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03-14-2000 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION MARCH 14, 2000 Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George Zabee Staff Present: Bryan Adams, General Manager; David Berg, Water Superintendent; Patricia Hemza, Office Manager 1. Call meeting to order at 4:00 P.M. March 14, 2000 2. Consider Utilities Agenda John Dietz moved to approve the Agenda with two additions from Bryan Adams, and one addition from James Tralle, to be discussed under Other Business. 2A. Election of officers for 2000 Motion by George Zabee, seconded by John Dietz to nominate the following slate of officers for 2000. John Dietz President George Zabee Vice Chairman James Tralle Trustee Motion carried 3-0. John Dietz, as 2000 President of the Elk River Municipal Utilities Commission took over the chair of the 3-14-2000 meeting. 3. Consider Consent Agenda James Tralle moved to approve the Consent Agenda as follows: February check register, with one correction Sales and Production Reports Approval of February 15, 2000 minutes George Zabee seconded the motion. Motion carried 3-0. 5.1 Review and approve Connexus Amendment to Electric Service Agreement Bryan Adams reviewed the Amendment to All Requirements Contract between Connexus Energy and Elk River Municipal Utilities, explaining that the document has been reviewed by FERC attorney, Robert McDiarmid. He further explained how the rate and monthly power bills will effect the Utilities. Page 2 Regular meeting of the Elk River Municipal Utilities Commission March 14, 2000 James Tralle moved to authorize the execution of the Amendment to All Requirements Contract between Connexus Energy and Elk River Municipal Utilities. George Zabee seconded the motion. Motion carried 3-0. Staff is further authorized to review electric rates impacted by the Amendment with R.W.Beck. 5.2 Review and Authorize Portions of Wellhead Protection Plan Bryan Adams reviewed the Wellhead Protection Plan with the Commission, regarding the procedures for implementation. Staff responded to questions by Commissioners. James Tralle moved to accept the WHPA, DWSHA, and Vulnerability Assessment, and to authorize the mailing of the following items to Sherburne County and to the City of Elk River. 1. Map of the Wellhead Protection Area delineation (WHPA) 2. Map of the Drinking Water Supply Management Area boundary (DWSMA) 3. Vulnerability Assessment George Zabee seconded the motion. Motion carried 3-0. James Tralle moved that a Public Information Meeting for the general public regarding the WHPA, DWSMA and Vulnerability Assessment at the next regularly scheduled meeting of the Elk River Municipal Utilities Commission, April 11, 2000. George Zabee seconded the motion. Motion carried 3-0. 6.1 Review Western Area Feasibility Study John Dietz reported that the City of Elk River, at their Council meeting of March 13, 2000 approved Western Area Improvements Phase IV. Bryan further reviewed the Study and the funding with the Commission, for the Elk River Municipal Utilities portion of the Watermain on the north side of Highway 10. Financing of construction and associated engineering costs were discussed. Page 3 Regular meeting of the Elk River Municipal Utilities Commission March 14, 2000 James Tralle moved to approve payment by the Elk River Municipal Utilities for the assumed construction costs of the project, estimated at $94,500.00. George Zabee seconded the motion. Motion carried 2-0. John Dietz abstained. 6.2 Review and Consider Electric Territory Acquisition for 2000 The 2000 Budget of the Elk River Municipal Utilities contains $350,000 for the acquisition of Areas 13 and 14. Bryan Adams reviewed policies and added that the Utilities will be required to install approximately 3400 LF of underground at a cost of$40,000, which was not budgeted. Commissioners asked if overhead would be a possibility, and Bryan Adams responded why underground is the preferred option for this application. George Zabee moved to approve the purchase of Areas 13 and 14 for territory acquisition, and further to approve the installation of the necessary underground on the south side of County Road 33, at an approximate cost of$40,000. James Tralle seconded the motion. Motion carried 3-0. 6.3 Discuss Request by Sprint for Aerial On/By Water tower Sprint approached the Commission in July 1997 and in 2000 approached John Dietz regarding the installation of aerials on our water tower. Commission and Staff considered the ramifications of approving the aerial installation, noting that liability, safety and security would be compromised by someone other than authorized staff having direct access to our tower. Sprint had offered $500.00 per month for the access. The consensus of the Commission is non-interest in allowing the water tower to be used by Sprint. No action taken. Other Business Staff advised Commission of the water main break in Industrial Park, which drained the Hillside tower on March 3, 2000. David Berg explained how the problem was located and what was done to rectify the situation. Bryan Adams noted that the City Street Department has asked the Utilities if there would be interest in the purchase of their building, if it should become available in the future.. Consensus is that it would not be a feasible plan. Page 4 Regular meeting of the Elk River Municipal Utilities Commission March 14, 2000 James Tralle noted that he noticed tents and campers on the river by the Power Plant, which he asked the Elk River Police Department to investigate. No permission had been given and the tents and campers left the site. The next scheduled meeting of the Elk River Municipal Utilities Commission will be April 11, 2000. A Public Hearing regarding Wellhead Protection will be held at the beginning of the meeting at 4:00 P.M. James Tralle moved to adjourn the March 14, 2000 meeting. George Zabee seconded the motion. Motion carried 3-0. The March 14, 2000 meeting of the Elk River Municipal Utilities Commission adjourned at 5:20 P.M. Respectfully submitted, Patricia Hemza Office Manager