Loading...
7.4. SR 03-21-2005 Item # 7.4. MEMORANDUM FROM: Mayor and City Council Pat Klaers. City Administrato~ March 21, 2005 ~ TO: DATE: SUBJECT: Utilities Commission Update Councilmember John Dietz is the City Council representative on the Elk River Municipal Utilities Commission. At the March 21, 2005 City Council meeting, John is scheduled to provide the Council with an update on Utilities activities. Attached are the draft minutes from the March 8, 2005 Utilities Commission meeting. s: \ CouncillPat! Updates! Utilities. doc ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION 414,9 l .. 0 ?.o~ March 8,2005 Members Present: Jerry Takle, President; James Tralle, Vice Chair; John Dietz, Trustee StatIPresent: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; Patricia Hemza, Office Manager; Theresa Slominski, Office Manager 1. Call meetin2: to order March 8, 2005 President Jerry Takle called the March 8, 2005, meeting to order. 2. Consider Utilities A2:enda John Dietz moved to approve the March 8, 2005, Utilities Agenda with the addition of one item for discussion under Other Business. James Tralle seconded the motion. Motion carried 3-0. 2a. Election of Officers for 2005 James Tralle moved to re-appoint Jerry Takle, President; John Dietz, Vice Chair; and James Tralle, Trustee. Jolm Dietz seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda James Tralle moved to approve the Consent Agenda as follows: February Check Register February 8, 2005, Minutes Financials John Dietz seconded the motion. Motion carried 3-0. 5.1 Staff Up-dates Bryan Adams discussed the 5th Street water main project, and the issues regarding low water pressure. Customers are alleging their service lines may be plugged with iron/magnesium over the years due to being on a dead end line. Discussion ensued as to who's responsibility is it to clean these service lines, the utility or the customer. Routing out these service lines was also considered with no final determination. Well #2 was pump tested recently and it can pump 1500 gpm. MN Department of Health has asked if the well casing was grouted, if not, we may have to put in a liner and grout. Bryan Adams also reminded the Commission that this would be Patricia Hernza's last commission meeting for she will be retiring April 8, 2005. At this time Jerry Takle presented her with a gift. Glenn Sundeen reported on the tree trimming, current projects, and one outage recently caused by a car hitting a pole. Patricia Hernza reported on the audit being finished and financials for January and February will be presented at the next meeting. Theresa Slominski responded that the audit went well and that she would be.visiting with staff on a one to one basis to better understand their job duties. Possible job duty changes might be recommended. Page 2 Regular meeting ofthe Elk River Municipal Utilities Commission March 8, 2005 5.2 Review and Consider 4th En2ine (iiJ, Elk River Landfill There is room and enough gas for a 4th engine at the Elk River LFGFacility. Elk River Landfill, Sherburne County, and Great River Energy have been sent a letter with construction cost, schedule, suggested contract changes, and a memorandwn of intent. Sherburne County Board approved the memorandwn of intent as well as GRE and Elk River Landfill. The first step is to start the air permit process and once we have a indication of reasonable air permit requirements, we can proceed with the engine/generator purchase. Staff recommends we adopt a resolution referring to resolution 453 which allows us to proceed with the project and not utilize public bidding requirements. Motion by James Tralle for authorization to execute Memorandwn of Intent. John Dietz seconded the motion. Motion carried 3;.0. Motion by James Tralle to adopt attached resolution referring to chapter 453. John Dietz seconded the motion. Motion carried 3-0. Motion by James Tralle to start securing the necessary air permits. John Dietz seconded the motion. Motion carried 3-0. 5.3 Review MMUAJAPPA Position 'Papers Jerry Takle shared his comments regarding the APP A legislative rally he recently attended with Bryan Adams. Further discussion followed on the position papers presented to the congressional legislators. No action needed. 5.4 Review Draft Benefit Survey Bryan Adams presented a sample of the benefit survey and the proposed point system to evaluate the surveys. Bryan Adams feels the Medical and Dental Insurance will be an important issue. John Dietz questioned the increased insurance cost from last year, staff responded it was just over 15%. John Dietz recommends a committee of employees revisit the Insurance issue in the fall when we know what next years rates will be. It can then be brought to the Commission and discussed further at that time. No further action taken. 6.1 Review Site Plan for Plant Area The Elk River Municipal Utilities will continue to grow physically due to acquiring more territory along with growth of existing areas. Because the land at the power plant is getting congested, do we want to consider purchasing the adjacent land to the north? James Tralle feels the future land purchase possibility should be further looked into. John Dietz will contact the family of the property to the north east and see if there is interest in selling this property. We must also resolve the fence encroachment issue with this property owner. 