5.2. SR 08-20-2001MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council
Pat Klaers, City A~t~tffator
August 20, 2001
SUBJECT: Utilities Commission Update
Item ~ 5.2.
Councilmember John Dietz is the City Council representative on the Elk River Municipal
Utilities Commission. At this August 20, 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 August 14, 2001, Utilities Commission meeting.
AUG-I?-ZO01 08:08AM
FROM"ERMU 763-441-ft0~1D T-4ES? P.OOl/O05 F-058
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
August 14, 2001
Members Present: George Zabee, President; Sames Tralle, Vice Chair; John Dictz, Trusm¢
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent; David Berg, Water
Superintendent; Patricia Hemza, Office Manager
Others Present: Rusty Fifield, Ehlers & Associates, Inc., Ten-y Mauer, Howard Green
I. Call meetir~g to order at 4:00 PM, August 14, 2001
9_. Consider Utilities Agenda
Bryan Adams will have one additional in±brmational item, to be discussed under Other Business.
James Tralle moved to approve the Utilities Agenda for August ]4, 2001, with one additional item
under Other Business. George Zabee seconded the motion. Motion carried 2-0.
3. Consider_C.o. osent A~enda
James Tralle moved to approve the Consent Agenda as follows:
July Check Register
Financ~als
July 10, 2001 Minutes
George Zabee seconded the motion. Motion carried 2-0.
,lohn Dietz, Trustee, arrived at 4:10 PM.
5.1 Review andConsider Bids for Water Tower
Bids for thc Eastern Water Tower were received on August 9, 2001. Staff advised that CB&I, Inc. was
the low bidder. The question of the size of the water storage size of the elevated tank, and the logo were
discussed. It was the general consensus that the larger size, 1.50 MG tank, at an additional cost of $134,000.00
over the base bid for a 1.25 MG tank would be the best decision, given the growth projections for Elk River.
James Tralle moved to accept Alternate Bid A from CB&I, Inc. for the construction ora 1.50 MG Water
Tower, without logo, at $1,441,000.00. Motion contingent upon the City Council approval of the land
purchase. John Dietz seconded the motion. Motion carried 3-0.
The schedule for the purchase of the land was reviewed.
AUG-I?-ZO01 06:OSAM FROk4-ERIdLI 1'63-441-80gg
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Regular meeting of the Elk River Municipal Utilities Commission
August 14, 2001
T-467 P.oo~/oos F-os6
5.2 Review_and Consider Bids for Water Treatment_Plant #7
Bids for Water Treatment Plant #7 were received on August 9,2001. Details of the low bid from
EnComm Midwest were discussed, along with prejected completion dates.
James Tralle moved to accept the bid from EnComm for the Water Treatment Plant #7, at
$1,234,567.00. John Dierz seconded the motion. Motion carded 3-0.
5.3 Review an.d Consider Bids for Electric Line Truck
Bids for an Aerial Bucket Truck were received on July 25, 2001. The tabulation was presemed to the
Commission, with recommendation from Staffto award the purchase to the lowest responsive bidder, Altec
Industries, with trade-in for the Freightliner at $95,555.00. Staff indicated that the ER.MU has had excellent
experience with the Freighfliner chassis. Questions of alternate chassis were reviewed.
James Tralle moved to accept the low bid I~m Altec Industries for the purchase of a new FL-70
Freightliner electric line truck, with the trade-in. John Dietz seconded the motion. Motion can'ied 3-0.
5.4 Reyiew and Consider Water Revenue Bonds
Bryan Adams reviewed a spreadsheet reflecting estimated costs for several large projects for the Water
Department. Recommendation by Staff is to authorize bonding for the Water Tower, Well #7, and Water
Treatment Plant #7.
Rusty Fifield, Ehlers & Associates, Inc. appeared to discuss the Bond Issue, and answer questions from
Staff and Commission. Mr. Fifield noted positively the financial planning forecasts done by Staff, and the
control that the Utility has over construction. Marketing of the Bond sale was reviewed in response to a
question from George Zabee.
James Tralle moved to approve the G.O. Water Revenue Bonds, Series 200lA for the Water Tower,
Well #7, mad Water Treatment Plant #7, in the amount of approximately $3,504,900.00 net proceeds. John
Dietz seconded the motion. Motion carried 3-0.
5.5 I,I~G Pro_ieet Update
Bryan Adams reviewed the slowing progress of the project, explaining that risk management is the
reason. Gas quality analysis is the present issue. Our goal is to promote this project, but not to lose money. It
is noted that local cooperation is excellent, bur much slower from the Corporate side. This item informational
only.
~UG-17-2001 O8:OSAM ;RO~ERMU ?6;-441-6Dgg T-46T P.003/005 F-OS6
Page 3
Regular meeting of the Elk River Municipal Utilities
August 14, 2001
5.6 Consider Home Comnuter Purchase Policy
A Home Computer P'nrehase Assistance Program for the employees of the ER.MU was approved at the
July I0, 2001 meeting. Staff was directed to return with a policy for the program implementation. The
program was discussed. John Dietz noted his disapproval of the program, stating that he believes most homes
already have a computer, and that employees are well paid enough to afford the computers without finance by
the Utilities..lames Tralle added that he believes the program is a very nice perk for employees. George Zabee
is somewhat in question of the necessity of the program. John Dietz added that several City Council members
questioned the policy.
James Tralle moved to approve the Home Cmnputer Purchase Assistance Policy. George Zabee
seconded the motion. Motion carded 2-1, John Dietz voting nae.
