Loading...
11-14-2000 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION November 14, 2000 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: Debra Dehn, Waste Management; Dave Lucas, Sherburne County Solid Waste Officer 1. Call meeting to order at 4:00 P.M. November 14, 2000 2. Consider Utilities Agenda Bryan Adams has three up-dates to be presented under Other Business. Item 5.5 will be discussed before Item 5.1, to accommodate Mr. Lucas and Ms. Dehn. James Tralle moved to approve the Utilities Agenda, with the change in sequence of 5.5 and the addition of up-dates in Other Business. George Zabee seconded the motion. Motion carried 3- 0. 3. Consider Consent Agenda James Tralle moved to approve the Consent Agenda as follows: September Check Register October Check Register Financials Approval of the October 3, 2000 Minutes 5.5 Review and Consider Letters of Intent for Landfill Gas Generation Project Beverly Dehn, Waste Management, and Dave Lucas, Sherburne County appeared to answer any questions the Commission might have. Bryan Adams reviewed the progress, and the Letter of Intent with Waste Management, that will oblige the Elk River Municipal Utilities to proceed with developing a gas purchase, land engineering, an operating and a maintenance agreements with Waste Management, and develop a loan agreement with Sherburne County. The costs to the ERMU were further reviewed. James Tralle asked for clarification of Great River Energy's requirements regarding the project. Bryan Adams responded by explaining the purchase of transmission and ancillary services, and how other Utilities and Coops are affected. John Dietz inquired about an approximate start date. Bryan Adams distributed an Estimated Project Schedule. He further explained that the most time intensive piece would be the Air Permits from the State of Minnesota. James Tralle suggested that Bryan Adams contact Mark Ourada for assistance in the permit process. Page 2 Regular meeting of the Elk River Municipal Utilities Commission November 14, 2000 The Resolution of Intent to support the project at the Elk River Landfill for converting landfill gas to electric energy is recommended by the Waste Management Advisory Committee and is expected to be passed at the next Sherburne County Board of Commissioners Meeting. James Tralle moved to execute the Letter of Intent with Waste Management, with minor wording changes if necessary. George Zabee seconded the motion. Motion carried 3-0. Debra Dehn and Dave Lucas were thanked for their appearance, and they exited the meeting. 5.1 Review and Consider Award of Electric Line Truck Bids were received on October 16, 2000 for a 2001 electric line truck. Bryan Adams recommended accepting the lowest responsive bidder, Dueco, with trade-in. Glenn Sundeen, presented his reasons for requesting that the Utilities keep the trade-in for a back up truck. He stated that the Utilities was forced to rent a truck for four months this summer, and that if the truck were retained, it could keep down time to a minimum, and keep work at a constant level. Bryan feels that we could better use the trade in dollars, and that it should be traded. John Dietz favors a trade-in; he does not feel the truck would be utilized enough to keep. James Tralle moved to accept the lowest responsive bidder, Dueco, without trade-in. George Zabee seconded the motion. Further discussion of the pros and cons of a trade-in,with comments from Staff and Commission ensued. George Zabee reviewed the considerations once again. Motion failed 1-2. James Tralle voting aye, George Zabee and John Dietz voting nae. James Tralle moved to accept the lowest responsive bidder, Dueco, with trade-in. George Zabee seconded the motion. Motion carried 3-0. 5.2 Review and Consider Water Rates for 2001 Staff reviewed water rates comparisons with other communities, options, income projections, and a revision of the Water Economic Development Incentive Rate. Staff recommends a water rate increase, with the suggestion that Summer/Winter unit rates will need to be considered at a future point in time. Staff further noted that the Option 1 was used in the water income projections, and that it indicates water cash reserves are adequate. Staff and Commission discussed the presentations. George Zabee moved to approve Option 1 Water Rate Revision, effective 1-1-2001. James Tralle seconded the motion. Motion carried 3-0. Bryan Adams explained how the change in the Water Rate Revision will affect the Water Economic Development Rate. Page 3 Regular meeting of the Elk River Municipal Utilities Commission November 14, 2000 Staff has recommended that the Commission reconsider our present bulk water sale policy, which only allows water tanker trucks to fill at the hydrant by the Utility Office building during normal business hours. With all of the building construction in Elk River, along with traffic delays and road construction, this restrictive policy is no longer practical. James Tralle moved to approve the Water-Construction Site metered hydrant rate in addition to the present policy. George Zabee seconded the motion. Motion carried 3-0. 