08-25-2004 ERMU JOINT MTG MIN ELK RIVER MUNICIPAL UTILITIES
JOINT MEETING OF THE
CITY COUNCIL&UTILITIES COMMISSION
August 25,2004
Utilities Members Present: Jerry Takle,President;James Tralle,John Dietz
City Council Members Present: Mayor Stephanie Klinzing;Paul Motin,Louise Kuester,Dan Tveite
Utilities Staff Present: Bryan Adams,Glenn Sundeen
City Staff Present: Pat Klaers,Teny Maurer,Phil Hals,Cathy Mehelich
1. Call meeting to order August 25,2004
Council Member Paul Motin called the August 25,2004 meeting to order.
2.0 Work Session
Pat Klaers gave the Council members and Commissioners an overview of the topics to be discussed at this
meeting.
2.1 Maintenance and Repair of Highway Street Lights and Signals
Pat Klaers reported upon the ERMU request,the Street Lights along Hwy 10 corridor have been inspected
by MNDOT and are in need of replacement. The Utilities in the past has always taken care of the maintenance
and painting of the poles and Pat Klaers feels this should be considered as part of their expense. Pat Klaers
suggests splitting the cost of the pole replacement along the Hwy 10 corridor. Bryan Adams questioned if the
replacement cost should be the responsibility of ERMU. Due to the benefit received by the public,is the
replacement cost a tax issue or a Elk River electric customer issue. Discussion followed regarding MNDOT
requirements,cost for lane closures to replace poles,condition of the median,and possible future road
construction along Hwy 10.
Paul Motin felt the City should replace the poles as it should be a tax payer debt not a debt to the Utilities
customers for these lights benefit everyone using Hwy 10. Louise Kuester questioned if the maintenance would
still remain the Utilities responsibility. Dan Tveite responded that the maintenance would remain the same.
Dan Tveite moved to approve the City paying for Street Light replacement along the Hwy 10 corridor. Paul
Motin seconded the motion. Motion carried 3-0-1. John Dietz abstained.
2.2 Enforcement of the Two Year Utility Hookup Requirements
Mayor Stephanie Klinzing and Commissioner James Tralle arrived at 6:30.
When water and sewer utilities are provided to an existing development,the existing customers are sometimes
given 2 years to connect. Bryan Adams went over the possibilities and benefits of the utility hookups. In 2001
an ERMU policy was adopted that required customers to hook-up to the water system. Now when the time has
expired and customers still haven't hooked up where available,how should we proceed. Staff presented 6
options. John Dietz suggested to bill them the WAC fee and charge them a monthly minimum fee on their
utility bill. James Tralle asked if we could somehow flag the Abstract at the County so if the house was for sale
it would be required to hookup at that time. The City Attorney will explore the legalities of the options
presented. John Dietz requested the City change the sewer ordinance to match the water utility. No further
action taken.
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Joint meeting of the Elk River City Council and Elk River Municipal Utilities Commission
August 25,2004
2.3 SAC and WAC Fees for Downtown Redevelopment Projects and General Update on Status of
Parking Lot Expansion Plans/Utilities Building Removal
Cathy Mehelich updated everyone on the downtown project. First was the discussion on the deferred
payment for the SAC,WAC,and Jackson block land purchase with payback from TIF being spread over an
estimated 20 year span at 5%interest. It was the consensus that the funds will first be applied to the SAC and
WAC fees until they are paid off,then remaining payments will go to payback of the Jackson block land.
Pat Klaers said the demolition of the old Utility building is contingent on the redevelopment project moving
forward. Bryan Adams asked if it was necessary to keep the utilities on through the winter. Pat Klaers felt that
until the final development agreement is signed the utilities should stay on. Terry Maurer is making plans for
the parking lot improvements with construction starting spring of 2005. Terry Maurer will be meeting with
businesses and the downtown group before final plans are made. With the demolition of the old Utilities
building and the closure of King Avenue,the available parking area will be increased,with possible parking
ramp in the distant future. Cathy Mehelich estimated the downtown area project to be in the$300,000 to
$350,000 range which included the demolition of the old Utilities building.
Motion by James Tralle to accept deferred payment of the WAC fees. John Dietz seconded the motion.
Motion carried 3-0.
Motion by Paul Motin to accept deferred payment of the SAC fees. Dan Tveite seconded the motion. Motion
carried 4-0.
2.4 City Mechanic Program
John Dietz asked how the mechanic program is working with the Utilities and the City. Phil Hals
responded that things were running smoothly. The city maintenance records for their equipment and the remote
reader on the fuel pump keeps track of the mileage and flags when it is time for maintenance check. They also
do oil analysis on their equipment to find out if there are hidden problems. John Dietz asked about the
possibility of installing a remote reader at the Utilities location. Glenn Sundeen indicated Phil Hals estimated
the cost would be around$8,000 to$10,000. John Dietz questioned Glenn Sundeen on the inspections the
Utilities crew do when changing the oil on their trucks. Glenn Sundeen said they do a daily inspection on their
trucks required by MNDOT. It was asked if the City and Utilities could use the same maintenance form to keep
on file for each vehicle and then also do an oil analysis on the heavy trucks. John Dietz commented on the
inability for the City to work on the hydraulics of the line trucks and he asked if the City could send someone to
school. Bryan Adams suggested the possibility of getting a loaner vehicle when dropping off a vehicle. Phil
Hals responded that there is a vehicle available if needed.
2.5 Future Sites for Water Facilities
Bryan Adams updated the Council members and Commissioners on the future water sites to meet the
growth of the city water demands. City indicated the vacant land across from City Hall may be used as a future
well site if it does not interfere with future buildings. The Utilities and City staff have been working well
together on the future planning of the required areas. No further action taken.
M
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Joint meeting of the Elk River City Council and Elk River Municipal Utilities Commission
August 25,2004
2.6 City Hall-Utilities Cost Sharing for Building Operating Expenses
The issue of the expenses for the building and operating expenses were discussed. Methods of allocating
costs were discussed. Both staffs have listed the expenses,and the sharing of fees will be determined at a later
date. No further action taken.
Other Business
Jerry Takle talked about the MMUA conference he just attended which covered terrorism incidents,security,
and water contaminants. Bryan Adams added that in 2006,the State will require all utilities to be responsible to
locate their own water and sewer service lines. The State is suggesting tracer wires be utilized for all non-
metallic utility material. ERMU is currently investigating GPS technology for locating. Mayor Stephanie
Klinzing reported on the disaster drill they had at the high school.
Mayor Stephanie Klinzing adjourned the joint meeting of the Elk River City Council and the Elk River
Municipal Utilities Commission at 7:50 p.m.
Re .-ctfully sub i• tted
144 411111111Mik
Judy McSi den\ \
Recording Clerk