5.3. SR 11-18-1996ty of
ver
ITEM 5.3.
MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council
Patrick Klaers, City Admini$~or
November 18, 1996
SUBJECT: Utilities Commission Update
Councilmember Dietz is our city representative on the Elk River Municipal
Utilities Commission. At this November 18, 1996 City Council meeting, John
is scheduled to provide an update on October and November Utilities
activities. Attached for your review are the draft minutes from the November
12, 1996 Commission meeting. The next Commission meeting is scheduled
for Tuesday, December 10, 1996, at 4:00 p.m. at the Utilities office.
s:\councilXutilupdt, doc
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
1-612-441-2020 ELK RIVER UTILITIES 996 P02 NOV 15 'g6 10:56
REGULAR MEETIN~ OF THE ELK RIVER
MUNICIPAL UTILITIES COMMiSSiON
HELD AT THE ELK RIVER MUNICIPAL
NOVEMBER 12, 1996
Members Present: President James Tralte, Vice Chairman John
Die=z, Trustee George Zabee
Others Present: Bryan Adams, General Manager; Glenn Sundeen,
Line Superintendent; Robert McCartney, Water Superintendent,
Patricia Hemza, Office Manager; Pat Klaers, City Manager, Terry
Maurer, MSA Consulting Engineer
1. Call Meettnq 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 Agenda
Mr. Zabee moved to approve the 11-12-96 Agenda.
seconded the motion. Motion carried 3-0.
Mr. Dietz
3. *Consider Consent A~enda
Mr. Dietz moved to approve the Consent Agenda as follows:
3. 10-8-96 minutes -- approved
4. Check Register -- approved
Financials -- approved
OLD BUSINESS
5.1
Plaza Water Fountain
Mr. Dietz moved to add to the mo=ion made at =he 10-8-96
regular Commission Meeting,(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's 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
for all daily and seasonal maintenance for the fountain)
that if the conditions are not met at all times, the Elk
River Utilities Staff will be directed to disconnect the
water service and remove the wa=er meter. Mr. Zabee
seconded the motion. Motion carried 3-0.
Regular meeting of the Elk River Utilities Commission
November 12, 1996
Page 2
5.2 Water Main ~,~ts~allatton to new Ig~ Arena
Mr. Adams re-iterated the Commission's original offer to
waive water connection fees and to absorb the cost of
construction of an additional 175' of 6" water-main to
service the ice arena. Mr. Klaers discussed the City's
perception of payment of the water main. A philosophical
discussion followed regarding contributions by the water
and electric utilities.
Mr. Adams and Staff were directed to draft a policy
on contributions for the next Commission meeting on
12-10-1996.
Mr. Dietz moved to pay the entire amount of installation of
the water main installation for the new ice arena. Mr.
Zabee seconded the motion. Motion carried 3-0.
5.3 MSA reDort on Facilities Si~_L_ocation
Mr. Maurer and Mr. Adams reported on the benefits of
site #4 for a future well, treatment plant and water
tower, with Staff recommendations.
Mr. Dietz moved to have Mr. Adams negotiate land purchase
costs. Mr. Zabee seconded the motion. Motion carried 3-0.
5.4 Up-date Electric Rate St~.4¥ by R.W.Beck
Mr. Adams presented a preliminary study of our electric
rates, and explained the present structure, as well as
the realignment and redesign of the rate classes and rates.
Cost of services rates were discussed and reviewed.
The full report by R.W. Beck will be ready for the December,
1996 meeting. It is anticipated Commission will adopt the
suggested rates at the January, 1997 meeting, effective for
January, 1997 consumption..
5.5 MM~ - publlc Hearinqs on_El.~ctric Industr~ Restructur{nq
Mr. Adams reported on the Minnesota PUC Public Hearing on
Electric Utility Industry Restructuring. He urged the
Commissioners to attend the hearings. Due to restructuring,
legislation will be proposed to eliminate property taxes for
electric generating stations which will have a huge impact
on Sherburne County, due to NSP's Sherco complex, and Elk
River, due to UPA's facility.
