INFORMATION 03-05-2007
INFORMA TION
Minutes
Elk River Library Board Meeting
February 27, 2007
Ann called the meeting to order at 6:30 p.m. Ann Schroeder, Mick Stoffers, Karen
Stelk, John Dietz and Nick Zerwas city council liaison were present.
Quorum was established.
Mick passed out an updated Board member list.
John made a motion to accept the agenda and Ann seconded.
John made a motion to accept the Secretary's report, Ann seconded.
John made a motion to accept the Treasurer's Report, Ann seconded.
No suggestion box.
Librarian's Report-
Mick requested a raise in pay for the Story Time Leader's. A raise has not been
given in 7 years. John made a motion we give them an additional $10 per session,
Karen seconded.
Building Update-
*For the furniture and fixtures they are going to review an approved list to match
needs for Government pricing.
*Joan from GRRL and Mick will be meeting with the Automation and Collection
Development Teams. The collection development will do a thorough "weed" so we
don't move any unnecessary items and those needing to be mended will be pulled and
addressed.
*As this point construction is 6 weeks behind due to the delivery delay of
structural steel.
*It was recommended that Mick ask Lori from the City where the approximate
$200,000 (from the sale of lot and house) will be placed.
*At the March meeting we would like KKE to come with an update and a revised
construction schedule.
John made a motion we adjourn at 6:50pm, Ann seconded.
Next meeting: March 27th.
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
February 20, 2007
Members Present: Jerry Takle, President; Jerry Gumphrey, Trustee
Member Absent: 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
Others Present: Lori Johnson, City Administrator; Tim Simon, City Finance Director;
Peter Beck, City Attorney
I. Call meetinl!: to order February 20. 2007
President Jerry Takle called the February 20,2007, meeting to order.
2. Consider Utilities Al!:enda
Jerry Gumphrey moved to approve the February 20,2007, Utilities Agenda. Jerry Takle
seconded the motion. Motion carried 2-0.
2a. Election of Officers for 2007
Jerry Gumphrey moved to re-appoint Jerry Takle, President; Jerry Takle moved to appoint
Jerry Gumphrey, Vice Chair and be added to the financial signature card. Jerry Gumphrey
seconded the motion. Motion carried 2-0.
3. Consider Consent Al!:enda
After a few questions regarding the check register, Jerry Gumphrey moved to approve the
Consent Agenda as follows:
January Check Register
January 9, 2006, Minutes
Financial Reports
Jerry Takle seconded the motion. Motion carried 2-0.
5.1 Staff Un-dates
Bryan Adams reported that Northstar Access has installed a wireless internet modem at
James Tralle's residence as part of their study to verify the technology and how applicable it is
for northern Elk River. The City is planning two street reconstruction projects this year which
will affect the utilities, however, the final drawing has not been completed as to the scope of
the Utility impact. Connexus sent out a newsletter in January 2007 informing the customers
that there would not be a rate change in 2007, however, we will watch to see if and how the
PCA will come in to play.
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Regular meeting of the Elk River Municipal Utilities Commission
February 20, 2007
Glenn Sundeen gave an update on current projects, Otsego work has been completed
except for the removal of poles which will be done after frost. Asplundh continues to do a
good job tree trimming. The new Feeder 97 is now energized to support western Elk River.
Troy Adams informed the commission the map books were completed and printed for
both electric and water. Staff will start working with coordinating the GPS system, along with
replacing the old style meters to radio read. The fuse coordination study is still in progress.
The Security System sales for the month of January were 15. Sales have been on the rise due
to word of mouth, and homeowners existing contracts with other monitoring companies
expiring so they renew with us instead due to lower monitoring fees. Because we have over
500 accounts with Wright Hennepin International Response Center, the monthly fee per
account has been reduced.
David Berg said there are two filter plants needing maintenance, the others are
completed. Currently the pump for Well #5 is in for repair.
