4.2. SR 10-21-1996'"ity of
iver
ITEM 4.2.
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Pat Klaers, City Administr~f
October 21, 1996
Utilities Commission Update
Councilmember John Dietz is our city representative on the Elk River
Municipal Utilities Commission. At this October 21, 1996, Council meeting,
John is scheduled to provide the Council with an update on the September
and October activities. Attached for your review are the minutes from the
September 11 and October 8, 1996, meetings. The next Commission meeting
is scheduled for Tuesday, November 12, 1996, at 4 p.m. at the Utilities office.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
REGULAR MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL
UTILITIES OFFICE
OCTOBER 8, 1996
Members Present: President James Tralle, Vice Chairman John
Dietz, Trustee George Zabee
Others Present: Bryan Adams, General Manager; Glenn Sundeen,
Line Superintendent; Robert McCartney, Water Superintendent;
Patricia Hemza, Office Manager; Phil Hals, City Street
Superintendent; Murn Beck
!. Call meetinq to order
Pursuant to due call and notice thereof, the meeting of the
Elk River Utilities Commission was called to order at
4:00 P.M. by President Tralle.
2. Consider Utilities Aqenda
Mr. Zabee moved to approve the 10-8-96 Agenda.
seconded the motion. Motion carried 3-0.
Mr. Dietz
3. Consider Consent Aqenda
Mr. Dietz moved to approve the Consent Agenda as follows:
o
9-11-96 Minutes -- approved
Check Register -- approved
Financials -- approved
5.1 UD-date on Electric Rate Study
Mr. Adams discussed the progress of the Electric Rate
Study by R.W.Beck. He also advised the Commission of
recent work meetings with David Berg and Teresa Kervin.
5.2 Results of MuniciDal Office Bldq. roof bids
The Commission was advised that the lowest bidder for the
re-roofing of the Municipal Utilities office building was
McDowall, at $25,263. The City will bill us for our
portion of the work. Work began on October 2, 1996 and
should be completed October 11, 1996.
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 2
5.3 ProDosed Water Fountain in Town Square
Murn Beck appeared to discuss the proposed installation of
a handicapped accessible public drinking fountain, with a
faucet, to be installed in the Town Square. Phil Hals
appeared to voice his concerns regarding maintenance of the
fountain and the possibility of vandalism. ERMU Staff also
expressed these concerns. Mrs. Beck feels the fountain
would not only be aesthetically pleasing, but a service to
people using the Square. Mrs. Beck assured the Commission
that maintenance would be provided by the River's Edge
Downtown Development Corporation, and that they would
insure the fountain. It was the concensus of the Commission
that it would be a pleasing addition to the Square, but
they remain concerned about vandalism, maintenance and
cleanliness.
Mr. Tralle moved to allow the installation of the fountain
in the Town Square, and to supply a meter and water usage
for it, with the following provisions:
The River~ Edge Downtown Development will supply
the copper line, back-flow preventer, a keyed box
for the meter, a removable handle on the faucet, and
to provide all daily and seasonal maintenance for
the fountain.
Mr. Zabee seconded the motion. Motion carried 3-0.
5.4 Water Main installation around Ice Arena
The City has requested the Utilities to pay for the entire
cost of the water main installation. The Commission
looked back at their original motion in the minutes of
3-21-95, where they moved to pay for the 175' of water
main to loop the system from the south end of the
building to the cul-de-sac.
Mr. Dietz moved to table further discussion until the
11-12-96 meeting, when the City Manager would be able
to attend. Mr. Zabee seconded the motion. Motion
carried 3-0.
5.5
Consider MSA DroDosal for Watermain Extension and
Wellhead Protection Droqram
The proposal for work scope and estimated costs to assist
the Elk River Utilities to complete Elk River's Wellhead
Protection Plan was reviewed, with identification of tasks
to be completed by MSA and Bruce A. Leisch Associates.
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 3
Mr. Zabee moved to accept the proposal by MSA for the
Wellhead Protection Plan. Mr. Dietz seconded the motion.
Motion carried 3-0.
The proposal for scope of services and budget for the
trunk watermain on Highland Ave. necessary to connect the
two high pressure water zones was reviewed.
Mr. Dietz moved to accept the proposal by MSA for the scope
of services and preliminary design for the trunk watermain.
Mr. Zabee seconded the motion. Motion carried 3-0.
5.6 Update on FERC filing
Mr. Adams advised the Commission that a Protest and Motion
for Levy to Intervene out of Time was filed on 9-11-96,
with respect to Anoka's 7-12-96 filing. The Commission
received the follow-up Protest Motion to Intervene and
Request for Hearinq on Behalf of Elk River Municipal
Utilities.
