09-15-1998 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
September 15, 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: Joseph Pallansch
1. Call meeting to order at 4:00 P.M., September 15, 1998
2. Consider Utilities Agenda
John Dietz and Bryan Adams each have an additional item 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
James Tralle moved to approve the Consent Agenda as follows:
8-11-98 Minutes
August Check Register
Financials
John Dietz seconded the motion. Motion carried 3-0.
5.1 Presentation by Joseph Pallansch
Joseph Pallansch, who acts as a Contractual Engineering Consultant to the Elk
River Municipal Utilities, appeared before the Commission to present a summary
of accomplishments and talks he has implemented for the Utilities. Mr. Pallansch
requests that his rate for Electrical Consulting services be increased. Mr.
Pallansch further requests a written response to his proposal.
Commission will review the presented file, and respond at a future date.
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Regular Meeting of the Elk River Municipal Utilities Commission
September 15, 1998
5.2 Review and Award Contract to build Well#6 Filter Facility
Bids were received at 2:00 P.M. September 10, 1998 for the Well #6 Filter
Facility. The bid tabulation was presented, with recommendations from Bryan
Adams and Howard R. Green Company, to award the contract to En-Comm
Midwest, as lowest bidder.
James Tralle moved to award the bid for Well #6 Filter Facility to En-Comm
Midwest. John Dietz seconded the motion. Motion carried 3-0.
5.3 Up-date proposed Gas Turbine Project
Bryan Adams reviewed the progress and opportunities involved with the Gas
Turbine project. Exploration of the proposed project must continue before a
joint meeting with City Council can be scheduled.
5.4 Up-date AEC/UPA Power Contract Negotiations
Bryan Adams reported on the negotiation status. UPA has indicated the
Generation Credit will be raised from $1.65 to $2.50, and further, that the
rate will be based on Urge Tests. UPA will also consider our other requests.
AEC does not appear to be amenable to our requests at this time. At some point
in time, mainly due to deregulation issues, indications point to the fact that the
ERMU Power Purchase Contract with AEC will need to be revised or transferred
to UPA.
6.1 Review and Award Contract to De-Water Power Plant Basement
Quotes from two companies were presented regarding the De-Watering of the
Power Plant basement. It was noted that verbal approval was
given previously for the lowest bid.
John Dietz moved to award the contract to De-Water the Power Plant
Basement to Brenteson Construction. James Tralle seconded the motion.
Motion carried 3-0.
6.2 Review proposals for new Office and Power Plant Telephone System
Staff presented a history of the telephone systems presently used. Reasons for
an immediate up-grade were discussed, with regard to the status of the system
we now have. Concern with the need to communicate with the plant, voice mail,
a reliable UPS system and Y2K are needs to be addressed at this time.
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Regular meeting of the Elk River Municipal Utilities Commission
September 15, 1998
James Tralle moved to award the contract for a new telephone system to
Lucent Technologies. George Zabee seconded the motion. Motion carried 3-0.
John Dietz instructed Staff to find out what kind of maintenance agreement will
be available after the one-year warranty has expired.
6.3 Review Progress on 1999 Budget
Budget items presented and discussed are as follows:
1. 10 Year Personnel Projections
2. Purchase Power Cost Projections
3. Electric Sales Revenue Projections
4. Preliminary 10 Year Capital Project Projections
Staff indicated the reports are preliminary. James Tralle indicated that he is
interested in the possibility of bonding for Capital items, since interest rates
are presently low.
6.4 Consider Project to install LED lights on Traffic Signals
The Elk River Municipal Utilities maintain the signal lights for the City of
Elk River along with providing the electrical energy to operate them. Energy
City has asked the Utilities to investigate and install Light Emitting Diode (LED)
lights instead of the standard incandescent light bulbs in the Street Lights.
They use less electricity and last longer. The City of Elk River has developed
a Cooperative Agreement with the Minnesota Department of Transportation
(MN DOT) . MN DOT is willing to cost share in such a project at a rate of
approximately 44%.
Recommendations for study of the project, and inclusion into the 1999 budget for
the purpose of noting the effect were concurred with.
Other Business
Commissioner Dietz reviewed the information concerning health insurance benefits to
employees. He requests the Utility contribution to employee health insurance be
discussed during the 1999 wage negotiations.
Bryan Adams advised the Commission of discussion of WAC fees in conjunction with
the new jail being constructed. Discussion followed.
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Regular meeting of the Elk River Municipal Utilities Commission
September 15, 1998
With no other business to discuss, John Dietz moved to adjourn the September 15, 1998
meeting of the Elk River Utilities Commission. James Tralle seconded the motion.
Motion carried 3-0. The September 15, 1998 meeting of the Elk River Utilities
Commission adjourned at 5:45 P.M.
The next scheduled meeting of the Elk River Municipal Utilities Commission will be
October 13, 1998 .
Respectfully submitted,
a/
Patricia Hemza
Office Manager