01-14-1997 ERMU MIN REGULAR MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICES
JANUARY 14, 1997
Members Present : President, James Tralle; Vice Chairman, John
Dietz; Trustee, George Zabee
Others Present : Bryan Adams, General Manager; Glenn Sundeen,
Line Superintendent; Robert McCartney, Water Superintendent;
Patricia Hemza, Office Manager
1 . Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the
Elk River Utilities Commission was called to order at
4 : 00 P.M. by President Tralle.
2 . Consider Utilities Agenda
Mr. Tralle moved to approve the 01-14-97 Agenda, with the
exception of moving 6 . 1 to before 5 . 1 . Mr. Zabee seconded
the motion. Motion carried 3-0 .
2 .a Election of officers for 1997
Motion by Mr. Tralle, seconded by Mr. Zabee to
nominate the following slate of officers for 1997 :
John Dietz President
George Zabee Vice Chairman
James Tralle Trustee
Motion carried 3-0 .
Mr. Dietz, as 1997 President of the Utilities Commission
took over the Chair of the 1-14-97 meeting.
2 .b Designate First National Bank official depository
for 1997
Mr. Tralle moved to designate First National Bank of
Elk River as the official depository of the Elk River
Municipal Utilities for 1997 .
Motion carried 3-0 .
Regular meeting of the Elk River Utilities Commission
January 14, 1997
Page 2
2 .c Designate Elk River Star News official newspaper
for 1997
Mr. Zabee moved to designate the Elk River Star News
as the official newspaper for the Elk River Municipal
Utilities for 1997 . Mr. Tralle seconded the motion.
Motion carried 3-0 .
3 .Consider Consent Agenda
Mr. Tralle moved to approve the Consent Agenda as follows :
12-10-96 Minutes
Check Register
Financials
6 . 1 Annual Report to City Council
Mr. Adams up-dated the Utilities Commission on his annual
report to the City Council on January 6, 1997 . He stressed
what challenges the Utilities are experiencing with electric
deregulation, and the tremendous growth in Elk River,
including reviewing the graphs on Electric and Water
consumption. He provided information explaining the past
accomplishments and goals for the Utilities to continue to
provide reliable, quality, and cost effective electric and
water utility services .
5 . 1 Adopt 1997 Budget
The 1997 Proposed Budget was reviewed, with the changes
noted. A discussion of rates followed, with detailed
information on the cost of serving new housing
developments.
Mr. Tralle moved to institute a flat $500 . 00 connection
fee, to include 200' of service; if service exceeds 200'
an additional charge of $3 . 00 per foot will be added.
Mr. Zabee seconded the motion. Motion carried 2-1, with
Mr. Dietz voting nae.
Mr. Zabee moved to adopt the 1997 Budget as presented.
Mr. Tralle seconded the motion. Motion carried 3-0 .
5 . 2 Electric Rate Up-date
Mr. Adams brought the Commission up to date on the progress
of the rate study, with recommendations for new rates.
The options and class divisions were reviewed.
Regular meeting of the Elk River Utilities Commission
January 14, 1997
Page 3
Mr. Tralle moved to offer free energy audits to ten
customers who would be most affected by the rate change
in the demand class, option 10 . Mr. Zabee seconded the
motion. Motion carried 3-0 .
After further discussion it was the concensus that both
electric and water rates be changed at the same time.
5 . 3 Water Rate Up-date
Mr. Adams advised that the water rate study is not ready to
be presented in detail at this meeting. To be presented at
the February meeting with recommendations .
Mr. Tralle left the meeting at this time, 5:10 P.M.
5 .4 AEC/ERMU Power and Energy Contract Amendment
Informational only.
5 . 5 Water Facilities, Highland Rd. up-date
Mr. Adams presented the preliminary plan from MSA for the
Watermain Extension on Highland Road, with his
recommendation for authorization.
Mr. Zabee moved to authorize the Highland Road Watermain
extension, and to contact the School District, and City
Council to determine their participation. Mr. Dietz
seconded the motion. Motion carried 2-0 .
6 . 2 Economic Development Initiatives
Mr. Adams presented a letter from Paul Steinman, Economic
Development Director for the City of Elk River, regarding
future involvement and joint participation with the
Economic Development Authority.
After discussion, it was the concensus of the Utilities
Commission to take into consideration requests for
assistance on an individual basis.
Regular meeting of the Elk River Utilities Commission
January 14, 1997
Page 4
6 . 3 Adopt City/Utility AWAIR Program
The AWAIR Program was adopted on a preliminary basis in
September, 1996 . An AWAIR program has now been approved
by the City Wide Safety Committee and adopted by City
Council . It is recommended that the Utilities adopt this
program.
Mr. Zabee moved to adopt the AWAIR program. Mr. Dietz
seconded the motion. Motion carried 2-0 .
The next regular scheduled meeting of the Elk River Utilities
Commission will be February 12, 1997 .
Mr. Dietz moved to adjourn. Mr. Zabee seconded the motion.
Motion carried 2-0 .
The meeting of the Elk River Utilities Commission adjourned at
5 :40 P.M.
Respectfully submitted,
�� a z 2J
Patricia Hemza •
Office Manager