The organizational meeting of January 4, 2000 at 5:00 P.M. was called to order by the City Attorney, Karl Lindquist.

Present: Ogden, Tweten, Quirk, Beauchamp

Absent :  None

The following nomination was made for the President of the Water, Light, Power and Building Commission: Marilynn Ogden.

It was moved by Commissioner Tweten second by Commissioner Beauchamp that the nominations for President now be closed and that a unanimous ballot be cast for Marilynn Ogden.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

The following nomination was made for the Vice-President of the Water, Light, Power and Building Commission: Henry Tweten.

It was moved by Commissioner Beauchamp second by Commissioner Ogden that the nominations for Vice-President now be closed and that a unanimous ballot be cast for Henry Tweten.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

It was moved by Commissioner Beauchamp second by Commissioner Tweten to adjourn the organizational meeting.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

The regular meeting of the Water, Light, Power, and Building Commission was now called to order by the newly elected president.

It was moved by Commissioner Tweten second by Commissioner Beauchamp that the minutes of the previous meeting of December 16, 1999 be approved as read.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

The following bills and payroll were recommended for approval:

MPCA                               Void                                   $ -185.00

Orchard Oil Co                     Void                                    -84.44

Orchard Oil Co                     Oil                                     35.12

WAPA                               X-mission serv fee                      1,700.00

Sam Storkson                       Overpay final bill                      22.52

Randy Stengl                       Overpay final bill                      9.91

Anita Speldrich                    Overpay final bill                      125.69

Greentree                          Overpay final bill                      139.37

John Haynes                        Overpay final bill                      20.63

Acme Electric                      Tool                                    17.07

Air Touch Cellular                 Service                                 131.80

AMRA                               Dues-2000                               225.00

Border States Electric             Inventory; supplies                     1,795.70

Sterling Bottomley                 Expenses                                286.12

Bowen Pest Control                 Maintenance                             600.00

Brady, Martz & Assoc               Services                                4,100.00

Breidenbach Welding                Services                                2,275.66

Bumper to Bumper                   Supplies                                10.20

City of EGF                        X-fer; rent; reimbursement              51,164.01

Clay County Health                 Water tests                             60.00

Coalition-MN City                  Dues                                    2,804.00

Cole Papers Inc                    Computer paper                          354.65

Commercial Printing                Supplies                                233.24

Commercial Water Hauling           Dec 16-31 meter reads                   1,749.53

Dakota Electric Supply             Inventory; supplies                     20,982.86

Don’s Stereo Service                Repairs                                 30.00

Environmental Quality Board        Power plant siting program              152.44

Fargo Electric Const               Services                                58,006.10

George’s Quick Printing             Supplies                                101.18

Hawkins Water Treatment            Parts                                   29.46

High Voltage Testing               Tools                                   230.78

IBM Corp                           Maintenance contract                    290.00

KCNN                               Advertising                             135.00

MMUA                               MAPP fee                                602.86

MPCA                               Seminar registration                    185.00

North-Holt Electric                Services                                2,420.25

NSP                                Gas utilities                           3,293.62

Northern Water Works               Parts                                   49.25

PS Door Services                   Parts                                   34.44

RDO Equipment Co                   Parts                                   22.20

RRV Co-op Power Assn               Energy charge                           150.67

Riedman Insurance                  Contract bonds                          20.00

Rydells                            Maintenance                             231.75

TSC Stores                         Supplies                                119.99

Thrall Distribution                Supplies                                67.40

Thunderbird Motel                  Lodging                                 286.89

Tri-Valley                         Reimbursement                           95.03

US West                            Phones                                  154.80

US West Interprise                 Network line                            80.40

United Wisconsin Group             Premiums                                239.75

Water & Light                      Service                                 6,689.23

Payroll                            Total cost                              53,204.32

                                                                           $215,496.45

It was moved by Commissioner Quirk second by Commissioner Tweten that the bills and payroll be allowed as recommended and the Secretary issue checks for the same.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

It was moved by Commissioner Tweten second by Commissioner Beauchamp to direct Department staff to discuss with American Crystal Sugar Company increasing the proposed NE substation site by adding a 400 foot by 70 foot strip because access is available only to 5^th Ave NE.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

