3.0 ERMUSR 03-20-2007 - Laserfiche WebLink

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Page 5 Regular meeting of the Elk River Municipal Utilities Commission February 20, 2007 recommends authorization be given to sell three 1997 pick-ups and purchase three Ford F150 4x4's and one Jeep Compass 4x4. Motion by Jerry Gumphrey to authorize the sale of three 1997 pick-ups and to purchase three Ford F150 4x4's and one Jeep Compass 4x4. Jerry Takle seconded the motion. Motion carried 2-0. 6.3 Review & Consider 2007 Electric Revenue Bonds The 2007 budget makes provisions to construct a Waco Substation and underground feeder to support the United Health Group data center facility, along with other customers, with bonds. The materials for the substation and underground feeders are already on order. Also, if we proceed with buying into the transmission system with MMTG/CMMPA group, we will need to free up another $300,000 to be spent over three to five years to complete the necessary agreements. Staff is proposing the following bond amount. Waco Substation $1,200,000 UHG Underground Feeder $1,000,000 Feeder on County Road 1 $ 300,000 $2,500,000 + Issuance and Coverage costs The total bond amount would be $2,875,000 per Ehlers and Associates analysis. We are proposing a 12 year term with interest payments only for the first two years. This will allow UHG load to ramp up to the estimated levels so sufficient revenues are available to pay the bonds. Motion by Jerry Gumphrey to authorize $2,875,000 of electric revenue bonds. Jerry Takle seconded the motion. Motion carried 2-0. 6.4 Review Request for Street Light A petition was reviewed for request to install a street light on County Road 33 by the entrance of AME Ready Mix, Plaisted Companies, and Aggregate Industries. There are numerous poles with overhead lines available in this area to attach street lights. Motion by Jerry Gumphrey to approve the installation of one street light. Jerry Takle seconded the motion. Motion carried 2-0.