01-11-2000 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
January 11, 2000
Elk River Utilities Offices
Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCartney, Water Superintendent; David Berg, Water Superintendent
1. Call meeting to order at 4:00 P.M.January 11, 2000
2. Consider Utilities Agenda
James Tralle moved to approve the Agenda, with the postponement of the
Election of officers for 2000 until the March 2000 meeting. George Zabee
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
George Zabee moved to approve the Consent Agenda as follows:
Designate First National Bank official depository for 2000
Designate Elk River Star News official newspaper for 2000
12-14-99 Minutes
December Check Register
Financials
James Tralle seconded the motion. Motion carried 3-0.
5.1 Update 2 MW Proposed Gas Turbine Project for Power Plant
An economic analysis for the proposed 2000 kw Gas Turbine for the power
plant was discussed and reviewed. Initial indications center on an approximate
payback of ten years for the Utilities. Initial inspection indicates that the machine
is in good condition with very few operating hours, and is a common engine with
readily available parts. Commission feels a ten year payback is too long; that a
five year payback would be feasible. John Dietz suggests bonding rather than
equipment certificates.
George Zabee moved to authorize Staff to begin the bid process. John Dietz
seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
January 11, 2000
5.2 Update Proposed Landfill Gas Generation Project w/Sherburne County
The Proposed Landfill Gas Generation Project proposed arrangement was
reviewed, and a Financial Analysis was examined. Risks and benefits to both
the Utilities and to the County were considered. Consensus is to proceed with
the project.
5.3 Update King Avenue & Main Street Redevelopment
Bryan Adams updated the Commission on the discussion at the last HRA
meeting, advising that the First National Bank has made a more lucrative offer
than other interested parties for the purchase of the property. Commission
directed Staff to continue to monitor the redevelopment.
5.4 Update GRE-Connexus Wholesale Electric Rate
Commission reviewed the Plan of action regarding updating and modifying the
All Requirements Contract between the Elk River Municipal Utilities and
Connexus Energy. James Tralle noted that the Contract appears to be fair and
equitable.
5.5 Update Progress Well#6
Staff reviewed the difficulties in closing the Well#6 project, including additional
engineering costs in the metering and sump problems. Costs for the overage will
be split between the engineering firm and the Utilities. Total additional costs are
approximately $10,000.00.
6.1 Review and Consider Recommendations from Street Light Committee
The need for a street light on the west side of Jackson Avenue at Sixth Street, due
to increased pedestrian traffic as a result of the boys and Girls Club opening was
discussed.
John Dietz moved to approve the additional street light on the west side of
Jackson Avenue. James Tralle seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
January 11, 2000
6.2 Review and Consider Bid Tabulation to Purchase Pick-up Truck
The 2000 Budget contains an allowance for the purchase of a Y2 ton 4X4
pick up truck, as an additional vehicle to our fleet, to be used in the Electric
Distribution Department. The bids were discussed and considered.
George Zabee moved to award the bid for a '/2 ton 4X4 pick up truck to Olivia
Chrysler, (State Bid) as low bidder. James Tralle seconded the motion. Motion
carried 3-0.
John Dietz requested that Staff present a list of vehicles and their use at the next
Commission meeting.
6.3 Review APPA Electric Rate Comparisons for Minnesota
Bryan Adams presented the 1998 APPA electric rate comparison survey for
Minnesota, with a statistical analysis of the information. It is noted that the
Elk River Municipal Utilities falls within the 3rd quartile of rates for all rate
classes.
Other Business
John Dietz reported that the Mayor has requested an analysis of the monitoring charges
for the lift stations. Staff will respond.
The electrical outage that occurred on 1-11-00, as a result of an insulator failure on Great
River Energy's transmission line was discussed. Bryan Adams noted the excellent
response by the ERMU crews in restoring power to customers. Staff will further update
the Commission of the costs and repercussions of the outage at a future meeting.
The next meeting of the Elk River Municipal Utilities Commission will be Tuesday,
February 15, 2000.
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Regular meeting of the Elk River Municipal Utilities Commission
January 11, 2000
James Tralle moved to adjourn the January 11, 2000 meeting of the Elk River Municipal
Utilities Commission. George Zabee seconded the motion. Motion carried 3-0.
The January 11, 2000 meeting of the Elk River Municipal Utilities Commission
adjourned at 5:10 P.M.
Respectfully submitted,
Patricia Hemza
Office Manager