5.3 Review and Consider Electric Tariff Sheets The revised electric rates have been approved at a past meeting, but the Electric Tariff Sheets, which formalize the terms are presented and discussed. A short reviewal of the rates was given by Bryan Adams. James Tralle moved to approve the Electric Tariff Sheets as presented. George Zabee seconded the motion. Motion carried 3-0. 5.4 Review and Consider Expense Budget for 2001 Staff presented the Commission with the finalized Annual Budget. John Dietz questioned the purchased power expense and revenue parallels. Bryan responded, and went on to do an over view of the expense budget. James Tralle noted that he appreciates the budget time table process Staff has adopted, noting that it is more efficient. James Tralle moved to approve the Budget for 2001. John Dietz seconded the motion. Motion carried 3-0. 5.6 Review Location for proposed Water Tower and Well#7 Site Plans and time frames for Well #7 and a Water Storage facility were discussed, with special regards to the tower. Staff is requesting authorization to present the well and water tower location to the City Council and to secure the locations for these future facilities. Authorization is also requested to secure bids for the water tower to be awarded at the December 2000 Commission Meeting. Bryan Adams advised that soil borings have been completed, indicating Site 5 to be suitable. George Zabee moved to authorize Bryan Adams, General Manager to approach City Council for approval, to secure the location for these future facilities, and to secure bids for the water tower to be awarded at the December 2000 Commission Meeting. James Tralle seconded the motion. Motion carried 3-0. 6.1 Review GRE 2001 Wholesale Electric Rate Bryan Adams updated the Commission on the projected 2001 rate structure of Great River Energy. There was general discussion, with no action necessary. Page 4 Regular meeting of the Elk River Municipal Utilities Commission November 14, 2000 6.2 Review Policy for Winter Service Line Installation Darrell Thompson, City Councilman, is concerned that the Utilities requires customers to dig their own trenches for electrical connections in the winter time, but are still charged the same amount as when the Utility does the trenching in warmer weather. John Dietz inquired why we do not trench in the winter, and feels some adjustment should be made. Glenn Sundeen responded,by advising that the ERMU does not have the equipment to trench in the winter,however,we still layout and mark the trench. Man hours are nearly equal for winter and summer. It was noted that several utilities require customers to supply their own trench year round. John Dietz requested Staff to conduct a survey on costs of trenching, as well as who does the trenching; survey to be presented to Commission at the December 2000 meeting. 6.3 Review Results from Customer Visits A report from Vance Zehringer regarding his Key Account Visits for the year 2000 was reviewed. John Dietz initiated a discussion regarding demand customers. It was noted that Vance is suggesting Peak Controls. James Tralle sees an advantage to doing energy audits. It is the consensus of the Commission that the report exhibits good public relations. This report was for discussion and comments only, no action necessary. Other Business Bryan Adams updated the Commission on: Downtown Committee meeting. The possibility of relocating to the present First National mortgage offices site by the Utilities. Progress of the wind turbine, which has the foundation in, construction to begin in January. John Dietz asked Staff about larger businesses filtering their water. David Berg advised that he believes the filtering to which he is referring, is done via water softeners. The next regular meeting of the Elk River Municipal Utilities Commission will be held December 12, 2000, at 4:00 P.M. in the Utilities offices. James Tralle moved to adjourn the November 14, 2000 meeting of the Elk River Municipal Utilities Commission. George Zabee seconded the motion. Motion carried 3-0. The November 14, 2000 regular meeting of the Elk River Municipal Utilities Commission adjourned at 5:25 P.M. Respectfully submitted, Patricia Hemza Office Manager