000 5.2 Review_and Consider 1999 Audit Steve McDonald, Abdo, Abdo, Eick & Meyers, appeared to discuss the 1999 Audit, the Management Letter and associated information. Discussion between Mr. McDonald and the Commissioners ensued. George Zabee moved to receive and approve the 1999 Audit from Abdo, Abdo, Eick and Meyers. James Tralle seconded the motion. Motion carried 3-0. 5.3 Review and Cons|¢ler Wind Generator Wheeling Contract Bryan Adams presented and explained the agreement between ERMU and Metro Win,d LLC to wheel power on our distribution system to the 69ky transmission system. The project was discussed between Commission and Staff. James Tralle moved to approve the agreement between Elk River Municipal Utilities and Metro Wind LLC, with minor word changes if required, to wheel power on our distribution system to the 69 kv transmission system. George Zabee seconded the motion. Motion carried 3-0. 5.4 Up-date GRE 1-5-2000 Transmi.~sion Failure Bryan Adams advised the Commission of two claims from customers who claim damage due to the January 5, 2000 Great River Energy transmission failure that damaged the Utilities distribution system. Attorney, Ron Black has drafted release forms to limit our or Great River Energy's exposure. Staff recommends compensating the two customers claims, and then resolve the dispute with Great River Energy. George Zabee moved to pay the two cash claims to our customers for $1229 to satisfy their concerns and claims, contingent upon the signing of the release forms, and then attempt to resolve the dispute with Great River Energy. James Tralle seconded the motion. Motion carried 3-0. APR-1Z-OO OZ:ZZPMFROM-ELK RIVER UTILITIES 61Z44180gB T-??I P.03/03 F-3Z3 Page 3 Regular meeting of the Elk River Municipal Utilities Commission April 11, 2000 6.1 Review Wage Request from ERMU employee~ Wade Lovelette, Line Foreman; Art Gatchell, Lead Lineman; and Mark Fuchs, Lead Lineman, appeared to present a Wage Increase Proposal. The results of the salary survey were presented and discussed. Further, the EmployeeMUtility shares of health insurance was discussed. George Zabee moved to approve a 3.21% increase for the line workers salaries, and to increase the employee share of health and dental premiums to 25%. James Tralle seconded the motion. Motion carried 3-0. Staff is directed to return to the Commission at the May Meeting, a proposal for the remaining ERMU employees. Other Business John Dietz up-dated the Commission on the Western Area Improvements Phase IV. The City Council is re-considering the original plans for the improvements. John Dietz and Staff discussed the request by Sprint for the installation of aerials on the Utility's water tower. Commission directed staff to research and review the prices of pickup trucks paid by the City of Elk River and the Elk River Municipal Utilities The next scheduled meeting of the Elk River Municipal Utilities Commission will be May 9, 2000 at 4:00 P.M. in the Elk River Municipal Utilities Office. James Tralle moved to adjourn the April 11, 2000 meeting. George Zabee seconded the motion, Motion carried 3-0. Thc April 11, 2000 meeting of the Elk River Municipal Utilities Commission adjourned at 5:25 P.M. Respectfully submitted, Patricia Hemza Office Manager ELK RIVER MUNICIPAL UTILITIES March 29th, 2000 322 King Avenue Elk River, Minnesota 55330 Phone (612) 441-2020 Fax (612) 441-8099 To: John Deitz From: Bryan Adams Subject: Telecommunication Antem~as on Water Towers As you are aware, Sprint desires to place a telecommunications antenna on one of our water towers. The issue was discussed at our July 9th, 1997 and March 14th, 2000 Elk River Municipal Utilities (ERMU) Commission meetings. I have been dealing with Philip Carlson, Sight Acquisition Specialist, with the Everest Group. Also attached is a letter dated March 17th, 2000 h'om David Huihui of the Everest Group addressing the same issue. There is no question that good cell phone communication is an attribute to Elk River. Current cell phone reception in this area is marginal. The question is how can we accommodate these companies-while preserving our interests. I have taken a strong stance to deny placing an aerial on our three active water towers for the following reasons: 1) The parties who have antennas ot~. the tower need access to their equipment, which means they need keys to the tower. ERMU will then loose control of who has access to the tower and loose the security of the water system. Access to the water system is obtained by roof hatches in the same area as the antennas. They also require a 15' by 15' space inside or outside the tower. We do not have adequate room for this. Both city and utility equipment are stored under the towers. 2) If we let one company use the tower for antennas, we must then allow access to all other telecommunication companies (AT&T, US West, Aerial, etc.). 3) The presence of antennas increase costs of maintenance on water towers. Cables running up the dry well make it more difficult to blast and paint around. The dry well is already a difficult area for painting systems. Also, water tight roof penetration must be added. Another source of maintenance and painting failure. 