01-13-1998 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
JANUARY 13, 1998
Members Present: President,John Dietz; Vice Chairman, George Zabee; Trustee, James
Tralle
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.January 13, 1998
2. Consider Utilities Agenda
Bryan Adams has one addition,to become 6.3, Request for Street Light. Mr.
Tralle moved to approve the January 13, 1998 Agenda, as amended. Mr. Zabee
seconded the motion. Motion carried 3-0.
2.a Election of officers for 1998
Motion by Mr. Tralle, seconded by Mr. Zabee to nominate the following
slate of officers for 1998:
George Zabee President
James Tralle Vice Chairman
John Dietz Trustee
Motion carried 3-0.
Mr. Zabee, as 1998 President of the Elk River Municipal Utilities
Commission took over the chair of the 1-13-98 meeting.
2.b Designate First National Bank official depository for 1998
Mr. Tralle moved to designate First National Bank of Elk River as the
official depository of the Elk River Municipal Utilities for 1998. Mr. Dietz
seconded the motion. Motion carried 3-0.
2.c Designate Elk River Star News official newspaper for 1998
Mr. Tralle moved to designate the Elk River Star News official newspaper
for 1998. Mr. Dietz seconded the motion. Motion carried 3-0.
Page 2
Regular meeting of the Elk River Utilities Commission
January 13, 1998
3. *Consider Consent Agenda
During discussion of the financials, Mr. Dietz questioned the distinction of
Industrial/Commercial Demand customers. Bryan Adams was instructed by the
Commission to see what other Utilities are doing regarding the Demand customers.
Mr. Tralle moved to approve the Consent Agenda as follows:
12-9-97 minutes
Check Register
Financials
5.1 Up-date Customer Letters concerning fee changes
Bryan Adams reviewed the letters that were sent to all electric demand customers
and home builders regarding the changes in the rates and fees, effective 1-1-98. He
advised that there was only one query in response.
5.2 Review Priority List and Policy Manual
At the September, 1996 Elk River Municipal Utilities Commission meeting, a list of
priorities was reviewed and established. The status of the list was discussed,noting
that all items have either been completed, are on-going or in progress. Mr. Zabee
questioned the success of the Safety Program, and the progress of the mapping.
Bryan Adams and Glenn Sundeen responded.
The Elk River Municipal Utilities Policy and Procedure Manual was presented along
with comments regarding several sections. During reviewal of the tariff section, Mr.
Tralle questioned developer cost and discussion followed.
Mr. Tralle moved to receive and file the Elk River Municipal Utilities Policy and
Procedure Manual. Mr. Dietz seconded the motion. Motion carried 3-0.
5.3 Review Preliminary Bond Study from Springsted
The draft copy of the Springsted study to determine the financial position based on
10 year projection of revenues and expenses, the maximum bonding capabilities of
the Water Department, and the continuation of the segregation of the water rates and
WAC fees was reviewed and discussed. Addressed were items concerning water rates
subsidizing expansion, depreciation, appropriate levels of reserves, and the level of
Page 3
Regular meeting of the Elk River Utilities Commission
January 13, 1998
Administration Capital expense that the Water Department assumes.
It was the concensus of the Commission to direct Staff to have Springsted conclude
the study. Staff was also directed to conduct the Sensitivity analysis.
5.4 Review proposed Eastern area Development
The two proposed options that were presented to the City Council were discussed,
along with portions of the feasibility study that reflect anticipated costs. Mr. Tralle
commented on the possibility of exclusion of facilities construction, and questioned
the shortfalls in proposed financing. After further discussion, it was agreed that more
discussion should take place with the City, including TIF monies. Also discussed and
debated was the issue of underground or overhead for the County#12 rebuild,
concerning the costs and the aesthetics.
5.5 Miscellaneous Water Issues
Installation of a large surge valve at Well #3, status of Well#2,the progress of
Well#6 on the land purchased from ISD 728, and the paint on the Freeport Avenue
water tower were reported on.
Bryan Adams gave the Commission a breakdown of the differences between the
Electric and Water departments expenses and revenues. Discussion of the detail of
involvement by the Commission concerning purchased items was discussed. Staff
was directed to return with a draft of a purchasing policy for Commissions reviewal.
6.1 Possible Surge Protector Program
Bryan Adams explained the possibility of offering surge protection to our customers.
He exhibited the device and the way it works. Staff was directed to return to the
Commission with details of the offering of surge protection as a customer service.
6.2 Roma Tool-Northstar Die Casting
Bryan Adams advised the Commission that Northstar Die Casting will be leasing
the Roma Tool facility in the Industrial Park. Northstar will become our largest
electric user. Bryan Adams recommends offering Northstar our EDIR Rate and
furnishing a larger transformer for their service.
Mr. Dietz moved to approve the EDIR rate and transformer for Northstar Die Casting.
Mr. Tralle seconded the motion. Motion carried 3-0
Page 4
Regular meeting of the Elk River Utilities Commission
January 13, 1998
6.3 Request for Street Light (this item was moved to be added under 2.)
Glenn Sundeen advised the Commission that the Manager of Ron's Foods has
requested a street light at Main Street and County Road 12. The Street Lighting
Committee has approved the request.
Mr. Zabee moved to approve a street light at Main Street and County Road 12.
Mr. Tralle seconded the motion. Motion carried 3-0.
Mr. Tralle moved to adjourn the January 13, 1998 Elk River Utilities Commission
meeting. Mr. Dietz seconded the motion. Motion carried 3-0.
The meeting of the Elk River Utilities Commission adjourned at 5:45 P.M.
The next scheduled meeting of the Elk River Utilities Commission will be
February 10, 1998.
Respectfully submitted,
Patricia Hemza
Office Manager