03-27-1996 ERMU MIN - SPECIAL MTG SPECIAL MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER CITY HALL
WEDNESDAY, MARCH 27, 1996
Members Present: President James Tralle, Trustee George Zabee
Members Absent: Trustee John Dietz
City Staff Present: Pat Klaers, City Administrator and Mayor Duitsman
Also Present: Phil Martin and Gerald Emmer, Representing Emmer Associates,
Inc.
President Tralle introduced the topic for the meeting and indicated that he had
requested Phil and Gerald to come to this meeting to discuss services that they could
offer the Utilities Commission in evaluating their management needs.
A general discussion took place regarding the status of the Municipal Utilities, its general
management situation, and a management contract proposal that is anticipated from
Anoka Electric Cooperative (AEC) in early April.
Phil and Gerald discussed their work experience and background in helping
organizations evaluate proposals and options. It was noted that Emmer Associates, Inc.,
has a great deal of experience in "facilitating strategic alliances" in order to bring
groups together to evaluate proposals that are in the best interest of the overall
organization.
The Commission noted that it is interested in evaluating proposals for management
services from AEC, but was not interested in looking at any proposal to sell the Municipal
Utilities. The only services requested from Emmer and Associates, Inc., is to help evaluate
the management needs at ERMU and, specifically,whether or not the Utilities should
continue with a general manager or whether or not it should consider a contract for
some or all management services from AEC. Both Gerald and Phil indicated that they
could help ERMU evaluate the AEC proposal in an objective and professional manner.
It was noted that a proposal from Emmer and Associates, Inc., should be received
around the time of the next Utilities Commission meeting on 4/9/96, and that the
proposal would be on an hourly basis (approximately$150 per hour plus expenses) and
that the proposal would include references.
Other Business
COMMISSIONER TRALLE MOVED TO CALL A SPECIAL MEETING OF THE ELK RIVER MUNICIPAL
UTILITIES COMMISSION FOR APRIL 29, 1996,AT 6 P.M. AT ELK RIVER CITY HALL IN ORDER TO
MEET WITH THE CITY COUNCIL TO REVIEW THE CITY AND UTILITIES AUDIT. COMMISSIONER
ZABEE SECONDED THE MOTION. THE MOTION CARRIED 2-0.
Special Municipal Utilities Commission Meeting Page 2
March 27, 1996
The City Administrator noted that he had received some information regarding
compensation for Commissions and that he would be presenting some information to the
City Council in the near future regarding this issue.
A brief discussion took place regarding the City repayment of some funds to ERMU for
part of their share in the Industrial Park land acquisition that took place a few years ago.
Discussion took place regarding reserving these funds for future use by the City or by the
City and Utilities jointly in a future business park or industrial park land acquisition project.
COMMISSIONER ZABEE MOVED TO RESERVE THE FUNDS BEING REPAID BY THE CITY TO ERMU
FOR THE INDUSTRIAL PARK PHASE II PURCHASE FOR A FUTURE JOINT BUSINESS PARK OR
INDUSTRIAL PARK PROJECT. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION
CARRIED 2-0.
The City Administrator noted that the repayment of the balance of the funds is expected
to be completed in the next few years. The total loan was$50,000.
There being no further business, it was the consensus of the Commission to adjourn the
meeting.
The special meeting of the Elk River Municipal Utilities Commission was adjourned at
approximately 5:45 p.m.
Respectfully submitted,
Patrick D. Klaers
City Administrator