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4.1. SR 01-16-2001City of River MEMORANDUM Item//4.1. TO: FROM: DATE: Mayor & City Council Pat Klaers, City Administrator January 16, 2001 SUBJECT: Utilities Commission Update Councilmember John Dietz is the City Council representative on the Elk River Municipal Utilities Commission. At this January 16, 2001, City Council meeting, John is scheduled to provide the council with an update on December and January Utilities activities. Attached for your review is the agenda for the January 16 Utilities Commission meeting and the draft minutes from the December 12, 2000, Utilities Commission meeting. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone (763) 441-7420 · Fax (763) 441-7425 ITEM NUMBER ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION AGENDA JAUNUARY 16, 2001 Elk River Utilities Offices 1. Call meeting to order at 4:00 January 16, 2001 ACTION TAKEN o Consider Utilities Agenda 2.a Designate First National Bank official depository for 2001 2.b Designate Elk River Star News official newspaper for 2001 3. *Approval of previous meeting minutes 4. *Check Register OLD BUSINESS 5.1 Update Well #7 and Proposed Water Tower 5.2 Review and Consider Pre-Engineering Agreement for LFG Generation Project 5.3 Update Communication Study NEW BUSINESS 6.1 Presentation by Greg Oxley of MMUA 6.2 Review and Consider Energy City ContributiOn 6.3 Review and Consider Job Description for new Labor position *Financials Other Business *Consent Agenda items are considered to be routine and will be approved by one motion. ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION December 12, 2000 Elk River Utilities Offices Members Present: John Dietz, President; George Zabee, Vice Chairman; James Tralle, Trustee Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water Superintendent; Patricia Hemza, Office Manager Others Present: Pat Klaers, City Administrator; Michele McPherson, Director of Planning; Dave Anderson, Parks and Recreation- 1. Call meeting to order at 4:00 P,M. December 12~ 2000 2. Consider Utilities Agenda Bryan Adams will have one additional item regarding an Economic Development request of the Elk River Utilities, to be discussed under Other Business. James Tralle moved to approve the Utilities Agenda for December 12, 2000, with the addition of one to be discussed under Other Business. George Zabee seconded the motion. Motion carried 3-0. 3. Consider Consent Agenda James Tralle moved to approve the Consent Agenda as follows: November Check Register Financials Approval of the November 14, 2000 Minutes George Zabee seconded the motion. Motion carried 3-0. 5.1 Update on location for Well g7, and Water Tower Bryan Adams updated the Commission regarding the location of Well #7, and proposed Water Tower. The City Council, on November 20, 2000, approved the location of Well #7, to be constructed at the NE comer of Co. Rd. 13, and the new Tyler St. on the previously owned George Deschenes property, and the Water Tower to be located in the Trott Brook Development Park. The following morning an objection was raised by Mr. Don Patton, of D.R. Horton regarding the Water Tower Site. The City Council elected to send the issue back to the Park and Recreation Commission for reconsideration. Commission reviewed the letter from D.R. Horton, Inc., dated November 20, 2000, a drawing reflecting 8 locations considered for a water toWer site, along with the pros and cons for each site. Page 2 Regular meeting of the Elk River Municipal Utilities Commission December 12, 2000 Bryan Adams reiterated the opinion of the Utility Staff, that a satisfactory case has been presented regarding the Trott Brook Park site, or the Hillside Park Site. They are the best sites financially, and hydraulically. Further, it was noted that the Park and Recreation Commission originally had agreed on the Trott Brook Park site. John Dietz explained the City Council's consideration ofD.R. Horton's position, noting that they did not feel they had been properly notified of the possibility of a water tower being built on that site. George Zabee does understand the concern by D.R. Horton, but does not understand their view regarding the value of the homes that will be built in that area versus existing less expensive homes. John Dietz stated that City Council approved the Trott Brook Park site, because they thought that D.R. Horton had been notified. Pat Klaers offered that D.R. Horton expected more formality in the information of the proposed tower site. Pat Klaers also responded that the Utilities has been offered the Deschenes property as a site, and that it is already owned by the City, and is not a park. Bryan responded to Pat Klaers inquiry about further clarification of the water pressure decrease at that site. John Dietz asks if the well could be put in Hillside Park, and the tower on the Deschenes property, citing Terry Mauer's calculations. Bryan noted that his calculations differ from those of the