08-20-2002 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER MUNICIPAL UTILITIES COMMISSION
August 20, 2002
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: Andy Brewer
1. Call meeting to order
President James Tralle called the meeting to order at 4:00 PM on August 20, 2002.
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda for August 20, 2002. John
Dietz seconded the motion. Motion carried 3-0.
John Dietz moved to approve the Consent Agenda as follows:
July 2002 Check Register
July 9, 2002 Minutes
Financial Reports
After a brief discussion of the reports, centering on purchased power, George Zabee
seconded the motion. Motion carried 3-0.
5.1 Review& Consider Eagle Marsh Water & Sanitary Main Bids
Commission authorized Staff at the July 9, 2002 meeting, to utilize the lowest responsive
bidder for the construction of the sanitary sewer and water main to the new water tower.
Sealed bids were received on July 11, 2002. A bid tabulation was presented reflecting the
bids, with Volk Sewer& Water, Inc. as the lowest responsive bidder. No action necessary.
A short discussion of the project with regards to Riverside Development followed.
5.2 Review and Consider 175th Avenue Water Main Bids
Sealed bids were received on July 25, 2002 for the 175th Avenue Improvement
Project, which includes sanitary mains, water main, hiking path, and street reconstruction.
S.R. Weidema is the apparent low bidder. Bryan Adams noted that this is a competitive bid
for this water main portion of the project. The City Council awarded the entire project,
contingent upon the ERMU awarding the water main portion. John Dietz questioned
possible rebates, and potential lateral main.
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Regular meeting of the Elk River Municipal Utilities Commission
July 9, 2002
George Zabee moved to accept the low bid from S.R. Weidema for the 175th Avenue
Water Main. John Dietz seconded the motion. Motion carried 3-0.
5.3 Review CIP Programs to date
Bryan Adams updated the Commission on the progress of the Conservation
Improvement Program. It is noted that the presented CIP form will be included in the
financing portion of our agenda. Commission indicated that the addition would be
informative, and they do not wish to change reports included in the agenda packets.
Discussion of the CIP spending was reviewed.
5.4 Review Progress of Large Projects
Bryan Adams presented a spread sheet reflecting initial projected cost projections,
with actual costs to date for the following projects; Water Tower, Well &Water Treatment
Plant#7, Administrative Building of City Hall, Plant Garage,North Substation, LFG Electric
Generation, Meadowvale Water Project, 175th Ave. Water Main. It appears that project
projections appear to be on line, except for the plant garage and the LFG project. These two
projects exceeded the initial cost projections at the time the project contracts were awarded.
Commission and Staff reviewed the information.
5.5 Review Projected Costs for Administration Building
Commission and Staff reviewed costs for City Hall/Utility/Public Safety facility. The
Ehlers Bond Sale Report for series 2002B utilized by the Economic Development Authority
to fund our utility building was reviewed favorably. John Dietz added that for the
information of the Commission,the City of Elk River has received an A2 Bond Rating,
which is a notable accomplishment, in this time of rapid growth.
5.6 Review Water Rate Survey
Bryan Adams noted that the recent water rate survey indicates no apparent patterns in
rate design or WAC fees. It is apparent that ERMU has room for increasing rates, but the
question is how the establishment of rates should be accomplished. It is the consensus of
Staff and Commission that rates to encourage water conservation should be the focus. Staff
will return to a future meeting with options.
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Regular meeting of the Elk River Municipal Utilities Commission
July 9, 2002
6.1 Legislative Update from MMUA
James Tralle welcomed Andy Brewer, Senior Government Relations Representative from
MMUA. Mr. Brewer presented a State and Federal legislative update. A short discussion
followed, with Mr. Brewer urging Commission members to participate in legislative rallies.
6.2 Economic Development Opportunity
Bryan Adams advised the Commission that a company, Cymbet, is looking at the
Property between Soft Pak and the County Courthouse, for construction of a plant. The
company, should it be built, would become the largest user of electricity in the ERMU
service territory. This item is an update only, advising of the possibility, and consequences.
It is noted by Commission and Staff that it would be a desirable addition.
6.3 Review and Consider Otsego Development
The financial arrangement with Landcor Inc., concerning the Otsego Water Front
Development was reviewed and discussed. Bryan Adams advised that the initial payment of
$130,950.00 has been received, and that the expected irrevocable letter of credit is expected
soon.
6.4 Review Schedule for 2003 Budget
The schedule for the 2003 budget was reviewed. The Travel & Training Budget, and
the10 Year Personnel Projection was presented to the Commission. John Dietz questioned
the amounts of MMUA training dollars, and where Elk River stands in relation to other
Utilities spending for training. George Zabee noted that he feels the training budget is too
generous. Staff answered questions, and advised that OSHA requirements are adequately
being met with the present program. Commission directed Staff to return with costs per hour
for the Safety Program, and more details. Discussion continued with revisions of job
descriptions for Utility Worker(Plant Operator) and Laborer. The pending retirement of the
Plant Operator employee has prompted the review of the job.
Other Business
There was no Other Business to discuss.
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Regular meeting of the Elk River Municipal Utilities Commission
July 9, 2002
The next regular scheduled meeting of the Elk River Municipal Utilities Commission
will be September 10, 2002, at 4:00 PM in the Utilities Offices.
President, James Tralle adjourned the August 20, 2002 meeting of the Elk River
Municipal Utilities Commission at 5:40 PM.
Respectfully submitted,
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Patricia Hemza
Office Manager