08-08-2000 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
AUGUST 8, 2000
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: Anita Duckor, Duckor&Associates, Inc.
1. Call meeting to order at 4:00 August 8, 2000
2. Consider Utilities Agenda
Bryan Adams suggests moving Item 5.3 to be discussed before 5.1.
George Zabee moved to approve the Agenda, with one change as discussed. John
Dietz seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
Two questions on the Check Register were asked by George Zabee, and
responded to by Staff. John Dietz asked several questions regarding the financials, and
discussion of purchased power followed.
John Dietz moved to approve the Consent Agenda as follows:
July Check Register
Financials
Approval of the July 11, 2000 Meeting Minutes
George Zabee seconded the motion. Motion carried 3-0.
5.3 Review and Consider Proposal for Communication Study
Bryan introduced Anita Duckor, Duckor&Associates. A revised proposal to
develop a Communications Strategy and Brand Plan was introduced. George Zabee
asked about time frames for the project, and James Tralle asked about follow-ups to the
initial plan. Anita Duckor responded to their questions and stated that she is presently
working with the City. John Dietz asked if her plan could be incorporated with the
consistent communication being developed for the City, and she responded that it could.
George Zabee asked for examples of Duckor&Associates work. He then stated that he
believes our present information service is just fine as far as home-owners are concerned,
but could see some benefit to prospective business and industry. James Tralle spoke in
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Regular meeting of the Elk River Municipal Utilities Commission
August 8, 2000
favor of the plan. Anita Duckor added that she believes she can present a more efficient
and better imaging for the Utilities.
James Tralle moved to approve the Revised Proposal for Elk River Municipal
Utilities Communication Strategy and Brand Plan as presented. John Dietz seconded the
motion. Motion carried 2-1, George Zabee voting nae.
5.1 Update property purchase for North Electrical Sub-Station
Bryan Adams advised the Commission that the offer of$20,000.00 for the
property for the construction of an electrical sub-station has been refused, and counter
offered at $35,000.00. The property appraisal was $25,000.00. Bryan Adams and James
Tralle advised the Commission that the seller is firm. Other possible sites for a sub-
station would require the Utility to build extra lines, increasing the cost significantly.
John Dietz asked how much property was involved in the purchase, and Bryan noted that
it is approximately one acre.
George Zabee moved to approve the purchase of property for an electrical sub-
station at the cost of$35,000.00. James Tralle seconded the motion. Motion carried 2-1,
John Dietz voting nae.
5.2 Update property purchase for Well#7
Bryan Adams updated the Commission on the property purchase for Well#7,
noting that the property appears to be on a flood plain. John Dietz noted that he thought
the area had been re-evaluated regarding the flood plain. Bryan noted that the ground is
too soft for the building of a tower, but that the well and treatment plant could be built on
the site, with the possibility that a tower could be built in the City Park. It was the
consensus of the Commission to proceed with the site for the Well and Treatment Plant
and approach the City about the Park area for a Water Tower..
5.4 Update on USEPA Radon Regulation
Bryan Adams reported that the USEPA has recently established maximum
contamination levels for radon in drinking water, and further, that the Utilities has tested
the five wells. All wells contain some levels of radon, but only Well #2 exceeds the
recommended action level. Staff is requesting authorization to proceed with acid
washing the filter medium. James Tralle asked if other communities are doing this.
Bryan Adams responded that Hinckley is in the process. James Tralle suggested that the
Utilities wait to see results from the treatment in Hinckley. Bryan Adams again
requested authorization to do further testing, and Commission agreed to this plan.
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Regular meeting of the Elk River Municipal Utilities Commission
August 8, 2000
5.5 Review 5% Capacity Purchase option
Authorization was given at a previous meeting, to pursue purchasing the
allowable 5% capacity and energy from sources other than Great River Energy. Bryan
Adams outlined some of the terms and conditions of such a purchase, including a four
month written advance notice to Great River Energy. It does not appear that it is in the
best interest of the Utilities to pursue the purchase option at this time.