4) The City and Utilities are considering a GIS system for Elk River. A GIS base station would be required and the water towers provide an ideal location. Interference with an existing telecommunication signal may preclude this option. 5) Allowing third, parties to have access to the water towers will increase City/Utilities liability in case of an accident. Even though a tight indemnity clause can be incorporated in a lease agreement, the City/Utilities will still be part of any legal proceedings. 6) The $500/month lease payment is not nearly enough to offset the risks contained in item #'s 1-5, particularly item #1, at what price do we sacrifice security of the community's water system? We are also sensitive to aesthetics in Elk River. Elk River already has three mono poles to be used for telecommunication plus numerous radio towers in Northern Elk River. Opportunities to utilize these facilities also exist. I have taken the time to show Everest Group other possible areas in our community and offered the use of the two out of service water towers (Jackson Ave across from Fire Station, Water tower north of Cretex Concrete plant). Sprint was not interested in these other options either. CC: James Tralle George Zabee file THE EVEREST GROUP March 17, 2000 13065 Orono Parkway Elk River, MN 55330 Dear Mr. John Deitz: Mr. Deitz, my name is David Huihui and I am a telecommunications consultant working for The Everest Group in Minnesota. Our client is Sprint PCS and we are doing site acquisition, leasing, and zoning work for Sprint in some areas of Minnesota. As a consultant it is my responsibility to my client to make sure that no stone is left unturned in securing the best potential candidate for Sprints wireless operations. As you might already have heard, we are looking to lease land space near the Lake Orono Water Tower for the purpose of putting up a telecommunications tower. Our site acquisition agents have been speaking to various people at the City offices regarding leasing issues and potential land candidates. Contrary to what many people believe, telecommunications companies seriously consider the needs of zoning officials and other municipal authorities in the choice of their site candidates. I am writing this letter to you because I was informed that along with being a Council Member in the City of Elk River you sit on the board of directors for the Municipal Utilities District. Sprint is looking at building a new tower right next to the Lake Orono Water Tower because we were informed by our contact at the Municipal Utilities District that we could not'co-locate on the existing water tower. Our first preference is to be on the water tower. If we had to place a new tower next to the existing water tower we would have to build a structure higher than the water tower so as to reduce the attenuation of our radio signal by the proximity of the tower itself. We do not know what kind of municipal support we will get if we submit an application for a new tower next to an existing structure and this presents a problem. As I mentioned previously, we really try not to complicate matters for the municipal authorities in whose jurisdictions we place our communications facilities. We have every intention of being good neighbors. I respectfully submit this letter asking that you exercise your influence in the matter at hand. As a member of the Board of Directors of the Municipal Utilities District you can present our proposal of locating on the Lake Orono Water Tower to your fellow board members and thus help us avoid installing a structure that will have a more visible impact in the Elk River community. Let me assure you that all efforts have been made to avoid this area entirely. We have looked at the feasibility of other existing structures to within several miles of the Lake Orono Water Tower and have found that none will meet Sprint's radio frequency objectives. Let me assure you that business and monetary lease terms can be negotiated quickly if the Board will consider our antenna location proposal. At the present time, no negotiations can be performed at all because our contact with the Utilities District will not engage in the matter. I understand that Brian Adams has already denied our request to lease space on the water tower. However, you will understand that I have an obligation before my client and to the larger community of the citizens of the State of Minnesota of whom I am a member to boldly advance my proposal to you and to request that you take it into consideration. I will be happy to answer all questions you may have regarding our proposal and will submit to the Board's decision on the co-location issue without further argument - 2 - March 17, 2000 Sincerely, David M.K. Huihui Project Manager The Everest Group [STREET ADDRESS] · [CITY/STATE] · [ZIP/POSTAL CODE] PHONE: [PHONE NUMBER] · FAX: [FAX NUMBER]