Theresa Slominski said the new employee, Peggy Ferguson, that was hired to fill the
vacant position is doing a good job. Majority of focus has been in finalizing 2006 for the
auditors that will be here the beginning of March. Staffhas been looking into an alternative
payment processing procedure. Jerry Gumphrey questioned why we do not take credit card
payments. Staff responded there are fees involved.
5.2 Review GRE / ERMU Waco Substation Al!reement
Great River Energy finalized the land purchase for the new Waco Substation. This new
substation will serve, in part, the United Health Group data center. Great River Energy (GRE)
purchased approximately five acres ofland of which the Elk River Municipal Utilities will
utilize approximately one acre. GRE is asking for a one time payment of $I.OO/sq. ft. or
$43,560 for one acre ofland. GRE's policy addressing shared facilities was reviewed. Staff
recommends approval of this agreement.
Motion by Jerry Gumphrey to approve GRE'sjoint use of the new Waco Substation Site
policy. Jerry Takle seconded the motion. Motion carried 2-0.
5.3 Review MMUA Position PaDers
MMUA held its Winter / Legislative Conference in St. Paul on February 14-16,2007.
Discussion followed regarding the position papers presented at the conference.
5,4 Review MMTG Al!reement & Bond Resolution
The CapX 2020 initiative is a group of electric utilities joining together to identifY and
construct necessary generation and transmission facilities to meet Minnesota's needs for the
year 2020. In short, 6300MW of new generation capacity and 3300 miles of additional
transmission facilities will be required. Transmission costs alone are estimated to be $2.7
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Regular meeting of the Elk River Municipal Utilities Commission
February 20, 2007
billion. Generation and transmission rates will rise to pay for these additional facilities. Elk
River Municipal Utilities' charge is to keep our rates as low as possible for our customers.
Municipal utilities in general own very little transmission and tend to rent their transmission
needs and therefore are very susceptible to transmission rate increases. This is Elk River's
case. One way to reduce transmission costs is to own versus rent.
In May 2006, the Elk River Municipal Utilities Commission authorized joining Midwest
Municipal Transmission Group (MMTG) as a vehicle to explore the potential to buy into the
transmission system. Due to the successful negotiating efforts of MMTG, we now have the
opportunity of buying into the transmission system. The first transmission project is a 345 KV
line from Brookings, North Dakota to the Twin Cities at a cost of approximately $600 million.
Elk River's load share is approximately $2 million.
CapX 2020 participants include Wisconsin Public Power Inc. (WPPI), Central Minnesota
Municipal Power Agency (CMMP A), Missouri River Energy Services (MRES), Minnesota
Power (MP), Otter Tail Power (OTP), Xcel Energy (Xcel), Great River Energy (GRE),
Dairyland Power Cooperative (DPC), the City of Rochester (RPU), Southern Minnesota
Municipal Power Agency (SMMP A), and Missouri Basin Municipal Power Agency
(MBMP A). CMMP A will be executing the agreement on behalf of MMTG and CMMP A
members that are participating in the development of the CapX 2020 Brookings-Twin Cities
Project. Elk River Municipal Utilities will be part of the MMTG group associated with
CMMP A.
At the November 21, 2006, Elk River Municipal Utilities special commission meeting,
authorization was given for Elk River Municipal Utilities to proceed with MMTG / CMMP A
initiative with a cap of $2,000,000.
Peter Beck has been working on the details of this agreement along with Lori Johnson,
and have concluded that Elk River Municipal Utilities (ERMU) can enter into this
development agreement alone instead of the City of Elk River doing it for ERMU. This pre-
development agreement with CMMP A allows the ERMU to participate in this project and
enter into future agreements that will establish ownership, operation, maintenance, and
revenue stream. This agreement addresses the permitting and engineering phases only.
Motion by Jerry Gumphrey to proceed with the CapX 2020 project and to adopt the attached
resolution. Jerry Takle seconded the motion. Motion carried 2-0.