Bryan Adams updated the Commission on the sale of the landfill gas generation
facility, and the possibility of adding more landfill gas generation at the site.
5.6 Review and Consider Revised Water Rules
Commission reviewed the revised Water Rules,noting the changes regarding four
items. Staff recommends these be approved and incorporated into the adopted Water
Rules.
1) Following statement has been added: "Slope of trench must be in accordance
with OSHA rules. If this is not possible, a trench box shall be installed for
inspections.
2) On fire protection lines, a meter is no longer required, only a detector check
valve. Previously a detector check valve with meter was required.
3) Remote meter heads for water meters will require a 4 wire 18 gauge copper
conductor instead of previously specified 2 wire 18 gauge conductor.
4) Following statement has been added: No Certificate of Occupancy(CO)will
be issued until meter is sealed and remote has been installed by Water
Department.
James Tralle asked if Item 4 would be in conflict with City inspection, and Bryan
Adams replied that it would not.
George Zabee moved to approve the revised Water Rules as presented. James
Tralle seconded the motion. Motion carried 3-0.
5.7 Review and Consider Electric Rules
The final section to the Elk River Municipal Utilities' policy manual Electric
Rules was reviewed, and Staff recommends adoption.
George Zabee moved to adopt the presented Electric Rules as presented. James
Tralle seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
August 8, 2000
5.8 Review Progress Report for Electric Rate Study
Commission and Staff reviewed the electric operating results based upon current
rates for future years. Staff notes that there are no surprises in the study, and that a rate
decrease could be a possibility. John Dietz notes that he is presently against a rate
decrease at this time because of the growth in the Utility service area, and future
unknown costs. Bryan Adams responded that he would probably recommend
summer/winter rates for demand customers . No action necessary.
6.1 Review Schedule for 2001 Budget
Staff reviewed the 2001 Budget Schedule, the Travel & Training Budget and the
10 Year Personnel Projections.
Discussion of the Personnel Projections centered around the hiring of a laborer
and a lineman. Bryan Adams responded to Commissioner's questions on the usage of the
additional employees. George Zabee favors having another electrical crew on duty.
George Zabee also inquired as to how the part-time summer employee's time is spent.
Staff responded to the questions, also noting that a digger truck we now have would be
used for an additional crew.
John Dietz asked about safety training. Glenn Sundeen responded positively,
noting that the programs have improved, and are now satisfactory. The schedule of
lineman schools was reviewed. John Dietz asked Bryan Adams for information about the
Legislative Round-Ups, and George Zabee asked how many out of state meetings are
attended. George Zabee further asked what would be the consequences of limiting out of
state meetings, stating that with de-regulation looming,he is not in favor of limiting
meetings at this time.
6.2 Review Policy Change for Water Shut-off for Non-Payment
As the urban service district expands, the Utilities now has customers who have
water service only. Some of these customers are failing to pay their utility bills in a
timely manner. Staff asks for authority to disconnect water utility service. A discussion
of the necessity for such a policy was thoroughly discussed regarding procedures and
alternatives.
James Tralle moved to approve the policy for Disconnection of Water Service.
George Zabee seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
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Discussion of Water Problems continued. Bryan Adams mentioned problems
with water leaks in the service line between the main and the meter,with alternatives to
the high costs to customers. One option would be to raise the fixed costs, and to assume
the cost of repairing service lines. Staff will study the possibility. John Dietz asks Staff
to look at the Sewer Policy. George Zabee requests several alternatives and options.
The next scheduled meeting of the Elk River Municipal Utilities Commission will be
September 13, 2000 at 4:00 in the Utilities Offices.
James Tralle moved to adjourn the August 8, 2000 meeting. George Zabee seconded the
motion. Motion carried 3-0.
The August 8, 2000 meeting of the Elk River Municipal Utilities Commission adjourned
at 5:40 PM.
Respectfully submitted,
Patricia Hemza
Office Manager