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4.3. SR 12-18-2000 r~1 -\j ( ~ . City of ~ Elk Item #4.3. MEMORANDUM TO: Mayor & City Council FROM: Pat Klaers, City Administrator DATE: December 18, 2000 SUBJECT: Utilities Commission Update Councilmember John Dietz is the City Council representative on the Elk River Municipal Utilities Commission. At this December 18, 2000, 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 minutes from the December 12, 2000, Utilities Commission meeting. . An extensive discussion took place at the last commission meeting on sites for the east Elk River tower (and well) and this topic is on tonight's (12/18/00) City Council agenda. . 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone (763) 441-7420 · Fax (763) 441-7425 DEC-14-00 02:42PM FROM-ELK RIVER UTILITIES 6124418099 T-114 P.Ol/06 F-332 . ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION December 12, 2000 Elk River Utilities Offices 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: Pat Klaers, City Administrator; Michele McPherson, Director of Planning; Dave Anderson, Parks and Recreation 1. Call meetingto order at 4:00 p.M. December 12. 2000 2. C~msider Utilities A2enda Bryan Adams will have one additional item regarding an Economic Development request of the Elk River Utilities, to be discussed under Other Business. James Tralle moved to approve the Utilities Agenda for December 12,2000, 'With the addition of one em, to be discussed under Other Business. George Zabee seconded the motion. Motion carried 3-0. 3. C.onsider Consent Arenda James TraUe moved to approve the Consent Agenda as follows: November Check Register Financials Approval of the November 14,2000 Minutes George Zabee seconded the motion. Motion carried 3.0. 5.1 Update on location for 'Veil #7. and Water Tower Bryan Adams updated the Commission regarding the locanonofWell #7, and proposed \Vater Tower. The City Council, on November 20,2000, approved the location of Well #7, to be constructed at the NE comer orco. Rd. 13, and the new Tyler St. on the previously owned George Deschenes property, and the Water Tower to be located in the Trott Brook Development Park. The following morning an objection was raised by Mr. Don Patton, of D.R. Horton regarding the Water Tower Site. The City Council elected to send the issue back to the Park and Recreation Commission for reconsideration. Commission reviewed the letter from D.R. Horton, Inc., dated November 20, 2000, a drawing reflecting 8 locations considered for a water tower site, along with the pros and cons for each site. . OEC-14-00 02:42PM FROM-ELK RIVER UTILITIES 6124418099 T-114 P.02/06 F-332 ~ge2 lar meeting of the Elk River Municipal Utilities Commission . ecember 12, 2000 Bryan Adams reiterated the opinion of the Utility Staff, that a satisfactory case has been presented regarding the Trott Brook Park site, or the Hillside Park Site. They are the best sites financially, and hydraulically. Further, it was noted that the Park and Recreation Commission originally had agreed on the Trott Brook Park site. John Dietz explained the City Council's consideration ofD.R. Horton;s position, noting that they did not feel they had been properly notified of the possibility of a water tower being built on that site. George Zabee does understand the concern by D.R Horton, but does not understand their view regarding the value of the homes that will be built in that area versus existing less expensive homes. John Dietz stated that City Council approved the Trott Brook Park site, because they thought that D.R. Horton had been notified. Pat Klaers offered that D.R. HoTton expected more formality in the information ofthe proposed tower site. Pat Klaers also responded that the Utilities has been offered the Deschenes property as a site, and that it is already o\VUed by the City, and is not a park. Bryan responded to Pat Klaers inquiry about further clarification of the water pressure decrease at that site. John Dietz asks if the well could be put in Hillside Park, and the tower on the Deschenes property, citing Teny Mauer's calculations. Bryan noted that his calculations differ from those of the City Engineer, due to different design assumptions. Bryan Adams offered his opinion that quality services at reasonable prices, technically sound construction, and good risk management would be met at the Trott Brook Park site. aces Tralle asked ifD.R. HoTton would object to Hillside, and if it was a reality that D.R. HoTton would bave to build less expensive homes because of the tower. Pat Klaers said the Deschenes property is politically the best site for a tower, even if it is not as good financially. James Tralle further questions the fInancial responsibility of a tower site, with specific regard to the Black Property. Dave