12-08-1998 ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
DECEMBER 8, 1998
Members Present: President, George Zabee; Vice Chairman, 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: Pat Klaers, City Administrator; Lori Johnson, Assistant City
Administrator
1. Call meeting to order at 4:00 P.M.December 8, 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:
11-9-98 Special Meeting Minutes
11-10-98 Minutes
November Check Register
Financials
John Dietz seconded the motion. Motion carried 3-0
5.1 Review Water and Electric Rates for 1999
Staff reviewed the present Water and Electric Rates with the Commission, along
with an analysis of the rates and the Demand Customer Load Factor and Bill
comparisons for customers. Rates appear to be sufficient at this time and no
changes are recommended.
James Tralle suggests that the Commission and Staff study the Commercial
electrical installation/connection fees. Discussion followed.
Rates will further be discussed at the January, 1999 meeting, when the Utilities
has received purchased power costs from Connexus/UPA for 1999.
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Regular meeting of the Elk River Municipal Utilities Commission
December 8, 1998
5.5 Up-date on Eastern Area Project
Pat Klaers, City Administrator and Lori Johnson, Assistant City Administrator
appeared to discuss the Project with the Commission. Pat Klaers discussed his
memo to the Mayor and City Council, as well as the funding of the project and
the bid results. Pat Klaers asked for a Utility commitment in the form of a
motion stating the limit the Water Utility will fund the $800,000.00 shortfall.
The possibility of using TIF monies to fund the Water and Electric shortfalls
was also discussed.
Further discussion followed, with Bryan Adams commenting that the Electric is
a large part of the Eastern Area Development, which also contains a large
shortfall, and he does not feel that it has been addressed.
The Elk River Utilities Commission will consider action in January, 1999 on the
amount the Water Utility will fund the shortfall.
5.2 Review and adopt NSF Check Policy
Present policy dictates that bills are due on the 15`h of each month. Any account
not paid at that time receives a penalty. Occasionally a payment due on the 15`h
will be paid with a check that becomes NSF.
James Tralle moved to adopt a policy stated: Any check marked NSF (non-
sufficient funds) that has not been resolved by the due date, given in payment
for services due on the 15th of the month, shall be imposed a $20.00 charge,
and assessed the penalty of 10%.
5.3 Up-date proposed Gas Turbine Project
Bryan Adams up-dated the Commission on the progress of the Gas Turbine
Project. The site survey is being completed, a financial analysis is in progress by
UPA and Springsted is running different payment schedules based upon
different assumptions. It is recommended that the Utilities use a designated
financial and legal team.
Commission and Staff continued discussion of the project with several
scenarios discussed.
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Regular Meeting of the Elk River Municipal Utilities
December 8, 1999
James Tralle moved to use Jim O'Meara of Briggs & Morgan as Bond
Council, Andy Shea of McGrann, Shea, Franzen, Carnival, Straughn and
Lamb as Legal Advisor, David McGillvary of Springsted as Bond Advisor,
and Solomon Smith Barney as Bond Underwriters. John Dietz seconded the
motion. Motion carried 3-0.
5.4 Review and adopt LED Signal Light Proposal
City Engineer, Terry Maurer solicited and received proposals to furnish and
install Emergency Vehicle Preemption (EVP) system and LED signal lights
at twelve intersections in Elk River. A Cooperative Agreement with Minnesota
Department of Transportation(MNDOT) assures the cost sharing in the project.
James Tralle moved to approve authorization to proceed with the LED Signal
Light Project. John Dietz seconded the motion. Motion carried 3-0.
Other Business
There was no other business.
James Tralle moved to adjourn the December 8, 1998 meeting of the Elk River
Municipal Utilities Commission. John Dietz seconded the motion. Motion carried 3-0.
The meeting of the Elk River Utilities Commission adjourned at 5:25 P.M.
The next scheduled meeting of the Elk River Utilities Commission will be
January 12, 1999.
Respectfully submitted,
? a./
� V
Patricia Hemza
Office Manager
1 / ELK RIVER MUNICIPAL UTILITIES
322 King Avenue
w Elk River, Minnesota 55330
Phone (612) 441-2020
• Fax (612)441-8099
To: Elk River Municipal Utilities Commission Dec. 2, 1998
George Zabee
John Dietz
Jim Tralle
From: Bryan C. Adams
Subject: Proposed LED Signal Light Project
At the September 15, 1998 ERMUC meeting we discussed the possibility of installing Light
Emitting Diode (LED) lights instead of standard incandescent light bulbs in the signal lights.