6.2 Review MMUA Safety Evaluations The MMUA Safety evaluation for 2004 from Dave Berggren was reviewed. This evaluation is very positive towards the utilities. Discussion followed on the benefits of this program. No action taken. Page 3 Regular meeting of the Elk River Municipal Utilities Commission March 8, 2005 6.3 Review and Consider Security Dispatch Services . The security monitoring company we have been using has been sold to another company which is out of state. The new monitoring company is making changes with account numbers and staff is having difficulty resolving billing and customer issues. Staff is asking for authorization to switch monitoring companies to WH International. They are located in Rockford, Minnesota. Staff feels this would be a good move. Jolm Dietz questioned how long the transition would take. Staff responded 2 - 3 months. Motion by James Tralle to switch monitoring companies from Criticorn to WH International. John Dietz seconded the motion. Motion carried 3-0. 6.4 Consider Engineerine for New 69kv Transformer The 2006 budget projection includes a $600,000 item to purchase a new 69kv transfonner and move an existing 69kv transformer from West Bank 1 to Substation North. The 2005 budget contains a $15,000 item to complete the necessary engineering. Staff is requesting permission to proceed with the engineering proposal from USG (United Services Group). Motion by John Dietz to proceed with the engineering proposal from USG. James Tralle seconded the motion. Motion carried 3-0. Other Business John Dietz asked staff in the future, when the utilities is purchasing new equipment, to question the City if they desire to purchase the old equipment instead of trading it in. Staff responded that would be done in the future. The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be April 12, 2005, at 3:30. President JerryTakle adjourned the regular meeting of the Elk River Municipal Utilities Commission at 5:20 p.m. RESOLUTION A HESOLUTION OF THE CITY OF ELK RIVER RESOLUTION APPROVING THE EXERCISE OF PO\VERS UNDER l\IINNESOTA STATUTES, CHAPTER 453, RESPECTING A CERTAIN ELECTRIC POWER GENERATION PROJECT Be It Rcsol"ved as Follows: I. RecItals. (a) The City of Elk RIver, Minnesota, in cooperation and conjunction with the Elk River Municipal UtilitIes Commission (collectively, the "City") proposes to enter II1to contract(s) With Sherburne County, jv1innesota (the "County") and Waste ;v1anagement, IlK, its successor, assigns and/or other persons (collectively "WJ\f') to facilitate the addition of a certain electrIc power generation project (the "Project"). (b) The Project \\ould consist of the addition and completion of an 800 kilowatt hour landfill gas-to-energy electric generator located Il1 the City at the Elk River Landfill The cost of the Project is currently estimated to be $670,000.00. (c) The Project will be a base load generator owned by the City. (d) It is proposed that W1\l, in conjunction with the City, would plan, complete and operate the ProJect. The Project is expected to be operational on a full-time basis to provide electric energy to the customers of the City. The City expects to benefit from the Project by erihancll1g its capaCity against the growing electriclty needs of the City and against uncertainty of national electric capacity as a \.\'hole. (e) 11 is proposed that the County 183n the sum of approximately $670,000.00 from its Solid Waste Surcharge fund to the City for the purchase of the generators and related equipment, with zero interest over a sixteen year repayment period. (f) The CIty, the County and WM would enter into agreements (collectively, the "Agreements") specifying the respective rights and obligation of the City, the County and ViM. (g) The City would issue a note(s) to finance the Project. These Notes would bepayab!e from revenues derived from the operation of the Project and \\/ould be secured by a mortgage or other suitable security mterest in the Project. The Note(s) would not be a general or moral obligation of the City, would not be secured by any of the City's existing municipal electric utIlity assets, and would not be payable from or a lien against the rates and charges imposed by the Clly on its municipal electric customers :2 Authorization It is hereby resolved and determll1ed pursuant to Jvlinnesola Statutes, Section 453 58, th<.:lt the Clly may exercise such powers and enloysuch privileges provIded in f',,1Innesota Statutes, Chupter 453, as may be desirable or necessary 111 cOIl11ection With the CIty'S participatIon in the Project as generally descrIbed hereinabove, the entering into the Agreements, and the iSSULlllce of the Notc(s) in aid of financing and completlllg the ProJect. 3 Approval and Publication, This ResolutIon has been duly adopted by the City CouncIl of the City of Elk River. ~,'linnesota, and by the Elk River Municipal Utilities C0I111111SS10n, respectively; at July called and regularly held meetlllgs there 011 , 20__, and shall be published once Il1 the offiCial ne\vspaper of the City as soon as cOllve!llel1tly possible pursuant to Minnesota Statutes,Section 453,58, Subdivision 2, This Resolution In itself if not intended and shall not be Il1terpreted as a commitment of tlle City to the Project, vvhich shall be contingent upon the execution of lhe mutually acceptable Agreements, Passed and adopted by the City Council and the Elk River Municipal Utijjties Commission of the CIty of Elk I\ivcr this day of March, 2005, ELK RIVER MUNICIPAL UTILITIES COMMISSION By: lames [ralle Its President ATTEST: Bryan Adams ELK RIVER CITY COUNCIL By: Stephanie Klinzlllg, Mayor A TrEST: ] oall Schmidt 2