02-19-2002 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
February 19, 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; Gary Fisher, Tushie & Montgomery, Architects; Vance
Zehringer, Key Accounts Consultant
1. Call meeting to order February 19, 2002
2. Consider Utilities Agenda
James Tralle moved to approve the Utilities Agenda for February 19, 2002. John Dietz seconded the
motion. Motion carried 3-0.
3. Consider Consent Agenda
John Dietz moved to approve the Consent Agenda as follows:
January, 2002 Check Register
January 15, 2002 Minutes
January, 2002 Sales Reports
James Tralle seconded the motion. A brief discussion of the Otsego Sub-Station, shared capacity
agreement, and the Merchant Program for Apprentice Linemen were discussed. Motion carried 3-0.
5.1 Review CIP Programs
At the January, 2002 ERMU meeting, possible CIP (Conservation Improvement Programs)were
discussed. Staff was directed to recommend the preferred programs. Vance Zehringer appeared to explain
the various programs, and answer related questions. Bryan Adams urged caution in under or over spending
the required CIP dollars.
George Zabee moved to approve the CIP programs presented. John Dietz seconded the motion.
Motion carried 3-0.
5.2 Update LFG Project
Bryan Adams updated Commission on the progress of the Landfill Gas Project, noting that a Resolution
was passed on February 12, 2002, by the Sherburne County Board of Commissioners to proceed with the
project, contingent upon all agreements being completed to the satisfaction of the Sherburne County
Attorney. Construction bids were received on January 23, 2002. Bryan Adams further noted that the
issue of gas quality is still in question, which could result in increased maintenance costs of the engines.
It was the consensus of the Commission that the gas quality issue should not hold up the process and that
the LFG Project continue.
Page 2
Regular Meeting of the Elk River Municipal Utilities Commission
February 19, 2002
5.3 Review & Consider Water Leak Assessment Petition
A Petition Waiver and Agreement for Repair of Owner Water Facilities and Assessment of the Costs
Therefor was presented to the Commission. John Dietz asked if the fluctuating interest rates had been
discussed. It was noted that this concern was addressed in the last item of the Petition. Pat Klaers noted that
the Petition had been prepared by the City Attorney.
John Dietz moved to pre-approve the Petition, Waiver and Agreement for Repair of Owner Water
Facilities and Assessment of the Costs Therefor. James Tralle seconded the motion. Motion carried 3-0.
5.4 Update Administration Building
Gary Fisher of Tushie &Montgomery Architects appeared to answer questions, and to present
preliminary plans. The proposed basement, concern with the possible perception of the public that the
project is too extravagant, size, and the escalating project cost were items discussed. No action necessary.
6.1 Review 2001 Annual Report
The 2001 Annual Report was presented to the Commission for review. Discussion centered on the
need for increased water conservation, as a priority in the coming years.
Territory Acquisition changes were reviewed. Concerns by Connexus, and ERMU center around the
growth of the City, as well as the costs of up-grading services. It appears that the purchase of the western
area, and area 19 in 2003 would be advantageous. The proposed 2003 purchase of approximately
$750,000.00, would delay further acquisition in 2004, 2005, and 2006.
James Tralle moved to purchase the western area, and area 19 in 2003. John Dietz seconded the
motion. Motion carried 3-0.
George Zabee moved to receive and file the Annual Report for 2001. James Tralle seconded the
motion. Motion carried 3-0.
6.2 Review Bid Tabulation for 1 Ton & '/2 Ton Trucks
The 2002 Budget contains items to replace a 1990 1 Ton plow/dump truck, and a 1992 4 x 4 '/2 Ton
pick-up truck. Bid tabulations for both trucks, with Staff recommending the awards to the lowest responsive
bidders.
John Dietz moved to accept the lowest responsive bids for purchase of/2 Ton Pick-Up Truck from
Owatonna Motor(State Bid), and a 1 Ton Pick-Up Truck from Saxon Motors. James Tralle seconded the
motion. Motion carried 3-0.
Page 3
Regular Meeting of the Elk River Municipal Utilities Commission
February 19, 2002
6.3 Review GRE Electric Wholesale Rate Change
To reduce cost shifting of members of GRE by purchasing 5% of their electric power and energy
needs from sources other than GRE. GRE is offering their members their own 5% option. Two options
to be considered were presented. The first option would be to do nothing, and the second to utilize the
5% option.
James Tralle moved to use the 5% option for the first year,with renewals. John Dietz seconded the
motion. Motion carried 3-0.
6.4 Review City Shop Rate for Vehicle Repair
The Shop Labor Rate received from the City of Elk River was discussed. Staff voiced concerns at the
Cost. Presently ERMU contracts with mechanics to do shop work to ready vehicles for DOT inspections at
less cost than the proposed City rate. John Dietz indicated that he had conversations with the City regarding
the rate, and that there would be a change in the charges. Staff was directed to proceed with the preparation
of vehicles for DOT inspections, as in past years.
6.5 MN Department of Labor & Industry Grant
The Minnesota Department of Labor and Industry has awarded a safety grant to the ERMU, in the
amount of$10,000.00 to purchase a Vac Tron excavator. The 2002 ERMU Budget contains an item for a
Vac Tron excavator. Staff is requesting approval to purchase this equipment utilizing the $10,000 State
Grant to reduce the actual cash outlay. Staff reviewed the Vac Tron excavator, and its uses with the
Commission.
George Zabee moved to accept the Grant from the State of Minnesota, and to authorize the purchase
of the Vac Tron excavator. James Tralle 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 March 12,
2002.
President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:20 P.M.
Respectfully submitted,
'Ttf
Patricia Hemza v
Office Manager