5.7 Administration Building Update
This item is a cominuing discussion of the possibility of a larger administration building for the ERMU.
The 1't National Insurance and Mortgage building at 716 Main Street has been reviewed, with preliminary
layouts and cost estimates. George Zabee has requested that the site where two houses now exist on Main
Street be looked into. John Dietz feels that the ER_MU should further explore the possibility of re-locating to
the City Hall, since ma expansion is in the planning stages. 3'ames Tralle questions time-lines for the vacancy of
the 1 '~ National Main Street property, and also time-frames for City Hall expansion. John Dietz indicates that
site should be completed in late 2003 or early 2004. Other possible areas were discussed, such as the Chamber
of Commerce site. It was decided to have Pat Klaers, City Administrator attend the September Commission
meeting xo discuss City Hall expansion. John Dietz has offered to approach one of the homeowners on Main
Street regarding the possible purchase of the home. No action taken.
6.1 Revie~v and_Co~tsider Water Main Pro_ieet
The 2001 budget contains a $50,000 item to connect 2 dead end water mains. Analysis has shown that
the water system at 191st Avenue NW, is a long dead end water main with Ridgewood Manor aparU'nent
complex at the end. Fire flow capabilities are marginal. Costs and drawings to correct the situation were
presented and discussed, along with the necessary easements. James Tralle asked if any of the costs could be
assessed, with the consensus that they would not be.
James Tralle moved to approve the expenditure to loop the dead end water main on 191'~' Avenue NW.
John Dietz seconded the motion. Motion carried 3-0.
Discussion of the water system continued, with John Dietz voicing the concerns of homeowners near
Upland Avenue north of Highway 10, as to water quality and color of water. Staff responded to questions.
AUG-I?-2001 08:0OAM FROM'-E~MU 763-441-60~D T-467 P.004/005 F-058
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Regular meeting of the Elk River Municipal Utilities
August 14, 2001
6.2 Review Sch,e.0ule for 2002 Budget
The scheduling rime lines for the 2002 Budget were reviewed, The Travel & Training Budget, and the
10 year personnel projections were presented mad discussed. Commission agreed the Travel & Training Budget
appears to be reasonable, as well as noting that they feel the ERMU has a very good program in place for
employees. John Dietz inquired about the success of the MMUA Safety Training. Staff responded positively,
that the program is now a success.
Bryan Adams noted certain complications to the 2002 Budget:
1) Policy changes and charges relating to radio read meter reading system.
2) Possible change in ownership of water service lines.
3) Administration and power plant storage building addition~'Public water access point for
contractors.
4) Possible Winter/Summer rates for Water Department.
5) Electric Rate Change due to CIP spending increase.
John Dietz would like the Water and Sewer Departments to have the same policy regarding ownership
of service lines. Staff is directed to explore this aspect. Bryan Adams is studying the fee structure for metering
because of radio reading systems.
6.3 Review Conservation and. Emergeltcy_Management Report
The Department of Natural Resources advised the ERMU that we must submit our revised Conservation
and Emergency Management Report in order to be considered for an increase in our water appropriation fi'om
4500 gpm, and 600,000,000 gallons/year to 6500 gpm, and 1,000,000,000 gallons/year. Staff reviewed with
Commission the changes in the report.
George Zabee moved to receive and file the Conservation and Emergency Management Report
submitted to the Department of Natural Resources. John Dietz seconded the motion. Motion carried 3-0.
Discussion continued, centering on winter/summer rates, and conservation possibilities.
6.4 Consider ~,fr Conditioner Rebate Policy
Connexus has made available an $8,400 air conditioning rebate to ER_MU under the same terms as ORE
has with Connexus. An ad has been published in the local paper offering the $200.00 per customer rebate, with
an application, and criteria.
John Dietz moved to make the Air Conditioner Rebate Policy available to EiKMU customers. James
Tralle seconded the motion. Motion carried 3-0.
AUG-I?-2001 Oll:OlaA~ FRO~ERMU ?is3-441-1tolala
Page 5
Regular meeting of th e Elk River Municipal Utilities Commission
August 14, 2001
T-467 P.005/005 F-OS6
6.5 Street Light Request
A formal Street Light Recommendation from the Street Lighting Committee was received, as follows:
1) County Road 13/Lincoln Street
2) County Road 13/Kennedy Street
3) County Road 13/County Road 40 (250 wart lamp)
4) County Road 13/County Road 31-Viking Boulevard (250 watt lamp)
5) County Road 13/201" Avenue
6) County Road 13/County Road 34-205® Avenue (250 watt lamp)
7) County Road 13 and Tyler Street - Upgrade from a 100 watt to a 250 watt lamp
It was noted that these street light recommendations are on newly acquired ERMU property.
James Tralle moved to approve the Street Light Recommendations from the Street Lighting Committee
as received. John Dietz seconded the motion. Motion carried 3-0.
Other Business
Bryan Adams updated the Commission on engine #3 at the power plant. The engine muffler 'failed
recently. Workers are assessing damages at this time. A new muffler will cost approximately $25,000.00. It is
anticipated that it will be repaired in time for the annual URGE tests.
l~he next regularly scheduled meeting of the Elk River Municipal Utilities Commission will be Wednesday,
September 12, 2001 at 4:00 PM in the Elk River Utilities Offices.
President Zabee adjottnaed the meeting of the Elk River Mtmicipal Utilities Commission at 6:00 PM.
Respectfully submitted,
Patricia Hemza
Office Manager