02-15-2001 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
FEBRUARY 15, 2001
Elk River Utilities Offices
Members Present: John Dietz, President; George Zabee, Vice Chairman; James Tralle, 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 at 4:00 P.M. February 15. 2001
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda for February 15, 2001. James Tralle seconded
the motion. Motion carried 3-0.
3. Consider Consent Agenda
George Zabee moved to approve the Consent Agenda as follows:
January Check Register
Comparative Sales/Production Reports
January 15, 2001 Minutes
5.1 Update Well#7 and Proposed Water Tower Location
Bryan Adams reported on the response from Riverside Development and Gold Nugget Development
concerning a possible water tower in their development. Gold Nugget has agreed to locate a Water Tower
on the NW corner of their development. John Dietz and Bryan Adams will meet with representatives of
Riverside to discuss a tower location on their property.
Further discussion was centered on the size of the water tower locations for booster stations. Bryan
Adams advised that he has sent a memo to the City of Elk River estimating the schedule and costs for Water
production facility#7, and Water Tower with financing with bonds.
5.2 Review Downtown Electric Upgrade & Sidewalk Project
The upgrade of the electrical system on Main Street was reviewed, with John Dietz reporting on the
pavers to be used for sidewalk, and Pat Klaers reported on time frames for the project. John Dietz
mentioned that he feels the upgrade to be done by the Utilities has helped move the project ahead. Bryan
Adams will return to the Commission with plans, specifications, and secure proposal to do the necessary
work.
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Regular meeting of the Elk River Municipal Utilities Commission
February 15, 2001
5.3 Review Service Territory Acquisition for 2001
Commission and Staff reviewed the territory acquisition map, reflecting the present territory and
future plans. Bryan Adams further discussed strategies for acquisition, and recommended authorization be
given to proceed with the 2001 planned acquisition, and to push back by one year, acquisition areas
16,17,18,19, and not to purchase any territory in 2002. Necessary construction to serve these areas will then
have an opportunity to be done in a timely manner.
George Zabee moved to acquire Area 15, and Area 20 in 2001, at an approximate cost of
$200,000.00, and to not purchase further territory in 2002. James Tralle seconded the motion. Motion
carried 3-0.
5.4 Update Laborer Position
Staff presented the position description of a laborer, the reviewal by Hay Management Consultants,
with point evaluations for Pay Equity. John Dietz asks what the starting pay would be for the position.
Bryan Adams responded with the 4 step wage plan and advised that the top wage step would be $15.86 per
hour. John Dietz asked who the supervisor would be for this position. David Berg will be the Supervisor,
and the job duties would be both in the Water and Electric Departments.
James Tralle moved to approve the Job Description, Wage Plan, and to authorize the hiring of a
Laborer. George Zabee seconded the motion. Motion carried 3-0.
5.5 Update Wholesale Rate and Connexus FERC Filing
The issue of the interpretation of the allocation of refunds to ERMU by Great River
Energy/Connexus was discussed. Bryan Adams explained that we assumed we would be entitled to a
portion of the refund to Connexus, because of the Contract wording. John Dietz feels that the amount of a
$68,000.00 refund warrants further investigation. Staff is authorized to request clarification from Mr. Robert
McDiarmid, FERC Attorney, on the matter.
6.1 Review 2001 Annual Report
Bryan Adams presented and discussed the 2000 Annual Report to City Council with the Commission.
The report was briefly discussed with regard to 2000 major accomplishments and goals. The plans for a new
garage to be erected by the existing Plant were reviewed with discussion.
Staff brought to the attention of the Commission, the need for a mechanic. John Dietz responded
with the suggestion of the City hiring a second mechanic,who would share his time with the Utility. Pat
Klaers agreed that it would be a good possibility. John Dietz asked Glenn Sundeen to put together a report
to Pat Klaers about the need for a mechanic by the Utilities. John Dietz asked Bryan Adams to discuss the
possibility at the City Staff meeting on 2-27-01.
Bryan Adams asked the Commission to look closely at the statistical information within the annual
report, with special concern regarding wholesale power.
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Regular meeting of the Elk River Municipal Utilities Commission
February 15, 2001
6.2 Review and Consider Replacing 3/4 Ton Pick-up
Bids were received for the purchase of a 3/4 Ton Pick-up that was included in the 2001 budget, for the
Electric Department.
James Tralle moved to accept the lowest bid from Airlake Ford-Mercury, for a Ford F 250 Pick-up at
$21,059.00. George Zabee seconded the motion. Motion carried 3-0.
6.3 Authorize Plan and Specifications for Water Main Project
The 2001 budget contains a provision to construct a water main to facilitate the use of an existing
booster station. Bryan Adams explained the reasons for the project concerning high pressure and low
pressure zones. Questions and answers followed.
James Tralle moved to approve authorization of plans and specifications for the Water Main project
to facilitate the use of an existing booster station. George Zabee seconded the motion. Motion carried 3-0.
Other Business
Bryan Adams reported on the Legislative Rally February 13 and 14. He handed out a WHY PUBLIC
POWER?Report by MMUA explaining the benefits, as well as the problems Municipal Utilities are facing.
Other MMUA hand outs pertaining to the Rally were distributed.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be
Tuesday, March 13, 2001 in the Utilities Offices.
Adjournment
President John Dietz adjourned the meeting of the Elk River Municipal Utiliteis at 5:15 P.M.
Respectfully submitted,
C;)a1}4-4;—Zzl )e aJ
Patricia Hemza
Office Manager