3.0 ERMUSR 10-09-2007ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
September 11, 2007
Members Present: Jerry Takle, President; Jerry Gumphrey, Vice Chair; James Tralle, Tryzstee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; ~'
David Berg, Water Superintendent;
Theresa Slominski, Finance Director/Office Manager;
Troy Adams, Engineering Manager; Judy McSpadden, Recording Clerk
1. Call meeting to order September 11, 2007
President Jerry Takle called the September 11, 2007, meeting to order
2. Consider Utilities Agenda
James Tralle moved to approve the September 11, 2007, Utilities Agenda. Jerry
Gumphrey seconded the motion. Motion carried 3-0.
3. Consider Consent Agenda
Jerry Gumphrey moved to approve the Consent Agenda as follows:
August Check Register
August 14, 2007, Minutes
Financial Reports
James Tralle seconded the motion. Motion carried 3-0.
5.1 Staff Up-dates
Bryan Adams reported on the progress of the Northstar Access wireless Internet system.
Currently they have approximately 50 customers connected with the capability of 150.
MMUA's summer meeting covered the time of use metering that will be implemented in the
future. MMUA will be hiring someone to coordinate the CIP programs for the municipals'.
Glenn Sundeen informed commissioners of a primary outage due to a dead tree falling on
overhead electric lines. Secondary outages were due to old cable failing and squirrels. The
current rebuild projects were discussed. James Tralle asked what happens to the old cable,
Glenn responded it was left in the ground and abandoned. Troy Adams is documenting the
old cable for mapping and future locating. Jerry Gumphrey felt that the old cable should be
removed. Glenn responded that it would be very costly.
Troy Adams reported 12 Security system installs with numerous service calls. The V~aco
Substation transformer was inspected at the site and found to have some loose parts from
assembly and additional loose parts laying in the bottom of the tank. This will be sent bacl~ on
Friday September 14`!' to the manufacturing plant for inspection. James Tralle asked if we
could ask for an extended warranty due to the issues. Staff responded that we already have a
five year warranty. Jerry Takle indicated an additional extended warranty would probably,not
be given. Generally problems develop in the first year of operation.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
September 11, 2007
David Berg updated on the water maintenance being done on the hydrants, valves, and
flushing of hydrants.
Theresa Slominski reviewed the deposit procedure and progress to date. The Utilities... and
City have joint property and liability insurance through the MN League of Cities. The City is
looking at changing the deductible on the insurance policy to a $5000 deductible instead of the
current $2500. The majority of our damages are under the $2500 range and never make it to
the claim filing stage. There would be a premium savings to change the policy. Also, the
health insurance with Blue Cross Blue Shield will increase by 12.7% for 2008. This will be
approximately $50,000 for Utilities portion and employees at $150 per year for single
coverage, $300 for single plus one, and $500 for family coverage. Jerry Gumphrey would like
to revisit this issue to ensure that it will not be a burden to the employee, staff responded the
insurance committee made up of employees can meet to discuss the costs and the 75% / 25%
split.
5.2 Review Abandoned Water Service Policy
As homes are demolished or moved from a site, the abandoned water service continues to
be a problem. Recently there have been a number of houses demolished on either major
streets or streets that were recently rebuilt and the county or city will not issue street disruption
permits to allow the owner to disconnect the water service. The county or city does not want
the new street cut and damaged to remove a water service that may never leak. The utilities
position is the possible contamination from the stub water lines. The major concern is finding
the correct or unknowing property owner and having them fix a leak if and when one
develops.
Our current policy allows the property owner to post a bond, but many property owners
do not want the hassle of the long term bond. City Engineers suggest having the property
owner pay Elk River Municipal Utilities to take on the liability to remove the water service
when it develops a leak. Discussion followed regarding the options. Jerry Gumphrey would
like staff to get pricing to repair a leaking water service. This will be revisited at a future
meeting.
5.3 Review Elk River Geolo~y
In August Bryan Adams and David Berg attended a DNR sponsored meeting concerning
water quality and quantity issues in the northwest suburbs. The main purpose was to promote
the shared use (and construction cost) of a proposed surface water treatment plant in Ramsey,
Minnesota. DNR wants the City of Ramsey to use a Mississippi River source treatment plant
in lieu of Mt. Simon Hinkley aquifer wells. DNR is allowing Elk River to utilize the Mt.
Simon Hinkley aquifer because of our pro-active conservation record and being outside the
seven county metro area. Area maps of the northwest suburbs were reviewed. Elk River is on
the edge of the Mt. Simon Hinkley aquifer that runs under the metro area across and into
Wisconsin. If more communities tap into the aquifer, the water table in the aquifer could drop
to the point of Elk River being out of water. This is why the DNR wants us to have test wells
to monitor the water depth in the aquifer.
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Regular meeting of the Elk River Municipal Utilities Commission
September 11, 2007
6.1 Review & Consider Bid Tabulation for Well #9 Construction
On September 6, 2007, bids were received for the construction of Well #9. Staff
recommends awarding to Traut Companies, the lowest responsive bidder.
James Tralle moved to approve Traut Companies, the lowest responsive bidder, for Well #9
construction. Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.2 Review & Consider Proposed 2008 Capital Proiects
The first cut of the capital budget for 2008 was reviewed. Electric construction and
rebuild projects were reviewed. Staff added there is cable available in inventory for some of
the projects. Water projects include painting or removing the Jackson Street tower. Staff wvas
directed to look into the possibility of someone taking over the care and upkeep or removal.
The Engineering and Administrative department capital budgets were also reviewed.
6.3 Review Substation & Well Electric System Maintenance
In the process of compiling the proposed 2008 capital budgets, some maintenance items
were found that need to be addressed. These items are building roof inspections, substation
maintenance, and water treatment plant electrical inspections.
Jerry Gumphrey moved to approve the inspections needed for buildings, substation
maintenance, and water treatment plants electrical equipment. James Tralle seconded the
motion. Motion carried 3-0.
6.4 Review Wind Power Tariff
Elk River Municipal Utilities offers a Wind Power program through Great River Energy
where our customers can purchase blocks of 100KWH of wind power for an additional $2.25
per month. There are approximately 197 customers on the program. The wind power rate
was recently changed from $2.25 to $1.90 per block. The State Legislation previously
required electric utilities to make good faith efforts towards providing renewable energy. The
Renewable Energy Standard Legislation passed in 2007 changed from "good faith effort" to
"shall provide a % of their total electric sales to retail customers from eligible renewable
technologies". With this change from "good faith efforts" to "shall", is it ethical to promote a
program where customers pay more for a product we are now obligated to provide?
Consensus from commissioners is to send a letter to the customers that are on the program
notifying them of this change and asking if they still want to continue.
Jerry Takle moved to approve the rate change from $2.25 to $1.90 per block for wind power.
Jerry Gumphrey seconded the motion. Motion carried 3-0.
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Regular meeting of the Elk River Municipal Utilities Commission
September 11, 2007
Other Business
There was no other business.
The next regularly scheduled meeting of the Ells River Municipal Utilities Commission
will be Tuesday, October 9, 2007.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:45 p.m.
spectfully s bmi d,
Judy Mc adden
Recording Clerk