Further discussion ensued regarding the dilemma of our
wholesale power rates. Economic development rates and
load management were discussed. Mr. Adams reported on his
meetings with UPA and AEC.
It is the concensus of the Commission to keep our good
relations with UPA, but to actively deal with the rate
issues. Mr. Adams was directed to approach AEC with the
needs that must be addressed, as well as the problem of
supplier versus competitor.
6.1 URGE test and repair of %3 Diesel Unit
Mr. Adams up-dated the Commission on the O~GE (Uniform
Rating of Generating Equipment) tests that were run on a 60
minute time this year, as opposed to 5 minutes in
previous years.
Mr. Adams discussed the possibility of UPA financially
helping the Utilities repair the 300 KW #3 Diesel Unit.
The pros and cons of the repairs were discussed, with
considerations of pay-back times and possibilites of
other ways to finance the repairs.
Mr. Zabee moved to have the #3 Diesel Unit repaired in
late 1997. Mr. Dietz seconded the motion. Motion
carried 3-0.
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 4
6.2 Electrical System Capacity
The statistics for Projected Load Growth and need for
Substation 14 modifications were presented and closely
scrutinized, as well as a suggested time-table.
Mr. Zabee moved to authorize Mr. Adams to proceed
with this project, and give Mr. Adams latitude on
choice of engineering firms, to design this project.
Mr. Dietz seconded the motion. Motion carried 3-0.
6.3 Consider proposals for Water rate Study
Proposals from MSA and R.W. Beck for a Water Rate
Study were compared and reviewed.
Mr. Dietz moved to award the proposal to Maier Stewart,
for a not-to-exceed cost of $4,600.00. Mr. Zabee
seconded the motion. Motion carried 3-0.
6.4 Update on 1997 Budqet
Mr. Adams explained that the 1997 Budget will weigh
heavily on the electric rate study report that we will
receive from R.W.Beck. Staff has put together a ten year
capital projected forecast, as a preliminary document. It
reflects the direction of the growth of the City, and gives
a good idea of future needs.
Other Business
The computer network file server has now used 100% of its
life expectancy. It is recommended that we must up-grade
this system before serious problems occur.
Mr. Zabee moved to proceed with the purchase and
replacement of computer equipment from Laser Computer
and Associates. Mr. Dietz seconded the motion. Motion
carried 3-0.
The next scheduled meeting of the Elk River Utilities Commission
will be Tuesday, November 12, 1996 at 4:00 P.M.
Regular meeting of the Elk River Utilities Commission
October 8, 1996
Page 5
Mr. Dietz moved to adjourn.. Mr. Zabee seconded the motion.
Motion carried 3-0.
The meeting of the Elk River Utilities Commission adjourned at
6:10 P.M.
Respectfully submitted,
Patricia Hemza
Office Manager
REGULAR MEETING OF THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL
UTILITIES OFFICE
SEPTEMBER 11,1996
Members Present: President James Tralle, Vice Chairman John
Dietz, Trustee George Zabee
Others Present: Terry Maurer, MSA Consulting Engineer; Bryan
Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCartney, Water Superintendent; Patricia Hemza, Office
Manager
1. Call Meetinq to Order
Pursuant to due call and notice thereof, the meeting of the
Elk RiVer Utilities Commission was called to order at
3:00 P.M. by President Tralle.
2. Consider Utilities Aqenda
Mr. Dietz moved to approve the 9-11-96 Agenda.
seconded the motion. Motion carried 3-0.
Mr. Zabee
3. Consider Consent Aqenda
Mr. Dietz moved to approve the Consent Agenda as follows:
3. 8-13-96 Minutes -- approved
4. Check Register -- approved
5.1. MSA Presentation on Water System Expansion
Terry Maurer summarized the engineering study to identify
potential sites and estimated costs for a well, filter
plant, and water tower to serve the northwest area of the
water system, and evaluated a trunk watermain extension
from the northeast area of the water system to the north-
west area of the water system. Trunk watermain extension
will delay the need for future water tower #6.
Mr. Zabee moved to direct MSA to prepare a proposal to
complete the Wellhead Protection Plan. Mr. Dietz seconded
the motion. Motion carried 3-0.
Mr. Dietz moved to direct MSA to complete the preliminary
design for the trunk watermain extention. Mr. Zabee
seconded the motion. Motion carried 3-0.
Regular meeting of the Elk River Utilities Commission
September 11, 1996
Page 2
Mr. Zabee moved to direct MSA to analyze the Water Tower
sites, and to consider an additional site outside the urban
territory. Mr. Dietz seconded the motion. Motion
carried 3-0.
5.2 UD-date, R.W. Beck electric rate study
Mr. Adams discussed the progress of the rate study with
the Commission, indicating the biggest challenge will be
determining future capital costs.