5.5 Review Water Rule Chanl!:es
At the January 2007 commission meeting, a number of changes were adopted to our
Water Rules. In the process of making these changes, staff found other areas that also needed
to be updated.
The updates include; utility personnel will be inspecting and sealing all water meters; 2"
water meters will require a by-pass loop; Section 103, second paragraph shall read: Water
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
February 20, 2007
service repairs or renewals that become necessary will be made by a licensed plwnber at the
expense of the property owner. Utility staff may provide property owner a list of licensed
plwnbers who do emergency repairs. If owner can not make repairs, water may be shut-off or
Water Utility may make the necessary repairs and the charge for such work will be made
under a special assessment against the property concerned. Such assessment, including
interest at the legal rate for local improvements, shall be certified to the County Auditor and
collected and remitted to the City in the same manner as assessments for local improvements.
The rights of the Elk River Municipal Utilities/City under this paragraph shall be in addition to
other remedial or enforcement rights provided by the City Code of Ordinances or other
applicable law.
Motion by Jerry Gwnphrey to approve the revised water rules as presented. Jerry Takle
seconded the motion. Motion carried 2-0.
6.1 Review Territory Acquisition
The 2007 budget contains a $260,000 line item to purchase service territory from
Connexus. The $260,000 is an estimated amount for area 17 and the actual cost will vary
depending upon nwnerous factors with Connexus.
The service territory agreement expires in February 2011. Elk River Municipal Utilities
plans to purchase area 18 in 2008, and area 22 in 2009 or 2010 depending upon finances. In
order to acquire area 17 this year and area 18 next year, a new feeder from the North
Substation will be required. The 2007 budget contains a $225,000 item to construct this
feeder. Staff recommends authorization be given to acquire area 17 and construct the
necessary feeder from the North Substation.
Motion by Jerry Gwnphrey to authorize acquisition of area 17 and proceed with constructing
the necessary feeder from the North Substation. Seconded by Jerry Takle.
Motion carried 2-0.
6.2 Review 2007 Vehicle Purchase
The 2007 budget contains line items to replace three pick-up trucks and add one pick-up
truck for the additional water operator. From experience, the utilities try to replace pick-ups
on a ten year or 100,000 miles basis. In an effort to get as much life out of our vehicles, the
vehicles from higher mileage jobs are transferred to lower mileage jobs as they get older.
This year staff is proposing to retire three ten year old pick-ups with mileage ranging
from 95,000 to 105,000 miles. Elk River Ford has the State bid on Ford and Dodge 'l2 ton 4x4
trucks. This year we recommend the 'l2 ton 4x4 for work crews. The Jeep Compass 4x4 gets
far better gas mileage than pick-ups and is recommended for the General Manager. Staff
Page 5
Regular meeting of the Elk River Municipal Utilities Commission
February 20, 2007
recommends authorization be given to sell three 1997 pick-ups and purchase three Ford FI50
4x4's and one Jeep Compass 4x4.
Motion by Jerry Gumphrey to authorize the sale of three 1997 pick-ups and to purchase three
Ford F150 4x4's and one Jeep Compass 4x4. Jerry Takle seconded the motion. Motion
carried 2-0.
6.3 Review & Consider 2007 Electric Revenue Bonds
The 2007 budget makes provisions to construct a Waco Substation and underground
feeder to support the United Health Group data center facility, along with other customers,
with bonds. The materials for the substation and underground feeders are already on order.
Also, if we proceed with buying into the transmission system with MMTG/CMMP A group,
we will need to free up another $300,000 to be spent over three to five years to complete the
necessary agreements. Staff is proposing the following bond amount.
Waco Substation
UHG Underground Feeder
Feeder on County Road I
$1,200,000
$1,000,000
$ 300,000
$2,500,000 + Issuance and Coverage costs
The total bond amount would be $2,875,000 per Ehlers and Associates analysis. We are
proposing a 12 year term with interest payments only for the first two years. This will allow
UHG load to ramp up to the estimated levels so sufficient revenues are available to pay the
bonds.
