08-14-2001 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
August 14, 2001
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: Rusty Fifield, Ehlers & Associates, Inc., Terry Mauer, Howard Green
1. Call meeting to order at 4:00 PM,August 14, 2001
2. Consider Utilities Agenda
Bryan Adams will have one additional informational item, to be discussed under Other Business.
James Tralle moved to approve the Utilities Agenda for August 14, 2001, with one additional item
under Other Business. George Zabee seconded the motion. Motion carried 2-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
July Check Register
Financials
July 10, 2001 Minutes
George Zabee seconded the motion. Motion carried 2-0.
John Dietz, Trustee, arrived at 4:10 PM.
5.1 Review and Consider Bids for Water Tower
Bids for the Eastern Water Tower were received on August 9, 2001. Staff advised that CB&I, Inc. was
the low bidder. The question of the size of the water storage size of the elevated tank, and the logo were
discussed. It was the general consensus that the larger size, 1.50 MG tank, at an additional cost of$134,000.00
over the base bid for a 1.25 MG tank would be the best decision, given the growth projections for Elk River.
James Tralle moved to accept Alternate Bid A from CB&I, Inc. for the construction of a 1.50 MG Water
Tower, without logo, at$1,441,000.00. Motion contingent upon the City Council approval of the land
purchase. John Dietz seconded the motion. Motion carried 3-0.
The schedule for the purchase of the land was reviewed.
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Regular meeting of the Elk River Municipal Utilities Commission
August 14, 2001
5.2 Review and Consider Bids for Water Treatment Plant#7
Bids for Water Treatment Plant#7 were received on August 9, 2001. Details of the low bid from
EnComm Midwest were discussed, along with projected completion dates.
James Tralle moved to accept the bid from EnComm for the Water Treatment Plant#7, at
$1,234,567.00. John Dietz seconded the motion. Motion carried 3-0.
5.3 Review and Consider Bids for Electric Line Truck
Bids for an Aerial Bucket Truck were received on July 25, 2001. The tabulation was presented to the
Commission, with recommendation from Staff to award the purchase to the lowest responsive bidder, Altec
Industries, with trade-in for the Freightliner at $95,555.00. Staff indicated that the ERMU has had excellent
experience with the Freightliner chassis. Questions of alternate chassis were reviewed.
James Tralle moved to accept the low bid from Altec Industries for the purchase of a new FL-70
Freightliner electric line truck, with the trade-in. John Dietz seconded the motion. Motion carried 3-0.
5.4 Review and Consider Water Revenue Bonds
Bryan Adams reviewed a spreadsheet reflecting estimated costs for several large projects for the Water
Department. Recommendation by Staff is to authorize bonding for the Water Tower, Well#7, and Water
Treatment Plant#7.
Rusty Fifield, Ehlers &Associates, Inc. appeared to discuss the Bond Issue, and answer questions from
Staff and Commission. Mr. Fifield noted positively the financial planning forecasts done by Staff, and the
control that the Utility has over construction. Marketing of the Bond sale was reviewed in response to a
question from George Zabee.
James Tralle moved to approve the G.O. Water Revenue Bonds, Series 2001A for the Water Tower,
Well #7, and Water Treatment Plant#7, in the amount of approximately $3,504,900.00 net proceeds. John
Dietz seconded the motion. Motion carried 3-0.
5.5 LFG Project Update
Bryan Adams reviewed the slowing progress of the project, explaining that risk management is the
reason. Gas quality analysis is the present issue. Our goal is to promote this project, but not to lose money. It
is noted that local cooperation is excellent, but much slower from the Corporate side. This item informational
only.
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Regular meeting of the Elk River Municipal Utilities
August 14, 2001
5.6 Consider Home Computer Purchase Policy
A Home Computer Purchase Assistance Program for the employees of the ERMU was approved at the
July 10, 2001 meeting. Staff was directed to return with a policy for the program implementation. The
program was discussed. John Dietz noted his disapproval of the program, stating that he believes most homes
already have a computer, and that employees are well paid enough to afford the computers without finance by
the Utilities. James Tralle added that he believes the program is a very nice perk for employees. George Zabee
is somewhat in question of the necessity of the program. John Dietz added that several City Council members
questioned the policy.
James Tralle moved to approve the Home Computer Purchase Assistance Policy. George Zabee
seconded the motion. Motion carried 2-1, John Dietz voting nae.
5.7 Administration Building Update
This item is a continuing discussion of the possibility of a larger administration building for the ERMU.
