5.0. SR 04-11-1994
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~lk River
AGENDA ITEM 5.
MEMORANDUM
TO:
MAYOR & CITY COUNCIL
FROM: PAT KLAERS, CITY AD~
DATE: APRIL 8,1994'[.,
SUBJECT: JOINT COUNClUUTIL IES MEETING
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The last joint City CouncillUtilities Commission meeting that resulted in a
general update and discussion on a variety of topics and issues was held on
6/29/92 (see attached agenda). Since that joint meeting, two other formal
joint sessions have been held on 2/17/93 and 5/3/93. The topic at these two
most recent joint meetings was to review the financing and locations for
future wells and water towers.
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In recent years, the City Council and the Utilities Commission has had more
interaction on issues of common concern. I am not sure what agenda topics
the City Councilor Utilities Commission have the strongest desire to discuss
at this one hour joint meeting, but there are a lot of possible topics to "put on
the table". Utility issues related to the downtown alley will be discussed at
the 7:00 p.m. EDA meeting. At the 6:00 Council/Utilities meeting, I think
that at least the following topics should be touched on:
1. An update on the garbage billing system that was transferred to
the Utilities department in 1993.
2. An update on the proposed City-wide storm sewer fee that the
City is asking the Utilities to incorporate on its utility bill.
Finance Director Lori Johnson will be in attendance at this
meeting to update both groups on the proposed timing and
method of implementing this program.
3. The status of the Water Connection Charge (WCC) and the
Water Availability Charge (WAC) along with a general update
on the status of the financing for wells and towers. Also on this
topic, the schedule and need for wells and towers in the
northeast, northwest, and west part of the community should be
reviewed.
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4.
An update on the status of the overhead electric lines on the
north side of School Street between Jackson Avenue and
P.O. Box 490 . 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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Highway 169. This topic was discussed at the 3/28/94 City
Council meeting and the 4/5/94 Utilities Commission meeting.
As time allows, and as desired by the City Council, other possible joint
meeting topics include the following:
1. Electric pole and street lighting options for new developments.
2. Review the policy for overhead versus underground electric lines
in residential development projects and in other development
areas of the City.
3. The financing of trunk water lines and the associated "holding
costs" for some of these projects such as the deferred assessment
situation for the Nord family in the northwest part of the City
and the Green Acres situation for the Houlton property in the
west and the Brady property in the northwest.
4. Status of the territory acquisition from Anoka Electric.
5. General update on current electric rates.
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6.
General update on the security system program.
7. Update on the Street Lighting Committee and policies.
8. Update on the Fire Department Equipment Van delivery in
April or May.
In addition to all of the more significant and larger scale projects and issues
that have been discussed by the City Council and the Utilities over the past
sixteen months, the City Council (or individual Councilmembers) has also
either reviewed, discussed, or in passing asked questions on the following
topics:
1. The Orono Park well, water treatment building and discharge
pond.
2. The Utilities stub-in policy for new developments.
3. The purchase of land for new water towers and wells.
4. The Utilities Commission annual cash contribution to the City.
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5.
The potential combination of the water and sewer departments.
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6.
Role of the Utilities Commission in the update of the City
Comprehensive Plan.
To be sure, there are a lot of potential topics to discuss with the Utilities
Commission in the span of an one hour meeting. The above list of potential
topics is only offered as a suggestion for your review. Councilmembers
should feel free to add to this list any new or other topics that they believe
are appropriate. If some of the discussion on various topics gets lengthy, we
may want to discontinue the dialogue until a future joint meeting can be held
to discuss the issue in more detail. The list of potential agenda discussion
topics may lead us to a future joint meeting where more than just one hour
can be dedicated to various topics.
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CITY OF ELK RIVER
CITY COUNCIL AGENDA
e) Monday, June 29, 1992
7:00 P.M.
Elk River City Hall
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1. CALL MEETING TO ORDER
2. CONSIDER 6/29/92 CITY COUNCIL AGENDA
3. OPEN MIKE
3.1. Miss Elk River Proclamation
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JOINT CITY COUNCIL/UTILITIES COMMISSION MEETING
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4.1. Water Towers and Wells
4.2. Electric Utility Update
4.3. Utilities Contribution to City
4.4. Street Lights
4.5. New State Laws
4.6. Water Master Plan
4.7. Building Improvement Projects
4.8. Security Systems
ADMINISTRATION ITEMS:
solution of Summary
Or J.
