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6.3. ERMUSR 03-11-2008~j Elk River ^~ Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 February 29, 2008 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey John Dietz From: Bryan Adams Subject: Jackson Street Water Tower Phone: 763.441.2020 Fax: i 63.441.8099 The 2008 budget for the water department contains a $40,000 item to demolish the Jackson Streit tower. This same issue was discussed in 2002. Attached is the following information for your review. I) Item 5.2 of May l 5, 2002 minutes 2) Item 5.1 of October 10, 2002 minutes 3) Memos to Commission dated May 6, 2002, June 3, 2002 and October I, 2002 4) Item 6.4 of January 14, 2003 minutes Minor repairs were done on this tower in 2003. In approximately 2004, communication antennas were placed on this tower but the communication company went broke and final lease payments were never made. Your staff has been marketing antenna placement for this tower but has been unsuccessful due to tower location and not being tall enough. This tower has deteriorated where it either needs to be repaired or demolished. The cost of spot repair and painting the exterior is estimated to be in the $5,000 to $60,000 range. The cost of removal is in the $35,000 range. Staff continues to recommend this unused water tower be demolished. Page 2 Regular meeting of the Elk River Municipal Utilities Commission May 15, 2002 5.2 Update Jackson Street Water Tower The Elk River Utility Commission authorized the demolition of the Jackson Street Water Tower at the March 12, 2002 meeting. The Heritage Preservation Commission appeared before the Commission to request delay. They explained that they would like to have the Tower saved for its historical significance, as the first tower erected in Elk River, providing water to the citizens. Pat Dwyer advised that there are discussions taking place regarding the use of the tower as a receptacle for cell phone antennaes. The plan could generate approximately $10,000.00 to 512,000.00 annually, to help with the upkeep of the tower. Bryan Adams further explained that the property adjacent to the tower will be developed, which will make access to the tower difficult. Glenn Sundeen concurred. James Tralle advised that he would be willing to wait until the Heritage Committee returns with firm plans. George Zabee has offered to sell the tower for 51.00, to some other entity, relieving the ERiMU of maintenance problems. John Dietz inquired as to expenses in the maintenance of the tower. Staff responded by saying that the tower would need painting on a regular ten to twelve year schedule, and that the ladder and cage are in need of repair at the present time. Bryan was directed by the Commission to meet with Mr. Dwyer, and his contacts, regarding the use of the tower. Mr. Kragness reiterated the viewpoint of the Heritage Preservation Committee for saving the Jackson Street Water Tower. Bryan Adams will return to the Commission at a future meeting, with his findings. 5.3 Update CIP Programs Vance Zehringer updated the Commission on fifteen Conservation Improvement Programs (CIP) that have been submitted to Great River Energy for inclusion in their report to the Department of Commerce, and the State Legislature. Draft brochures for the new programs were reviewed, as well as two additional programs. James Tralle asked if Connexus has similar programs. The budget for the expenditures for CIP were reviewed, along with the yearly requirements. 5.4 Review Water Brochures The 2001 Annual Drinking Water Quality Report, Water Conservation Brochures, and a Water Your Lawn Wisely advisory were reviewed and discussed. The Water Quality Report is required by federal regulation disclosing any water contaminants. The last two brochures deal with making our water customers more sensitive to the need for water conservation. ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE ELK RIVER MUNICIPAL UTILITIES COMMISSION October 10, 2002 Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Trustee Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; Patricia Hemza, Office Manager Others Present: Pat Dwyer 1. Call meeting to order President James Tralle called the meeting to order at 4:00 PM on October 10, 2002. 2. Consider Utilities Agenda John Dietz moved to approve the Utilities Agenda for October 10, 2002. George Zabee seconded the motion. Motion carried 3-0. George Zabee moved to approve the Consent Agenda as follows: September 2002 Check Register September 9, 2002 Minutes Financial Reports After a brief discussion of the reports, John Dietz seconded the motion. Motion carried 3-0. 