Loading...
06-12-2001 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION June 12, 2001 Members Present: George Zabee, President; John Dietz, Trustee Staff Present: Bryan Adams, General Manager; David Berg, Water Superintendent; Patricia Hemza, Office Manager Others Present: Pat Klaers, City Administrator; Daryl Thompson 1. Call meeting to order at 4:00 PM June 12, 2001 2. Consider Utilities Agenda John Dietz moved to approve the Utilities Agenda for June 12, 2001 as presented. George Zabee seconded the motion. Motion carried 2-0. 3. Consider Consent Agenda John Dietz moved to approve the Consent Agenda as follows: May Check Register Financials May 8, 2001 Minutes George Zabee questioned three items on the Check Register, and John Dietz questioned two items on the Check Register, and several questions on the Financials. George Zabee seconded the motion. Motion carried 2-0. 5.1 Review and Consider Water Tower Land Purchase Agreement A revised Vacant Land Purchase Agreement, a Boundary Survey, the proposed Water Tower Site Plan, with possible future well, and a preliminary plat of Kliever Lake Hills were presented and reviewed. George Zabee reviewed his reasons for disapproval of the purchase of land for a water tower. Bryan Adams advises the necessity of keeping the tight schedule of events to reach bidding and construction schedules. John Dietz views the schedule as reasonable. Daryl Thompson, and Pat Klaers offered in-sight into their thoughts of the events, and the schedule that must take place. Pat Klaers suggested that the wording in 21 e of the Vacant Land Purchase Agreement be changed to read Water trunk Line assessment. John Dietz moved to authorize Bryan Adams to proceed with securing bids for construction of the water tower with award in August, 2001. George Zabee seconded the motion. Motion carried 2-0. John Dietz moved to approve and accept the Vacant Land Purchase Agreement, with the addition of the word Water in 21 e, and pending City Council Preliminary&Final Plat Approval. George Zabee seconded the motion. Motion carried 2-0. Page 2 Regular meeting of the Elk River Municipal Utilities Commission June 12, 2001 5.2 Review and Consider Ridges of Rice Lake Electrical Bid Tabulation Bids for Ridges of Rice Lake cluster development were received on May 22, 2001. A bid tabulation reflecting the results of the bid were presented. Commission, at the May 8, ERMU meeting, authorized Staff to award a contract to the lowest responsive bidder, with the approval of the ERMU auditors. The lowest responsive bidder was M&P Utilities. Staff reviewed the bid tabulation with the Commission. John Dietz moved to formally approve the award of the contract to M&P Utilities. George Zabee seconded the motion. Motion carried 2-0. 5.3 Update Meter Reading Costs Radio read meter reading, contract, and in-house meter reading were reviewed. It was agreed that in the event that our present Contract Meter Reading service does not renew the contract, that at that time the ERMU would return meter reading to in-house. Staff was directed to return to a future meeting, information, and statistics for ERTs (Encoder/Receiver/Transmitter). 5.4 Review Response Time and Computer Use Certain operational people are now required to live within an 8 mile radius of the power plant for response time. A survey on response time, by other Utilities, and the local Fire Department were reviewed. Miles versus time, and staff recommendations were discussed. John Dietz moved to change the wording of the required 8 mile radius to 10 mile radius for certain operational employees. George Zabee seconded the motion. Motion carried 2-0. The subject of possible $1,200.00 interest free loans to employees for computer purchase was discussed. Commission and staff weighed the benefits of the program, with different viewpoints expressed. It was the consensus of the Commission to table the topic to the July Commission meeting. 5.5 Review Safety Program Evaluation A reviewal of the Elk River Municipal Utilities Safety Program by the MMUA Regional Safety Coordinator was presented and discussed. George Zabee commended the ERMU employees for the successful report. Discussion continued, with comments from Staff, Commission. 5.6 Review Financial Projections Many large projects expected in the next three years, such as wells, water towers, substations, administration building, and a plant garage may require debt financing. These projects, along with financing requirements were discussed. Updated financial cash flow projections were commented upon by Staff and Commission. The subject of rate increases,timing, economy, and cash were discussed. It was noted by George Zabee that he would prefer to see gradual increases of a modest nature rather than an abrupt large increase. John Dietz agreed with that thought. Page 3 Regular meeting of the Elk River Municipal Utilities Commission June 12, 2001 5.7 Update Omnibus Energy Bill The Omnibus Energy Bill was approved by the full House and Senate on Monday, May 21, 2001. Changes in the Conservation Improvement Program, Renewable Portfolio Standards, and Customer Protection Standards were reviewed. Bryan Adams explained the impact on ERMU, and possible solutions. It is not clear at this time how ERMU will proceed; further clarification will follow. 6.1 Consider Equipment Purchases The 2001 capital budget contains the purchase of a new cable plow. The cost of the cable plow will be under$50,000.00, requiring comparable bids rather than a formal bid process. A discussion of other equipment, their age and condition followed. Staff is recommending replacement of a 1991 GMC aerial bucket truck, because of age and condition. John Dietz moved to authorize Staff to trade-in, and replace the 455 Vermeer cable plow with a new cable plow, write specifications, and secure a formal bid to trade-in and replace the 1991 GMC aerial bucket truck. George Zabee seconded the motion. Motion carried 2-0. 6.2 Review Building Appraisal A building appraisal of the Main Street Mall, currently occupied by First National Insurance, and First National Mortgage was presented. Discussion of the square footage, and the present needs of the office portion of the ERMU followed. John Dietz moved to have the City Building Inspector inspect the building, and to secure an architect to prepare possible layouts, and cost estimates to ensure the building could be used by ERMU at a reasonable cost. George Zabee seconded the motion. Motion carried 2-0. 6.3 Review and Consider Water Point of Service Location The ERMU Water Rules, Section 103, Water Service Repairs, states that maintenance or repair from the main stop cock to the premises is the responsibility of the homeowner. Discussion of alternatives included changing the customers responsibility from the main to the curbbox, or meter, or possibly implementing an"Insurance Policy"to ease the cost of repairs while leaving the current policy in place. George Zabee prefers the curb box site as first choice. John Dietz would like the ERMU to use the same policy standard for water, as the City does for sewer. Pat Klaers advised that City Staff is presently looking at the Sewer Point of Service Location. It was the consensus of the Commission to address the question of point of service at a future meeting. Page 4 Regular meeting of the Elk River Municipal Utilities Commission June 12, 2001 Other Business No Other Business to be discussed. The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday, July 10, 2001 at 4:00 PM in the Elk River Utilities Offices. Adjournment President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:45 PM. Respectfully submitted, G Patricia Hemza Office Manager