01-14-2003 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
January 14, 2003
Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water
Superintendent; Patricia Hemza, Office Manager
Others Present: Terry Maurer, Howard R. Green Company; John Alfords
1. Call meeting to order January 14, 2003
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda for January 14, 2003. John Dietz seconded the
motion. Motion carried 3-0.
George Zabee moved to designate First National Bank official depository for 2003, and designate Elk
River Star News official newspaper for 2003. John Dietz seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
John Dietz moved to approve the Consent Agenda as follows:
December, 2002 Check Register
December 10, 2002 Minutes
Financials
George Zabee seconded the motion. Motion carried 3-0.
6.4 Review& Consider Jackson St. Water Tower
George Zabee moved to postpone any action or discussion on the Jackson Street Water Tower
until the April, 2003 Utilities Commission meeting. Motion died for lack of second.
Bryan Adams advised Commission that Metropolitan Cardiology Consultants have decided that they
will not be using the Jackson St. Water Tower for a cell phone antenna, and no other inquiries have been
made. John Dietz spoke in favor of keeping the Tower as a part of the history of Elk River, and that he
believes other companies will be interested in using the Tower as a site for cell phone antennas. John
Alfords appeared to relate the time frame for his construction on the property directly east of the Tower. Mr.
Alfords would be amenable to having the Utilities use his property for removal of the Tower for the next
three months. After that, his property would no longer be available. He further noted that he personally
feels it is an eye-sore, and is of no value historically. James Tralle asked Dave Berg, Water Superintendent
what his opinion is, and he replied that he would like to have it removed. James Tralle asked Staff for
particulars of what portions need repairing. Staff listed the needed repairs, noting that painting could be
delayed for another year, but other structural repairs should be done immediately, if the Tower is to be
saved.
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Regular meeting of the Elk River Municipal Utilities Commission
January 14, 2003
George Zabee said that since the Tower sits in the middle of the old town of Elk River, there may be
some significance for saving it. James Tralle questioned if the Tower would last another sixty years, with
repairs. Bryan Adams answered that concrete around the anchor bolts was cracking, but if repairs are
accomplished, and regular maintenance performed, it should last for many years. John Alfords asked if cell
phone companies would really be willing to put antennas on such an old structure. He further asked why the
site is not fenced to prevent trespassing, or vandalism. Commission said that would be an item to further
discuss. James Tralle thinks that the Tower should be repaired, and gamble that it would eventually be used
for a cell phone tower site when the economy improves. Bryan advised that quotes would need to be
obtained for repairs.
James Tralle moved to keep and to perform necessary repairs to the Jackson Street Water Tower.
John Dietz seconded the motion. Motion carried 2-0, George Zabee abstained.
Items 6.3, and 6.4 will be discussed before 5.2, to accommodate Terry Maurer's presence at the
meeting.
6.5 Feasibility Study–Boston and Concord St. Utility and Street Improvements
The pertinent sections of the feasibility study for Boston Street and Concord Street Utility and Street
Improvements prepared by Terry Maurer of Howard Green Company were reviewed. Terry Maurer, and
Bryan Adams responded to questions from the Commission, saving that ultimately they believe the subject
will be dropped for lack of interest by citizens.
James Tralle moved to receive and file the Feasibility Study–Boston and Concord St. Utility and
Street Improvements. John Dietz seconded the motion. Motion carried 3-0.
6.6 Feasibility Study–2003 Pavement Rehabilitation Improvements
The Feasibility Study-2003 Pavement Rehabilitation Improvements was discussed. The question of
offering to re-place curb stops on Morton was the center of the discussion. It is believed that doing so while
the street is under construction would be advantageous to citizens, as well as the Utilities, and City. It is not
known at this time how many customers this would impact, but it could be as few as two. Terry Maurer
explained the Feasibility Study expenditures.
