5.1. SR 01-22-2002Item 5.1.
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Pat Klaers, City Admini~or
January 22, 2002 ~
Utilities Commission Update
Councilmember John Dietz is the City Council representative on the Elk River Municipal
Utlifies Commission. At this January 22, 2002 City Council meeting, John is scheduled to
provide the Council with an update on Utilities activities. Attached for your review is the
draft minutes from the January 15, 2002, Utilities Commission meeting.
N-I?-ZOO2 IO:Z3AM
FROmvI-ERMU
?B3-441-80gg
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF TH'E
UTILITIES COMMISSION
T-204 P.001/003 F-?ll
January 15, 2002
Members Present: George Zabec, President; James Tralle, Vice Chair; John Dietz, Tmstcc
StaffPrcsent: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water
Superintendent; Patricia Hcmza, Office Manager
Others Present: Pat Klacrs, City Administrator; Ron Black, Attorney; Vance Zehringer, Key Accounts
Consultant; Robb Kirkpatrick, and Kenneth Mitchell, Alliance Christian Academy
1. CallJneetingto order Januar~lS,_2_002
2. Consider Utilities A~enda
James Tralle moved to approve the Utilities Agenda for January l 5, 2002, with Item 6.3, and Item
5.4, to be discussed first. John Dietz seconded the motion. Motion carried 3-0.
James Tralle moved to designate First National Bank official depository for 2002, and designate Elk
River Star News official newspaper for 2002. John Dietz seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consem Agenda as follows:
December, 2001 Check Register
December 11,2001 Minutes
December 20, 2001 Minutes
John Dietz seconded the motion. Motion carried 3-0.
6.3 Christian Missionary Alliance WAC Feeq
Robb Kirk'patrick, and Kenneth Mitchell, Alliance Christian Academy appeared to request and appeal
the WAC charges billed to the Academy on August 31, 2001. Their view was that the WAC and SAC
charges are not applicable, because the building is a re-organization rather than expansion. They feel that
presently no additional people will be at the sire. They cited examples from the metropolitan waste council,
that they feel are being over-looked. They re-iterated that they feel that Alliance is not a commercial
property, and is only being re-developed using the existing potential waste-water, with no increase.
James Tralle asks if the City has ever refunded SAC fees that have been paid. Pat Klaers responded
that they had not refunded SAC fees.
Bryan Adams explained that the City Building Officials set thc fees, according to guidelines from the
metropolitan waste cmmcil. Elk River is not under the jurisdiction of the met council, but does follow
guidelines for the calculations.
JAN-I?-2OOZ IO:~3AM FROIVI-ERMU 763-441-8099 T-204 P.002/003 F-711
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
January 15, 2002
James Tralle notes that the Utilities have been consistent with all other facilities, with special noting
of the Elk River Public Schools.
Pat Klaers said the metropolitan council is used as a guide, rather than a rule.
John Dietz asked if schools and churches are charged differently for WAC and SAC charges; Bryan
Adams replying no.
James Tralle moved to deny the request from Christian Missionary Alliance for reduction of the
WAC charges billed August 31, 2001. John Dietz seconded the motion.
George Zabee asked for further discussion, and states that he wants to stay consistent, but if the City
would change its mind on the refunding of SAC charges, the Utility would again look at the issue.
Motion carried 3-0.
5,4 Revie~ LFG Contracts
Bryan Adams updated the Commission on the landfill gas to electric generation project. Ron Black
appeared to review the following documents:
a. Ch-ant of Easement
b. Gas Purchase Contract
c. Service Agreement
d. Security Agreement/Promissory Note
James Tralle asked if there are red flags in the documents that should be discussed. Ron Black and
Bryan Adams responded witl~ possible scenarios that could occur, and the question of the quality of gas at a
future time. George Zabee asked about an oversight committee. James Tralle noted that he feels the LFO
project is an excellent conservation tool. By consensus, the Commission desires to continue with the project.
5.3 Review & Consider CIP Spending Options.
In review, the Minnesota Energy Security & Reliability Act enacted in 2001 requires municipal
utilities to spend 1.5% of gross electric revenues on Conservation Improvement Programs (CIP).
Compliance is required by June, 2003.
Vance Zehringer presented a list of possible programs. Vance Zehringer, and Bryan Adam~ ranked
the desirability of the proposed programs, and explained the list to the Commission.
Maximizing benefit to customers, while minimizing shaft time is important, stressing the need to
focus on a few of the programs, rather than the entire list. Staffwas directed to return with fewer choices for
spending the needed amount of money.
5.1 Update Subst~t. tion North
Bryan Adams reviewed and updated the proposal phase for Substation North. He further proposed
that ERMU will be the general contractor for the project. The Commission concurred.
JAN-I?-2002 10:24A~ ;ROM-ERMU 763-441-8099 T-Z04 P.003/003 F-?ll
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
January 15, 2002
5.2 Update Power Plant Garage Facility
The site plan, floor plans, and elevation of the garage addition at the power plant were reviewed.
Staff advised that the conditional use permit process is underway at this time.
5.5 Review.& Consider Water Service Le.~k Assessment
No discussion on this topic, waiting for City to complete rewording ordinance.
Authorize Land Purchase for Booster / Pressure Reducin_~ Station
Staffpresented the Commission with a map with the location of the small piece of land on which to
locate the booster station, and a purchase agreement for the purchase.
James Tralle moved to approve the purchase agreement for the land to relocate a booster station and
construct a water main. John Dietz seconded the motion. Motion carried 3-0.
6.2 Review & Consider Flealth Insurance Rebate
The Elk River Municipal Utilities received checks on December 20, 2001 for $13,197.14 for refunds,
as a result of the favorable group health claims experience in the years 1999, and 2000. Discussion between
Staff and Commission centered on the best way to apply the refunds. The employees used their health
insurance wisely, and were very healthy in those two years.
James Tralle moved to give each employee hired before January 1,2001, and covered by the
company health plan, one pay period with no deduction for health coverage. John Diem seconded the
motion. Motion carried 3-0.
Other Business
There was no Other Business to discuss.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be February 19,
2002.
President Zabee adjourned the meeting of the Elk River Municipal Utilities Commission at 5:35 PM.
Respectfully submitted,
Patricia Hemza
Office Manager