12-11-2001 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
December 11, 2001
Members Present: George Zabee, President; John Dietz, Trustee
Members Absent: James Tralle, Vice Chair
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water
Superintendent; Patricia Hemza, Office Manager
Others Present: Pat Klaers, City Administrator, Tushie Montgomery Architect Representatives
1. Call meeting to order December 11, 2001
2. Consider Utilities Agenda
John Dietz moved to approve the Utilities Agenda for December 11, 2001. George Zabee seconded
the motion. Motion carried 2-0.
3. Consider Consent Agenda
John Dietz moved to approve the Consent Agenda as follows:
November Check Register
Financials
November 13, 2001 Minutes
George Zabee seconded the motion. Motion carried 2-0.
5.1 Review & Consider Load Management Rates
Staff reviewed a chart reflecting the wholesale rates and proposed retail rates for Energy
Management, published by Great River Energy. The proposed increase in retail rates reflects a 1 mil
increase from the current rate, which Staff recommends adopting. Staff updated the Commission on the
cycled air conditioning progress.
John Dietz moved to approve a 1 mil increase for the Energy Management rates. George Zabee
seconded the motion. Motion carried 2-0.
5.2 Well Head Protection Plan Update
The Wellhead Protection Plan history was reviewed. The last portion of the plan was recently
completed by staff, and submitted to the MDH for preliminary comments. Commission and Staff discussed
the plan, with special attention to Chapter 5, "Objectives and Plans of Action". No suggested changes were
made, and Staff was directed to proceed with the approval process.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
December 11, 2001
5.3 Administration Building Update
Pat Klaers and representatives from Tushie Montgomery Architects appeared to discuss the plans for
the City Hall expansion, including the time frames. Pat Klaers advised that the City Council is prepared to
make decisions on the time frames for the planning on December 18, 2001. The City Council would like to
be advised on the plans of the Utility by that time.
The Architect representatives, and Pat Klaers presented plans with three options the City is
considering, with Utility space included in all three plans. A proposal from the City's architect to do the
necessary architectural/engineering work for the Utilities' portion of the project.
George Zabee questioned the cost estimates, and the bidding process. He further added that he feels
the present location of the Utilities is adequate for at least five years, and asks if the area could be made
available in the future. The architects replied favorably, noting that construction of the Utility portion would
be the final stage, with completion later in 2004. John Dietz approves of the Utility portion being at the tail
end of the construction stage. It would guarantee that the Utility would be able to take advantage of the
present bidding system, with cost savings. George Zabee is not prepared to make a decision at this meeting,
preferring to postpone finalization until all Commissioners are present.
It was decided to call a Special Meeting for Thursday, December 20, 2001 to discuss the option of
the Utilities being included in the City Hall expansion.
5.4 Landfill Gas Project Update
The remaining contract issues between Sherburne County, Waste Management, and ERMU have
tentatively been resolved, as well as the engineering drawing review. Staff presented the Commission with
spread sheets explaining the revenues, operation, and maintenance cost portions of the project. Staff
recommends that Attorney Ron Black review each agreement with the Commission at a future meeting.
5.5 Substation North Connection Agreement
The Connection Agreement between GRE and ERMU was presented for consideration and review by
Commission. The terms and conditions of the agreement are similar to previous Connection Agreements
except that in this case, GRE will pay for their transmission modifications and metering. A savings of
$250,000 will be realized by the ERMU. At the same time, GRE would like to purchase the metering for
station 14 and sub bank 1 & 2 along with 69 Kv switch at west sub bank 1, at approximately $21,500.
The time frames for bidding, construction, and completion were discussed. Completion is anticipated
in late Summer, 2002.
George Zabee moved to authorize Staff to execute the Connection Agreement between GRE and Elk
River Municipal Utilities. John Dietz seconded the motion. Motion carried 2-0.
6.1 Review & Consider Policy Change for Budget Billing
The Minnesota Energy Security &Reliability Act will in 2002 require utilities to provide a customer
budget billing plan. To comply with this requirement, Staff is proposing to add the Budget Helper Plan
Section 13 of our Meter Deposit&Related Services Policy.
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
December 11, 2001
John Dietz moved to add the Budget Helper Plan, as Section 13 of the ERMU Meter Deposit&
Related Services Policy. George Zabee seconded the motion. Motion carried 2-0.
6.2 MMUA Presentation
Withdrawn to a future meeting.
6.3 Street Light Request
The Street Lighting committee has received a request for a street light to be erected at an intersection
on County Road 1, and is recommending installation.
George Zabee moved to install a street light at Upland/County Road 1. John Dietz seconded the
motion. Motion carried 2-0.
6.4 Christian Missionary Alliance WAC Fee
A request from Robb Kirkpatrick, Alliance Christian Academy for relief from payment of an invoice
for WAC fees for the Academy. Commission and Staff discussed the request. It was the consensus that the
Alliance Christian Academy must be treated the same as other customers of the Utility.
John Dietz moved to deny the request by Christian Missionary Alliance for release from paying the
WAC fees that were billed on August 31, 2001. George Zabee seconded the motion. Motion carried 2-0.
Other Business
John Dietz confirmed that James Tralle has been approved re-appointed to the Elk River Municipal
Utilities Commission.
Bryan Adams advised the Commission that there is a problem with water treatment at Well #3. Staff
is authorized to proceed with correction of the problem.
John Dietz discussed the 2003 pavement removal/replacement, regarding the impact upon the
Utilities.
A Special Meeting is called for December 20, 2001. The next regularly scheduled meeting of the Elk
River Municipal Utilities Commission will be January 15, 2002.
Adjournment
President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:20 PM.
Respectfully submitted,
Patricia Hemza
Office manager