Anderson, speaking for the Park and Recreation Commission stated that the Park and Recreation are not happy with the Trott Brook Park site, and feels the Hillside Park area would be better. He also states that they feel that a water tower on the Trott Brook Park site would be ludicrous, and aesthetically unappealing. Dave Anderson does not feel that there is any rush to build the tower at this time. He also feels that further searching for a site would be advisable. Dave added that he feels the approval of the Trott Brook Park site was a boondoggle deal. James Tralle asked Staff if the tower construction could be postponed, Pat Klaers asked Bryan Adams if an anticipated wet summer could delay the tower and well need. Bryan Adams responded that if a dry summer occurred, the water system could have difficulty meeting the demands. The possibility of stringently enforced sprinkling bans would have to be considered, as well as other measures to force conservation. John Dietz asked about the possibility of any alternatives offered by D.R.Horton. Dave Anderson said he is under the impression that the Black property could be dealt with immediately. Bryan Adams responded by saying that ultimately all liability falls to the Utility and the tower would be more expensive. George Zabee feels more attention needs to be paid to future probabilities of expansion. 10hn Diez noted that the Deschenes property had not been presented to the City Council at the time of approval of the Trott Brook Park site. Bryan Adams again replied that the Utility is responsible for reliable and competent services to customers. . DEC-14-00 02:43PM FROM-ELK RIVER UTILITIES 6124418099 T-114 P.03/06 F-332 4ge3 gular meeting of the Elk River Municipal Utilities Commission ecember 12,2000 John Dietz asked the Commissioners what action they would like to take, so it can be said that they have recommended the best option for all customers. George Zabee states that he is not against purchasing propeny for a tower site, rather than using park or City owned land. George Zabee moves to approve site 3a, the property in NE Comer Hillside City Park, (south of driveway on high ground), then to purchase site 6, SE Corner of Tyler and County Road 12. Discussion of the Black site followed, with Michele McPherson noting that the property is 1.6 acres. Bryan noted that there are high pressure natural gas lines on that area. He also advises that soil borings are being done next week for the NE Comer Hillside Park (north of driveway on lower ground), and that if soil borings were to be done on the Deschenes property, it would probably take about thirty days. When asked which other sites he would recommend, Bryan responded that sites 3, S, and 8 are the possibilities. George Zabee rescinds his motion. George Zabee moves to recommend 3b, NE Corner Hillside Park (noI1h of driveway on lower ground) for the tower site. Motion died for lack of second. &es TralIe moved to select site #6, as a primary water tower site, (SE Comer of Tyler & County Rd 12). John Dietz seconded the motion. The question of price on the Black property was discussed. Bryan Adams said that the tower and property couldcost approximately $200,000 more than the originally discussed plan. Discussion of the fmancial, liability, and time frames followed. George Zabee said that no bids could be allowed until a site is secured. James Tralle asks Bryan Adams if Park sites would not be available, would Bryan prefer site 6 or 7. Bryan replied that he would prefer site 6. John Dietz asks again for discussion of site 8, and why it cannot be used. Bryan Adams advises the Commission that if a tower cannot be built in a timely fashion, that well #7 should be commenced without delay. James Tralle rescinds the motion on the floor, and John Dietz rescindS his second. James Tralle moved that further conversation continue at the Park and Recreation meeting at 7:00 PM at City Hall on December 13,2000. John Dietz seconded the motion. Motion carried 3-0. George Zabee moved to recess the December 12,2000 meeting, and continue December 13, 2000 at City Hall at 7:00 PM. James Tralle seconded the motion. Motion carried 3-0. . DEC-14-00 02:43PM FROM-ELK RIVER UTILITIES 6124418099 T-114 P.04/06 F-332 .~r meeting of the Elk River Municipal Utilities Commission December 12, 2000 5.2 Update on Lan!Jfill Gas Generatiou Project Bryan Adams reviewed the Letter of Intent between Elk River Municipal Utilities and Elk River Landfill, and the Resolution from Sherburne County Board of Commissioners. He further advised that the preliminary engineeringt project coordination and contract negotiation stages are now underway. The Pre- engineering agreement was presented, and the Commission concurred that it was feasible. Staff will return with the agreement at a future meeting. It was noted that pans of the wind generators are now being put into place 5.3 Update Well #2. a\ld Radon Remed~ation The acid washing of the filter media has not been successful in removing enough radium to be successful. The remaining options are to landfill the media as hazardous waste or dilute the filter media with sand to get the aggregate concentration below the minimum for a standard landfill. Prices are currently being pursued for the landfill option. 