6.8. SR 12-20-2004
Item # 6.8.
MEMORANDUM
TO: Mayor and City Council
FROM: Pat Klaers, City Administrator
DATE: December 20, 2004
SUBJECT: Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk River Municipal Utilities
Commission. At the December 20, 2004 City Council meeting, John is scheduled to provide the
Council with an update on Utilities activities. Attached are the draft minutes from the December 14,
2004 Utilities Commission meeting.
s: ICouncil\Pat1 Updates \ UtiIities.doc
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REGULAR MEETING OF THE
UTILITIES COMMISSION
December 14, 2004
Members Present: Jerry Takle, President; James Tralle, Vice Chair; John Dietz, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David
Berg, Water Superintendent; Panicia Hemza, Office Manager
Others Present: Pat KIaeIS, City Administrator
1. Call meetine: to order December 14. 2004
President Jerry Takle called the December 14, 2004, meeting to order.
2. Consider Utilities Al!eDda
James Tralle moved to approve the December 14, 2004, Utilities Agenda with the addition of
two requests for Street Lights. John Dietz seconded the motion.: Motion carried 3-0.
3. Consider Consent Ae:enda
John Dietz questioned the check to Automatic Systems. Staff responded it was for the
SCADA system to better monitor the water system.
James Tra11e moved to approve the Consent Agenda as follows:,
November Check Register
November 9,2004 Minutes
Financials
.Tolm Dietz seconded the motion. Motion canied 3-0.
5.1 Staff U D-dates
Bryans Adams informed the Commission that the rebate check for Salk School has been
delivered to Ron Bratlie oflSD #728. He then discussed the Miskie property development,
which will be called River Park, locared on the east side of Elk River. Commission was briefed on
the MMUA Bond Pool, and the class that was given to the employees on Monday from Protective
Services regarding safety and awareness.
Patricia Hemza info11J1ed the Commission of the successful hiring for the HR position, and
the Auditors have fini.hing their pre-audit on 12113/04. I
Glenn Sundeen reported on the status of the current electrical projects and the 28 new services
installed in the month of November. He added that there were no outages due to the high winds
this past week. :
David Berg relayed on the 4 new Security Systems sold, and the looping of water mains due
to recent residential and commercial developments.
5.2 Review and Consider Wholesale Electric Rate ,
Great River Energy electric wholesale rate was discussed. J"he new two tier rate structure
will affect the Elk River MWlicipal Utilities by approximately 2:52% or $240,246.00. No action
necessary. '
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R~ar meeting of1he Elk River Municipal Utilities CommissioIl
December 14, 2004
5.3 Review and Consider Water and Electric Retail Rates
The 2005 proposed retail rates were discussed. Because of the increase to our annual power
cost, staff is recommending a rate change in the electric and water retail rates as noted on the
attached tariff sheets.
Motion by James Tralle to approve the revised Elecnic and Water retail rates as stated on the
attached tariff sheets. John Dietz seconded the motion. Motion carried 3-0.
5.4 Review and Consider 2005 Budllet
The 2005 budget was reviewed. Future projections along with personnel projections were
again discussed. John Dietz asked why we had two pickups to purchase in 2005. Staff responded
that we just purchased one this year and we would correct the equipment needs projection to add
only one pickup in 2005.
Motion by James Tralle to approve the 2005 Budget with the revised elecnic equipment
needs. John Dietz seconded the motion. Motion carried 3-0.
5.5 Review Water HookuD Reauirements
When Municipal water and sewer are extended into an existing area, the City Council often
allows the existing properties two years to hookup to these services. The difficulty is tracking
these properties and getting them to hookup without being heavy handed. Bryan Adams apprised
the Commission of the results of the City Prosecutors surVey with other communities on their
procedures on water hookup. He indicated three options with the third most preferable. TIlis
option was to require connection to the municipal water system when the property was sold via an
affidavit filed with County Recorder. John Dietz asked ifwe had a list of the properties this
pertains to. Staff responded they do not at this time but will compile one and file it with the
County.
Motion by Jolm Dietz to modify our policy and require affected properties to hookup to
Municipal Water when property is sold but continue to encourage these properties to hookup in
the meantime. James Tralle seconded the motion. Motion carried 3-0.
6.1 Review and Consider 51h Street Reconstrnction Proiect
The 2005 street reconsuuctioD project was discussed which includes replacing selected
sections of water main duruJg the street reconsuuction period. The 4tl, Street project completed in
2003 went well with the water service line upgrades. This project will be handled the same way
with letters sent to homeowners, inspecting their existing water service lines, and replacing if
needed.
Non-<:opper water service lines will be replaced to the curb box at utility expense and owner will
be encouraged to replace remainil1g non-copper service line at customers expense.
Motion by James Tralle to participate in the Elk River 2005 street reconstIUCtion project.
John Dietz seconded the motion. Motion carried 3-0.
6.2 Review and Consider CIP Rebate for Sherburne County
Sherburne County has applied for a $21,531.60 rebate for the Justice Center addition. Vance
Zehringer has contacted ORE and Connexus and they indicated there is adequate funds in the
ORE CIP pool and funds will be reallocated to Elk River Municipal Utilities 10 process the rebate
this year.
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ReguJar meeting of the Elk River MUDicipal Utilities Commission
D~cember 14, 2004
Motion by James TraIle to approve the rebate IO Sherburne County for $21,531.60. John Dietz
seconded the motion. Motion carried 3-0.
6.3 Review and Consider Two New Street LiI1:hts
Bryan Adams presented the commission with a request for a street light to be installed on
2051h Avenue near the cul-de-sac, on a pole by AME and Plaisted Companies.
Motion by James TraIle to install a street light on existing pole on 205'" Avenue near
cul-de-sac. John Dietz seconded the motion. Motion carried 3-0.
Another request by bomeownets who signed a petition was discussed. This street light is on
Auburn Street between 193n1 Avenue and 195111 Street The type oflight being requested was
discussed. It was the consensus that we would not utilize cut off light design but would continue
installing our standard traditionaire lighting style.
Motion by James TraIle to install amid-block light on Auburn Street between 193111 Avenue
and 1951h Street per our light specifications. John Dietz seconded the motion. Motion carried 3-0.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River MUDicipal Utilities Commission will be
Tuesday, January 11,2005.
Presidem Jerry Takle adjourned the regular meeting of the Elk River MUDicipal Utilities
Commission at 5: 15 p.m.