11-13-2001 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
November 13, 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: Phil Halls, City of Elk River
1. Call meeting to order November 13, 2001
2. Consider Utilities Agenda
James Tralle moved to approve the Utilities Agenda for November 13, 2001 as presented. John Dietz
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
October Check Register
Financials
October 9, 2001 Minutes
John Dietz questioned the overtime for October. Glenn Sundeen responded for clarification of the
overtime. John Dietz then asked how many services in the downtown area converted to Underground, and
again Glenn Sundeen responded.
John Dietz seconded the motion. Motion carried 3-0.
5.1 Review Great River Energy's Proposed 2002 Electric Wholesale Rate as Amended
Bryan Adams reviewed the second revision of the wholesale purchased power rate for 2002, noting that
the demand rate remains unchanged from the initial proposal,but the energy rate decreased. The revised rate
reflects a 7.6% increase from the 2000 rate. James Tralle remarked that the percentage increases in the past
three years is very significant.
5.2 Review Bid Tabulation for Service Line Truck
Bids were received on October 26, 2001 for an Electric Service Line Truck. The bid tabulation was
presented to the Commission. Discussion centered on the number of companies that bid, and the ages, and
kinds of trucks the Utility now owns.
James Tralle moved to accept the bid from Altec Industries, as the lowest responsive bidder, for the
purchase of an Electric Line Truck. John Dietz seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
November 13, 2001
5.3 Review 10 Year Cash Reserve Projections
Staff reviewed the Springsted Cash Reserve Projection Model for the Electric and Water departments.
The Water cash reserve model has a slight recession built in. Variables, such as weather were discussed, along
with future rate increases. These studies indicate both departments can accommodate the anticipated growth,
and maintain close to the desired cash balances, although the Water department will be a little more
challenging.
5.4 Consider Proposed 2002 Budget
The budget was reviewed, with highlights, assumptions, and capital budget changes discussed. George
Zabee noted that he would like to discuss the proposed Electric and Water Rates, before approval of the budget.
5.5 Consider Proposed 2002 Electric & Water Rates
In order to support the assumptions for the proposed 2002 budget, both the electric and water rates must
be revised. Electric and Water tariff sheets with the proposed changes, and rate comparisons with other utilities
were reviewed. Staff recommends the increase.
James Tralle moved to approve the rate increases for Electric of$0.0050/KWH, with the exception of
the Energy Management rate, and of Water to a Winter rate of the existing $1.15/1000 gal., and a Summer rate
of$1.20/1000 gal. John Dietz seconded the motion. Motion carried 3-0.
John Dietz moved to approve the Electric and Water Budget for 2002, as presented. James Tralle
seconded the motion. Motion carried 3-0.
Further discussion included the Sub-station North included in the 2002 Electric Capital Budget. James
Tralle feels that bonding at the present time would be advantageous, with the current low interest rates. Staff
and Commission agreed.
James Tralle moved to authorize bonding for Sub-station North. John Dietz seconded the motion.
Motion carried 3-0.
6.1 Review and Consider Schedule and Proposal for Garage at Power Plant
The garage addition at the power plant was reviewed, regarding design, bidding, construction, and
preliminary work. George Zabee asked for further clarification of the site of the addition. John Dietz asked if
all equipment and supplies would be located inside the new garage. Staff responded that wire and poles would
still have to be stored outside. John Dietz urged Staff to use constraint in the planning and design of the new
garage.
John Dietz moved to proceed with the engineering phase of the new garage project. George Zabee
seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
November 13, 2001
Other Business
Phil Halls, City of Elk River appeared to update Commission and Staff on the City Garage
improvements, and schedule, as well as the plans for hiring an additional mechanic. John Dietz advises that he
is optimistic about the shared resource, and wishes to keep up-dated on the process.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Tuesday,
December 11, 2001 at 4:00 PM in the Elk River Municipal Utilities Offices.
Adjournment
President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:15 PM.
Respectfully submitted,
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Patricia Hemza
Office Manager