ConsideratJ. iquor License Renewals
Health oval
Rev' ighway 169/MaJ.
sider Traffic
Landfill Update
6. OTHER BUSINESS
7. CITY ADMINISTRATOR UPDATE
8 . ADJOURNMENT
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ELK RIVER lVIUNICIPAL UTILITIES
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322 King Avenue
Elk River. Minnesota 55330
Phone (612) 441-2020
JOINT MEETING OF
ELK RIVER CITY COUNCIL
AND
ELK RIVER UTILITIES COMMISSION
APRIL 11, 1994
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Distribution Construction:
In 1993 we added over $1,100,000 in new property consisting of a
new substation located at the old West site. When this station
comes on line in another month or so we will then have the capacity
to serve our entire load without anyone of our stations in
service. As of the end of the year we had not paid for the
transformer, which is an additional $210,000, so it can be seen
that all of the money expended last year was mostly for this
substation. Next year we wil~ spend about $200,000 to updgrade the
existing UPA sub which will get it ready for our next expansion in
capacity which will be in approximately 1998.
In addition to our substation expenditures, we spent about $600,000
for distribution lines. This was mostly in new subdivisions,
however some of it was used to upgrade our existing lines and
preventative maintenance. We had no major purchases of equipment
last year as we extended the life of some of the older equipment
for an additional year.
We had no major accidents last year involving our personnel or high
voltage electricity.
Anoka Electric Takeover of Territorv:
Whereas we did take over some of ABC's territory last year, we did
not take any of their existing customers (with one small
exception). Next year we will not take any major areas of their
customers, however, we have a very good working relationship with
them, and if an unexpected area comes up which would be beneficial
to us to serve (rather than exchange later), they usually allow us
to just take it. They have been very cooperative.
Personnel:
We added a new line crew last year. This consisted of two new
linemen and a truck which was purchased the year before. Even with
the additional line crew we were forced into an overtime situation
last summer and fall. This is usually caused by developers not
closing their projects until late summer and we only have a month
to get all of our work done before the freeze hits and we are not
able to plow in the underground cable.
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We also added an additional person in the office last year because
of the load caused by the increased number of customers, increased
regulatory requirements, and the garbage billing. These increases
are the first since 1982 and just bring us to the level that we
were in 1980.
Rates:
We still have the lowest rates in the area. Depending on usage, we
are lower than NSP by around 2- 3%, Wright Hennepin Coop by 30% and
AEC by about 20% (even with their recent rate decrease). This is
one thing that we, as a Commission, closely watch.
Generation:
The commissioners recently authorized a feasability study to
determine if we should enter into a long term generation project.
Presently, we purchase all of our energy, however it appears that,
with the present long term natural gas rates now available and the
new machine efficiencies, that we may be much better off to build
new generation. If the project proves feasable, we will spend
around $11,000,000 (possibly more). We will know more in a couple
of months. This would invQlve building a 20 - 30 Megawatt unit
near the site of our West Substation, also near the passage of a
High Pressure natural gas pipeline.
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Gary Street Well:
This well is completed and the pump has been installed and wired.
Final test and acceptance has not been accomplished yet as the
filtration plant needs to be finished before well can be run. We
expect start up within two to three weeks.
Gary Street filtration Plant:
The filtration plant is built, but extension to completion date was
given so painting of building and filter could be completed when
the temperature outside was warmer and doors could be left open for
ventilation. Plant is approximately 95% complete. Landscaping and
blacktop surfaces at filter plant will be done when plant is upp
and running and weather permits. We still owe about $40,000 to the
contractor on this project.
Hillside Water Tower:
This 500,000 gallon tower in Hillside Addition has been erected and
painting was started March 28, 1994. Completion of painting is
expected soon if weather cooperates. Water Mains were extended to
within approximately 1000 feet of tower before freeze in 1993.
Contractor for the water main extension has returned to the project
on April 4, 1994. Completion date is not known at this time. We
still owe the contractor approximastely $72,000 for the water
tower.
Hillside Well and Filtration Plant:
The Commission accepted the bid of $102,940 from Traut Wells for a
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new well located at Hillside Tower, but construction has not
started as of this time. Completion date is set for May 15, 1994.
A filtration plant will be needed for this site but design and cost
cannot be determined until well is completed and water quality is
annalized.