4.9. SR 12-20-1999
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Item 4.9.
MEMORANDUM
RiverTO:
Mayor & City Council
DATE:
Pat Klaers, City AdminUi=iO . rator
11~
December 20, 19997
FROM:
SUBJECT: Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk
River Municipal Utilities Commission. At this December 20, 1999, 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 minutes from the December 14,1999, 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) 441-742
DEC-17-99 08:42A~ FRO~ELK RIVER UTILITIES
6124418099
T-057 P.Ol/03 F-734
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ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT THE ELK RIVER UTILITIES OFFICES
DECEMBER 14, 1999
Members Present: President, James Tralle; Vice Chairman. John Dietz; Trustee. George
Zabee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen. Line Superintendent;
Roben McCartney. Water Superintendent; David Berg, Water Superintendent
1. (::all meetinf to order at 4:00 P,M.l)e.;elpher 14. 1999
2. Consider Utilities A~el}da
John Dietz moved to approve the Utilities Agenda, with the addition of the
status ofMAPP. George Zabee seconded the motion. Motion carried 3-0.
3. Consider C~)Dsent ~genda
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George Zabee moved to approve the Consent Agenda as follows:
11-9-99 Minutes
November Check Register
Financials
John Dietz seconded the motion. Monon carried 3-0.
5.1 Review GRE Wholesale Electric Rate.
The recently adopted GRE wholesale electric rates for 2000 were reviewed. The
wholesale electric rate increased approximately 7.8% over 1999 rates. GRE's
projected rates to 2005 also reflect steady increases. Fuel cost adjustments will
be commonplace. By consensus. the Commission agreed to review the wholesale
and retail fuel cost adJustment on a quarterly basis.
The Elk River Municipal Utility portion ofGRE's fuel cost adjustment from the
1999 summer is $263,886.
James Tralle moved to extend the Elk River Municipal Utility's retail fuel cost
adjustment for one more month. at 5 mils to recapture the full amount of the
wholesale fuel cost adjustment. George Zabee seconded the motion. Motion
carried 3-0.
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DEC-17-99 08:43AM FROM-ELK RIVER UTILITIES
6124418099
T-057 P.02/03 F-734
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Page 2
Regular meeting of me Elk River Municipal Utilities Commission
December 14~ 1999
Elk River Municipal Utilities has the option by contract, to purchase S% of power
and energy from sources, other than Great River Energy. The possibility of
utilizing landfill gas generation of the Elk River Landfill was discussed. The
Commission directed Staff to investigate the landfill gas generation opporrunity.
Connexus Energy and Elk River Utilities must secure FERC approval for the new
wholesale electric rate. This process has started.
5.2 Review & Consider PrQPosed Dispersed Generator Pro&ram
The revised Dispersed Generator Program was again reviewed in light ofGRE's
comparable program. Legal Council has reviewed this document.
John Dietz moved to implement the Dispersed Generation Program. George
seconded the motion. Motion carried 3-0.
5.3 Review Ik Consider orf Peak Electric Rate
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The off.peak demand electri~ service proposal is a carry over from the
November, 1999 ERMU meeting. This proposed off-peak tariff is in
contradiction to GRE's new rate structure.
James Tralle moved to take no action on this off peak tariff~ and to leave the
existing off peak tariff unchanged. George Zabee seconded the motion. Motion
carried 3-0.
5.4 Review & Consider Bids for Renova1ion 0(#4 Wat~~ Filter Plant
Staff presented a bid tabulation reflecting the bid results for renovating #4 Water
Filter Plant. A good discussion ensued concerning USEDA proposed arsenic and
radon rule. The proposed radon rule will require ERMU to implement a multi-
media mitigation program~ emphasizing radon awareness in indoor air quality.
George Zabee moved to award the renovation of#4 Water Filter Plant to the
lowest responsive bidder~ En-Comm MidweSt. John Dietz seconded the motion.
Motion carried 3-0.
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DEC-17-99 08:43AW FROW-ELK RIVER UTILITIES
6124418099
T-057 P.03/03 F-734
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
December 14, 1999
5.S U1)-date on Kin: & Main St. Redevelo,pment Project
Staff up.dated the Commission on the status of the vacant land at the Intersection
of King Avenue and Main Street. ERMU time frame, and the desire to own and
not lease. does not currently meet BRA objectives. The Commission feels this
site is a good location for future utility offices, when we outgrow the present
facility.
10hn Diet~ moved to direct Bryan Adams to keep talking with HRA & Paul
Steinman, and try to negotiate an option on the property. George Zabee seconded
the motion. Motion carried 3-0.
5.6 Up-date Gas Turbin~ projects
Staffup.dated the Commission on the status of the two proposed gas turbine
projects. The SO NW gas turbine project with GRE is again on hold because this
project does not cash flow. Staff is still gathering information on the 2 MW gas
turbine for the power plant.
Other Business
MAPP members voted ~o to the restated agreement amendments which would allow
MAPP to form a Regional Transmission Organization. This vote killed the MAPP
organization and MAPP will merge with the MISO organization. The transmission
operation and systems reliability function will be in flux for years to come.
The next meeting of the Elk River Municipal Utilities Commission will be Tuesday,
January II, 2000.
James Tralle moved to adjourn the December 14, 1999 meeting of the Elk River
Municipal Utilities Commission. 10hn Diet~ seconded the motion. Motion carried 3.0.
The December 14, 1999 meeting of the Elk River Municipal Utilities Commission
adjourned at 5:10 P.M.
~;iZd'
~an Adams
General Manager