10-08-1996 ERMU MIN REGULAR MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL
UTILITIES OFFICE
OCTOBER 8, 1996
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; Phil Hals, City Street
Superintendent; Murn Beck
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. Zabee moved to approve the 10-8-96 Agenda. Mr. Dietz
seconded the motion. Motion carried 3-0 .
3 . Consider Consent Agenda
Mr. Dietz moved to approve the Consent Agenda as follows :
3 . 9-11-96 Minutes -- approved
4 . Check Register -- approved
Financials -- approved
5 . 1 Up-date on Electric Rate Study
Mr. Adams discussed the progress of the Electric Rate
Study by R.W.Beck. He also advised the Commission of
recent work meetings with David Berg and Teresa Kervin.
5 .2 Results of Municipal Office Bldg. roof bids
The Commission was advised that the lowest bidder for the
re-roofing of the Municipal Utilities office building was
McDowall, at $25, 263 . The City will bill us for our
portion of the work. Work began on October 2, 1996 and
should be completed October 11, 1996 .
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 2
5 . 3 Proposed Water Fountain in Town Square
Murn Beck appeared to discuss the proposed installation of
a handicapped accessible public drinking fountain, with a
faucet, to be installed in the Town Square. Phil Hals
appeared to voice his concerns regarding maintenance of the
fountain and the possibility of vandalism. ERMU Staff also
expressed these concerns . Mrs. Beck feels the fountain
would not only be aesthetically pleasing, but a service to
people using the Square. Mrs . Beck assured the Commission
that maintenance would be provided by the River' s Edge
Downtown Development Corporation, and that they would
insure the fountain. It was the concensus of the Commission
that it would be a pleasing addition to the Square, but
they remain concerned about vandalism, maintenance and
cleanliness .
Mr. Tralle moved to allow the installation of the fountain
in the Town Square, and to supply a meter and water usage
for it, with the following provisions :
The River's Edge Downtown Development will supply
the copper line, back-flow preventer, a keyed box
for the meter, a removable handle on the faucet, and
to provide all daily and seasonal maintenance for
the fountain.
Mr. Zabee seconded the motion. Motion carried 3-0 .
5 .4 Water Main installation around Ice Arena
The City has requested the Utilities to pay for the entire
cost of the water main installation. The Commission
looked back at their original motion in the minutes of
3-21-95, where they moved to pay for the 175' of water
main to loop the system from the south end of the
building to the cul-de-sac.
Mr. Dietz moved to table further discussion until the
11-12-96 meeting, when the City Manager would be able
to attend. Mr. Zabee seconded the motion. Motion
carried 3-0 .
5 . 5 Consider MSA proposal for Watermain Extension and
Wellhead Protection program
The proposal for work scope and estimated costs to assist
the Elk River Utilities to complete Elk River' s Wellhead
Protection Plan was reviewed, with identification of tasks
to be completed by MSA and Bruce A. Leisch Associates .
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 3
Mr. Zabee moved to accept the proposal by MSA for the
Wellhead Protection Plan. Mr. Dietz seconded the motion.
Motion carried 3-0 .
The proposal for scope of services and budget for the
trunk watermain on Highland Ave. necessary to connect the
two high pressure water zones was reviewed.
Mr. Dietz moved to accept the proposal by MSA for the scope
of services and preliminary design for the trunk watermain.
Mr. Zabee seconded the motion. Motion carried 3-0 .
5 . 6 Update on FERC filing
Mr. Adams advised the Commission that a Protest and Motion
for Levy to Intervene out of Time was filed on 9-11-96,
with respect to Anoka' s 7-12-96 filing. The Commission
received the follow-up Protest Motion to Intervene and
Request for Hearing on Behalf of Elk River Municipal
Utilities .
Further discussion ensued regarding the dilemma of our
wholesale power rates. Economic development rates and
load management were discussed. Mr. Adams reported on his
meetings with UPA and AEC.
It is the concensus of the Commission to keep our good
relations with UPA, but to actively deal with the rate
issues . Mr. Adams was directed to approach AEC with the
needs that must be addressed, as well as the problem of
supplier versus competitor.
6 . 1 URGE test and repair of #3 Diesel Unit
Mr. Adams up-dated the Commission on the URGE (Uniform
Rating of Generating Equipment) tests that were run on a 60
minute time this year, as opposed to 5 minutes in
previous years .
Mr. Adams discussed the possibility of UPA financially
helping the Utilities repair the 300 KW #3 Diesel Unit .
The pros and cons of the repairs were discussed, with
considerations of pay-back times and possibilites of
other ways to finance the repairs.
Mr. Zabee moved to have the #3 Diesel Unit repaired in
late 1997 . Mr. Dietz seconded the motion. Motion
carried 3-0 .
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 4
6 . 2 Electrical System Capacity
The statistics for Projected Load Growth and need for
Substation 14 modifications were presented and closely
scrutinized, as well as a suggested time-table.
Mr. Zabee moved to authorize Mr. Adams to proceed
with this project, and give Mr. Adams latitude on
choice of engineering firms, to design this project .
Mr. Dietz seconded the motion. Motion carried 3-0 .
6 . 3 Consider proposals for Water rate Study
Proposals from MSA and R.W. Beck for a Water Rate
Study were compared and reviewed.
Mr. Dietz moved to award the proposal to Maier Stewart,
for a not-to-exceed cost of $4, 600 . 00 . Mr. Zabee
seconded the motion. Motion carried 3-0 .
6 .4 Update on 1997 Budget
Mr. Adams explained that the 1997 Budget will weigh
heavily on the electric rate study report that we will
receive from R.W.Beck. Staff has put together a ten year
capital projected forecast, as a preliminary document . It
reflects the direction of the growth of the City, and gives
a good idea of future needs.
Other Business
The computer network file server has now used 1000 of its
life expectancy. It is recommended that we must up-grade
this system before serious problems occur.
Mr. Zabee moved to proceed with the purchase and
replacement of computer equipment from Laser Computer
and Associates . Mr. Dietz seconded the motion. Motion
carried 3-0 .
The next scheduled meeting of the Elk River Utilities Commission
will be Tuesday, November 12, 1996 at 4 : 00 P.M.
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 5
Mr. Dietz moved to adjourn. Mr. Zabee seconded the motion.
Motion carried 3-0 .
The meeting of the Elk River Utilities Commission adjourned at
6 : 10 P.M.
Respectfullyy submitted,
Patricia Hemza
Office Manager