08-20-2002 ERMU MIN - Laserfiche WebLink

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Page 2 Regular meeting of the Elk River Municipal Utilities Commission July 9, 2002 George Zabee moved to accept the low bid from S.R. Weidema for the 175th Avenue Water Main. John Dietz seconded the motion. Motion carried 3-0. 5.3 Review CIP Programs to date Bryan Adams updated the Commission on the progress of the Conservation Improvement Program. It is noted that the presented CIP form will be included in the financing portion of our agenda. Commission indicated that the addition would be informative, and they do not wish to change reports included in the agenda packets. Discussion of the CIP spending was reviewed. 5.4 Review Progress of Large Projects Bryan Adams presented a spread sheet reflecting initial projected cost projections, with actual costs to date for the following projects; Water Tower, Well &Water Treatment Plant#7, Administrative Building of City Hall, Plant Garage,North Substation, LFG Electric Generation, Meadowvale Water Project, 175th Ave. Water Main. It appears that project projections appear to be on line, except for the plant garage and the LFG project. These two projects exceeded the initial cost projections at the time the project contracts were awarded. Commission and Staff reviewed the information. 5.5 Review Projected Costs for Administration Building Commission and Staff reviewed costs for City Hall/Utility/Public Safety facility. The Ehlers Bond Sale Report for series 2002B utilized by the Economic Development Authority to fund our utility building was reviewed favorably. John Dietz added that for the information of the Commission,the City of Elk River has received an A2 Bond Rating, which is a notable accomplishment, in this time of rapid growth. 5.6 Review Water Rate Survey Bryan Adams noted that the recent water rate survey indicates no apparent patterns in rate design or WAC fees. It is apparent that ERMU has room for increasing rates, but the question is how the establishment of rates should be accomplished. It is the consensus of Staff and Commission that rates to encourage water conservation should be the focus. Staff will return to a future meeting with options.