5.1. ERMUSR 03-10-2009 - Laserfiche WebLink

Home Browse Search

Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330.0430 March 6, 2009 To: Elk River Municipal Utilities Commission John Dietz Jerry Gumphrey Daryl Thompson From: Vance Zehringer Subject: Miscellaneous Phone: 763.441.2020 Fax: 763.441.8099 Sales of electricity for February 2009 are up 12% over a like period last year. Sales of water for February 2009 are down 8.5% over a like period last year, but sales year-to-date are up 2.9%. Discussions with potential power suppliers has not progressed appreciably over the last two weeks pending further input from our present power supplier, Connexus Energy. The Confidentiality Agreement has been changed to eliminate reference to the City of Elk River and has been signed and forwarded to Connexus Energy. A meeting has been scheduled on March 9, and if anything of any substance results, that information will be presented in the closed meeting. We did generate a non-binding Letter Of Interest with Central Minnesota Municipal Utilities Agency (CMMPA) to keep us in the loop for a share of the Big Stone II Project in case we decide that is in our best interest. A copy of that non-binding Letter Of Interest is attached. CMMPA continues to be interested in partnering with us in becoming our full requirements power supplier once our contract with Connexus Energy expires. Contacts with Minnesota Municipal Power Agency (MMPA) have failed to produce anything meaningful — they are not interested in adding additional members at this time. As mentioned at the Feb Commission Meeting, Wright Hennepin Cooperative Electric Association (WHCEA) has decided not to make us an offer because Basin Power Cooperative has made a decision not to sell power to any municipals. They have been removed from the list of potential power suppliers. Finding a suitable wholesale power supplier may be more difficult than originally perceived! Staff was directed to secure bids for inspecting the integrity of the Jackson Street Water Tower. To date, KLM Engineering and SEH Engineering have expressed interest is performing same for us. The KLM bid has been received, but we are awaiting a bid from SEH. Both bids will be presented for your consideration at the April commission meeting. Some pertinent information was included in the cover letter accompanying the KLM bid. That cover letter is attached. The Contract for a communication antenna on the Gary Street water tower is in the final stages, and we hope to be able to provide the finished product for action at the March 10 Utilities Commission Meeting. An Annual Report to the Elk River City Council was presented at their March 2 meeting. A copy of same is attached for your perusal.