01-15-2002 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
January 15, 2002
Members Present: George Zabee, President; James Tralle, Vice Chair; John Dietz, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water
Superintendent; Patricia Hemza, Office Manager
Others Present: Pat Klaers, City Administrator; Ron Black, Attorney; Vance Zehringer, Key Accounts
Consultant; Robb Kirkpatrick, and Kenneth Mitchell, Alliance Christian Academy
1. Call meeting to order January 15, 2002
2. Consider Utilities Agenda
James Tralle moved to approve the Utilities Agenda for January 15, 2002, with Item 6.3, and Item
5.4, to be discussed first. John Dietz seconded the motion. Motion carried 3-0.
James Tralle moved to designate First National Bank official depository for 2002, and designate Elk
River Star News official newspaper for 2002. John Dietz seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
December, 2001 Check Register
December 11, 2001 Minutes
December 20, 2001 Minutes
John Dietz seconded the motion. Motion carried 3-0.
6.3 Christian Missionary Alliance WAC Fees
Robb Kirkpatrick, and Kenneth Mitchell, Alliance Christian Academy appeared to request and appeal
the WAC charges billed to the Academy on August 31, 2001. Their view was that the WAC and SAC
charges are not applicable, because the building is a re-organization rather than expansion. They feel that
presently no additional people will be at the site. They cited examples from the metropolitan waste council,
that they feel are being over-looked. They re-iterated that they feel that Alliance is not a commercial
property, and is only being re-developed using the existing potential waste-water, with no increase.
James Tralle asks if the City has ever refunded SAC fees that have been paid. Pat Klaers responded
that they had not refunded SAC fees.
Bryan Adams explained that the City Building Officials set the fees, according to guidelines from the
metropolitan waste council. Elk River is not under the jurisdiction of the met council, but does follow
guidelines for the calculations.
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Regular meeting of the Elk River Municipal Utilities Commission
January 15, 2002
James Tralle notes that the Utilities have been consistent with all other facilities, with special noting
of the Elk River Public Schools.
Pat Klaers said the metropolitan council is used as a guide, rather than a rule.
John Dietz asked if schools and churches are charged differently for WAC and SAC charges; Bryan
Adams replying no.
James Tralle moved to deny the request from Christian Missionary Alliance for reduction of the
WAC charges billed August 31, 2001. John Dietz seconded the motion.
George Zabee asked for further discussion, and states that he wants to stay consistent, but if the City
would change its mind on the refunding of SAC charges, the Utility would again look at the issue.
Motion carried 3-0.
5.4 Review LFG Contracts
Bryan Adams updated the Commission on the landfill gas to electric generation project. Ron Black
appeared to review the following documents:
a. Grant of Easement
b. Gas Purchase Contract
c. Service Agreement
d. Security Agreement/Promissory Note
James Tralle asked if there are red flags in the documents that should be discussed. Ron Black and
Bryan Adams responded with possible scenarios that could occur, and the question of the quality of gas at a
future time. George Zabee asked about an oversight committee. James Tralle noted that he feels the LFG
project is an excellent conservation tool. By consensus, the Commission desires to continue with the project.
5.3 Review & Consider CIP Spending Options
In review, the Minnesota Energy Security& Reliability Act enacted in 2001 requires municipal
utilities to spend 1.5% of gross electric revenues on Conservation Improvement Programs (CIP).
Compliance is required by June, 2003.
Vance Zehringer presented a list of possible programs. Vance Zehringer, and Bryan Adams ranked
the desirability of the proposed programs, and explained the list to the Commission.
Maximizing benefit to customers, while minimizing staff time is important, stressing the need to
focus on a few of the programs, rather than the entire list. Staff was directed to return with fewer choices for
spending the needed amount of money.
5.1 Update Substation North
Bryan Adams reviewed and updated the proposal phase for Substation North. He further proposed
that ERMU will be the general contractor for the project. The Commission concurred.
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Regular meeting of the Elk River Municipal Utilities Commission
January 15, 2002
5.2 Update Power Plant Garage Facility
The site plan, floor plans, and elevation of the garage addition at the power plant were reviewed.
Staff advised that the conditional use permit process is underway at this time.
5.5 Review & Consider Water Service Leak Assessment
No discussion on this topic, waiting for City to complete rewording ordinance.
6.1 Authorize Land Purchase for Booster/Pressure Reducing Station
Staff presented the Commission with a map with the location of the small piece of land on which to
locate the booster station, and a purchase agreement for the purchase.
James Tralle moved to approve the purchase agreement for the land to relocate a booster station and
construct a water main. John Dietz seconded the motion. Motion carried 3-0.
6.2 Review & Consider Health Insurance Rebate
The Elk River Municipal Utilities received checks on December 20, 2001 for $13,197.14 for refunds,
as a result of the favorable group health claims experience in the years 1999, and 2000. Discussion between
Staff and Commission centered on the best way to apply the refunds. The employees used their health
insurance wisely, and were very healthy in those two years.
James Tralle moved to give each employee hired before January 1, 2001, and covered by the
company health plan, one pay period with no deduction for health coverage. John Dietz seconded the
motion. Motion carried 3-0.
Other Business
There was no Other Business to discuss.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be February 19,
2002.
President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:35 PM.
Respectfully submitted,
Patricia Hemza
Office Manager