12-14-1999 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT THE ELK RIVER UTILITIES OFFICES
DECEMBER 14, 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; David Berg, Water Superintendent
1. Call meeting to order at 4:00 P.M.December 14. 1999
2. Consider Utilities Agenda
John Dietz moved to approve the Utilities Agenda, with the addition of the
status of MAPP. George Zabee seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
George Zabee moved to approve the Consent Agenda as follows:
11-9-99 Minutes
November Check Register
Financials
John Dietz seconded the motion. Motion carried 3-0.
5.1 Review GRE Wholesale Electric Rate
The recently adopted GRE wholesale electric rates for 2000 were reviewed. The
wholesale electric rate increased approximately 7.8% over 1999 rates. GRE's
projected rates to 2005 also reflect steady increases. Fuel cost adjustments will
be commonplace. By consensus, the Commission agreed to review the wholesale
and retail fuel cost adjustment on a quarterly basis.
The Elk River Municipal Utility portion of GRE's fuel cost adjustment from the
1999 summer is $263,886.
James Tralle moved to extend the Elk River Municipal Utility's retail fuel cost
adjustment for one more month, at 5 mils to recapture the full amount of the
wholesale fuel cost adjustment. George Zabee seconded the motion. Motion
carried 3-0.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
December 14, 1999
Elk River Municipal Utilities has the option by contract, to purchase 5% of power
and energy from sources, other than Great River Energy. The possibility of
utilizing landfill gas generation of the Elk River Landfill was discussed. The
Commission directed Staff to investigate the landfill gas generation opportunity.
Connexus Energy and Elk River Utilities must secure FERC approval for the new
wholesale electric rate. This process has started.
5.2 Review& Consider Proposed Dispersed Generator Program
The revised Dispersed Generator Program was again reviewed in light of GRE's
comparable program. Legal Council has reviewed this document.
John Dietz moved to implement the Dispersed Generation Program. George
seconded the motion. Motion carried 3-0.
5.3 Review& Consider Off Peak Electric Rate
The off-peak demand electric service proposal is a carry over from the
November, 1999 ERMU meeting. This proposed off-peak tariff is in
contradiction to GRE's new rate structure.
James Tralle moved to take no action on this off peak tariff, and to leave the
existing off peak tariff unchanged. George Zabee seconded the motion. Motion
carried 3-0.
5.4 Review & Consider Bids for Renovation of#4 Water Filter Plant
Staff presented a bid tabulation reflecting the bid results for renovating#4 Water
Filter Plant. A good discussion ensued concerning USEDA proposed arsenic and
radon rule. The proposed radon rule will require ERMU to implement a multi-
media mitigation program, emphasizing radon awareness in indoor air quality.
George Zabee moved to award the renovation of#4 Water Filter Plant to the
lowest responsive bidder, En-Comm Midwest. John Dietz seconded the motion.
Motion carried 3-0.
.
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Regular meeting of the Elk River Municipal Utilities Commission
December 14, 1999
5.5 Up-date on King& Main St.Redevelopment Project
Staff up-dated the Commission on the status of the vacant land at the Intersection
of King Avenue and Main Street. ERMU time frame, and the desire to own and
not lease, does not currently meet HRA objectives. The Commission feels this
site is a good location for future utility offices, when we outgrow the present
facility.
John Dietz moved to direct Bryan Adams to keep talking with HRA&Paul
Steinman, and try to negotiate an option on the property. George Zabee seconded
the motion. Motion carried 3-0.
5.6 Up-date Gas Turbine Projects
Staff up-dated the Commission on the status of the two proposed gas turbine
projects. The 50 NW gas turbine project with GRE is again on hold because this
project does not cash flow. Staff is still gathering information on the 2 MW gas
turbine for the power plant.
Other Business
MAPP members voted no to the restated agreement amendments which would allow
MAPP to form a Regional Transmission Organization. This vote killed the MAPP
organization and MAPP will merge with the MISO organization. The transmission
operation and systems reliability function will be in flux for years to come.
The next meeting of the Elk River Municipal Utilities Commission will be Tuesday,
January 11, 2000.
James Tralle moved to adjourn the December 14, 1999 meeting of the Elk River
Municipal Utilities Commission. John Dietz seconded the motion. Motion carried 3-0.
The December 14, 1999 meeting of the Elk River Municipal Utilities Commission
adjourned at 5:10 P.M.
cReectfully submitted,
lA /
1- eA:=7-1,4
/Bryan Adams
General Manager