5.1 Review and Consider Future of Jackson Street Water Tower Pat Dwyer appeared to update the Commission on progress for securing digital communication use of the Tower. Mr. Dwyer advised that he does not have an agreement at this time, but feels that it will happen. He further added that he believes in saving the tower, and asks for consideration. Discussion centered on the time table for construction on the adjacent site, which would give access for the removal of the Tower. John Dietz noted that he has no desire to remove the Tower, feeling that it does have historical value. George Zabee added that he is undecided at this point. James Tralle moved to return to the question of whether or not to remove the Jackson Street Water Tower at the January, 2003 regular meeting of the Elk River Municipal Utilities Commission. J~ ElkRiver -~-~ ___. Municipal Utilities 322 King Avenue Elk River, bIN 55330 May 6, 2002 To: Elk River Municipal Utilities Commission James Tralle John Dietz George Zabee From: Bryan C. Adams Subject: Jackson Street Water Tower phone: 763.441.2020 Far: 763.441.8099 At the March 12, 2002, Elk River Municipal Utilities Commission meeting, authorization was given to demolish the Jackson Street Water Tower. As you may recall, the property directly east of this tower is being redeveloped. The property owner has given us permission to use his property to set equipment to remove this tower. Staff has secured two prices to remove this tower and they are as follows: Iseler Demolition $30,900 TMI $26,500 As seen in the recent article in the Elk River Star News, the Heritage Preservation Commission desires to preserve this tower. The tower will need to be painted in a year of so. The estimated cost is estimated to be: Paint Exterior Only $ 50,000 and on- going every 12 years ± Blast & Paint Exterior $100,000 The exterior ladder & cage is damages and needs to be repaired soon if the tower is kept. If the Heritage Commission or some other identity does not want to take the financial risk and liability for this tower, staff continues to recommend the tower be demolished soon. Ji r' k River Municipal Utilities 3?? King Avenue Eik River,lli~ 55330 October 1, 2002 To: Elk River Municipal Utilities Commission James Tralle John Dietz George Zabee From: Bryan C. Adams Subject: Jackson Street Water Tower phone: 763.441.2020 Fa~c: 763.441.8099 At the June, 2002, meeting, the future of the Jackson Street water tower was delayed until this meeting in an effort to find funding to keep this tower. Qwest has called me about the Freeport water tower but were not interested in the Jackson Street water tower. Pat Dwyer has indicated Horizon has an interest but not in the near future. To refresh your memory on this issue, attached are the May 6, 2002, and June 3, 2002, Commission meeting memos. I informed Pat Dwyer of our meeting date and time and he indicated he would be present for this decision. J, ~i k River ~~iunicipal Utilities 3?? Eiing Avenue F,lk River, b1N SS330 June 3, 2002 To: Elk River Municipal Utilities Commission James Tralle John Dietz George Zabee From: Bryan C. Adams Subject: Jackson Street Water Tower phone: 763.441.2020 Fa~c: 763.441.8099 On May 21, 2002, I met with Pat Dwyer, Kurt Kragness of the Heritage Preservation Commission, and Doug Derr representing Vertical Partners and a former resident of Elk River concerning the future of the Jackson Street Water Tower. Doug Derr, through his company, coordinated the installation of digital communication infrastructure between public and private entities. This includes coordinating telecommunication antenna on structure like water tower. In summary, the digital communication industry is expanding at an increasing rate and the need for future antenna sites is also increasing. The events of September 11, 2001, has slowed this industry but it is projected to pick up in the future. The use of the Jackson Street Water Tower as abase for communication antennas is unknown at this time and it may take 6 months to 2 years to explore this potential opportunity. The resulting revenue stream may or may not be sufficient to pay for the continued maintenance of this structure. The concept of placing antennas on a water tower and compromising its historic value is also debatable. Mr. John Alfords, the owner of the property directly east of this water tower, indicates he desires to start his redevelopment project this summer. The residence will be demolished in late summer with new construction taking place early 2003. The Heritage Preservation Commission is looking at the Elk River Municipal Utilities (ERMU) to take the risk and pursue the opportunity of potential antenna rental space to provide the necessary revenue to save this "historic" water tower. I indicated the Utility Commission makes the ultimate decision, but from my perspective this is a financial decision. It is more economical to remove the structure than maintain it, less liability from both property damage or personal injury from someone climbing it and falling off. Also by removing this structure, a 100' x 100' lot becomes available for redevelopment. If some other entity desires to pursue this opportunity in an effort to save this structure, we will provide our utmost cooperation and expertise, but preservation effort is not the ERMU's mission. One noteworthy conclusion did evolve from our discussion. Due to the projected increase in wireless communication and increase demand for aerial antenna sites, Elk River should do a study to identify potential antenna sites from a technical, land use and aesthetic prospective. 