01-10-2017 ERMU MIN - Laserfiche WebLink

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although the third unit was two points short of the replacement level, staff was recommending that unit be replaced as well due to extensive repair issues that would need to be addressed. John Dietz inquired as to what we do with the old vehicles that are retired. Staff shared that those vehicles go to auction; in 2016 the sale of vehicles generated $29,450. There was discussion. For 2017, Midway Ford was the vendor awarded the State Bid for Ford. Eric Volk presented quotes from Midway Ford and Cornerstone Automotive. The quote from Cornerstone Automotive came in at approximately $400 more per vehicle than Midway Ford. Based on the small difference in price, staff recommended keeping the purchase of the vehicles local with Cornerstone Automotive. Al Nadeau made a motion to approve the purchase of the three F250 pickup trucks from Cornerstone Automotive. John Dietz seconded the motion. Motion carried 2-0. 5.3 Highway 10 Water Main Project The Minnesota Department of Transportation (MNDOT)has planned to rebuild Highway 10 from Waco Street to Proctor beginning in 2017. As they will be widening the highway and replacing the bridge over the Elk River, it has been determined that ERMU will need to relocate 900 feet of water main and reline 1,050 feet of water main in the project area. Eric Volk shared that we will be incurring some costs in 2017 that were unbudgeted.As the 2017 budget has $80,000 set aside for facility maintenance, we will be utilizing some of that money in 2017 to relocate the 900 feet of water main. As the relining project will occur in 2018, staff will have the opportunity to budget for that next year.John Dietz asked if this project would qualify for the use of city trunk funds. Staff responded that it would not. There was discussion. Mark Fuchs shared that there is also electric wire that will need to be moved for the project. Mark explained what needed to take place in 2017 and stated that the unbudgeted cost would come from displacing a project. Eric informed the Commission that we would be saving a large amount of money as we're doing a majority of the work ourselves. 6.0 OTHER BUSINESS 6.1 Staff Updates As previously communicated,ERMU and Connexus Energy representatives have identified an area of dispute regarding Loss of Revenue(LOR)calculations outlined in the Electric Service Territory Agreement. The dispute is in regards to the definition of"Municipal Development." On January 4,2017,Connexus and ERMU leadership met per the agreement's alternative dispute resolution procedure. Troy Adams provided an update on the discussions that took place and shared that both parties were able to come to a mutually agreed upon verbal agreement.Troy also provided an overview on the financial impact of the proposed changes Page 4 Regular meeting of the Elk River Municipal Utilities Commission January 10,2017