ERMUSR MEMOS 03-10-2009Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
March 6, 2009
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Gumphrey
Daryl Thompson
From: Vance Zehringer
Subject: Miscellaneous
Phone: 763.441.2020
Fax: 763.441.8099
Sales of electricity for February 2009 aze up 12% over a like period last yeaz. Sales of water for
February 2009 aze down 8.5% over a like period last year, but sales year-to-date aze up 2.9%.
Discussions with potential power suppliers has not progressed appreciably over the last two
weeks pending fiuther input from our present power supplier, Connexus Energy. The
Confidentiality Agreement has been changed to eliminate reference to the City of Elk River and
has been signed and forwarded to Connexus Energy. A meeting has been scheduled on Mazch 9,
and if anything of any substance results, that information will be presented in the closed meeting.
We did generate anon-binding Letter Of Interest with Central Minnesota Municipal Utilities
Agency (CMMPA) to keep us in the loop for a share of the Big Stone II Project in case we decide
that is in our best interest. A copy of that non-binding Letter Of Interest is attached. CMMPA
continues to be interested in partnering with us in becoming our full requirements power supplier
once our contract with Connexus Energy expires. Contacts with Minnesota Municipal Power
Agency (NIlVIPA) have failed to produce anything meaningful -they aze not interested in adding
additional members at this time. As mentioned at the Feb Commission Meeting, Wright
Hennepin Cooperative Electric Association (WHCEA) has decided not to make us an offer
because Basin Power Cooperative has made a decision not to sell power to any municipals. They
have been removed from the list of potential power suppliers. Finding a suitable wholesale power
supplier may be more difficult than originally perceived!
Staff was directed to secure bids for inspecting the integrity of the Jackson Street Water Tower.
To date, KLM Engineering and SEH Engineering have expressed interest is performing same for
us. The KLM bid has been received, but we are awaiting a bid from SEH. Both bids will be
presented for your consideration at the April commission meeting. Some pertinent information
was included in the cover letter accompanying the KLM bid. That cover letter is attached.
The Contract for a communication antenna on the Gary Street water tower is in the fmal stages,
and we hope to be able to provide the finished product for action at the March 10 Utilities
Commission Meeting.
An Annual Report to the Elk River City Council was presented at their March 2 meeting. A copy
of same is attached for your perusal.
J~
Elk River
ML1111C1p~ Ut111t1eS
13069 Orono Parkway • P.O. Box 430 Phone: 763.441.2020
Elk River, MN 55330-0430 Fax: 763.441.8099
March 5, 2009
To: Bob Schulte, CEO
Central Minnesota Municipal Power Agency
459 South Grove Street
Blue Earth, MN 56013
Subj: Expression Of Interest In Big Stone II Project
This letter shall serve as an expression of interest by Elk River Municipal Utilities
(ERMU) for participation in the Big Stone II Project at a level of approximately 30
megawatts. We understand that this expression of interest is non-binding, but is meant to
start a process if mutual due diligence, data gathering, and information exchange between
ERMU and Central Minnesota Municipal Power Agency (CMMPA), and the Big Stone II
Project. It does not represent a commitment by ERMU, CMMPA, the Big Stone II
Project, or any other party to actually participate in the Big Stone II Project, or that
participation would be offered to ERMU.
Sirnc/e~ely,
(/ 11 'Q/lte~ ~
Vance Ze ger
General Manager, ERMU
Copy: Troy Adams, ERMU
Zehringer, Vance
=rom: Shawn Mulhern [smulhern@klmengineering.com]
Sent: Thursday, March 05, 2009 12:46 PM
To: Zehringer, Vance
Cc: Laurie Sylte
Subject: Proposal for Jackson Street Water Tower Inspection
Attachments: Elk River, MN MU 100,000 Rivited Tower.doc
Vance,
Please review the attached proposal.
As discussed the rough estimate for a demolition would be in the range of $25,000-$50,000.
A discussion with my partner Jack Kollmer regarding the disposal of scrap metal with lead paint is still not regulated. In
the future we do expect to see this will change into a law. The cost of this would be very difficult for KLM to estimate.
Again the removal could be done at ground level with Blastox or Pre-tox. The owner will still be on the record for this
material from cradle to grave. If it does get scrapped out there is a transfer of ownership.
After KLM has evaluated the tower we will be able to give you a better idea as to the cost effectiveness of taking it down
or keeping it and repainting.
In our enclosures I have include the MPCA rule for lead paint removal.
Please call me with any questions.
Shawn A. Mulhern
Marketing Manager
KLM Engineering, Inc.
651-773-5111 Phone
651-773-5222 Fax
612-817-9899 Cell
smulhern(a~klmengineerin .com
vwvw.klmen ineerin~ c~
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