4.1. SR 11-15-1999
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Item #4.1.
MEMORANDUM
Mayor & City Council
FROM:
Pat Klaers, City Administrator
DATE:
November 15,1999
SUBJECT: Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk
River Municipal Utilities Commission. At this November 15, 1999, City
Council meeting, John is scheduled to provide the council with an update on
October and November Utilities activities. Attached for your review are the
agenda and draft minutes from the November 10,1999, Utilities Commission
meeting.
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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
AGENDA
November 9, 1999
Elk River Utilities Office
ITEM NUMBER ACTION TAKEN
1. Call meeting to order at 4:00 November 9,1999
2. Consider Utilities Agenda
3. * Approval of previous meeting minutes
4. *Check Register
OLD BUSINESS
5.1 Review & Consider Year 2000 Budget
NEW BUSINESS
6.1 Review Proposed Dispersed Generator Program
6.2 Discuss Vacant Property at King and Main St. (verbal)
6.3 Review Street Light Committee Recommendations
6.4 Discuss 2 MW Gas Turbine Project (verbal)
*Financials
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Other Business
*Consent Agenda items are considered to be routine and will be approved by one motion.
NOV-1Z-99 10:35
FROM-ELK RIVER UTILITIES
61Z441B099
T-BB6 P.OZ/05 F-30B
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ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT THE ELK RIVER UTILITIES OFFICES
NOVEMBER 9, 1999
Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
Staff Present: Bryan Adams, General Manager; Robert McCartney, Water
Superintendent; David Berg, Water Superintendent; Patricia Hemza, Office Manager
1. Call meeting to order at 4:00 P.M. November 9. 1999
2. Consider Utilities AgeJ)da
George Zabee moved to approve the Utilities Agenda. John Dietz seconded the
motion. Motion carried 3-0.
3. Con~ider Consent Agenda
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George Zabee moved to approve the Consent Agenda as follows:
10-4-99 Minutes
October Check Register
Financials
John Dietz seconded the motion. Motion carried 3-0.
5.1 Review & Consider Year 2000 Rudget
Discussion centered on Year 2000 Budget, cash flow projections, purchased
power, and rates, as they presently exist. Street lights, offpeak demand electric,
water rates, and WAC fees were reviewed. The off peak demand electric service
rate was further examined, along with recommendations from Vance Zehringer.
It is the concensus of the Utility Commission and Staff to re-evaluate the
consideration of low peak demand customers at a future meeting when firm
purchased power costs are available and evaluated.
George Zabee moved to approve the 2000 Budget as presented. John Dietz
seconded the motion. Motion carried 3-0.
John Dietz moved to increase the cost ofa 30' Decorative Pole with 6' Arm to
$1,400, and a 23' Decorative Pole with Traditionaire Lamp to $1,200. George
Zabee seconded the motion. Motion carried 3-0.
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NOV-12-99 10:36
FROM-ELK RIVER UTILITIES
6124418099
T-886 P,03/05 F-308
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Page 2
Regular meeting of the Elk River Municipal Utilities Commission
November 9, 1999
Discussion ensued concerning whether or not the Ciry of Elk River is
entitled to 3% of the Power Cost Adjustment. By concensus, it was decided
that because the retail Power Cost Adjustment is a pass through of the Whole.
sale Power Cost Adjustment, the 3% City Contribution would not apply.
James Tralle moved to implement a Retail Power Cost Adjustment as the
Wholesale Power Cost Adjustments are applied. while maintaining a revenue
neutral position. George Zabee seconded the motion. Motion carried 3-0.
6.1 Review Proposed Dispersed Generator Program
Conunission is advised that some of our larger customers are interested in a
program that would utilize their on-site generators. Vance Zehringer has
developed a Dispersed Generator Program in detail to allow our customers to
help meet their peak demand. The Utilities would be reimbursed by Great River
Energy. and the customers would in turn be reimbursed for the monthly credit.
The program was discussed in detail, and appears to be a good opportunity.
No action taken at this meeting, pending firm purchased power costs.
. 6.2 Discuss Vacant Property at King and Main St.
Bryan Adams advised the Conunission that the City has asked if we might be
interested in the property at King and Main St. The possibility of purchasing
the property for future construction was discussed, with several possibilities
in mind. The Post Office Building and Site was also considered, with the
Commission feeling that it would be less desirable than the King and Main St.
property. James Tralle wishes to see some preliminary figures including TIF
re-payment. John Dietz concurred with James Tralle's remarks. and directed
Staff to pursue options.
6.3 Review Street Light Committee Recommendations
The Street Lighting Committee presented the following recommendations
for Street Light installations.
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NOV-12-99 10:36
FROM-ELK RIVER UTILITIES
612441B099
T-BB6 P.04/05 F-30B
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Page 3
Regular meeting of the Elk River Municipal Utilities Commission
November 9, 1999
1. Evans and Main Street - Upgrade from one 150 watt to two 250 watt
lamps.
2. Highway 10 and Waco Street - Install one 250 watt lamp on the south
side of Highway 10.
3. Install one street light at the intersection of 190111 Avenue and Joplin.
4. Run wiring from existing street light at Main Street and Baldwin to
street light in Emporium parking lot (old Northbound Liquor Site) that
had power disconnected for unknown reasons.
The recommendations were considered reasonable. James Tralle asked about
lighting on the pedestrian bridge over 169.
George Zabee moved to approve the recommendations for street light
installations, as listed above. John Dietz seconded the motion. Motion carried.
6.4 Discusl\ 2 MW Gas Turbine Project
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Staff advised the Commission that a 40 MW gas turbine has been located, and the
information passed on to Great River Energy. George Zabee voiced his support
of pursuing the project.
Bryan Adams reported that David Berg has found a 1970 2 MW turbine with
approximately 800 hours of running time, at a cost of $300,000. Since one of the
Y2 MW engines at the plant is begiIUling to fail it appears to be a good time to
look at options. Financing was discussed.
James Tralle moved to further explore the possibility of the purchase of the 2MW
turbine, and to have it inspected. John Dietz seconded the motion. Motion
carried 3-0.
Other RIJ~iness
No further business to be discussed.
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NOV-12-99 10:36
FROM-ELK RIVER UTILITIES
612441B099
T-BB6 P.OS/OS F-30B
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
November 9, 1999
The next meeting of the Elk River Municipal Utilities Commission will be Tuesday
December 14, 1999.
George Zabee moved to adjourn the November 9, 1999 meeting of the Elk River
Municipal Utilities Commission. John Dietz seconded the motion. Motion carried 3-0.
The November 9, 1999 meeting of the Elk River Municipal Utilities Commission
adjourned at 5:30 P.M.
Respectfully submitted,
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atncla emza
Office Manager