It was moved by Commissioner Tweten second by Commissioner Beauchamp to approve the appointment of Paul Erickson to the position of Network Manager/Information System.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

It was moved by Commissioner Tweten second by Commissioner Ogden to authorize Dan Boyce to approve travel within the budget for department staff and bring proposed information to the meeting. Out of town travel for the general manager will be reviewed by the Commission in advance of proposed trips.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

Commissioner Tweten, supported by Commissioner Beauchamp, introduced the following resolution and moved its adoption:

WHEREAS, there exists a standby power contract between the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota and American Crystal Sugar Company; and,

WHEREAS, the East Grand Forks Water and Light Department now has a new contract with Minnesota Municipal Power Agency to provide standby power,

BE IT HEREBY RESOLVED by the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota, that the following shall consist of the standby power rate:

Standby Power Rate:

This offering is subject to the general terms and conditions of the existing Standby Power Contract between the Commission and the Company as originally entered into on September 20, 1988. It is also subject to the terms and conditions of the existing contract between the Western Area Power Administration and the Commission and the current contract between the Minnesota Municipal Power Agency and the Commission.

Standby Power Supply:        Standby power for partial or complete failure of generation of American Crystal Sugar during the 12 month period of January through December.

Scheduled Outage Supply:     Energy for scheduled maintenance outages during January through May and October through December is only available at the option of MMPA. This would require advance request from the Company through the Commission to determine availability for a period of time acceptable to MMPA and the Commission.

Reserved Standby Demand Quantity:

7500 kW (adjusted for losses as specified in the contract) for January through May and September through December

3,500 kW (adjusted for losses as specified in the contract) for June, July, and August

Actual Standby Demand Quantity:

The actual output of American Crystal Sugar generation for the clock hour preceding the failure of American Crystal Sugar generation.

This quantity shall be adjusted for distribution and transmission losses as specified in the contract.

Metering of the actual generator output will be furnished and installed by the Commission with costs borne by the Company as covered in the contract.

Delivery Point(s):           At Commission’s interconnection points with the Company electrical switchgear as defined and updated in the attached drawing.

Standby Capacity Reservation Demand Charge:

This charge shall be based on the rate currently in effect from the Commission’s wholesale supplier who is furnishing the standby power to the Commission.

For the balance of 1999, NSP’s Service Schedule D applies.

For the period January 1, 2000 through April 30, 2005, the following Service Schedule applies.

           Year              June-September            October-May

           2000             $ 3.00 per kW - month         None

           2001             $ 3.00 per kW - month         None

           2002             $ 3.00 per kW - month         None

           2003             $ 3.00 per kW - month         None

           2004             $ 3.00 per kW - month         None

           2005              Not applicable             None

This charge will be billed monthly as a fixed charge. The amount will be determined by multiplying the Reserved Standby Demand Quantity for that month (as adjusted for losses) by the above rate per kW-month reserved.

   For example, 3,500 kW reserved for June 2000 at $3.00 per kW month is:

(3,500 kW reserved) X ( 1.02) X (1.062) X $ 3.00 per kW-mo. = $ 11,374.02

Where1.02 is the multiplier for distribution losses

and where  1.062 is the multiplier for transmission losses

and where  $3.00 per kW-month is the Standby Capacity Reservation Demand Charge

Actual Demand Charge: This demand charge will apply only when Standby Power is furnished and will apply to the standby demand used during that monthly billing period. The Firm Demand Charge for that month from the Commission’s Standby Supplier will be multiplied by the Actual Standby Demand Quantity furnished as adjusted for losses. This will be reduced by the amount paid for that same month for Standby Capacity Reservation Demand Charge.

Standby Energy Charge: If American Crystal Sugar’s generation experiences a forced outage, energy will be provided at the market rates in effect during the outage. However, in no event will the energy charge be less than the Commission’s firm supplemental energy rate. In all cases the city franchise fee will apply to energy supplied. 

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

The President declared the resolution passed.

It was moved by Commissioner Quirk second by Commissioner Tweten that the meeting be adjourned to January 20, 2000 at 5:00 P.M.

Voting Aye: Ogden, Tweten, Quirk, Beauchamp

Voting Nay: None

                                                     Lori Maloney

                                                     Deputy Sec’y