08-14-2007 ERMU MIN - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission August 14, 2007 hiking trail (old railroad bed). Bids were received August 6, 2007, staff recommends awarding to Midwest Diversified Utilities, the lowest responsive bidder. James Tralle moved to award Midwest Diversified Utilities, the Area 21 electric distribution rebuild. Jerry Gumphrey seconded the motion. Motion carried 3-0. 6.2 Review 2008 Budget Schedule Staff has started the process of assembling the year 2008 budget. The proposed schedule for the budgeting process was reviewed. Discussion followed regarding the travel and training budget, personnel projections, and CIP spending requirements for the future. Travel and training budget reflects a $5200 increase from 2007. No additional personnel is requested for 2008. Legislative changes enacted in 2007 will drastically affect the CIP programs starting in 2010. Jerry Gumphrey suggested getting a group together to come up with some new ideas for rebates. Jerry Takle's suggestion was a rebate for customers if their electric usage is lower than previous year. James Tralle questioned if fees for on-line classes on conservation would be considered for rebates, and the possibility of supplying water heater blankets to customers. 6.3 Review DNR Water Appropriations The DNR regulates the annual amount and rate of which we can utilize ground water for our municipal water system. In April of this year we requested an increase in ground water appropriations from 875 million gallons to 1400 million gallons per year. In 2006 we submitted a revised Water Conservation and Emergency Management plan in anticipation of future water appropriation requests. In July of 2007 the DNR responded to our request with approval of the Conservation and Emergency Management Plan, and amended our Water Appropriation Permit for a 10 year period to 1650 million gallons per year. They are pre -approving the addition of five 1000 gpm wells. The stipulations on the water appropriation are to continue with the Emergency and Conservation Plan, and have an observation well. We will be utilizing the Twin Lakes Elementary irrigation well for this. Staff remains hopeful of the positive outcome with ISD 9728 use of irrigation wells. 6.4 Review Bid Tabulation for Well #9 Site Work The 2007 water budget contained a $400,000 item to construct Well 99. Due to changes because of water quality issues, the cost has escalated to the $650,000 range. All of the necessary approvals have been secured for the Twin Lakes location. Location, construction schedule, and costs were discussed at previous meetings. Bids for the earthwork portion of this project were received on August 9, 2007. A bid tabulation was reviewed with staff recommending award of this project to the lowest responsive bidder, Kober Excavating, Inc.