3. Previous Minutes 08-16-2005 ELK RIVER MUNICIPAL UTILITIES
NO REGULAR MEETING OF THE
UTILITIES COMMISSION
July 12,2005
' Members Present: Jerry Takle,President;John Dietz,Vice Chair;James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent;Theresa Slominski, Office Manager
' 1. Call meeting to order July 12,2005
President Jerry Takle called the July 12,2005,meeting to order at 4:00 p.m.
2. Consider Utilities Agenda
John Dietz moved to approve the July 12, 2005, Utilities Agenda with the addition of one
' item for discussion under Other Business. James Tralle seconded the motion.
Motion carried 3-0.
' 3. Consider Consent Agenda
John Dietz had some questions regarding the financials and the Net income/profit
difference between last year versus this year. Staff responded and further discussion
followed regarding the tax issues.
John Dietz moved to approve the Consent Agenda as follows:
June Check Register
June 14, 2005,Minutes
' Financials
Jerry Takle seconded the motion. Motion carried 3-0.
' 5.1 Staff Up-dates
' Bryan Adams reported the Utilities hit a new electric peak last week. Utilities added an
additional service at Orono Park for City use to accommodate the 4th of July celebration.
There is a joint meeting set for Monday,October 10,2005,at Lions Park with City
' Council and all boards and commissions. With the new territory acquisition of Connexus
customers, some customers voiced concerns about higher monthly bills. Staff looked into
the differences in rates considering PCA and off peak. The conclusion was Elk River
' Municipal Utilities is still lower than Connexus in residential rates. The air permit for the
4th engine at the Landfill was just submitted. The aquifer storage recovery project was
also just submitted to the MN Department of Health. Jerry Takle asked about the new
t rules going into effect December 31,2005,which would make Elk River Municipal
Utilities responsible for locating water laterals. Discussion followed regarding who
would be responsible if they were cut or damaged.
' Glenn Sundeen discussed the status of the current rebuilding projects along with the
Walmart addition. Only 20 new electric services were installed last month.
• David Berg relayed to the Commissioners, six million gallons of water per day was
' pumped last Saturday and Sunday with another five million gallons pumped on Monday.
At this rate,one week of this high usage will equal the amount pumped for the whole
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Regular meeting of the Elk River Municipal Utilities Commission
July 12,2005
month of January. Dave also reviewed the 5th Street project. The customers with load
control are being checked to make sure they are working properly. Six security systems
were sold in the month of June.
Theresa Slominski discussed the upcoming budgeting process. Further discussion
followed regarding the IRS issues, and Commissioners were asked if they found the
additional spread sheets in the financials informative. Commissioners agreed it was
helpful to them.
5.2 Review& Consider Public Expenditure Policy
The City Council recently adopted a Public Purpose Expenditure Policy. Staff has used
this policy as a model, and replaced the wording so it would be appropriate for the
Utilities, and has recommended adopting this policy.
Motion by James Tralle to approve the Public Purpose Expenditure Policy with changes.
John Dietz seconded the motion. Motion carried 3-0.
5.3 Review Energy City Commission
At a previous Elk River Municipal Utilities Commission meeting the future of Energy
City Commission was discussed. Since then the City has adopted an ordinance
establishing an Energy City Commission. No further action needed.
5.4 Review Otsego Growth &Substation
During the last couple of Elk River Municipal Utilities Commission meetings,
Commissioners and staff have discussed both the Hwy 101 intersection construction at
CSAH 39&42, and Otsego growth in general. Staff has since met with MNDOT who
was insistent that small utilities not parallel MNDOT right-of-way on state right-of-way.
Utilities can only cross perpendicular to MNDOT right-of-way. Therefore Elk River
Municipal Utilities will need to abandon our existing three Hwy 101 crossings and
replace them deeper at the same location along with placing the CSAH 42 overhead line
underground. After MNDOT has finished their soil borings,they will establish the depth '
the electric lines will be reinstalled at. The City of Otsego would like us to bury the
primary lines at CSAH 39 and Parrish Avenue at a cost of approximately$70,000.
Future meetings are scheduled with the City of Otsego regarding this project and the
Otsego substation. We plan to upgrade the Otsego substation next year so it will furnish
the needed power for future expansion. Authorization was requested to allow USG to do
the necessary engineering to upgrade the Otsego substation.
Motion by John Dietz to authorize USG to do the necessary engineering to upgrade
Otsego substation. James Tralle seconded the motion with Jerry Takle abstaining.
Motion carried 2-0.
5.5 Review & Consider Smith Street Rebuild '
Elk River Municipal Utilities recently purchased the service territory acquisition area 16 •
with 131 customers. The budgeted amount was higher than the actual acquisition cost
however,the underground cable is in need of replacement because the neutral is corroded
away. Staff is proposing to re-conductor a portion of Smith Street this year, and finish the
remainder next year.
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Regular meeting of the Elk River Municipal Utilities Commission
July 12, 2005
Motion by James Tralle to award Underground Piercing,Inc.,the lowest responsive
bidder, installation of underground electrical distribution to the Smith Street project. John
Dietz seconded the motion. Motion carried 3-0.
' 5.6 Update Elk Path Business Park Electric Feed
A large industrial user is looking into locating west of Elk River. They are concerned
' about the electrical requirements and if we can support their load. Staff has looked into
building a substation northwest of Elk River along with adding a new feeder from
' substation West which would then supply the needed power for this customer. At this
same time we would construct another feeder from Station 14 to the Elk Path Industrial
Park to help relieve the growing load. The cost of these projects would be approximately
' $2.9 million which would be funded with a 5 or 10 year bond. After calculating the
approximate monthly usage of this new facility, staff feels the revenue from the usage of
this industrial customer would more than make the bond payment each month. This
' project would also be positive for future businesses that are considering locating in the
area.
' Motion by James Tralle to proceed with staff recommendations for the substation north-
west of Elk River and the new feeder from substation West. John Dietz seconded the
motion. Motion carried 3-0.
Other Business
John Dietz informed Commissioners and staff of Nextel requesting approval to install a
' communication tower by the fair grounds. City council members would rather have the cell
phone antennas on the existing water towers, as several communities are doing this and
charging rental fees. James Tralle feels this is a security issue. John Dietz responded the City
' of Fridley only will let them work on their antenna if they make an appointment with water
department,then they will be billed for staff to be with them while they are there. Bryan
Adams concern is that this would require an additional employee as the water department is
' very busy. John Dietz asked Bryan Adams if he would be able to address the City Council on
Monday, July 19th regarding this issue and Bryan Adams said he would.
' The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday,August 16,2005.
' President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:30 p.m.
' ' - •ectfully su.. itt:.,
141p.", p11
' Judy McSpadden
• Recording Clerk