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03-09-1999 ERMU MIN ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE ELK RIVER UTILITIES COMMISSION HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE MARCH 9, 1999 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; Patricia Hemza, Office Manager Others Present: Dave Anderson, Softball Association 1. Call meeting to order at 4:00 P.M.. March 9, 1999 2. Consider Utilities Agenda Bryan Adams will have two informational items to add under Other Business. James Tralle moved to approve the Utilities Agenda, with the two additions under Other Business. John Dietz seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda James Tralle moved to approve the Consent Agenda as follows: 2-16-99 Minutes February Check Register Financials 5.1 Review and Consider Pinwheel Ball Field Contribution Dave Anderson appeared to request relief from charges for electrical services for ballfield lighting. He outlined the improvements to the fields, indicating that if the Softball Association were to pay the electric bills for lighting, improvements would be curtailed. He feels the participants would not be able to afford increased charges for playing. Mr. Anderson also suggested that he would like to see the Demand Meters removed, and a different rate designed for the ballfields. He also stated that he feels the Softball Association can do more for the Community than paying for electrical consumption. Discussion by the Commission centered on the setting of precedents, why the electrical charges do not fall under the City Recreation Budget, and ways to soften the amount paid by the Association. George Zabee indicated that he is in favor of increasing the donations, rather than removing the Demand Meter. John Dietz feels different metering would be appropriate. James Tralle expressed Page 2 Regular Meeting of the Elk River Municipal Utilities Commission March 9, 1999 concern about setting a precedent for similar organizations who might ask for rate relief in the future. John Dietz moved to donate 80% of the costs for electricity for the Ballfields, for an indefinite amount of time,retroactive to the 1998 season. George Zabee seconded the motion. Motion passed 3-0. 5.2 Well #6 and Freeport Water Tower Painting Up-date A verbal presentation regarding progress of Well#6 was given by Robert McCartney. He reported that the well has been completed and video-taped. Bryan Adams advised the Commission about the construction schedule for the Freeport Water Tower project. Tower rigging and structural repairs will begin the week starting March 15, 1999 in advance of the painting schedule. 5.3 Review WAC Fees for Sherburne County Jail Project Sherburne County requested a reduction in WAC fees (water availability charges)regarding the county jail construction project, previously discussed at the September 15, 1998 regular meeting of the Elk River Municipal Utilities. James Tralle moved to reduce the WAC to .8 units per 2.5 beds for the jail complex. George Zabee seconded the motion. Motion carried 3-0. The December 1998 invoice that was billed will be amended to reflect the change in fees. 5.4 Review CBD Visioning Process and Up-date Bryan Adams up-dated the Commission on the status of the Visioning Process regarding the downtown area, and how it affects the Elk River Municipal Utilities. Discussion between staff and commission followed, with no action necessary. 5.5 Review and consider Water Rules for Procedure Manual The proposed water rules for the procedure manual were presented at the February, 1999 meeting and discussed. No action was taken in anticipation of a change in the section pertaining to backflow preventers. The section on backflow preventers now places the responsibility on the Elk River Utilities. Discussion regarding the program for future commercial and industrial customers was Page 3 Regular meeting of the Elk River Municipal Utilities Commission March 9, 1999 discussed, with questions by the Commission and response from Staff. George Zabee moved to adopt the Water Rules, previously presented with changes to the backflow prevention section to be included in the Elk River Municipal Utilities Procedure Manual. John Dietz seconded the motion. Motion carried 3-0. 6.1 Review ERMU Annual Report to City Council The Annual Report to be presented to the Elk River City Council was reviewed by the Commission. Bryan Adams particularly asked Commission to note the section on accomplishments achieved in 1998. James Tralle asked that the MDH Inspection Report, which recommends chlorination of the water system, be included with the Annual Report. 6.2 Review State of MN Municipal Water System Inspection Report Staff reviewed the Minnesota Department of Health's annual report on the Elk River Municipal Water System, with recommendations. Bryan Adams advised that the lack of recommendations is an example of the excellent operation and maintenance of the Water System by staff. Bryan Adams further up-dated the Commission of the Chlorination process beginning in 1999 with recommendations by the MN Department of Health. 6.3 Consider Replacement for Staff Retirement The retirement of Robert McCartney, and subsequent replacement possibilities were discussed. Bryan Adams offered a summary of job qualifications, duties and responsibilities. Wording, advertising and posting of the position were reviewed, with suggestions by Commission. John Dietz directed Bryan Adams to meet with Lori Johnson, City of Elk River to evaluate the public works system, and to survey other Cities. John Dietz moved to post the job opening within the Utilities, and to advertise for the position. George Zabee seconded the motion. Motion carried 3-0. 6.4 Proposed Wind Turbine Project Bryan Adams informed the Commission of the possibility of a Wind Turbine Project that may be constructed in our service territory. Ramifications and associated issues were discussed. Commission was up-dated on the progress of Page 4 Regular meeting of the Elk River Municipal Utilities Commission March 9, 1999 the proposed Gas Turbine Project. This project is pending, depending upon the outcome of proposed legislation on exempting gas peaking plants from property tax. 6.5 Review Electric Rate Comparisons American Public Power Association's electric rate comparisons for year 1977 were reviewed, with comments by Staff and Commission. Other Business 1. A copy of a letter from Paul Steinman, Director of Economic Development to Northstar Die Casting, regarding their Economic Development Loan was reviewed by Staff and Commission. 2. Bryan Adams advised the Commission of the possibility of purchasing land from the State of Minnesota for Well #7. The location was clarified for Commission as well as the fact that the purchase could take as long as two years. John Dietz moved to direct Staff to explore the possibility further, and to hire Bud Storm of Evergreen Land Services to do the ground work for purchase. George Zabee seconded the motion. Motion carried 3-0. The next scheduled meeting of the Elk River Municipal Utilities Commission will be April 13, 1999. John Dietz moved to adjourn the March 9, 1999 Regular meeting of the Elk River Municipal Utilities Commission. George Zabee seconded the motion. Motion carried 3-0. The March 9, 1999 Regular meeting of the Elk River Municipal Utilities Commission adjourned at 6:50 P.M. Respectfully submitted, C:1;2)62Azzc;?,_.)/afycz1 Patricia Hemza Office Manager