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04-05-1994 ERMU MIN { / ELK RIVER MUNICIPAL UTILITIES 2 322 King Avenue Elk River, Minnesota 55330 Phone (612) 441-2020 UTILITIES COMMISSION MINUTES April 5, 1994 3:00 P.M. Present Were: James Simpson President George Zabee Vice Chairman James Tralle Trustee Others Present: Bill Birrenkott General Manager Glenn Sundeen Line Superintendent Bob McCartney Water Superintendent Roger Holmgren Elk River City Council Ron Bratlie Elk River School Board 1) The meeting was called to order at 3:00 P.M. by President Simpson. 2) Motion by Mr. Zabee, seconded by Mr. Tralle to approve the agenda as amended. The Motion carried. 3) Motion by Mr. Zabee, seconded by Mr. Tralle to approve the minutes of the previous meeting as distributed. The motion carried. 4) The President reported that he attended the closing on the Clinkscales Trust Property and the property is now ours. The Commissioners furthur instructed staff to see that insurance is in effect on the property. 5) Roger Holmgren and Ron Bratlie stated that the reason they were at this meeting was to ask the Commissioners to seriously consider the possibility of relocating the power line along School Street between Jackson and Hiway 169 underground. The following elements were considered by the Commissioners: A. Underground electricity is esthetically much more pleasing and far less obtrusive. B. Underground electricity would require no tree trimming. C. To construct this line underground would cost the Utilities approximately $80,000 to $100,000 more than to do the work overhead. D. Underground would eliminate very few poles (if any) because of street light requirements. E. We would require and additional 10' easement to place the large underground switching boxes and cable. F. It is not considered good practice to place main feeders underground as it tends to increase outage time and is very difficult to operate or tap for new customers. G. We presently place almost all new distribution underground with the exception of main feeders and older areas where overhead cables already exist. The Commissioners felt that they would be glad to place the line underground if some way could be found to pay for it other than to place this burden on the rate payers. They also expressed a concern that very few poles would be eliminated because of street lights. They decided to take no action at this time but would welcome input from Roger and Ron at a future date. 6) Glenn reported that the Boy Scouts had approached him and asked us to donate a service at a planned future building. The Commissioners requested that a representative of the affected Scout organization appear before the Commission so that questions could be answered. 7) Bob Palmquist of Associated Consultants reported on the status of various Generation projects in the area. The General Manager reported that he had gone over the numbers very carefully and was convinced that a similar project could be viable for Elk River Utilities which would lock in the future cost of generation. Motion by Mr. Tralle, seconded by Mr. Zabee to authorize Associated Consultants to undertake a feasibility study not to exceed $9,500 on the possibility of future generation for Elk River Utilities. The Motion carried. 8) The General Manager reported that a customer had requested three phase service for a very light usage. He reported that he would approach the customer with an option for an annual minimum. 9) The Line Superintendent updated the Commissioners on the status of construction projects and other operating conditions. 10) The General Manager reviewed the December financial statements with the Commissioners. 11) Motion by Mr. Tralle, seconded by Mr. Zabee, to approve the check register. 12) The next meeting was set for Tuesday, May 10, 1994 at 3:00 P.M. at the Utilities office. 12) Motion by Mr. Trailer seconded by Mr. Zabee to adjourn. The motion Carried. Meeting adjourned at 4:45 P.M. Bill Birrenkott General Manager