Our initial economic studies indicated a very good payback time of 2.2 years.
City Engineer, Terry Maurer has solicited and received proposals to furnish and install
Emergency Vehicle Preemption (EVP) system and LED signal lights at twelve intersections in
Elk River. The City of Elk River has developed a Cooperative Agreement with Minnesota
Department of Transportation (MN DOT). MN DOT is willing to cost share in such a project.
The attached sheet reflects the economics of such a project along with the intersections
involved.
The total LED contract price with 8% for engineering is $135,739. ERMU's portion of the
cost is $75,800 and the payback is approximately 1.75 years with the assumptions outlined
on the attached sheet.
Staff has checked the physical performance and maintenance of these LED lights. They
have proven to have good performance to date.
Staff recommends authorization be given to proceed with this project. Killmer Electric Co.
of Maple Grove, MN, was low bidder on this project. The City of Elk River has awarded this
project to the low bidder contingent upon this Commission's authorizing the LED portion of
the project.
Much of the credit for the initiation, success, and good bid numbers for this project should
be given to Terry Maurer and his staff. He has spent a lot of time and effort in developing an
agreement with MN DOT along with working out the other details.
r .
Sheetl
b,
Elk River Municipal Utilities
LED Signal Light Cost Comparison 10/1/98
Change Entire Head
Circular Circular Circular Arrow Arrow Arrow Hand only Walk/Not Walk
Red Green Yellow Red Green Yellow Pedestrian Pedestrian
Installation Costs $43 $69 $49 $42 $49 $40
Material Costs $108 $320 $148 $72 $134 $82
Total Unit Cost $151 $389 $197 $114 $183 $122 $162
Minutes on per Hour 29 29 2 44 14 2 45
Wattage of LED 15 18 25 18 22 30 20
Wattage of incandescent 150 150 69 116 116 116 116
Wattage Savings 0.135 0.132 0.044 0.098 0.094 0.086 0.096
Intersection
TH 169&TH 10 10 7 7 3 3
TH 169 Main St 12 12 12 8 8 8 12
TH 169&School St 12 12 12 8 8 8 8
TH 169&193 Av 14 14 14 4 4 4 12
TH10&Main St 10 10 10 2 2 2 8
TH 169& 197 Av 0 15 15 0 4 4 8 0
Th 10&Jackson 12 12 12 2 2 2 8
Th 10&Proctor Av 12 12 12 2 2 2 12
Th 10&Joplin 15 15 15 4 4 4 12 12
School St&Jackson Av 12 12 12 0 0 0 8
School St&Freeport Av 10 10 10 4 8 4 8
Total#of Lights 119 131 131 34 45 41 152 653
#Lights by Elk River 65.5 73 73 19 25 21 152
Total Costw/8%Eng $19,407 $55,036 $27,872 $4,186 $8,894 $5,402 $135,739
ER Cost w/8%Eng. $10,682 $30,669 $15,531 $2,339 $4,941 $2,767 $8,872 $75,800
Payback in Years ( Electric Savings Only)
Payback @$0.04 3.9 10.5 230.7 2.7 14.3 67.2 2.3
Payback @$0.05 3.1 8.4 184.6 2.2 11.4 53.7 1.9
Payback @$0.06 2.6 7.0 153.8 1.8 9.5 44.8 1.5
Payback @$0.07 2.2 6.0 131.8 1.6 8.2 38.4 1.3
Currently the incandescent bulbs are changed out every 6 to 12 momths @ 45 to 60 minutes for 3 bulbs
LED lights are projected to last 10 years.Assume they only last 5 years and the Incandescent lights last 1 year,
the labor savings would be approximately$20 x 4 years=$80/light
Payback in Years ( Electric&Labor Savings)
Payback @$0.04 0.4 6.9 75.0 -0.4 3.9 -12.5 -0.9
Payback @$0.05 0.3 5.5 60.0 -0.4 3.1 -10.0 -0.7
Payback @$0.06 0.3 4.6 50.0 -0.3 2.6 -8.3 -0.6
Payback @$0.07 0.2 3.9 42.9 -0.3 2.2 -7.1 -0.5
Savings per Year $3,401 $3,661 $84 $1,070 $432 $51 $4,793 $13,493
Project Payback ($75800-$80'653 bulbs)/$13493 = 1.75 Years
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