5.4 Review Survev for Winter Installati9n of Residential Service Conn~<c.tions . At the request of City Councilman, Thompson. his concern of requiring customers to arrange for ching in the winter season, Commission asked Staff to survey other Utilities on their practice in the winter months. Commission and Staff reviewed the results and looked at four options. The option that has the Elk River Municipal Utilities installing or contracting to install the trench with added frost charge appears to be the most reasonable, and is recommended. James Tralle moved to approve installation and/or contracting for placing secondary services to customers on a year round basis, with an added frost charge during winter months. George Zabee seconded the motion. 6.1 Review and Consider PoBey for Char~~s to 3rll Parties Staffreviewed the policy involving invoices to other parties for services rendered, such as, costs and damages to our system by others. The Utilities are not compensated for the administrative time spent in billing and collection of these amounts. A suggested 10% increase on labor will cover supervision and administrative indirect costs. James Traile moved to increase by 10%, the labor portion of third party invoices. George Zabee seconded the motion. Motion carried 3-0. 6.2 Review Minimum Bill for Demand and OrrPeak Demand Customers __ Discussion centered on the present maximum billing demand at 30% of the demand charge or the actual wnand multiplied by the demand charge for a minimum bill, and the actual costs to the utility. Staff recommends changing the 30% maximum charge to 3%. DEC-14-0D 02:44PM FROM-ELK RIVER UTILITIES 6124418099 T-114 P.DS/06 F-332 Page 5 AguIar meeting of the Elk River Municipal Utilities Commission ~cember 12, 2000 George Zabee moved to approve the change to 3% of the demand charge for a minimum bill. James Tralle seconded the motion. Motion carned 3-0. Other Business Bryan Adams advised the Commission of a request: from Elk River Economic Development Authority to help defray the costs ofadvenising and promotion of public-private partnerships in Elk River. The Utilities is requested to pay for one third of specific ads in specific publications, and they will associate the Utilities in those ads. George Zabee moved to assist the Economic Development Authority in their advertising program, at a cost of approximately $973.33 to the Utilities. John Dietz seconded the motion. Motion carried 3-0. . The next regular scheduled meeting of the Elk River Municipal Utilities will be January 16, 2000 at 4:00 PM in the Elk River Utilities Offices. James Iralie moved to recess the regular scheduled meeting of the Elk River Municipal Utilities Commission at 6:00 PM. ~lIY submitted. C?~4~ Patricia Hernza. Office Manager The recessed meeting of the December 12,2000 Elk River Utilities Commission resumed at 7:00 PM at the City Offices. The Elk River Municipal Utilities Commission reconvened after the water tower discussion was concluded with the Park and Recreation Commission. Mr. Don Patton, from D.R. Horton, and Pat Klaers, City Administrator, were present for both the Park and Recreation Commission and Elk River Municipal Utilities discussions. The Park and Recreation Commission voted to disallow a water tower being constricted in either park for visual aesthetic reasons. Don Patton could not offer any financial incentives to move. the proposed water tower from the Trott Brook Park Site. although he is in the discussion stages of purchasing the Black property (Site 6), and could make this available to the Utilities for a sum of money. Much discussion followed concerning the proposed course of action, and possible alternatives if the 2 park sites (5 & 3) do not become available. George Zabee moved to recommend to the City Council to construct the water tower in the lower area of ellside Park (site 3b). James Tralle seconded the motion. Motion passed 2-1.10hn Dietz voting nae. DEC-14-oo oZ:44P~ FRO~ELk RIVER UTILITIES 61Z4418099 T-114 P.06/06 F-33Z ". :' ~ ilie6 ~lar meeting of the Elk River Municipal Utilities Commission December 12, 2000 John Dietz moved to adjourn the reconvened meeting of December 12,2000, at 8:45 PM on December 13, 2000. James Tralle seconded the motion. Motion carried 3-0. c;J;lIY submitted, Bry~~~ General Manager . .