10-13-1998 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
October 13, 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: Steve Shurts, UPA
1. Call meeting to order at 4:00 P.M., October 13, 1998
2. Consider Utilities Agenda
James Tralle moved to approve the Utilities Agenda as presented. John Dietz
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
9-15-98 Minutes
September Check Register
Financials
John Dietz seconded the motion. Motion carried 3-0.
5.2 Up-date on Proposed Combustion Gas Turbine Project with UPA
Steve Shurts, Manager of Generation Development for UPA appeared to discuss
UPA's view of the proposed project with time schedules. He covered the Project
Overview, Specific Equipment, Transmission, Fuel Supply, Permitting and
Regulatory Requirements, Project Scheduling, and Project Cost Estimates.
Discussion followed with questions and answers. The Commission is in favor
of pursuing research on the Project. Bryan Adams indicated that a Joint Meeting
with the City Council of Elk River is in order at this time. A meeting will be
scheduled with the City Council for Monday,November 9, 1998 at City Hall.
Bryan Adams is directed to research the additional costs that have appeared with
regard to bonding for the project.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
October 13, 1998
5.1 Continue Discussion on compensation for Contract Engineer
Joseph Pallansch, who acts as a Contractual Engineer to the Elk River Municipal
Utilities appeared before the Commission on September 15, 1998 to present a
summary of duties he performs. He requested a proposal for an increase in his
Contract Rate. The Commission continued the discussion at this meeting in
regard to the request. It is the consensus of the Staff and the Commission that
Joseph Pallansch is a valuable resource. George Zabee explained his reasons for
supporting an increase, and James Tralle echoed the statements.
James Tralle moved to set a rate for Engineering Services by Joseph Pallansch
at $20.00 per billing hour. George Zabee seconded the motion. Motion carried
3-0.
5.3 Review and award Contract to Paint Freeport Water Tower
Bids were received on October 8, 1998 for the Freeport Water Tower Project.
Staff and KLM Engineering reviewed all bids and recommend the Contract be
awarded to the low bidder.
John Dietz moved to award the bid to recondition the 1,000,000 gallon elevated
storage reservoir, Freeport Avenue Tower to Swanson&Youngdale as low
bidder. James Tralle seconded the motion. Motion carried 3-0.
5.4 Review progress on 1999 Budget
The preliminary 1999 Budget was presented and discussed. Capital projections,
normal Distribution Construction, and ten year forecasts were particularly
scrutinized. It was the consensus that a finalized formal budget be presented at
the November meeting, for approval by the Commission.
Donations of electricity for the Youthbound site were also discussed.
James Tralle moved to donate electrical usage for the Youthbound site. John
Dietz seconded the motion. Motion carried 3-0.
5.5 Up-date Electric Deregulation Issues
Discussion of Electric Deregulation will be postponed to a future meeting.
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
October 13, 1998
5.6 Up-date East Elk River Project
Bryan Adams reported on the Public Hearing, held by the City Council, on the
proposed East Elk River Public Improvement Project. Discussion then centered
on the impact of the project regarding the Elk River Utilities, financial projections
and scheduling. The possibility of using TIF was brought up.
5.7 Review proposal for Plant Substation Project Up-grade
Bids were received for substation transformers for the power plant on
October 1, 1998. After reviewing and evaluating the bids, Staff recommended
awarding the bid to Jerry's Electric. The transformer bid by Jerry's is
re-manufactured rather than re-conditioned, as the other bidders proposed. This
will allow the electrical characteristics to more closely match the existing
transformer that the new transformer will be paralleled with.
James Tralle moved to award the bid for a plant station transformer to Jerry's
Electric, with directions to Staff to further examine the regulator issues for this
transformer. John Dietz seconded the motion. Motion carried 3-0.
6.1 Review Amendment to ERMU/UPA Power Transaction Agreement for
Diesel Generation Units
An Amendment to the Power Transaction Agreement between UPA and ERMU
was presented. The agreement increases the monthly capacity price to $2.50/KW/
month for a three year term.
James Tralle moved to authorize the signing of the Power Transaction Agreement
Ammendment. John Dietz seconded the motion. Motion carried 3-0.
6.2 Western Elk River Water Quality Issues
Staff advised the Commission of the consequences of the addition of water main
to the western Elk River Area. The new lines in combination with little water
consumption in the area is changing the way the water system must be operated
for safety. Bryan Adams assured the Commission that the Water Department is
closely monitoring the situation.
Other Business
None
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
October 13, 1998
With no other business to discuss, John Dietz moved to adjourn the October 13, 1998
meeting of the Elk River Municipal Utilities Commission. James Tralle seconded the
motion. Motion carried 3-0.
The October 13, 1998 meeting of the Elk River Utilities Commission adourned at 5:40
P.M.
There will be a Joint Meeting with the Elk River City Council on November 9, 1998.
The next regular scheduled meeting of the Elk River Municipal Utilities Commission
will be November 10, 1998.
Respectfully submitted,
Patricia Hemza
Office Manager