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09-12-2001 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION • September 12, 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: Pat Klaers, City Administrator 1. Call meeting to order September 12, 2001 at 4:00 p.m. 2. Consider Utilities Agenda Bryan Adams will have two additional items to be discussed under Other Business. James Tralle moved to approve the Utilities Agenda for September 12, 2001, with two additional items to be discussed under Other Business. John Dietz seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda James Tralle moved to approve the Consent Agenda as follows: August Check Register Financials August 14, 2001 Minutes John Dietz seconded the motion. Motion carried 3-0. 5.1 Review Proposed 2002 Capital Projects Budget Bryan Adams reviewed the 2002 Capital Budget, with the 10 year Capital and back-up details for the information and consideration of the commission. John Dietz questioned vehicle needs, the mileage, and ages of trucks. George Zabee asked Staff to explain the Vac Tron Excavator. Normal distribution construction was also discussed. This item was informational only at this meeting. 5.2 Update Well#7 and Water Tower Projects The Commission was updated on the Water Treatment Facility#7 and Water Tower Update, which appear to on the anticipated schedule. The bond sale had been scheduled to take place on September 17, 2001. Due to the events in New York, the sale will be delayed until the appropriate time for a bond sale resumes. No action necessary. Page 2 Regular meeting of the Elk River Municipal Utilities Commission September 12, 2001 5.3 Administration Building Update The possibility of a larger administration building has been considered since 1999, with several sites having been explored. Pat Klaers appeared to speak of the wishes of City Council, and City Staff to have the Utilities located at City Hall. A strong case by the City Administrator was presented, including the fact that the land for the office area for the Utilities would be at no cost, the Utility area could be custom designed, a central telephone system, common rooms for employees, and one-stop shopping for builder/developer customers. It was also noted that the sharing of personnel policies, as well as the sharing of employees would be possible if the Utilities shared City Hall. George Zabee voiced his concerns that the City would be in a position to gradually absorb the Utility. John Dietz and James Tralle noted that they feel the downtown area has gone by the way-side, and that new offices at City Hall appears to be a more attractive option than other possibilities. George Zabee contends that he would like to make an offer on the land on Jackson Avenue. Pat Klaers, John Dietz, and James Tralle explained their concerns with that site. The points that were agreed upon were, a. the present Utility building should not have extensive remodeling, and b. the First National Insurance/Mortgage building is of an age that makes it a risky choice. Utility Staff would prefer to remain in the downtown area to accommodate the customers who presently walk in, and support the downtown Chamber of Commerce. The Commission desires to pursue the option of sharing City Hall. 5.4 LFG Project Update Bryan Adams apprised the Commission that the County is presently in budgeting, and are slightly apprehensive of the project at this time. However, meetings with Sherburne County to address issues were scheduled, but due to events in New York, the meetings have been delayed. Staff is hopeful that the project will continue to move forward. 6.1 Authorize Proposals for Additional Electric Line Truck Staff reviewed the reasons for adding an additional electric line truck to initiate a service crew for maintenance. John Dietz moved to authorize Staff to solicit quotations for an additional Line Truck, with award at the November, 2001 Commission meeting. George Zabee seconded the motion. Motion carried 3-0. Other Business Bryan Adams updated the Commission on the decision by the City to leave ownership of sewer lines as it is. The question before the Commission is how they wish to handle the water services line. It appears that the authority to certify improvements for repair of broken water service lines presently exists, and that no change in the Ordinance would be necessary. Pat Klaers will check the Ordinance as it pertains to the Utility. Page 3 Regular meeting of the Elk River Municipal Utilities Commission September 12, 2001 Bryan Adams feels the certification for improvements for customers would be an acceptable alternative to offering an insurance policy. Pat Klaers is concerned that if word of the authorizations for certification of public improvements should spread, that all customers would ask for the privilege. Staff indicated that on the average, there are one or two breaks per year. Bryan Adams advised the Commission that John Weicht has requested relief from the payment of WAC fees for building being erected in Lions Park that will ultimately be given to the City. The City of Elk River has waved the SAC fees. Bryan questioned the willingness of the Utilities Commission to donate WAC fees. James Tralle moved to forego the WAC fees for the building being erected by John Weicht in Lions Park. John Dietz seconded the motion. Motion carried 3-0. The next regularly scheduled meeting of the Elk River Municipal Utilities will be Tuesday, October 9, 2001 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, j X6/ Patricia Hemza Office Manager