3.0 ERMUSR MINUTES 01-10-2006 - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission December 13, 2005 James Tralle questioned the competitiveness of the new rates. Bryan Adams responded that the residential and commercial rates are similar to Connexus, Wright Hennepin, and Excel however the industrial rates still need to be reviewed in the future for they continue to be 7% to 10% higher. Motion by James Tralle to approve the rates for the 2006 usage as presented. John Dietz seconded the motion. Motion carried 3-0. 5.4 Review & Consider LFG Power Purchase A reement The GRE proposed Amended and Restated Power Purchase Agreement was reviewed. This agreement revises upwardly the price GRE will pay us to incorporate the 4"' engine/generator at the LFG plant. The increase is approximately $1,538,000 over the life of this agreement. Staff recommends authorization is given to execute this document. Motion by James Tralle to approve authorization to execute the GRE Amended and Restated Power Purchase Agreement. John Dietz seconded the motion. Motion carried 3-0. 5.5 Review & Consider Water Tower Antenna Polic At previous Elk River Municipal Utilities Commission meetings allowing antennas on our water towers were discussed. Staff was asked to draft a policy to allow antennas on our water towers. Discussion followed regarding the principals to be addressed in the agreement. Bryan Adams asked Lori Johnson what the City charges for this type of arrangement, she responded approximately $1500 plus revenue from additional antennas placed by third parties. John Dietz felt that each contract should be negotiated separately depending on their needs. John Dietz asked that City Council get a copy of the principals that need to be addressed in these agreements. Motion by John Dietz to approve the policy for antennas on water towers. James Tralle seconded the motion. Motion carried 3-0. 6.1 Review & Consider Budgeted Equipment Purchase The 2006 budget has two pieces of equipment staff desires to pursue. The first is a Valve and Vac Exerciser machine to do maintenance on water gate valves in the street. The budget allocated $42,000 for a new machine, National Waterworks has a demo unit for $39,856. The other piece of equipment to replace is a 17 year old brush chipper which due to its age is often broken down and requires excessive maintenance. Staff is currently securing trade in price and is asking authorization to spend up to $30,000 to replace this unit. John Dietz asked Glenn Sundeen what percentage of tree trimming we do. Glenn Sundeen responded that we do about 50% of the tree trimming ourselves January through March. John Dietz also asked if the City's chipper was utilized. Glenn Sundeen responded that when our chipper was broke down the City chipper was unavailable. Motion by James Tralle to approve the purchase of a Valve and Vac Exerciser and a brush chipper. John Dietz seconded the motion. Motion carried 3-0.