3.0 ERMUSR 09-11-2007ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
August 14, 2007
Members Present: Jerry Takle, President; Jerry Gumphrey, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent;
Theresa Slominski, Finance Director/Office Manager;
Troy Adams, Engineering Manager; Judy McSpadden, Recording Clerk
1. Call meeting to order August 14, 2007
President Jerry Takle called the August 14, 2007, meeting to order.
2. Consider Utilities Agenda
James Tralle moved to approve the August 14, 2007, Utilities Agenda. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
Jerry Gumphrey had some questions about a few of the vendors on the check register and
about the cell phone service we utilize, staff responded. Jerry Gumphrey moved to approve
the Consent Agenda as follows:
July Check Register
July 9, 2007, Minutes
Financial Reports
James Tralle seconded the motion. Motion carried 3-0.
5.1 Staff Up -dates
Bryan Adams informed the Commission that Elk River Landfill would like to install four
engines instead of only two as discussed at a previous meeting. The land purchase necessary
to expand the landfill is now looking much more positive. The building they are proposing
would be capable of four engines with provisions for future expansion. Air permits will still
be the stumbling block. James Tralle questioned the difference between burning the methane
gas via flare stack versus burning it in an engine. Bryan stated the CO2 emitted when burned
in the engine is the problem. Jerry Gumphrey asked if there was a process that could alleviate
some of the omissions.
The County Attorney would like Elk River Municipal Utilities to look into hydroelectric
projects for the Orono dam. Commission agrees this would be favorable, staff is directed to
pursue a study.
Nearby municipals have been losing wells and some water towers have been pumped
dry. Ramsey is now studying taking water out of the Mississippi to satisfy their water needs.
Glenn Sundeen gave an update on the current electrical projects. Area 16 & Area 17
rebuilds are complete along with a new development in Otsego called Mississippi Cove, and
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Regular meeting of the Elk River Municipal Utilities Commission
August 14, 2007
work will begin on the Wildflower Meadows project which is also in Otsego. James Tralle
asked if there were any outages due to the storms, Glenn responded there were none.
Troy Adams reported 13 security sales in July along with numerous service calls. Waco
Substation structure is assembled. Jerry Takle questioned the security at the Waco Substation
site. Discussion followed.
David Berg said due to the water levels, the pump at Well #3 was lowered 20 feet. The
SCADA system that monitors the Wells went offline on Saturday and is now online again.
The summer help that will be leaving soon cleaned and painted 20 hydrants and cleaned out
12 water valves. The new water operator continues to install upgraded electric and water
meters.
Theresa Slominski said she was able to visit the BillFlash site and tour their facility.
The customer deposit policy is in place and the system we are using for credit checks is going
well. Work continues on compiling information for the 2008 budgeting process, and
preparing for the 2007 pre -audit.
5.2 Review Licensed Contractors for Water Leaks
In June one of our customers experienced a water service leak in the boulevard. This
property owner is a contractor, although not licensed or bonded, did the necessary repairs.
The repair did not go as smoothly as possible. Jerry Gumphrey asked staff to develop a list of
qualified contractors to aid the customers in finding a contractor. A list of contractors for
repairing indoor plumbing and water service was reviewed. There are other contractors that
can be used, this is just a list of contractors we know are licensed and bonded at this time.
James Tralle moved to approve the Water Service Repair Contractors list. Jerry Gumphrey
seconded the motion. Motion carried 3-0.
5.3 Review Black Dirt Policy (Verbal)
At a previous Elk River Municipal Utilities Commission meeting, a black dirt policy was
discussed. Staff was directed to check with the City for policies and enforcement issues.
Bryan stated City staff perceived it would be a burden for the City to enforce the issue. The
added approximate $3000 per residential lot financial burden to the builder or homeowner was
also discussed. Surrounding communities do have black dirt policies and with water
conservation efforts being a major concern, it would be wise to continue looking into a policy
that would benefit all and yet not be a burden to enforce. Jerry Gumphrey suggested
contacting City Council members to see if they are interested in such a policy. This was
tabled and will be revisited at a future meeting.
6.1 Review Bid Tabulation for Area 21 Rebuild
The 2007 electric budget contained a $90,000 item to continue the electric distribution
system rebuild in Area 21. This area is directly north of County Road 33, west of the City
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hiking trail (old railroad bed). Bids were received August 6, 2007, staff recommends
awarding to Midwest Diversified Utilities, the lowest responsive bidder.
James Tralle moved to award Midwest Diversified Utilities, the Area 21 electric distribution
rebuild. Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.2 Review 2008 Budget Schedule
Staff has started the process of assembling the year 2008 budget. The proposed schedule
for the budgeting process was reviewed. Discussion followed regarding the travel and training
budget, personnel projections, and CIP spending requirements for the future. Travel and
training budget reflects a $5200 increase from 2007. No additional personnel is requested for
2008. Legislative changes enacted in 2007 will drastically affect the CIP programs starting in
2010. Jerry Gumphrey suggested getting a group together to come up with some new ideas
for rebates. Jerry Takle's suggestion was a rebate for customers if their electric usage is lower
than previous year. James Tralle questioned if fees for on-line classes on conservation would
be considered for rebates, and the possibility of supplying water heater blankets to customers.
6.3 Review DNR Water Appropriations
The DNR regulates the annual amount and rate of which we can utilize ground water for
our municipal water system. In April of this year we requested an increase in ground water
appropriations from 875 million gallons to 1400 million gallons per year. In 2006 we
submitted a revised Water Conservation and Emergency Management plan in anticipation of
future water appropriation requests.
In July of 2007 the DNR responded to our request with approval of the Conservation and
Emergency Management Plan, and amended our Water Appropriation Permit for a 10 year
period to 1650 million gallons per year. They are pre -approving the addition of five 1000
gpm wells. The stipulations on the water appropriation are to continue with the Emergency
and Conservation Plan, and have an observation well. We will be utilizing the Twin Lakes
Elementary irrigation well for this. Staff remains hopeful of the positive outcome with ISD
#728 use of irrigation wells.
6.4 Review Bid Tabulation for Well #9 Site Work
The 2007 water budget contained a $400,000 item to construct Well #9. Due to changes
because of water quality issues, the cost has escalated to the $650,000 range. All of the
necessary approvals have been secured for the Twin Lakes location. Location, construction
schedule, and costs were discussed at previous meetings.
Bids for the earthwork portion of this project were received on August 9, 2007. A bid
tabulation was reviewed with staff recommending award of this project to the lowest
responsive bidder, Kober Excavating, Inc.
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Regular meeting of the Elk River Municipal Utilities Commission
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Jerry Gumphrey moved to award the Well #9 Earthwork to Kober Excavating, Inc. James
Tralle seconded the motion. Motion carried 3-0.
6.5 Review Proposed Wholesale Electric Rate Structure
Great River Energy's proposed 2008 rate structure was reviewed. ERMU is looking at a
possible 8.5% rate increase for 2008. GRE is looking into implementing a time of use rate
and critical peak pricing. James Tralle asked if the billing and metering system could handle
the time of use rate structure. Theresa replied it is possible but there would be programming
fees involved. James Tralle suggested educating students at an early age on the importance of
conservation.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, September 11, 2007.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:20 p.m.
espectfull ubmitted,
Judy Mc padde
Recording Clerk