Motion by Jerry Gumphrey to authorize $2,875,000 of electric revenue bonds. Jerry Takle
seconded the motion. Motion carried 2-0.
6.4 Review Request for Street Lililit
A petition was reviewed for request to install a street light on County Road 33 by the
entrance of AME Ready Mix, Plaisted Companies, and Aggregate Industries. There are
numerous poles with overhead lines available in this area to attach street lights.
Motion by Jerry Gumphrey to approve the installation of one street light. Jerry Takle
seconded the motion. Motion carried 2-0.
Page 6
Regular meeting of the Elk River Municipal Utilities Commission
February 20, 2007
6.5 Review Safety Prol!:ram
MMUA provides safety training along with OSHA and DOT safety compliance
programs. On an annual basis, our safety coordinator evaluates our safety program and
involvement. The evaluation for 2006 was reviewed. Jerry Takle commended the staff on
their diligence on continuing the safety programs and expects further enthusiastic
participation.
6.6 Review Proposed Well Location
Due to the continued increase in water usage in Elk River, the 2007 budget contains a
$400,000 line item to construct an additional well. This well should be operational by the
sununer of2008. An annual load profile of water demands was reviewed and because ofthe
large disparity between summer and the other season's usage, a peaking well with minimal
treatment is desirable. This well would only be used in the summer during periods of heavy
lawn sprinkling.
The preferred well site is at the Johnson Street Water Tower location. A test well was
constructed at this site and reflected great water quantity, but the water quality would require
an approximate $1,500,000 treatment plant.
The well site in Twin Lakes Estates has good water quality and quantity but will require a
small (10' x 15') building to inject fluoride and chlorine. A building may be objectionable to
the neighbors. The other option is the River Park development, and the School District will
allow us to sample their test well. This will be revisited at a future meeting as test results
become available.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, March 20, 2007.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:20 p.m.
Respectfully submitted,
Judy McSpadden
Recording Clerk
RESOLUTION 07-_
A RESOLUTION OF
THE CITY OF ELK RIVER MUNICIPAL UTILITIES COMMISSION
A RESOLUTION APPROVING THE CENTRAL MINNESOTA MUNICIPAL
POWER AGENCY BROOKINGS-TWIN CITIES
PROJECT DEVELOPMENT AGREEMENT
WHEREAS, the City of Elk River MumcIpal Utilities Commission (ER.1v1U) has
determined thM it is. in the best interest o( the ERMU and Us rate: payers to utilize
the I"csources and :'lcrvices of the Ccutr~l Minnesota Murucipal Power Agenc.:y
(CMMPA) (0 particIpate in the development and investment in the <lcqUlsition,
constructlon, ownership, and Opct.-uon of high voltage trao5mission of e1ccttic~tl
energy and capacity, negotiation of contracts, planning, including transrrUsslOn
needs studie:s. transmission arrangements, engineermg, and technical assistance;
and
WHEREAS, the ERMU now wishes to formalize its relationship with CMMPA and
authorize the ERMU's par;ticipation in the Brookings.~l~win Cities High Voltage
Transmission Line Project (project).
NOW, THEREFORE, BE IT RESOLVEO,
1) That ER1\1U docs hereby approve the participation in the Project and the
financing thereof.
2) The CMMPA BroQkings~TwU1 Clcies Project Development Agreement is
therefote approved generally tn the form presented at this meeting.
3) The ER!\.1U Chair and General Manager a.re hereby authorized and dtrected to
finalLze the PI:OJcct Development Agreement and to execute such Project
Development Agreement for and on behalf of the ERMU.
Passed and adopted by the Elk River Mun,iclpal Urilirjes Comm,ission this 20'1. day of
Febluary 2007.