Regular meeting of the Elk River Utilities Commission
1-612-441-2020 ELK RIVER UTILITIES 996 P04 NOV 15 '96 10:59
November 12, 1996
Page 3
5.6 1996
The Ten Year Capitol Projected forecast, the Ten Year
Personnel Projections and the 1997 Training and
Travel Budget were presented and discussed. Mr. Adams
explained the difficulties in finalizing the 1997
budget, due to the power cost negotiations and rate
studies.
6.1 Proposed Electric LAne ~erson App. renticesh~ Pro~r-m
The Minnesota Municipal Utilities Association has developed
a program to enhance the knowledge, skills and abilities
of electrical lineworkers. The program is for apprentice
lineworkers who desire to become journeymen lineworkers, as
well as for journeymen lineworkers who need brushing-up.
Elk River Utilities has a number of interested employees.
Mr. Zabee moved to adopt the Electric Line Person Career
Development Program and to require all new apprentices to
complete this program before achieving the top pay of their
class. Mr. Dietz seconded the motion. Motion carried 3-0.
(Copy attached)
6.2 PrOD.~sed Education Policy
Mr. Adams suggested that the Utilities adopt an
Education Assistance Policy, in an effort to encourage
employees to continue their education. The proposed policy
pays all costs, capped at $2,000.00, in contrast to the
City's policy, which reimburses 75% of the tuition fees.
Mr. Adams feels the capped policy will provide more detail,
minimizing potential miscommunication and address the type
of employees that will be using the program.
Mr. Dietz moved to adopt the Elk River Municipal Utilities
Assistance Policy. (Copy attached) Mr. Zabee seconded the
motion. Motion carried 3-0.
6.3 Service Territoz~_ A~q~isition
Discussion was held regarding the acquisition of the area
around the Sherburne County Court House, with up-front
costs of approximately $335,000.00. Mr. Adams advised
the Commission on the pros and cons of acquiring this
territory, as well as reviewing the 1990 agreement. This
topic will be brought up at a future meeting, after Mr.
Adams researches the possibility of either making the
courthouse an exception customer, or borrowing money from
the Water Fund.
1-612-441-2020 ELK RIUER UTILITIES 996 P05 NOU 15 '96 10:58
Regular meeting of the Elk River Utilities Commission
November 12, 1996
Page 4
Employee com~,~nsation philosophy
This topic was presented in order to verify Elk River
Municipal Utilities employee compensation procedure.
Mr. Adams questioned some of the procedures in setting
pay increases, as well as the Step Policy now in effect.
Mr. Adams was directed to research other pay alternatives
including the s~ep plan presented and continue the
Comparable Worth Study. Mr. Adams will make salary
recommendations at the December, 1997 meeting based on
current pay philosophy.
6.5 City of Elk River S~rate~i~._.P~a~ uD-aate
Mr. Adams and Mr. Zabee are members of the City of Elk
River Strategic Planning Task Force. They summarized
the purpose and progress of the Task Force.
6.6 1996 Audit Confirmation
Mr. Dietz moved to contract with A bdo, Abdo & Eick for
the Elk River Municipal Utility annual audit for 1996.
Mr. Zabee seconded the motion. Motion carried 3-0.
6.7 Power Cost, UP-date
Mr. Adams up-dated the Commission on the status of our
Federal Regulatory Commission Intervention. He then
reported on his meetings with UPA &AEC staff to
negotiate a more competitive wholesale electric power
and energy rate for the Utilties. The ten year rolling
contract was discussed, weighing the possibility of
a two-year opener. The EDIR rate was also discussed.
6.8 Customer complaint
No one appeared for this item.
O_ther _B~s ln_es.~
Education/Seminar reports were given by Mr. Adams, Mr.
Sundeen, Mr. McCartney and Mr. Lovelette on recent
attendances.
Mr. Dietz moved to adopt a policy ~o not accept checks
after receiving two NSF checks in one year, from one
customer; only cash or cashiers checks. Mr. Zabee
seconded the motion. Motion carried 3-0.
1-612-441-2020 ELK RIUER UTILITIES 996 P06 NOU 15 ~96 10:58
Regular meeting of the Elk River Utilities Commission
November 12, 1996
Page 5
The next scheduled meeting of the Elk River Utilities Commission
will be Tuesday, December 10, 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
6:25
Respectfully submitted,
Patricia Hemza
Office manager