10-10-2002 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER MUNICIPAL UTILITIES COMMISSION
October 10, 2002
Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Patricia Hemza, Office Manager
Others Present: Pat Dwyer
1. Call meeting to order
President James Tralle called the meeting to order at 4:00 PM on October 10, 2002.
2. Consider Utilities Agenda
John Dietz moved to approve the Utilities Agenda for October 10, 2002. George
Zabee seconded the motion. Motion carried 3-0.
George Zabee moved to approve the Consent Agenda as follows:
September 2002 Check Register
September 9, 2002 Minutes
Financial Reports
After a brief discussion of the reports, John Dietz seconded the motion. Motion carried 3-0.
5.1 Review and Consider Future of Jackson Street Water Tower
Pat Dwyer appeared to update the Commission on progress for securing digital
communication use of the Tower. Mr. Dwyer advised that he does not have an agreement at
this time, but feels that it will happen. He further added that he believes in saving the tower,
and asks for consideration. Discussion centered on the time table for construction on the
adjacent site, which would give access for the removal of the Tower. John Dietz noted that
he has no desire to remove the Tower, feeling that it does have historical value. George
Zabee added that he is undecided at this point.
James Tralle moved to return to the question of whether or not to remove the Jackson
Street Water Tower at the January, 2003 regular meeting of the Elk River Municipal Utilities
Commission.
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Regular meeting of the Elk River Municipal Utilities Commission
October 10, 2002
5.2 Review Revised Proposed 2003 Electric Capital Budget
Staff has revised the proposed 2003 electric capital budget, and discussed the changes
with the Commission. Changes were viewed positively. Discussion centered on the Proctor
and County Road 33 project. Construction has been moved up to begin in early spring of
2003. Timing and details were reviewed.
5.3 LFG Project Update
The LFG facility is scheduled to be test run the week of October 14, 2002, with the open
house on October 22, 2002, from 2:00 to 4:00 PM. Bryan Adams explained the impact on
the budget, regarding revenue, expense, and the debt service. It is anticipated that the funds
allotted for first year operating contingencies will be used to complete the construction phase.
5.4 Update Great River Energy Wholesale Electric Rate
Bryan Adams has received a proposed announcement of GRE's 2003 rate. It appears
that a 1.5 mil increase may be anticipated, and that the 5 year 5% option will be the most
desirable.
George Zabee moved to approve the 5 year 5% option for purchase of power. John
Dietz seconded the motion. Motion carried 3-0.
5.5 Review 2003 Proposed Water & Electric Expense Budget
The proposed water and electric expense budgets were reviewed. The growth
component for the service area will have a large impact on budget. Assumptions regarding
the growth were debated. James Tralle asked if the increase in purchased power would result
in a rate increase, or handled as a power cost adjustment. It was noted that in the past the
Commission preferred to use rates, rather than a PCA, feeling that the customer would more
fairly be aware of rates. John Dietz would like to lower demand rates if possible. Bryan
Adams presented WAC rates,using an increase from $1,350 to $1,500, along with using
inclining block water rates. It is anticipated that the City will be raising SAC fees as well.
John Dietz wants Staff to notify developers of the WAC increase as soon as possible.
A discussion between Commission and Staff regarding Residential Meter Deposits
was discussed, as well as service sign-ups. Staff is directed to return at the November
meeting with information.
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Regular Meeting of the Elk River Municipal Utilities Commission
October 10, 2002
5.6 Review& Consider Land Purchase for Future Well
Bryan Adams reported the progress of land to locate peaking wells to be tied into
existing water treatment facilities. He advised that 0.5 acre plus land purchase from Grace
Assembly of God is priced at $77,000.00. It is more cost effective to locate the well intended
for that property, on the adjacent city park. The water from this well would be piped to
facility#7 for treatment. James Tralle asked if a building is required. Staff responded that
there would be only a well head and transformer. Another possible location is a 2.65 acre
parcel that would be a good location for a peaking well that would be piped to water
production facility#5 for treatment. A proposed purchase agreement was presented for
$70,000.00.
John Dietz moved to authorize the purchase agreement for no more than $70,000.00
for land for a peaking well, from Timothy A. and Jill Cassady. George Zabee seconded the
motion. Motion carried 3-0.
6.1 Review Street Light Committee Recommendations
The Street Lighting Committee has received a request, and is recommending that street
lights be erected at the following locations:
Lions Park Drive/south of School Street by bandshell
Orono Parkway (appropriate lighting as per Elk River Municipal Utilities mid-block
lighting policy.
Commission and Staff discussed the numbers or lights being proposed, with
associated costs.
George Zabee moved to erect the requested street lights on Lions Park Drive, and on
Orono Parkway. John Dietz seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
October 10, 2002
There was no Other Business to discuss.
The next regular scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday,November 12, 2002, at 4:00 PM in the Utilities Offices.
President, James Tralle adjourned the October 10, 2002, meeting of the Elk River
Municipal Utilities Commission at 5:10 PM.
Respectfully submitted,
Patricia Hemza
Office Manager