3.2. ERMUSR 06-09-2009 - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission May 12, 2009 David Berg reviewed the results of the visual inspection and the lab results on the paint. The tower appears to be structurally sound. The cap or roof of the tower needs to be checked to make sure the J-hooks that hold the top on are still secure. Providing the J-hooks are holding, the tower could remain for a few more years. David Berg will monitor the tower's condition and notify the Commission when necessary. Consensus was to table this issue until a situation arises with the tower. 4.3 Review and Consider Wholesale Power Supply Options On April 15, 2009, John Dietz and ERMU staffmet with representatives form Central Minnesota Municipal Power Agency (CMMPA) to review power supply opportunities through the Big Stone II project and services available through their agency. Due to the concerns expressed at last months ERMU Commission meeting, CMMPA has provided an option to join as anon-voting associate member for the term of one year. This one year contract would cost $2,500 per month totaling $30,000 for the year. This associate member status would allow ERMU to "piggy back" on a base load planning study being conducted by R.W. Beck. If ERMU were to hire R.W. Beck independently to conduct the same study it would cost over $50,000. Staff recommends entering into this one year associate member contract with CMMPA which includes the R.W. Beck study and presentation. Vance Zehringer commented that the Big Stone II project was a good opportunity. John Dietz asked Attorney, Peter Beck if he noticed any red flags in the contract, he responded only the risk. Daryl Thompson moved to join CMMPA as an associate member. Jerry Gumphrey seconded the motion. Motion carried 3-0. The Utilities Commission would like to set up a tentative joint meeting with City Council for June 8th with CMMPA and R.W. Beck. Troy Adams will contact the parties and let Lori Johnson know if June 8~` will work. 4.4 Review and Consider City Attorney Contract Rates At the April 14, 2009, ERMU Commission meeting, the Commission directed ERMU use City Attorney Peter Beck for all future legal issues. The quotation for the contract rate options was discussed. The legal expenses of the previous three years were reviewed. John Dietz commented based on the history it would be better to go to the hourly rate versus a monthly retainer. Attorney, Peter Beck said he would be willing to take a lower retainer amount and revisit the issue at the end of the year.