INFORMATION #2 12-04-2006 - Laserfiche WebLink

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Page 4 Regular meeting ofthe Elk River Municipal Utilities Commission November 14, 2006 Motion by James Tralle to award Ellingson Drainage, the lowest responsive bidder, the Twin Lakes Watermain project and delay the watermain project from Treatment Plant #7 to County Road 12. John Dietz seconded the motion. Motion carried 3-0. 6.3 Review & Consider Bid Tabulation for Electric Wire On November 6, 2006, electric wire bids were received for our anticipated 2007 electric projects. The 1000 KCMIL wire is for the United Health Group Data Center. This was bid out earlier this year because of the longer lead times. Staff reviewed the recommendations. Motion by James Tralle to award the 2007 cable bids recommended by staff as follows: Border States awarded 1000 KCMIL, #110 15kv Primary, #2/0 Triplex Converse, and #4/0 Penguin; Resco awarded 1-112" Carlon Flex; and Wesco awarded #4/0 15kv Primary and #336 KCMIL Merlin. John Dietz seconded the motion. Motion carried 3-0. 6.4 Review & Consider Secure Information Policy Several times a year we write-off bad debts and turn them over to a collection agency. A good way to find these past customers is through Social Security numbers or Drivers License numbers. In order to collect these numbers a Customer Privacy Policy is desirable. Staff recommends adopting the attached Customer Privacy Policy. James Tralle questioned the validity of the social security numbers and asked if we could get driver's license numbers also. Bryan Adams said a lot of companies are going back to a deposit, but we would like to avoid that if at all possible. Motion by John Dietz to adopt the attached Customer Privacy Policy. James Tralle seconded the motion. Motion carried 3-0. Other Business Bryan Adams introduced Greg Oxley ofMMUA. Changes will happen in the transmission line electrical area. Greg informed the Commission ofthe predicted substantial rate hikes that will be implemented in transmission rates for Utilities not owning transmission lines. Greg strongly advises the Elk River Municipal Utilities invest in the transmission system to lessen future rate increase hardships. By investing in the transmission system you are investing in the future. There are initial consulting fees to be paid of $50,000 along with a Certificate of Need that would be another $300,000 and then bond for $2 to $3 million initial investment. The rate of return is estimated to be 12% which would offset increase power cost and allow bond payback. James Tralle asked if the rate ofretum was guaranteed, Greg responded there were no guarantees. James Tralle then asked who would be in the group that the Utilities would be investing in, Bryan responded. Bryan Adams asked the Commissioners if they could meet next week to go over the financial projections and talk with a few people who could answer particular questions regarding this venture.