ATTEST;
S'\Re$olut'Ol\~\2007 Resolul:lon~\Un;tppfOvcd\(MMP^. ER.NU Resolu!:1on doc
MEETING OF THE ELK RIVER
PARKS AND RECREATION COMMISSION
HELD AT CITY HALL
WEDNESDAY, DECEMBER 13,2006
1vlcmbers Present:
Chair Polston-Hark) Commissioners Anderson, Kuester, Nystrom,
Niziolek and Peterson
Members Absent:
Commissioner Paige
Staff Present:
Bill Maertz, Parks and Recreation Director; Chris Lceseberg, Planner/Park
Planner; Tanya Love, Recording Secretary
1. Call Mcetinf To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Parks and Recreation
Commission was called to order at 6:30 p.m. by Chair Polston-Hork.
2. Consider December 13 2006 Parks & Recreation Commission Afenda
MOVED BY COMMISSIONER ANDERSON AND SECONDED BY
COMMISSIONER KUESTER TO APPROVE THE DECEMBER 13, 2006 PARKS
& RECREATION COMMISSION AGENDA WITH CHANGES. MOTION
CARRIED 6-0.
3. Consider Minutes of November 8. 2006 Parks & Recreation Commission Meetinf
MOVED BY COMMISSIONER PETERSON AND SECONDED BY
COMMISSIONER NIZIOLEK TO APPROVE THE NOVEMBER 8, 2006 PARKS
AND RECREATION COMMISSION MEETING MINUTES. MOTION
CARRIED 6-0.
4. Parks & Recreation Commissioner to Attend Tanua'Y 8. 2006 Ci1;V Council Meeting and
T anuaJ;y 9 2006 Planning Commission Meetinfs
4.1. Janua'Y 8 2006 Ci1;y Council Meeting
Director of Parks and Recreation, Bill Maertz will attend the January 8, 2006 City
Council Meeting.
4.2. .T anua'Y 9 2006 Planninf Commission Meeting
Director of Parks and Recreation, Bill Maertz will attend the January 9, 2006
Planning Commission Meeting.
5. Open Mike-None
6. Recreation Manafe!', Report - Michele Bergh
Parks & Recreation Commission Minutes
).J ovember 8, 2006
Page 2
Director of Parks and Recreation, Bill Maertz reported that requests for proposals were
sent out to sell the 5'h Street property, Staff is continuing to look for staff for adult fitness
and teen programs.
Mr. Maertz shared that staff is creating a DVD with the help from our Cable Department to
use for marketing purposes. It will feature highlights from our programs set to music.
Mr. Maertz reported that the Senior Center will be hosting several local tours in December
and January.
7. Director's Report - Bill Maertz
Director of Parks and Recreation, Bill Maertz reported that the City Council approved
the YMCA Memorandum of Understanding on Monday, December 11. Under the terms
the City will receive 24 hours of gym time. Staff is pursuing an 8,000 square foot gym while
staj~ng within the $12 million budget versus the proposed half size.
Mr. Maertz shared an update regarding the construction of the new Library, River's Edge
Commons Downtown Park and the current park dedication balance.
Mr. Maertz shared that Pinewood Golf Course would host a Minnesota PGA Junior Golf
i\SSOelation 2007 Tour Event.
Commissioner Kuester asked what ages and if they rotate to different courses.
Mr. Maertz stated that the ages for the Minnesota PGA Junior Golf tournament would be
for ten and under and is considered a transition tour for junior golfers.
8.1. Community Events - None
8.2.A. Land Use Cases Request by United Health Inc. for an Administrative Subdivision in the
Elk Path Business Center Addition
Chris Leeseberg, Planner/Park Planner presented information on United Health Inc.
request for an administrative subdivision. Located on the southeast corner of Waco Street
and Business Center Drive which will consist of a single 20.6 acres lot with approximately
189,000 square foot data center.
Mr. Lceseberg stated that staff recommends that park dedication be paid in the form of cash,
at the rate applicable at the time of fmal plat approval, for 20.6 acres.
Commissioner Kuester asked if the grove of trees that are in the vicinity of this development
would be impacted by this project.
Mr. Leeseberg shared that the grove of trees will not be impacted by this project.