5.3 Up-date Elk River Utilities Office Buildinq
Mr. Adams advised the Commission that bids will be Opened
September 16, 1996 for the re-roofing project. The
present roof has been temporarily patched by Skyline
Roofing, who installed the rubber membrane in 1993.
5.4 Resolution for Public Power Week (Oct. 2-13,1996)
The Commission was up-dated on plans for the recognition of
Public Power Week. The Mayor will be proclaiming the week,
we will have newspaper coverage, and the Current will
devote part of its October publication to the Utilities.
5.5 Street Liqht Construction standards
Mr. Adams recommended offering three choices to customers,
as follows:
Standard 35' wood pole with 6' galvanized steel mast
and a 100 or 250 watt HPS cobra head lamp. Used in
existing areas with overhead line construction and
existing areas with underground construction with no
street lights. Installation Cost @ $700.00 each.
30' direct buried fiberglass pole with 6' aluminum mast
and a 250 watt HPS cobra head lamp. Used in new
developments with underground electrical system at
intersections of major roads. Installation cost
@ $1,200.00 each.
Ce
23' direct buried fiberglass pole with 6' aluminum mast
and a 150 watt HPS traditionaire lamp. Used in new
developments with underground electrical systems of
minor street intersections and mid-block lighting if
desired. Installation cost @ $900.00 each.
Regular meeting of the Elk River Utilities Commission
September 11, 1996
Page 3
Discussion of future considerations for mid-block lighting
took place. No action taken at this time.
Mr. Zabee moved to accept the three recommendations as
presented for street light standards. Mr. Dietz seconded
the motion. Motion carried 3-0.
5.6 Elk River Utilities Office Buildinq signs
Mr. Adams presented quotes from six companies for signs for
the Utility office building.
Mr. Zabee moved to approve the quote from Signs Unlimited
for a 2' X 5' sign for the west side of the building and a
3' X 7'6" sign for the north side of the building. Mr.
Dietz seconded the motion. Motion carried 3-0.
5.7 Hydrant and water valve reDlacement
Quotes for installing 4 valves and 1 hydrant were
considered.
Mr. Zabee moved to approve the quote of $12,894.00,
for the installation of 4 water main valves and to
replace a hydrant at the Utilities office building.
Mr. Dietz seconded the motion. Motion carried 3-0.
6.1 12.46 KV Electric Line Extension, Twin Lakes Rd.
Recommendations to replace budget item 96-30 with a line
extension to service a new church being built this fall
requiring 3 phase, and to be utilized in the acquisition
of additional territory from AEC were presented.
Mr. Zabee moved to replace budget item 96-30 with a line
extension on Twin Lakes Rd. Mr. Dietz seconded the motion.
Motion carried 3-0.
6.2 Elk River Municipal Utilities Priorities
Mr. Adams presented a priority list, with the top 6
priorities, and asked for review by the Commissioners.
It was recommended that conservation programs, both
electric and water, be added to' the list.
Mr. Zabee moved to receive and file the priorities. Mr.
Dietz seconded the motion. Motion carried 3-0. A list
of the priorities to be filed with the minutes of this
meeting.
Regular meeting of the Elk River Utilities Commission
September 11, 1996
Page 4
6.3 Proposed Elk River Municipal Utilities Safety Proqram
Mr. Adams explained the AWAIR act and presented the
documents and manuals that will keep the Utilities in
compliance. He also reviewed the program that the
Utilities has contracted with MMUA, to insure that we
stay in compliance.
Mr. Zabee moved to adopt the safety program as presented
on a preliminary basis, until a permanent program is
presented. Mr. Dietz seconded the motion. Motion
carried 3-0.
6.4 Anoka Electric Cooperative FERC filinq
Mr. Adams discussed the submittals by AEC to the Federal
Energy Regulatory Commission regarding the rate schedules
between AEC and the Elk River Municipal Utilities. An
intervention will be filed on behalf of the Utilities to
give more time to determine why this filing is necessary
and what the impact will be.
Other Business
Power to the gazebo being constructed in the downtown
plaza has been requested by the downtown committee to
be donated. Mr. Zabee moved to ask the Committee to do the
wiring, which is secondary, and the Utilities to donate
the usage. Mr. Dietz seconded the motion. Motion
carried 3-0.
The next scheduled regular meeting of the Elk River
Utilities Commission will be October 8, 1996 at 4:00 P.M.
Mr. Dietz moved to adjourn.
Motion carried 3-0.
Mr. Zabee seconded the motion.
The meeting of the Elk River Utilities Commission adjourned at
5:10 P.M.
Respectfully submitted,
Patricia Hemza
Office Manager