5.2 Review& Consider 2003 Wire
Staff presented a bid tabulation for 2003 electric wire needs. The difference between EPR versus
XLP wire was discussed. Glenn Sundeen responded to questions noting that the EPR has superior
workability, and longevity.
George Zabee moves to accept low bids, with the exception of approval of the recommended EPR
wire from Resco, at a slightly higher amount than the lower cost XLP. John Dietz seconded the motion.
Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
January 14, 2003
5.3 Review & Consider Pick-up Truck Bids
A bid tabulation for the purchase of
a. '/2 ton 4 x 4 pick-up for electric department
b. 3/4 ton 4 x 4 pick-up with bins for the water department
c. 3/4 ton 4 x 4 extended cab
Staff recommends authorization to accept low bids for the purchases.
George Zabee moved to accept low bids for the purchase of the three vehicles. John Dietz seconded
the motion. Motion carried 3-0.
5.4 Review Service Territory Acquisition Study
Staff reviewed with Commission a map of the territory acquisition area, a spread sheet reflecting
acquisition statistics, and an article from MMUA that discusses their position on territory acquisition. It was
agreed that the territory acquisition agreement is good, and continues to be in the best interests of ERMU to
pursue. John Dietz moved to approve purchase of Areas 21 and 19 from Connexus. George Zabee seconded
the motion. Motion carried 3-0.
5.5 Update GRE/Connexus Energy Issues
Bryan Adams informed the Commission that our All Requirements Contract is presently at FERC,
with the anticipation that it will be approved. Bryan Adams noted that the extension to 2040 between Great
River Energy, and its member systems will allow GRE to make expansion plans and finance over a longer
period of time, thus keeping rates lower. Discussion followed.
6.1 Review Electrical Outage
The Minnesota Energy Security and Reliability Act enacted in 2001 contains a distribution reliability
section. The ERMU will be required to develop reliability standards based on measurements of outage
frequency and duration. Also to be required are service quality standards. Staff presented the Commission
with a spread sheet reflecting the outage history for 2002. Commission discussed the analysis with Staff
6.2 Payment Schedule
The Elk River Municipal Utilities approves the Check Register after the checks have been issued,per
purchasing policy adopted on 2-10-98. Steve McDonald, ERMU Auditor has requested that we either make
payment after the commission meeting or amend our purchasing policy with a resolution, to satisfy state
guidelines. A resolution was drafted by Ron Black, and the Commission reviewed it, and discussed present
policy.
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Regular meeting of the Elk River Municipal Utilities Commission
January 14, 2003
John Dietz moved to adopt the Resolution to grant the purchase and payment of equipment,
materials, and services necessary to ensure efficient operations. Commission will receive a list of all claims
for informational purposes at the next regularly scheduled meeting after payment of claim. George Zabee
seconded the motion. Motion carried 3-0.
A discussion of the reimbursement to employees for business related expenses included the
recommendation of Steve McDonald, Auditor. The suggestion is to either adopt a per diem reimbursement
policy, or strictly enforce no receipt—no reimbursement policy.
John Dietz moved to strictly enforce the reimbursement of employees for business related expenses
by receipt only, with no exceptions. George Zabee seconded the motion. Motion carried 3-0.
John Dietz moved to recess the regular meeting of the Elk River Municipal Utility Commission, and
to reconvene in Executive Session, at 4:55 P.M. George Zabee seconded the motion. Motion carried 3-0.
5.5 Executive Session/GM Performance Review
The Performance Review of the General Manager, was completed and discussed.
John Dietz moved to adjourn the Executive Session of the Elk River Municipal Utilities Commission at
6:00 P.M. George Zabee seconded the motion. Motion carried 3-0.
The Regular Meeting of the Elk River Municipal Utilities Commission was reconvened by President, James
Tralle.
Other Business
There was no Other Business to discuss.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
February 18, 2003.
President Tralle adjourned the regular meeting of the Elk River Municipal Utilities Commission at
6:05 PM.
Respectfully submitted,
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Patricia Hemza
Office Manager