08-11-1998 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
August 11, 1998
Members Present: President, George Zabee; Vice Chair, James Tralle; Trustee, John
Dietz
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCartney, Water Superintendent; Patricia Hemza, Office Manager
Others Present: Hank Duitsman, Mayor; Larry Lawson,North Star Die Casting
1. Call meeting to order at 4:00 P.M.,August 11, 1998
2. Consider Utilities Agenda
Bryan Adams offered three additions to the 8-11-98 Agenda, to be discussed
under other business, and to move 6.1 to the first discussion item. George Zabee
offered one addition to the 8-11-98 Agenda, to be discussed under other business.
James Tralle moved to approve the Utilities Agenda, with the additions to Other
Business. John Dietz seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
After discussion of the Check Register and Financials, James Tralle moved to
approve the Consent Agenda as follows:
7-14-98 Minutes
July Check Register
Financials
John Dietz requested an analysis of health benefits to the employees of the
ERMU. George Zabee requests the numbering of the financials.
6.1 Review Billing complaint with North Star Die Casting
Larry Lawson appeared before the Commission to request forgiveness of
late payment penalties. The Commission reviewed the billing and payment
history with Mr. Lawson and discussion followed.
James Tralle moved to have the penalties remain on the account of North Star
Die Casting. John Dietz seconded the motion. Motion carried 3-0.
Staff is directed to mail future North Star Die Casting as Certified Mail.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
August 11, 1998
5.1 Review issues for UPA/AEC Power Supply Contract
The history of our purchased power billings was discussed, with input from Hank
Duitsman,who is a former ERMU Commissioner. The pros and cons of
contracting with UPA, as a possible non-voting member, instead of contracting
with Anoka Electric Coop were further discussed. It is the concensus of the
ERMU Commission that becoming a non-voting member of United Power would
be the most desirable option. Staff was directed to pursue negotiations with
UPA/AEC.
5.2 Review Proposed Gas Turbine Project
The Letter of Intent from UPA regarding the proposed gas turbine project was
discussed, along with the ramifications of such a project. The amount of bonding
is a concern, regarding the effect it might have on the City bonding costs.
Commission is in favor of pursuing the idea of the addition of electrical
generation, and has directed Bryan Adams to go to the City Council, as a first
step and secondly to sign the Letter of Intent with UPA.
5.3 Review and consider Final Contract for Landfill Gas Generation with Power
Strategies
The revised version of the Agreement for the Sale of Power between ERMU
and RECO Ventures,has been reviewed by legal counsel and was presented to
the Commission.
James Tralle moved to execute the document,with any minor work revisions.
John Dietz seconded the motion. Motion carried 3-0.
5.4 Review and consider information for Disinfecting Water Distribution System
Statistical information regarding Water Distribution System from the
Minnesota Department of Health, and an article from TIME magazine, titled
"Anatomy of an Outbreak"were presented to the Commission. Discussion of the
necessity of the program followed with attention to the details and timing of such
a project. George Zabee continues to voice his disapproval of the venture.
Recommendation for proceeding with the Disinfecting of the Water Distribution
System at the time water and sewer is on line in the Eastern Area Development
was given by Bryan Adams.
Page 3 Regular meeting of the Elk River Municipal Utilities Commission
August 11, 1998
James Tralle moved to proceed with Disinfecting the Water Distribution System
when the Eastern Area Development comes on line. John Dietz seconded the
motion. Motion carried 2-1. George Zabee voting nae for the reason, that he
does not deem the project to be necessary.
5.5 Up-date Water projects and projected bond issue
Cash flow for major capital projects in 1998 and 1999 for the Water Department
were reviewed. The largest expenditures will be the Well #6 project and the
Freeport Water Tower painting project. Budgetary planning indicates the
financing of the Well#6 be done with bonds.
James Tralle moved to bond for the entire Well #6 facility. John Dietz seconded
the motion. Motion carried 3-0.
6.2 Review changes to Employee Handbook
Up-dates regarding 27. EMPLOYEE CLOTHING , 15. SICK LEAVE and the
addition of 30. REPORT OF PERSONNEL CHANGES were discussed. It is
understood that the changes in no way reflect any action directed toward any
individuals; it only clarifies policies that are in place.
James Tralle moved to approve the changes to the Employee Handbook. John
Dietz seconded the motion. Motion carried 3-0.
Other Business
George Zabee reported on a discussion he had with Joe Pallansch, who is a Contractual
Engineer for the ERMU. Joe Pallansch has requested that he be allowed to speak at a
future Utility meeting or to meet with each Commissioner at another time. The
concensus was to allow Joe Pallansch ten minutes at the next Utility meeting.
Bryan Adams and Robert McCartney up-dated the Commission on the progress being
made regarding Well #6.
The City of Monticello has contacted the ERMU regarding a possible purchase of a
booster station. The station is situated in Lafayette Woods and is no longer being used.
James Tralle moved to authorize Bryan Adams to pursue the possible sale of the booster
station to the City of Monticello. John Dietz seconded the motion. Motion carried 3-0.
Page 4
Regular meeting of the Elk River Municipal Utilities
August 11, 1998
At the 5-19-97 ERMU meeting, a 40' wide side lot easement recommendation for water
mains was adopted. At this time there has been requests to change the requirement to
20'. The dangers of this approval were weighed against the advantages to development.
Bryan Adams reluctantly recommends a 20' easement be allowed if polyethylene pipe is
used.
James Tralle moved to allow 20' wide side lot easements, only if polyethylene pipe is
used. John Dietz seconded the motion. Motion carried 3-0.
With no other business to discuss, James Tralle moved to adjourn the August 11, 1998
meeting of the Elk River Utilities Commission. John Dietz seconded the motion.
Motion carried 3-0. The August 11, 1998 regular meeting of the Elk River Utilities
Commission adjourned at 5:55 P.M.
The next scheduled meeting of the Elk River Municipal Utilities Commission will be
September 15, 1998 at 4:00 P.M. The meeting date was changed from the second
Tuesday,to allow the approval of Well#6 bids, which will be let on September 10, 1998.
Respectfully submitted,
Patricia Hemza
Office Manager