4.3. SR 09-16-2002City
MEMORANDUM
TO:
Mayor and City Council
FROM:
DATE:
Pat Klaers, City Admin~r
September 16, 2002
SUBJECT: Utilities Commission Update
Item ~ 4.3.
Councilmember John Dietz is the City Council representative on the Elk River Municipal
Utilities Commission. At this September 16, 2002 City Council meeting, John is scheduled to
provide the Council with an update on Utilities activities. Attached for your review are the
draft minutes from the September 9, 2002, Utilities Commission meeting.
;P-IO-ZOOZ
03:49PM FROM"'ERMU 763-441-8099
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER MUNICIPAL UTILITIES COMMISSION
September 9, 2002
T-977 P.OO1/OOZ
Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David
Berg, Water Superintendent; Patricia Hemza, Office Manager
1. Call meeting to order
President James Tralle called the meeting to order at 4:00 PM on September 9, 2002.
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda for September 9, 2002. John
Dietz seconded the motion. Motion carried 3-0.
John Dietz moved to approve the Consent Agenda as follows:
August 2002 Check Register
August 20, 2002 Minutes
Financial Reports
After a brier' discussion of the reports, centering on purchased power, George Zabee
seconded the motion. Motion carried 3-0.
5.1 Review 2003 Safety Trainin~ Budget
Commission reviewed the revised Training Budget for 2003. The revision exhibited the
costs for the training only, with no employee labor allocations. A detailed breakdown from
MMUA, which explained how the cost sharing between City and Utility for ti'aining are
arrived at was discussed and reviewed. John Dietz and George Zabee noted that the
programs are expensive, but appear to be worthwhile, and necessary.
5.2 Review 2003 Capital Project PEoiections
Staff presented the proposed 2003 Capital Budget, the proposed 10 Year forecast Capital
Budget, and the 2003 back-up details. The large extraordinary items were discussed. Truck
additions and replacements were also reviewed with questions from Commission, and
responses from Staff.
SEP-IO-ZOOZ 03:49PM FROM-ERMU ?$~-441-8099 T-g?? P.OO2/OOZ F-O05
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
September 9, 2002
5.3 Review Alternate Water Rate Desi~,ns
The discussion of various water rate designs continued from past meetings. Staff
presented Commission with sample inclining block rates to help curb lawn sprinkling, and
encourage conservation. A water rate study, a residential spreadsheet reflecting a range of
customers with resulting costs, and sprinkler only customer spreadsheets along with
commercial customers were reviewed. Commission views the results of the studies, and the
inclining block rates favorably. James Tralle favors making the increase in one step. John
Dietz, and George Zabee favor increases in a two step process. James Tralle stated that he
would agree to the lower rate, and re-visit the next step in one year. Staffwill return to a
future meeting with firm rates for approval by Commission.
6.I Land Purchase for Well #8
A proposal for the purchase of land in the area of the new Grace Assembly of God church
for future Well #8 was reviewed. It was noted that the area Lot 1 is the Church property, and
Lot 2 is the new park for the City. John Dietz asked if the Well #8 would be too close to
Facility #7, and Bryan Adams responded that Well #8 would be a peaking well only. The
cost savings of' this project was further reviewed. Stuff will return with a purchase agreement
for the [and.
Other Business
There was no Other Business to discuss.
The next regular scheduled meeting of the Elk River Municipal Utilities Commission
will be Thursday, October 10, 2002, at 4:00 PM in the Utilities Offices.
President, James Tralle adjourned the September 9, 2002, meeting of the Elk River
Municipal Utilities Commission at 5:10 PM.
Respectfully submitted,
Patricia Hemza
Office Manager