City Engineer, due to different design assumptions. Bryan Adams offered his opinion that quality services at reasonable prices, technically sound construction, and good risk management would be met at the Trott Brook Park site. James Tralle asked ifD.R. Horton would object to Hillside, and if it was a reality that D.R. Horton would have to build less expensive homes because of the tower. Pat Klaers said the Deschenes property is politically the best site for a tower, even if it is not as good financially. James Tralle further questions the financial responsibility of a tower site, with specific regard to the Black Property. Dave Anderson, speaking for the Park and Recreation Commission stated that the Park and Recreation are not happy with the Trott Brook Park site, and feels the Hillside Park area would be better. He also states that they feel that a water tower on the Trott Brook Park site would be ludicrous, and aesthetically unappealing. Dave Anderson does not feel that there 'is any rush to build the tower at this time. He also feels that further searching. for a site would be advisable. Dave added that he feels the approval of the Trott Brook Park site was a boondoggle deal. James Tralle asked Staff if the tower construction could be postponed, Pat Klaers asked Bryan Adams if an anticipated wet summer could delay the tower and well need. Bryan Adams responded that if a dry summer occurred, the water system could have difficulty meeting the demands. The possibility of stringently enforced sprinkling bans would have to be considered, as well as other measures to force conservation. John Dietz asked about the possibility of any alternatives offered by D.R.Horton. Dave Anderson said he is under the impression that the Black property could be dealt with immediately. Bryan Adams responded by saying that ultimately all liability falls to the Utility and the tower would be more expensive. George Zabee feels more attention needs to be paid to future probabilities of expansion. John Diez noted that the Deschenes property had not been presented to the City Council at the time of approval of the Trott Brook Park site. Bryan \dams again replied that the Utility is responsible for reliable and competent services to customers. ~e 3 .c ' 'r meeting of the Elk River Municipal Utilities Commission 'lSec...aber 12, 2000 John Dietz asked the Commissioners what action they would like to take, so it can be said that they have recommended the best option for all customers. George Zabee states that he is not against purchasing property for a tower site, rather than using park or City owned land. George Zabee moves to approve site 3a, the property in NE Comer Hillside City Park, (south of driveway on high ground), then to purchase site 6, SE Comer of Tyler and County Road 12. Discussion of the Black site followed, with Michele McPherson noting that the property is 1.6 acres. Bryan noted that there are high pressure natural gas lines on that area. He also advises that soil borings are being done next week for the NE Comer Hillside Park (north of driveway on lower ground), and that if soil borings were to be done on the Deschenes property, it would probably take about thirty days. When asked which other sites he would recommend, Bryan responded that sites 3, 5, and 8 are the possibilities. George Zabee rescinds his motion. George Zabee moves to recommend 3b, NE Comer Hillside Park (north of driveway on lower ground) for the rower site. Motion died for lack of second. ~an,,.s Tralle moved to select site #6, as a primary water tower site, (SE Comer of Tyler & County Rd 12). John Dietz seconded the motion. The question of price on the Black property was discussed. Bryan Adams said that the tower and property could cost approximately $200,000 more than the originally discussed plan. Discussion of the financial, liability, and time frames followed. George Zabee said that no bids could be allowed until a site is secured. James Tralle asks Bryan Adams if Park sites would not be available, would Bryan prefer site 6 or 7. Bryan i replied that he would prefer site 6. John Dietz asks again for discussion of site 8, and why it cannot be used. t Bryan Adams advises the Commission that if a tower cannot be built in a timely fashion, that well #7 should be icommenced without delay. James Tralle rescinds the motion on the floor, and John Dietz rescinds his second. James Tralle moved that further conversation continue at the Park and Recreation meeting at 7:00 PM at City Hall on December 13, 2000. John Dietz seconded the motion. Motion carried 3-0. George Zabee moved to recess the December 12, 2000 meeting, and continue December 13, 2000 at City Hall at 7:00 PM. James Tralle seconded the motion. Motion carried 3-0. Page 4 "(egular meeting of the Elk River Municipal Utilities Commission December 12, 2000 5.2 Update on Landfill Gas Generation Proiect Bryan Adams reviewed the Letter of Intent between Elk River Municipal Utilities and Elk River