2 ELK RIVER MUNICIPAL UTILITIES REGULAR MEETING OF THE UTILITIES COMMISSION January 14, 2003 Members Present: James Tralle, President; John Dietz, Vice Chair; George Zabee, Tnrstee Staff Present: Bryan Adar~is, General ~~Ianager; Glenn Sundeen, Line Superintendent; David Berg, ~~'atcr Superintendent; Patricia Hemza, Oflice Manager Others Present: Terry Maurer, Howard R. Green Company, John Alfords 1. Call meeting to order January 14 2003 2. Consider L~~tilities Agenda George Zabee moved to approve the Utilities Agenda for January 14, 2003. John Dietz seconded the motion. i~~otion car7-ied 3-0. George Zabee moved to designate First National Bank official depository for 2003, and designate Elk River Star News official newspaper for 2003. John Dietz seconded the motion. Motion carried 3-Oy 3. Consider Consent Agenda John Dietz moved to approve the Consent Agenda as follows: December, 2002 Check Register December 10, 2002 Minutes I= financials George Zabee seconded the motion. I~~Iotion carried 3-0. 6.4 Review ~~ Consider Jackson St. Water To~~er George Zabee moved to postpone any action or discussion on the Jackson Street Water Tower until the April, 2003 Utilities Commission meeting. t~~lotion died for lack of second. Bryan Adams ad~~ised Commission that Metropolitan Cardiology Consultants have decided that they ~~~ill not be using the Jackson St. ~~-ater Tower for a cell phone antenna, and no other inquiries have been IlladC. John n(Ct7, Spok(' lil fl~'nr- of ~.-e~~ninrr t ~~~ .."-„ -~ r.~,~ t_:_._ rii ~,,,.~ ,l. Tv,,,.r as a licii~ vi ui~ in~iUl"y of LIK I~IVer, arld that he believes other companies will be interested in using the Tower as a site for cell phone antennas. John Alfords appeared to relate the time frame for his construction on the property directly east of the Tower. NIr. Alfords would be amenable to having the Utilities use his property for removal of the Tower for the next three months. After that, his property would no longer be available. IIe further noted that he personally feels it is an eye-sore, and is of no value historically. James Tralle asked Dave Berg, Water Superintendent what his opinion is, and he replied that he would like to have it removed. James Tralle asked Staff for *~articulars of what portions need repairing. Staff listed the needed repairs, noting that painting could be ayed for another year, but other stnrctural repairs should be done immediately, if the Tower is to be s~~ved. Page 2 Regular meeting of the Elk River Municipal Utilities Commission January 14, 2003 George Zabee said that since the Tower sits in the middle of the old town of Elk River, there may be some significance for saving it. James Tralle questioned if the Tower would last another sixty years, with repairs. Bryan Adams ans~~~ered that concrete around the anchor bolts was cracking, but if repairs are accomplished, and regular maintenance perfornled, it should last for many years. John Alfords asked if cell phone companies would really be willing to put antennas on such an old structure. He further asked why the site is not fenced to prevent trespassing, or vandalism. Commission said that would be an item to further discuss. James Tralle thinks that the Tower should be repaired, and gamble that it would eventually be used for a cell phone tower site when the economy improves. Bryan advised that quotes would need to be obtained for repairs. James Tralle moved to keep and to perform necessary repairs to the Jackson Street `Vater To~~-er. John Dietz seconded the motion. Motion carried 2-0, George Zabee abstained. Items 6.3, and 6.4 will be discussed before 5.2, to accommodate Tem~ iVlaurer's presence at the meeting. G.~ Feasibility Study -Boston and Concord St. Utilih- and Street Im ~rovements The pertinent sections of the feasibility study for Boston Street and Concord Street Utility and Street Improvements prepared by Terry Maurer of Howard Green Company were reviewed. Terry Maurer, and Bryan Adams responded to questions from the Commission, saving that ultimately they believe the subject viii be dropped for lack of interest by citizens. James Tralle moved to recei~ e and file the Feasibility Study -Boston and Concord St. Utility and Street Improvements. John Dietz seconded the motion. Motion carried 3-0. 6.6 Feasibilih~ Study - 2003 Paycnrent Rehabilitation Improvements The Feasibility Study-2003 Pavement Rehabilitation Improvements was discussed. The question of offtrin~~ to re-place curb stops on ,Morton was the center of the discussion. It is believed that doing so while the street is under construction ~~~ould be advantageous to citizens, as well as the Utilities, and City. It is not known at this time ho~a~ many customers this would impact, but it could be as few as two. Terry Maurer explained the Feasibility Study expenditures. ~.2 IZeyic~y ~ Consider 2003 ~b'ire Staff presented a bid tabulation for 2003 electric wire needs. The difference between EPR versus XLP wire was discussed. Glenn Sundeen responded to questions noting that the EPR has superior workability, and longevity. George Zabee moves to accept low bids, with the exception of approval of the recommended EPR wire from Resco, at a slightly higher amount than the lower cost XLP. John Dietz seconded the motion. Motion carried 3-0.