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Page 3 <br />Regular meeting of the Elk River Municipal Utilities Commission <br />May 10, 2005 <br />5.5 Review Hiehwav 101 and CSAH 39 & 42 Intersection Construction <br />The upcoming highway intersection construction in Otsego and another development <br />south of Hwy 101 and County Road 39 were discussed. Staff presented the Commission <br />with a map of the proposed relocation of the electrical lines for the Highway 101 project. <br />Constructing another electrical distribution feeder to Otsego or utilizing Wright- <br />Hennepin's Otsego substation was discussed to serve the the long term growth in Otsego. <br />No action taken. <br />6.1 Review Annual URGE Test <br />Elk River Municipal Utilities operates and maintains four diesel generation units at our <br />power plant. These units are contracted to Great River Energy through a Power <br />Transaction Agreement based on the proven capacity from the annual URGE test. Staff <br />did a great job performing this URGE test. The capacity results from this test will result <br />in over $345,000 in annual payments from Great River Energy. <br />6.2 Review MDH Public Water Supply Inventory Report <br />The 2003 survey of the community water supply system was recently received. This <br />survey reflects no deficiencies. Bryan Adams added that Elk River Municipal Utilities <br />water system is efficient and well maintained. <br />The 2004 water confidence report that is mailed out to the water customers is completed <br />and in compliance with all state and federal regulations. <br />6.3 Review APPA Rate Comparisons <br />APPA's electric rate comparison for 2003 was reviewed. In comparison, Elk River <br />Municipal Utilities is on the high side. How Utilities report the fuel cost adjustment or <br />power cost adjustments will also influence this survey. This fall during the budgeting <br />process, staff will do a more thorough electric rate comparison of the surrounding <br />utilities. <br />6.4 Review and Consider Bids for Install UG Electrical Conductor <br />Bids for rebuilding the electrical system in acquisition area 15 were presented. Staff is <br />recommending MP NexLevel, LLC the lowest responsive bidder be awarded the project. <br />Motion by John Dietz to award MP NexLevel, LLC the lowest responsive bidder the <br />Area 15 rebuild project. James Tralle seconded the motion. Motion carried 3-0. <br />