Loading...
4.2. SR 06-18-2001RAver MEMORANDUM Item 4.2. TO: FROM: DATE: Mayor and City Council Pat Klaers, City Admin s~or June 18, 2001 SUBJECT: Utilities Commission Update Councilmember John Dietz is the City Council representative on the Elk River Municipal Utilities Commission. At this June 18, 2001, City Council meeting, John is scheduled to provide the Council with an update on Utilities activities. Attached for your review are the minutes from the June 12, 2001, Utilities Commission meeting. JUN-14-ZO01 DB:24A~ FROM-ERMU 763-441-80~ T-089 P.OD2/O05 F-lgZ ELK RIVER MUNICIP~ UTILITIES REGULAR MEETING OF TIt-E UTILITIES COMMISSION June 12, 2001 Members Present: George Zabee, President; John Dietz, Trustee Staff Present: Bryan Adams, General Manager; David Berg, Water Superintendent; Patricia Hemza, Office Manager Others Present: Pat Klaers, City Administrator, Daryl Thompson 1. Call meeting to order at 4:00 PM June 12, 2001 2. Consider Utilities A~enda John Dietz moved to approve the Utilities Agenda for June 12, 2001 as presented. George Zabee seconded the motion. Motion carried 2-0. 3. Consider ConsentA~enda John Dietz moved to approve the Consent Agenda as follows: May Check Register Financials May 8, 2001 Minutes George Zabee questioned three items on thc Check Register, and John Dietz questioned two items on the Check Register, and several questions on the Financials. George Zabee seconded the motion. Motion carried 2-0. 5.1 Review and Con~ider Water Tower Land Pprqhase Agreement A revised Vacant Land Purchase Agreement, a Boundary Survey, the proposed Water Tower Site Plan, with possible future well, and a preliminary plat of Kliever Lake Hills were presented and reviewed. George Zabee reviewed his reasons for disapproval of the purchase of land for a water tower. Bryan Adams advises the necessity of keeping the tight schedule of events to reach bidding and construction schedules. John Dietz views the schedule as reasonable. Daryl Thompson, and Pat Klaers offered in-sight into their thoughts of the events, and the schedule that must take place. Pat Klaers suggested that the wording in 21 e of the Vacant Land Purchase Agreement be chauged to read Water trunk Line assessment. John Dietz moved to authorize Bryan Adams to proceed with securing bids for construction of the water tower with award in August, 2001. George Zabee seconded the motion. Morion carried 2-0. John Dietz moved to approve and accept the Vacant Land Purchase Agreement, with the addition of the word Water in 21 e, and pending City Council Preliminary & Final Plat Approval. George Zabee seconded the motion. Motion carried 2-0. JUN-]4-ZOD1 08:24AM FROM-ERMU 763-441-8099 T-OH P.DO3/D05 F-ig2 Page 2 Regular meeting of the Elk River Municipal Utilities Commission June 12, 2001 5.2 Review and Consider Ridges of Rice Lake Electrical Bid Tabulation Bids for Ridges of Rice Lake cluster development were received on May 22, 2001. A bid tabulation reflecting the results of the bid were presemed. Commission, at the May 8, ERMU meeting, authorized Staff' to award a contract to the lowest responsive bidder, with the approval of the ER_MU auditors. The lowest responsive bidder was M&P Utilities. Staff'reviewed the bid tabulation with the Commission. 3ohn Dietz moved to formally approve the award of thc contract to M&P Utilities. George Zabee seconded the motion. Motion carried 2-0. 5,3 ,Undate Meter Reading Costs Radio read meter reading, contract, and in-house meter reading were reviewed. It was agreed that in the event that our present Contract Meter Reading service does not renew the contract, that at that time the ERMU would return meter reading to in-house. Staffwas directed to return to a future meeting, information, and statistics for ER. Ts (Encoder/Receiver/Transrnitter). 5.4 Review Response Time and Computer Use Certain operational people arc now required to live within an 8 mile radius of the power plant for response time. A survey on response time, by other Utilities, and the local Fire Department were reviewed. Miles versus time, and staff recommendations were discussed. John Dietz moved to change thc wording of thc required 8 mile radius to 10 mile radius for certain operational employees. George Zabee seconded the motion. Motion carried 2-0. The subject of possible $1,200.00 interest free loans to employees for computer purchase was discussed. Commission and staff weighed the benefits of the program, with different viewpoints expressed. It was the consensus of the Commission to table the topic to the July Commission meeting. 