Landfill, and the Resolution from Sherburne County Board of Commissioners. He further advised that the preliminary engineering, project coordination and contract negotiation stages are now underway. The Pre- engineering agreement was presented, and the Commission concurred that it was feasible. Staff will return with the agreement at a future meeting. It was noted that parts of the wind generators are now being put into place 5.3 Update Well #2, and Radon Remediation The acid washing of the filter media has not been successful in removing enough radium to be successful. The remaining options are to landfill the media as hazardous waste or dilute the filter media with sand to get the aggregate concentration below the minimum for a standard landfill. Prices are currently being pursued for the landfill option. 5.4 Review Survey for Winter Installation of Residential Service Connections At the request of City Councilman, Thompson, his concern of requiring customers to arrange for trenching in the winter season, Commission asked Staff to survey other Utilities on their practice in the winter months. Commission and Staff reviewed the results and looked at four options. The option that has the Elk River Municipal Utilities installing or contracting to install the trench with added frost charge appears to be the most reasonable, and is recommended. James Tralle-moved to approve installation anct/or contracting for placing secondary services to customers on a year round basis, with an added frost charge during winter months. George Zabee seconded the motion. 6.1 Review and Consider Policy for Charges tO 3rd Parties Staff reviewed the policy involving invoices to other parties for services rendered, such as, costs and damages to our system by others. The Utilities are not compensated for the administrative time spent in billing and collection of these amounts. A suggested 10% increase on labor will cover supervision and administrative indirect costs. James Tralle moved to increase by 10%, the labor portion of third party invoices. George Zabee seconded the motion. Motion carded 3-0. 6.2 Review Minimum Bill for Demand and Off Peak Demand Customers Discussion centered on the present maximum billing demand at 30% of the demand charge or the actual c~emand multiplied by the demand charge for a minimum bill, and the actual costs to the utility. Staff recommends changing the 30% maximum charge to 3%. eage 5 ,t~"-r meeting of the Elk River Municipal Utilities Commission ~...Oer 12, 2000 George Zabee moved to approve the change to 3% of the demand charge for a minimum bill. i Tralle secOnded the motion. Motion carried 3-0. ~ Other Business James Bryan Adams advised the Commission of a request from Elk River Economic Development Authority to help defray the costs of advertising and promotion of public-private partnerships in Elk River. The Utilities is trequested to pay for one third of specific ads in specific publications, and they will associate the Utilities in those ads. George Zabee moved to assist the Economic Development Authority in their advertising program, at a cost of approximately $973.33 to the Utilities. John Dietz seconded the motion. Motion carried 3-0. i The next regular scheduled meeting of the Elk River Municipal Utilities will be January 16, 2000 at 4:00 PM in i the Elk River Utilities Offices. i James Tralle moved to recess the regular scheduled meeting of the Elk River Municipal Utilities Commission at i6:00 PM.  ',~' -tfullysubmitted, Patricia Hemza, Office Manager iThe recessed meeting of the December 12, 2000 Elk River Utilities Commission resumed at 7:00 PM at the 'City Offices. The Elk River Municipal Utilities Commission reconvened after the water tower discussion was concluded with the Park and Recreation Commission. Mr. Don Patton, from D.R. Horton, and Pat Klaers, City .Administrator, were present for both the Park and Recreation Commission and Elk River Municipal Utilities 'discussions. The Park and Recreation Commission voted to disallow a water tower being constricted in either park for visual aesthetic reasons. Don Patton could not offer any financial incentives to move the proposed water tower from the Trott Brook Park Site, although he is in the discussion stages of purchasing the Black property (Site 6), and could make this available to the Utilities for a sum of money. Much discussion followed concerning the proposed course of action, and possible alternatives if the 2 park sites (5 & 3) do not become available. George Zabee moved to recommend to the City Council to construct the water tower in the lower area of ~l,._.,e Park (site 3b). James Tralle seconded the motion. Motion passed 2-1, John Dietz voting nae. Page6 Regular meeting of the Elk River Municipal Utilities Commission December 12, 2000 John Dietz moved to adjourn the reconvened meeting of December 12, 2000, at 8:45 PM on December 13, 2000. James Tralle seconded the motion. Motion carried 3-0. ~, A~damfUlly submitted, General Manager