MOVED BY COMMISSIONER NYSTROM AND SECONDED BY
COMMISSIONER PETERSON TO RECOMMEND TO COUNCIL TO ACCEPT
PARK DEDICATION IN THE FORM OF CASH AT THE RATE APPLICABLE
AT THE TIME OF FINAL PLAT AFPROV AL. MOTION CARRIED 6-0.
Parks & Recreation Commission :Nlinutes
November 8, 2006
Page 3
8.2.B. Land Use Cases - Liberty Heights Estates Discussion
Chris Leeseberg, Planner/Park Planner shared that the developer of Liberty Heights Estates
is proposing a triangular smaller sized park than what was recommended. Staff believes this
to be an inappropriate use of land for the following reasons:
a, length of county road adjacent to proposed park with no controlled intersection
b. unusable portion of property for park uses
c. not on subject property
Director of Parks and Recreation, Bill Maertz reminded the commissioners that the subject
park being discussed was the smaller 1-2 acre park on the south end of Liberty Heights
Estates.
Mr. Leeseberg stated that staff will continue to pursue maintaining a 1-2 acre park along
wetland on the southern end of the development.
MOVED BY COMMISSIONER NIZIOLEK AND SECONDED BY
COMMISSIONER KUESTER TO RECOMMEND STAFF CONTINUE TO
PURSUE A 1-2 ACRE PARK NEXT TO THE WETLAND. MOTION
CARRIED 6-0.
8,3.A. 2007 Parks Capital Budget - Moved to workshop
SA.A. Discussion Items -None
9,1.A. Land Use Cases ~ None
9.2.A. Park/Trail Developments - Great Northern Trail Tunnel
Director of Parks and Recreation, Bill Maenz shared that the runnel was complete and
fencing will be put in to prevent ATV and snowmobile use. This tunnel will help to be able
to complete the trail to Zinunerman.
9.2.B. Park/Trail Developments - DNR Grants
Director of Parks and Recreation, Bill Maertz shared that the DNR Grant was not granted
to improve Hillside Park Staff is now working on another DNR Grant for a trail downtown
1O,lA Update November 13 2006 City Council Meeting
There was no update presented.
10.1.B. Update November 14 2006 Plannin~ Commission Meetin~
There was no update presented.
11. Other Business
12. Adjournment
Parks & Recreation Commission :rv1inutes
November 8, 2006
Page 4
There being no further business, the meeting adjourned at 6:55pm.
Respectfully submitted,
~~
Tonya Love
Recording Secretary
NOTICE IS HEREBY GIVEN that the Elk River City Council and Housing and Redevelopment
Authority will be attending a Downtown Revitalization Tour (of the Bluff building and The Bank of
Elk River building) on March 5, 2007, at 4:30 p.m., at the Flannery Construction Office, 633 Main
Street, Elk River, Minnesota. A quorum of the Elk River City Council and Housing and
Redevelopment Authority members may attend the tour; however, they will not convene any
meeting, and no action will be taken by the City Council or Housing and Redevelopment Authority
during the tour.
Dated: February 28, 2007
By: Tina Allatd
Its: City Clerk
S:\Council\Fonns\Meeting Notices\Tour.doc
MEMORANDUM
TO: City Council and Housing and Redevelopment Authority
FROM: Tina Allard, City Clerk
DATE: March 5, 2007
SUBJECT: Downtown Revitalization Tour
The downtown revitalization tour will begin at 4:30 p.m. from the Flannery Construction
office located on the west end of the Bluff building (near McCoys Pub).
4:30 p.m.
. Bluff Building Tour
5:00 p.m.
. The Bank of Elk River Tour
5:30 p.m.
· HRA Meeting Begins at City Hall
Dress appropriately for walking around a construction site. Factor in possible mud and snow
around the sites. Hard hats will be provided.
If you have any questions, please contact staff at 763.635.1000.
S:\Council\Downtown Tour Info.doc
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