10-04-1999 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER UTILITIES OFFICES
OCTOBER 4, 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
1. Call meeting to order at 4:00 P.M., October 4. 1999
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda, with one additional item
concerning Y2K from Bryan Adams. John Dietz seconded the motion. Motion
carried 3-0.
3. Consider Consent Agenda
George Zabee moved to approve the Consent Agenda as follows:
8-7-99 Minutes
September Check Register
Financials
John Dietz seconded the motion. Motion carried 3-0.
5.1 Review & Consider Bids for 2 - 69 KV Breakers
Bids were presented and discussed for the 2 - 69 KV Breakers, with
recommendations from staff to accept the apparent low bidder.
George Zabee moved to accept the bid from Alstom USA for 2 - 69 KV
Breakers. John Dietz seconded the motion. Motion carried 3-0.
5.2 Review Year 2000 Proposed Expense Budget
Discussion of the Budget centered on the unknown factor of the wholesale
purchased power rate. George Zabee asked several questions about line items
in the maintenance and distribution portion of the expense budget, with response
by Staff James Tralle suggested the possibility of paying off a portion of the
bonding debt early, and would like a future discussion of cash reserves. John
Dietz indicated that he would like to see a reserve set aside to enable the WAC
fees to stay at a constant rate.
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Regular meeting of the Elk River Utilities Commission
October 4, 1999
5.3 Up-date Superintendent Water& Electric Technologies
Bryan Adams advised that David Berg, has been hired as the new Water and
Electric Technologies Superintendent, and will begin training duties on Monday,
October 11, 1999.
John Dietz indicated that he feels the Commission should have been more
involved in the hiring of a Management position. George Zabee agreed with
John Dietz, but not to the point of interviews, only approval of hiring. Bryan
Adams responded by saying that due to time restraints and the lengthy process
of reaching a decision to hire a Water and Electric Technologies Superintendent,
he felt timing had become critical. Previous authorization was given from the
Commission President.
George Zabee moved to approve the hiring of David Berg, as Water and Electric
Technologies Superintendent. James Tralle seconded the motion. Motion carried
2-0, with John Dietz abstaining.
6.1 Review GRE Wholesale Fuel Cost Adjustment
Bryan Adams explained how the hot and humid weather in July caused the
wholesale cost of power to skyrocket, and how it affected the Elk River Utilities.
Initial indications are that an eight(8) mils increase for the months of October,
November, and December of 1999 will be made, causing an adjustment of
an additional $250,000 to the Elk River Municipal Utilities. Discussion followed
with James Tralle and George Zabee offering their views.
James Tralle moved to fund the entire added cost through retail rate cost
adjustment, contingent upon Great River Energy's final decision. This would
result in an increase of approximately $7.00 per month per customer, for
the months of October,November and December of 1999. John Dietz seconded
the motion. Motion carried 3-0.
6.2 Review ERMU Service Territory
The discussion of service territory is in response to questions from the
Commission at the August 1999 meeting regarding boundaries. A map
delineating the current, proposed, and ultimate service territory boundaries was
given to the Commission and further discussed. Questions and observations
regarding to service territory in Otsego arose, and James Tralle asked to be kept
informed of growth and how it will pertain to the Elk River Municipal Utilities.
Bryan advised that when de-regulation occurs, there may be a halt to further
acquisition; but is unsure when that will occur.
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Regular meeting of the Elk River Utilities Commission
October 4, 1999
6.3 Review and consider addition of one lineperson
Staff requests authorization to hire an apprentice lineperson to supplement
the existing crew of nine linepersons. Glenn Sundeen reviewed with the
Commission the need for an additional person. George Zabee indicated that he
believes that an additional crew, rather than one lineperson would be the ideal,
but concurs that at least one additional lineperson is necessary. James Tralle
asked about time frames in the hiring, with response by Glenn Sundeen.
George Zabee moved to authorize the hiring of an additional lineperson. John
Dietz seconded the motion. Motion carried 3-0.
Staff advised the Commission that Derek Ward, Lead Lineman formally
presented his resignation to Glenn Sundeen, October 4, 1999, giving two weeks
notice. Glenn Sundeen noted that Derek Ward has been a valued employee, and
is leaving to be closer to his family in northern Minnesota.
Staff is directed to begin the process of replacing Derek Ward.
Other Business
Bryan Adams advised Commission of the possibility of the City purchasing Y2K
insurance, and the need for the Utilities to participate.
George Zabee moved to approve the participation by the Utilities, if the City Council
makes the decision to purchase Y2K insurance coverage. James Tralle seconded the
motion. Motion carried 3-0.
Discussion of the chlorination problems and progress followed, with observations from
Commission and up-dates by Staff
The next meeting of the Elk River Municipal Utilities Commission will be Tuesday,
November 9, 1999, at 4:00 PM.
George Zabee moved to adjourn the October 4, 1999 meeting of the Elk River Municipal
Utilities Commission. James Tralle seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Utilities commission
October 4, 1999
The October 4, 1999 meeting of the Elk River Municipal Utilities Commission adjourned
at 5:30 PM.
Respectfully submitted,
Patricia Hemza
Office Manager