5.5 Review Safet~ Pro_~ram Evaluation A reviewal of the Elk River Municipal Utilities Safety Program by thc MMUA Regional Safety Coordinator was presented and discussed. George Zabee commended the ERMU employees for the successful report. Discussion continued, with comments from Staff, Commission. 5.6 Review F~nancial Pro_iections Many large projects expected in the next three years, such as wells, water rowers, substations, adminislxation building, and a plant garage may require debt financing. These projects, along with financing requirements were discussed. Updated financial cash flow projections were commented upon by Staff and Commission. The subject of rate increases, timing, economy, and cash were discussed. It was noted by George Zabee that he would prefer to see gradual increases of a modest nature rather than an abrupt large increase. John Dietz agreed with that thought. JUN-14-ZO01 08:24AM FROM-£RMU 763-441-60~ T-06~ P.004/005 F-lg2 Page 3 Regular meeting of the Elk River Municipal Utilities Commission .rune 12, 2001 5.7 Upda.t,e Omnibus Ener_ev_Bill The Omnibus Energy Bill was approved by the full House and Senate on Monday, May 21, 2001. Changes in the Conservation Improvement Program, Renewable Portfolio Standards, and Customer Protection Standards were reviewed. Bryan Adams explained the impact on EKlVlU, and possible solutions. It is not clear at this time how t~RMU will proceed; further clarification will follow. 6.1 Consider Equipment Purchases The 2001 capital budget contains the purchase of a new cable plow. The cost of the cable plow will be under $50,000.00, requiring comparable bids rather than a formal bid process. A discussion of other equipment, their age and condition followed. Staffis recommending replacement of a 1991 GMC aerial bucket truck, because of age and condition. John Dietz movcd to authorize Staffto trade-in, and replace the 455 Vermeer cable plow with a new cable plow, write specifications, and secure a formal bid to trade-in and replace the 1991 GMC aerial bucket truck. George Zabee seconded the motion. Motion carried 2-0. 6.2 Review Buildin~ Annraisal A building appraisal of the Main Street Mall, currently occupied by First'National Insurance, and First National Mortgage was presented. Discussion of the square footage, and the present ncccts of the office portion of the ERMU followed. John Dietz moved to have the City Building Inspector inspect the building, and to secure an architect re prepare possible layouts, and cost estimates to ensure the building could be used by ERMU at a reasonable cost. George Zabee seconded the motion. Motion carried 2-0. 6.3 Review anO Consider Water Point of Service LocatioI~ The ERMU Water Rules, Section 103, Water Service Repairs, states that maintenance or repair from the main stop cock to the premises is the responsibility of the homcova~¢r. Discussion of alternatives included changing the customers responsibility from the main to the curbbox, or meter, or possibly implementing an "Insurance Policy"to case the cost of repairs while leav/ng the current policy in place. George Zabee prefers the curb box site as first choice..rolm Dictz would like the ERMU to usc the same policy standard for water, as the City does for sewer. Pat Klaers advised that City Staff is presently looking at the Sewer Point of Service Location. It was the consensus of thc Commission to address the question of point of service at a future meeting. JUN-14-2001 08:25AM FROM-ERMU 76;-441-80~g T-OBg P.005/005 F-IgZ Page 4 Regular meeting of the Elk Kiver Municipal Utilities Commission .June 12, 2001 No Other Business to bc discussed. Thc next rcgularly scheduled mccting of thc Elk River Municipal Utilities Commission will bc Tuesday, July 10, 2001 at 4:00 PM in the Elk River Utilities Offices. Adiournment President Zabee adjourned the mccting of thc Elk River Municipal Utilities Commission at 5:45 PM. Respectfully submitted, Patricia Hcmza Office Manager