3.0 ERMUSR 03-14-2006ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
February 14, 2006
Members Present: Jerry Takle, President; John Dietz, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent; Theresa Slominski, Office Manager;
Judy McSpadden, Recording Clerk
Others Present: Lori Johnson, City Administrator
1. Call meeting to order February 14, 2006
President Jerry Trkle called the February 14, 2006, meeting to order.
2. Consider Utilities Agenda
John Dietz has two items for discussion under Other Business. James Tralle moved to
approve the February 14, 2006, Utilities Agenda. John Dietz seconded the motion. Motion
carried 3-0.
3. Consider Consent Agenda
John Dietz wanted an explanation on a refund check along with some questions on the
financials, staff responded. Jerry Takle asked for clarification on the LFG account.
James Tralle moved to approve the Consent Agenda as follows:
January Check Register
January 10, 2006, Minutes
Financials
John Dietz seconded the motion. Motion carried 3-0.
5.1 Staff Up-dates
Bryan Adams updated the Commissioners on the status of the 4~' engine at the LFG plant.
The necessary air permit has been secured from the MPCA however the final hold up is
securing a signed contract from Waste Management and Sherburne County. The Aquifer
Storage & Recovery project for Well #2 has been approved by Minnesota Department of
Health but the USEPA is still reviewing it. This spring the utilities will be sending out rain
gauges for the water customers encouraging water conservation. A sample rain gauge along
with the informative imprint was displayed.
Glenn Sundeen reported the crews are still tree trimming. There were no major outages
in January, however, a few poles were hit. James Tralle asked if the electric department had
any plans of adding an apprentice lineman this year. Glenn Sundeen responded no, but the
work load is high and they might have to contract out some of the small jobs.
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Regular meeting of the Ell< River Municipal Utilities Commission
February 14, 2006
David Berg reported six new security system installs were completed in January along
with the pre-wiring of the Energy house. The maintenance is complete on Wells #2, #3 and
#5. Wells #4 & #6 are now down for repair. New transducers will be installed and Well #4
will have a new meter. The DNR has added a new fee to their program. Staff is replacing the
meter in Well #4 resulting in a more accurate reading of pumpage.
Theresa Slominski reminded the Commissioners that the auditors will be here the
beginning of March for the yearly audit. Theresa then updated the Commissioners on the
progress of the new BillFlash service and the feedback that has been received.
5.2 Review Water Assessment Costs (Verbal)
Bryan Adams distributed copies of a "Cities Bulletin" which was published February 8,
2006, regarding assessing the delinquent water, sewer, and garbage charges to the property
owner. Lori Johnson said the City receives three payments a year from the county on the
assessed funds, one in July, another in December and the final in January. There is no cost to
assess delinquent water accounts on property taxes. The City Council would need to approve
the assessment of unpaid water bills on property taxes. Bryan Adams will draft a letter for this
request. Lori Johnson informed the Commission they would need to make a resolution to do
this.
Motion by John Dietz to make a resolution to have the 2005 write-offs for water assessed to
property taxes. James Tralle seconded the motion. Motion carried 3-0.
5.3 Review & Consider 2006 Territory Acquisition
The 2006 electric budget includes a $290,000 item for service territory acquisition. Area
171ocated in the northeast side of Elk River currently has approximately 80 customers. The
cost is comprised of approximately $250,000 for the customer base and approximately
$40,000 for growth payment from previous acquisition. The service territory agreement
expires in February of 2011, although total acquisitions will be complete by 2008. John Dietz
questioned the possibility of postponing an area for a year or two. Bryan Adams responded it
would be more costly and not be fair to Connexus. Staff recommends authorization be given
to proceed with area 17 acquisition.
Motion by John Dietz to approve the acquisition of area 17 in 2006. Jerry Takle seconded the
motion. James Tralle abstained as he lives in area 17. Motion carried 2-0.
5.4 Update Data Centers
Staff reviewed the construction schedule and task schedule reflecting the status of the
substation and the data center feeder projects. On February 21, 2006, the transformer at the
West Substation will be moved to the Otsego Substation and the new transformer for the West
Substation will be shipped around March 15, 2006. Also reviewed was an initial request and
response to a proposed second data center. This second data center will have approximately
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Regular meeting of the Elk River Municipal Utilities Commission
February 14, 2006
50% more load than the Target Data Center. The cable installation to support the demand of
the new data center would start late summer 2006. The proposed Waco Substation with two
feeders will be required to support this facility. An additional $3,500,000 bond will also be
required. Discussion followed regarding the cable installation and where it was to be buried.
The cable installation itself will be contracted out and our crews will do the terminating.
6.1 Review & Consider Pick-up Truck Purchase
The 2006 budget contains a line item to replace one pick-up truck. Elk River Ford has
the Minnesota State bid for a'/4 ton standard 4 x 4 pick-up truck. Bids were reviewed with
staff recommending the bid be given to Elk River Ford. The existing 1997 pick-up that is
being replaced will be sold this fall through sealed bids. John Dietz asked Glenn Sundeen if
he would call Phil Hals from the Street Department and have the 1997 pick-up truck inspected
to see if it was feasible for the City to use it.
Motion by James Tralle to purchase a'/4 ton standard 4 x 4 pick-up truck with electric
windows from Elk River Ford. John Dietz seconded the motion. Motion carried 3-0.
Other Business
John Dietz said he received a call from a customer regarding the possibility of the City and
Utilities buying an infi-ared camera that would be available for customers to inspect their
homes to see if there are major heat loss problems. These cameras cost between $10,000 and
$12,000, or cameras can be rented for approximately $700 per week. Discussion followed as
to the benefit of having a camera and who would be doing the inspection service. Jerry Takle
said there are consultants that perform this type of service. Currently USG performs line loss
checks for the Utilities. This will be tabled and revisited at a later date.
John Dietz has received all the performance reviews for the General Manager and would like
to call a special meeting after the next Commission meeting pursuant to Minnesota Statutes
13D.05 Sub3.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, March 14, 2006.
President Jerry Takle adjourned the regular meeting of the Elk River Municipal Utilities
Commission at 5:00 p.m.
ectfully s fitted,
Judy McSpadden
Recording Clerk