The 1St National Insurance and Mortgage building at 716 Main Street has been reviewed, with preliminary
layouts and cost estimates. George Zabee has requested that the site where two houses now exist on Main
Street be looked into. John Dietz feels that the ERMU should further explore the possibility of re-locating to
the City Hall, since an expansion is in the planning stages. James Tralle questions time-lines for the vacancy of
the 15t National Main Street property, and also time-frames for City Hall expansion. John Dietz indicates that
site should be completed in late 2003 or early 2004. Other possible areas were discussed, such as the Chamber
of Commerce site. It was decided to have Pat Klaers, City Administrator attend the September Commission
meeting to discuss City Hall expansion. John Dietz has offered to approach one of the homeowners on Main
Street regarding the possible purchase of the home. No action taken.
6.1 Review and Consider Water Main Project
The 2001 budget contains a $50,000 item to connect 2 dead end water mains. Analysis has shown that
the water system at 191st Avenue NW, is a long dead end water main with Ridgewood Manor apartment
complex at the end. Fire flow capabilities are marginal. Costs and drawings to correct the situation were
presented and discussed, along with the necessary easements. James Tralle asked if any of the costs could be
assessed, with the consensus that they would not be.
James Tralle moved to approve the expenditure to loop the dead end water main on 191st Avenue NW.
John Dietz seconded the motion. Motion carried 3-0.
Discussion of the water system continued, with John Dietz voicing the concerns of homeowners near
Upland Avenue north of Highway 10, as to water quality and color of water . Staff responded to questions.
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Regular meeting of the Elk River Municipal Utilities
August 14, 2001
6.2 Review Schedule for 2002 Budget
The scheduling time lines for the 2002 Budget were reviewed. The Travel & Training Budget, and the
10 year personnel projections were presented and discussed. Commission agreed the Travel &Training Budget
appears to be reasonable, as well as noting that they feel the ERMU has a very good program in place for
employees. John Dietz inquired about the success of the MMUA Safety Training. Staff responded positively,
that the program is now a success.
Bryan Adams noted certain complications to the 2002 Budget:
1) Policy changes and charges relating to radio read meter reading system.
2) Possible change in ownership of water service lines.
3) Administration and power plant storage building addition—Public water access point for
contractors.
4) Possible Winter/Summer rates for Water Department.
5) Electric Rate Change due to CIP spending increase.
John Dietz would like the Water and Sewer Departments to have the same policy regarding ownership
of service lines. Staff is directed to explore this aspect. Bryan Adams is studying the fee structure for metering
because of radio reading systems.
6.3 Review Conservation and Emergency Management Report
The Department of Natural Resources advised the ERMU that we must submit our revised Conservation
and Emergency Management Report in order to be considered for an increase in our water appropriation from
4500 gpm, and 600,000,000 gallons/year to 6500 gpm, and 1,000,000,000 gallons/year. Staff reviewed with
Commission the changes in the report.
George Zabee moved to receive and file the Conservation and Emergency Management Report
submitted to the Department of Natural Resources. John Dietz seconded the motion. Motion carried 3-0.
Discussion continued, centering on winter/summer rates, and conservation possibilities.
6.4 Consider Air Conditioner Rebate Policy
Connexus has made available an $8,400 air conditioning rebate to ERMU under the same terms as GRE
has with Connexus. An ad has been published in the local paper offering the $200.00 per customer rebate, with
an application, and criteria.
John Dietz moved to make the Air Conditioner Rebate Policy available to ERMU customers. James
Tralle seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
August 14, 2001
6.5 Street Light Request
A formal Street Light Recommendation from the Street Lighting Committee was received, as follows:
1) County Road 13/Lincoln Street
2) County Road 13/Kennedy Street
3) County Road 13/County Road 40 (250 watt lamp)
4) County Road 13/County Road 31-Viking Boulevard(250 watt lamp)
5) County Road 13/2015`Avenue
6) County Road 13/County Road 34-205`h Avenue (250 watt lamp)
7) County Road 13 and Tyler Street—Upgrade from a 100 watt to a 250 watt lamp
It was noted that these street light recommendations are on newly acquired ERMU property.
James Tralle moved to approve the Street Light Recommendations from the Street Lighting Committee
as received. John Dietz seconded the motion. Motion carried 3-0.
Other Business
Bryan Adams updated the Commission on engine #3 at the power plant. The engine muffler failed
recently. Workers are assessing damages at this time. A new muffler will cost approximately $25,000.00. It is
anticipated that it will be repaired in time for the annual URGE tests.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Wednesday,
September 12, 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 6:00 PM.
Respectfully submitted,
Patricia Hemza
Office Manager